New expansion wave in banking sector begins

VietNamNet Bridge - Commercial banks are rushing to set up more branches and transaction offices after a long period of interruption. On the first working day after the Tet holiday, Viet Capital Bank announced it was seeking 200 new workers, including key personnel for the post of bank branch director. Just in the short time from the fourth quarter of 2015 to early 2016, many branches and transaction offices were licensed. Only after five years have Vietnamese witnessed a new wave of banks expanding their networks. Thoi Bao Kinh Te Viet Nam estimated that over 20 commercial banks were licensed to open nearly 100 new bank branches and transaction offices within the first two months of 2016. The Viet Capital Bank, for example, plans to employ 200 workers because it has a license from the State Bank’s Governor to open 10 more branches. Other commercial banks have been allowed to open 6-10 more branches each. In late 2015, some banks got licenses to set up new many … [Read more...]

Youth Month honours 85th birthday of union

Several thousand students and young people across the country will participate in the 2016 Youth Month this month to celebrate the 85th birthday of Ho Chi Minh Communist Youth Union. The month aims to encourage young people develop their study, social and charity activities. It focuses on helping the youth to work more for the community. Thanh Nien (Young People) Youth programme hosts book giveaway HCM City's Youth Union programme, called Giving Books for Rural Children, has presented nearly 36,000 books worth VND857 million (US$40,000) to students from 16 primary schools in rural districts. The books were donated by distributors, publishers, bookstores and libraries. The union worked with its partners, including the Department of Education and Training and Viet Nam Publishing Association, to expand the programme last year. Tuoi Tre (Youth) More than 15,000 workers sent overseas The country sent more than 15,605 labourers, including 6,695 women, to work overseas in the first … [Read more...]

Business fields that face the biggest challenges in 2016

VietNamNet Bridge - Natural rubber, sea shipping, pharmaceuticals, seafood, oil & gas, and steel enterprises are expected to be under pressure this year, according to securities firms. The forecast calls for continued fall of the oil price on the world market, global recession, and an economic decline, all of which will affect Vietnam. Nguyen Duy Hung, president of the Saigon Securities Incorporated (SSI), in an interview with Thoi Bao Kinh Te Viet Nam, said the Chinese economic crisis, if it occurs, will be the biggest threat. He said that the influences caused by the Chinese economic crisis would be even more serious than that caused by the crisis in the US in 2008. While the US economy recovered with suitable policies, the possibility is lower for China. 2016 is expected to be an unlucky year for natural rubber manufacturers as the rubber price is still at the low level. Natural rubber, sea shipping, pharmaceuticals, seafood, oil & gas, and steel enterprises are … [Read more...]

Ministry considers upgrade of Highway 3

The Project Management Board 2 has asked permission from the Ministry of Transport to upgrade the Ha Noi – Thai Nguyen Highway 3 to an expressway under the Build-Operate-Transfer (BOT) mode. The total investment is more than VND3.2 trillion (USVND3,285,230 million) for expansion and reinforcement of the road surface, installation of an intelligent traffic system, and toll stations. The construction is expected to begin in the third quarter. The expressway, which will have speed limits of 120km per hour, will be completed in December 2017. DAU TU (Vietnam Investment Review) HCM City Book Fair to open in March The HCM City People's Committee will host the ninth bi-annual HCM City Book Fair at District 1's Le Van Tam Park from March 21-27. The fair themed "Book, Culture, Integration and Development" will attract nearly 200 domestic and foreign publishing houses and book distributors. It will feature 500 stalls showcasing works of economy, history, science, technology, foreign … [Read more...]

Coastal erosion at a serious level in Ca Mau

Coastal erosion in the Cuu Long (Mekong) Delta province of Ca Mau could cause the collapse of 40 kilometres of dyke, according to the provincial Department of Agriculture and Rural Development. The province has built embankments in these areas but does not have enough funds to build more. On Sunday, tides and strong waves eroded several dyke sections in Tran Van Thoi District. Sai Gon Giai Phong (Liberated Sai Gon) Rural areas in Hai Phong to receive $43m Hai Phong this year will allocate an additional VND966 billion ($42.9 million) to assist 20-25 more communes to reach all 19 criteria including transportation, irrigation, electricity, schools and others in the national new rural area programme. Last year, 48 communes in the city achieved the criteria. Dau T u (Viet Nam Investment Review) Hau Giang to get solar power plant The People's Committee of the Cuu Long (Mekong) Delta province of Hau Giang approved a project to build a solar power plant with capacity of 36MW in Phung … [Read more...]

