BUSINESS IN
BRIEF 16/7
Binh Phuoc attracts 31.8 million USD in foreign investment
The
southern province of Binh Phuoc has attracted eight foreign direct investment
(FDI) projects, with a combined registered capital of 31.8 million USD in the
first six months this year.
The
figure is below the province’s expectation, requiring local policy makers to
revise a specific strategy to increase FDI attraction.
As
an effort to improve business and investment climate, monthly dialogues have
been conducted to help enterprises and investors operating in the Binh Phuoc,
Director of the provincial Department of Planning and Investment Vo Sa said,
adding that numerous measures have been taken to attract investors,
particularly the construction of infrastructure facilities in industrial
parks and clusters.
The
construction of infrastructure facilities is underway to lure investors in
big industrial parks, such as the 2,000ha Becamex – Binh Phuoc urban and
industrial zone, while Dong Xoai 3 IP, Minh Hung – Sikico IP, Hoa Lu border
gate economic zone are ready for investors to land in.
However,
geographic location, poor transport system and limited human resources are
the province’s disadvantages in attracting investment, according to experts.
Tran
Dinh Thien, deputy head of the Vietnam Economic Institute, suggested Binh
Phuoc take advantages of its vast land and favourable climate condition to
develop high-valued industrial plant material areas, such as cashew nuts,
pepper, rubber, fruit trees, particularly clean vegetables to supply for Ho
Chi Minh City.
The
provincial People’s Committee has approved a plan to develop smart and
hi-tech agriculture to lure investors. Under the plan, the province has zoned
off 1,000 ha for hi-tech agriculture in Loc Ninh, Hon Quan districts and Dong
Xoai town.
Secretary
of the provincial Party Committee Nguyen Van Loi urged sectors to call for
investment in the smart agriculture production chain, particularly the
regional connectivity to ensure a sustainable source of clean materials, such
as cashew nuts and peppercorns.
Dozens
of cooperatives have been established and joined the chain. The clean pepper
growing model has proven effective and been multiplied across the province.
According
to Director of the provincial Department of Agriculture and Rural Development
Tran Van Loc, the province has over 134,000 hectares of cashew trees,
accounting for nearly 50 percent of the nation’s coverage, producing 280,000
tonnes per year.
Over
70,000 tonnes of cashew nuts are shipped abroad each year, generating 504
million USD or one third of the province’s export values.
The
locality also has over 270 plants and over 1,600 small facilities processing
cashew nuts, creating jobs for 50,000 labourers.
Currently,
the province is home to 163 FDI projects, worth nearly 1.5 billion USD.
Ha Nam attracts 194 million USD of investment
The
Red River Delta province of Ha Nam has so far this year attracted 46
projects, including 10 foreign direct investment (FDI) projects, with total
registered capital of nearly 194 million USD.
According
to Director of the provincial Department of Planning and Investment Nguyen
Van Oang, during the reviewed period, 44 operational projects were licensed
to add 118 million USD.
In
order to attract more investments, Ha Nam will continue designing more
support policies for investors, while diversifying investment promotion methods.
At
the same time, the province will also improve the quality of investment by
prioritising projects in the supporting industry, processing and
manufacturing sectors with high and environmentally-friendly technologies.
Meanwhile,
the province will also increase inspections of the enforcement of law in
investment to remove arising difficulties for investors, Oang said.
Ha
Nam will also complete infrastructure in industrial parks, and provide
support services for the industrial parks such as power, water supply and
telecommunications services, while assisting investors with human resources
and legal consultation, he added.
VPBank increases its charter capital to 14 trillion VND
VPBank
has successfully increased its charter capital to around 14 trillion VND
(around 616.7 million USD).
The
capital hike was implemented through the dividend payout in shares and share
bonus.
After
the rise, the governor of the State Bank of Vietnam issued Decision
1426/QD-NHNN on July 7, revising VPBank’s business licence with a change to
its charter capital from 10.77 trillion VND to 14 trillion VND.
VPBank
will make another charter capital hike this year, of roughly 2 trillion VND
to raise its capital to 16 trillion VND through a 15 percent private
placement to local and international investors. The share price will be
determined by mutual consent through negotiations between the bank and its
investors, but it will be higher than the book value.
The
bank said it is raising more capital to meet its operational demand, and to
comply with the safety ratio regulated by the central bank.
This
year, VPBank has been the second bank in the country to finalise a capital
hike plan, after OCB.
On
June 20, OCB completed its charter capital hike procedures and raised its
capital from 4 trillion VND to 5 trillion VND through dividend payout in
shares and private placement.
