Economy and Politics

New Issue of Vietnam Briefing: 100% FOEs, JVs and the Promotion of Supporting Industries

Jan. 17 – The new issue of Vietnam Briefing Magazine, titled 100% FOEs, JVs and the Promotion of Supporting Industries, is out now and is immediately available as a complimentary PDF download on the Asia Briefing Bookstore.

For investors looking to make forays into Vietnam, choosing between a wholly foreign-owned enterprise (100 percent FOE) and a joint venture (JV) can have significant implications, as both have their pros and cons and the permissible establishment details (such as percent of foreign capital contributions) for each vary by sector.

As 2012 will be a year of significant change in limitations on foreign ownership regulations for 100 percent FOEs and JVs, this issue offers a clear snapshot of up-to-date regulations and specific changes to expect in 2012, as well as a useful summary of tax incentives and exemptions. Also, a roadmap and timeline for licensing procedures take the guesswork out of this initial step in establishing a business in Vietnam. Continue reading →

Posted in Business, Economy and Politics, FDI and Foreign Trade, Featured, Markets | Tagged Vietnam Briefing Magazine, Vietnam Establishment, Vietnam FDI, Vietnam FOEs, Vietnam JVs | Leave a comment

Vietnam Drawing Increasing Interest from Italian Investors

Dec. 8 – Trade and investment between Italy and Vietnam has increased steadily over the last 10 years. According to statistics issued by the Government of Vietnam, Italian FDI projects amounted to US$187 million in 39 projects at the end of 2010. The manufacturing industry still has the biggest share amid Italian FDI, even though other sectors are increasingly showing their interest in the market.

In the wake of a recent successful business mission by 24 Tuscan wineries to Vietnam at the beginning of November, Damiano Francovigh, head of the Economics and Commercial Section of the Italian embassy in Vietnam, shares his vision of the potential cooperation between the two countries. Continue reading →

Posted in Business, Economy and Politics, FDI and Foreign Trade | Tagged Italian Trade Commission, Vietnam FDI, Vietnam FDI Attraction, Vietnam Foreign Trade, Vietnam Wine Market, Vietnam-Italian Trade | Leave a comment

World Bank Forecasts 6% Growth for Vietnam in 2012

Nov. 29 – According to the report East Asia and Pacific Economic Update released by the World Bank on November 21, Vietnam’s gross domestic product (GDP) will increase 6.1 percent next year. The recent forecast confirms Prime Minister Nguyen Tan Dung’s expectations of 6 percent to 6.5 percent growth for 2012, which he announced at the opening session of a biannual meeting of the National Assembly last month.

GDP growth for the first six months of 2011 was 5.6 percent, and it is expected to grow to around 5.8 percent by the end of the year. The forecasted 6.1 percent growth rate for 2012 seems to bear out a new increasing trend that was previously curbed during the 2007-2009 Global Financial Crisis. Continue reading →

Posted in Business, Economy and Politics | Tagged CPI, Vietnam Banking, Vietnam Economy, Vietnam Finance, Vietnam GDP, Vietnam GDP Growth, World Bank | Leave a comment

Vietnam’s M&A Activities 2011

Nov. 7 – Following amendments more than five years ago to two major laws regarding investment activities in Vietnam – namely the “Competition Law” and the “Law on Investment” – the country’s mergers and acquisitions (M&A) market has increased from US$299 million in 2006 to US$1.7 billion in 2010. Furthermore, M&A activities for the first nine months of 2011 have reached over US$2.6 billion, doubling the value seen in the same period last year. M&A transactions are also expected to continue to see strong growth in the foreseeable future.

“M&A in Vietnam will flourish in the last quarter of 2011 and the following years, with an annual growth rate of 30 percent to 40 percent,” said The Competition Management Department (under the Ministry of Industry and Trade) at the Vietnam M&A Forum 2011 held in Ho Chi Minh City on June 9, 2011. Continue reading →

Posted in Business, Economy and Politics, FDI and Foreign Trade, Markets | Tagged European Chamber of Commerce in Vietnam, Vietnam Economy, Vietnam European Union, Vietnam FDI, Vietnam Japan, Vietnam Mergers and Acquisitions | Leave a comment

Germany-Vietnam Investment Cooperation

Germany now Vietnam’s largest EU trading partner

Nov. 3 – In 2010, bilateral trade between Vietnam and Germany reached US$4.1 billion, showing substantial development since the two countries set up diplomatic agreements on September 23, 1975. The mutual understanding between Vietnam and Germany has been further strengthened through maintaining trustworthy partnerships and a political consultation mechanism between the two Foreign Ministries that was established in 2008. Moreover, the two countries have signed a number of agreements to form a legal foundation for bilateral economic cooperation such as the Agreements on Double Taxation Avoidance, Investment Encouragement and Protection, Maritime Shipping and Aviation.

