Imported cars to cost more after tax changes

Imported cars are expected to become more expensive by around 5 percent if the finance ministry's draft plan to adjust the calculation of special consumption tax on imported automobiles is approved.

Under the current regulations, the special consumption tax on imported automobiles is calculated on their cost, insurance, and freight value plus current import tariff.

However, the draft plan suggests that the special consumption tax on imported cars with less than 24 seats will be calculated on the basis of the current special consumption tax plus the domestic sale fee of importers. The domestic sale fee should be calculated on the basis of fees paid for services such as packing, managing, advertising, displaying, transporting, and the warranty plus interest of tax payers.

The domestic sale fee will be levied on importers when cars are sold.

The new calculation method is expected to cause an estimated 5-per-cent increase in the prices of imported cars.

According to the ministry, in comparison with locally-assembled vehicles, the current calculation of the special consumption tax on imported cars will create more competitive advantages for imported products in terms of prices.

It further said that the Vietnam Association of Automobile Manufacturers and many local businesses have complained that the current calculation of special consumption tax on imported cars has been unfair, particularly in the context of Vietnam's international commitment to cut import tariff on automobiles from ASEAN countries to zero percent by 2018.

Many local automobile importers fear that the ministry's proposal will create difficulties for them and will surely push car prices higher.

They noted that importers will have to go through more procedures to pay tax. They will have to pay the special consumption tax, which will be calculated after they complete all car import procedures, and then pay the domestic sale fee after their cars are sold.

They added that the new method will also force businesses to restructure their operations, from transporting, marketing and even warranty services, to ensure returns.

Meanwhile, the ministry has invited businesses, importers, and associations to give their opinion on the draft plan. The deadline to send their opinions to the ministry is May 20.

The draft plan will be submitted to the Prime Minister for approval in June; if approved, it will take effect from January 1, 2016.

From1998 till date, the special consumption tax on automobiles has been revised four times in keeping with the trend of regular reductions. Earlier in 2009, the tax was levied, based on the number of seats in cars. From 2009 till date, the tax has been calculated on the cylinder capacity of cars.

From 1999 to 2003, a sedan with five seats or lower was taxed 100 percent of the car's value, while cars with six to 15 seats had to pay 60 percent of their value.

From 2004 to 2005, tax on a sedan with five seats or lower was reduced to 80 percent of their value, while cars with six to 15 seats had to pay 50 percent.

From 2006 to March 31, 2009, a sedan with five seats or lower received a tax cut to 50 percent, while cars with six to 15 seats were asked to pay 30 percent of their value.

From April 1, 2009, till date, 45 percent, 50 percent and 60 percent as taxes have been levied on cars that have nine seats and lower, with a cylinder capacity of below two litres, between two and three litres, and more than three litres, respectively.

Central Highlands secures over 30 investment projects

More than 30 socio-economic investment projects will be carried out in the Central Highlands provinces of Dak Lak, Dak Nong, Gia Lai, Kon Tum, and Lam Dong, under commitments made a conference held in Lam Dong on May 17.

The third conference on investment promotion and social welfare in the Central Highlands was jointly held by the Steering Committee for the Central Highlands, the State Bank of Vietnam, and the Lam Dong provincial People’s Committee.

Head of the steering committee Tran Dai Quang said despite vast potential for development, the Central Highlands so far has remained underdeveloped, accounting for only about 4.5 percent of the total country’s gross domestic product (GDP).

The region needs huge investments for development, which the State budget only cannot meet, he said, emphasing that capital should be mobilised from both domestic and foreign sources such as official development assistance (ODA) and foreign direct investment (FDI).

Apart from this, the Central Highlands itself should continue to reform policies and administrative procedures, create favourable investment environment, and improve infrastructure and human resources in order to attract investors, he suggested.

At the conference, five Central Highlands provinces granted investment licences to 13 outstanding projects worth over 16.6 trillion VND (768 million USD), mainly in agriculture, animal husbandry, serves and energy.

Kon Tum attracted the biggest share of investment with 7.7 trillion VND (over 357 million USD) while Gia Lai welcomed the largest number of projects.

At the same time, 15 cooperative projects and three MoUs were signed in hydroelectricity, transports, and agriculture production, with commercial banks pledging to lend 15 trillion VND ( 694 million USD) to their implementation.

According to the Ministry of Planning and Investment, between 2011 and 2015, the Central Highlands received over 30 trillion VND (1.4 billion USD) from the State budget and Government bonds to upgrade highways; and mobilised over 28.4 trillion VND (1.3 million USD) to improve roads in the respective localities.

In the 2011-2014 period, the region lured 410 million USD in ODA.

