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 holiday. It may also come … [Read more...]

Environmental tax causes fuel prices to soar in Vietnam

It is said that we should never tell the same lie twice, but this seems to be the case of the argument that a"higher environmental tax does not mean higher fuel prices," which was put forward during both of Vietnam’s fuel price increases over the last two weeks. Vietnam’s petrol prices have gained 18 percent in 15 days, now selling at VND20,430 a liter following the latest VND1,200 per liter hike on Wednesday. (US$1 = VND21,770) The Ministry of Industry and Trade and its finance counterpart said the price hike was inevitable thanks to the rise on the global market, and that the new VND3,000 per liter environmental tax is not to blame. The tax used to be only VND1,000 before the higher rate was applied on May 1. Along with the new environmental tax, the Ministry of Finance cut the fuel import duty to 20 percent from 35 percent, saying it would thus help keep retail fuel prices unchanged. But the two price hikes this month prove the opposite. Every liter of … [Read more...]

Statistics Office’s inaccurate prediction about trade deficit behind dollar price hike?

VietNamNet Bridge - The predicted high trade deficit in the first four months of the year reportedly put pressure on the exchange rate and led to the State Bank’s decision to devalue the VND by one percent on May 7. After three days of the dollar price soaring, the market unexpectedly cooled down on the afternoon of May 15. This was attributed to the State Bank’s statement that it was ready to sell dollars to intervene in the market if necessary. The statement was made at the same time when the General Department of Customs (GDC) released a report on the lower-than-expected trade deficit in the first four months of the year. The department reported that in April 2015 Vietnam exported more than it imported, with a trade surplus of $900 million. This helped narrow the trade deficit of the country in the first four months of the year to $2.07 billion. The General Statistics Office (GSO) estimated that the trade deficit would be as high as $3 billion in the first four … [Read more...]

Vietjet Air to run HCM City-Taipei daily flights

VGP - Viet Nam’s leading low-cost carrier VietJetAir will increase the number of flights between Ho Chi Minh City and China's Taipei on a daily basis from June 18. Flights will depart from Tan Son Nhat International Airport in HCM City at 14:30 local time and return flights will be at 20:00 (local time). Flight duration is around three hours and 25 minutes. Previously, the return flights are conducted five times in a week. The low-cost carrier will offer ticket fares starting atVND210,000 ($10) for return flights. Recently, Vietjet Air has increased the number of its Airbus A320 fleet to 24, to run additional 1,500 flights with some 270, 000 discounted fares to meet higher travel demand this summer. Customers can purchase tickets through its website www.vietjetair.com,www.facebook.com/vietjetairvietnam, and ticket offices nationwide through various payment methods. VietJet Air is expected to continue expanding its flight network in the near future by adding flights from Ho … [Read more...]

9 in 10 foreign tourists are happy with their experience in Vietnam

Amid unabated criticism about the quality of tourist services in Vietnam, the Vietnam National Administration of Tourism has released a survey showing that more than 94% of foreign visitors to the country rank their experience as "good" to "very good." Less than 0.5% of the respondents said it was "poor," according to the survey conducted through direct interviews with 13,980 tourists speaking six different languages, and questionnaires sent to 1,000 travel companies and 63 tourism departments. The survey also found that 32.98% of foreign tourists returned to the country at least once. Of the return tourists, 18.1% came back for the second time, and nearly 5.8% for the third time. While the tourism administration, often known as VNAT, did not provide comparable data, an EU-funded survey among English-speaking tourists last year pegged the return rate at 11.2%. For comparison, around 55% of tourists in Thailand are reportedly return visitors. With its latest survey, VNAT also … [Read more...]

9 in 10 foreign tourists are happy with their experience in Vietnam: survey

Foreign tourists in Ho Chi Minh City. Photo: Dinh Quan Amid unabated criticism about the quality of tourist services in Vietnam, the Vietnam National Administration of Tourism has released a survey showing that more than 94 percent of foreign visitors to the country rank their experience as "good" to "very good." Less than 0.5 percent of the respondents said it was "poor," according to the survey conducted through direct interviews with 13,980 tourists speaking six different languages, and questionnaires sent to 1,000 travel companies and 63 tourism departments. The survey also found that 32.98 percent of foreign tourists returned to the country at least once. Of the return tourists, 18.1 percent came back for the second time, and nearly 5.8 percent for the third time. While the tourism administration, often known as VNAT, did not provide comparable data, an EU-funded survey among English-speaking tourists last year pegged the return rate at 11.2 percent. For comparison, around … [Read more...]

