New decree looks to protect whistleblowers

The Government issued Decree No 76/2012/ND-CP on October 3, detailing a number of articles of Law on Complaints and Denunciations. The decree applies to Vietnamese citizens and foreign individuals in Viet Nam; agencies, organizations and individuals the acts of which are denounced; agencies, organisations and individuals that have jurisdiction over denunciations; and agencies, organisations and individuals involved in the settlement of denunciations.

The decree sets forth measures to protect the confidentiality of the accuser, as well as the accuser's life, health, property, honour, dignity, and position, and of the accuser's relatives. When detecting an unauthorised person collecting information about the accuser, a person in charge of denunciation settlement shall be responsible for applying measures within his or her competence, or proposing competent persons to apply, to prevent or handle the violations.

The decree also specifies that, when multiple people join in a denunciation, they must appoint a representative to present the denunciations to agencies, organisations and competent individuals.

The new decree takes effect on November 20.

Importers, exporters require certification

The Ministry of Industry and Trade issued Circular No 28/2012/TT-BCT on September 27, detailing registration of import and export rights of foreign business entities without a presence in Viet Nam, referred to in the circular as traders. Under the Circular, traders which want to conduct import or export operations in Viet Nam must be granted a certificate of registration from the Ministry of Industry and Trade.

Upon being certificated, traders are entitled to import and export items not on the official list of goods banned from import or export, or on the official list of goods temporarily suspended from import or export. They may directly perform customs procedures at customs agencies as prescribed by law and in accordance with committed schedules pursuant to international commitments.

Traders will not be entitled to establish distribution networks to purchase goods in Viet Nam for export, or to organise or participate in network to distribute goods in Viet Nam, unless Vietnamese law or international treaties to which Viet Nam subscribes provide otherwise.

Traders shall report on operations annually. The report must be translated into Vietnamese and legalised by a consular official or certified by a notarisation office in Viet Nam. The report must be submitted to the Ministry of Industry and Trade not later than March 31 of the following year. The ministry may require other reports upon five-day notice.

This circular takes effect since November 15.

‘Special control' rules eased for brokers

The Ministry of Finance issued Circular No 165/2012/TT-BTC on October 9, amending Circular No 226/2010/TT-BTC of December 2010 to provide for prudential ratios of securities companies and penalties for violations.

A remarkable element of Circular No 165 is that the period during which securities companies can be placed under control would fall from 18 months to 12 months, and that for special control from six months to four months. Special control will also be lifted whenever a firm reports a liquidity ratio of 180 per cent or more for three consecutive months. Upon the expiration of the special control period, if the securities company still fails to remedy the situation triggering special control and has accumulated losses reaching 50 per cent or more of its charter capital, its operations shall be suspended.

And other notable point of Circular 165 is that upon the expiration of the special control period, if the securities companies still fail to remedy the situation that has triggered special control or fail to guarantee payment of all debts and other financial obligations as prescribed by law, but has an accumulated loss of less than 50 per cent of charter capital, its operations will be temporarily suspended.

The new circular takes effect on December 1.

Nidec invests in Ben Tre Province

Japan-based Nidec Corporation started work on a new plant in Giao Long Industrial Park in Ben Tre province yesterday after carrying out several projects in Ho Chi Minh City, according to the Ben Tre Industrial Parks Management Authority.

Under the investment licence, Nidec Tosok Precision Vietnam, a member of Nidec Corporation, will develop a plant producing components for auto gearboxes in over four hectares in the industrial park.

The plant worth some $39.6 million is scheduled for operation next September, and all products will be exported.

This is the first investment of Nidec outside Ho Chi Minh City. Nidec has previously invested in production plants in Saigon Hi-Tech Park (SHTP) and Tan Thuan Export Processing Zone in the second city.

Specifically, in SHTP, Nidec has had five investment projects with total pledged capital of $246.5 million, with four already operational and the last one, Nidec Seimitsu Vietnam, scheduled for operation late this year.

The total export revenues of the four operational projects as of May were over $740 million, and over $9.5 million have been paid to the city’s coffer, according to SHTP.

The expansion of Nidec’s investment to other localities, according to experts, is inevitable as the land rental in the second city is now too high and the labor recruitment competition between businesses in the city is tough.

Ben Tre province licenced eight fresh FDI projects in the January-September period with total registered capital of $79.4 million, doubling that of the year-ago period. Besides, there were three projects having investment capital increased with total additional capital of nearly $10 million.

During the nine-month period, the number of valid FDI projects in Ben Tre was 41 worth a combined $309 million.

