Investment- HCM City hosts seminar on attracting foreign investment
VOV
More than 200 foreign invested businesses gathered at a seminar on solutions to improve the investment environment in Ho Chi Minh City on April 26.
Over the past 20 years Ho Chi Minh City has led the country in foreign investment thanks to its policies to improve the investment environment. The city now has nearly 3,670 foreign direct investment (FDI) projects, mainly in trade, services, industrial processing and construction, with a total capital of nearly US$30 billion. It has restructured its economy significantly through FDI attraction and gained advanced technologies, learnt modern management methods and generated hundreds of jobs for local people.
Participants said that the city’s investment environment is currently quite good and a series of FDI projects have been implemented recently. They proposed some measures to further improve the environment including dealing with cumbersome administrative procedures, inadequate infrastructure, weak human resources and increasing social evils, which are barriers to foreign businesses that want to invest in the city.
Han Jae Jin, chairman of the Committee on Foreign Affairs of the Korean Chamber of Commerce and Industry, said Vietnam is the most attractive destination for investors from the Republic of Korea and more than 110,000 Koreans are currently working and studying in Vietnam. Vietnam should create a better business environment and pay more attention to improving human resources, logistical infrastructure and administrative procedures.
Vice Chairman of the Ho Chi Minh City People’s Committee, Nguyen Trung Tin, praised the foreign investors’ proposals and said the city will focus on key measures to attract more FDI projects such as improving the environment to attract capital for development, promoting investment in key fields, simplifying administrative procedures and calling on investment through build-operate-transfer (BOT), build-transfer (BT) and Public-Private Partnership (PPP) infrastructure projects.
Vietnam attracts foreign investments worth over US$4 billion
VOV
Around 263 foreign-invested projects with a total capitalization of around US$3.1 billion had been licensed by April 22, according to the Foreign Investment Agency.
Total registered capital including additionally invested-projects reached more than US$4 billion in the first four months. Total capital disbursement has estimated at US$3.62 billion, up nearly 1 percent against the same period last year.
Singapore topped Vietnam’s list of foreign investors, followed by Hong Kong, Malaysia, the Republic of Korea and Japan.
In April alone, despite the impact of earthquake and tsunami, Japan poured US$174 million into Vietnam, even higher than its total investment of US$131 million in the previous three months.
Business - Toyota Vietnam to cut output by 70pct to June 3 on parts shortage
Wall Street Journal
Toyota Motor Vietnam Co. will cut its production by 70 percent from Monday to June 3 due to a shortage of automobile components following the earthquake in Japan last month, the company said over the weekend.
The company, a unit of Toyota Motor Corp. (TM), has an annual production capacity of 20,000 vehicles, according to its website.
Toyota Vietnam is 70 percent-owned by Toyota Motor Corp., 20 percent by Vietnam Engine and Agricultural Machinery Corp. and 10 percent by KUO Singapore Pte. Ltd-By Vu Trong Khanh
Seafood producer targets to reach total profit of 250b dong
Vietstock
In the annual general meeting (AGM) held on April 25, 2011, Vinh Hoan Joint Stock Co (coded VHC) has approved for 2011 targeted year plan with total export turnover of $145 million, after tax profit of 250 billion dong and dividend payment of 25 percent in cash at minimum.
In addition, the company aimed to obtain revenue from seafood processing services of 3 trillion dong, and expand the total area for raising tra fish by 100 hectares.
The company's management board also seek approval among the shareholders for supplementing three new business lines in the seafood producer's business registration licence, including trading and exporting rice, trading fertilisers and pesticides, trading agricultural products, raw materials.
This year, the company spends about 90 billion dong for building a new rice-processing plant with designed capacity of 100,000 tonnes per year.
The company planned to complete designing works on Collagen production plant with expected costs of 200 billion dong and other projects within this year.
Last year, VHC reported gaining total after tax profit of 214 billion dong, and dividend payment of 30 percent in shares, using the 2009 unallocated profit.
By the end of Q1, the seafood producer announced to reach total export turnover of $32 million, increading by 9 percent against the same period last year. The parent company's revenue in Jan-March period was posted at 800 billion dong and after tax profit of 72 billion dong.
Packaging firm estimates to gain Q1 profit of 8b dong
Vietstock
Trinh Huu Minh, general director of My Chau Printing and Package Joint Stock Co (coded MCP) announced in the company's AGM held on April 20 that last year, the company reported gaining total revenue of over 80.5 billion dong, up 35 percent year-on-year, and profit of about 8 billion odng.
In the meeting, the company's shareholders also approved the 2011 targeted year plan with expected revenue of 320 billion dong, pre-tax profit of 27 billion dong, an increase of 10 percent agasins 2010. MCP planned to pay dividend at 18 percent at least.
In the first quarter of 2011, the company expected to reach total profit of 8 billion dong thanks to low-cost material sources.
Vinachem aims to obtain Q2 profit of 700b dong
Dau Tu Chung Khoan
By the end of the first three months of this year, Vietnam Chemicals Group (Vinachem) reported gaining total revenue of 9.091 trillion dong, increasing by 38 percent against the same period last year, and profit of 750 billion dong, equivalent to 26.7 percent of the year plan.
In Q1 of 2011, the company estimated to reach total construction value of 1.42 trillion dong, equalling to 20 percent of year plan.
In Q2, Vinachem aimed to reach total industrial production value of 4 trillion dong, revenue of 8 trillion dong and expected profit of 700 billion dong.
In the first six months of this year, the groups expected to reach total revenue of 17 trillion dong, up 29 percent, and profit of 1.45 trillion dong or 51.8 percent of year plan.
In April-June period, the company planned to spend 1.9 trillion dong in construction and investment projects.
Ha Do Group plans to raise chartered capital to 405b dong
Thoi Bao Kinh Te Vietnam
The shareholders of Ha Do Group Joint Stock Co (coded HDG) have recently approved the 2011 business targets submitted in the 2011 AGM with whole year revenue of 1 trillion dong, up 52.67 percent against the previous year, pre-tax profit of 353 billion dong, after tax profit of 265 billion dong.
This year, the group also planned to hike chartered capital to 405 billion dong and maintain the profit targets such as the ratio between after tax profit and chartered capital of 65 percent, and after tax profit over ownership capital of 31 percent.
In 2011, Ha Do Group expected to pay dividend in cash at 15-20 percent.
Saigon Cable aims to reach 480b dong in 2011
Vietstock
Saigon Cable Joint Stock Co (STC-listed CSG) has announced to submit the 2011 business plan with targeted revenue of 480 billion dong, pre-tax profit of 40 billion dong, of which profit from business operation activities of 26 billion dong and the rest 14 billion dong from deposit in banks and investment activities.
In addition, the company expected to pay 2011 dividend at 12 percent ratio.
Last year, the company reported gaining 536.8 billion dong of whole year revenue, surpassing by 34 percent against the year plan and profit of 41.3 billion dong, surpassing 3 percent.
However, CSG faced with difficulties in sources of foreign currencies and suffered sharp decline in profit due to difference in forex rates.
Up to December 31, the company has already invested 27 billion dong in ARECO apartment project and 33 billion dong in shares.
Vinamilk's Q1 after tax profit at over 1tr dong
SSC
Vietnam Dairy Products Joint Stock Co (Vinamilk-VNM) has recently announced the combined business results in the first quarter this year with net revenue at 4.535 trillion dong, increasing 1.285 trillion dong from the same period last year and its combined profit at over 1.509 trillion dong, increasing 369 billion dong from Q1 2010.
Notably, the company's financial costs increased from six billion dong to 99 billion dong, therefore, its profit from financial activities saw a fall of 51 billion dong year-on-year.
Thus, the holding company's after tax profit was over 1.006 trillion dong, rising 23 percent from the same period last year and equalling to 28 percent of the year's target.
Detergent firm's profit declines 16pct in Jan-March
Vietstock
LIX Detergent Joint Stock Co (coded LIX) has recently released the Q1 business results with after tax profit of 17.8 billion dong, dropping by 16 percent against the same period last year, equivalent to EPS of 1,985 dong.
The company posted Q1 net revenue of 343 billion dong, up 47 percent year-on-year. The financial activities also brought in revenue of nearly 10 billion dong.
However, due to high principal sales cost of 35.5 billion dong, increasing by 81 percent against Q1 of 2010, the company's after tax profit declined by 16 percent to 17.8 billion dong.
SAM sets target to reach 2011 profit of 232b dong
Vietstock
The management board of Sacom Investment and Development Joint Stock Co (coded SAM) has lately decided to reach whole year after tax profit of 232 billion dong in the resolution approved in the 2011 AGM.
In addition, the company also planned to offload 1.08 million fund shares for current employees at price of 14,000 dong per share. Sacom will support the workers for buying the fund shares by offering loans with lending term of three years, and interest rates of 10 percent per year. The employees can register for purchasing shares from April 11 to 21.
LAF's profit surges sharply by 200pct
Vietstock
The southern bourse-listed Long An Food Processing Export Joint Stock Co (coded LAF) released the Q1 financial reports with profit growth of 200 percent against the same period of 2010.
Accordingly, the company posted after tax profit of 37 billion dong, up 201 percent year-on-year, thanks to the surge of 28 percent in revenue against that of Q1 of 2010 to 161 billion dong.
The sharp increase in profit caused a raise of 82.7 percent in EPS to 2,788 dong.
Finance - Eximbank gets shareholder nod for rights share
VNS
Shareholders of the joint stock Eximbank Vietnam have approved the rights issue of almost 180 million new shares this year to increase its charter capital by 17 percent.
The issue will take place in the second half of the year and increase the capital to 12.355 trillion dong (US$588.5 million) from the current 10.56 trillion dong.
The bank, which has assets of 180 trillion dong, targets pre-tax profits of 3 trillion dong this year.
Gold regains sparkle
Vietnam Investment Review/SGGP
The price of gold in Vietnam made a U-turn to 37.67 million dong a tael (1.2 ounces) on April 25 as global price hiked to $1,514 an ounce in Asia this morning.
Sacombank Jewellery Company bought the metal at 37.56 million dong and sold at 37.66 million dong as of 8 am local time.
Saigon Jewellery Company, the biggest gold shop in Vietnam, purchased gold at 37.55 million dong and sold at 37.67 million dong at the same time.
Meanwhile, Hanoi-based Phu Quy Jewellery bought SJC-brand gold at 37.53 million dong and sold at 37.66 million dong as of 8:40 am local time.
Internationally, gold opened week at $1,514 an ounce as rising inflation urged investors to seek the metal as a hedge to protect their wealth.
Gold for immediate delivery was traded at $1,512.6 an ounce as of 8:45 am Vietnamese time.
Crude oil gained the fourth day in New York, the longest rising streak since December, as escalating violence in the Middle East and Africa threatens to prolong supply disruptions.
Crude oil futures for June settlement rose $0.78 a barrel to close at $113.07 a barrel on the New York Mercantile Exchange.
Brent crude oil futures for June delivery surged $0.46 to $124.45 a barrel.
Domestically, the interbank US exchange rate remained hovering at 20,708 dong, the lowest level since April 6. The highest price applied at commercial bank was 20,915 dong. However, most banks quoted the rate 85-135 dong per dollar lower than the ceiling price.
Vietcombank bought the greenback at 20,730 dong, and sold at 20,830 dog; Eximbank and Sacombank purchased dollars at 20,680-20,700 dong and sold at 20,780 dong.
Domestic gold price slips on devaluating dollar
Tuoi Tre
Though world gold prices Monday rose by $8 per ounce, or around 200,000 dong per tael, over last week, domestic gold price cannot keep up with due to US dollar's devaluation.
Domestic gold price was around 500,000 dong a tael lower than their international counterpart's.
World gold prices rose to $ 1,518 per ounce in the morning before inched down to $1,515 per ounce in the afternoon, while the price offered by Saigon Jewellery Co, Vietnam biggest gold trader, fell from 37.64 million dong per tael in the morning to 37.59 million dong per tael in the afternoon.
Current gold price was about 20,000 dong (US$1) higher than that by the end of last week due to the devaluating of the greenback on both the free market and banks.
On the free market, the price of the greenback was about 20,400-20,500 dong a dollar.
Earlier Monday, banks also posted dolar price at 20,780 dong per dollar, but the price then plummeted to 20,755 dong per dollar. The common purchase price of the greenback at banks were at 20,670-20,680 dong per dollar.
Experts predicted that for the next few days, the forex rate would continue to decrease due to significant supply of dollars from illegal gold export.
According to news analysts, gold world kept rising since the greenback has hit its three-year low. Experts forecast that the prices of gold and silver can inch down due to massive sale of investors for profits in the short term, but gold price will continue going upward in the long term.
