Top ten auto events in 2013 in rear-view mirror

From top luxury car manufacturer coming to Vietnam to the first Vietnam Motorcycle Festival in passing through new incentives, a glance at the 10 auto events in 2013. Illustrative image (Photo: VNA) 1. World's top luxury car manufacturer comes to Vietnam British luxury car maker Rolls Royce appointed Regal Motor Cars as its first dealer in Vietnam, giving the company a foothold in one of the region's emerging auto markets. As many as 70 Rolls Royce cars are running in Vietnam, four of them Phantom Dragons - a limited edition that costs 1.2 million USD. 2. Vietnam Motorcycle Festival 2013 revs up Ho Chi Minh City The Vietnam Motorcycle Festival 2013, the first of its kind in Vietnam, was held in Ho Chi Minh City from July 27 to 28 and was attended by more than 1,200 high-end motorbikes from clubs nationwide. The event showcased the latest motorcycles from a wide range of international brands, including Harley-Davidson, Benelli, BMW, Kawasaki, KTM, Pilsa, Suzuki, Triumph and … [Read more...]

Top ten auto events 2013

1. World's top luxury car manufacturer comes to Viet Nam British luxury car maker Rolls Royce appointed Regal Motor Cars as its first dealer in Viet Nam, giving the company a foothold in one of the region's emerging auto markets. As many as 70 Rolls Royce cars are running in Viet Nam, four of them Phantom Dragons - a limited edition that costs US$1.2 million. 2. Vietnam Motorcycle Festival 2013 revs up HCM City The Vietnam Motorcycle Festival 2013, the first of its kind in Viet Nam, was held in HCM City from July 27 to 28 and was attended by more than 1,200 high-end motorbikes from clubs nationwide. The event showcased the latest motorcycles from a wide range of international brands, including Harley-Davidson, Benelli, BMW, Kawasaki, KTM, Pilsa, Suzuki, Triumph and Victory. 3. Automobile firms want import tax payment deadline extended Many automobile businesses have asked the Government to extend its deadline for import tax payments because they need to concentrate on the … [Read more...]

BUSINESS IN BRIEF 28/1

Realty market witnesses many projects change handsThe property market witnesses many projects changing hands this January as companies are restructuring their investment portfolios.VinaLand, a real estate fund managed by VinaCapital, announced it had sold its stake in an office building project at 30 Nguyen Du Street in Hanoi after four years of investment. The entire stake of 65% that Vinaland held in this project was sold at US$3.3 million.The project was originally a three-star hotel, but then it was turned into a grade-C office building with some 2,240 square meters of floor space for rent.Also in the northern region, Thu Duc Housing Development Corp. (Thuduc House) has pulled out of the Dong Mai-Ha Dong project in Hanoi's Ha Dong District after selling its stake in the project at VND80 billion.Similarly, the Malaysian-invested Perdana Parkcity has bought a 25% stake from its local partner to wholly own the Parkcity Hanoi project in Ha Dong District.With total investment cost of … [Read more...]

Vinaxuki wants tax reduction and bank loan

One of two largest Vietnamese auto brands, Xuan Kien Automobile Joint Stock Company (Vinaxuki) has asked the Government to reduce the 70 percent consumption tax on its locally made cars from January 2014. Vinaxuki said this would help expand the manufacturing of eight-seat vehicles, popular in rural areas, taxi business as well as push up its localisation process. The company also wants to borrow VND250 billion (US$11.9 million) from Viet Nam Development Bank over seven years under the national mechanical engineering plan. Besides it wants to borrow long-term funds or delay paying tax from October this year so that it can invest in research, design, technology transfer and make its own engines.   Vinaxuki has been manufacturing and distributing models of buses and trucks. Its factories have a total capacity of 60,000 units per year. Its move follows the Government’s acceptance of a request from the Truong Hai Automobile company (Thaco) to extend its deadline for paying … [Read more...]

Car makers plead for Gov’t help

HA Noi (VNS) — Xuan Kien Automobile Joint Stock Company (Vinaxuki) has asked the Government to reduce the 70 per cent consumption tax on its locally made cars from January. Vinaxuki said this would help expand the manufacturing of eight-seat vehicles, popular in rural areas and as taxis - as well as push up its localisation process. The company also wants to borrow VND250 billion (US$11.9 million) from Viet Nam Development Bank over seven years under the national mechanical engineering plan. It also wants to borrow long-term funds or delay paying tax from October this year so that it can invest in research, design, technology transfer and make its own engines.. Vinaxuki has been manufacturing and distributing models of buses and trucks. Its factories have a total capacity of 60,000 units per year. Its move follows the Government's acceptance of a request from the Truong Hai Automobile company (Thaco) to extend its deadline for paying import tax. Many other automobile businesses have … [Read more...]