Sembcorp Development finds a stunning Gateway

Sembcorp Development, the wholly-owned urban development business unit of Sembcorp Industries, has joined hands with VSIP to develop a $165 million residential Gateway project in southern Binh Duong province.

The Singaporean firm on October 11 signed an agreement to with Vietnam-Singapore Industrial Park and Township Development Joint Stock Company (VSIP), to establish a joint venture.

VSIP is the developer of Vietnam Singapore Industrial Park projects across Vietnam. The project is a joint venture between Becamex IDC and a Singapore consortium led by Sembcorp Development, respectively. Sembcorp Development holds an effective 47.4 per cent stake in VSIP.

Under the agreement, Sembcorp Development Vietnam, a newly incorporated wholly-owned subsidiary of Sembcorp Development and VSIP will incorporate a joint venture company in Vietnam with 40 and 60 per cent shareholding, respectively to develop Gateway.

The will be undertaken over several phases from 2013 and the joint venture will build it in tandem with demand, and is estimated to be developed during eight years.

It is part of a larger mixed-use development within the 500 hectare VSIP in Thuan An district, Binh Duong province, operational since 1996. Gateway sits on a 4.1ha plot which will be developed into a mid-market residential project of about 163,807 square metres gross floor area, comprising 1,380 apartment units and amenities. Phase one will comprise two blocks of 250 apartment units.

Gateway is part of the developer’s efforts to develop projects that complement the functions of VSIP, delivering an integrated urban work and living environment that enhances the attractiveness of VSIP.

Brewery to increase production

The Hue Brewery company plans to increase its production capacity from 240 million litres of beer to 340 million litres by 2014, the firm's general director Nguyen Mau Chi told Viet Nam News.

The wholly foreign-invested company under the management of Denmark's Carlsberg Group has produced 142 million litres over the past eight months – a 20 per cent growth in comparison to the same period last year – and contributed VND536 billion (US$26 million) to the State budget.

"We estimate the company's production has reached the high demand of the market with a capacity of 240 million litres last year," Chi said.

He said the company would start construction of a new production line in Phu Bai Industrial Park next year and begin production with a capacity of 340 million litres at the end of the first quarter of 2014.

"The company has installed a full layer palletizer – an automated system from the Swiss ABB company to increase the production," the general director said.

The Hue-based company, which debuted in 1990s with a modest capacity of 3 million litres per year, is hoping to win 15 per cent of market share in Viet Nam by 2015.

The company has exported its products to England, France, Spain, Australia, Canada, Japan, Indonesia, Malaysia, Laos and Cambodia.

Panasonic plant gets ‘eco ideas'

A group of three Panasonic plants in Thang Long Industrial Park 1, known as the Panasonic Viet Nam Group, has become the first "eco ideas" factory in Viet Nam, Panasonic Viet Nam announced yesterday.

The group factory includes Panasonic Viet Nam, Panasonic System Networks and Panasonic Industrial Devices, all of which have committed to produce eco-friendly products with sustainable industry practices.

"Environmental degradation is happening in many parts of the world, but the choice is ours to reverse the trend," said Panasonic Viet Nam managing director Shinichi Wakita at the launch ceremony yesterday.

The "eco ideas" plant technology would reduce carbon emissions, waste generation and chemical usage in manufacturing, as well as enhance recycling efforts to reduce environmental impact, he said.

The plant would also manufacture energy-efficient products and products in compliance with EU and Viet Nam RoHS (Restriction of Use of Hazardous Substances) Directives.

Ha Noi Industrial and Export Processing Zones Authority vice chairman Nguyen Xuan Linh said the establishment of the "eco ideas" plant was a prime example of a manufacturer managing its processes and products to mitigate any detrimental environmental impact and he hoped more manufacturers would follow suit.

The launch of the first "eco ideas" plant in Viet Nam in line with Panasonic's plant strategy throughout the Asian Region, was aimed at effectively integrating environmental contributions with business growth, Wakita said. The local plant was the fifth in the region, following facilities in Indonesia, Malaysia, Singapore and Thailand.

Panasonic aimed to be the world's leading green innovation electronics company by 2018, the 100th anniversary of its estabilisment, and planned to develop at least one "eco ideas" plant in each country with manufacturing sites in the Asia Pacific region by March 2013.

The company has targeted to increase its total sales of eco-friendly products from 70 per cent of total sales in March 2011 to 80 per cent by March 2013.

VN, Russia pledge to accelerate signing of FTA

Viet Nam and Russia have agreed to strengthen the bilateral trade and economic links, including the signing of a free trade agreement between Viet Nam and the customs alliance of Russia, Belarus, and Kazakhstan.