From 2011 to April 2015, it secured 38 FDI projects worth 122 million USD. Lam Dong led localities with 29 projects worth nearly 75 million USD, accounting for 61.5 percent of the region’s total investment.

Song Hau 1 Thermal Power Plant gets off ground

The construction of the Song Hau 1 Thermal Power Plant started on May 16 with a ground-breaking ceremony in Chau Thanh district, the Mekong Delta province of Hau Giang launched by Prime Minister Nguyen Tan Dung.

The plant, spanning an area of 115 hectares, has a total investment of 43 trillion VND (1.98 billion USD) with two turbines producing a combined capacity of 1,200 MW.

Addressing the event, Prime Minister Nguyen Tan Dung said the Song Hau 1 Power Plant is important to ensuring national energy security, thus asking relevant parties to ensure the quality and deadline of the project.

A special mechanism was adopted for the construction of the plant to ensure its operation begins in 2019, the PM stressed.

Song Hau 1, forming part of the Song Hau Electricity Centre, will supply 7.8 billion kWh to the national grid and generate jobs for hundreds of local residents.

It will realise the national oil and gas sector’s power development strategy to 2030.

HCM City creditors see Q1 loan growth

Total outstanding loans of credit institutions in Ho Chi Minh City grew 4.14 percent in this year's first four months, with 80 percent of the lending extended for production and business activities.

The deputy director of the State Bank of Vietnam's local branch, Nguyen Hoang Minh, told a recent meeting with municipal National Assembly delegations that improved economic growth and business confidence had positively impacted banking operations.

He said investments by enterprises tended to increase, which was evident in the greater proportion and higher growth of medium – to long-term loans compared with short-term credit. In four months, medium – to long-term loans expanded 7.66 percent and accounted for 53.5 percent of all loans, while short-term loans rose by 0.36 percent and comprised 46.5 percent of the total loans.

Lending reached some 655 trillion VND (31.19 billion USD) for prioritised sectors, which include agriculture and the development of rural areas, exports, small and medium-sized enterprises, and high-tech firms and support industries.

Through a special city programme that connects banks and businesses, nearly 1,000 firms obtained loans worth some 31.28 trillion VND (1.49 billion USD) with short-term interest rates of less than 7 percent per year.

Minh said medium- to long-term interest rates had fallen by 0.6 to 0.9 percentage points at the end of April, compared with end-2014, supporting enterprises and the economy. The monetary market and exchange rates also showed stable development, he added.

Vinh Phuc: investment promotion yields progress

Promotion and supportive investment initiatives in the northern province of Vinh Phuc have yielded significant progress, heard a review conference in the province in mid-May.

In 2014, the province’s competitiveness index (PCI) ranked sixth among 63 provinces and cities nationwide, climbing 20 spots against previous year.

By end of April 2015, the province boasted 193 foreign direct investment projects with total registered investment capital of over 3.23 billion USD and 586 domestic-invested projects with combined registered investment capital of nearly 44 trillion VND (2 billion USD).

The province has attracted about 350 million USD in official development assistance from international funds and foreign countries including the World Bank, Asia Development Bank, Japan and Hungary since 2013.

Delegations at the event highlighted challenges hindering investors from operating business in the province such as higher land rent, limited social infrastructure and services and overlapping and ineffective State management of foreign-invested enterprises.

Chairman of the provincial People’s Committee Phung Quang Hung said local governments should speed up overall administrative reform and create favourable conditions for enterprises to operate business effectively as well as strengthen manpower training to meet labour demand.

Cinnamon production brings prosperity to Quang Ngai

A newly established plant producing cinnamon products has enabled thousands of locals in Tra Bong district, Quang Ngai province to make a living from their popular plants, revealed Tra Bong People’s Committee Chairman Nguyen Xuan Bac.

The Quang Ngai Cinnamon Essential Oil JSC funded the facility, costing more than 44 billion VND (2 million USD), and plans to spend some additional 20 billion VND (930,232 USD) to improve local plantations.

The factory is capable of producing 80 tonnes of oil each year, requiring 10,000 tonnes of materials including the tree’s leaves and twigs. The materials are purchased from farmers through the company’s agencies for 2,800 VND (0.13 USD) per kilogramme.

After the oil-extracting process, discarded matter will be used to make organic fertilizers and incense powder, preventing unnecessary waste.

Quang Ngai ranks second nationwide in cinnamon plantation area with 7,000 hectares. If the trend of plantation expansion by 80-100 hectares each year continues, it will reach approximately 16,000 hectares in 2020.

Vietnam shares experience in promoting women’s engagement in economy

The Vietnamese delegation actively joined discussions and shared experience in promoting women’s engagement in building a sustainable economy at sessions on the last day of the 25th Global Summit of Women in Brazil.