Vietnam seeks cooperation with Russia’s Sverdlovsk province
A
delegation of Vietnam’s Embassy, Consulate General in Yekaterinburg city and
Business Association in Russia visited Sverdlovsk province from July 12-15 to
seek cooperation opportunities with Russian localities.
Ambassador
Nguyen Thanh Son, who led the delegation, met with Governor Evgeny Kuyvashev
and Minister of International and Foreign Economic Relations Andrey
Sobolev.
The
ambassador told hosts that President Tran Dai Quang’s visit to Russia from
June 28-July 1 has opened up conditions for inter-regional cooperation
between Vietnam and Russia.
Vietnamese
businesses have been running a number of major projects in Russia with the
most noteworthy being a dairy project invested by TH True Milk.
According
to Son, Sverdlovsk has potential for cooperation, and Vietnamese businesses
should put forth a specific cooperation and investment strategy in Russia to
fully tap the potential.
Minister
of International and Foreign Economic Relations Andrey Sobolev promised that
as an industrial, logistics and cultural centre of Russia, Sverdlovsk will
actively participate in activities marking the 25th anniversarty of the signing
of the Treaty on Principles of Friendly Relations between Vietnam and Russia
in 2019.
Apart
from traditional sectors like metallurgy and machine manufacturing, the
province is turning eyes towards pharmaceutical products, transportation
machine and equipment manufacturing, and bio-technology, he said, noting his
hope that Vietnam will be interested in such technologies and products.
He
expresses his firm belief that Sverdlovsk firms will be interested in seeking
investment chances in Vietnam and attracting investments from the Southeast
Asian nation.
The
two sides discussed in detail a range of cooperation activities, from the
meeting of the inter-governmental committee scheduled for next September in
Hanoi to exhibitions displaying Vietnamese products in Moscow expected to be
held at the end of this year.
Governor
E.Kuyvashev had instructions to set up a delegation to visit Vietnam this
year.
On
this occasion, the Vietnamese delegation visited pavilions of the Innoprom
International Industrial Exhibition and several industrial facilities of
Yekaterinburg city of Sverdlovsk province. They also met with representatives
of the Vietnamese community and businesses in Sverdlovsk.
Italy-Vietnam launch footwear tech centre
The
Italian Trade Agency, the National Association of Manufacturers of Footwear,
Leather Goods and Tanning Technologies, and the Vietnam Leather, Footwear and
Handbag Association (LEFASO) have inaugurated the Italy-Vietnam Footwear
Technology Centre at the Lefaso Centre in the southern province of Binh
Duong’s Di An district.
With
its experience in the leather industry, Italy will assist Vietnamese
companies in improving product quality through collaboration and the launch
of the centre, which will enable technology transfer, consultancy and
training of human resource.
The
centre is equipped with modern machinery and equipment imported directly from
Italy and other European countries, allowing small and medium-sized
enterprises in the leather-footwear industry to approach, research and develop
new products.
The
centre also joins hands with the Ho Chi Minh City Industry and Trade College
to organise training programmes for staff in charge of production, design and
product development at footwear enterprises, apprising them about leading
global design and manufacturing trends.
LEFASO
vice chairman Diep Thanh Kiet said “The Vietnamese footwear industry has a
wonderful chance to strengthen its trade relations with Italy in particular
and the European Union in general.
“Italy
is the fashion centre of the world, and so expansion of trade between Vietnam
and Italy in the field of footwear is very necessary. Bilateral trade has
developed quite well in recent years. In 2016 Vietnam exported more than 380
million USD worth of leather-footwear products to Italy, or 8 percent of its
total exports to the EU market.”
The
idea of establishing the centre took shape two years ago during a meeting of
the Italy-Vietnam Intergovernmental Committee in Hanoi.
Replace workers with machines: experts
The
Korea Institute of Industrial Technology (KITECH) and the Viet Nam Textile
and Apparel Association (VITAS) on Thurday held a conference to promote smart
manufacturing for Viet Nam’s textile industry.
Truong
Van Cam, VITAS’ vice chairman, said that it was critical for Vietnamese
textile firms to renovate their manufacturing systems toward smart production
amid the industrial revolution 4.0.
The
industrial revolution 4.0 will bring significant changes and moving towards
smart manufacturing is necessary for labour-intensive industries like
textiles in which labour can easily be replaced by machines, Cam said.
Cam
said opportunities would be there for those who took action to move towards
smart manufacturing.
Smart
manufacturing would bring a number of benefits such as increasing
productivity, output, reducing costs, enhancing management efficiency and
improving the working environment.