BUSINESS IN BRIEF 21/3

Supermarkets set up to serve workers in Industrial ZonesIndustrial and Export Processing Zones in Ho Chi Minh City have recently coordinated with Saigon Union of Trading Co-Operatives to open supermarkets to serve workers right at the zone precinct.Ho Thi Kim Oanh, head of Co-op Food Supermarket in Linh Trung 2 Export Processing Zone in Thu Duc District, said the supermarket has been drawing workers every day. A diverse variety of commodities, including fresh and processed food, are now selling at subsidized rates in the supermarket.   Le Hong Gam, a worker at the zone, said that earlier she had to go very far to a marketplace from her rental room to buy food items but now the supermarket has made it very convenient for her to buy her daily needs.Setting up of supermarkets in Industrial and Export Processing Zones will also help reduce vendors along roadsides in the zone areas.According to the Industrial and Export Processing Zone Management Board in HCMC, seven supermarkets and three … [Read more...]

BUSINESS IN BRIEF 2/10

Purchasing power sees slight decline The purchasing power of Vietnamese residents has slightly reduced according to the General Statistics Office (GSO), following a month-on-month decrease of 0.1 per cent of the total retail sales value of goods and services. In the first nine months of this year, the total sales value reached VND1.7 trillion (US$81.6 billion), up 17.3 per cent over the same period last year. The turnover of industrial goods in 2012 was VND1.3 trillion ($63 billion), accounting for 77 per cent of the total. This is a year-on year rise of 16.5 per cent. The revenue from hotels and restaurants rose 19 per cent from last year, making up 12 per cent of this year's figure. Sales from other services totalled 10 per cent of the value, representing a high growth rate of 40 per cent. Vu Manh Ha, an economist from the GSO said that a 2.2 per cent surge of the consumer price index (CPI) this month - the highest it has been so far this year - was a factor behind the … [Read more...]

BUSINESS IN BRIEF 6/8

New office to promote trade with Tuscany An office to promote trade and investment between Viet Nam and Italy is set to open in central Italy's Tuscany region. Viet Nam's Ambassador to Italy Nguyen Hoang Long and Stefano Giovannelli, General Director of Tuscany Economic Promotion Agency (TEPA), yesterday signed a memorandum of understanding on the establishment of the office. The office aims to play an important role in exchanging information on trade and investment between Viet Nam and the Tuscany region. Vietnamese or Italian business people who want to find out about business opportunities and policies in each other's countries can seek help from the office. The office is scheduled to open next month and be managed by a Vietnamese officer. Speaking at the singing ceremony, Ambassador Long said he hoped the office would operate efficiently and act as a bridge for bilateral economic co-operation. A Viet Nam Week featuring Vietnamese culture, arts and music will be held in … [Read more...]

BUSINESS IN BRIEF 8/6

300 tonnes of litchi exported to China daily Since the end of May, on average 300 tonnes of litchi were transported every day to the Chinese market through the Lao Cai international border gate. Between 2,000-5,000 tonnes of fresh litchi will be delivered to Chinese dealers each day in the next two weeks when the harvest season is at its peak. Litchis are mainly grown in Bac Giang and Hai Duong provinces, less than 70km from capital Hanoi. At present, the average export price ranges between VND10,000-12,000 per kilo, mostly shipped to wholesale markets in China's Yunnan province. Local businesses find it beneficial to export their products to China through official trade channels, thanks to the stable prices and simple procedures. Local businesses attend int'l Kunming Fair More than 120 Vietnamese businesses are attending an import and export fair, which opened in Kunming City, the capital of China's Yunnan province, on June 6. They are showcasing Vietnam's traditional products … [Read more...]

BUSINESS IN BRIEF 4/4

VCB to make $1b bond issue Vietcombank (VCB) will issue up to US$1 billion in bonds on overseas markets this year in order to facilitate the bank's foreign currency operations, Vietcombank general director Nguyen Phuoc Thanh accounced at the bank's shareholders' meeting yesterday in Ha Noi. Thanh said foreign exchange operations played an important role in Vietcombank's business, with foreign currency deposits currently accounting for about 30 per cent of the lender's total deposits. Foreign currency lending also made up over 32 per cent of total credit activity. "Raising medium- and long-term capital through issuing international bonds will help balance the budget for foreign currency credit operations," Thanh said. Vietcombank posted a net profit of over VND4.2 trillion ($200.8 million) in 2011. As of December 31 of last year, the lender's total assets were worth VND367 trillion ($17.48 billion), an increase of 19.2 per cent over the previous year. Total deposits rose 16 per cent … [Read more...]