SBV proposed to cut US dollar deposit rates for institutions down to zero pct
Vietbiz24
The State Bank of Vietnam-HCM City arm has proposed the Central Bank to cut the deposit rate of US dollar for economic institutions from 1 percent down to 0 percent per annum, aiming to increase supply of US dollar to the market, the local newswire VnExpress reported on April 25.
In the recent time, supply of US dollar to banks has surged by 25 percent sharply following the SBV's move in trimming US dollar saving rate for individuals at 3 percent per annum, the vice director Nguyen Hoang Minh at the bank arm said, in addition the price of US dollar in the free market was brought down to be equal to banks' level. Moreover, the situation of dual forex rates at banks ended up.
However, he noted, the volume of US dollar deposits of institutions at banks now remains very plentiful so it is essential to cut down the rate to 0 percent.
After an array of SBV's interventions, the forex market has shifted to become more positive. US dollar price of commercial banks has continued decreasing to low levels according to the allowable ceiling rates.
This morning (April 25), Asia Commercial Bank or ACB listed the US dollar selling price that was 40 dong lower against the previous day to 20,750 dong while purchasing US dollar at 20,680 dong. At Vietcombank, the gap between US dollar purchasing and selling prices now is expanding to 100 dong.
Meanwhile, the purchase price of US dollar in the free market was 10-20 dong lower than the listed forex rate of 20,670 dong per US dollar. And the selling price fluctuated around 20,770 dong per US dollar.
Presently, gold shops are doing public transactions of US dollar but the price keeps going down as individuals in demand of purchasing US dollar are able to buy a large volume of US dollar from banks.
Typically, Eximbank raised the line of selling US dollar to the individuals who are going abroad. Accordingly, the individuals demanding US dollar for overseas travelling, visiting, business in less than 7 days will be able to buy up to $2,000 from the bank and in more than 7 days, the allowable purchase is $4,000. Others demanding for overseas health treatment in less than 7 days are able to buy $3,000 and $4,000 respectively.
Vietnam interbank dollar falls to 3 week low following global suite
Stoxplus.com
Interbank dollar in Vietnam eased further by 5 dong after a halt yesterday to 20,703 dong, the lowest level since April 5 as global investors continued to dump dollars.
Accordingly, the ceiling price fell to 20,910 dong on 1 percent trading band basis.
Local banks continued to sell dollar 150-175 dong a dollar lower than the ceiling prices and broadly widen spread between bid and ask to 70-100 dong to minimise risks.
Local lenders reported higher dollar inflows in the past 2 weeks and they bought 15 million cash dollars a week mostly from the public compared with 1-2 million previously.
The SBV's branch in Ho Chi Minh city proposed to cut institutions' dollar deposit rate to 0 percent from current 1 percent.
Unofficial exchange rate gets lower than official rate
Saigon Times Daily
The unofficial dollar-dong exchange rate got lower than those quoted by some commercial banks given an improvement in dollar liquidity in the banking system resulting from the central bank's latest moves to stabilise the foreign exchange market.
The greenback was traded at 20,720 dong for buying and 20,750 dong for selling on the informal market on Sunday. Meanwhile, the dollar was bought by Vietcombank on Saturday at 20,730 dong, 10 dong higher than on the unofficial market. Some gold shops bought the dollar even much lower than Vietcombank's rate.
The dollar selling price at banks on Saturday was about 30-80 dong higher than the unofficial rate. For example, Eximbank sold the dollar at 20,780 dong, ACB at 20,790 dong, and Vietcombank at 20,830 dong. Those selling prices were lower than the highest permissible level of 20,915 dong.
Due to a small gap between the official and unofficial rates and the strict monitoring by the authorities of illegal money change trade, the unofficial forex market has been quiet, a currencies broker said.
Bankers said that recently individual and institutional customers started selling the US dollar to banks, thus helping improve dollar liquidity.
Nguyen Van Trinh, deputy director of the University of Economics and Law, said at a seminar in HCM City on Saturday that since the local gold price had got lower than the global price recently, companies had exported gold for dollar cash, while there was no US dollar demand to import gold. That has caused dollar demand to decrease and dollar supply to increase, he said.
The State Bank of Vietnam has issued a slew of new regulations intended to control the foreign exchange and gold markets in order to stabilise the dong. The measures include applying a ceiling dollar savings rate of 3 percent per year, limiting borrowers at banks, restricting illegal dollar trading operations, and working toward banning gold trade on the unofficial market.
VPBank to inject more capital this year
Saigon Times Daily
The Vietnam Prosperity Commercial Joint Stock Bank (VPBank) will increase its chartered capital from the current 4 trillion dong to 5.05 trillion dong this year, heard the general meeting of the bank last week.
The shareholders also approved the bank's business plan this year with the total assets to reaching 80 trillion dong. As of end-2010, VPBank's total assets had reached an estimated 58 trillion dong, total capital mobilisation 24.43 trillion dong, and outstanding loans 25.3 trillion dong.
The Hanoi-headquartered bank plans to expand to 200 outlets by the end of this year.
Vietcombank projects 2011 profit up 3pct y/y
Reuters
Vietcombank, Vietnam's second-largest partly private lender, said it has projected gross profit this year to edge up 3.1 percent from 2010 to 5.65 trillion dong ($271 million) while keeping its credit growth below 20 percent.
The Hanoi-based lender planned to lend 212.18 trillion dong, up 19.9 percent from nearly 177 trillion dong last year, and cut bad debt to less than 2.8 percent of loans, from 2.83 percent in 2010, it said in a report to shareholders this month.
The lender, also known as the Commercial Joint Stock Bank for Foreign Trade of Vietnam, planned to raise its total assets this year by 15 percent to 353.62 trillion dong. Its ranking in terms of assets follows VietinBank.
Shareholders approved the bank's business targets at an annual meeting on Friday, the online news website VNExpress (vnexress.net) said.
Shares in Vietcombank closed down 1.4 percent on Friday at 28,200 dong ($1.35) before the outcome of the shareholders' meeting was clear.
The government has cut Vietnam's annual credit growth target to below 20 percent this year to curb inflation, from an initial target of 23 percent, following a rise of 27.65 percent in 2010.
Dollar sales rampant despite ban
VNS
Enterprises providing services for foreigners and selling imported products are still quoting prices in US dollars although it is against the law.
Along the streets frequented by backpackers - Pham Ngu Lao, Bui Vien, and De Tham in District 1 service providers use the dollar as standard currency in trading.
Five companies on Pham Ngu Lao Street, including the Viet Nhat Trading and Tourist Joint Stock Company and dozens of stores on Bui Vien Street, quote their prices in dollars This is also true of several stores selling imported electronic products in HCM City.
Truong Thi Xuan Tien, marketing manager of Vien Tin International Joint Stock Company, defended the practice, saying: "Selling prices are in US dollars, then they are converted into dong for payment."
Hundreds of real estate companies also quote the prices of a house for lease or sale in on websites like nhathuesaigon.com, vatgia.com and muaban.net.
Nguyen Ngoc Le, a real estate trader, said prices of houses or offices for rent or sale in the city centre are quoted in dollar because his customers are mostly overseas Vietnamese (Viet Kieu) and foreigners.
"We sign contracts in US dollars but payments are made in Vietnam dollar," Le added.
An article in a government's Decree that lists fines for violating regulations on declaring, registering and quoting prices of goods and service took effect in 2008.
The article imposes fines of between 20 million dong and 30 million dong for quoting prices or selling goods and services in foreign currencies without permission.
It also says that "repeated violations and recidivism" will attract severe additional sanctions including suspension of business licenses for up to 12 months or more, depending on specific circumstances.
While the law is clear and strict, enforcement has been lax, allowing the practice of quoting dollar prices to flourish, the Sai Gon Giai Phong (Liberated Sai Gon) reports.
Banking experts urge to 'declare death' to small banks
VnMedia
There are too many small banks operating in Vietnam and it is necessary to dissolve 30 percent of the banks, experts say.
No one can judge that a country has too many or too few commercial banks, if just considering the number of banks in the country. The number of banks differs in different countries, because it depends on the development of the national economies.
The problem in Vietnam is that Vietnam has many commercial banks, but many of them are small banks with very modest capital. As there are many banks, the banks have to compete fiercely with each other to exist. Especially, they have been trying to open more and more branches in an effort to lure more clients. This explains why in HCM City, there are two branches of the same bank set up in the same ward
Dr Nguyen Thanh Tuyen, President of the HCM City Economics and Finance University, believes that Vietnam still should welcome new banks, including foreign banks, which arrive in Vietnam under the country's WTO commitments. However, it is necessary to "declare death" to small banks, about 30 percent, by allowing merge and acquisition (M&A) deals.
According to Dr Cao Cu Boi, a well known banking expert, former Lecturer of the Hanoi Economics University, there are nearly 100 operational commercial banks now in Vietnam. The banks have been joining the race of expanding their operation scale by setting up more and more branches.
Boi has pointed out that the competition in the number of branches would do more harm than good. Once banks have to set up more branches when their management capability is not good enough, they will have to try to mobilise capital immediately, which should be seen as a high risk.
Commercial banks have never before competed with each other so stiffly like now, which has resulted in the interest rate war, in which deposit interest rates have been pushed up day by day.
Currently, in order to ensure reasonable lending interest rates for businesses, the central bank has told commercial banks not to pay more than 14 percent per annum for dong deposit interest rates. However, small banks, in an effort to compete with big banks, have still been "dodging the laws", by offering the interest rates at 17-18 percent. The "interest rate race war" has led to the sky high interest rates, which cannot be affordable by businesses.
"In HCM City, I can see the wards and streets, where there are two branches of the same banks. Is it really necessary to set up so many bank branches?" he questioned.
In fact, the State Bank of Vietnam has realised the high risk of the existence of small banks. It believes that small scale will not allow banks to compete efficiently in the new circumstances. Therefore, the central bank decided that the chartered capital of a bank must not be lower than three trillion dong. Those banks, which still did not have the required three trillion dong in chartered capital must increase capital to the required level prior to December 31, 2010.
However, many banks had not been able to raise their capital prior to the previously set deadline. Therefore, the State Bank had to extend the deadline.
Khong Van Minh, director of Jaccar investment fund, also thinks that Vietnam has too many small banks, which should not be seen as a good thing. According to Minh, it is the small banks, which always trigger interest rate wars, and that if Vietnam does not have suitable solutions, the interest rates would not be stabilised.
While Vietnamese big and small banks compete with each other fiercely, foreign banks have grabbed the opportunity to cement their positions in the market. With high quality services and professional management, foreign banks have attracted a lot of clients and enterprises. Minh said thanks to the high quality services, the number of clients of foreign banks has been increasing steadily, even though the banks always set stricter requirements.
Economy - Vietnam's trade gap estimated at nearly $5b in Jan-Apr: GSO
Vietbiz24
In April, Vietnam's export turnover is estimated to reach $7.3 billion, falling 1.97 percent from previous month, of which, state economic area fetched $2.9 billion, accounting for nearly 40 percent of the country's total export turnover, General Statistical Office (GSO) reported.
Vietnam's key export items in April were crude oil, apparel products, seafood products, rice and coffee, of which, only apparel products earned export turnover of over $1 billion in April.
Totally in Jan-Apr, the country's export turnover reached over $26.94 billion, rising 35.7 percent against the same period last year.
The key export commodities in first four months included seafood products, coffee, rice, apparel products, crude oil, wood and wooden products.
Of which, the country's export turnover for apparel products earned nearly $3.93 billion, rising 33.1 percent year-on-year, crude oil at $2.46 billion, up 41.4 percent y-o-y and coffee at nearly $1.4 billion, up 111.9 percent y-o-y.
Vietnam's import spending in April was estimated at $8.7 billion, falling 1.76 percent month on month, of which, state economic area accounted for 55.2 percent of the country's total import value.
Vietnam's main imported products were oil and gas ($1.06 billion, up 13.4 percent month on month), cloth ($650 million, up 5.5 percent m-o-m) and iron and steel ($587 million, up 9.3 percent m-o-m).
Totally in Jan-Apr, the country's import spending was estimated at $31.83 billion, rising 29.1 percent year-on-year, of which, import for petroleum was at $3.58 billion, up 64.2 percent, cloth at $2.11 billion, rising 42.15 percent and import for iron and steel at $1.95 billion, up 17.2 percent y-o-y.
Thus, the country's trade deficit in April was estimated at $1.4 billion, equaling to the figure in March and it was $4.89 billion in Jan-April.
Vietnam April inflation at peak for this year and will fall-govt
Reuters
Vietnam's consumer price index growth this month reached the peak for this year and should slow in the remaining months of 2011, the government said on Monday.