During business-themed discussions on May 16, Vice President Nguyen Thi Doan and Vietnamese delegates gave opinions on how to build strategies to improve female presence in managerial and leading positions, and policies designed for female workers.

Businesswomen in the delegation talked about challenges they faced in business start-up and expansion and how they contributed to their companies’ activities.

The summit concluded on late May 16, with attendees agreeing to boost cooperation to encourage women’s active contributions to business and social activities.

The 26 th Global Summit of Women is scheduled to be held in Warsaw, Poland, next year.

Following the summit, President Nguyen Thi Doan and the Vietnamese delegation are to pay an official visit to Bolivia on May 18-19.

Stock market role in the economy to be enhanced

The stock market development has contributed to accelerating the equitisation of State-owned enterprise and public investment restructure, but it can still play a greater role, heard a conference on stock market roles in Vietnam held in Ho Chi Minh City on May 15.

Fifteen years since its establishment, the Ho Chi Minh Stock Exchange (HOSE) now has over 300 listed companies have been listed on the HOSE with the total market capitalisation estimated at around 1,000 trillion VND (46.5 billion USD), representing 25 percent of the GDP. In 2014, HOSE reported an average 2.1 trillion VND worth of transactions each day. On average, listed firms have doubled their chartered capital.

However, some businesses at the event agreed that there are still limitations in the Vietnamese stock market, which prevent it from leveraging its roles in the economy to the fullest extent.

They said that banks and financial institutes still play a key role in mobilising capital for the economy, while the role of the stock market as a crucial source converging mid- and long-term funds for economic development is still neglected. In addition, the market has yet to carry out its role in connecting capital supply and demand as well as providing various investment opportunities.

Nguyen Duy Hung, chairman of Saigon Securities Inc., said listed companies as well as brokerages have to ensure the transparency of the information they disclose and its accuracy to protect investors.

Nguyen Thanh Long, vice chairman of the State Securities Committee, said listed firms need to abide by international accounting and auditing criteria to provide accurate information to investors.

Vietnam needed more institutional investors since they do not speculate and invest in value and are capable of guiding the market, he said.

Vu Viet Ngoan, chairman of the National Financial Supervisory Committee, said investor protection is one of the key factors in the healthy growth of the market as are policies related to corporate bankruptcy, access to capital, and implementation of the law.

The seminar, organised by HOSE and Saigon Securities Inc., is among programmes to celebrate the 15th anniversary of Vietnam's stock market, which began with the opening of the HCM Stock Exchange, formerly the HCM Securities Trading Center, in July 2000.

Long Thanh airport, long-term strategic issue

The Civil Aviation Authority of Vietnam held a seminar in HCM City on May 14 to discuss the issues facing the proposed 8 billion USD Long Thanh International Airport near the city.

Lai Xuan Thanh, head of the CAAV, said building an aviation hub or entrepot was a long-term strategic mission of his agency.

The airport would also help resolve the issues facing Tan Son Nhat International Airport like noise and air pollution and threats to the safety of densely populated urban areas nearby.

"In future Tan Son Nhat will no longer meet the demands of airlines flying to Vietnam."

Tran Dinh Thien, the director of the Vietnam Economic Research Institute and an enthusiastic backer of the project, said since the airport was closely linked with the country's future, there should be a vision for a longer term than just five or 10 years.

Even if Tan Son Nhat was expanded to double its current size, it would remain a traditional terminal, and in any case, due to its urban location, expansion was impossible, he said.

"The regional hub cannot always be Singapore. If we want to compete with Singapore and Thailand, we should have a different view on Long Thanh International Terminal. It should not only be a place for transporting passengers; it is also a transit point for cargo."

Le Manh Hung, General Director of the Airports Corporation of Vietnam, said Tan Son Nhat had a capacity of 25 million passengers a year, and would be overloaded by 2017.

To expand its capacity to 40-50 million, an additional 641ha of land would be needed in Tan Binh, Go Vap, and Phu Nhuan District and 500,000 people would have to be relocated, he said.

"The location selected for building the international airport has adequate conditions for establishing a transit international terminal that will be competitive in the region."

Dr Tran Dinh Ba, who had proposed the much-debated straight-line air route between HCM City and Hanoi, expressed the fear that the new airport's 18.7 billion USD cost was too high for the country.

Deputy Minister of Transport Pham Quy Tieu said it was imperative to quickly build Long Thanh airport, adding it would give a boost to the country's economic development.

Long Thanh, approved by the Government in 2011, is scheduled to open in 2020 with a capacity of 25 million passengers a year, according to authorities in Dong Nai province, where the airport is to be built.

