May 10 – The residents of Phan Thiet City in Vietnam’s central Binh Thuan province can soon expect an influx of tourists as a new airport is built in the area, scheduled for opening in 2017. Plans for the airport have already been submitted to the central government for approval.
The airport, which reportedly will cost over VND5.6 trillion (US$265 million) to build, and which will span around 500 hectares (1235 acres), will be located in Thien Nghiep – a coastal area near Mui Ne Beach.
Initially, its facilities and landing areas will only be able to accommodate smaller planes and helicopters, providing services to over 500,000 passengers annually. Also, it is expected to offer 12 air routes of distances under 800 kilometers (500 miles) on top of 12 services of distances below 2,000 kilometers (1,200 miles). Continue reading
May 10 – The new issue of Asia Briefing Magazine, titled An Introduction to Development Zones Across Asia, is out now and will be temporarily available as a complimentary PDF download on the Asia Briefing Bookstore throughout the months of May and June.
The use of development zones in their different guises has been an effective model essentially brought to prominence by China over the past 25 years to help both foreign investors and domestic companies meet in a relationship that provides tax advantages to both. Development zones typically permit the foreign investor to bring component parts into a country for assembly without having to pay import duties. Investors may then add in locally-sourced components, assemble the final product, and warehouse it all duty free before then having the option of exporting the finished product (collecting some VAT rebates on the locally sourced portion) or entering the domestic market with a product assembled at local labor costs. Continue reading
May 9 – After a 15-month hiatus, Vietnamese produce exporters are now allowed to resume shipments of fruits and vegetables to the European Union (EU) after Vietnam’s plant protection department agreed to re-issue quarantine certificates.
Exports will resume as normal starting June 30.
Vietnam’s plant protection department stopped issuing certificates in March 2012 in an effort to prevent certain exported fruit (such as blue dragon or grapefruit) from being added to the EU’s blacklist after Vietnamese basil, sweet pepper, celery, bitter gourd and coriander failed to meet the EU’s food hygiene and safety regulations. The EU threatened to ban all Vietnamese produce if they found five more batches that were in violation of their regulations. Continue reading
May 7 – The Red River Delta constitutes the industrial heart of Vietnam and is one of the richest and most developed regions in the country.
Hanoi, Vietnam’s capital city, dominates in terms of foreign investment and gross industrial output. It is also home to many manufacturing plants for big international names like GM, Nokia and Yamaha. The industrial parks and economic zones in the region are strengthened by their “corridor to the sea” via the Hai Phong Port, one of Vietnam’s largest ports. Continue reading
Posted in Business, Hanoi
Apr. 30 – Vietnam’s online national business registration platform, which will allow enterprises to register online and be able to verify the legitimacy of potential business partners and companies, will be fully completed by the end of this year. This new system is designed to reduce the risk of doing business in Vietnam. Le Quang Manh, the head of the Ministry of Planning and Investment’s Business Registration Agency, stated that in cooperation with the provincial offices, all information will be updated and placed onto the national business registration system this year. Continue reading
Apr. 26 – During the first four months of 2013, Vietnam attracted newly registered and additional foreign direct investment (FDI) capital worth over US$8 billion. The capital was injected into projects throughout 18 different sectors, with the processing and manufacturing industries topping the list, followed by the property, wholesale and retail sectors.
Of this, US$4.9 billion of new capital was added thanks to the licensing of 341 new FDI projects. Another 121 projects expanded its capital by a total of US$3.34 billion. These capital injections represent a 14.6 percent and 20.7 percent year-on-year increase, respectively. Continue reading
Apr. 22 – In a move to enhance Vietnam’s competitive capacity and to create additional jobs, the Vietnamese government will create a fund to assist with the development of small and medium enterprises (SMEs) in the country. The fund will officially function as a State financial organization under the management of the Ministry of Planning and Investment, and it will be responsible for not just financial support but also the management of SMEs.
The fund’s management activities will include receiving and organizing financial resources for SMEs and managing domestic and foreign trust capital to generate funds for SME development. Continue reading
Apr. 17 – In an effort to boost investment in Vietnamese businesses and to support struggling enterprises, Vietnamese lawmakers have approved the Government’s proposal to reduce the current general corporate income tax (CIT) rate from 25 percent to 23 percent. In addition, CIT rates were set at a rate of 20 percent for small and medium enterprises (SMEs), while businesses that operate in the social housing sector will only be taxed at a rate of 10 percent. SMEs are defined as enterprises that employ fewer than 200 full-time employees with annual revenues of less than VND 20 billion (approximately US$1 million). Continue reading
Apr. 17 – Vietnam’s Northwest and Central Highlands have recently gained prominence as increasingly important developmental regions. Only last month the Bank of Investment and Development of Vietnam (BIDV) pledged to provide VND 15 trillion (US$718 million) and VND 7.5 trillion (US$359 million) to the respective regions between 2013 and 2015. This presents itself as a further incentive for investors to investigate the opportunities these localities can provide.
Large urban centers are missing from the Northwestern region, with Hoa Binh being the largest town. However, the region produces about one third of the total hydro-electric power of Vietnam, with the Son La Plant being the largest single producer. Continue reading
Apr. 10 – In Ho Chi Minh City this week there has been an influx of businesspeople from over 600 Vietnamese and French companies, in areas ranging from technology and food processing to construction, cosmetics and consumer goods, due to the “Vietnam-France Business Forum.” The forum, which started on April 8th, aimed to foster the development of international partnerships between Vietnamese and French companies.
In a bid to further cultivate business ties, seminars on Vietnam’s business environment, consumer taste and demand were held during the forum. In addition, French businesses had the opportunity to consult with specialists in the Vietnamese banking, taxation, human resources and intellectual property sectors. Continue reading