Industry expands in HCM City

Workers process confectionery at Bibica Company in HCM City. HCM City's industrial development index in 2015 rose 7.9 per cent. — VNA/VNS Photo An Hieu HCM CITY (Biz Hub) — The HCM City industrial development index last year saw higher growth than in previous years, especially by four key industries, with the ratio of processing and manufacturing sectors increasing and labour-intensive and polluting industries decreasing. According to the municipal Department of Industry and Trade, the industry development index rose 7.9 per cent last year compared to 7 per cent in 2014. The processing and manufacturing sectors grew 8 per cent, spearheading the rise in the index. It enabled the creation of 2 per cent more new jobs compared with 2014. The number of new businesses rose by 29 per cent while closures fell by 3.9 per cent. Last year the share of the city's four key industries in overall manufacturing output increased marginally to 60 per cent. Of this, engineering and … [Read more...]

Productivity key for firms

HA NOI (VNS) — Businesses need to focus on increasing Total Factor Productivity (TFP) as it is the key element for sustainable development, experts urged. In economics, Total Factor Productivity (TFP), also called multi-factor productivity, is the portion of output not explained by the amount of inputs used in production. As such, its level is determined by how efficiently and intensely the inputs are utilised in production. According to Thoi Bao Kinh Te Viet Nam (Vietnam Economic Times), TFP, a real driver of sustainable growth within an economy, will be increased due to the efficient ultilisation of investment capital power and labour capacity, through the application of advanced science and technology, innovation of production management techniques and improvement of labour force quality. At a conference on "TFP and its application in corporate governance" held by the Foreign Trade University (FTU) on January 19 in Ha Noi, experts said TFP is the most crucial factor to … [Read more...]

Can Tho opens Mekong’s biggest bus station

The Cuu Long (Mekong) Delta's biggest bus station was put in use on Monday in Can Tho City's Cai Rang District. The 10-ha project, of which four ha have been completed, has an investment fund of VND200 billion (US$8.9 million). It is expected that the station will receive 40,000 passengers or 1,000 bus arrivals a day. Nguyen Van Manh, deputy general director of Can Tho Bus Terminal Company, said about 50 per cent of vehicles, or about 200 buses, will travel from the 91B bus station to the newly built station. Sai Gon Giai Phong (Liberated Sai Gon) Quang Binh residents rate public services Residents in Quang Binh province will give feedback to public services they receive from local authorities by giving marks through an M-Score system, to improve services from local officials. The project, begun by the province's People's Committee with financial support UK-based Oxfam, is being carried out between January 2016 and April 2018. Through the M-Score, people will evaluate the … [Read more...]

HCM City FDI reaches $3.7b

HCM City's foreign direct investment (FDI) this year reached an estimated US$3.7 billion as of December 15, an increase of 13.1 per cent year-on-year, according to the Statistical Office. It includes $2.8 billion in 555 new projects and $826 million in existing ones. Forty four countries and territories invested in the city this year. The UK was the biggest investor with $1.2 billion followed by South Korea and the British Virgin Islands with $465 million and $370 million. THOI BAO KINH TE VIET NAM VIET NAM ECONOMIC TIMES) Vinatex plant goes on stream in Long An The Viet Nam National Textile and Garment Group (Vinatex)'s new yarn-dyed fabric plant has begun operations in the Mekong Delta province of Long An's Xuyen A Industrial Park. The VND444 billion ($19.8 million) plant has a capacity of 10 million metres of fabric per year, 6 million metres in the first phase, and more than 300 workers. DAU TU (VIET NAM INVESTMENT REVIEW) Bac Lieu Wind Power Plant phase 2 begins Phase 2 … [Read more...]

Bac Ninh organises Tet celebrations

The northern province of Bac Ninh's Labour Federation will organise a Tet celebration programme called "Tet Sum Vay 2016" (Tet Gathering) for workers at local export processing zones and industrial parks on January 28. The programme will include musical and entertainment activities, and film screenings about workers' lives, which is expected to attract more than 1,000 participants. The federation will provide free bus tickets to 5,000 workers to return to their hometowns, and visit and give presents to 1,500 workers in need, who will not return to their hometown for Tet. Lao Dong (Labour) MoT considers Laos-VN highway The Project Management Board Unit 85 has submitted the Ministry of Transport a project on building a highway connecting Vientiane in Laos and Ha Noi via border gates Thanh Thuy in the central province of Nghe An and Nam On in BolyKhamxay Province. The 707-kilometre road will have six lanes with a design speed of 80-120 km per hour. Total investment capital for the … [Read more...]