To be built in three phases, it is expected to be fully completed by 2035 with a capacity of 100 million passengers.

Construction is scheduled to begin this year.

Dai Lai resort puts golf courses into operation

The Hong Hac Dai Lai JSC on May 16 officially put into use a 9-standard-hole golf course and an 18-hole miniature putting course in the five-star Flamingo Dai Lai Resort in the northern Vinh Phuc province, with the aim of providing customers with professional experience.

According to the company’s General Director Le Thi Van Anh, the inauguration of the two golf courses is a part of the company’s plan to develop the resort into the largest entertainment complex in Vietnam.

The company will continue expanding and perfecting services to better meet consumers’ demand, she added.

On this occasion, the Flamingo Golf Open 2015 was organised at the resort.

The Flamingo Dai Lai Resort was listed in the Top 10 Hotels and Resorts of 2014 on December 24 by DESIGNBOOM, the world’s first and most popular digital architecture and design magazine.

The resort is described as a residential retreat for city dwellers to enjoy their weekends in a more natural environment with cultural and sports events as well as high class services.

It also won a gold medal and the Building of the Year title at the Architects Regional Council Asia (ARCASIA) Awards, the FuturArc Green Leadership Prize, the US’s Green Good Design and International Architecture Awards for the two bamboo structures within it, Dai Lai conference hall and Bamboo Wing, both designed by Vietnamese architect Vo Trong Nghia.

Located one hour away from Hanoi, Flamingo Dai Lai Resort covers an area of 123ha in the middle of the forests between Dai Lai Lake and surrounding mountains.

Advanced aquaculture areas formed in Vinh Long

Reforms in the aquaculture sector in the Mekong Delta province of Vinh Long have resulted inseveral advanced aquatic farming areas with high-economic value, said Lieu Cam Hien, Vice Director of the provincial Department of Agriculture and Rural Development.

Vinh Long is currently home to nearly 95 hectares of tra fish farms certified with VietGAP, GlobalGAP/ASCC/BMP standards and two GlobalGAP-standard breeding production facilities covering 6.3 hectares.

In a bid to increase value and competitive capability of the local aquatic sector, the province has carried out a project on developing large-scale tra fish farms with advanced feeding systems in line with the GlobalGAP/ASCC/BMP standards from 2011-2015. As a result, two farms with a combined 10ha of fish farming ponds were awarded with GlobalGAP certificates in February this year.

However, reforms in the sector have been slower than expectation due to difficulties in connecting processing enterprises and local farmers. It is also difficult for the famers to access preferential capital, a barrier to aquaculture restructuring.

This year, the province aims to have 100 percent of tra fish farming areas adopt internationally recognised breeding practice. It is also developing collectives and groups which supply healthy fish fry, fish food, techniques and environmental management methods for the farmers.

In addition, it is consolidating the role of industry associations and organisations in linking production and consumption, safeguarding benefits for both sellers and buyers and increasing the efficiency of the aquaculture sector reforms.

Vietnam struggles to promote green consumption

Vietnam has recognised the importance of environmentally-friendly lifestyles in achieving its goal of sustainable development for a number of years, yet continues to face challenges in increasing green consumption.

There has been a global shift in consumption behaviours towards a greener lifestyle in which consumers purchase environmentally friendly products that do not negatively affect human health or threaten natural ecosystems.

The socio-economic development strategy of Vietnam between 2011 and 2020 stressed the urgent need to change consumption patterns towards sustainability to protect and improve environment quality and actively address climate change.

The country has also adopted a national strategy for green growth for the period from 2011 to 2020 with a vision to 2050, which encourages the development of clean production to enhance the efficient use of natural resources while reducing emission and pollution as well as a civilised, harmonious and naturally-friendly culture in consumption. The strategy forms a strong legal foundation for related state policies and campaign and action plans at the local level.

Ho Chi Minh City is an example of successfully organising annual green consumption campaigns since 2010. Over the past four years, the city has attracted over 30,000 volunteers and 3.7 million local residents to take part in its campaign. Green product sales rose by 40-60 percent during the campaign months.

Since the per capita GDP of Vietnam has increased from 699.5 USD in 2005 to 1,960 USD in 2014, there has been an increasing demand in the country for green products that meet safety standards with environmentally friendly features.

Yet plenty of challenges remain, including non-green government procurement of goods and services. The government has not created policies to encourage the purchase of recyclable or environmentally friendly products for its own uses.

Additionally, most local businesses prefer old-fashioned and energy-intensive machines and technologies for their low cost despite the fact that they have negative impacts on environment.

