Open policies required to control gold fluctuation, says expert

Open and market-oriented policies will put gold under control, says director Tran Trong Quoc Khanh of a gold shop of the Asia Commercial Bank. Peopel rush to sell gold jewelries at a HCMC-based gold shop after the precious metal constantly hit llifetime highs (Photo: Minh Tri) "Vietnam's gold follows the global move. Yet there is still a gap between them as the domestic and international markets are not connected with each others," Khanh says in an interview with SGGP Dau Tu Tai Chinh Newspaper. Legal documents having been released recently show the government restricts gold trade although it still continues to recognize the right of citizens to have gold holdings, Khanh says. Vietnam has already forbidden banks from lending gold for the production and trade of gold bars since October last year. The new rule is an attempt to eliminate the role of gold as a means of payment in Vietnam, the central bank said. While the central bank has already ruled out any ban on gold bullion … [Read more...]

Government’s proposed lump-sum taxes reduction vital, say officials

The government's proposals on tax exemption and reduction have raised questions from the National Assembly's Committee for Budget and Finance (CBF) on the effectiveness of the measures in boosting the economy. The government's proposed tax reduction for landlords of rent houses for workers and students, private kindergartens and food suppliers for workers is vital (Photo: Minh Tri) SGGP Dau Tu Tai Chinh Newspaper has caught up with Tran Du Lich, deputy head of the Ho Chi Minh City NA deputy delegation, to interview him about the suggesting measures. Tran Du Lich: I agree with most of the government's proposals, except for one on a 30 percent corporate income tax reduction. I align with CBF's suggestion that the tax should be reduced for small- and medium-size enterprises (SMEs), footwear makers, textile firms, food suppliers, electronic spare part producers and public infrastructure builders only. Dau Tu Tai Chinh: What is your opinion about the government's proposal on individual … [Read more...]

Banks post H2 positive earning despite high-cost loans

Many commercial banks announce to earn positive profits, while many businesses have to reduce operation and lay off staffs in an attempt to survive the economy meltdown. Depositors fill saving application forms at a HCMC-based branch of Asia Commercial Bank. Despite high lending rate, lenders still made healthy earning, while enterprises incurred losses Statistics show many lenders achieved booming earning results in the first six months of the year, making 40-50 per cent of this year's target. Sacombank, Vietnam's fifth largest partly private lender by assets, announced in a financial report that it earned a pretax profit of VND1.5 trillion ($75 million) in the first half, an equivalent of 55 per cent of its goal this year. Ho Chi Minh City-based DongA Bank made a pretax profit of VND676 billion in the first two quarters, equal to 52 per cent of 2011's target. Vietcombank, the country's third biggest bank by asset, earned around VND3 trillion in the first half. Small-cap … [Read more...]

Solution for businesses in shortage of invoices

Many businesses are anxious about the printing houses' delay in the invoice orders as the deadline for tax filing - April 1st - is approaching. SGGP Dau Tu Tai Chinh has caught up with Nguyen Trong Hanh, deputy head of the Ho Chi Minh City Tax Bureau, to interview about the issue. The deadline for tax filing is approaching, but many businesses have not received invoice books from printing houses (Photo:tuoitrenews) Dau Tu Tai Chinh Newspaper: Many businesses complaint that they have not received invoiced they had ordered from printing houses. Who is responsible for this problem? Nguyen Trong Hanh: After receiving complaints from businesses, the HCMC Tax Bureau has inspected all printing houses in the city and found out the printing house Lien Son defaulted on around 5,000 invoice orders, of which 1,500 orders could be shared to other printing houses. Lien Son cited many businesses placed orders with small volumes, but asked to print their own colorful logo, which took long time to … [Read more...]

Banks raise dollar saving rates to attract remittance inflow in Tet

Banks’ depositing interest rate are moving up on the fact that lenders are trying to attract strong remittance inflows that come in ahead of Tet, the Lunar New Year festival, general secretary Duong Thu Huong of the Vietnam Bank Association (VNBA) said in an interview with SGGP Dau Tu Tai Chinh magazine (Investment and Finance). Photo: cafeland Dau Tu Tai Chinh: What do you think about many experts’ concern that lenders rush to mobilize dollars as they need more Vietnam dong capitals desperately? Duong Thu Huong: Some banks rush to raise dollar saving rates in an effort to mobilize overseas remittance, which is often getting very strong at the end of every year. However, this move will lead the remainders in the bank system to follow in an effort to keep their clients. They also said lenders are trying to mobilize more dollars in order to meet the increasing demand of companies which import a large volume of goods in preparation for the country’s biggest … [Read more...]