Two firms to build plant at Hi-Tech park

The Saigon Hi-Tech Park has granted investment certificates to two supporting enterprises from South Korea. The Intops Limited Company invested US$80 million to build a plant to produce general telephone parts. It is expected to begin operation in December next year with a capacity of 6.5 million items per year. The Daihan Climate Control Limited Company will spend $32 million on a plant making heat exchangers. The company will provide 2 million items per year after opening in the second quarter of 2016. SAI GON GIAI PHONG (Liberated Sai Gon) Work begins on southern region power line The southern region Power Plant Project Management Board has begun to lay a 500kV power line through the provinces of Dong Nai and Binh Duong. Total investment is more than VND1.1 trillion (US$50 million). The 23.32-km line will transmit power from the Dong Nai-based Vinh Tan Power Centre to HCM City and Dong Nai and Binh Duong provinces when it is completed in 2017. THOI BAO KINH TE VIET NAM … [Read more...]

Lai Chau hydropower plant connects to grid

The first 400 MW generator of Lai Chau hydropower plant in the northern mountainous province of Lai Chau Province's Nam Hang Commune has been connected to the national grid, according to Electricity of Viet Nam (EVN). The plant is expected to operate one year earlier than initially scheduled. The hydropower plant, located on the Da River, includes three generators with total capacity of 1,200 MW. When all the generators become operational, the plant will supply around 4.6 billion kWh of electricity to the national grid per year. Thoi Bao Kinh Te Viet Nam (Viet Nam Economic Time) Food and mouth disease in Cao Bang The northern mountainous province of Cao Bang's Trung Khanh, Bao Lam, Ha Lang and Ha Quang districts had a total of 331 buffalos, cows, goats and pigs affected by food and mouth disease (FMD), from November 3 to December 16. There is a high risk of disease spreading to other localities. The province has urged localities and agencies to carry out methods to prevent the … [Read more...]

Development partners worry about Vietnam’s public debt

VietNamNet Bridge - Investors have repeatedly voiced their concern about Vietnam’s public debt which has been increasing rapidly, and about the national default risk, according to Le Xuan Nghia, head of the Business Development Institute (BDI). Investors have repeatedly voiced their concern about Vietnam’s public debt Nghia said on Bizlive that the decrease in financial indexes in the last months of 2015 showed that Vietnam has experienced a short-term growth period and is now on the way to economic downturn. However, he emphasized the decline will occur for a short time only, from the second quarter of 2015 to the end of the first quarter of 2016. Meanwhile, Vietnam’s economy will see growth in the long term, especially when growth is empowered by a series of free trade agreements (FTAs), including the TPP (Trans Pacific Partnership) Agreement. It is expected that 2.5-3 million people would leave rural areas for urban areas in a so-called ‘second … [Read more...]

More than 1,300 new firms in Quang Ninh

More than 1,300 new enterprises registered for operation in the northern province of Quang Ninh this year with a total investment of nearly VND10 trillion (US$443.8 million). This represented a rise of 10 per cent of newly established businesses and 96 per cent of investment compared to last year, according to the provincial Department of Planning and Investment. Dau Tu (Vietnam Investment Review) Dong Thap sends 580 guest workers abroad The Cuu Long (Mekong) Delta province of Dong Thap sent 580 guest workers abroad this year, the highest number in the Mekong Delta, four times higher than last year. Of this figure, more than 50 per cent of the guest workers were sent to Japan, according to Bui Thanh Nhon, director of the provincial Department of Social, Invalids and Social Affairs. The province has spent VND800 million ($35,504) for training and health check-ups, and has provided loans totalling VND20 billion ($887,600) for the guest workers, according to Nhon. Tuoi Tre … [Read more...]

Does Flappy Bird creator have to pay tax?

VietNamNet Bridge - Nguyen Ha Dong, the creator of Flappy Bird, who earned big money with the game, has declared his income to pay the corporate income tax of VND1.4 billion. Flappy Bird's author pays VND1.4 billion in personal income tax With the current legal framework, it is difficult to collect tax from e-commerce and from individuals who have income from e-commerce activities, Nguyen Quang Tien, deputy head of the the General Department of Taxation’s (GDT) Tax Renovation Committee, admitted. However, he stressed this must be put under control. A lawyer noted that a lot of sources of income are not subject to taxation under current laws. It is impossible to tax an individual who has income from bitcoin trading. Bitcoin is not recognized by the State Bank as a currency in Vietnam. The current laws also do not recognize digital money as a type of asset. However, other laws stipulate that Vietnamese citizens and institutions can do types of business which are not … [Read more...]