At
the conference, Vietnamese firms learned about smart manufacturing trends
from leading Korean experts in dying, smart fabric management and 3D design,
to improve competitiveness of Vietnamese firms.
According
to Vu Duc Giang, VITAS’ chairman, South Korea was the fourth largest garment
and textile importer of Viet Nam with import revenue jumping from US$979
million in 2011 to $2.28 billion in 2016.
Rice recovery no cause for cheer
Recent
gains in the volume and value of rice exports can be attributed more to low
prices than to better quality or greater market penetration, experts say.
According
to the Ministry of Agriculture and Rural Development (MARD), in the first six
months of 2017, rice export turnover reached 2.8 million tonnes, up 6.3 per
cent in quantity and 4.9 per cent in value over the same period last year.
While
this marked a recovery after a somewhat quiet period, Tran Ngoc Trung,
director of the Vinh Phat Investment Corporation, said the real reason behind
the increase was lower prices offered by Vietnamese exporters compared to
other countries’ in the region. He explained that Vietnamese businesses did
not have enough information regarding the international rice market to
increase their own prices in time.
Looking
at statistics for the past two months, at the beginning of May, the price for
Vietnamese 5 per cent broken white rice was about US$350 to $354 per tonne,
whereas the same type of rice from a Thai exporter was priced at $390 per
tonne, $388 per tonne for Indian rice and a whopping $412 per tonne for
Pakistani rice.
It
is understandable why international buyers would opt for Vietnamese rice,
pushing the turnover way up in June, Trung said.
This
trend is further confirmed by data from the Viet Nam Food Association (VFA),
in which price hikes occurred mostly in the first three months of 2017, while
the average price for exported rice since April 2017 has been recorded as
lower than the previous year, despite the average of six months being $13.2
per tonne higher than the same period in 2016.
Of
particular note is that rice export prices dropped $20 per tonne and $11.38
per tonne in April and May 2017 respectively over the same months year.
Vietnamese
rice exporters agree that for the first five months, the rice export market
was quiet as businesses had to wait for the Government to finish signing
contracts with traditional markets like Malaysia, Bangladesh and the
Philippines.
When
the contracts were finalised in June, market prices had already surpassed the
prices quoted in the signed contracts.
It
is estimated that the price for 5 per cent broken white rice on the open
market is about $405 to $410 per tonne, while the price agreed to in the
contracts is just $370 per tonne.
The
VFA further said that although at the moment, the majority of Vietnamese rice
for export have around the same prices as the same varieties from India,
Myanmar or Pakistan, which is only $10 to $15 per tonne lower than Thailand’s
prices, the chief concern for Vietnamese producers was that they failed to
adjust prices as demand rose, which will ultimately result in a loss.
Thailand
has sold most of its stored rice, while Bangladesh is having a rice shortage
after crop losses due to natural causes and the Philippines is looking to
import more rice.
Lam
Anh Tuan, director of the Thinh Phat Foodstuffs Company Limited in Ben Tre
Province, said he saw the open market to be a better profit-making
opportunity than the Government’s collective contracts. He also said that
another concern for Vietnamese rice producers is that production costs may
exceed export prices. For example, the price of whole grain rice has
increased by $44.5 per tonne to $370 per tonne, so for producers to turn it
into white rice, the current export prices of $370 to $400 per tonne could
result in their making a loss.
Nguyen
Van Don, director of Tien Hung Company Limited in Tien Giang Province, said
he also favoured the free market, saying it will be an opportunity for
Vietnamese producers to increase exports of high quality rice.
The
VFA gave cautious agreement, saying if individual businesses focused too much
on meeting the demand in the free markets, they would fail to produce the
agreed amounts for collective contracts. This means that the Vietnam Northern
Food Corporation and its southern counterpart will have to compensate, as
happened once in 2009. Nonetheless, increasing added value on the free rice
market will be a good thing for small and medium-sized enterprises, it said.
Vietnamese
businesses should always be aware of regional competition, whether it is
through lower prices or better quality. It is crucial that they follow market
trends to make timely adjustments and be well prepared for any change in
demand and supply, said Tuan.
IDM Edu Viet Nam offers Irish digital marketing courses
IDM
Edu Viet Nam has launched a professional digital marketing training programme
authorized by Ireland’s Digital Marketing Institute.
IDM
Edu Viet Nam will provide training programmes ranging from basic to advanced,
which will enable students to build a strong and flexible digital marketing
platform.
Vu
Van Hien, IDM Edu Viet Nam's learning director, said the curriculum would be
updated every two years to match the evolving needs of the industry.
After
the course, students can apply for an international certificate exam --
through the Pearson VUE International Test Centres -- which is recognised in
more than 80 countries around the world, including the US, UK, France,
Germany, Australia, and Canada.