Vietnam’s imports of Chinese vehicles nearly triple in Jan-Apr

Discussions on the Vietnamese automobile industry may be overshadowed by upcoming tax exemptions which cars imported from ASEAN will enjoy in 2018, but Chinese-made vehicles have stolen the spotlight with shocking import statistics released last week. Vietnam imported 8,860 vehicles from China in the first fourth months of this year, a massive 289 percent increase from the same period last year, according to the latest customs data. In total more than 35,000 completely built cars, collectively worth US$880 million, were shipped to the Southeast Asian country in the first four months of this year, a 131 percent increase in volume and 180 percent rise in value year on year, the Vietnam Customs said Friday. Most of the imports are cars with fewer than nine seats, accounting for 13,200 units, compared to 13,000 trucks. The growth from the Chinese market was the strongest among other countries, from which Vietnam also imported more complete cars in the Jan-Apr period, according … [Read more...]

Over 3,000 bitten by stray dogs in Vietnam province amid rabies outbreak

A stray dog was killed in Thai Nguyen Province over rabies suspicions. Photo: Khanh An Thai Nguyen health authorities have reported an increase in rabies infection after many people were bitten by stray dogs. "Four people have died due to rabies this year, including a three-year-old boy. He was attacked and badly injured by a stray dog and died a few days after being treated," Pham Quyet Thang, deputy director of the preventive health center in the northern province, said. The center reported that 3,145 people in the province have been bitten by stray dogs between January and March and that it has repeatedly received reports about stray dogs suspected of being rabid. Thang said local authorities have issued warnings about rabies and set up task forces to kill suspicious-looking stray dogs. The center has set up seven stations to provide rabies vaccines. "The treatment cost of VND1-2 million has been a major problem, leading to painful and unwanted consequences," Thang said. Pham … [Read more...]

US to raise funds for 25,000 helmets for Vietnamese children

Ted Osius (L), US Ambassador to Vietnam and Greig Craft, President of the AIP Foundation at a ceremony to launch the partnership in Hanoi on May 14. Photo credit: AIP Foundation The US Department of State and the Asia Injury Prevention Foundation have signed a Memorandum of Understanding to launch the public-private partnership which will raise funds to improve traffic safety for children in Vietnam. Under the agreement signed in Hanoi on Thursday, AIP and the US Embassy in Hanoi will organize events and helmet donations to support the pre-existing program Helmets for Kids. The agreement is part of activities to celebrate the 20th anniversary of diplomatic relations between the US and Vietnam. According to AIP, the partnership aims to provide educational activities and helmets to 25,000 children from at-risk schools across the country. It is a unique platform combining expertise from the US and Vietnamese governments, NGOs, and the business sector to address a mutual public health … [Read more...]

Vietnam first quarter trade deficit better than expected

(VOV) -Surging exports in the latter half of April helped contain Vietnam’s trade deficit for the four months leading up to May to a manageable figure, according to recently released statistics from the General Statistics Office of Vietnam (GSO). The country’s total export revenue for the January-April period jumped 6.9% on-year to US$49.69 billion while its imports surged 16.6% to US$51.77 billion resulting in a trade deficit of US$2 billion. The GSO attributes the better than expected figures to a stronger export picture in the latter part of April, resulting in a much smaller deficit than the US$3 billion it had forecast. Export revenue took an unanticipated upturn during the second half of April (nearly US$7 billion) with telephones and components, crude oil, garment, footwear and computer revenue tallies showing robust growth. Meanwhile for the second half of April imports dipped 15.6% to US$6.08 billion. Key imported products witnessing decline were computers, … [Read more...]

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 … [Read more...]