The 15th meeting of the Viet Nam-Russia Inter-governmental Committee for Economic, Trade, Science and Technological Cooperation, Moscow, Russia, October 17, 2012 - Photo: VGP

The agreement was reached by Vietnamese Deputy PM Hoang Trung Hai and his Russian counterpart Igor Ivanovic Shuvalov during the 15th meeting of the Viet Nam-Russia Intergovernmental Committee for Economic, Trade, Science and Technological Cooperation which opened Wednesday in Moscow.

The two-way trade turnover is estimated to reach US$3 billion this year. Both sides have signed the roadmap for realizing joint action program on economic, trade and investment cooperation towards 2015.

During the meeting, the two sides will discuss ways to push cooperation in energy, industry and science and technology areas.

The two Deputy PMs will also talk on measures to step up cooperation between the two countries’ localities and in agriculture, finance-banking, healthcare, education and science and technology as well.

Businesses booming, more support needed

The number of businesses established in Viet Nam has quickly increased to some 663,000, featuring with the decrease in the State-owned enterprises and the rise in private and foreign-funded figures.

Businesses created jobs for nearly one fourth of the country’s workforce, tripling the total of the year 2000. While the number of workers in State-owned enterprises dipped 18.8%, the labor force in non-public sector experienced a six-fold rise and that of foreign-directed sector climbed 5.3 times.

Businesses’ export surged 34.2% in 2011 and 18.9% in the first nine months of 2012-an encouraging signal amid global economic downturn.

Despite difficulties, businesses contribute up to 69% to the total budget collection. They also help diversify economic sectors.

However, businesses are finding it hard to mobilize capital from securities market and commercial banks as the two channels are encountering slowdown.

Earlier this year, the Government issued Resolution 13 which figured out a series of measures to ease difficulties against production and support the market but more actions should be made.

To address the problem, the State Bank of Viet Nam has adopted measures to deal with non-performing loans to support them.

In the short-term, banks should extend payment deadlines and offer lower interest rates to businesses, said Deputy Minister of Industry and Trade Tran Quang Khanh. He also urged them to work closely with the Government to tackle challenges, towards stabilizing the macro-economy and restructuring the economy.

At present, they are also facing with high inventory levels mainly due to consumers’ thrift practices. Thus, it is necessary to reduce value-added tax to pull prices down in order to stimulate consumption.

Economists said the monetary policy needs to be adjusted in a more flexible manner to both curb inflation and create favorable conditions for businesses to thrive.

Encouraging signals of foreign investment inflow

Foreign investment flow into Viet Nam has increased quickly over the past time and Japanese firms are paying more attention to the Southeast Asian market, the Voice of Russia said Tuesday.

Of the US$9.5 billion of foreign direct investment injected into Viet Nam in the first nine months this year, up to 50% came from Japan.

The Radio said Japanese investors are operating over 1,700 projects in Viet Nam, including Nghi Son Refinery Plant and Bridgestone tyre factory. Noticeably, Japanese businesses have begun to invest in small and medium-sized projects in Viet Nam.

Compared to China, Vietnamese labor costs are two to three times cheaper, said the Head of the Economic Department at the Russian Academy of Sciences, Marina Tregubenko, when explaining why ‘Asian tigers’ as well as Western developing countries have chosen Viet Nam as their investment destination.

Strong industrial growth and young population have created a vast domestic market, she added. Foreign investors are starting to invest in upgrading road, air and maritime links and the country’s infrastructure.

Marina Tregubenko went on to say that Viet Nam has a legal system in favor of foreign investors. Other advantages include political stability and support from overseas Vietnamese people.

Next week, a business delegation from Spain will come to Viet Nam and Thailand to seek investment opportunities from October 22-26.

The trip will be organized by the Spain’s Exporters Association of Agricultural Machinery, Components, Irrigation System, Livestock and Post Harvesting Equipment (Agragex) with 130 enterprises as members.

Another delegation of 250 Argentine businesses has registered to participate in a tour to Viet Nam at the end of this month to promote trade links between the two countries.

The delegation will be headed by Argentina’s Commerce Secretary Mario Guillermo Moreno and other officials.

It is expected that Argentina’s Federal Investment Council will lead another delegation of foodstuff processing businesses to Viet Nam in November.

In early September, US Trade Representative Ron Kirk led a business delegation to Ha Noi to send the message that the US expects to have greater role in Viet Nam’s economy. During that time, a survey conducted in Singapore by the US Commerce Department and US Chamber of Commerce Singapore revealed that up to 57% of questioned businesses said they would expand production in Viet Nam.

