Investing

Nguyen Bich Lam The growth in Vietnam’s labour productivity has taken the lead in the region over recent years. Where does the country actually stand when it comes to this area compared to its regional peers? Labour productivity based on 2018 prices is estimated at VND102 million ($4,435) per labourer, up VND8.8 million ($380) per labourer against 2017. Compared to the 2010 comparative price, the labour productivity of the whole economy last year inched up 5.93 per cent on-year, showing a remarkable increase. Vietnam has witnessed a fairly high growth pace in labour productivity among ASEAN member countries. Between 2008 and 2017, the rate on purchasing power parity (PPP) based on the 2011 constant grew an average of 4 per cent annually, high compared to Singapore’s 0.9 per cent of average annual growth, Malaysia’s 1.1 per cent, Thailand’s 2.6 per cent, the Philippines’ 3.3 per cent, and Indonesia’s 3.4 per cent of average annual growth. However, … [Read more...] about Intra industry productivity rise essential to boost efficiency

Many business associations deem the proposal to the Labour Code unreasonable Having been working in Vietnam for more than 20 years, Hong Sun, vice chairman of the Korea Chamber of Business in ­Vietnam (KorCham), has seen massive improvements in the country’s business climate. However, these days, not only KorCham, but also many other business associations in Vietnam are like a cat on a hot tin roof due to the Ministry of Labour, Invalids and Social ­Affairs’ (MoLISA) proposed amendments to the Labour Code to reduce working time. Earlier this month, seven business associations sent ­petitions to state agencies, the National Assembly, and the government, asking them not to agree to the proposal as it could drive firms into difficulties. “How was the proposal made? What is the foundation for the MoLISA to coin this proposal? We need clear and persuasive explanations,” Sun told VIR. According to Article 107 of the latest draft amendments to the … [Read more...] about Law revision may impede business

Singaporean investment in Vietnam has kept on a steady growth momentum over the past years. Phan Huu Thang, former head of the Ministry of Planning and Investment’s Foreign Investment Agency, discussed with VIR the movements in Singaporean investment and the future prospects ahead. What main trends affected Singaporean investment in Vietnam over the past years? Looking back on the 30-year foreign investment journey in Vietnam, Singapore has been among the largest foreign investors in Vietnam with a number of large-scale projects such as the Vietnam-Singapore shipping joint venture GEMATRANS, Hoang Gia Hotel, and others. At the time, they had an important role in luring other foreign-invested projects in industrial park development, real estate, and shipping in Vietnam. Vietnam-Singapore Industrial Park (VSIP) is a prime example of the meaning and influence of these first projects. VSIP is now present in many cities and provinces, including Bac Ninh, and Haiphong. Singaporean … [Read more...] about Bright future prospects for Singaporean investment in Vietnam

Private investment is helping farmers and other agricultural groups to become more entrepreneurial Hundreds of local people in Nong Cong district of the north central province of Thanh Hoa are these days busy with completing infrastructure for a hi-tech application initiative in dairy farming and processing for TH Group. With VND3.8 trillion ($165 million) and a herd of 20,000 cows, the project inherits achievements of the $1.2 billion hi-tech dairy farm that TH Group has carried out over the last 10 years in Nghe An in creating high quality fresh milk. Besides this project, the group has also been constructing the first stage of its hi-tech dairy farm in the mountainous Son Hoa district of Phu Yen province, with a capital of VND 1.15 trillion ($50 million). With its projects, TH Group aims to expand the herd of dairy cows to 400,000, thus contributing to Vietnam’s goal of 500,000 cows under the government’s master plan for agricultural production development to 2020 and … [Read more...] about Agriculture capitalising from private investment

Timo Vuori The European Union and Vietnam signed both a trade agreement (EVFTA) and an investment protection agreement on June 30, and the EVFTA is the most comprehensive agreement the EU has so far negotiated with a developing country. Vietnam’s export-driven economy is one of the fastest growing in the world, therefore, this agreement is a big step forward. With this agreement, Vietnam will open the market to about 96 million potential consumers. It will also open up markets for Finnish companies and offer new business opportunities. There is now a unique opportunity to increase trade between Vietnam and Finland. For example, Finnish trade with South Korea has grown nearly 40 per cent after the EU-South Korea FTA was provisionally applied in 2011 and entered into force at the end of 2015. The EVFTA will reduce technical barriers to trade, in particular for small- and medium-sized enterprises (SMEs). As the market opens, there will also be demand for Finnish technology in … [Read more...] about EVFTA opens doors for Finnish groups