Enrollment
for course on certified digital marketing professional is under way.
Other
courses like certified digital marketing specialist in social media and in
search marketing and for professionals in certified digital and social
selling will be offered in future.
Demand
for human resources in digital marketing is increasing in Viet Nam, but there
is a lack of qualified personnel, Hien added.
WB forecasts Việt Nam's GDP growth of 6.3%
The
World Bank (WB) on Thursday released its bi-annual report on Việt Nam’s
economy, keeping its country GDP forecast at 6.3 per cent this year following
an economic boost in the second quarter.
After
a disappointing performance in the first quarter, Việt Nam’s economy kicked
on in the ensuing three months, with an estimated GDP of 5.7 per cent in the
first half of 2017.
“Việt
Nam’s economy is strong, as a result of strong momentum of Việt Nam’s
fundamental growth drivers – domestic demand and export-oriented
manufacturing,” said Sebastian Eckardt, lead economist and acting country
director for the WB in Việt Nam, at a press conference in Hà Nội on Thursday.
“These
are good conditions to address critical structural bottlenecks to medium term
growth while solidifying macroeconomic stability and rebuilding policy
buffers.”
Manufacturing
and retail trade were the two biggest contributors to GDP growth in the first
half of 2017 at 1.8 and 0.6 percentage points respectively, according to the
report.
Việt
Nam also demonstrated exceptional export performance, ranking higher than neighbours
in the export index with far greater scores than other countries like China,
Singapore, the Philippines, Malaysia and Indonesia, said the report. Those
countries’ exports merchandise growth in 2015 and 2016 were negative while
Việt Nam’s reached 7.9 and 9 per cent, respectively.
The
WB projection for Việt Nam’s GDP growth is significantly lower that the
country’s target of 6.7 per cent, while the International Monetary Fund last
week also lowered the GDP outlook for Việt Nam from 6.5 to 6.3 per cent.
The
WB also projected the inflation rate to hover around 4.5 per cent in 2017 and
2018.
Public
debt, calculated by the Ministry of Finance, this year will likely break the
red line of 65 per cent of the GDP drawn by the National Assembly, and
increase to 65.4 per cent in 2018, according to the WB.
The
WB suggested that the Vietnamese Government consider solidifying
macroeconomic stability and rebuilding policy buffers while trying to lower
the fiscal deficit and contain risks from rapid credit growth.
In
the long term, sustaining rapid growth and reducing poverty will be the
biggest challenges for Việt Nam, the WB said.
1Pay receives intermediary payment license
The
State Bank of Viet Nam (SBV) granted a license for 1Pay Joint Stock Company’s
intermediary payment services on July 12.
Accordingly,
the company will be allowed to expand its activities in electronic payments,
collection assistance, electronic money transfer and e-wallet services.
Speaking
at the ceremony, Hoang Tuyet Minh, deputy director of SBV’s payment
department, said that she expects that 1Pay will provide the best payment
solutions to customers, boosting the development of modern non-cash payment
solutions in Viet Nam, bringing the country’s e-commerce to an international
level.
1Pay
will also launch an online payment portal service which allows end users to
pay online by bank cards or bank accounts on e-commerce sites and focus on
developing and launching e-wallet applications soon, so that users with bank
accounts can carry out purchases or pay bills online on smartphones.
Launched
in January 2013, 1Pay is an intermediary payment platform provider in Viet
Nam, enabling local and international businesses to access and integrate
mobile payment services simply and automatically.
1Pay,
a fintech startup project of MOG Viet Nam JSC, is now one of the successful
open platforms for electronic payment in Việt Nam with more than 3,000
customers from eight different countries.
Ceramic maker Viglacera’s profits up 64 per cent
Ceramic
manufacturer Viglacera Corporation (VGC) has posted a pre-tax profit of
VND534 billion in the first half of 2017, up 64 per cent year on year.
Its
net revenue was VND3.87 trillion (US$170 million), up 2.7 per cent compared
to the corresponding period in 2016.
The
company put up 120 million shares for sale, equivalent to 39 per cent of the
total outstanding shares, on Ha Noi Stock Exchange on May 29, at a starting
rate of VND12,300 per share.
After
the auction, State ownership of VGC dropped from 78.8 per cent to 56.7 per
cent. Foreign investors showed interest in VGC’s shares, picking up 110
million, or 91.65 per cent, of the total offered shares.
The
auction helped VGC increase its chartered capital from VND3.9 trillion to
VND4.4 trillion.