In mid-September, the visit by Germany’s Minister of Economy and Technology Philipp Roesler who was accompanied by representatives of 230 enterprises warmed up investment environment in Viet Nam. After his visit, other delegations from UK, France and Japan also came to Viet Nam to seek opportunities in such fields of finance, ports, energy and infrastructure. Chairman of Japan Chamber of Commerce an Industry (JCCI) Tadashi Okamura said that Japanese Government advocates stronger investment in Viet Nam.

Foreign investors are increasingly interested in Vietnamese market, Chief economist of Vinacapital Alan Pham recently told the newswire VnExpress. He said Viet Nam has a promising market with a population of nearly 90 million, cheap workforce and the country is now benefiting from foreign investors’ production reallocation trend.

Vietnam: A competitive market for infant formula products

A research study on the competitive landscape of the market for infant formula products for babies under 12 months of age in Vietnam between 2009 – 2011 period was officially released on October 17 by the Central Institute of Economic Management.

The research which has been undertaken by the Consumer Unity & Trust Society (CUTS International) shows that strong competition in the market brings benefits to consumers in terms of both wide products ranges and price points that are available for consumers.

“The infant formula market in Vietnam is relatively small in terms of demand but quite large in terms of supply in comparison with other markets in the region. There are 28 companies with 50 different brands in product segment for infants between 0-6 months and 27 companies with 53 different brands in product segment for infants between 6-12 months”, report says.

It also showed that infant formula product prices in the nation are in line with similar products in other markets.

Contrary to public concern that infant formula was foreign-dominated, the report recorded that domestically-produced infant formula products have gradually increased their market shares in recent years, from 49.3% in 2009 to 56.3% in 2011 (by volume).

Dr. Vuong Ngoc Tuan, Deputy General Secretary of Vietnam Standards and Consumers Association said: “A healthy and competitive market is a good way to ensure that consumers’ have access to high-quality products at competitive prices. There should be a mechanism to make sure that product information could reach consumers in more convenient channels” to help promote informed consumer decisions based on product prices and quality”.

According to the report, the price of infant formula products depends on various factors, especially investment in research and development. Price fluctuations in Vietnam not only depend on prices of imported skimmed milk powder (SMP) but are also significantly affected by foreign exchange rates.

Additionally, high taxes (for example, import tariff of 10%) applied for this product segment are among the highest in the region. Furthermore, milk prices have also been influenced by high domestic inflation in recent years. In fact, the increase in prices of milk powder products in Vietnam has been lower than the price increase of most other packaged foods in 2009 -2011.

Ms. Pham Que Anh, CUTS International Director of Hanoi office shared: “In theory, a competitive market should bring a lot of benefits to consumers, such as competitive prices that are in line with product quality and freedom of choice for consumers among products that are continuously improved in terms of quality and designs. However, Vietnamese consumers have not been able to fully enjoy these benefits due to the lack of information about prices and product quality. The distribution system here is still fragmented and unorganized”.

Besides, the research offered a more objective view on the mechanism and competitive landscape of the infant formula market in Vietnam. Policy makers, basing on our findings, can develop more effective policies to correct market failures, ensuring a balance of various social interests, promoting stronger development of Vietnamese dairy industry, and ensuring that Vietnamese consumers benefit from the development of the market./.

Vietnam promotes economic-trade in European countries

A delegation from the Foreign Ministry led by Deputy Minister Nguyen Phuong Nga paid working visits to Hungary, Slovakia and Norway from October 8-16 to promote economic-trade ties with these countries.

In Hungary, the delegation met with leaders of the Ministry of Foreign Affairs and representatives of the Vietnamese business community, and attended a forum on ASEAN.

The Hungarian side said that in its look-East open door policy, Hungary attaches importance to developing ties with Southeast Asia countries, including Vietnam.

Hungary affirmed that it will continue providing ODA for Vietnam and strengthening cooperation with the country in training human resources for nuclear power plants, healthcare, water resource management and information technology.

The country pledged to back Vietnam in the ratification of the Vietnam-EU Comprehensive Partnership and Cooperation (PCA) and negotiations for a Free Trade Agreement (FTA) with the EU as well as closely cooperate with Vietnam at international forums.

In Slovakia, the Vietnamese delegation joined a seminar on strengthening Vietnam-Slovakia investment and trade ties and held working sessions with Foreign Ministry leaders.

The Slovak side spoke highly of cooperation potential with Vietnam and showed interest in investment opportunities in the country in the fields of small- and medium-sized hydropower, plastics and construction materials.

Slovakia is ready to cooperate with Vietnam in training human resources and ensuring the safety for nuclear power plant as well as support the country in the negotiations for the FTA and the ratification of the PCA with the EU.