Vietnamese salary ranks 8th in ASEAN

VietNamNet Bridge - Competition for high-quality labor will become tougher when the ASEAN Economic Community (AEC) is formed, and with relatively low salaries of the Vietnamese, ranked 8th in ASEAN, the trend of labor shifting from Vietnam to other countries may take place, said Ms. Ha Thi Minh Duc, Deputy Director of the International Cooperation of the Ministry of Labour, Invalids and Social Affairs. Duc said labor shifts among member states of the Association of Southeast Asian Nations (ASEAN), particularly skilled, high quality labor, had already been occurring. "The low-quality labor will suffer more pressure because the quality of our human resources is still poor. I believe that the outflow of labor from Vietnam to other ASEAN countries will be more than the inflow because the wages of Vietnam ranked only 8th in ASEAN," Duc said. Earlier, the General Statistics Office announced that the average income of Vietnamese workers (equivalent to labor productivity) in 2015 was … [Read more...]

Economists warn Vietnam to reduce reliance on FDI

One of the measurements of development in Vietnam, as in any country, is the level of foreign direct investment (FDI) say economists, because it represents a long-term commitment by foreign companies to the economy. However, these same economists also caution there are negative effects of FDI and they specifically warn that in Vietnam FDI companies may become the dominant force in the national economy, at the expense of their domestic counterparts. During calendar year 2015 they point out, the Foreign Investment Agency (FIA) reported registered FDI jumped 12.5% over the prior year to US$22.757 billion, which increase was primarily driven by Samsung and Malaysian based Janakuasa Sdn Bhd. Samsung Display Vietnam, which initially registered FDI of US$1 billion in Bac Ninh Province, expanded it to US$3 billion, while Janakuasa Sdn Bhd registered a new US$2.4 billion thermal power FDI plant in Tra Vinh Province. Meanwhile, the FIA noted FDI companies’ actual cash outlays for … [Read more...]

Challenging times for VN retail market

In the final days of 2015 a number of commercial centers and supermarkets opened their doors with the expectation of recording bumper sales and making a mark on Vietnam’s retail scene. After five years of searching for the right investment opportunity in Vietnam, on December 28 Emart (owned by Shinsegae from South Korea) officially opened its first hypermarket, Emart Go Vap, in Ho Chi Minh City. With total investment of $60 million it includes a supermarket on an area of 6,000 sq m, which sells various items such as fresh produce, household goods, electrical equipment, and fashion items, among others, and an area with restaurants, an amusement park, and a children’s education area, etc. Emart will build its second retail center in Tan Phu district, Ho Chi Minh City, when its application for a construction license is issued. On December 26, meanwhile, Saigon Co.op officially opened Co.opmart Nguyen Binh in the city’s Nha Be district. This is its 32nd Co.opmart in … [Read more...]

Life in limbo for migrant workers

Migrant workers become almost non-citizens once they move from their homeland to live and work elsewhere. Due to her family’s financial circumstances, at the age of 15 Ms. Kim Loan left school in her hometown in southern Binh Phuoc province to go to Ho Chi Minh City to find work. After a few years waiting tables at a restaurant, which was hard work and low paid, she became a street vendor. Each day she rides dozens of kilometers around the city on her bicycle from dawn to dusk before returning to her small rented room to cook dinner and sleep. In addition to having a tough job she also has limited access to social benefits and services. She’s been doing it for over ten years, but she earns more in the city than she could ever earn back home. Ms. Loan is just one of millions of domestic migrants and informal workers in Vietnam who have moved from their place of birth in search of a better life. Rural-to-urban labor migration is increasingly common as … [Read more...]

Food safety crucial for Vietnamese produce’s reputation abroad: official

Foreign markets, especially Trans-Pacific Partnership (TPP) agreement members, will take in Vietnamese fruit and vegetables this year, but the question now is how to supply enough volume while following strict safety standards, an official said. Fruit and vegetables are among the commodities Vietnam has an advantage in when it comes to the TPP. They made inroads into many demanding markets in 2015, including major TPP members like the US, Japan and Australia. (Photo for illustration) One of the most critical factors in Vietnam’s export of fruit and vegetables is to control chemical residues. Director of the Ministry of Agriculture and Rural Development’s Plant Protection Department Nguyen Xuan Hong said his agency will tighten control over the use of plant protection chemicals this year while encouraging the use of advanced technology to reduce the need for those substances. Eliminating the use of protective chemicals will help minimise not just production expenses, … [Read more...]