The
company plans to issue five per cent of its shares under the Employee Stock
Ownership Plan (ESOP), in Q3 this year and reduce state ownership to 54 per
cent. After 2020, VGC intends to reduce state ownership to 36 per cent.
The
company collected nearly VND1.5 trillion from the public sale, which will be
used mainly to invest in the expansion of Yen Phong Industrial Park and to
develop the new ultra-white float glass manufacturing factory and
sanitaryware plant in the southern province of Ba Ria-Vung Tau.
VGC
currently operates two float glass factories, one in the northern province of
Bac Ninh and the other in the southern province of Binh Duong, with a
combined capacity of 1,000 tonnes per day, which accounts for 45 per cent of
the company’s capacity.
In
sanitaryware, VGC is focused on the mid-end segment, and has a total capacity
of 1.25 million sanitary appliances and 500,000 shower sets per year. This
segment has recorded an average annual growth of 19.6 per cent from 2010 to
2015, and current production is at maximum capacity.
The
company plans to build a sanitaryware factory in Vung Tau with a capacity of
750,000 products per year, which would increase its total capacity to 2
million products per year.
For
its granite and ceramic requirements, VGC has three subsidiaries that have a
combined capacity of 20 million sqm per year. Also, it has just acquired the
My Duc ceramic factory in the southern province of Vung Tau. The plant’s
first production line became operational this June.
In
the 2017-2020 period, the company plans to set up three more ceramic plants
and increase its total capacity to 34 million sq.m, up 70 per cent.
CMC announces strategy to expand globally
Vietnamese
technology corporation CMC on Wednesday announced its strategy to expand its
reach in international markets with the foundation of CMC Global.
CMC
Global was founded with an aim of promoting the export of software and IT
products, marking a milestone in CMC’s “Go Global” journey to make CMC’s
digital products the leader not only in Viet Nam but also reach out to the
global market.
Hoang
Ngoc Hung, deputy chairman of CMC, said: “CMC Global aims at providing
leading IT products and services. CMC Global will establish its member companies
in potential markets such as Japan, Singapore, and in the future, Europe.”
Seeing
the rising demand for IT outsourcing in the world coupled with the abundant
IT talent in Viet Nam, CMC Global will focus on developing a talent pool and
standardising software development process along with providing services.
“CMC
Global will bridge other CMC members to provide integrated solutions and
services to the global market,” Ho Thanh Tung, CMC’s deputy general director,
said, adding that the technology corporation expected revenue from
international markets would exceed the domestic market.
By
2020, CMC Global has targeted to have some 1,000 employees and establish
branches in a number of countries.
The
two first branches will be opened in Singapore and Japan this year.
Also
on Wednesday, CMC appointed Kumeda Masakuni, 40, with 28 years of working
experience in IT, as general director of CMC Japan.
THACO hands over 12 double-decker buses in Da Nang
The
Truong Hai Auto Corporation (THACO) has handed over 12 double-decker buses to
Da Nang as the central city bolsters its tourism offerings.
THACO
and the Empire Group held a handover and trial run of the buses for the “Coco
City Tour” in Da Nang on the afternoon of July 11. Coco City Tour is a unique
and impressive travel experience and appears for the first time in Da Nang.
Double-decker
buses are popular among tourists in London, Berlin, Barcelona, Hong Kong,
Shanghai, and Singapore for their convenience and affordability. Visitors can
easily reach famous tourists sites on their own and enjoy the scenery of the
city at the same time.
Mr.
Mike Norton, Director of Coco City Tour Limited Company, which is responsible
for operating city tour, a world leading expert with many years of experience
in city tourism, is responsible for operating the buses and has managed and
operated similar services in London, Dubai, Hong Kong, and Shanghai.
“Da
Nang is full of advantages to develop this model strongly and I believe the
Coco City Tour will bring a whole new tourism concept to the city,” he said.
“While a double-decker bus tour is already a traditional tourism approach in
places like London, in Da Nang we will develop Coco City Tour into a modern
and interesting product for visitors to the city, contributing to the
development of the tourism sector in the city in particular and in Vietnam in
general.”
“Coco
City Tour is one of our strategies to realize the target of attracting more
than 3 million visitors to Da Nang per year by 2020 and extend their holiday
‘One More Day’,” said Vice President of the Empire Group, Ms. Coco Tran.
In
addition to assisting Da Nang with easing its traffic congestion, Coco City
Tour will also create jobs. The Empire Group will continue to develop the
model in leading tourist destinations in Vietnam such as Nha Trang and Phu
Quoc Island.