Others challenges include the overuse of coal, oil and gasoline rather than green sources of energy, such as solar energy, wind power and biogas, and the popularity of extravagant lifestyles which promote the purchasing of imported luxurious commodities.

Experts urged the Government to build a legal framework on green consumption along with incentives for makers and providers of green products and services. More communications and promotion campaigns should be organised to improve consumers’ awareness and help them build good buying habits.-

Muong Thanh Group invests two projects in Quang Ngai

People’s Committee of Quang Ngai province yesterday announced that the province approved the Muong Thanh Hotel Group's project of building a four-star hotel in Ly Son island district, a trade center and a five-star hotel in Quang Ngai city.

Firstly, the Muong Thanh Group will invest around VND 250 billion to build a four- star hotel with its scale of 5- 7 floors, locating on Ly Son island district.

The hotel includes around 80- 120 rooms, a luxury restaurant system, a 700 seat- conference hall, swimming pools, area of massage and spa, sport area, outdoor tourist park and others.

Next, the group will implement a project of building a trade center and a five- star hotel in Le Hong Phong ward, Quang Ngai city, covering an area of 3, 2- 3, 5 hectares. The hotel will be desinged 20 floors with a total capital of VND 450 billion.

Vietnam and China work to boost Bac Giang lychee exports

Officials of Vietnam’s Lao Cai and Bac Giang provinces and China’s Hekou County met on May 14 to discuss measures to facilitate the export of Bac Giang-produced lychees into the Chinese market.

Bac Giang provincial leaders said they would instruct local authorities in lychee growing areas to create favourable conditions for traders to purchase and transport fresh lychees in a safe and timely manner.

Its Vice Chairman Bui Van Hanh said the province’s lychee output in 2015 was estimated at 160,000 tonnes with around 25,000 tonnes to be collected from the latter half of May to early June.

The remainder will be gathered during the main harvest which usually lasts for one month until early July.

Meanwhile Lao Cai authorities said they will deploy more staff from relevant agencies such as customs, border guard, plant quarantine and public security, and increase their working hours at Kim Thanh and Lao Cai checkpoints to quickly clear lychee shipments to China.

Deputy head of China’s Hekou County Li Xingkun said Chinese consumers highly valued the quality of Bac Giang lychees for its sweetness, scent, safety and attractive appearance.

He pledged to simplify import procedures and improve logistics so that fresh lychees can be transported to China in a safe and convenient way, adding that Hekou personnel can work overtime to clear imported Vietnamese lychees.

Last year, 40,000 tonnes of Bac Giang lychees were shipped to China, accounting for 40% of the province’s lychee exports.

Exports to India log biggest rise in years

A surge in exports with higher added value spurred Vietnamese exports to India to their biggest quarterly increase in years the Ministry of Industry and Trade (MoIT) reported in recently released statistics.

Shipments by exporters from Vietnam to India in the three months leading up to April surged 30.52% on-year to US$644.46, propelled by mobile telephones and components skyrocketing 41.37% to US$258.35 million.

All told, mobile telephones and components accounted for 40% of the total exports trailed by computers, electronics and components at US$41.75 million, up modestly 1.31% on year.

Equipment, machines and tools ranked third on the list of exports for the January-March period at US$36.73 million, free falling down 34.25% compared to last year’s corresponding period.

Other items that saw robust growth during the period included metal (up 172.97%), fibres (up 47.92%), animal food and material (up 69.97%), ceramics (up 239.18%) and cashew nuts (up 299.59%).

Speeding up restructuring of banking system

The banking system restructuring has resulted in positive changes, the most notable involving bad debts and interest rates.

This year, the sector has built on these achievements to curb inflation and stabilize the macro-economy.

The State Bank of Vietnam recently coordinated monetary policies focused on interest rates to ensure reasonable credit growth and liquidity for credit institutions. And a project to restructure and settle bad debts continues as planned.

These actions have helped curb inflation and stabilize the macro-economy. Last year the central bank cut its interest rate slightly to accord with real inflation, easing difficulties for businesses.

The annual interest rate on deposits has dropped 1.5% to 2%, while the lending interest rate has been lowered about 2%.

The interest rate policy has helped credit institutions mobilize longer-term and more stable capital sources and create a more efficient allocation of capital in the economy.

SBV Deputy Governor Nguyen Thi Hong said all monetary criteria including the total amount of money, credit growth, the continued decline of interest rates, and a rise in foreign currency reserves have met the direction set in the monetary policy, leading to economic growth of 5.93%, higher than the set target of 5.8%. This is an important reason for Vietnam to receive higher and higher levels of trust by international rating agencies.