As German Chancellor Angela Merkel has recently pointed out in her official visit to Vietnam for the Vietnam-Germany Economic Forum, German entrepreneurs consider Vietnam as fertile ground to do business, particularly in the high-tech industry as well as in education and environment. She also expressed her good impressions on Vietnam’s socioeconomic achievements, particularly in the last 10 years, and affirmed that Ho Chi Minh City was the most dynamic economic center in Vietnam. Thus, Germany would like to establish additional cooperative relations with Vietnam in general and HCM City in particular. She also identified some key issues to enhance Vietnamese investment environment. Continue reading →

Posted in Business, Economy and Politics, FDI and Foreign Trade, Ho Chi Minh City | Tagged Angela Merkel, Deutsche Bank, Germany, Germany-Vietnam Trade, HCMC, Metro Cash & Carry, Siemens, Vietnam FDI | Leave a comment

Viet–U.S. Pacific Free Trade Talks could Impact on China SOEs

Oct. 31 – The United States, currently locked in discussions with Vietnam over the nine country Trans-Pacific Partnership (TPP), has had proposals to include new rules concerning state-owned enterprises rebuffed by Hanoi.

The United States believes that SOEs often reap additional benefits directly from the State which amount to unfair subsidies and protectionism. Washington wants a strong and definable regulatory position in place in the Vietnam agreement as it is expected to become the working model for future trade talks with China, which has over 20,000 state-owned enterprises, many of them multinationals in their own right. Continue reading →

Posted in Business, Economy and Politics, FDI and Foreign Trade | Tagged APEC, China State-Owned Enterprises, Trans-Pacific Partnership, Vietnam Politics, Vietnam State-Owned Enterprises, Vietnam Trade | Leave a comment

Vietnam Raises Ceiling for Minimum Wage Levels

By Francesca Grassi

Sept. 27 – On October 5, 2011, new Decree no.70/2011/ND-CP on region-based minimum wage levels will come into force in Vietnam bringing in eloquent changes and a step forward from previous Decree no.107/2010/ND-CP and Decree no.108/2010/ND-CP.

The regulation is effectively structured in order to provide companies with exact information about the applicability and scope of the Decree, the amended minimum wage levels, and their application. Continue reading →

Posted in Business, Economy and Politics, Legal and Regulatory | Leave a comment

Vietnam Commits US$48.8 Bln Towards Increasing Electricity Capacity

Aug. 5 – Vietnam’s Ministry of Industry and Trade recently announced that the country will be spending US$48.8 billion to help boost electricity generation capacity to meet the growing domestic demand.

The majority of the funds will be put towards the construction of new plants and power-transmission systems, the ministry said in a statement. Vietnam will also seek FDI and official development aid, as well as commercial loans for the projects. Continue reading →

Posted in Economy and Politics, Markets | Leave a comment

U.S. Lists Vietnam Among Key Markets to Promote

Jul. 22 – The U.S. Department of Commerce launched a report on its National Export Strategy on June 28, 2011 that included Vietnam among a list of key focus markets.

According to the report for U.S. Congress, the key markets of Vietnam, Colombia, Indonesia, Saudi Arabia and Turkey all have large populations, high growth, favorable business environments, and many potential opportunities. Continue reading →

Posted in Business, Economy and Politics | Leave a comment

Green Energy in Vietnam

Political and legal aspects
Jul. 6 – Government targets and support mechanisms in the field of renewable energy are available in legal documents from the Minister of Trade and Industries and the Institute of Energy.

Examples include:

The Master Plan for Renewable Energy
This source describes national goals for the development of renewable energy sources within the next five years, as well as the nation’s 2025 goals in renewable energy. Continue reading →