FSMB to be charged of animal quarantine certification
The
Food Safety Management Board (FSMB) will replace the Department of Animal
Health to issue animal quarantine certification from July 15, as per an
urgent dispatch signed by Deputy Chairman of Ho Chi Minh City People’s
Committee Tran Vinh Tuyen lately.
As
of plan,it will still use the seal of the Department of Animal Health while
waiting for the new one.
According
to the regulation, owner of live animal products must have the certification
when they transport these products out of cities or provinces. The batch will
be considered to be illegal without certification and inspectors will destroy
it.
The
the management board was assigned some duties such as issuance of animal
quarantine certification for processing factories, transportation companies.
However,
because the Department of Animal Health and the board did not work together
well before, there has been a pause in the issuance of the certification
which badly affected transportation of pork and chicken products into cities
and provinces to supply to restaurants, retail stores, and cater companies in
industrial parks citiwide.
Capital inflows in industrial and economic zones surge in H1
New
capital inflows in industrial and economic zones nationwide in the first half
were higher than in the same period last year, said the Economic Zones
Management Department under the Ministry of Planning and Investment.
According
to a report of the department, as of June 20, industrial and economic zones
had attracted 473 foreign-invested projects with total pledged capital of
nearly US$7.3 billion, up by US$2.2 billion compared to the same period last
year.
Many
of the large projects came from South Korea. Kolon Industries, Inc., a
subsidiary of Kolon Group, was licensed to invest US$220 million in a factory
capable of annually manufacturing 36,000 tons of KVT-1 industrial fabric for
automobile tires in Bau Bang Industrial Park, Binh Duong Province.
Chairman
and CEO of Kolon Industries Park Dong Moon said the company has plans to
invest US$500 million in its facilities in Bau Bang Industrial Park. “We will
develop a factory to turn out 6,000 tons of industrial fabric for auto tires
a month. We are also considering manufacturing auto airbags there,” said
Park.
Samsung
Display Vietnam’s project to expand its plant in Yen Phong Industrial Park,
Bac Ninh Province with a total investment of US$2.5 billion was the largest
foreign-invested project to gain approval in Vietnam in the first half.
There
were 385 domestically invested projects newly approved and nearly 140 others
expanded in industrial and economic zones, with combined capital amounting to
VND114 trillion (over US$5 billion). In the same period last year, domestic
investments in industrial and economic zones totaled just VND14.5 trillion in
nearly 450 projects.
According
to the Economic Zones Management Department, a steel mill project of Hoa Phat
Group in Dung Quat Economic Zone was the largest domestic project with
registered capital of VND60 trillion.
By
June 2017, the country had had 325 industrial parks, with 220 of them put
into operation and the rest under construction.
CBU auto imports from Thailand, Indonesia up in Jan-Jun
Vietnam
imported over 29,600 completely-built-up (CBU) autos worth a total of
US$531.2 million from Thailand and Indonesia in the first half of this year,
according to data of the General Department of Vietnam Customs.
Vietnam
purchased more than 19,000 CBU cars from Thailand with a total value of
US$348 million. Indonesia came in second with around10,500 units worth a mere
US$184.2 million shipped to Vietnam.
Each
of South Korea and India exported more than 5,000 units to Vietnam with a
respective value of around US$93 million and US$23.7 million.
Auto
imports from Thailand and Indonesia made up a significant proportion of the
total, as tariffs from ASEAN countries have been cut, with tax on vehicles of
less than nine seats dropping to zero next year from the current 30%.
Overall,
Vietnam spent over US$1 billion importing around 51,000 CBU vehicles from
abroad, down 15% in value and up 2.9% in volume.
Customs
officers said imports of expensive cars had been in decline, resulting in a
lower import bill.
Vietnam’s
huge imports of CBU cars in the first half caused a trade deficit of US$2.5
billion with Thailand and US$340 million with Indonesia. The country also had
a trade deficit with Singapore (US$1.3 billion) and Malaysia (US$600
million).
Despite
the establishment in late 2015 of the ASEAN Economic Community (AEC), the
competitiveness of Vietnamese enterprises has yet to improve much.
Vietfood & Beverage – Propack 2017 expo to run in August
The
21st VietFood, Beverage and Professional Packing Machines (VietFood &
Beverage – ProPack) international exhibition will take place at the Saigon
Exhibition and Convention Center in Ho Chi Minh City from August 9 to 12.
Vietnamese
firms account for about half of the 500 participants this year, and their key
products include tea, coffee, dried fruit and beer. Some new faces, including
the trucking company Fuso Co. Ltd, Auphan Solfware and Long Hau industrial park,
will introduce logistics services.
The
organising board said some veteran foreign participants, including those from
Chinese Taiwan, Thailand, Poland and the Republic of Korea, wish to expand
their display space.