Transfer pricing skills plentiful

All the tricks played ever in the world to transfer pricing have also been used in Vietnam. Transfer pricing burns in Vietnam According to Nguyen Dinh Tan, Head of the HCM City Taxation Department, tax officers would have doubts about the accuracy of businesses' finance reports, if they can see "abnormal things." For example, the enterprises declare losses for many consecutive years, but they still continue expanding operation and production, especially the businesses in garment, handbag and footwear industries. The sale prices of goods and services to associated companies prove to be lower than the prices applied to independent units. Transfer pricing by declaring higher capital contribution The overvaluation of the initial investment equipments can help MNC to transfer a sum of money back to the parent group right in the investment period. Meanwhile, the annual depreciation for the equipment would lead to the state failing to collect tax from the enterprises. A hotel joint venture … [Read more...]

BUSINESS IN BRIEF 28/12

Office gives okay for 3 new trademarks The National Office of Intellectual Property in Viet Nam has acknowledged trademarks of products Rach Goc dried shrimp, boi dried fish and U Minh Ha honey. The Farmer Associations of southern Ca Mau Province districts Ngoc Hien, Tran Van Thoi, U Minh districts, plan to expand their market domestically and abroad, and extensively promote their trademarks. In 2012, the provincial Department of Science and Technology will propose the recognition of product trademarks for Nam Can sea-crab, ca bong tuong (large goby) and the Tan Thanh eel. Bank name change given the go-ahead The State Bank of Viet Nam (SBV) announced yesterday that it had approved a decision to rename Gia Dinh joint-stock commercial bank (Gia Dinh Bank) as Viet Capital Commercial Joint Stock Bank (Viet Capital Bank). Previously, SBV issued Decision No2665/QD-NHNN to approve an amendment to a business licence in the name of Gia Dinh Bank on December 13. The Decision takes effect after … [Read more...]

BUSINESS IN BRIEF 16/11

ACB Bank, Standard Chartered ink MOU for VIP clients', cardholders' sake Vietnam's Asia Commercial Bank (ACB) and Britain's Standard Chartered Bank on Thursday signed a memorandum of understanding on adding more benefits to the Vietnamese bank's VIP customers and Visa Platinum cardholders. The deal enables the VIP customers and Visa Platinum cardholders to get benefits and services Standard Chartered provides for its Priority Banking clients, with nine customer service centers in Malaysia and three others in Singapore. The signatories were Ly Xuan Hai, chief executive officer of Ho Chi Minh City-based ACB and Ajay Kanwal, Standard Chartered's Southeast Asia head of consumer banking. Experts predict exponential growth of Vietnam's rice exports Exponential growth of rice exports from Vietnam last two decades augurs well for the nation's food security as well as the world, said experts at a conference in the Mekong delta province of Soc Trang yesterday ( Nov. 9). However, the shrinking … [Read more...]

January CBU imports triple last year

Hung Le A model poses next to a Lexus car at an exhibition of high-end autos in this file photo. CBU imports in January triple the volume recorded a year ago - PHOTO: HUNG LE GSO data showed Vietnam spent US$156 million importing CBU autos in the first month of 2015, up a staggering 144.5% over a year ago. Industry sources said the strong growth of CBU imports is not surprising because January is the month in which people normally buy new cars for the Lunar New Year holiday, or Tet. CBU imports are forecast to keep rising strongly this year because most auto-assembly joint ventures in Vietnam import CBU autos for domestic distribution while they have no plan to assemble those models locally, while import tariffs on CBU vehicles are falling. Even Mercedes-Benz, the only luxury automaker which has an assembly factory in Vietnam, might be less affected by Vietnam’s tariff reductions on thousands of items imported from Southeast Asian countries as committed to the ASEAN … [Read more...]

Auto prices unlikely to fall this year

Hung Le Truong Hai Auto Corporation (Thaco) has announced to provide special offers of up to VND50 million for each of its customers. However, a representative of the firm told the Daily that such a move simply aims to encourage customers to buy cars at the year-end and have nothing to do with Vietnam’s tax reduction road map. Lowering the selling prices is impossible this year as the Ministry of Finance set the road map for import tax cuts early this year. Accordingly, up to 90% of nearly 10,000 groups of items imported from ASEAN are subject to tariff exemptions from this year and only 7% will have import tax lowered gradually to 0% by 2018, including completely built-up (CBU) vehicles. CBU autos of under ten seats imported from ASEAN countries are entitled to a 50% rate this year and the rate will be lowered to 40% next year, 30% in the following year and 0% in 2018. Therefore, the prices of imported cars may not drop this year as expected by many. The Vietnam … [Read more...]