In Norway, the Vietnamese diplomats attended a seminar on investment in Vietnam and worked with leaders of the Ministries of Foreign Affairs and Industry and Trade.

Norwegian officials pledged to assist Vietnam in promoting green growth and seek cooperation with Vietnamese businesses in oil and gas, energy, navigation, shipbuilding and industry./.

Hanoi gift fair attracts foreign importers

Nearly 500 importers from 41 countries across the world have registered to seek suppliers at the 2012 Hanoi Gift Show, which will begin on October 26.

According to Hanoi ’s Department of Industry and Trade (HDIT), the event holds a great deal of potential for businesses to find new partners and sign contracts.

The large number of overseas buyers who are attending is a positive sign for Vietnamese handicraft manufacturers and encouraging, bearing in mind the global economic downturn, said the department.

On display will be handicraft products, interior decor, indoor and outdoor furniture, home furnishings, embroidery work, fashion accessories, toys and handmade products made by ethnic minority peoples.

Two workshops will be held to introduce domestic businesses to the latest trends in the Australian and Japanese markets.
Co-organised by the HDIT and the Vietnam Handicrafts Exporters Association, the 2012 Hanoi Gift Show will run until October 30 at the Vietnam Exhibition Centre.-VNA

Contracts worth $12.8 mln signed at Vietbuild

Contracts totally worth over VND270 billion ($12.8 million) were signed at the International Exhibition of Construction, Building Materials, Housing and Interior Décor (Vietbuild 2012) in the southern city of Can Tho from October 11-15.

Jointly organised by the Ministry of Construction and Can Tho Municipal People’s Committee, the event took the theme “Develop and transfer construction technology in Vietnam” and drew the participation of 261 Vietnamese businesses, not to mention others from the Republic of Korea, Japan, Indonesia, China, Germany, Italy, Thailand and Malaysia.

As many as 40,000 domestic and foreign visitors had a chance to find out about construction materials, interior and exterior decor, and technologies used in the construction industry from 450 stands at the exhibition.

Tra fish production listed on conditional business sectors
 
The Ministry of Agricultural and Rural Development has called for Tra fish production to be added to a list of conditional trading sectors, after submitting a draft decree to the Government.

Under the draft, producers and companies who farm, process and export tra fish would only receive business licences if they met criteria such as ensuring food safety and hygiene, clearly-defining food origins and protecting the environment.

Deputy Minister Vu Van Tam, said that under the decree, producers could have their business licences revoked if they fail to meet the conditions.

The draft aims to limit the spontaneous formation of tra fish-production companies, which is believed to cause difficulties for balancing supply and demand, he said.

If approved, the decree is could be the catalyst for a bid to reform and reset regulations for tra fish exports to international markets, Tam added.

It is necessary to remove obstacles to the State management of tra fish exports as current regulations overlap each other, said Duong Nghia Quoc, director of Dong Thap Province's Agriculture and Rural Development Department, at a recent meeting to prepare the drafted decree.

Viet Nam's tra fish exports totalled approximately US$1.8 billion last year.

Vietnam International Industry Fair opens

Vietnamese manufacturers in the light industries sector are taking the opportunity to unveil their latest products to their overseas partners at the 2012 Vietnam International Industry Fair which got underway in Hanoi on October 17.

Vietnamese and overseas manufacturers from Russia, China, the Republic of Korea and several ASEAN member countries are showcasing the latest machinery and equipment in the sector such as automated production systems, processing machinery and vehicular transport.

The fair aims to boost trade and investment ties between Vietnamese manufacturers in this sector and their overseas counterparts during the current economic downturn, said Nguyen Danh Thuan, Deputy General Director of the Vietnam Exhibitions and Fair Centre.

On the first day, the fair boasted several contracts worth hundreds of thousands of US dollars being signed between Vietnamese firms and international companies.

The event will run until October 21.

PV Pipe to produce steel oil pipes next year

PetroVietnam Steel Pipe Joint Stock Company (PV Pipe) is test-running a plant producing steel oil pipes which will turn out products early next year with a capacity of 100,000 tons per year.

Representatives of PV Pipe, Steel Flower Co. and Busan City sign a memorandum of understanding last Thursday

PV Pipe director Tran Dang Thuyet said that the plant worth nearly VND2.2 trillion, or roughly $104 million, was kicked off last October in the Mekong Delta province of Tien Giang.

Steel pipes produced by the plant will be used for gas pipeline projects such as Nam Con Son 2 and Block B-O Mon. Besides, the plant will provide steel pipes for oil rigs, refineries, other oil and gas projects, and thermal power plants.

