BUSINESS IN BRIEF 8/1

Retail industry draws investors   Foreign and domestic retailers plan to open more shops and supermarkets in Viet Nam this year and beyond, buoyed by the potential market of 88 million population. Big C plans to increase its supermarkets from 19 to 30 this year and Metro hopes to open 16 new supermarkets to make it 35 nation-wide, according to Sai Gon Dau Tu newspaper. Significant investment plans by South Korean and Japanese retailers also showed confidence in the market's potential. South Korea's Lotte Mart had secured investment capital of US$50 million for its plan to open 60 supermarkets in the country by 2020. Japan's Aeon retail group was due to open its 82ha shopping complex in HCM City, the $109 million "Celadon City", early next year, another later in the year and one in Ha Noi a year later. The group planned to open 20 shopping centres nation-wide by 2020. New player to Viet Nam, C.T Group opened its first S.Mart in Ha Noi in December. Maximark representative … [Read more...]

New foreign ownership rule to shake up real estate market

Viet Nam's real estate market will become more competitive within the region because foreigner property rights will soon be allowed, Savills Viet Nam said in a statement on November 26. The amended Housing Law that the National Assembly adopted on November 25 takes effect on July 1, 2015. It allows foreigners to lease and own a maximum of 30 per cent of an apartment building or a maximum of 250 villas or townhouses. This effectively provides a registered 50-year leasehold title. Savills said the lengthily-discussed regulations had the full support of the country's property industry. The amendment follows the relaxation on overseas Vietnamese, who now have full and unfettered ownership rights. In 2013, overseas remittances increased by 10 per cent year-on-year to US$11 billion, and much of this can now be invested effectively and confidently in real estate. Foreigners now have an enforceable title that, at the same time, opens up a far deeper purchaser pool. This will add greater … [Read more...]

Discounts may revive flagging property sales

HCM CITY (VNS)— While Government policies are yet to make a significant impact on the country's frozen real estate market, experts argue that discounts may provide property firms with a much needed boost to sales. The suggestion follows recent moves by two HCM City-based property firms which slashed prices for high-end villas and apartments in District 7 by half, to revive the sluggish market. Novaland Group on Sunday announced that prices for North Tower apartments, the third phase of the Sunrise City project, would be around VND27 million (US$1,280) per square metre, instead of initial price of VND50 million ($2,380). The move puts apartment prices around VND1.8 billion ($85,700) instead of the usual VND4-5 billion ($190,470-238,100). "In this tough period of the market, we have to prioritise project liquidity," said Novaland General Director Phan Thanh Huy. Last Friday, Phat Dat Real Estate Development said in a notice that the company had cut average prices for apartments and … [Read more...]

Oversupply chokes property market

HA NOI (VNS)— Loan defaults and high inventories were the greatest challenges facing the real estate market in the nation's major cities in the coming year, Viet Nam Real Estate Association general secretary Phan Thanh Mai told a conference held here this week. The Van Quan apartment blocks are reflected in a lake in Ha Noi. The real estate market is facing challenges from loan defaults and an oversupply of properties. — VNA/VNS Photo Bui Tuong "Property developers are faced with a number of difficulties, including bad debts and high inventories, caused challenges not only for themselves but for businesses in related sectors, including construction and building materials," Mai said. Property firms have been one of the sectors seeing the biggest decline on the stock market this year and the lowest business results, he added. By the end of the third quarter of this year, developers in the nation's two leading cities of Ha Noi and HCM City had found buyers for only 5-7 per cent of … [Read more...]

BIDV credit programme to spur property market

HA NOI — The Bank for Investment and Development of Viet Nam (BIDV) plans to launch a credit package worth VND4 trillion (US$192.3 million) this month to help prop up the ailing real estate market, the bank's chairman Tran Bac Ha has told the media. "The biggest difficulty for the property market now is weak demand, thus, we have drawn up this package to stimulate demand on the market," he said. Ha said the bank would establish a linkage with investors, contractors and building material suppliers to implement the package. Individuals or households buying a house at projects financed by the BIDV could borrow a money amount worth up to 85 per cent of the house's value with a borrowing term of up to 15 years. They would enjoy a preferential interest rate of 16 per cent a year. They would also be assisted by the bank to approach investors to select suitable apartments in Ha Noi and HCM City, and given interior decoration special offers. Investors, tenderers and material suppliers … [Read more...]