Special discounts of up to VND50 million for Kia in January

Kia Rio Thaco is offering the year’s biggest chance to own a Kia car, reducing prices by up to VND50 million (US$2,340) between Jan. 5 and Jan. 31 for various Kia models including the popular Morning, K3, and New Sorento. MODELS Maximum discounts in January 2015 (*) in million dong (*) The discount rates depend on generations and areas Kia Morning 13 Kia K3 38 Kia Carens 30 Kia Sorento 36 Kia New Sorento 50 Kia Rio 24 5-door Kia Cerato 20 Kia Sportage 35 Kia Optima 35 Kia Cerato Koup 30 Kia Soul 24 Kia had a busy year in 2014 with many new models introduced to the Vietnamese market, including New Sorento, Kia Soul, Kia Koup, and Rondo. The outstanding trio which represent the new generation and new technology of automobiles are K3, New Sorento and Rondo. The brand has wrapped up 2014 with more than 11,000 cars sold, up 27 percent from the previous year. Nearly 1,500 Kia cars were sold in … [Read more...]

Tet peach tree signals Vietnam spending rebound

Shoppers look at lunar new year decorations in the days leading up to Tet Lunar New Year in Hanoi, Vietnam. For the past three years, Nguyen Thi Oanh could only afford a small kumquat tree for the Lunar New Year festival. With business picking up and smaller fuel bills, she plans to buy a more expensive peach tree for Tet in February. "People are spending more than last year," said Oanh, 46, who sells pork in a market in suburban Hanoi. "Dao trees are twice as expensive as quat trees, but I’m doing better so I can afford to spend a bit more this Tet." The country’s inflation eased to the slowest in at least nine years last month on falling oil prices, providing a boost to household incomes, a trend that’s emerging across Asia’s energy-importing nations. A rebound in consumption would help bolster Vietnam’s economy beyond foreign direct investment and exports, with growth forecast by analysts to reach 6 percent this year for the first time since … [Read more...]

Vietnam’s automotive sales leap 43% in 2014: trade association

Automotive sales in Vietnam reached 157,810 vehicles in 2014, up 43 percent compared to 2013, according to the latest report by the Vietnam Automobile Manufacturers' Association (VAMA). Last year, sales of personal cars increased by 43 percent year on year, topping 100,000 units, while sales of trucks grew by 42 percent over 2013 to reach nearly 57,371 vehicles, VAMA said in its January report. Particularly, in the last month of 2014, 20,208 vehicles were sold in Vietnam, up 27 percent compared to the previous month and up 53 percent compared with the same period in 2013. This was the 21st consecutive month automotive sales saw a year-on-year growth rate in the country and was the highest number of monthly vehicle sales in the last three years. Specifically, the number of personal cars and trucks sold in December reached 13,221 units and about 7,000 units, up 31 percent and 19 percent compared with the previous month. The production of cars assembled locally hit 13,440 … [Read more...]

New record for auto sales in 2014

As many as 157,810 automobiles were sold in 2014, representing the highest number in the recent five years of annual auto sales in Vietnam, according to the Vietnam Automobile Manufacturers’ Association (VAMA). The figure represented a 43 percent increase from 2013. Of them, cars surpassed 100,000 units, reflecting a 43 percent soar while trucks reached 57,371 units, a sharp 42 percent increase. While the sales of locally-assembled automobiles were 32 percent higher than last year, the industry saw a dramatic 83 percent surge in sales of imported vehicles. In December alone, customers bought a total of 20,208 vehicles, up 27 percent against last month and 53 percent above the same period last year, making it the 21st month with increased sales and the highest sales month over the last three years. Truong Hai and Toyota were the two most popular manufacturers last year, with Truong Hai selling 42,399 cars and Toyota following closely behind with 40,820 vehicles. Ford … [Read more...]

Thaco leads Vietnam’s automobile market in 2014

The stable growth of Kia, the rise of Mazda, the return of the legendary Peugeot and the steady growth of truck lines brought Thaco to the top of Vietnam’s automobile market in 2014, with more than 42,000 vehicles sold. Thaco is the only company in Vietnam that assembles and produces all three kinds of automobiles: cars, trucks and buses with 16 to 46 percent of the work made with domestic resources. The company provides a wide range of quality products at reasonable prices. With continuous efforts, the company gained various successes and thrived to the top of Vietnam’s automobile market in 2014 with a record sale of 42,338 vehicles, or 32 percent of Vietnam Automobile Manufacturers’ Association. It is an impressive figure for a business of less than ten years experience and which only joined the car market segment eight years ago. Thaco’s sale of products for commercial purpose, including trucks, buses and other special vehicles, grew steadily by 41 … [Read more...]