FDI and Foreign Trade

Vietnam Seeing an Industrial ‘Renaissance’

By Lorenzo Martelli

Oct. 19 – Vietnam is gradually moving away from its traditional focus areas of industrial production such as textiles, food processing, rice and coffee to attracting investment in new sectors like electronic and high-tech manufacturing, research and development.

Manufacturers are seeking alternatives along with rising labor costs in Thailand and China – Vietnam’s labor costs are 35 percent to 45 percent cheaper than those in China’s second and third-tier cities and 20 percent to 35 percent lower than Thailand’s. Moreover, preliminary findings of the 2010 Vietnam Industry Investor Survey, released a couple of weeks ago, showed that the main factors that made Vietnam an attractive country for FDI are “political stability, market and low-cost labor.” Continue reading →

New Issue of Vietnam Briefing: International Taxation Agreements

Oct. 17 – The new issue of Vietnam Briefing Magazine, titled Vietnam’s International Taxation Agreements, is out now.

As Vietnam increasingly finds itself on the receiving end of foreign investment and becomes progressively integrated into the global economy, the pace of changes to trade and tax policies can be difficult to keep up with. However, understanding the state’s policy objectives, and understanding the wider context of its trade policy and how it affects one’s investments, can make the difference between an investment and a lucrative investment.

In this issue, we will first look at the broader context of global trade and the growing salience of free trade agreements (FTAs) between Vietnam and its trade partners. We will examine the effects of current FTAs on Vietnam’s exports, the advantages and disadvantages thus far, as well as the response of Vietnamese enterprises to the policies of the FTAs in effect. Also, an in-depth look at key bilateral and regional trade agreements will reveal some telling trends. Continue reading →

Posted in FDI and Foreign Trade, Featured, Finance, Tax and Accounting, Markets | Tagged Canada, China, France, Vietnam Briefing Magazine, Vietnam Double Taxation Avoidance Agreements, Vietnam FDI, Vietnam Free Trade Agreements, Vietnam Tax | Leave a comment

New Strategy Targets Breakthrough in FDI Attraction

Oct. 11 – The Vietnamese Ministry of Planning and Investment (MPI) is currently working on a new strategy to boost the attractiveness of the country in terms of foreign direct investment (FDI) inflows. A significant shift in FDI’s role in the country will be the main issue the new strategy is aiming at and the socio-economic development plan will have a long term prospect covering the 2011-2020 period. Continue reading →

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New Regulation to Improve FDI Quality in Vietnam

Vietnam determined to improve the quality of foreign direct investment

Oct. 7 – Over the last few years, Vietnam has emerged as an important destination to invest in for foreign companies. In 2009, the government issued a resolution titled Decision 129/2009/QD-TTg (“Decision”) aimed at attracting and managing FDI. The Decision’s goal was to build and complete a system of comprehensive, specific and uniform mechanisms and policies on land, finance, investment capital, human resources, science and technology to promote investment in, and ensure the achievement of the set targets for, natural resource and environmental protection and sustainable development. However the Decision didn’t reach the goal. Continue reading →

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Vietnam Introduces Favorable Policies for Supporting Industries

By Stefano Miggiano

Sept. 22 – On February 24, 2011, the Vietnamese government issued Decision No.12/2011/QT-TTg pursuant to the Prime Minister’s Decision No. 49 10/QT-TTg of July 19, 2010, approving the list of prioritized high technologies. The Decision took effect on April 15, 2011.

The new regulations aspire to encourage the development of the following industries: manufacturing mechanical engineering, electronics-informatics, manufacturing and assembly of automobiles, textile and garment, leather-footwear and high-tech industry development. Continue reading →

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Vietnam to Implement Single Window Customs Mechanism

Sept. 19 – Prime Minister Nguyen Tan Dung has decided to simplify procedures concerning exporting, importing, and transiting goods and means of transport in the period 2011- 2014 by implementing the “National Single Window Customs Mechanism” pilot program.

The new system will allow all stakeholders involved in importation and exportation to submit or send standardized information and documents to the single processing unit. New regulations should significantly shorten the time needed for required formalities. Continue reading →

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New Regulations in Fuel Trade for Companies

Sept. 15 – According to the information provided by the Ministry of Finance (MoF), domestic merchants providing petrol to manufacturers at open economic and cross-border industrial zones will be subject to temporary import and re-export laws.

All fuel-trading activities between traders and producers will be to operate in accordance with General Department of Customs procedures. Continue reading →

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SBV Proposes New Regulations for FDI in Credit Institutions

By Francesca Grassi

Sept. 14 – The State Bank of Vietnam (SBV) has recently elaborated a (third) “Draft Decree” regulating foreign shares in Vietnamese commercial banks: if the new guidelines receive the placet of the government, Decree 69/07 ND-CP (dated April 20, 2007) on foreign investors’ acquisition of shares in Vietnamese institutions will be superseded and current legislation on credit institutions and on enterprises will inevitably be shattered.

In particular, the SBV Draft Decree introduces debatable core “novelties” affecting regulations on:

Mandatory authorization of the SBV Governor in order to purchase a larger quantity of shares by foreign owners; and
A three-year lock-up rule for foreign share transfers. Continue reading →

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Vietnam Implements New Strategy to Attract FDI

Aug. 24 – According to the Ministry of Planning and Investment (MPI), the government has developed a new strategy on attracting foreign direct investment (FDI). Instead of just attracting a huge number of various investors, the new strategy is to tie on quality investors. The MPI aims to “create a breakthrough in the number of FDI projects and the investment quality.” So the focus will be on the quality investors and sustainability. Continue reading →

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