Poland
will treat visitors to clean farming solutions and fresh fruit and dairy
products. The Republic of Korea will occupy 70 stalls at the fair run by
enterprises producing agricultural products, financial and insurance
services.
The
board named several newcomers from abroad, including the Czech Republic, the
United Arab Emirates, Brazil and France.
Workshops
will be held on the sidelines of the exhibition, with discussions covering
food & beverage retail in Vietnam and management skills for businesses in
the sector, among other topics.
Nhan Co alumina plant officially operational this month
Nhan
Co alumina processing plant in the Central Highlands province of Dak Nong
will be officially put into production this month, according to project
investor Vietnam National Coal and Mineral Industries Group (Vinacomin).
An
inspection team of the Ministry of Industry and Trade has visited two alumina
projects, namely Nhan Co in Dak Nong Province and Tan Rai in Lam Dong
Province, says a Tuoi Tre newspaper report.
Vinacomin
said that during test production, the plant’s products have been exported to
China, South Korea and Japan and might be shipped to Malaysia and Middle
Eastern countries in the coming time.
According
to the investment plan, Tan Rai bauxite mining and alumina processing project
would incur losses in the first four years. Vinacomin however said that in
the first half of 2017, the project gained over VND60 billion (over US$2.64
million) in after-tax profit.
Meanwhile,
as of July 3, 2017, Nhan Co alumina plant had produced nearly 33,000 tons of
hydrate and nearly 164,000 tons of alumina.
General
director of Vinacomin Dang Thanh Hai said the group will continue upgrading
technology, complete an online environment monitoring system and strengthen
sludge reservoirs.
Binh Loi rail bridge behind schedule
Binh
Loi rail bridge over the Saigon River may be completed by May 2018, one year
behind schedule, said Phan Van Duy, deputy director of the Vietnam Inland
Waterways Administration.
Work
on the project to rebuild the bridge of the north-south railway began in
April 2015 and was planned to be complete in two years. With a total length
of 1.3 kilometers, including approach roads, the bridge will have a vertical
clearance of seven meters, up from the previous 1.5 meters, allowing larger
ships to cross beneath.
During
an inspection of the progress of the project by Minister of Transport Truong
Quang Nghia yesterday, Duy said only three concrete supports on the side of
Binh Thanh District and two others on the side of Thu Duc District have been
completed. The remaining supports should be completed within 10 months to
open the bridge to traffic in May next year.
The
biggest impediment to the project is that 28 households in Binh Thanh
District have not been relocated as they have not agreed on compensation
rates, making it impossible to build an access road to the bridge.
Minister
Nghia stressed the early completion of the bridge would help strengthen the
capacity of train services, facilitate waterway transport between HCMC and
neighboring Binh Phuoc, Binh Duong and Dong Nai provinces, as well as the
southern key economic zone, and reduce road traffic congestion.
More Vietnamese tourists prefer hi-end hotels
The
number of Vietnamese tourists choosing to stay at four and five-star hotels
and resorts during their holidays and business trips has been on the rise in
the last three years, according to a report of Grant Thornton Vietnam Co Ltd.
The
report on hotel services shows 20.4% of domestic tourists stayed at hi-end
hotels in 2016, up 3.4% versus 2014.
Higher
ratios were seen at hotels in central provinces from Thanh Hoa to Binh Thuan,
HCMC and southwestern provinces. Those in the northern region were lower.
Tao
Van Nghe, deputy general director of Liberty Group, told the Daily that more
Vietnamese tourists tend to stay at hi-end hotels.
John
Gardner, general director of Chains Caravelle Hotel Joint Venture Company
Ltd, said Vietnamese businessmen are among its patrons.
Tony
Chisholm, general manager of Pullman Saigon Centre and area general manager
for southern Vietnam at Accor, said the group is seeking to attract
Vietnamese customers. Accor targets to have 40-45 hotels and resorts by 2019
and haft of them are aiming at serving the Vietnamese.
Vietnam to amend four tax laws
The
Ministry of Finance is collecting opinions to amend four tax laws in a way
that adjusts preferential treatment for enterprises.
The
ministry will complete proposed revisions to the VAT, corporate income tax,
personal income tax and special consumption tax laws by October and submit
them to the National Assembly next year.
In
the past, the ministry and local tax offices proposed amending the personal
income tax and value added tax laws.
A
tax expert told the Daily that tax offices should have solutions to ensure
fairness in tax payment between large cities such as HCMC and Hanoi, and
other parts of the country.