April's CPI rise at an annual pace of 17.51 percent -- the highest since December 2008 -- has been anticipated, Nguyen Duc Thang, head of the government's General Statistical Office's Price Statistics Department, said in a statement.
The April figure was 3.32 percent higher than March's inflation.-by Binh Minh, Richard Borsuk
Large Vietnam deals inked
Phnom Penh Post
Vietnam prime minister Nguyen Tan Dung yesterday urged Vietnamese investors to look to Cambodia for increasing opportunities, as the two nations signed nine Memorandums of Understanding worth nearly $900 million.
Although Vietnamese investments in Cambodia currently total more than $2 billion - excluding yesterday's MoUs - Nguyen Tan Dung said: "It is still not enough to harness the huge potential that Cambodia has."
"So I would like to encourage more Vietnamese investors to consider ventures in Cambodia, and I urge Vietnamese investors already here to strengthen and expand their capital investments to build closer economic cooperation..." he said at the 2nd Cambodia-Vietnam Conference on Investment Promotion held at Phnom Penh's Peace Palace yesterday.
The largest MoU signed yesterday was for a hydroelectric plant on the Lower Sesan River, which has been pegged at $700 million by Royal Group, a partner in the joint venture, though a number of other deals were signed.
MoUs were also inked for a $32 million iron ore project by Hoang Anh-Ratanakiri, part of the Hoang Anh Gia Lai Group conglomerate, a $20 million cassava plantation by Cam-Viet Rural Development Ltd in Ratanakkiri province, and $75 million investment by Star Premier International for sugarcane farming in Kampong Speu province.
Agreements for investments in rubber plantations and a carbon credit project by Indochina Green JSC Company were also signed yesterday, though dollar figures were not announced at the conference.
Nguyen Tan Dung said the latest investments join significant Vietnamese projects ongoing in Cambodia, in areas such as telecommunications, banking and finance, mineral resources, and rubber plantations.
Prime Minister Hun Sen pointed to Cambodia's open business environment and investment laws as important in attracting outside investment with agriculture in particular offering opportunity.
"Cambodia has abundant potential in the agriculture sector, and with preferential law and economic incentives, it is a good opportunity for investors to grow rice, corn, cassava, bean, rubber and agro-industry, as well as in food-processing plants."
"Beside the agriculture sector, we have some others sectors with strong potential. Infrastructure, industry exports, oil and gas, mining and tourism are waiting for investment from foreign investors, including those from Vietnam," he said.
University of Cambodia professor of business and economics Chheng Kimlong said yesterday's agreements were a positive sign for bilateral trade between the countries, which has been increasing year to year.
"The deal shows the very strong trade relationship between Vietnam and Cambodia, which has been building up for a long time," he said, adding that Vietnam investors have been able to take market share in the agriculture and agri-business sectors.
Peter Brimble, Senior Country Economist for the Asian Development Bank, said that while he hadn't reviewed the MoUs, the Vietnamese government was serious about promoting investment in the Kingdom.
"There's no question that Vietnam is going to play a bigger role in Cambodia," he said.
Trade between Cambodia and Vietnam increased by nearly 50 percent in the first quarter of the year compared the same period last year, according Vietnam Trade Office figures released last week.
FDI falls almost 50pct in four months
VNS
The nation's foreign direct investment (FDI) plummeted during the first four months of the year with only $4 billion earmarked by investors from abroad, down 47.8 percent against the same period last year, according the Foreign Investment Agency.
Up to 262 new foreign-invested projects, capitalised at $3.2 billion, were licensed from January to April, an annual decrease of 54.9 percent.
FDI disbursement, an important factor to evaluate the efficiency of investment inflows, however, still increased nearly 1 percent, reaching $3.62 billion during the period.
In another bright spot, 88 existing projects registered an increase in their levels of capital by a total of $819 million during the four months, up 36.8 percent year-on-year.
Vietnam's leading sources of foreign investment include Singapore, Hong Kong, Malaysia, South Korea and Japan, with Japanese companies still registering 55 new projects in Vietnam despite the devastating impact of the earthquake and tsunami on March 11.
During the period, the processing and manufacturing sector remained the leader in attracting FDI, accounting for $2 billion of the first quarter total. In addition, 75 operating projects in the sector were allowed to raise capital by a total of $455.3 million.
With more than $1.1 billion coming to 58 new and seven expanded projects, HCM City continued to be the most attractive destination in the eyes of foreign investors. It was followed by Hanoi with 79 projects, worth a combined $430 million.
The foreign-invested sector saw an estimated four-month export turnover of $15.19 billion, up 37 percent year-on-year. The sector also posted an export surplus of $1.3 billion.
Earlier, the agency forecast new registered FDI would likely reach about $20 billion this year and over half of that sum would be implemented. Top priority would be given to projects in infrastructure construction, hi-tech and support industries.
Ministry to spend $3m on trade promotion
Tuoi Tre
The Ministry of Industry and Trade (MoIT) will set aside 55 billion dong (US$2.8) million to promote national trade this year.
Titled the National Promotion Programme 2011, the fund will be used to finance promotional activities proposed by 22 trade promotion organisations and 16 provinces.
These activities include exhibition fairs overseas to be held by producers of key export products such as textile and garment, furniture, and seafood.
MoIT however said this still modest budget wouldn't be able to meet all of businesses' needs and was asking for more funding from the government.
Vietnam's export for apparel products fetches nearly $3.6b in Jan-Apr
Thoi Bao Kinh Te Saigon
Vietnam's export turnover for apparel products in the first four months this year reached nearly $3.6 billion, rising 28 percent from the same period last year, Le Tien Truong, deputy general director of Vietnam National Textile and Garment Group (Vinatex) said.
In 2011, the country expects to gain nearly $13 billion of export turnover from apparel products, up 18 percent year-on-year.
Vietnam's major buyers are still the US, EU and Japan.
Last year, Vietnam's export of apparel products to the US market increased 22 percent to reach $6 billion, up 14 percent to reach $1.8 billion in EU market and up 20 percent year-on-year to reach $1.2 billion in Japanese market.
Vietnam's trade gap rises amid weak auxiliary industry
Saigon Giai Phong
Economists said Vietnam's trade deficit was getting bigger as the domestic auxiliary industry remained fledging, with local businesses depending strongly on imported materials.
"The Ministry of Industry and Trade has issued a list of products that the government restricted importing. However, it is just one of the technical measures. We cannot narrow down the trade gap immediately as the domestic production still depends on imported materials," said deputy minister Nguyen Thanh Bien of Industry and Trade.
Experts said beefing up export to reduce the trade deficit was among the country's top priorities. However, the export sector is growing at slow pace due to many inadequacies.
"Crude oil and textile are among Vietnam's key exported items. But local oil companies export crude oil only, which is directly exploited from nature and has low value," said an economists in HCM City.
"Textile exporters earn less from the annual export turnover as they have nothing but the minor advantage of low-cost human resource, while most materials are imported from abroad," he said.
Despite the export turnover significantly increasing 33.7 percent year-on-year to $19.25 billion in the first quarter of the year, some local exporters' sales declined due to high prices.
"The global consumption is switching to India and China, which have advantages of a huge population and stable economic growth rates. Therefore Vietnam's export turnover from big markets is expected to grow slower in the upcoming time," warned Dr Tran Dinh Thien, head of the Vietnam Institution of Economics.
"Local exporters should maintain the business relations with traditional markets including the US and EU, as well as focus on seeking and boosting export into new potential markets," Thien said.
Vietnam's trade deficit eased slightly in the first three months of 2011, official estimates showed last month, in a boost for the government as it battles to stabilise its economy, according to AFP.
The deficit is forecast at $3.03 billion in the January-March period, against $3.43 billion for the same quarter last year, the general Statistical Office (GSO) said.
Compared with the first quarter of 2010 exports rose 33.7 percent to $19.25 billion, while imports gained 23.8 percent to $22.3 billion, the GSO said.
Last year's trade deficit was estimated at $12.4 billion and the government has set a target that this year's figure should not exceed 18 percent of export revenues.
"Things are on track and I think that we will be able to meet this target," deputy minister of Industry and Trade Nguyen Thanh Bien told Dow Jones Newswires.
The data come after the State Bank of Vietnam in February devalued the dong 9.3 percent in a bid to narrow the trade gap, while it has also increased interest rates to tame inflation, which is estimated to a two-year high 13.9 percent this month.
The fall in the trade deficit is "very small" and the impact of the devaluation the largest in years is not expected to be felt until later months, said Deepak Mishra, lead economist at the World Bank in Hanoi.
However, statistics show luxury goods import amounted to 40 percent out of the first-quarter trade gap in spite of the government's instruction on restricting the trade deficit rate to below 16 percent this year.
The amount of the products, which are named among the government's restricted import list, increased 4.8 percent year-on-year, worth $1.4 billion.
Dr Vu Quoc Huy of the University of Economics in Hanoi said restricting luxury goods import will definitely narrow the trade gap.
Vietnam trade deficit eases in first quarter
AFP
Vietnam's trade deficit eased slightly in the first three months of 2011, official estimates showed Friday, in a boost for the government as it battles to stabilise its troubled economy. The deficit is forecast at $3.03 billion in the January-March period, against $3.43 billion for the same quarter last year, the general Statistical Office (GSO) said. Compared with the first quarter of 2010 exports rose 33.7 percent to $19.25 billion, while imports gained 23.8 percent to $22.3 billion, the GSO said.
Last year's trade deficit was estimated at $12.4 billion and the government has set a target that this year's figure should not exceed 18 percent of export revenues.
"Things are on track and I think that we will be able to meet this target," deputy minister of Industry and Trade Nguyen Thanh Bien told Dow Jones Newswires. The data come after Hanoi in February devalued its dong currency 9.3 percent in a bid to narrow the trade gap, while it has also increased interest rates to tame inflation, which is estimated to a two year high 13.9 percent this month.
Hanoi has described bringing prices under control as its number one priority.
However, the fall in the trade deficit is "very small" and the impact of the devaluation the largest in years is not expected to be felt until later months, said Deepak Mishra, lead economist at the World Bank in Hanoi.
The devaluation was the first strong action by the government after months of growing investor concern over rising inflation, a struggling currency, and a trade deficit that accompanied the country's high growth rate.
International capital markets have welcomed Vietnam's moves as "a good start" while the cost of borrowing has dropped in recent weeks, bringing it back in line with the emerging market average, Mishra said. But economists say much will depend on how the government implements its stabilisation package, and whether those efforts are sustained.
Annual growth reached 6.8 percent in 2010 and the Politburo is now downplaying the need to top that figure this year. Analysts say the government is looking to balance its traditional quest for growth with stabilisation.
April CPI reaches 20-year high
VNS
The consumer price index (CPI) in April soared 3.32 percent against last month, making it the highest month-on-month increase since 1991.
The general Statistical Office report, released yesterday, said the rise exceeded that of the April 2008 high of 2.2 percent, which was blamed on the global economic crisis.
The inflation rate in the first four months of 2011 soared 9.64 percent, higher than the yearly target of 7 percent.
The office director Nguyen Duc Thang attributed the April increase to the price hike of essential goods such as food, foodstuffs and petrol.
"Political uncertainties in North Africa and the Middle East, as well earthquakes and the nuclear crisis in Japan, have caused commodity prices to soar worldwide. Vietnam is not immune," he said.
He added that the biggest force behind the rise had been the petrol price hikes on February 24 and March 29, and the higher cost of power price since March.
Economists attributed that the uncertainties of foreign exchanges, although were slowing down, still bothered when it resulted to a high cost for domestic enterprises to import goods and materials.
All 11 commodities groups used to calculate the CPI saw an increase this month. Transport prices continued to rise in the second month, surging 6.04 percent due to a hike in petrol price. Meanwhile the cost of food soared 5.61 percent.
The cost of eating out and restaurant services rose 4.5 percent, while foodstuffs rose 2.47 percent.
Housing and construction materials (electricity, water, fuel and rent) saw the fourth biggest rise, climbing 4.38 percent. Textile-garments and home utensils and equipment saw the slighter increase, rising 1.63 and 1.38 percent, respectively.
Despite soaring inflation, the price of gold and the US dollar fell by 1.2 percent and 1.61 percent against the previous month. Neither were taken into account when calculating the CPI.
The CPI should not rise further after April if the State Bank was consistent to the tightened monetary policies, said Le Xuan Nghia, deputy chair of the National Financial Supervision Council.
Nghia said new policies on monetary supply would come into effect in May.
Hanoi's industries see optimistic growth
VOVNews
The capital city continued to maintain positive growth in its industrial sector in early 2011, according to the municipal Office of Statistics.