Vietnam Jan-Apr trade deficit nearly $1bn smaller than estimates, but experts unhappy

The General Statistics Office (GSO) and Vietnam Customs do not seem to see eye to eye when it comes to calculating the country’s balance of trade, as there is an almost US$1 billion disparity between their statistical data. The GSO announced on its website on April 28 that Vietnam’s trade deficit in the January – April period is estimated at $3 billion, with exports standing at $50.1 billion against $53.1 billion worth of imports. The office also provided a detailed report, saying imports of many commodities, including automobiles and machinery and equipment, have soared in the first four months of the year, contributing to the huge trade deficit. On Thursday, the Vietnam Customs released its own report, pointing out that the trade deficit is only $2.07 billion, nearly 45 percent lower than the GSO estimate. Le Thi Minh Thuy, head of the GSO department in charge of trade and service statistics, said her office always releases three kinds of data, namely … [Read more...]

Trade deficit-exchange rate formidable problem for VN

According to the Vietnam General Statistics Office (GSO), trade deficit escalated to US$3 billion in the first four months this year, a three year record high. Especially, the trade gap from China approximated US$10.7 billion. The State Bank of Vietnam has recently lifted the foreign exchange rate between the Vietnamese dong and US dollar, which is said to limit the trade deficit. However experts said it unlikely to work much because the foreign exchange rate is just a part of the problem. In the first four months, export turnover reached US$50.1 billion, up 8.2 percent over the same period last year. Meantime, import turnover hit US$53.1 billion, up 19.9 percent, creating a trade deficit of US$3 billion. Vietnam enjoyed a trade surplus of US$0.68 billion in the same period last year. Imports from China continued surging to touch US$15.6 billion, a year on year rise of 26 percent while exports to this market brought only US$4.9 billion, down 1.2 percent. Trade gap from this … [Read more...]

Trade deficit-exchange rate formidable problem

According to the Vietnam General Statistics Office (GSO), trade deficit escalated to US$3 billion in the first four months this year, a three year record high. Especially, the trade gap from China approximated US$10.7 billion. Refrigeration appliances are imported in large volume to Vietnam from China (Photo: SGGP) The State Bank of Vietnam has recently lifted the foreign exchange rate between the Vietnamese dong and US dollar, which is said to limit the trade deficit. However experts said it unlikely to work much because the foreign exchange rate is just a part of the problem. In the first four months, export turnover reached US$50.1 billion, up 8.2 percent over the same period last year. Meantime, import turnover hit US$53.1 billion, up 19.9 percent, creating a trade deficit of US$3 billion. Vietnam enjoyed a trade surplus of US$0.68 billion in the same period last year. Imports from China continued surging to touch US$15.6 billion, a year on year rise of 26 percent while … [Read more...]

Realty man thinks Vietnam apartments ‘cheapest in the world’

A businessman behind a real estate company based in Ho Chi Minh City believes apartments in Vietnam are selling at the lowest prices on earth, fueling a controversial subject among local property firms. While Nguyen Xuan Quang, chairman of Nam Long Investment Co. JSC, admits that local salaried workers have to save for a long time to afford an apartment or a house, he does not think it is a sound reason to say that properties in Vietnam are too expensive. "Vietnam’s housing prices are the cheapest in the world if you apply a fair calculation," he was quoted by VnExpress as saying on the sidelines of the company’s shareholder meeting in Hanoi on Thursday. While an affordable apartment in Ho Chi Minh City fetches only US$30,000-$40,000, a similar flat in other cities of the same scale as the Vietnamese city, such as Bangkok, Hong Kong, or Manila is $300,000, Quang argued. The chairman claimed that Vietnam’s real estate market is facing a huge challenge of … [Read more...]

What’s behind the high export figures?

VietNamNet Bridge - High export turnover and high export growth rate are figures usually cited in government agency reports as proof of economic development. However, there are many problems behind the figures. FIEs are the main exporters Vietnam has been maintaining a two-digit export growth rate over many years. However, this does not show the development of Vietnamese businesses, because the majority of exports come from foreign-invested enterprises (FIEs). FIEs, which have been scaling up their business in Vietnam, make up 70 percent of total export turnover. According to the General Statistics Office (GSO), Vietnam exported $50.1 billion worth of products in the first four months of the year, an increase of 8.2 percent over the same period last year. Of this amount, $15 billion went to Vietnamese enterprises’ pockets, while the other $35.1 billion was from FIEs and crude oil exports. A report from the General Department of Customs (GDC) showed that 10 export product … [Read more...]