Japan aid sought for Hanoi-Vientiane expressway
The
Embassy of Japan in Vietnam will look into the feasibility of the planned
Hanoi-Vientiane expressway before it could ask the Japanese Government to
weigh a loan for the project.
At
a meeting on Tuesday with the envoy of the Japanese Embassy in Vietnam,
Katsuro Nagai, Deputy Minister of Transport Le Dinh Tho said the project
connecting the Vietnamese and Lao capitals would help push up bilateral trade
between Vietnam and Laos.
The
four to six-lane road, approved by the two governments, will start in
Vientiane, pass through Pakxan of Laos, Vietnam’s Thanh Thuy border gate,
Nghe An and Ninh Binh Provinces, and end in Hanoi.
Deputy
Minister Tho proposed Japan lend to Vietnam through organizations such as the
Japan International Cooperation Agency (JICA) and the Asian Development Bank
(ADB). Nagai said Japan would learn more about traffic flow and payback
capacity.
Vietnam
and Laos are seeking funds from foreign sources to develop the project.
Vietnam's
Transportation Design Consultancy Corporation (TEDI) has done the
pre-feasibility study for the 760-kilometer expressway. After it is in place,
it might be extended to Thai capital Bangkok and Myanmar’s Naypyidaw.
Regarding
Vietnam-Laos cooperation in traffic infrastructure projects, the Ministry of
Transport and the Korea International Cooperation Agency (KOICA) signed an
agreement in October 2015 to do the feasibility study for a rail link between
Vung Ang of Ha Tinh Province and Laos’ Vientiane.
Vientiane-Hanoi
expressway and Vung Ang-Vientiane railway would become important transport
links with ASEAN countries and the Greater Mekong Sub-region.
Those
routes would improve the transport system in the region and promote trade
exchanges among ASEAN countries, particularly between Vietnam and Laos.
Tax debt rockets to VND75.5 trillion
Total
tax debt had amounted to around VND75.5 trillion by May 31, a 1.9% rise
against late last year, according to the General Department of Taxation under
the Finance Ministry.
Collectibles
account for VND48.2 trillion, and uncollectibles for the remainder.
The
department said tax officers had worked hard to collect VND22.07 trillion
since the end of May, accounting for 46.7% of the total debt as of late 2016.
Tax
agencies at all levels conducted inspections into more than 36,600 local
companies, and successfully forced them to pay around VND7.64 trillion in the
first half of this year. The amount sent to the State budget totaled VND3.43
trillion.
Total
value-added tax (VAT) refunds to the State Treasury were VND53.3 trillion in
the six-month period.
The
department is striving to collect at least 97% of the tax debt which had been
incurred since early last October or before. Notably, it pledges not to make
the debt exceed 5% of total tax revenue at the end of this year.
HCM City to host security, fire safety, rescue exhibition
The
International Fire Safety and Rescue Technology and Equipment Exhibition and
Conference, or Fire Safety and Rescue Vietnam – Secutech Vietnam 2017, will
be held in HCM City in August.
The
country’s largest exhibition in the field of security, fire protection,
safety and rescue will feature 460 booths set up by 270 exhibitors from 18
countries including the US, UK, India, Germany, South Korea, Japan,
Singapore, and China.
Speaking
at a press briefing in HCM City on July 13, Major General Đỗ Minh Dũng,
deputy director of Việt Nam Fire and Rescue Police Department, said the expo
would feature advanced technologies and products that could be used in
industrial parks, transportation, banks, buildings and others, including
surveillance systems, alarms, access-control systems, biometrics, and others.
Leading
local and international players like Aikang, Advantech, Bosch, BVND, CBID,
Dahua, Dmax, Dong A Fire tech, Draeger, EN3, Everdigm, Firex, Hải Thịnh,
Hanwha Techwin will take part.
The
event will offer local and international manufacturers of security and safety
products the opportunity to explore opportunities provided by the increasing
demand for security, including fire safety and modern rescue equipment.
The
Ministry of Public Security, Việt Nam Fire and Rescue Police Department and
other organisations will organise the 19th Asia Fire-protection Inspection
Council Conference, seminar on fire prevention and fighting and the Global
Digital Safety Forum on the sidelines of the expo.
Organised
by the Việt Nam Fire and Rescue Police Department, Việt Nam Advertisement and
Fair Exhibition Joint Stock Company and Messe Frankfurt New Era Business
Media Ltd, the exhibition at the Saigon Exhibition and Convention Centre from
August 16 to 18 is expected to receive 10,000 visitors.
VNA/VNS/VOV/SGT/SGGP/TT/TN/Dantri/VNEVET
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Chủ Nhật, 16 tháng 7, 2017
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