Export

Malaysia plans to raise its export tax for crude palm oil for January 2020, for the first time in one-and-a-half years. (Photo: Thestar.com.my) Hanoi (VNA) – The Malaysian Palm Oil Board said on its website on December 13 that the country plans to raise its export tax for crude palm oil for January 2020, for the first time in one-and-a-half years. The world’s second-largest producer and exporter of palm oil had last imposed an export tax of 4.5 percent in August 2018 before lowering it to zero. It then placed a tax-free exemption on crude palm oil from May to December 2019 to boost palm oil exports and expand into new markets. Malaysia calculated a palm oil reference price of 2,571.16 ringgit (616.59 USD) per tonne for January next year. A Kuala Lumpur-based trader said Malaysia will export more refined products as crude palm oil will now have 5 percent tax. Malaysian benchmark palm oil futures were up 1 percent at 2,913 ringgit per tonne in early trade on December 13. … [Read more...] about Malaysia plans to raise crude palm oil export tax

A recent report by financial data provider Fiin Group shows that foreign-invested firms account for almost all the increase in exports to the U.S. as its trade spat with China intensifies. In the garments sector, for example, Vietnamese companies only accounted for 16 percent of the export value from June 2018-2019, with FDI firms making up the remaining 84 percent. South Korean garment manufacturers in Vietnam have been the biggest winners from the trade war, with 143 South Korean companies accounting for almost half of Vietnam’s garment export value in the period, the report said. It said South Korean corporations were better placed to reap the gains because they have been in Vietnam since early 2000s and have well established supply chains in the country. "The majority of Vietnamese companies are still small-sized and do not meet foreign buyers’ requirements on quality, quantity and cost."  A similar situation could be seen in the export of phones and parts. South … [Read more...] about US-China trade war spoils go to FDI firms

This is the sustainable development direction for garment and textile industry. Made-in-Vietnam garment and textile products not only present in foreign countries but also in Vietnam. The industry needs to escape from the situation of lacking of initiative in raw materials instead of mainly producing yarn and processing products because currently, 60 percent of fiber materials must be imported. PM said that garment and textile industry is one of the industries with highest export turnover and is the most labor-intensive industry in the country with 3 million workers, accounting for a quarter of total labor force of industrial industry. Vietnam’s garment and textile industry has risen to the third largest in export after China and Bangladesh. Vietnam has not mastered and developed production stages such as dyeing, manufacturing high quality fabrics, high-quality materials and accessories. That is the reason why value added has not been high. At the same time, structure of export … [Read more...] about Garment, textile industry needs to give domestic market appropriate attention

Particularly, Adidas has cut 50 percent of footwear made in neighboring countries and shifted orders to Vietnam because of cheaper labor costs. Similarly, Adidas’s rival, Nike current has up to 50 percent of its products made in Vietnam. According to Lefaso, as footwear products receive high tax reduction rate right after the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) became effective, this has attracted several foreign investors in the footwear industry to come to Vietnam. Therefore, footwear export turnover to CPTPP’s member countries will continue to increase in the next years. However, in order to make use of the CPTPP, Lefaso and enterprises need to resolve obstacles, including brand name, material and technology. In the past, the industry’s value added was low due to its dependence on imported materials and auxiliary materials. Moreover, leather product suppliers in Vietnam lacked of knowledge and investment in technology. … [Read more...] about International sports brands increase production in Vietnam

Thailand’s economy posted the strongest growth in five years in 2017. (Photo: The Straits Times) Bangkok (VNA) – Thailand’s economy posted the strongest growth in five years in 2017 and is expected to maintain the outlook this year, driven robust exports and tourism. Thailand’s gross domestic product (GDP) grew an inflation-adjusted 3.9 percent in 2017, up from 3.3 percent from the previous year, marking its fastest expansion since 2012, according to the National Economic and Social Development Board (NESDB). The economy looks set to grow faster this year with GDP forecast to expand by 3.6-4.6 percent. A steady recovery in exports and large government infrastructure projects, including the expansions of ports and roads as part of a 45 billion project for a new special economic zone on the east coast of the country, are expected to support growth in 2018. In addition, private investment, which grew by a just 1.7 percent in 2017, will rise at a faster … [Read more...] about Thai economy grows at fastest pace in five years