Economy and Politics

Vietnam’s June CPI Hits Lowest Point in Nine Months

By Nguyen Huyen My

Jun. 28 – According to figures released by the General Statistics Office (GSO) on June 24, Vietnam’s CPI in June increased 1.09 percent compared to May, 13.29 percent compared to December 2010, and 20.82 percent against June 2010.

After many efforts made by the Vietnamese government to stabilize prices in Vietnam, this is the lowest CPI in the first six months this year and for the last nine months. With such slower rising speed, the average CPI of the first six months of 2011 has increased 16.03 percent in comparison with the same period last year. Continue reading →

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Vietnam Attracts Japanese Investors as Bilateral Relations Improve

Jun. 7 – On his recent trip to Japan, Vietnam’s Party Politburo member Truong Tan Sang commended Vietnam-Japan relations over the last 40 years while encouraging future high-level visits and the expansion of delegation exchanges because of the “Vietnam-Japan Friendship Year” coming in 2013.

In his conversation with Japanese Prime Minister Naoto Kan, Sang added that they will try to stimulate the “strategic partnership for peace and prosperity in Asia” between Vietnam and Japan. Also he offered his sympathies to the Japanese people because of the recent natural disasters and promised that Vietnam will support Japan as well as it can. Additionally, he hopes and expects that Japan continues to raise its ODA to Vietnam following the agreements signed during Prime Minister Kan’s visit to Vietnam last October. Continue reading →

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Australia Raises Development Assistance for Vietnam Next Year

May 23 – The Australian government announced that it will raise the level of official development assistance (ODA) in 2011-2012 up to US$145.77 million – an increase of 82 percent over the 2010-2011 value.

Allaster Cox, Australia’s Ambassador to Vietnam, has said that the increase in ODA exhibits Australia’s ongoing long-term commitment to assist Vietnam in its efforts to reduce poverty and reach sustainable development. Continue reading →

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Vietnam’s New Era: Value-added Projects and Sustainable Development

May 10 – Over the past few years Vietnam has been experiencing gradual changes that definitely influence its socio-economic development strategy and this is expected to influence its policies for foreign invested enterprises (FIEs) in the near future.

New strategy for Vietnam
After many years of economic development resting on labor intensive enterprises, Vietnam became a middle income economy last year according to the World Bank’s ranking (GNI per capita between US$996 and US$12,195). But along with this promotion, Vietnam became aware that, although the economy grows fast and the social policies are fairly successful, these achievements are not up to the country’s potential, and the current socio-economic development is not sustainable. Thus, in its 2011-2020 socio-economic development strategy, Vietnam highlighted that rapid economic development has to go together with sustainability. Continue reading →

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Common HR Issues Facing FIEs in Vietnam

By Heloise Dessanges

Apr. 22 – Even though they are usually better off than local Vietnamese companies, it seems that many foreign invested enterprises (FIEs) established in the country encounter hardships to follow the general evolution in terms of human resource (HR) management. Although one of the major advantages for foreign companies to invest in Vietnam remains the low cost of the workforce, the situation is changing for skilled labor, especially for the light and heavy industrial sectors. On average, salaries are rising, working-conditions are getting better, and policies are becoming more precise in Vietnam, but many FIEs are dragging behind. Continue reading →

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Thai and Indian Companies Interested in Vietnam

Apr. 20 – More and more small and medium-sized Thai and Indian businesses are looking for investment opportunities in Vietnam.

Why Vietnam?
There are many reasons why Vietnam is attractive for foreign investors. According to Tharabodee Serng-Adichaiwit, general manager of Bangkok Bank in Vietnam, in comparison to Thailand’s other bordering countries like Laos and Cambodia, Vietnam has a large market, skilled workers and a good investment environment while still maintaining lower production costs due to lower wages then in India or Thailand. Continue reading →

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Vietnam to Invest in Water-Related Infrastructure

Mar. 31 – Vietnam’s government aims to boost the nation’s shipping volume by more than 400 percent over the next 10 years by investing heavily in its ports.

The emergent Southeast Asian economy is channeling billions of dollars into building ports for container ships in a move to draw export-oriented industry from China. Continue reading →

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Coal Export Prices to Rise

Mar. 22 – The export prices for coal dust products shipped to Asian nations, except for South Korea and Japan, have been raised by 22 percent, according to Vietnam National Coal and Mineral Industries Corporation.

The difference between domestic and for-export prices of Hon Gai/Cam Pha coal increased from 8.6 to 20.5 percent, respectively. Continue reading →

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Vietnam to Raise Power Prices by 15%

Feb. 22 – Vietnam recently announced that the government has decided to raise the country’s power price by a record 15.3 percent, up from the current VND1,077 per kw/h to VND1,241 per kw/h, starting March 1, 2011.

The government said it had made the price hike as small as possible after considering both the cost factor in production and the impact on people’s living standards. Although the price growth rate this time almost doubled compared to last year’s 8.9 percent, it did not meet the 18 percent to 30.3 percent increase goal the Ministry of Industry and Trade (MIT) set. Continue reading →

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State Bank of Vietnam Devalues Dong By 9.3% Against U.S. Dollar

Feb. 15 – The State Bank of Vietnam decided to lower the Vietnamese dong by 9.3 percent to VND20,693 to a U.S. dollar. The decision came into effect February 11.

Dr. Tran Hoang Ngan, member of the national advisory council for monetary and financial policies, said the decision will help reduce the psychological need to hold dollars. It will also make transactions in U.S. dollars more transparent. Continue reading →

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