The central bank has taken over several struggling banks and state assets and clients’ rights have been secured. Its efforts have gradually reduced cross-holding of banks towards international standards.

As a result, international credit rating agencies like Moody’s and Fitch have acknowledged Vietnam’s efforts to stabilize the macro economy and improve the quality, safety, and transparency of its commercial banks.

Nguyen Quoc Hung, President of the members’ council of the Vietnam Asset Management Company (VAMC), said “our ultimate mission is to buy bad debts at any costbut and in the most effective way. We’ll restructure debts for enterprises and credit organizations and settle the debts pursuant to the VAMC’s purpose which is to restructure businesses.”

This year the debt restructuring and settlement remain one of the key missions of the banking sector.

SBV Governor Nguyen Van Binh said under the targets set by the National Assembly and government, economic and credit growth are likely to be higher, leading to greater demand on capital and a greater pressure on interest rates. To deal with the situation, the State Bank of Vietnam has specified its management of monetary policy and money supply flexibly to curb inflation and stabilize the macro economy.

Governor Binh noted that domestic credit institutions have now entered the second phase of the rearrangement and restructuring process, adding that the central bank will create optimal conditions for the Merger and Acquisition of credit organizations.

New season brings good news for Vietnam’s lychee exports

This year’s lychee season for Vietnam growers and processors promises to be more remunerative than previous seasons, according to the Ministry of Agriculture and Rural Development (MARD).

This time around, the harvest from mid-May to mid-July is expected to yield more than 200,000 tonnes of fresh lychee, slightly outpacing last year’s harvest, a representative from MARD unveiled.

Of which, about 60%, or 120,000 tonnes, will be consumed domestically. The remaining 80,000 tonnes will be dried or processed with the pulp frozen and shipped to foreign markets.

The northern provinces and larger cities of Hanoi, Thua Thien-Hue, Danang and HCM City have historically comprised 53% of domestic demand with the remaining southern provinces account for the 43% balance.

China is forecast to remain the largest export market and account for 90% of total export volume, while the Laos, Cambodia, Thailand and Singapore markets are expected to remain negligible.

However this season Vietnam can now export fresh lychees to the US, Australia, Japan, and the Republic of Korea (RoK) and pilot programmes are underway to test the markets.

The Ministry of Industry and Trade (MoIT) in turn has said the quality of Vietnamese lychee has been gradually improving, while prices have been stable. This year’s sales price of lychee in both domestic and foreign markets is on par with last year.

The MoIT and the MARD have been working hand in hand with with domestic growers to insure cultivation methods are in accordance with GlobalGAP and VietGAP modern food quality and hygiene standards.

They have also been engaged with processors over the past year in developing much improved post-processing preservation technology because many markets such as Japan are located far from Vietnam, requiring greater transportation time.

In addition, the two ministries have worked closely with the Bac Giang provincial People’s Committee on solutions to increase lychee consumption in the peak season.

Lastly, the MoIT will meet with Vietnamese and Chinese enterprises in the northern border provinces of Lao Cai and Lang Son in late May in the hope of helping lychee access overseas markets through border gates.

The MoIT anticipates that this year lychee overall consumption will be much improved and more profitable in comparison to last year.

Car buyers continue preferring imported vehicles

Vietnamese people have shown that they favor imported cars over locally assembled vehicles, as the debate about whether the local automobile industry can withstand a possible collapse after 2018 has not ended.

Last month Mercedes-Maybach, the re-launched luxury brand from Daimler AG, reported that Vietnamese customers have ordered ten units of its luxury Mercedes-Maybach S600 model, which cost VND9.6 billion (US$451,850) each.

Fifty Mercedes-Maybach S600 cars will be produced for the global market in 2015, the German carmaker said.

Official figures have also indicated that sales of imported cars in the first four months of this year were much better than expected, with 34,000 units worth some $883 million sold, an increase of 125.4% and 188.8% in volume and value compared to the same period last year.

According to a recent report by the General Statistics Office (GSO), about 9,000 automobiles, or completely built units (CBUs), were imported into the country last month with a turnover of US$294 million.

The all-new Mercedes-Maybach S600 attracts interest after its unveiling at the LA Auto Show's press and trade day in Los Angeles Nov. 19, 2014. Vietnamese customers have ordered ten units of Mercedes-Maybach S600 model, which cost VND9.6 billion (US$451,850) each, among 50 cars to be produced for the global market in 2015.

Compared with the previous month, the importation of CBUs fell by 11% in volume, but rose 7.4% in value.

According to a recently released report of the Vietnam Automobile Manufacturers' Association (VAMA), total sales of personal cars in Vietnam reached 9,423 units in April, up 0.1% month on month.