Garment makers optimistic for 2013

HA NOI (VNS)— Despite predictions that the domestic economy would continue to face difficulties, garment companies remain optimistic about growth this year. Yarn being produced at Ha Nam Texitle Co in Chau Son Industrial Zone. Despite predictions that the domestic economy will continue to face difficulties, garment companies remain optimistic about growth this year. — VNA/VNS Photo Danh Lam The HCM City-based Century Synthetic Fibre Joint Stock Co (CSF), one of the country's large garment enterprises, recently approved its business plan for 2013, targeting a significant boost in revenue. "We would strive to make VND1.6 trillion (US$78 million) in revenue this year compared to last year's figure of VND995 billion," CSF chairman Dang Trieu Hoa told online Dau Tu newspaper. "This year will be an important time for our company as we will put the second phase of our fibre plant in Trang Bang Industrial Zone into operation," he said. That will help increase our annual production … [Read more...]

Handicrafts to penetrate Japanese market

HA NOI (VNS)- A group from the ASEAN-Japan Promotion Centre on Trade, Investment and Tourism will visit HCM City and nothern Ninh Binh province from January 13 to 19. It aims to support local handicraft and fine-arts enterprises in improving the quality of their products to meet the demands of Japanese consumers and penetrate the Japanese market.-VNS … [Read more...]

Vietnamese tycoons pour money into overseas projects

VietNamNet Bridge – More and more wealthy Vietnamese businesspeople have been looking for investment opportunities overseas, but the results have been less than satisfactory. In late 2014, ThaiVietjet officially joined the world’s aviation market. This is a joint venture between Thai Kan Air which contributed 51 percent of capital, and Vietjet Air, a "rising star" in Vietnam, which holds a 49 percent stake. Also, in late 2014, Vietnamese local newspapers ran stories about a $1.8 billion project in Myanmar to which Viettel, the Vietnamese military telco, contributed $800 million. Viettel, one of the three largest telecom groups in the country, aims to conquer overseas markets as part of its business strategy. Prior to that, Viettel officially launched Bitel, a mobile network in Peru, in October 2014, following successful projects in Laos, Cambodia, Haiti, Mozambique, East Timor and Cameroon. In 2014 alone, Viettel made several major outward investment deals. These … [Read more...]

FDI info system launched

Hanoi, December 18 (VNA) - Director of the Ministry of Planning and Investment's Foreign Investment Agency Do Nhat Hoang spoke to Dau Tu (Investment) newspaper about how the new national information system for foreign investment would benefit investors. *What is the national information system of foreign investment? The establishment of the national information system of foreign investment is carried out by the Ministry of Planning and Investment following the Prime Minister's Decision 48/2009/QD-TTg about applying information technology at State agencies. The system, which is nearly complete, aims to standardise and computerise investment procedures and the investment process of foreign direct investment (FDI) firms and FDI management agencies. Most importantly, a national database of FDI firms and projects will be set up. *Is this the first national FDI database? Who will benefit from the system? This is the first national database of FDI. It will be an effective support … [Read more...]

FIA sets up support section for Japan businesses

(VOV) - A support section under the Foreign Investment Agency (FIA) made its debut on November 21 to support Japanese businesses to learn about investment opportunities in Vietnam, said Deputy Minister of Planning and Investment Nguyen Van Trung. Toma Masaaki, Second Secretary at the Japanese Embassy in Vietnam said in recent times Japanese businesses have heavily invested in Vietnam in such fields as manufacturing, processing, agriculture and technology. He expressed his wish that the establishment of the new section would further promote its role in supporting Japanese businesses in Vietnam. Do Nhat Hoang, FIA Director also introduced about the section, which he said would update Japanese businesses with useful information, answer queries and provide legal consultancy and investment formalities. At present, Japan ranks fourth with total newly-registered capital and increased capital of US$1.66 billion, making up 12.1% of the total foreign investment capital in Vietnam. According … [Read more...]