The city's revenues from industrial production in April rose 3.4 percent above the previous month and 14.6 percent over the same period last year, said the Office.
In the first four months of the year, the city's industrial value went up by 13.2 percent against the same period last year, said Cong Xuan Mui, director of the Office. The state sector enjoyed a 15.4 percent increase, while the private sector that accounts for more than 31 percent of the city's industrial value grew by 12 percent compared to last year.
The foreign-invested sector made up more than 46 percent of the city's economy, a 17.1 percent increase from the same period last year.
Most industries registered increases, except for machinery manufacturing (down 4 percent), and TV and information equipment production (down 4.4 percent).
Resources - More time needed to implement new power price policy: officials
Thanh Nien
Despite a new regulation allowing electricity prices to be changed based on market conditions in June, officials say more time is needed before they can put the rule into effect.
The government has said power prices will be adjusted as often as once every three months if input costs rise or fall. The policy is set to take effect at the beginning of June, replacing the current practice of having prices changed once every year.
Deputy Industry and Trade Minister Hoang Quoc Vuong said the ministry has been asked by the government to issue instructions on how to calculate power prices based on three key cost factors – foreign exchange rate, fuel cost and output.
However, with much work needing to be done, it’s unlikely that power prices can be adjusted based on market conditions right on June 1, Vuong told a press briefing in Hanoi on Friday.
Dinh Quang Tri, deputy general director of national utility EVN, also said it’s unlikely that calculations and adjustments of power prices can be completed by June 1. He refused to give a timeframe for the next change in prices.
Huge losses
Vietnam raised the average electricity price by more than 15 percent at the beginning of March, to 1,242 dong per kilowatt-hour. The increase was aimed at making the sector more attractive to investors and covering part of the losses suffered by EVN.
Tri said on Friday that the utility posted a loss of 8 trillion dong (US$383.6 million) in 2010 and also owed huge debts to coal group Vinacomin and state oil company PetroVietnam.
He noted that even though retail power prices have gone up since March, EVN will need to wait until the end of this fiscal year to collect all its revenues and begin repaying debts.
EVN is still investing around 3 trillion dong, or 3 percent of its total investment outlay, to sectors beyond its main function, but the group has said it will divest from these non-core businesses.
EVN Telecom, a unit of EVN, planned to sell a 49 percent stake to FPT Corp, Vietnam’s top technology services firm. However, FPT announced earlier this month that it was cancelling its purchase plans.
Gas supply shrinks after 30 years of exploitation
VNS
Gas reserves of the Tien Hai gas field in the northern province of Thai Binh have been dwindling from more than 30 years of exploration, but the discovery of new, offshore oil and gas structures is expected to increase the energy supply for the region in the near future.
This information was confimed by Nguyen Vu Truong Son, general director of PetroVietnam Exploration and Production (PVEP), a unit of PetroVietnam, at the 30th anniversary of the exploitation of Viet Nam's first gas pipeline in the province on Thursday.
In 1981, the first gas field was developed in Tien Hai District, Thai Binh Province in the Hong (Red) River basin.
This was a milestone, marking the first time Viet Nam's petroleum industry was listed on the world map of oil and gas, and exposing the industry to the prospect of development.
To date, this region has detected a total of 13 reservoirs with a total of 1.3 billion cu.m of gas reserves. In 30 years, the total production and supply of gas has reached 850 million cu.m.
Pham Van Ca, vice chairman of the provincial People Committee, said the supply from the Tien Hai C gas field helped establish the 120ha Tien Hai Industrial Park (IP), home to over 40 businesses producing glass, crystal, porcelain, and ceramic tiles with an annual turnover of over 650 billion dong (US$31.1 million).
However, the field's production was in decline and was not providing enough fuel to meet increasing demand from enterprises in the industrial park, Ca said.
PVE's general director Nguyen Vu Truong Son said in order to meet the gas needs of the Tien Hai IP and the northern region in general, PVEP and Song Hong Petroleum JSC had been actively carrying out exploration activities to evaluate reserves of potential reservoirs in the basin.
Newly discovered oil and gas structures, including Hac Long, Dia Long and Ham Rong, presented promising opportunities for fuel exploitation to aid manufacturing and petroleum industries, Son said.
PetroVietnam also directed PetroVietnam Gas to make an implementation plan to explore the Ham Rong field in Thai Binh from Lot 102-106 for the next four years. During this period, PetroVietnam will also give priority to developing a gas pipeline to the shore to promote the gas industry in the region.
TNK-BP signs agreement to receive operatorship of Vietnamese offshore gas Block
neftegaz.ru
TNK-BP signed the transfer agreements on Block 06.1 which confirm partner approval of the acquisition and that TNK-BP will take over the role of operator of the offshore gas Block 06.1 in Vietnam. The agreements, which will now be submitted to the Vietnamese Ministry of Industry and Trade to receive final governmental approval, were signed by the block’s former operator BP, as well as TNK-BP’s future partners in the joint venture, PetroVietnam and ONGC Videsh Limited of India.
The deal, by which TNK-BP will acquire BP’s stakes in upstream, pipeline and electricity assets in Vietnam and Venezuela for a total of $US 1.8 bln, was announced in October 2010. Block 06.1 is Vietnam’s largest in-country gas producer and will bring TNK-BP production of 18.8 thousand barrels oil equivalent per day on a net entitlement basis in 2011.
Maxim Barsky, Deputy Chief Executive Officer of TNK-BP, commented:
“We are confident that Block 06.1 is a high-quality asset that will enable TNK-BP to develop new expertise, particularly its offshore capabilities. As operator of Block 06.1, TNK-BP will ensure responsible operations and the highest commitment to environmental safety.”
The acquisitions in both Vietnam and Venezuela are on track to be completed in the first half of 2011.
NK-BP is Russia’s third largest oil company, 50 percent held by BP and 50 percent held by the AAR Consortium (Alfa Group, Access Industries, and Renova). TNK-BP also owns close to 50 percent of another Russian oil and gas company, Slavneft. TNK-BP accounts for approximately 16 percent of Russia’s production (including its share of Slavneft). SEC proved reserves (life of field basis) were 8.794 billion boe as of December 31, 2010.
Vung Ro digs for oil partner
VIR
Investors in the long-delayed Vung Ro oil refinery and seaport project in central Phu Yen province are calling for a new partner to ramp up the project’s progress.
Director of the province’s Department of Planning and Investment Nguyen Chi Hien said Vung Ro Petroleum LLC – the joint venture between UK’s Technostar Management Limited and Russian Telloil – had reported there would be a change to the company’s founding members.
“The change is said to make the project more viable,” said Hien.
A source from the joint venture said a Moscow-based firm would buy a stake in the project. “The sides are in negotiation. I think we will have the final result shortly.”
However, the source declined to name the Russian firm or how much a stake it would acquire.
The $1.7 billion Vung Ro project was licenced in November, 2007 with a total refining capacity of 4 million tonnes of crude oil per year. The investor also planned to build a seaport closed to the refinery.
However, the project construction has been delayed many times because of slow site clearance. In a bid to speed up the progress, Vung Ro Petroleum has agreed that it would give about $7 million to provincial authorities to assist in the building resettlement areas and site clearance completion.
“We saw the investor is very committed,” said Hien.
The joint venture source said the involvement of a new Russian partner would strengthen the financial ability of Vung Ro Petroleum.
In the latest move, Vung Ro Petroleum proposed raising annual production capacity to eight million tonnes of crude oil.
“The instability of the global economy is a great opportunity for us. Investment costs are now lower than our initial estimate so we should take this chance to raise production capacity,” said the source.
He revealed that the capacity hike would push the investment cost for the Vung Ro project to a maximum $2.5 billion.
However, the capacity adjustment could only be implemented once the investors receive the prime minister’s approval. “We submitted the proposal to the prime minister and are waiting for his response,” Hien added.
The joint venture source said because of the change of stakeholders and the upward shift in capacity, project construction could be delayed until the end of this year or early next year.
Currently, Vietnam has only one oil refinery in operation – in the Dung Quat Economic Zone. Nghi Son oil refinery in north-central Thanh Hoa province is under construction, while the government is calling for investment into Long Son refinery in southern Ba Ria-Vung Tau province.
Two weeks ago, Can Tho People’s Committee urged domestic Vien Dong Investment and Trade Corporation to prove the feasibility of a $350 million oil refinery project in Can Tho city before June this year.
The Vung Ro project is one of five oil refinery projects licensed in Vietnam to date. These refineries are expected to ensure the long-term energy security of the country.
Property - Daewoo may become the only investor of West Lake urban area
Tien Phong
The West Lake new urban area project, which is believed to create the biggest and most modern urban area in Hanoi, may resume its implementation soon, after the six-year interruption.
The golden land has been left fallowed
Under the project, in the future, Hanoi will have a modern new urban area located in the west of Ho Tay (West Lake), belonging to the Tay Ho, Cau Giay and Tu Liem districts. However, at this moment, the land area, where a new modern urban area will arise, remains a fallowed land. On the path linking Pham Van Dong Road to the land area, one can see wild grass growing everywhere and cattle grazing.
Vuong Thi Hoa, who lives in Xuan Dinh commune in the Tu Liem District, said that local residents were asked to stop agriculture production in 2008, to give land to the project developer. However, the land area still has been left idle since 2008. "As the land has been left untouched, I have been trying to grow rau muong (a kind of vegetable in Vietnam) to earn some more money to support my children's studies," Hoa said.
Local residents in Xuan Dinh Commune said that the project implementation has been going very slowly, thus, having been badly affecting their lives. Though the local residents were asked to stop cultivating the land in 2008, they only got compensation money for clearing the site three years later.
According to the Xuan Dinh Commune People's Committee, over 100 hectares of land in the commune have been seized to make room for the project. To date, the procedures on compensating for site clearance have not been completed for nearly 100 local households. The same situation is being faced by local residents in Co Nhue commune.
According to the Hanoi Land Fund Development Centre, there are many reasons behind the slow site clearance process. The project's investor himself has been slow in making payment for infrastructure to the city's authorities. Besides, disputes have been raised between local residents and the project's management board about the compensation levels for site clearance.
Under the initial plan, the site clearance process would be completed by 2009, while infrastructure works and multistory buildings would be completed by 2011. However, the plan has failed completely. Especially, the project's investors even could not kick off the project on the occasion of the 1000th anniversary of Thang Long-Hanoi.
Will Daewoo become the only investor?
According to Tran Duc Vu, deputy director of the Hanoi Planning and Investment Department, though the project has been late for six years in implementation, South Korean investors still show their determination to carry out the project, and they have asked for an adjustment of the investment licenses.
Initially, the project was registered by five big groups from the Republic of Korea, including Daewoo, which planned to set up a joint stock company to develop the project. However, in the latest news, the other four investors would sell their capital contributions and their interests to Daewoo Group to withdraw from the project.
If the scenario occurs, the West Lake urban area project will only have one owner instead of five as previously planned.
"Under the previous investment mode, there would be a common operation office. However, any decision would be released only after getting the approval from all the five investors. This really caused difficulties to the project implementation," Vu said.
Besides, the investor has been slow in fulfilling his financial duties to make contributions to the building of the four routes to the new urban area.
After the city's authorities urged many times, the expenses for the building of the route No 4 has been transferred to Hanoi. Meanwhile, the construction of the four routes to the new urban areas is under the construction.
"The land area for the West Lake urban area is rare golden land area left in Hanoi. It would be better to restructure the project," said the representative from the Hanoi Planning and Investment Department.
Also according to the department, Hanoi's authorities and the investors will have to negotiate some issues, because many big changes have occurred over the last six years.
12tr-dong project comes up Hanoi
VNS
Dai Duong (Ocean) Group is set to start the Star Citi Centre-12 trillion dong project in Tran Duy Hung-Khuat Duy Tien intersection (Hanoi) with total estimated investment capital of 12 trillion dong in December.
The project covers a total construction area of 500,000 square meters including 160,000 sqm of housing and over 200,000 sqm of trade floors located in park area.
Also, two VNT Tower and Star City Le Van Luong projects are under smooth construction, which are expected to generate 2 trillion dong in 2011 revenues.
Its chair Ha Van Tham said that 2011 would be a challenging year for real estate developers because of high inflation and tightened credit. It is possible that real estate companies will be merged and acquitised as lacking capital. But, this also will be more opportunities for property companies if catching good development chances for following years.
The group last year reported gaining 2.258 trillion dong in revenues, in which property accounted for 56 percent or almost 1.267 trillion dong, hotel services 30 percent and financial services 12 percent. Its aftertax profit was posted at 595 trillion dong, including 83 percent or 475 billion dong earned from real estate.