According to PV Pipe, the firm last Thursday signed a memorandum of understanding with South Korea-based Steel Flower Co. (SFC). Under the deal, the South Korean firm will share some outsourcing orders and supply products if PV Pipe fails to meet orders, and vice versa.

PV Pipe is a member of PetroVietnam Gas Corporation.

Kuwait to create Asian development fund

The Amir of Kuwait announced plans for a US$2 billion fund to finance projects in non-Arab Asian countries yesterday, as leaders from 32 Asian nations gathered in Kuwait City for the first Asian Co-operation Dialogue summit.

Established to discuss measures for promoting economic and trade cooperation in the region, Sheikh Al-Ahmad Al-Sabah kicked off proceeding by unveiling plans for the fund, which Kuwait will contribute $300 million towards.

As well as non-Arab Asian development, the Asian Development Bank proposed fund will also finance projects that contribute to achieving the Millennium Development Goals.

Addressing the opening ceremony at the Bayan Palace, the Amir of Kuwait emphasised the need to create an investment-friendly environment in the continent.

He called for promp enactment of the necessary legislation to promote such an environment to stimulate intra-regional trade between Asian countries.

He put particularly focus on improving transport and communication as a means of increasing the exchange of goods and services.

The Amir also urged participating countries to strive towards improving living standards for people in the continent.

"Accelerating population growth in our continent, which accounts for 60 per cent of the world total, places a burden on our development plans," said the Amir.

"This requires us to work without delay to provide work opportunities and job security to achieve economic integration between our countries."

As the country coordinator of the forum, Thai Prime Minister Yingluck Shinawatra also mentioned the importance of maintaining economic links between member countries, particularly in times of economic downturn.

We need to create new routes in Asia to enhance trade and investment in the region, she said.

Meanwhile, the Arab League's Secretary General Nabi Al-Arabi confirmed Arab nations form part of the Asian continent, adding that there are "strategic " interests to foster.

Yesterday, participants also discussed other aspects of cooperation including raising the quality of healthcare, education, human resource mobilisation and environment.

Before closing today, the summit is scheduled to approve a 22-article statement which tackles various aspects of cooperation among ACD member states. This is expected to place solid foundations for joint ventures, enhancing trade exchange among Asian countries as well as commercial and trade cooperation between Arab nations and the rest of Asia.

The summit also attracted roughly 3,000 delegates, including economists and researchers from across the continent.

Launched in Thailand 10 years ago,the ACD steadily evolved from 18 founding countries to 32, representing every sub-region of the continent. The dialogue covers 20 areas of cooperation from economic to social, cultural, educational and technological advancement.

Viet Nam has been a member since 2002 and is this year represented by Deputy Foreign Minister Le Luong Minh.

Blitz on sales of ex-diplomat cars

Deputy Prime Minister Hoang Trung Hai has asked ministries of finance and public security to review the sales of former foreign diplomatic cars to non-diplomats in Viet Nam.

Hai also asked ministries to review their management of cars with diplomatic number plates and their use.

The Ministry of Finance must report to the Prime Minister the regulation on temporary importation, exportation, transfer and writing off of automobiles and motorbikes that were initially tax free for the use of people working for diplomatic agencies in Viet Nam. Between 1998 to late August 2009, 4,366 cars were imported into Viet Nam by diplomatic agencies, reported the Ministry of Finance.

Of them, 230 cars had been exported and 1,758 had been transferred or written off. Of the remaining 2,378 cars, some 1,158 were said to have been misused and thus were subject to tax arrears collection.

Under the current regulations, the owners of the 1,158 cars would have to pay tax arrears and fines. Such diplomatic cars were first owned by foreign diplomats who then sold them to Vietnamese people after the diplomats' tenures ended in Viet Nam.

Deputy Minister of Finance Do Hoang Anh Tuan said such cars would also be subject to the special consumption tax and valued-added tax, with the total arrears estimated to be VND40-50 billion (US$1.9-2.3 million).

Under regulations, a foreign diplomat is permitted to temporarily import a car for use during his or her term in Viet Nam without paying taxes or fees.

Police in the northern province of Phu Tho have seized 25 diplomatic cars since April this year and will auction 11 of them. The cars bought by Vietnamese people included luxury brands like Bentley, Audi Q7, Lexus, Porsche, Mercedes Benz, Acura, Infinity and BMW.

Investment appears too good to be true

Doubts are surrounding the legitimacy of a foreign company calling itself Uinvest that has been advertising on Vietnamese websites, promising to help people invest in international stocks at high profits.

Market observers claim that it is another multilevel marketing scheme, since it offers people who sign up a 4-15 per cent commission on the proceeds of other users they recruit.