The number of CBUs imported by VAMA members topped 4,200 vehicles, up 19% from the previous month.

While sales of locally assembled vehicles during the first four months rose by 58%, the sales of imported cars surged 73% compared to the same period last year, according to the VAMA.

The Southeast Asian country last year spent US$1.57 billion importing 72,000 vehicles, rising 103.8% and 117.3% in volume and value compared to 2013, respectively, the highest rates ever, the GSO said in its report in January.

As sales of domestically assembled automobiles, or CKDs, grew more slowly than the sales of CBUs, this reflects the trend that Vietnamese people continued to turn away from the former.

In late April, local experts raised concerns about the survival of the automobile industry following Japanese carmaker Toyota’s threat to gradually pull out of Vietnam if the government fails to provide it with financial and taxation support in the next three years.

By 2018, as soon as the import taxes slapped on many kinds of personal cars imported from ASEAN countries sharply drop or are exempted altogether as promised by Vietnam when joining the ASEAN Economic Community, the prices of car imports will become cheaper than their locally assembled counterparts.

The ASEAN members include Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Cambodia, Laos, Myanmar, and Vietnam.

Toyota said the price of CKDs, as calculated by the Japanese automobile manufacturer, may be 15%-20% more expensive than CBUs by then.

Many luxury car brands, including Lamborghini, Jaguar, Bentley and Rolls-Royce, have established branches in Vietnam in recent years to offer the rich a chance to own officially distributed cars and have their vehicles maintained properly via licensed service providers, which perilously costs them much more.

Vietnam is projected to stand third in the group of countries with the fastest growth rate of affluent population globally, or New Wealth Builders (NWBs), which are households with financial assets of US$100,000 to US$2 million, in the 2014-2020 period, according to a report released by the Economist Intelligence Unit under The Economist magazine on March 23.

During the period, the Southeast Asian country will have about 347,000 NWBs, representing a 34.9% compound annual growth rate, standing behind only India (47.4%) and Indonesia (41.2%), said the report.

Total assets of the Vietnamese group will top US$68.1 million, or about US$196,500 per household.

Meanwhile, according to the latest Wealth Report 2015 unveiled by British property consultant firm Knight Frank in March, Vietnam is expected to have around 300 super-rich people, or ultra-high net-worth individuals (UHNWIs), by 2024.

The Southeast Asian country will also see the fastest growth rate in the number of UHNWIs at 159 percent in the 2014-2024 period, followed by Indonesia (132%) and the Ivory Coast (119%), the report said.

In 2014, Vietnam had 116 UHNWIs, up 6% from 2013 and 231% from 2004.

As defined by Knight Frank in the report, UHNWIs are those with assets of US$30 million or more.

The Establishment Post news website quoted a report from Euromonitor International as stating that more than 100,000 Vietnamese in 2013 had a disposable income of more than US$75,000 per annum.

A survey conducted by Nielsen concluded that Vietnam ranks third in the world in terms of fondness for branded goods, only surpassed by China and India.

Moreover, 56% of the participants responded that they are willing to pay more for designer products than for less known brands with the same functionality, the Establishment Post reported.

Workshop on improving export business awareness in trade remedies

Enterprises should grasp and effectively apply trade remedy measures to develop sustainably and overcome economic integration challenges, trade experts said at a workshop themed “Vietnam in non-border global trade” held on May 15.

Trade remedy lawsuits—anti-dumping, anti-subsidy, and safeguard measures—usually take a long time, at least two years, to solve, and they usually result in serious damage to export businesses’ trademarks and finances, said Pham Chau Giang, an official from the Vietnam Competition Authority under the Ministry of Industry and Trade.

According to Director of the Ho Chi Minh City branch of the Vietnam Chamber of Commerce and Industry Vo Tan Thanh, free trade agreements (FTA) that Vietnam has negotiated and signed with many partners are expected to bring new opportunities along with increasing numbers of trade remedy cases to domestic enterprises.

As a result, Vietnamese export businesses need a comprehensive overview of the signed FTAs and issues related to trade between the country and its partners, said Wong Chian Voen, Consulting Director of Mayer Brown company from Singapore.

She added that businesses should actively prepare necessary strategies and policies to minimise the possibility of trade remedy cases.

Steel imports from China shoot up

Chinese steel landing in Vietnam in the January-April period has seen a yearly increase of 135.4%, which is in turn having an enormous impact on Vietnamese steel sector, said Nguyen Van Sua, Vice Chairman of the Vietnam Steel Association (VSA).

According to a VSA report, Vietnam imported 292,000 tonnes of steel billets in the first four months of this year, mostly from China. It said that the number is forecasted to increase to a million tonnes.

