HA NOI — Thousands of items imported from Australia, New Zealand and a number of ASEAN countries to Viet Nam will enjoy tax incentives under the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) in the 2010-12 period, according to the Ministry of Finance (MoF).
Under a newly-issued MoF special preferential import tariff, commodities from Australia, New Zealand, Brunei, Myanmar and Singapore shipped directly to Viet Nam will get the tax preference provided that they satisfy the MoF’s origin regulations.
AANZFTA tariffs on poultry are 5 per cent, fresh and frozen buffalo and beef 10-15 per cent; fresh and frozen pork 20-25 per cent; poultry products 10-20 per cent; fish 20-30 per cent; milk 7-25 per cent; flowers 25-35 per cent; and cigarettes 100 per cent.
Almost all imported commodities will have tariffs gradually reduced between 2010 and 2012. For example, tariffs on powdered milk without sugar and other sweeteners will be lowered from 10 per cent in 2010 and 2011 to 7 per cent in 2012.
No change on cigarettes
Tariffs on cigarettes will remain stable during the implementation of the special preferential tariffs.
The new tariffs will take effect since January 1 next year.
Australia and New Zealand have so far also cut import tariffs on 85 per cent and 96.4 per cent, respectively, of Vietnamese good items including textiles, fabric and minerals since April this year.
With last year’s trade turnover of US$5.6 billion, Viet Nam currently ranks the eighth among Australia’s trade partners in the ASEAN bloc.
Bilateral trade between the two countries has also grown 22 per cent on average for the past five years.
Two-way trade between Viet Nam and New Zealand also reached more than $300 million last year. — VNS
INVESTMENT FUNDING - Companies strengthen cooperation to set up foreign investment funds
In order to catch investment opportunities when the global economic recession is over and Vietnamese economy fully recovered, enterprises are strengthening to call capital for investment funds in Vietnamese market.
The attractive fields namely finance, retailing, education and health are also in the business strategy of foreign investors in the country. Lately, Blackhorse Asset Management Pte Ltd (BAM) planned to expand investment in Vietnam through completing the purchase of 95 percent stake of Vietnam America Vocational Training College (VATC).
Education is the basis for our investment expansion in future, Paul Rubens-director of BAM cum general director of VATC said. BAM obtained Vietnamese Ministry of Finance's license to set up HCM City representative office in 2006, including Blackhorse Enhanced Vietnam Inc (BEVI)-a fund focusing on listed and unlisted firms of Vietnam.
John Engle, managing director of BAM in a statement said that Vietnam shows the most attractive growth story in the world at this time, BEVI as an open fund will provide investment methods to global investors and help them catch opportunities in Vietnam effectively.
Through the main broker Citigroup, BEVI can pump much capital into Vietnam's listed firms. Concerning BEVI's investment expansion, John added that the fund's size is expected to surge three times to $100 million by late 2010 thus BEVI will have to double the force of research groups in HCM City.
Recently, Saigon Asset Management (SAM) and RNG-a domestic fund management firm whose majority stake is held by Refrigeration Electrical Engineering Corp (REE), cooperated to establish a foreign fund to catch investment opportunities from the economic recovery of Vietnam. This will be a member fund in US with the aim to invest in real estate projects, private companies preparing to become public companies and listed firms in Vietnam.
SAM and RNG also plan to invite a well known research and investor group to join the fund according to Vietnam's current laws. They are administrators and researchers in leading enterprises and senior experts in some fields of Vietnam and foreign countries. Now, SAM and RNG are preparing to meet investors in northern America, Europe and Asia in 2010 early and target to finish the capital mobilisation within six months. Initial size of the fund is estimated at $100 million. Also, RNG will raise capital to set up more domestic fund calling investments from Vietnamese giants. A part of capital of forthcoming domestic fund will be invested in domestic funds managed by RNG, Mai Thanh-chair cum general director of REE Corp revealed.
We believe that it is right time to apply the model in Vietnam to both bring interests to investors and upgrade Vietnam's competitive strength in the global market. Before the rapid and effective recovery of Vietnam, the combination among leading companies will bring in many attractive opportunities and help BEVI access senior experts in a lot of different sectors, Thanh added.
SAM also reported that the cash volume of its two funds VEH and VPH is 10-20 percent left. The sum of money will continue being disbursed in both stock and property markets from now to the year end if convenient.DT
BANKING CAPITAL RAISING - Banks enhance C/Ds issue
Along with the capital mobilisation from economic institutions and individuals through savings and valuable papers, Certificate of Deposit (C/D) is becoming one of favourite capital raising products of the banks.
Viet Russia Joint Venture Bank (VRB) announced it continues carrying out the long term C/D issue of dong and US dollar with an attractive and flexible interest rate mechanism. C/Ds of VRB have the face value of one million dong or $100 (as for individual customers), 50 million dong or $50,000 (as for institutions) with the terms of 13, 18, 24 and 36 months. The first year interest rate of these C/Ds is 10 percent pa for the dong and 3.5 percent pa for 13-month US dollar C/Ds.