This year OCG plans to reach 3 trillion dong in revenue, a year-on-year growth of 32.9 percent and pre-tax profit of 825 billion dong, representing an annual rise of 5.09 percent and a dividend of 15 percent.
Hanoi buyers dominate Da Nang real estate market
Thanh Nien
The residential real estate market in Da Nang is mainly driven by buyers from Hanoi because of the city's proximity and advantageous weather conditions, says consulting firm CB Richard Ellis.
According to the company's latest quarterly report, in the first three months this year, 51 percent of buyers were from Hanoi while locals accounted for 39 percent. CBRE said the beach was another factor that helps the central city attract many buyers.
In terms of prices, the luxury residential segment remained quite steady in the first quarter, with that of condos falling slightly to $1,787 per square metre from $1,842 per square metre. Meanwhile, mid-end condo prices have risen in the last two quarters, the report said.
CBRE said there has been no additional luxury or high-end supply in the last three quarters. "Developers are shifting their priority to mid-end projects to deliver more affordably priced units to a larger market of potential buyers. Currently the mid-end segment accounts for the largest market share at 47 petcent of the total residential market supply," the company said in its report.
It said an additional 2,500 units across all segments will enter the market through 2014.
The report also noted that the land plot market in the city is "hot" since a sharp increase in supply started in the third quarter of 2010. "Most land buyers are speculators, those who are looking for a profit within a shorter time horizon."
Da Nang's economy expanded 12.7 percent in the first quarter compared to the corresponding period last year, CBRE said.
Vietnam's retail market attracts Thai businesses
Vietnamplus
More than 100 businesses from Thailand are showcasing their products at the fifth Made-in-Thailand Outlet 2011, which opened in Hanoi on April 21.
During the four-day fair, Thai businesses will introduce to Vietnamese customers products such as foods, drinks, household utensils, garments, jewelries, health and beauty care products, auto and bike parts, decorations and souvenirs.
Speaking at the opening ceremony, Pham Thi Hong Thanh, deputy director of the Asia-Pacific Department under the Ministry of Industry and Trade, said that the fair is a good chance for the two countries' investors and producers to exchange experience and expand business cooperation.
According to the Trade Commission of the Thai Embassy in Hanoi, the annual trade fair not only aims to promote Thailand 's products but also offers an opportunity for Thai businesses to study the potential Vietnamese retail market and seek partners.
The event is jointly held by the Thai Ministry of Trade, the Embassy of Thailand in Vietnam and the Vietnam Trade Fair & Advertising Company (Vinexad).
700 villas in Hanoi left unfinished
Tuoi Tre
The Ministry of Construction and the Hanoi Department of Construction on Wednesday released a joint report that found nearly 700 villas in unfinished conditions around the city.
These are part of a total 2.700 villas of 16 construction projects approved by the city.
The construction authorities suspect owners of these unfinished villas were real estate speculators.
After the report was released, the Hanoi People's Committee ordered the owners to timely complete the construction of their villas to protect the city's urban landscape.
35pct of luxury homes in Hanoi left unoccupied
Dtinews
Nearly 35 percent of large, newly constructed homes in Vietnam's capital are left unused.
The Ministry of Construction's Housing and Real Estate Market Management Department and the Hanoi Department of Construction have inspected 16 housing projects in the city. These projects, by 11 separate investors, include spacious homes, semidetached houses and apartment blocks.
Vu Xuan Thien, deputy Head of the Housing and Real Estate Management Department, said, 1,743 among the total number of 2,684 luxury homes that were checked are in use, leaving 698, or roughly 35 percent vacant.
According to Thien, the main reason for the neglected state of many of these homes has been years of speculation in Hanoi's real estate market, along with a lack of infrastructure, such as schools, and hospitals to serve potential occupants.
Most of the inspected projects failed to meet construction deadlines set by authorities. Some were up to 5-7 years late, he added.
The department has ordered investors to focus on the construction of infrastructure facilities.
Also, large homes and semidetached structures must be put into use strictly in line with the contracts the investors initially signed. This action by the department is meant to deal with the problem of so many large, luxury homes being left vacant for years.
Meanwhile the city is short of land and and many residents find it difficult to secure housing.
An Sinh apartment block in My Dinh 2 urban area, Tu Liem District, is a typical example, with large homes left abandoned for five years. Others, including Co Nhue, Van Quan and Phap Van-Tu Hiep urban areas, are in the same state.
Earlier, the prime minister requested the Hanoi municipal government to scrutinise the neglected villas. However, the situation has not improved.
Licogi 13 hopes to gain 350b dong from trading real estates
Dau Tu Chung Khoan
Licogi 13 Joint Stock Co (coded LIG) estimated to gain about 350 billion dong from trading real estates in 2011, counting for 33.28 percent of the total expected revenue of 1.051 trillion dong.
In the coming AGM, LIG will seek shareholders' opinions for paying 2010 dividend at applied ratio of 18 percent.
This year, the company targeted to earn whole year pre-tax profit of 100 billion dong. The company expected to start construction works on CT7 building in Thinh Liet new urban area by the end of 2011.
Infrastructure - EVN's non-core investments at 3tr dong
Vietbiz24
Electricity of Vietnam (EVN)'s non-core investments in sectors such as banking, real estate, and telecommunication accounted for three trillion dong, or 3 percent of EVN's total investment capital, lower than the government's allowable 30 percent ratio, Dinh Quang Tri, EVN's deputy general director said.
Currently, EVN owns 40 percent stake into EVN Finance Joint Stock Co that has a chartered capital of 2.5 trillion dong.
EVN is also a strategic shareholder of An Binh Commercial Joint Stock Bank (An Binh Bank), the bank with a chartered capital of 3.83 trillion dong till December 2010.
Additionally, EVN associated with Ha Thanh Securities JSC, Saigon Vina Power Real Estate JSC, EVN Central Co and EVNLand Nha Trang.
In the telecommunication sector, EVN and Hanoi Telecom recently signed a 10-year strategic cooperation agreement whereby in the first three year, the EVN Telecom and Hanoi Telecom association will invest about six trillion dong for the launching of 3G services.
Tri also said that EVN is offloading and cutting down the holding in this sector.
EVN's 2010 losses excluded in 2011 electricity price scheme
NDHMoney
After raising electricity prices earlier in March this year, leaders of the Ministry of Industry and Trade said that the main purpose of increasing prices was to reduce losses for Electricity of Vietnam Group (EVN).
However, on April 22, deputy general director of EVN, Dinh Quang Tri, told that, the electricity price increase scheme in 2011 completely did not include all the group's losses in 2010.
According to preliminary reports, the actual losses of EVN in 2010 were only about 8 trillion dong. Tri said that EVN asked a series of its subsidiaries to cut all costs. "Entire power transmission companies and electricity distribution companies cut off the profits that were previously planned for them, so the cost has decreased by more than 3 trillion dong, bringing the total losses of the group to just over 8 trillion dong", said Tri.
According to Tri, in the electricity increase price scheme in 2011, EVN has not calculated the losses into the electricity prices. Department of Electricity Regulation has asked EVN to wait until the audit result is issued to give correct figures.
Currently, the auditor is working and by the end of May and early June, VNE will have official audited figures.
Tri said that fuel for power generation now accounts for 60 percent of the costs for coal and gas, while the fixed costs are only about 20-30 percent.
EVN to get power grid free
VNS
The Hiep Phuoc Power Co. (HPP) has agreed to hand over its grid to Electricity of Vietnam (EVN) for free in a deal under which the national utility will buy all power produced by the former at a fixed price.
HPP was willing to transfer its 15kV, 22kV, 110 kV and 110kV/15kV transformers in the Hiep Phuoc Industrial Park and Tan Thuan Export Processing Zone to EVN, according to Pham Hong Tien, head of the HPP's Operation Division.
He said EVN would also discuss with Phu My Hung Co a similar transfer of transmission lines built by the latter in the Phu My Hung Urban Area.
Tien said HPP will operate and maintain the 110kV transmission line and related grids and manage customers for free until EVN can operate it.
Later, all contracts signed between HPP and its customers would be renewed by EVN.
Explaining the offer in a letter sent to city authorities last Tuesday, HPP general director Zhang Yin Fu said it aimed to ensure uninterrupted power supply for the clients.
EVN should take over the power grid and sell power to all HPP customers from early May, Fu said.
If the plan was approved by EVN, it could supply power immediately to Hiep Phuoc IP, Tan Thuan EPZ and Phu My Hung Urban Area without making any additional investment, said Tien.
In return, Tien said, EVN should purchase all the power from HPP's 375MW plant for $0.17 per kilowatt hour.
Currently, half of HPP's electricity output is bought by EVN and the remainder is sold to other customers five to 7.5 cents per kWh.
The proposal to hand over HPP's transmission facilities was made after the company's warning that power supply to Hiep Phuoc IP would be suspended from May 1 due to financial problems (caused by fuel price hikes) that it was facing.
The Tuoi Tre (Youth) newspaper quoted an unnamed government official as saying that the negotiation would last for months because the prices demanded by HPP were three to four times higher than the prices at which EVN was buying electricity from other plants in the country.
On April 21, HCM City asked the government to establish a team comprising officials of the Ministry of Trade and Industry and EVN to assess the proposals from HPP so that the latter's power grid could be handed over as soon as possible.
Work on 48MW Song Tranh 4 hydropower plant starts
Vietnam News Agency
Song Tranh 4 Hydropower Joint Stock Co on April 24 began construction on Song Tranh 4 hydropower plant in Que Luu commune, Hiep Duc district, in the central province of Quang Nam.
Song Tranh 4 hydropower plant project is part of national electricity development scheme during 2006-2015 and one of 33 hydropower plants in the socio-economic development scheme of Quang Nam province.
The 48 MW Song Tranh 4 hydropower plant with a total investment of over 1.6 trillion dong is expected to be in operational after three years of construction.
Biggest hydropower plant's new turbine commissioned
Vietnamplus
The second turbine of the Son La hydropower plant in the northern mountainous province of Son La started generating power for the national grid on April 20.
The Electricity of Vietnam (EVN) said that the second turbine is expected to ease power shortage during the dry season.
The third turbine of the plant is scheduled to generate electricity by the end of August 2011 and the other remaining turbines, in late 2012.
The first generator has generated 1.1 billion kWh since it was officially commissioned four months ago.
With six turbine groups and a combined capacity of 2,400 MW, Son La is the biggest hydropower project in Vietnam and Southeast Asia. It has a total investment capital of some 42 trillion VND, or more than 2.1 billion USD, and will supply the economy with 10.2 billion kWh of power a year once it swings into full operation in 2012.
Jica to support Vietnam's wastewater treatment project under PPP method
DVT.vn
People's Committee of Hanoi and Japan International Cooperation Agency (Jica) have recently signed a memorandum of understanding (MoU) to prepare for operation and maintenance project of Bay Mau and Yen So wastewater treatment stations under the public-private partnership (PPP) method.
The research team conducted a survey at the wastewater treatment plants in the city (Kim Lien, Truc Bach, and North Thang Long-Van Tri) and gave recommendations for better operation and maintenance.
The Japanese government had already provided a loan for the project to improve water environment in Hanoi to develop the water drainage system. In the upcoming time, there will be four sewage treatment plants to be put into operation as the Bay Mau, Yen Xa, Phu Do and Yen So.
$4m multiplex logistics centre inaugurated
Vietnamplus
After eight months of construction, on April 20, Damco Logistics Services Co, logistics solutions provider, inaugurated multiplex logistics centre capitalised at more than $4 million for the first phase in Binh Thang ward Di An town, in the southern province of Binh Duong.
Modern and multi-functional logistics centre is built to serve the demand of transport operations and export and import activities for enterprises in Binh Duong and southern provinces and cities.
The 2.6 hectare centre will provide different storage services including: container freight station (CFS), bonded warehouse and general cargo warehouse with capacity up to one million three-dimension metres (m3).
Located in the key economic region, Damco warehouse centre in Binh Duong is now connected closely by land to Cat Lai seaports in HCM City and Cai Mep seaports in the central coastal province of Ba Ria–Vung Tau. In the near future, ferry and barge will be used to provide more transportation solutions.
Began construction in August 2010, this is now the ninth warehouse of Damco in Vietnam.
Electricity shortage hitting economy
Saigon Tiep Thi
Amid the constantly prolonged electricity shortage situation causing serious damages to the country's economy, ironically, a series of businesses that invested in building small and medium hydropower plants are falling into the bankruptcy tragedy.