HCM City fund helps poor with loans

The HCM City Capital Aid Fund for Employment of the Poor (CEP), established by the city's Labour Confederation, has provided loans worth more than VND4 trillion (US$178 million) this year to 280,000 poor people to do business and improve their lives. Besides, CEP's scholarship programme has donated more than 1 million notebooks and 1,643 scholarships worth a total of VND7.4 billion ($329,000) to poor students. Next year CEP will provide poor people with three new kinds of loans – emergency loans, additional loans and seasonal loans. Nguoi Lao Dong (THE LABOURER) $680m to be spent on vocational training The Ministry of Labour, Invalids and Social Affairs' Vocational Training Department will set up 45 top grade vocational schools and provide training in 120 vocations that meet international standards within the next five years. The project, to cost more than VND15 trillion (US$667 million), will seek to improve the quality of vocational training to meet the needs of ASEAN … [Read more...]

Hung Ha Bridge construction set to start

The Ministry of Transport has announced that the construction of Hung Ha Bridge and roads connecting the bridge with the Ha Noi–Hai Phong and Cau Gie–Ninh Binh highways will start before December 20. The 6.16km long bridge over the Hong River will cost VND2.87 trillion (US$127.5 million), including a $117 million loan from South Korea's Economic Development Co-operation Fund. Dau Tu (Viet Nam Investment Review) Flights to increase 20% this year The Viet Nam Air Traffic Management Corporation has forecast the number of flights to and from airports in the country to increase by 20 per cent this year compared to 8 per cent in previous years. Tan Son Nhat Airport, which on Tuesday received its 600,000th flight of the year, is expected to handle 660 flights daily during the Tet (Lunar New Year) holiday, a 10 per cent rise year-on-year. According to the Civil Aviation Authority of Viet Nam, airports nationwide handled around 51.8 million passengers and 795,000 tonnes of … [Read more...]

Can Tho-South Korea flights to open in 2016

Can Tho International Airport will receive flights from South Korea starting during Tet (Lunar New Year) next February, Vo Thi Hong Anh, deputy chairwoman of the city People's Committee, said at a meeting with a South Korean business group on Monday. The committee has worked with low-cost carrier VietJet Air to start the service, she said. The airport is also part of the domestic air network, she said. Tuoi Tre (Youth) HCM City could celebrate Spring Flower Fair The HCM City Department of Transport has urged the city's People's Committee to organise a Spring Flower Fair at Tao Dan Park from February 3 to 14 to celebrate Tet. The Tet flower markets will be held at September 23 Park, Gia Dinh Park, and Le Van Tam Park. The department also proposes to organise flower markets at 128 points in 21 districts from February 1 to 7. Thanh Nien (Young People) Phu Yen home to FDI projects worth $4.5b The central coastal province of Phu Yen is home to 40 foreign direct investment (FDI) … [Read more...]

Is the real estate market warming up?

VietNamNet Bridge - There is no reliable answer to the question about whether the real estate market has warmed up, because different information sources show different situations. Thoi Bao Kinh Te Viet Nam has discovered interesting things in the reports the Ministry of Interior Affairs (MIA) presented before the National Assembly and the answers of Trinh Dinh Dung, Minister of Construction, to the inquiries. MIA’s report on the implementation of the National Assembly’s resolution on the enlargement of Hanoi showed many problems existing, including the frozen real estate market, highlighting that this was a big problem of the capital city’s economy after seven years of expansion. Meanwhile Minister Dung on November 19, answering the National Assembly’s questions, said the real estate market has ‘improved’ and ‘recovered strongly’, thus making great contribution to the economic development and the settlement of social issues. Huynh … [Read more...]

Sub-standard steel floods market

HA NOI (VNS) — Low-cost and sub-standard iron sheets and steel, particularly from China, are flooding the market, causing many problems for legitimate producers. Vu Van Thanh, Deputy General Director of the Hoa Sen Steel Sheet Corporation, made this declaration at a seminar on trade fraud in Viet Nam's steel sheet market held yesterday in Ha Noi. The Thoi Bao Kinh Te Viet Nam (Viet Nam Economic Times), Viet Nam Steel Association (VSA) and the Viet Nam Standards and Consumers Association (VINASTAS) organised the seminar. Thanh said counterfeit steel sheets were widely produced, spreading from the northern cities and provinces, including Ha Noi, Hai Phong and Thai Nguyen to central provinces of Thanh Hoa, Nghe An, Ha Tinh and Khanh Hoa and Da Nang City and also some southern provinces of Binh Duong, Dong Nai, Ben Tre, Long An, Kien Giang, Soc Trang. The import of cheap and poor-quality steel sheet products had surged in recent years, 90 per cent of which were of Chinese origin, … [Read more...]