FIA sets up desk to support Japanese businesses

(VOV) -The Japan Desk under the Foreign Investment Agency (FIA) made its debut on November 21 to support Japanese businesses to learn about investment opportunities in Vietnam, said Deputy Minister of Planning and Investment Nguyen Van Trung. Toma Masaaki, Second Secretary at the Japanese Embassy in Vietnam said in recent times Japanese businesses have heavily invested in Vietnam in such fields as manufacturing, processing, agriculture and technology. He expressed his wish that the establishment of the new section would further promote its role in supporting Japanese businesses in Vietnam. Do Nhat Hoang, FIA Director also introduced about the section, which he said would update Japanese businesses with useful information, answer queries and provide legal consultancy and investment formalities. At present, Japan ranks fourth with total newly-registered capital and increased capital of US$1.66 billion, making up 12.1% of the total foreign investment capital in Vietnam. According to … [Read more...]

RoK’s companies get support to invest in Vietnam

The launch of the Korea Desk. (Photo: CPV) (CPV) - The Ministry of Planning and Investment's Foreign Investment Agency (FIA) on November 18th introduced a division to help Korean businesses operate and expand their operation in Vietnam (Korea Desk). The Korea Desk aims to assist Korean businesses to study investment opportunities, introduce favorable locations to implement projects, disseminate information on process and procedures to get investment licenses and solve problems during their operation in Vietnam. FIA Head, Do Nhat Hoang, said that the Korea Desk contributes to supporting information and enhancing market access capacity for Korean small and medium-sized enterprises. It is also a bridge between Korean enterprises and Vietnam's organs, ministries, branches and localities. In addition, it collects ideas of Korean businesses when they meet difficulties during the process of studying the Vietnamese market or investing in the country. Mr Jeon Dea Joo, Ambassador of the … [Read more...]

Hanoi conference discusses anti-transfer pricing measures

A conference on transfer pricing, including strategies for tax management agencies to tackle the issue, was held in Hanoi on October 29. Managers and experts said pricing transfer and tax avoidance is a global issue. Nguyen Van Phung, Deputy Director of the Department for Tax Administration of Major Corporations under the Ministry of Finance's General Department of Taxation, said enterprises tend to evade tax payments by exploiting loopholes in the legal system. The challenge to management agencies is how to detect law violations in such behaviours. Director of the Ministry of Planning and Investment's Foreign Investment Agency Do Nhat Hoang said it is essential to uncover evidence of transfer pricing, which aims to dodge tax duties, and penalise violators according to the legal framework. Economic expert Nguyen Minh Phong presented his analysis of the issue, saying that transfer pricing is used by enterprises to avoid tax, which distorts the investment climate, reduces the … [Read more...]

Passenger doors for Boeing 777 to be produced in Vietnam

Boeing 777 aircraft (Photo: MHIVA) A new factory to assemble passenger doors for Boeing 777 aircraft was opened by MHI Aerospace Vietnam Ltd Co. (MHIVA), a subsidiary of Japan 's Mitsubishi Heavy Industries Ltd (MHI), on October 22. According to MHI Senior Vice President Shigefumi Tatsumi, MHIVA is one of the two foreign-owned manufacturers of Boeing components in Vietnam, the other being Japan's Nikkiso Company, which has been running its operations since 2010. The newly constructed factory, which occupies 6,500m2 of floor space in Hanoi 's Thang Long Industrial Park , is now capable of producing 4-8 doors per month and the capacity is expected to increase to 32 in the future. Around 100 skilled Vietnamese workers have been recruited to the team. MHIVA General Director Yoshiki Ito said that each door is made out of 6,500 pieces produced in Japan. Once completed, the doors will be transported to Boeing's factory in the United States for the final stage of assembly. He added … [Read more...]