Food safety crucial for Vietnamese produce’s reputation abroad

Vietnamese and Japanese experts examine Cat Chu mango before exporting to Japan. -- Photo tuoitre.vn HA NOI (VNS) – Foreign markets, especially Trans-Pacific Partnership (TPP) agreement members, will take in Vietnamese fruit and vegetables this year, but the question now is how to supply enough volume while following strict safety standards, an official said. Fruit and vegetables are among the commodities Vietnam has an advantage in when it comes to the TPP. They made inroads into many demanding markets in 2015, including major TPP members like the US, Japan and Australia . One of the most critical factors in Vietnam's export of fruit and vegetables is to control chemical residues. Director of the Ministry of Agriculture and Rural Development's Plant Protection Department Nguyen Xuan Hong said his agency will tighten control over the use of plant protection chemicals this year while encouraging the use of advanced technology to reduce the need for those … [Read more...]

Private sector be active to drive growth

There were around 500,000 private firms in Viet Nam, generating 1.2 million jobs and contributing more than 40 per cent to GDP per year, statistics showed.— VNA/VNS Photo Vu Sinh HA NOI (Biz Hub) — Private firms should be more dynamic in developing linkages and production chains to sharpen competitive edges as the country was underway to integrate deeply into the global economy. Viet Nam recognised the private sector as an important economic driver and planned to raise stronger support for private firms to grow in the economy which witnessed disappointing reforms of State-owned enterprises (SOEs), even as the foreign direct investment (FDI) sector proved to be the most dynamic. According to the General Statistics Office, the FDI sector accounted for roughly 70 per cent of the country's export value and 20 per cent of the national gross domestic product. Vu Tien Loc, chairman of the Viet Nam Chamber of Commerce and Industry, said that while the FDI sector could reap … [Read more...]

Cam Xa Commune dubbed VN’s ‘electronic waste capital’

VietNamNet Bridge – Rapid changes in technology, changes in software, falling prices, and planned obsolescence, have resulted in a fast-growing buildup of electronic waste in Viet Nam. Illustrative image -- File photo Cam Xa Commune in the northern province of Hung Yen's My Hao District is considered to be the "e-waste capital of the country". E-waste, or electronic waste, describes end-of-life electrical goods, such as computers, televisions, printers, and mobile phones. According to the deputy chairman of the communal People's Committee, Nguyen Khac Toan, the work of collecting electronic waste began ten years ago and has developed very quickly. Today there are more than 100 area households employed in this work, which also provides jobs for hundreds of labourers in the region, he told Thoi Bao Kinh Doanh (Business Times) newspaper. Every day, dozens of cars and trucks from these households travel throughout the country's northern areas to collect e-waste. Hoang Van … [Read more...]

What price has Vietnam paid for FDI?

VietNamNet Bridge - Economists have warned that the foreign-invested economic sector may become dominant in the national economy. Even skeptics admitted that Vietnam had a successful year in 2015 in attracting FDI with a series of huge projects registered. Even skeptics admitted that Vietnam had a successful year in 2015 in attracting FDI with a series of huge projects registered. Samsung Display Vietnam, which was initially registered with the investment capital of $1 billion in Bac Ninh, has expanded with a new investment rate of $3 billion. Malaysia's Janakuasa Sdn Bhd registered a $2.4 billion project on the development of a 1,200 MW thermal power plant in Tra Vinh province. A huge urban area in HCM City is expected to arise in the future as a $1.2 billion project has been registered under a joint venture between two Vietnamese companies and the British Denver Power Ltd. According to the Foreign Investment Agency, in 2015, $22.757 billion worth of FDI was registered, an … [Read more...]

Vietnam buys Chinese goods, from onions to cars, why?

VietNamNet Bridge - The majority of Vietnamese say they don’t want imports from China, but Chinese goods still flood the Vietnamese market. China remains the largest import market for Vietnam in 2015. The General Statistics Office (GSO) estimated that Vietnam’s trade deficit with China reached $32.3 billion in the year, an increase of 12.5 percent, the sharpest increase so far. "All Chinese farm produce can be found in the Vietnamese market, from fruits to spices. They look very attractive to housewives and they are dirt cheap," a reader commented. The reader affirmed that she would not buy Chinese farm produce if she could find Vietnamese products of the same kind with the same price or a little bit more expensive. The General Statistics Office stimated that Vietnam’s trade deficit with China reached $32.3 billion in the year, an increase of 12.5 percent, the sharpest increase so far. "I believe Vietnamese don’t want Chinese products, but buying … [Read more...]