Uinvest has advertised that it has sought out promising companies in Ukraine and elsewhere. For instance, it offered shares in a Canadian boat rental company which it said had been in operation for two years, had shares valued at US$300 and paid a $40 dividend per share per month.

In its advertising, Uinvest has promised to allow investors to sell back shares at their original prices, but to get the commission they have to attract others to join the site, paying an initial fee.

A user of the social networking site webtretho.com said that making money from the Uinvest network was no easy matter. "If you can't attract other people to deposit at least $1,000 each month, the actual commission decreases," he said. "In addition, your monthly interest is deducted by 10 per cent, and they will charge a fee of $1 plus 1 per cent of the value of shares sold."

Recognition of share ownership was also only made through a virtual account, he said. If investors wanted to see a certificate of share ownership, Uinvest would send a photocopy on A4 paper for a fee of $100.

No foreign companies in Viet Nam offer such profit promises, and the brand name of Uinvest has almost zero recognition, says the head of the State Securities Commission's market development department, Nguyen Son. "I'm not sure if it's a scam," he said, adding that he found no provisions on the Uinvest website for handling disputes if it fails to fulfill all of these promises.

The company did not respond to requests for comment.

Light industry fair opens in Ha Noi

Vietnamese and overseas manufacturers from Russia, China, the Republic of Korea and several ASEAN member countries are showcasing the latest machinery and equipment in the sector such as automated production systems, processing machinery and vehicular transport.

The fair aims to boost trade and investment ties between Vietnamese manufacturers and their overseas counterparts during the current economic downturn, said Nguyen Danh Thuan, Deputy General Director of the Viet Nam Exhibitions and Fair Centre.

The event will run until October 21.

$12m contracts signed at building show

Contracts worth over VND270 billion (US$12.8 million) were signed at the International Exhibition of Construction, Building Materials, Housing and Interior Decor (Vietbuild 2012) which took place in the southern city of Can Tho and ended on Monday.

Co-organised by the Ministry of Construction and the municipal People's Committee, the event drew the participation of 261 Vietnamese businesses, as well as others from South Korea, Japan, Indonesia, China, Germany, Italy, Thailand and Malaysia.

As many as 40,000 domestic and foreign visitors came to the exhibition.

Work begins on $39m gearbox parts plant

Construction of a US$39.6 million plant producing components for auto gearboxes began in southern Ben Tre Province's Giao Long Industrial Zone on Tuesday.

Financed by the Japan-based Nidec Corporation, the 4ha plant is scheduled to begin operation next September. All products will be exported.

This is the first investment Nidec has made outside HCM City.-

Security-training centre opens

A security-technology training centre opened yesterday at Quang Trung Software City in HCM City's District 12.

Started by the Silver Sea JS Company, the Asian Professional Security Association and security-equipment producers, the centre will regularly organise seminars, conferences and training courses on security technology to train companies how to professionally and efficiently manage and use security systems.

SMEs receive softer loans
 
An increasing number of commercial banks in HCM City have launched credit packages at soft interest rates to give small – and medium-sized enterprises (SMEs) easier access to bank loans.

However, in order to control credit quality and safety, most banks in the city are still being selective in giving out loans.

One of the banks offering preferential packages is the HCM City Development Joint-Stock Commercial Bank (HDBank). In June, it launched the SME Business package, which covers deposits, loans, interest rates and service fees.

Under the package, the more transactions a company makes, the more privileges they receive.

SMEs are also offered a competitive lending interest rate that is 2 per cent lower than regulated rates.

In addition, service fees on international and domestic settlement have been reduced, and businesses taking part in the package receive free financial consultancy and faster disbursements.

The Southeast Asia Joint-Stock Commercial Bank has also prepared a preferential credit package worth VND2 trillion (US$96 million) for enterprises facing difficulties.

Priority will be given to national SMEs, particularly those involved in production and trading of consumer products, food, home appliances, exports and processing.

Eligible SMEs can enjoy interest rates of only 10.99 per cent per year for loans in Vietnamese dong and 4.5 per cent per year for loans in US dollars. Loan application procedures will be streamlined as well.

The bank's deputy general director, Le Quoc Long, said the package would not only help SME customers but also assist the bank in its capital flow and ensure credit growth.

Similarly, the Ocean Joint Stock Commercial Bank (Oceanbank) has also offered short-term loans for household businesses at preferential interest rates of 14 per cent per year in the first three months and thereafter at the bank's normal lowest interest rate.

Lending procedures will be simplified so that smaller companies can qualify.

Enterprises involved in exports are also coping with difficult economic times, including capital shortages and high interest rates. In addition, they have to deal with foreign-currency scarcity, exchange-rate fluctuations, and higher prices for imported materials and lower export prices.