Electricity of Vietnam (EVN) can not afford to actively invest in the electricity network although it committed to buy all the electricity of all projects when these projects are put into operation. Not only many small and medium-sized hydropower plants in Gia Lai and Kon Tum cried for help due to the lack of transmission, recently, Department of Industry and Trade of Lam Dong province also had to report to the Ministry of Industry and Trade about the need to solve problems of small and medium sized hydropower plants in the province.
Electricity sales below cost
According to the statistics during 2009-2011, EVN's electricity selling price has been approved by the prime minister to increase by 31 percent (8.92 percent in 2009, 6.8 percent in 2010 and 15.28 percent in 2011) while EVN's electricity buying price from small and medium hydropower plants remained unchanged for a long time. All hydropower plants operating before 2010 are required to sign agreement to sell electricity for EVN at the price of around 400-700 dong per kWh with the constraints of remaining the fixed price during 25 years regardless the bank loan rate, inflation and other relevant expenditures that are surging constantly.
Many projects' owners are persevering in struggling to sell electricity according to the rush-hour division benchmark in accordance with the Decision No 18/2008 issued by the Ministry of Industry and Trade. However, only some plants that started operation in 2010 are applying this price benchmark. But, this way is not absolutely optimal. Because during the raining season, the total volume of water in reservoirs is high, however, the electricity price is low at only 460-481 dong per kWh while in the dry season and the volume of water in reservoirs is limited, the electricity price at the rush-hour reaches only 2,345 dong/kWh but it is controlled for only five hours per day and the price is only 563 dong/kWh. There will be not rush-hour on Sunday.
Too high bank loan rate
Currently, in the central highland province of Dak Lak there have been nine small and medium sized hydropower plants starting operations with a total investment of about 1.16 trillion dong and total capacity of 58MW. Of which, eight ones signed contract to sell electricity to EVN priced at 400-607 dong/kWh, the fixed price for 20-29 year period, only one plant namely Ea Mdoan 2 plant operating from early 2011 sold electricity to EVN in accordance with the Decision No 18, Dak Lak department of industry and trade reported.
Minister of industry and trade, Vu Huy Hoang also confirmed Vietnam's electricity price during past years has been still lower than the cost price, giving the unbalance in finance for electricity producers.
Krong Hin hydropower plant, the Vietnam's first private hydropower project, the sole plant in Dak Lak province has not posted loss yet so far thanks to the total cost estimate of 102 billion dong but the enterprise borrowed only over 48 billion dong. Furthermore, all expenditures for design, consultancy, construction, procurement and installation of equipments and operation management were saved absolutely and all these work were done by the project's director himself.
Hoang Anh Tuan, Hoang Nguyen Co Ltd's director, the investor of three small and medium hydropower projects in Dak Lak and Dak Nong provinces with a total capacity of 15.5MW, said that: "I entered the hydropower investment sector because I have heard that the government plans to subsidise the loan rate for hydropower plants. However, when asking to borrow capital, the Development Investment Fund confirmed the government cut this subsidy. I had to borrow capital at commercial banks although the loan ratio was only 55 percent of the project' value with 200 billion dong on total investment of 360 billion dong, however, due to the electricity selling price was forced at too low amid too high loan rate, so the two hydropower plants operating from 2008 so far have put a huge debt block on the company". As estimated, each year, the capital volume from electricity sales will pay about 19 billion dong of the interest and 12 billion dong of the original. But, with the current lending rate of up to 19 percent per year, we will have to pay the interest of up to 39 billion dong each year, leading to a heavy loss.
PVFC offers consulting services for arranging capital at thermo power plant project
Dau Tu Chung Khoan
The National Oil and Gas Group (PetroVietnam) and five international banks of China Development Bank, HSBC, Bank of Tokyo-Mitsubishi UFJ, Credit Suisse and Intesa SanPaolo planned to sign the credit contracts funding for Vung Ang 1 thermo power plant project.
HSBC has syndicated the first loans valued at $V904 million.
PetroVietnam Joint Stock Financial Corp (PVFC) has cooperated with PetroVietnam and other funing banks to carry out capital arrangement process.
At present, thermo power plant has total investment capital of $1.6 billion. It was expected that the first turbine would be officially put into operation in July 2012.
Governance - Vietnam, Russia urged to enhance cooperation
VNS
Vietnam and Russia need to work closely to carry out agreements signed by leaders, focusing on boosting bilateral cooperation in economics trade, investment, culture, education-training and science-technology, said prime minister Nguyen Tan Dung.
PM Dung asked both sides to make good preparations for the Vietnam visit by Russian prime minister V. Putin in July while receiving Russian deputy Foreign minister A. Borodavkin in Hanoi on April 25.
The PM highly valued the outcomes of the regular political consultation at deputy foreign ministerial level between the two foreign ministries in Hanoi, saying that the results showed confidence and cooperation between the two ministries and made contributions to the Vietnam-Russia strategic partnership.
He affirmed Vietnam's readiness to accelerate the warming-up of negotiations on a free trade agreement (FTA) between Vietnam and member countries of the Russia-Belarus-Kazakhstan Customs Alliance, which is expected to facilitate trade, investment and targets to raise two-way trade to $3 billion by 2012 and $10 billion by 2020.
PM Dung said Vietnam is also ready to cooperate with Russia in aviation and space technology for peaceful purposes, as well as organising the Apec 2012 Summit.
Deputy FM Borodavkin informed PM Dung that during the consultation meeting, the two sides discussed orientations and measures to enhance bilateral cooperation and ease difficulties to accelerate the implementation of strategic cooperation projects, especially the project on construction of the first nuclear-power plant in Vietnam.
Both sides supported the continued expansion of cooperation on energy and implementing the two countries' leaders guidelines that the head of the Vietnam-Russia intergovernmental committee on economic trade and scientific-technological cooperation will be a permanent deputy prime minister/first deputy prime minister, he told PM Dung.
During deputy Foreign minister Borodavkin's visit to Vietnam from April 24-26, the Russian deputy FM and his Vietnamese counterpart, Bui Thanh Son conducted a political consultation.
The regular political consultation at deputy foreign ministerial level was to review situations and discuss measures to strengthen the traditional friendship and promote cooperation between the two countries in the context of the two nations celebrating the 10 th anniversary of their strategic partnership.
Both sides agreed that the Vietnam-Russia strategic partnership is developing in a strong and comprehensive manner.
The two deputy FMs highly valued the close cooperation between Vietnam and Russia at the United Nations, Asia-Pacific Economic Cooperation (Apec) forum and the Asean Regional Forum (ARF).
Vietnam asked for Russia's support in its bid for membership of the UN Human Rights Council for the 2013-2016 term and as a non-permanent member of the UN Security Council for the 2020-2021 term and the Russians acknowledged Vietnam's proposal.
Many countries pledge to reduce taxes for Vietnam
Dien Dan Doanh Nghiep
Ministry of Industry and Trade (MoIT) has said that in 2011, Australia, New Zealand and Japan have pledged to reduce many taxes against 2010 for Vietnamese export import enterprises when exporting products to these countries.
The ministry also said that under the Asean-Australia-New Zealand free trade agreement (FTA), Australia and New Zealand have cut down 85 percent and 96.4 percent respectively of tariff lines for Vietnamese export items in 2011 and proceeded to give completely tax exemption for Vietnamese goods by 2020.
With this roadmap, in 2011, these two countries will continue to lower duties for Vietnamese firms.
Particularly, Australia committed to reduce 54 tax lines from 2010's, focusing on basic items such as fabrics (from 10 percent to 8 percent) and apparel products (from 15 percent to 10 percent).
Meanwhile, New Zealand will reduce 698 tax lines from 2010's, focusing on commodities such as candy, candle and adhesive tape (from 5 percent to 3 percent), plastic, leather, rubber, wooden products in the chapter 44 and 94 (from 5 percent to 3 percent), some apparel products (from 10 percent to 8 percent and from 5 percent to 3 percent), footwear (from 15 percent to 10 percent), brick and tile products (5 percent to 3 percent), machineries and equipments in the chapters 84 and 85, transport means in the chapter 87 (from 5 percent to 3 percent) and other commodities in the chapter 96 will enjoy the reduction from 5 percent to 3 percent.
Especially, Japan, the Vietnam's second biggest buyer, under the AJCEP commitment, there will be 7,264 of 9,111 Vietnamese goods to Japanese market will enjoy the tax exemption right after the agreement took effect from December 2008.
Prime minister receives Chinese deputy FM
VietnamPlus
Prime minister Nguyen Tan Dung received Chinese deputy Foreign minister Zhang Zhijun, who headed a Chinese government delegation on border negotiation, in Hanoi on April 19.
PM Dung spoke highly of the results of the talks on border and territory issues between the two countries, describing them as an important step to promote friendship and cooperation between the two nations.
He said Vietnam is pleased to see that bilateral cooperation has proved effective, particularly in politics, diplomacy, culture and education and training.
In 2010, the two countries coordinated in successfully organising Vietnam-China Friendship Year and the 60th anniversary of the two countries' diplomatic ties.
The constant growth of two-way trade benefits Vietnam and China, he said, urging both countries to carry out the one-belt and two-economic-corridor programme and early conclude negotiations to sign a five-year cooperation plan.
Regarding the border and territory issues, the PM approved the agreements reached during talks between the two sides, and urged the two countries to effectively carry out them.
On land border issues, both sides needed a common voice and co-ordinated efforts for the early signing of an agreement to facilitate free travel of ships at the mouth of the Bac Luan river and deal with cooperation and exploitation of tourism potential in the Ban Gioc waterfall area.
Regarding the East Sea, basing on the spirit of both comradeship and brotherhood, PM Dung proposed the two sides talk and seek fundamental and long-lasting solutions which are acceptable to both sides for the common benefit of peace, stability, cooperation and development in the region and the world.
Agreeing with the PM's viewpoint on the East Sea, deputy FM Zhang said that the issue needs to be solved on the basis of the comradeship and diplomatic ties between the two countries, to consolidate and strengthen the traditional friendship and cooperation between the two nations.
He informed PM Dung of the outcomes of his talks with deputy Foreign minister Ho Xuan Son on land and sea border issues between Vietnam and China.
China always attaches importance to its relations with Vietnam and wishes the two sides would continue to boost cooperation in diplomatic, cultural, economic and political areas, deputy FM Zhang affirmed.
Vietnam seeks to promote cooperation with Qatar
VNS
The Vietnamese government always wishes to promote cooperative relations with Qatar to bring practical benefits for the two countries.
Prime minister Nguyen Tan Dung affirmed in Hanoi on April 19 during his meeting with Qatar Ambassador to Vietnam Mohammed Jaber Abdullah Al-Sulaiti.
He said he hopes that Ambassador will make an active contribution to promoting the friendship between Vietnam and Qatar during his working term in Vietnam.
PM Dung insisted on promoting cooperative relations between the two nations, especially in the field of trade, saying that it was necessary for both countries to soon sign an agreement on visa exemption to foster bilateral cooperation in the fields of banking, oil and gas, energy and labour export.
For his part, the ambassador expressed his wish that Vietnam would create favourable conditions for effectively implementing the trade agreements between the two countries in the near future.
WTO commitments require legal reforms
VNS
Since its accession to the World Trade Organisation four years ago, Vietnam has gradually opened its doors to more foreign competition and strived to harmonise its maze of domestic laws with its WTO commitments.
Sections 502 y(d 503 of the Report of the Working Party on Accession of Vietnam to the WTO confirmed, for instance, Vietnam's commitment to a 51 percent voting requirement for shareholders of enterprises to approve management board proposals. National Assembly Resolution No 71, ratifying the WTO commitments, affirmed this position.
However, Vietnam's Law on Enterprises conflicts with this commitment. Articles 52 and 104 of that law provide that "the required percentage of votes, based on charter capital ownership or shares, to adopt a decision of the Member's Council of a limited liability company or the Shareholder's general Meeting of a joint-stock company, is 65 percent."
It is a fundamental principle of law that, when domestic law conflicts with provisions of an international treaty to which the country is a signatory, the latter should prevail. In fact, Vietnam has adopted this fundamental principle, as made clear in Article 6.1 of the Law on Signing and Accession to International Treaties. That article states: "in cases where a legal normative document and an international treaty to which Vietnam is a member conflict with one another on the same matter, the international treaty shall be applied." This principle is reaffirmed by Article 3.3 of the Law on Enterprises.
In 2007, the Ministry of Planning and Investment proposed a draft decree providing 51 percent as the standard voting percentage applicable to all types of enterprises. However, to date, this draft decree has not been adopted. To the contrary, a number of legal instruments have been adopted by various government entities which reiterate the 65 percent voting rule.