Domestic steel billet capacity reached 11 million tonnes, yet demands for these commodities only stands at 6.5 million tonnes this year.

The VSA leader said that there has also been a significant escalation in the amount of imported Chinese so-called alloy steel products, including steel rod, steel wire and galvanised steel, exports of which are tax free from China.

Meanwhile, there is surplus of those products from Vietnamese enterprises.

Sua highlighted that steel enterprises need to implement reforms while making efforts to increase product competitiveness as there is currently no practical solution to address this issue.

In a bid to control the import of alloy steel from China, more detailed standards for steel products are required to reduce trade fraud, he added.

Vietnam farm products introduced in Indonesia

A forum to introduce Vietnamese agricultural products and promote trade between the country and Indonesia was held by the Vietnamese Embassy in Indonesia on May 15 in Jakarta.

At the event, Vietnamese Ambassador to Indonesia Nguyen Xuan Thuy gave an overview of the economic cooperation between Vietnam and Indonesia in recent years with trade reaching US$5.4 billion in 2014. The two sides are striving to raise the figure to US$10 billion by 2020.

Meanwhile, Chairman of the Indonesian Chamber of Commerce and Industry (KADIN) Juan Gondokusumo pointed to the government’s policies towards small- and medium-sized enterprises, including those from agricultural and aquatic sectors.

Event participants were also introduced to Vietnam’s potential in producing and processing farm products.

Representatives from the Lotte Mart Corporation, which owns a chain of foods and shopping services in Indonesia, appreciated the quality of Vietnamese products, including rice, watermelon, lychee, dragon fruit, and other aquatic products.

Conference talks opportunities from ASEAN Community

Representatives from 22 universities in nine ASEAN countries gathered at an international conference in the central city of Da Nang on May 15 to discuss opportunities and challenges created by the formation of the ASEAN Community after 2015.

Participants highlighted a number of matters related to ASEAN Economic Community’s post-2015 vision, as well as the process and initial outcomes in the building of the association’s identity.

They talked the preparation of university-graduated human resources for the ASEAN Community, as well as the prospect of the community in the future.

The ASEAN Community is expected to make debut on December 31 this year. Currently, the grouping’s 10 members are focusing on finalising the preparations for the community.

At the same time, ASEAN leaders are working together to draw out post-2015 orientations for the community.

Belarus seeks VN business

Vietnamese and Belarusian food and agricultural enterprises gathered at a business meeting in Ha Noi on Thursday.

Co-organised by the Viet Nam Chamber of Commerce and Industry (VCCI) and the Belarusian Embassy in Viet Nam, the event sought to open opportunities for enterprises from the two countries to expand business links.

At the meeting, officials from major Belarusian enterprises expressed their hope to cooperate with, and purchase, peanuts, cashews, coffee and cacao from Viet Nam.

VCCI's Deputy Head of the International Relations Department, Nguyen Vu Kien, highlighted that Viet Nam would create the best possible conditions for business from both countries.

In return, Belarusian Ambassador to Viet Nam Sadokho Valery said economic and trade relations had not met their full potentials, though Belarus had imported several products from Viet Nam, including tea, rice, and seafood.

Belarus had strong industries, such as chemistry, petrochemistry and hi-technology, but exports to Viet Nam in those fields remained modest, he added.

Finance banks talk development

Speaking to a room full of representatives of financial institutions from across the Asia and Pacific region, Deputy Prime Minister Vu Van Ninh stressed how infrastructure development was one of Viet Nam's three strategic breakthroughs in socio-economic development.

Viet Nam Development Bank (VDB) hosted the 38th annual meeting of the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) by in Nha Trang City on Thursday.

Ninh said the meeting's theme - sustainable infrastructure: policy framework, operational best practices and challenges - was practical, given Viet Nam's current efforts to sustainable development. He stressed that the Government of Viet Nam was willing to support financial institutions interested in funding infrastructure development projects in Viet Nam.

Ninh also said that the Government was headed towards developing infrastructure that helps achieve sustainable development, which he believed would harmonise economic growth, social development and environmental protection.

In Viet Nam, many large-scale infrastructure projects like highways, airports, seaports and energy projects are underway.

ADFIAP chairman Pema Tshering, said that development finance institutions played a role in advancing sustainable infrastructure and developing innovative solutions to the region's growing infrastructure needs.

He cited ADB's estimate that energy, transportation, telecommunications, water and sanitation projects demand US$750 billion in funds a year.

Nguyen Quang Dung, VDB's chairman said that the three-day meeting which ended yesterday provided a chance for the 131 member institutions, from 45 countries and territories in the region, to exchange information and enhance co-operation in financing infrastructure projects.

VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR