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
Mar. 29 – Vietnam’s government has estimated that its gross domestic product (GDP) has grown by 4.89 percent year on year during the first quarter of 2013. For comparison, Vietnam’s GDP grew by 5.44 percent during the fourth quarter of 2012.
2012 marked the slowest annual growth period in Vietnamese history since 1999 as its GDP only grew by 5.03 percent. Vietnam’s economy has slowed down after averaging 7 percent growth from 2000-2010. Excessive credit expansion and inefficient state-owned entities (SOEs) have been blamed for the economic slowdown. Continue reading
By Hoang Thu Huyen and My Nguyen, Dezan Shira & Associates
Mar. 21 – By continually issuing favorable policies and incentives aimed at attracting inflows, and deciding to decrease the country’s corporate income tax levels from January 1, 2014, it is clear that Vietnam’s government is intent on taking a proactive approach to foreign direct investment. Enterprises and individuals interested in taking advantage of the country’s friendly investment environment therefore need to be aware of the various market entry structures available to foreign investors.
There are two main types of vehicles for foreign investment in Vietnam: 100 percent foreign-owned enterprises (FOEs) and joint venture enterprises (JVEs).
100 percent FOEs can be established by one or more foreign investors, under the form of either a limited liability company (LLC) or a joint-stock company (JSC). JVEs can be established as an LLC, a JSC, or a partnership, and the profits and risks in a JVE are distributed among the parties in proportion to their charter capital contributions. Other options for establishing a commercial presence in Vietnam include representative offices and branch offices, but these are not legal entities. Continue reading
Mar. 6 – The second issue of our new issue Asia Briefing Magazine, titled Expanding Your China Business to India and Vietnam, is out now and will be temporarily available as a complimentary PDF download on the Asia Briefing Bookstore throughout the months of March and April.
As operational costs in China continue to rise, an increasing number of companies are looking at either relocating or moving part of their China-based facilities to lower cost markets elsewhere in emerging Asia. This makes sense since China itself is trying to move away from an export-driven economy and into a consumption-driven growth model.
Meanwhile, countries such as Vietnam are actively courting these export businesses through tax incentives and preferential policies similar to those that helped China get to where it is today. India, too, with its abundant, young and inexpensive workforce, coupled with a massive consumer market, is looking strikingly similar to China 20 years back. Continue reading
Feb. 27 – Vietnam has approved a plan to boost its economy by focusing on restructuring public investments, banks and state-owned enterprises (SOEs). Furthermore, in an attempt to generate sustainable growth by 2020, attention will also be placed on strictly controlling inflation.
As he signed a 29-page directive that took effect on February 19, Prime Minister Nguyen Tan Dung announced that the goal was to create and maintain prudent monetary policies that would tame inflation and ensure “reasonable growth”. Vietnam also plans to restructure its financial markets and consolidate SOEs and investments.
The directive further elaborates that Vietnam will tighten its fiscal policies, promote exports and control imports while boosting the domestic production of consumer goods. Continue reading
Jan. 15 – Vietnamese Vice Minister of Planning and Investment Dao Quang Thu and Indian Ambassador Ranjit Rae signed a Memorandum of Understanding (MoU) on Tuesday, January 15. The MoU is aimed at building a capacity for the development of an institutional framework for micro, small and medium-sized enterprises (MSMEs) in Vietnam. The MoU was signed in Hanoi during Indian Vice President Hamid Ansari’s four-day visit to Vietnam in an effort to further strengthen India-Vietnam economic ties.
The MoU aims to develop MSMEs through beneficial exchanges between experts, industrial surveys and feasibility studies to identify thrust areas and opportunities, as well as through the promotion of partnership projects and institutional cooperation between Vietnam and India. It also calls for the organization of exhibitions and trade fairs through which MSMEs can market their various products, exchange business missions to initiate technology transfers and build business alliances, and the provision of training to improve managerial and technical skills. Continue reading
Vietnam’s President Truong Tan Sang’s three-day visit to Myanmar has opened up new opportunities for cooperation between the two countries.
Dec. 5 – During talks between Myanmar’s President Thein Sein and visiting Vietnamese President Truong Tan Sang in Naypyitaw on November 29, the two countries reached an agreement to bring their bilateral trade to US$500 million by 2015, and to further enhance cooperation in 11 fields, including oil and gas, telecommunications and tourism. Continue reading
Bilateral trade to grow at 20 percent annually
Dec. 4 – Vietnam and Thailand, both members of ASEAN, have agreed to boost bilateral trade and improve political and economic links, according to news reports issued by both countries.
The two nations have long maintained strong strategic and diplomatic relations, however the new agreements provide better institutional ties between the two and is expected to boost trade by about US$18 billion by 2015, an average increase of 20 percent per year over the next three years. A Thai-Vietnamese Business Council will also be established to oversee bilateral trade issues. Continue reading
Asia Briefing’s new report touches on everything you need to know about doing business in Vietnam, and is now available as a complimentary PDF download!
Aug. 29 – Asia Briefing, in cooperation with its parent firm Dezan Shira & Associates, has just released a new 32-page report introducing everything that a foreign investor should be familiar with when establishing and operating a business in Vietnam. This guide, titled “An Introduction to Doing Business in Vietnam,” is immediately available as a complimentary PDF download on the Asia Briefing Bookstore.
In a tough global economy, major foreign investors continue to prioritize their investments into Vietnam. Coca-Cola, for example, has said that it plans to invest US$200 million in Vietnam by 2013, adding to its US$280 million investment over the past ten years. German-based Bosch Group announced it will double investment in its auto components plant in the southern province of Dong Nai (from US$73 million to US$132.6 million) by 2015. In addition, Italy-based scooter manufacturer, Piaggio, just opened its second manufacturing plant with a production target of 300,000 scooters per year by 2013 to be sold in the Southeast Asian market. Continue reading
By Gherardo Liguori
Aug. 21 – Sri Lankan and Vietnamese businesses met in the Chamber of Commerce and Industry of Vietnam in Ho Chi Minh City on August 14, 2012.
The event demonstrates the interest of Sri Lankan enterprises to enter the Vietnamese market as well as the even greater willingness of Vietnamese businesses to look for cooperative opportunities with Sri Lankan businesses. Seven Sri Lankan companies and about fifteen Vietnamese companies had the chance to discuss many issues and to understand and clarify doubts about their respective countries. Unsurprisingly, tax issues were at the top of both of the agenda. Continue reading