Many banks, including the Viet Nam International Bank, VPBank and MB, has launched preferential programmes to help export enterprises get longer-term loans at preferential interest rates.

The VIB has also offered services for import and export tax collections and tax guarantees, helping exporters save time and go through customs clearance more speedily.

In addition, SMEs are allowed to pay their taxes at a later date because VIB acts as a guarantor for such payments. This frees up much-needed capital for SMEs to use for their business activities.

Ministry bans some temporary imports
 
The temporary importing of used cars and motorbikes destined for a third country has been banned until further notice.

Deputy Minister of Industry and Trade Tran Tuan Anh said the ministry was working with other ministries to produce a circular on the regulations covering temporary imports, he said.

Businesses involved in the process or in trading goods such as wine, beer, tobacco and cigars and others which carry a consumption tax must have operated in the export field for at least two years.

In addition, businesses involved in temporary importing must deposit at least VND5 billion ($250,000) as a bond against environment problems and the possibility goods get damaged and could not be exported.

Temporary imports are permitted to stay in Viet Nam for 45 days instead of the previous 180 days. However, customs may allow one extension of time for up to 15 days, after which the goods are liable to be confiscated.

The Ministry of Industry and Trade has issued Decision No 5737/QD-BCT dated September 28, details the list of goods suspended from temporary imports.

Asian nations determined to boost trade cooperation

Asian leaders yesterday pledged to promote investment and remove trade barriers to achieve economic integration for all countries in the continent.

The commitment was included in a communique of the first Asia Cooperation Dialogue (ACD) summit which was held in the State of Kuwait.

"The mutual protection of assets in ACD member states will promote regional investments and economic integration while encouraging joint Asian investments in other continents", it said.

The joint statement also stressed the importance of co-operation in the financial sector, where leading Asian financial centres will support financial institutions in emerging economies by sharing knowledge and expertise.

The move will help develop the continent's financial sector and make it better prepared for managing crises, the communique argued.

While confirming sustainable energy as a key factor in achieving prosperity in Asia, the forum participants reiterated their commitment to energy co-operation by focusing on promoting accessible and affordable renewable energy sources.

On the topic of food security, ACD member countries shared the view that applying advanced agricultural technology and increasing agricultural production are crucial steps towards creating stable food markets.

Concluding the summit, the representatives of 32 countries consented to establishing a Kuwait-based secretariat to support the work of ACD.

ACD ministerial meetings will be held annually while the ACD summit takes place every three years. The next ministerial meeting will be hosted by Tajikistan in 2013 and the 2015 summit is to be held in Thailand.

Khanh Hoa in bid for international transit port

The authorities of central Khanh Hoa Province will focus efforts on securing funds for its US$4 billion Van Phong International Transit Port project during the period of 2012-15.

The project, which has three phases of planned construction, has been deemed a top priority by the region's authorities.

The first phase development would cover 118-125 ha, constructing berths which would stretch a combined 1,680 to 2,260 meters.

With 7 wharves (2 big and 5 small ones) catering for ships up to 9,000 Twenty-foot equivalent units (TEU), the port could handle up to 2.1 million TEUs of cargo. The overall phase is expected to cost US$500 million.

The second phase would follow on until 2020, with seven wharves being built to receive vessels of up to 12,000 TEUs. This phase would raise the total handling capacity up to 4.5 million TEUs per year with a total investment of $1.2 million.

After the final phase, the port complex would boast a total of 17 container wharves for very large vessels of up to 15,000 TEUs and 4 small wharves for feeder ships, with a total handling capacity of 14.5 to 17 million TEUs per year, while the total investment figure would be close to $4 billion.

Viet Nam National Shipping Lines (Vinalines), the project owner of the start-up phase, is arranging funds for the project, using its own capital, banks' loans and working capital pooled from its financial investments.

Previously, Hoang Dinh Phi, deputy head of the management board of the Van Phong Economic Zone Authorities said that the Government recently halted the transshipment port project of the start-up phase. The project was suspended because Vinalines changed containers from 6,000-9,000 TEU to 12,000-15,000TEU which would have required huge investment and international support.

The Government has suggested Vinalines and the Transport Ministry should approach prestigious and experienced foreign investors to join the project.

Van Phong is a large bay to the east of Viet Nam, encompassing 43,500 hectares of water surface area and a depth of 15-22 meters. With its favourable natural conditions and potential, the Government has approved plans to develop the area into an international transshipment port and a multi-purpose economic centre of commerce, industry and tourism.

There are 100 projects with total investments of $13.9 billion due to be constructed in the bay. Of which, 28 projects are already underway and 48 have been granted investment licences.