Regarding big banks, after the success of C/D issues 1, 2 and 3, Bank for Investment and Development of Vietnam (Bidv) has announced to issue the fourth tranche C/Ds in dong at the par value of one million dong (as for individual customers) and 50 million dong (as for institutions). Especially, C/Ds of Bidv cover both short and medium terms: 4, 7 and 13 months. Customers buying C/Ds of Bidv can receive an attractive rate of over 9.3 percent pa and 9.99 percent pa at maximum.
In addition, with the method of progressive interest rate of C/Ds, the receivable interest rate will increase based on deposits. The more deposits are sent, the higher interest rate depositors can enjoy. To add the utilities for depositors who re-send money at Bidv, the principal and interests of customers will carry an interest rate higher than term deposit rates with ordinary end-period interests in the first conversion phase.
According to an investment assistance of a commercial bank, C/D is the capital mobilisation method through issuing valuable papers. C/Ds carry the longer terms compared with ordinary savings.
Through issuing C/Ds, banks will be more secured in the capital usage plan thanks to the sustainability of raised capital. However, to create flexible conditions for C/D buyers, banks should diversify terms of C/Ds, promotions in interest rates and premature payment.
For example, apart from mortgaging C/Ds as a collateral to lend bank loans, Bidv's C/D holders (if demand) can pay prematurely in line with the holding time. Or as for VRB's C/Ds, customers can be paid the whole or a part of interest rates prematurely but the payment times are not over five as for each customer. The premature payment rate of VRB's C/Ds depends on the holding time: below 6 months, C/D interest rate will be equal to demand saving rate, 6-12 months at 60 percent of receivable interests, 12-24 months at 70 percent of interests and 24-36 months at 80 percent of interests of C/Ds.
Another issuer Sacombank rules that if customers demand to use capital before it matures then they can discount or mortgage C/Ds of Sacombank to re-borrow loans. Customers are allowed to discount C/Ds of Sacombank when the holding time is over a half of C/D terms as from the issue date. In case customers want to mortgage C/Ds, the rate of lending and C/D face value will be calculated based on Sacombank's mortgage lending rate.
A financier said that by diversifying banking products to create optimum conditions for customers, the products such as C/Ds, bills of exchange, bonds will be added more utilities. By that time, customers will have more options while banks have extra effective capital mobilisation channel.TBKT
WORLDBANK ON VIETNAM - WB reassured by Vietnam steps toward stability
It is "reassuring" to see Vietnam rebalancing its economic policy toward stability, but more turbulence could be on the cards as the global economy continues to recover, the World Bank said on Thursday.
Even as monetary policy tightens, inflation is likely to see some acceleration in Vietnam in 2010, it said in a semi-annual report.
"It is reassuring to see that the government is rebalancing its objectives once again, giving more priority to stability. The decisions made between late October and early December amount to an appropriate macroeconomic framework being put in place," it said.
Vietnam's macroeconomic management for the past two years has so far been effective, despite having a relatively "heterodox and at times rudimentary nature", the Bank said in its report, entitled "Taking Stock".
Vietnam had taken a series of small steps starting in October to begin to tighten monetary policy, capped by last week's currency devaluation and interest rate hike. The government also announced this week an end to subsidies on short-term business loans, which has been a pillar of its stimulus package.
The moves were designed to address imbalances that emerged during roughly a year of expansionary monetary and fiscal policy to counter the global economic crisis, including chronic currency weakness spurred by dollar hoarding and expectations of depreciation.reuters
RESOURCES INVESTMENT RETURN - More investment opportunities for petroleum shares in 2010
According to Petroleum Securities Co (PSI), average Return on Assets (ROA) of the petroleum sector is 5.26 percent and Return on Equity (ROE) averages at 14.3 percent.
The number of petroleum companies whose listing applications are being prepared by PSI is very high. Particularly, from now to next Q1, four petroleum firms will be listed on Hochiminh Stock Exchange (STC) and eight on Hanoi Stock Exchange (HNX), six on UPCoM floor. Also, one company and one corporation in petroleum sector will carry out equitisation in 2010.
On Vietnamese stock market, the petroleum sector accounts for 11.46 percent of market capitalisation, or 66.435 trillion dong with 16 share codes, average EPS of latest 3Q of PetroVietnam's listed firms reached 1,797 dong and EPS growth is posted at 0.43 percent.
Vietnam makes up 1.52 percent of demand and 4.4 percent of oil supply output in south-eastern Asia. As forecasted by International Energy Agency (IEA), the oil consumption demand will surge again in Q4 of 2009. China and the countries outside OECD will be the major consumption markets. Till Q1 of 2010, the crude oil price attained about $77 a barrel, and by $80.33/barrel in next Q4.CAFEF
PRIVATE ENTERPRISES - New 76,000 enterprises established in Jan-Nov
Ministry of planning and investment has said that there are over 76,500 new enterprises that have registered for establishment from the beginning of 2009 up to now, an increase of 28.3 percent year-on-year.
With the current growth rate, there will be about 540,000 new enterprises in Vietnam in 2010, surpassing 8 percent against the proposed plan.