Agriculture to eliminate “bottlenecks” in bid to attract FDI

Agriculture to eliminate "bottlenecks" in bid to attract FDI (Photo: VNA) Agriculture, one of the most competitive economic sectors in Vietnam, needs to develop a long-term strategy to attract foreign direct investment (FDI), which has fallen in recent years. Fifteen years ago, FDI inflows into the agriculture, forestry and fishery sector accounted for 15 percent of the country's total FDI, but this declined to less than 0.5 percent in the past three years, Vice Chairman of the Vietnam Association of Foreign-Invested Enterprises Nguyen Van Toan said. Statistics from the Ministry of Planning and Investment showed that the total new FDI capital to Vietnam increased to 21.6 billion USD in 2013 from 14.7 billion USD in 2011. However, the amount of capital invested in agriculture declined to 86.7 million USD in 2013 from 130.7 million USD in 2011. As of September this year, the agricultural sector had 514 FDI projects worth 3.63 billion USD, accounting for 3.01 percent of total FDI … [Read more...]

Seminar focusses on Vietnam’s support industries

Samsung's factory in Thai Nguyen (Photo: VNA) A seminar on the development of support industries in Vietnam took place in Hanoi on September 11, offering a chance for businesses to discuss and increase their understanding of the issue. The event was jointly organised by the Ministry of Planning and Investment, the Vietnam Association of Foreign Investment Enterprises and the Republic of Korea's Samsung Group. Director of the Foreign Investment Agency Do Nhat Hoang stated that Vietnam was prioritising its support industries, with the aim of increasing them by 33 percent by 2020. According to General Director of the Samsung Complex Shim Won Hwan, the Vietnamese Government's preferential policies, along with practical measures to develop support industries, would facilitate the operations of FDI enterprises and domestic suppliers. Samsung would continue to help Vietnam improve human resources and develop the industries, contributing to the long-term development of the Vietnamese … [Read more...]

Seminar explores Vietnam-RoK support industry cooperation

(VOV) -Vietnamese and Republic of Korean (RoK) executives examined the possibility of strengthening cooperation in developing the support industry in Vietnam, at a seminar in Hanoi on September 11. Speaking at the seminar, Deputy Minister of Planning and Investment (MPI) Nguyen Van Trung stressed the RoK is one of Vietnam's leading partners in the fields of investment, trade, economy, culture, and tourism. The Ministry is committed to creating favourable conditions for Vietnamese support industry enterprises to get involved in the production chain of Samsung group and other foreign investors in the future, he said. Head of the Foreign Investment Agency Do Nhat Hoang in turn said the development of the support industry is one of the top priorities of the Vietnam Government. By 2020 the goal is to give the industry a facelift and multiply the number of domestic businesses in the industry to over 33% of market share, Hoang said. The support industry also plays a vitally important … [Read more...]

Strengthening Cooperation with Kanagawa Prefecture, Japan

Government representatives and business groups from Kanagawa Prefecture, Japan recently paid a working visit to Vietnam. The visit is aimed at further tightening the trade and investment relations between Vietnam and Japan. Mr Yuji Kuroiwa, Kanagawa Governor also expressed his desire to establish an industrial park in Vietnam very soon. In a meeting with government and business delegation of Kanagawa, Prime Minister Nguyen Tan Dung reaffirmed that Vietnam always wants to strengthen strategic partnership between the two countries. The Government of Vietnam will support and create favourable conditions for all cooperation activities between Vietnam's localities and Kanagawa Prefecture, contributing to the overall cooperation between the two countries. At the meeting, Yuji Kuroiwa, proposed the establishment of an industrial park of Kanagawa in Vietnam. Mr Yuji Kuroiwa said that Kanagawa is a national strategic zone of Japan with advantages in agricultural techniques. With the existing … [Read more...]

BUSINESS IN BRIEF JULY 17

Minister visits firms hit by anti-China riots Minister of Planning and Investment Bui Quang Vinh yesterday visited foreign companies affected during the anti-China riots in mid-May in Binh Duong Province. He was accompanied by local leaders to the Viet Nam-Singapore Industrial Park in Thuan An township. Le Thanh Cung, chairman of the Binh Duong People's Committee, told Vinh that the province had acted on the Government's instructions and provided compensation and support to firms that suffered losses. It has so far announced recompense worth VND286 billion (US$13.6 million) for 37 enterprises and support policies in a first phase. The amount would be deducted from land rental, cost of services, income and import taxes, and others, and procedures are being completed to compensate the remaining companies and would be announced next month, he said. Thanks to the prompt assistance, the affected firms have resumed operations, he said. Vinh praised the prompt action and also approved … [Read more...]