Ministry of Finance Decision No 17/2007/QD-BTC, for instance, proposing a model charter applicable to a company listed on the stock exchange, provides for a minimum percentage of 65 percent to adopt a decision. State Bank of Vietnam Official Letter No 2217/NHNN-CNH of March 2007 also reiterates the 65 percent rule.
Pronouncements from the Vietnam Association of Financial Investors, the State Securities Commission, and the Ministry of Planning and Investment, as well as government Decree No 59/2009/ND-CP of July, 2009, have all upheld the 65 percent voting rule.
In practice, provincial departments of planning and investment, which are the authorities in charge of issuing licenses to enterprises, have refused to allow companies to adopt a 51 percent voting rule.
The departments seem to have adopted a very literal interpretation of Resolution No 71, arguing that it applies only to "joint ventures" jointly established by foreign and local partners, and that it does not apply to any other type of enterprise, such as wholly foreign-owned or State-owned enterprises.
However, if Resolution No 71 only applies to joint ventures, the fundamental principles of WTO and the laws of Vietnam, requiring equal treatment among enterprises, have not been upheld.
Indeed, the Law on Enterprises actually eliminated the concept of a "joint venture" as a distinct form of business organisation. As such, this narrow view of Resolution No 71 applied by many provincial authorities has led to the nonsensical conclusion that the 51 percent rule does not apply to any companies.
Also attracting the attention of the business community was recent Ministry of Finance Circular No 122/2010/TT-BTC on price stabilisation. Under Circular No 122, certain enterprises in Vietnam face new price registration requirements, and possible government intervention in setting prices, for a wide variety of products and services.
Vocal champions of the business community, including EuroCham, AmCham, and the ambassadors of Australia, Canada, New Zealand, the US and the European Commission, have argued that the price registration requirements specified in Circular No 122 appear to be aimed at foreign companies and as such are not consistent with WTO commitments prohibiting discrimination. Further, some have alleged that "implementation of the new law has focused primarily on imports from foreign companies a clear violation of the letter and spirit of Vietnam's WTO commitments."
Retail competition
Newcomers and visitors to Vietnam are also often struck by the near-total absence of well-known global retailers such as Wal-Mart, Tesco, Carrefour, etc. This lies in stark contrast to many other countries in the region, including mainland China which is home to 189 Wal-Mart stores a number which is growing rapidly. While some argue that keeping out such global franchise giants is critical to preserving Vietnam's unique historical character, it is nevertheless remarkable that, four years after accession to the WTO, so few global retailers are established in the country.
There is no doubt that the economics and demographics of Vietnam are highly attractive to retailers. With a population of nearly 90 million, rapid economic growth, and a youthful population eager to keep up with the latest material trends, Vietnam is a potential gold mine for retailers.
Foreign investors, however, often find that the regulatory challenges of entering the Vietnamese marketplace outweigh the potential benefits. Vietnamese law requires franchise retailers to fulfill a cumbersome economic needs test (ENT) before being allowed to establish any retail outlets beyond an initial outlet, a requirement that suggests a fundamental lack of understanding of basic economics. Once again, Vietnamese domestic law appears to be at odds with its WTO commitments and with the WTO's spirit of market-driven economics.
The ENT is imposed by Ministry of Industry and Trade Circular 09/2007/TT-BTM, Section 4.3(a) of Chapter I, which states: "the establishment of retail sales outlets in addition to the first retail sales outlet shall be considered on a case-by-case basis and shall depend on the number of retail sales outlets, market stability, population density in the province or city where the retail sales outlet is to be set up, and consistency of the investment project with the master plan of such province or city."
This provision, along with related provisions which provide formulas for the "case-by-case" analysis, explains why Hanoi, with a metropolitan population of over 6 million, has a pathetic grand total of two legitimate supermarkets, namely one Big-C and one Metro.
Admittedly, Vietnam's WTO commitments allow for some level of control over the establishment of multiple retail outlets. According to the Schedule of Specific Commitments in Services in Vietnam's WTO accession documents, Vietnam may establish objective criteria for deciding to grant or deny an application for additional retail outlets, including "the number of existing service suppliers in a particular geographic area, the stability of market and geographic scale."
The argument against Circular No 09 is that it fails to provide truly "objective criteria." For example, Circular 09 requires "the sustainability of the investment project to the plans of the province or city" where the additional retail outlet would be located. Whether or not a proposed retail outlet meets this particular criteria is highly subjective.
Simply put, foreign investors are not willing to make a substantial investment in opening one retail outlet, without some level of confidence that they will be allowed to open additional outlets in the future. The business model of large retailers requires a high volume of product turnover, which cannot be accomplished with only a single outlet.
The Ministry of Justice, in collaboration with other ministries and agencies, has taken the initiative in reviewing Vietnamese regulations in goods, services and intellectual property for consistency with WTO commitments. This initiative demonstrates the good-faith efforts of high-level officials to continue Vietnam's advancement towards international standards of law and market-based economics.
But domestic laws in many areas continue to be inconsistent with Vietnam's international obligations. Whether the root cause is protectionism, bureaucratic inefficiency, or ignorance, the nation is obligated to rectify these inconsistencies.
Aust's FM Rudd heads to Vietnam, Germany
Xinhua
Australian Foreign minister Kevin Rudd will travel to Vietnam and Germany, local media reported on Monday.
Rudd will leave Australia on Tuesday to meet with Vietnam's foreign minister, prime minister and president in Hanoi.
The primary focus of the meetings will be the future of the East Asia Summit and the growing bilateral relationship.
During his trip in Vietnam, Rudd will also open a new section of Royal Melbourne Institute of Technology University's campus in HCM City.
After that, Rudd will travel to Berlin of Germany for a North Atlantic Treaty Organisation (NATO) foreign ministers meeting on Afghanistan.
"It (the meeting) also provides us with an opportunity to reiterate to all 48 participating states that we're there until the completion of this task (in Afghanistan)," Rudd told Australia Associated Press on Monday.
Events in Libya are also likely to feature in talks.
3.5tr dong re-invested in PetroVietnam is not from state budget: chair
VnEconomy
The issue that Vietnam National Oil and Gas Group (PetroVietnam) received an investment of 3.5 trillion dong from the State Budget has caused many mixed debates recently.
Talking about this issue, Dinh La Thang, Chair of PetroVietnam's Member Board has told the state-run online newspaper VnEconomy that 3.5 trillion dong is not from the state budget,
According to the explanation of Thang, the amount of 3.5 trillion dong is not too big for a large economic group like PetroVietnam. Recently, PetroVietnam also has had to explain with the Finance - Budget Committee of the National Assembly about the use of this money. However, to date there are several National Assembly members that do not understand this money, so the Congress has no consensus on it yet.
According to Thang, in fact, in addition to operating under the Enterprise Law, this group must also comply with the Petroleum Law, which also has its own financial management with decrees promulgated by the government. "Therefore, although PetroVietnam is a business, it does not enjoy fully the conditions of a normal business," Thang said.
That also means that PetroVietnam does not enjoy all profits after payment of prescribed amounts.
Relating to the investment reduction in accordance with the government's Resolution No 11, PetroVietnam's general director, Phung Dinh Thuc, said in the first quarter of 2011, the group developed eight new projects, inaugurated 14 projects, but also reviewed and delayed 19 projects worth 582 billion dong, made the progress extension for 45 investment projects valued at six trillion dong that are not really urgent and difficult in arranging capital, and total value for delayed and progress-extended projects were estimated at nearly 6.6 trillion dong.
However, although the difficulties lie ahead, the PetroVietnam will not cut or delay power projects.
Dutch royalty heads business delegation on Vietnam visit
Thanh Nien
Crown Prince Willem-Alexander of the Netherlands and his wife, Princess Maxima, paid a visit to Vietnam from March 28 to 31.
They were accompanied by the Dutch minister for Agriculture and Foreign Trade Henk Bleker and a business delegation representing over 80 companies seeking investment opportunities in Vietnam.
The economic mission focused on five sectors: water, agriculture, transport and logistics, the maritime sector and oil and gas.
"For the Netherlands, Vietnam is not only a promising and attractive emerging market, but also a highly competitive one," said Joop Scheffers, the Netherlands' Ambassador to Vietnam.
In Hanoi and HCM City, the delegation met with senior government officials, attended seminars and visited local companies.
Officials said the goal of the visit was to strengthen ties in business, foster knowledge exchange and government-to-government cooperation in various fields.
The Netherlands is now the single largest EU investor in Vietnam with a total investment of around $5 billion, the Vietnam News Agency reported on Monday.
Vietnam looks to slash public spending
Wall Street Journal
Vietnam is expected to cut public investment by 50 trillion dong ($2.4 billion) or 7.4 percent this year, the central bank said Thursday, in its latest attempt to restore economic stability.
Prime minister Nguyen Tan Dung, who met with state officials late Wednesday to review the implementation of anti-inflation measures announced last month, asked ministries, provinces and industries to reduce their investment capital in various projects, the central bank said in a statement posted on its website. By reducing investment levels, authorities are hoping to curb the amount of cash circulating in the economy, which in theory should cool growth and help bring inflation down.
The National Assembly in November approved a state budget expense of 605 trillion dong for 2011, which was later revised upward by the Ministry of Finance to 676.36 trillion dong. So far this year, ministries, provinces and state firms have cut 3.4 trillion dong from 1,387 projects, the statement said.
Economist Vuong Quan Hoang from Hanoi-based DHVP Research & Consultancy said the government will find it very difficult to cut such a large amount of spending because many of the projects are run by groups with connections to government officials. "It's not in interests of anyone to cut off the funding," the economist said.
In an effort to reduce the financial burden on lower-income and small companies, the government Thursday also said it will provide poor families with financial assistance of up to 250,000 dong a month, and allow small private companies to defer tax payments for a year. It didn't, however, say how much tax obligations they could defer.
The Vietnamese economy remains confronted by major imbalances that have become so serious that authorities recently reversed their pro-growth policy to one that focuses more on containing surging inflation and producing greater stability.
Via a series of tighter monetary and fiscal policies, the Vietnamese government hopes to tame inflation, which rose 13.89 percent in March from a year earlier, the fastest year-to-year pace since February 2009. The government wants to cap inflation at 7 percent this year.
The trade deficit also remains wide, coming in at $1.15 billion in March and $3.03 billion for the January-March period.
Vietnam has also launched a crackdown on trade in US dollars in a bid to bolster the country's dwindling foreign reserves and restore confidence in the local currency, which has been devalued four times in the past 14 months.
The central bank set the exchange rate Thursday for the dollar at 20,703 dong, up from 20,698 dong Wednesday, marking the highest official rate since the country started embracing a market economy two decades ago.
The central bank said it will soon issue new regulations to eliminate the trading of dollars and gold bullion in the free market, in line with the government's steps to stabilise the domestic market.
Meanwhile, the central bank said Vietnam is estimated to have received foreign investment disbursement of $2.54 billion in the first quarter, up 1.5 percent year-to-year.
The country's total money supply, or M2, was up 1.7 percent at the end of March compared with end-2010, and total outstanding loans at banks rose 3.68 percent during the same period, the central bank said.-by Nguyen Pham Muoi
Legal News - Ministry suggests increase in income-tax threshold
Tuoi Tre
The Ministry of Finance has recommended to the government to increase the income-tax threshold to 5 million dong (US$240) per month from the current 4 million dong.
It requires to be approved by the National Assembly which convenes next in July.
The law also allows a deduction of 1.6 million dong a month each for up to two dependants.
Out of the 7 million income-tax payers in the country, more than 200,000 are in the lowest income bracket of 4 million dong which is subject to a tax of 5 percent.
Thus, if the ministry's proposal is approved, it will mean a loss of tax revenue of nearly 3 trillion dong ($143.5 million).
The proposal will partly mitigate the "irrationality" of the tax law and ease the burden caused by inflation, the ministry said.
There have been complaints for long that the tax threshold is too low, especially in the context of prices that have been galloping for the last few years, a point conceded by the ministry.
But for many people, the ministry's action is too little too late.
The new threshold too is very low, Vu Quang Hai, a member of the NA Law Committee, said. "Although a little is better than nothing, I think the ministry should have come up with a better proposal."
"In my opinion, the taxable income threshold should be 8 million dong ($383), or 10 times the minimum wage."
Economist Pham Chi Lan said the proposal is a positive move towards amending the Law on Personal Income Tax but the new taxable income threshold shows the ministry has still not listened to taxpayers.
"How can the ministry advocate a threshold of 5 million dong when prices have risen so much, especially in the last few months?"
She too demanded an increase to 8 million dong.
Dr Le Dang Doanh, a senior economic advisor to the Ministry of Planning and Investment, said the ministry has responded too late to developments in the economy.
The ministry's response was too "weak" given that prices have shot up, seriously affection people.