Large caps send VN-Index down

Kim Ngan These heavyweights together with VIC, MSN, HPG and CTG took away 1% from the main index. In contrast, VNM edged 2.6% higher at VND119,000 per share, thus adding 0.33% to the index. A selloff led blue-chips VSC, HBC, HNG and SBT to close at their floor prices. A number of speculative stocks performed well, with HQC jumping to its ceiling price. Given its good earnings results in 2015, HQC is expected to lure buyers in the next sessions. Viet Capital Securities Company (VCSC) said in a report that early trade was strong but gains were all erased in the afternoon and the market eventually lost. Large sell orders were attributable to profit-booking sentiment as investors are in Lunar New Year holiday mode. Overall, the HCMC market saw trading volume falling strongly against the session earlier to 107.3 million shares worth VND 1.7 trillion (US$79.7 million). The volume of matching transactions stood at 91.5 million shares, a drop of 7.3%. Meanwhile, the HNX-Index of the … [Read more...]

Vietnam businesses start 2016 with heavy shutdowns

Nearly 12,500 business ceased operations in January, up 27.5 percent from a year ago. Photo: Diep Duc Minh The General Statistics Office reported 12,456 business shutdowns in January--a 27.5 percent increase from 2015 that raised doubts about the government's remarkable GDP growth reports. During a press conference held last week, economist Pham Chi Lan said the government's claim to 6.68 percent growth in 2015 "did not make sense," given the dire difficulty faced by local businesses. The GSO reported 8,320 new businesses opened--a 21.2 percent year-on-year increase--but Lan said these businesses are half as big as they were a decade ago before calling the significant gap between shutdowns and openings "concerning." She said it's unlikely that all of these new businesses will survive 2016. Former Minister of Trade Truong Dinh Tuyen also said domestic firms now lack the strength to drive the country's economic growth. Tuyen said last year's exceptional growth was mainly due to the … [Read more...]

Strengthening relationship between Saudi Arabia and Vietnam

The Hanoitimes - On February 1, National Assembly (NA) Chairman Nguyen Shinh Hung talked with the Chairman of the Consultative Assembly of the Kingdom of Saudi Arabia Abdullah Bin Mohammed Ibrahim Al-Sheikh in Hanoi. NA Chairman told his guest that he believed the visit would further strengthen bilateral cooperation between the two countries and legislative bodies. He urged Saudi Arabian investors to increase their investment in Vietnam. He called for the early signing of bilateral economic and investment cooperation agreements to create legal framework for cooperation between the two countries’ enterprises. NA Chairman Nguyen Sinh Hung received top Saudi Arabian legislator Abdullah Bin Mohammed Ibrahim Al-Sheikh Saudi Arabia’s top legislator said his nation is keen to to strengthen its traditional relationship with Vietnam and considers the Southeast Asian an important partner in Asia. He expressed his hope that the two sides will increase high-level delegation … [Read more...]

Science and technology development crucial to avoid lagging behind

The Political Report of the 12th Party Congress has set targets to increase the total factor productivity contribution to 25-30 per cent of the economy’s growth and increase labour productivity by 4-5 per cent per year in the upcoming period. Le Bo Linh, Deputy Chairman of the Committee for Science, Technology and Environment under the National Assembly, highlights the importance of spurring science and technology development by making concrete goals to fill the gap in development between Vietnam and regional peers. What is your opinion on the government’s recent assessment that Vietnam has posted significant improvements related to science and technology research and applications? It is encouraging that we have witnessed noticeable changes in respect to science and technology (sci-tech) development and application in the past few years. Vietnam’s labour productivity growth currently leads the ASEAN region. General Statistics Office (GSO) figures show that … [Read more...]

Chinese truck sales hit by low quality

HA NOI (VNS) — The import of made-in-China automobiles to the Vietnamese market were successful in 2015 as their prices were much lower than others in the same segment. However, according to phaluattp.vn, the sales of vehicles imported from China has recently been slow due to their inferior quality. Statistics from the General Statistic Office showed that the last half of 2014 and the first half of 2015 was the fastest growth period of made-in-China automobiles in Viet Nam. Even though, sometime in 2015, the volume of imported automobiles was nearly 300 per cent higher than that of previous year. Many of the imported vehicles during that time were trucks, tractor trucks and various semi-trailers. According to reports, vehicles from China such as Dongfeng, Sinotruck, FAW, and JAC, in addition to Chenglong, were imported at two-thirds and even half the price as compared with similar locally-assembled units and those imported from South Korea and Japan. In particular, Chinese … [Read more...]