The amount of private enterprises registering for establishment has increased significantly. It's predicted that there will be 540,000 new enterprises in the period of 2006-2010, twice as much as the previous five years.
Despite the boost in term of quantity, there is a series of limitations in those new firms such as small production scale, out-of-date technologies, low capital raising capacity, and weak enterprise management qualification.vietstock
REAL ESTATE - Land values to stay mostly unchanged in HCM City
Land valuations in most parts of HCM City will remain unchanged next year as the city administration wants to create stable conditions to attract investment, officials say.
Under a new proposal the HCM City People's Committee recently submitted a proposal to the city legislature, only 17 of 2,890 streets in the city will have their land valuations adjusted for the new year.
Dong Khoi, Nguyen Hue and Le Loi streets in the city centre remain at the top with the highest land valuation of 81 million dong per square metre. Meanwhile, land in outlying Can Gio District will be valued at 1.2 million dong per square metre, the lowest rate in the city.
Land valuations set by the city government every year are mainly used for tax purposes. If passed by the city legislature, the new land valuation system will take effect on January 1, 2010.
Land valuations in some districts this year have more than doubled from 2007. The increased values have led to higher land use taxes in Phu My Hung residential area in District 7, leading to an ongoing dispute between the property developer and residents over who should pay the taxes.Thanhniennews
FOOD INDUSTRY - House Foods Corp contributes $20m in Masan Vietnam Co
House Foods Corp, a Japan-based leading group in beverage and food industry has signed cooperation contract with Masan Vietnam Joint Stock Co on December 3. Under the contract, the Japanese party would contribute total capital of $20 million under the form of purchasing 9 million shares at offered price of 40,000 dong per share, counting for 1.85 percent of the total capital in Masan Group.
Masan Group Joint Stock Co specifies in producing beverage and food, and financial services. The company has officially listed shares on the southern bourse since November 2009.TBKT
ETHANOL PLANTS - PET raises ownership cap at Bio-ethanol Dung Quat to 51pct
PetroVietnam general Services Joint Stock Corp (coded PET) has recently increased the holding rate at Bio-ethanol Dung Quat project to 51 percent. The project has total investment capital of $120 million, with three main capital contributors of PET, PVFC and Binh Son Refining and Petrochemical Co Ltd
At present, the contractors are carrying out ground clearance process. It' expected that the project will be put into operation in 2011.
The Bio-Ethanol Dung Quat Plant has designed capacity of 100 million litres of ethanol per year. The products will be mix with petroleum products under the ratio of 5-10 percent.TBKT
WATER PROJECTS - Manila Water inks deal for water projects in Vietnam
Ayala-led Manila Water Co. Inc. has signed a development agreement with REE Corp. and Mitsubishi Corp. to study private participation in Vietnam's water services projects, particularly in Ho Chi Minh city and its surrounding areas.
Manila Water said the agreement details the projects that it will pursue with its partners during the development period.
"Through this initiative, Manila Water looks forward to complementing its existing management contract to reduce leakage in HCM City as it expands its footprint in Vietnam," Manila Water told the Philippine Stock Exchange on Thursday.
REE is one of the largest mechanical and civil engineering groups incorporated in Vietnam, while Mitsubishi is one of the world's largest technological groups.
Manila Water, which distributes water in Metro Manila's east zone, reported a 14 percent growth in profits for the first 9 months of the year due to higher revenues and better operating efficiency.
The company's net income increased to P2.27 billion in January to September from last year's P1.99 billion. Revenues likewise rose 6 percent to P7.04 billion from the P6.63 billion recorded in the same period in 2008.ABS -CBS
PHARMACEUTICALS - Walmark joins Vietnam's pharmaceutical markets
The Czech-based Walmark Group, the world's large producer in functional food industry has officially confirmed its participation in Vietnamese markets under the introduction of AMV Group in the framework of 2009 Medicine and Pharmaceutical Fair held in Hanoi from December 2-5.
At the same time, Walmark Group introduced its products to be offered in Vietnamese pharmaceutical markets. Oldrich Caper, the group's manager in Asian region stated that Walmark's presence in Vietnam was considered a turning point in the group's new development step in Asia.
Walmark has nine branches in Europe so far. The group has exported its pharmaceutical products to 35 countries in all over the world. Each year, Walmark introduces to public five new products on average. There are over 200 various types of products under the trademark of Walmark in the world now.TBKT
Pharmaceutical Co reports better business results
Hau Giang Pharmaceutical Joint Stock Co (coded DHG) announced gaining combined revenue in the first nine months of this year of 1.218 trillion dong, pre-tax profit of 246 billion dong, up 116 percent against the same period of last year, fulfilling 88 percent of the adjusted year plan.
In addition, the company's profit after tax in Jan-Sep was estimated at 223 billion dong.
Previously, the company has already issued bonus shares for existing shareholders with the ratio of 3:1. In details, the ex-interest session was November 12, and registration deadline of November 16. It's expected that these newly issued shares will be officially traded on the market on December 25, 2009.
The company planned to pay 2009 dividend of 25 percent. DHG has already advanced dividend with the ratio of 15 percent for its existing shareholders previously.VNS
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