This month's CPI is estimated at 3.16 percent, he said.
Many other countries with lower price rises than Vietnam have already raised income-tax thresholds to help their citizens, he added.
Wine, cosmetic imports may be limited to three ports
vietnambusiness.asia
The government may limit the import of wine and cosmetics products to the three ports of Hai Phong, HCM City and Da Nang, according to the Ministry of Industry and Trade.
The move is being considered as many ports that process imports lack facilities to test the quality of wine and cosmetics products.
Income at 5-8.3m dong/month would enjoy PIT exemption
Nguoi Lao Dong
Ministry of Finance (MoF) has said it is waiting for the National Assembly (NA)'s resolution to give an exemption on personal income tax (PIT) for some taxpayers to lessen difficulties for people amid high increasing inflation context.
Accordingly, under MoF's proposal, the single people with the income of five million dong per month, peope with income of 6.6 million dong per month but having one dependent, and people with income of 8.2 million dong per month but having two dependents will be subject to the tax exemption. The tax exemption will be from the NA's resolution issuance till the end of 2011.
This draft will be submitted to the NA in the session in July 2011. If the NA approves, the tax exemption duration will be implemented in the last six months 2011.
As expected, there will be about 200,000-220,000 people enjoying this tax exemption, accounting for 40 percent of the total PIT payers.
The PIT exemption will not affect much the state budget revenue because the total budget collection from PIT for the whole year 2011 would reach about 29 trillion dong while the total amount of tax exemption would be only three trillion dong.
Government restrictions unable to stop import of non-essential goods
Tuoi Tre
Despite government insistence to restrict import of non-essential goods in 2011, imports continue unabated.
Imports in the first two months of this year have soared sharply as compared to the same period last year.
The government advocates restricting import of essential goods to allow local home made products to reach the local markets with an aim to boost economic growth.
Products that cannot be made well or in sufficient quantities within the country should be given priority for imports.
Products such as various kinds of equipment, materials, state-of-the-art technology, fuel, fertiliser, steel, textile and garments can be imported, as the country is unable to supply adequate amounts.
Import of unnecessary commodities like cigarettes, consumer goods, small automobiles of less than 12 seats, auto parts, motorbikes, cosmetics and alcohol beverages must be locally made.
According to the Ministry of Industry and Trade, import turnovers of non-essential goods reached nearly $1.1 billion in the first two months of 2011, accounting for 7.4 percent of the total import turnover and up 24.8 percent year-on-year.
As many as 10,600 autos worth $180 million and over 266,000 mobile phones worth $7 million were imported, a year-on-year rise of 177.4 percent.
The import of luxurious goods also soared sharply, with a total turnover of $3.42 million, an increase of 36.1 percent over the same period last year.
Cosmetic imports rose 111.3 percent and hair product imports jumped 69.9 percent.
The hike in import of non-essential goods has raised concerns that relevant agencies might not be strictly controlling the import of goods and people not being encouraged to use domestically made goods.
SMEs owned by large firms denied tax extension
Tuoi Tre
Small and medium-sized enterprises which are at least 50 percent owned by large companies are not eligible for the government's one-year tax deferral programme.
Besides, SMEs' income from property, financial, banking, insurance, and securities transactions and services that attract special consumption tax too will not be eligible under the programme. In other words, tax on these incomes has to be paid in the normal course.
A company is considered an SME if it has a capital of less than 10 billion dong and no more than 300 employees.
Duty on used cars may be raised
Vietbiz24
Import of used cars may be levied on progressive duty in respect to car value, in which absolute import tariff on luxuriously and super-luxuriously used vehicles will be higher than current levels, according to Ministry of Finance's proposal, VnExpress reported.
Time to apply the proposal may be May if being approved by the government.
Currently, the lines of used vehicles imported to Vietnam are subject to the absolute tariffs according to capacity of cylinder. Ministry of Finance said, the imposing triggered a paradox that the sorts of super luxury cars like Maybach or Rolls-Royce with the cylinder capacity of more than 4 litres bear the same absolute import duty as luxury vehicles namely BMW or Audi. So the agency said it is right time to re-adjust tariff benchmark so as to be matched with the present situation.
Ministry of Finance recommended two plans of amending absolute tariffs on used vehicles, including a rise in duty on vehicles with cylinder capacity of over 4 litres from $30,000 to $54,000 per unit or imposing of progressive tariff on car value.
Citing a source from the customs agency, the first plan of increasing import tariff on vehicles with the cylinder capacity of over 4 litres was not supported. It is said that applying progressive tariffs on used vehicles in line with unit value is more appropriate with practical conditions. "It is impossible to impose the same import duty on a $500,000 Maybach car and a $50,000 BMW unit", the source added.
Importers also see that a suitable change in import tariffs on vehicles should be done. However, the Ministry of Finance should offer a roadmap and a plan to amend the tariffs.
MOF proposes to remove dividend income and trading taxes, adjust income tax
Stoxplus.com
The Ministry of Finance (MoF) has proposed to the government to remove income tax on dividend payment to the shareholders and transaction tax and adjust personal income tax as well, the online newspaper Phapluat TP HCM reported on April 20.
Current tax shareholders have to pay 5 percent tax on their dividend receipt and 1 percent tax on share transferring.
The prime minister of Vietnam agreed on this proposal at the regular meeting on March, but still waiting for the approval of the 13th National Assembly on this July, MoF said.
On other important issue, MoF also asked for raising the minimum income tax level to 5.6 million dong,
MoF affirmed that the personal income tax adjustment will affect on state budget collection, by still ensure the National Assembly's task to raise state budget collection by 7-8 percent and cut recurrent expenditure by 10 percent as saying on the Resolution 11. Personal income tax collection is estimated to reach VND29 trillion this year compared with total state budget collection estimated of VND595 trillion.
The MoF's proposal appears to bring a good news to investors on Vietnam stock market.
Motorbikes to be restricted in 2020
vietnambusiness.asia
By 2020, motorbikes will make up 30-35 percent of the total vehicles of big cities in Vietnam. However, this means of transport will be gradually restricted to reduce accidents, traffic jams and air pollution, said the Ministry of Transport.
According to the Ministry's draft strategy on traffic safety by 2020 and the vision for 2030, which was released on April 15. The number of motorbikes in Vietnam will reach 36 million by 2020. At that time, this vehicle will be still popular, but the government will restrict the increase of motorbikes by administrative, economic and technical measures.
Motorbikes will be strictly controlled through the strengthening of quality control, exhaust control, improvement of technical safety, revoking out-of-date vehicles,ect In the future, motorbikes will be mainly used in the countryside, where public transport systems are absent.
The draft strategy also aims to reduce the number of deaths by traffic accidents from the current rate of 13 victims per 100,000 people, to 8 by 2020, and 4-6 by 2030, through many solutions.
Accordingly, big cities will have belt roads to reduce traffic flow inside cities. Parking lots will be re-designed and organised, using automatic fee collecting systems. Trucks will be banned from getting into downtown areas in certain time. Road networks will be developed and separated to serve cars, motorbikes, bikes, pedestrians, etc. Intersections will be reduced. Smart traffic signal systems will be used.
Dr Ly Huy Tuan, director of the Institute for Transport Development and Strategy, the agency that compiled the draft strategy, explained that "motorbikes will be restricted because most of road accidents in Vietnam are related to motorbikes." This kind of vehicle currently grows over 15 percent in Vietnam.
Representatives of provincial Departments of Transport backed the Ministry of Transport's proposals. Le Toan, deputy director of HCM City Department of Transport said that "HCM City's transport infrastructure is overloaded because personal vehicles grow over 10 percent annually, while the road system increases less than 1 percent a year."
HCM City will curb personal vehicles, collect fees automatically and increase the parking fee, especially in the downtown area, as well as registration fees of personal vehicles.
According to a representative of the Japan International Cooperation Agency (Jica), Vietnam can achieve its goal of reducing 40 percent of traffic accident cases by 2020 if it can solve two matters: the lack of knowledge on traffic safety of the people and implementing solutions comprehensively.
"Japan spent five years to comprehensively invest in traffic safety. As a result, the number of dead and injured victims of traffic accidents in 1980 dropped by a half in comparison with 1970," the Jica representative said.
The Ministry of Transport will collect opinions from related agencies before submitting the draft strategy to the government for approval.
Government earmarks $1.6b for road traffic safety
According to Dr Ly Huy Tuan, director of the Institute for Transport Development and Strategy, VND34 trillion (US$1.6 billion) would be spent on infrastructure and technologies in the next five years to ensure road-traffic safety.
The money would go into 45 priority programmes, including VND32 trillion for infrastructure works and VND500 billion for Intelligent Transportation Systems (ITS) for traffic control.
Dr Tuan said the goals were to reduce accidents and socio-economic losses, and also create a healthy living environment.
The strategies will focus on developing infrastructure, improving traffic safety assessment systems, rebuilding accident-prone road sections, and road maintenance.
In a report, the World Health Organization blames the relentless increase in accidents in Vietnam on the boom in motorised means of land transport, rapid urban development, and inadequate infrastructure.
Minister of Transport Ho Nghia Dung said poor infrastructure and transport facilities and lack of awareness of road rules were the main causes of the increasing occurrence of accidents. "Ensuring traffic safety is an urgent task for society now," he said.
The transportation strategies indicate the government's determination to reduce accidents by 40 percent by 2020.
For 2016-20 the allocation for the programme will be VND6.5 trillion ($310 million), including VND4.2 trillion for infrastructure and VND500 billion for ITS.
Tariffs may rise on some imports
VNS
The Ministry of Finance has proposed raising taxes on imports it does not want to encourage.
Under Circular No4388/BTC-CST, the items targeted are mainly consumer goods and machinery and equipment mainly for personal use, such as food, clothing, footwear, garments, iron products, steel, fans, washing machines, fax machines, printers, sewing machines, computers, mobile phones and cars.
Finance deputy minister Do Hoang Anh Tuan said the move was aimed at meeting government targets to curb inflation and stabilise the country's economy.
Tuan said that the finance ministry had scrutinised import tariffs and found it could only impose extra tax on goods whose current charges were lower than the ceiling rates allowed by the World Trade Organisation (WTO).
Therefore, Tuan said, the ministry proposed to increase import tax only on items whose tariffs were more than 4 percent lower than these ceiling rates.
New decree on labelling to promote energy conservation
The Government issued Decree No 21/2011/ND-CP on March 29 requiring producers and importers to affix equipment and vehicles with energy labels pursuant to the Law on Energy Conservation. The regulation, effective on May 15, provides for two types of energy labels: comparative labels, which provide information on energy consumption, efficiency, and other information to help consumers select energy-saving equipment and vehicles; and certification labels, which certify equipment and vehicles which have the highest energy efficiency compared to those of the same type.
Producers and importers must register for certification to affix energy labels within 60 working days of the effective date of the regulation.
The decree also requires major energy users to apply energy management systems under which they must promulgate energy efficiency and conservation policies and targets; conduct energy audits; and assign staff and propose managerial and technological solutions to promote energy efficiency and conservation.
Major energy users are defined as industrial or agricultural production establishments or transportation units which consume an annual energy volume of 1,000 tonnes of oil equivalent or more, as well as buildings; educational, healthcare, entertainment and sports establishments; hotels; supermarkets; restaurants; and shops with an annual energy volume of 500 tonnes of oil equivalent or more. The decree supersedes Decree No 102/2003/ND-CP of September 2003.
Rules amended for BOT, BTO and BT investment projects
The Government issued Decree No 24/2011/ND-CP on April 5, amending Decree No 108/2009/ND-CP governing investment projects developed under Build-Operate-Transfer (BOT), Build-Transfer-Operate (BTO), or Build-Transfer (BT) contracts. Under the new decree, health, education, cultural and sport infrastructure projects, as well as head offices of State entities have been added to the list of projects encouraged to register under one of these investment forms. In addition, a feasibility report can now replace a formal appraisal and evaluation of a project proposal. The new decree takes effect on May 20.
Contractors forced to register imported equipment, materials
Beginning May 15, Ministry of Industry and Trade's Circular No 15/2011/TT-BCT will require licensed foreign contractors to register lists of equipment and materials to be imported for re-export or for use in construction works in Viet Nam. The type, quantity and origin of imported equipment and materials must be in accordance with contracts.
Lists must be registered annually or for the entire project duration. Upon completion of work, foreign contractors will make a final settlement for temporarily imported or re-exported equipment and materials on registered lists. Foreign contractors must re-export, sell or destroy all unused equipment or materials after the final settlement.
The new circular supersedes Decision No 3806/QD-BCT of July 29, 2009.
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Oliver Massmann
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Thursday 28 April 2011
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