Automotive

Nissan Pushes Ahead with Vietnam Plant

Jul. 2 – Japanese carmaker, Nissan, is pushing ahead with plans to produce its vehicles in the country by 2010.

The joint venture called Nissan Vietnam remains optimistic on the potential of the market despite the ongoing credit crisis. The partnership is between Denmark’s Kjaer Group and Japan’s Nissan Motor but production itself will be done by Vietnam Motors with supervision from the engineers of the parent company.

“Vietnam is a strategic market for Nissan with tremendous opportunities,” said Shinya Hannya, Nissan’s corporate vice president for Asian markets told the AFP. “The offering of locally assembled products will accelerate our business in Vietnam and lay the foundation for further growth.”

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FDI Drops by 77 Percent for First Half of the Year

Jun. 25 – According to a Vietnamese foreign investment official, foreign direct investment (FDI) in the country plunged by 77.4 percent to US$8.87 billion for the first 6 months of the year.

Figures compiled by the agency showed that only US$4.7 billion worth of new projects were licensed during the period, a 86.7 percent in value over the same period last year.

Another US$4.1 billion was poured into 68 operational projects, an increase of 13.8 percent. The agency head, Phan Huu Thang told Thanh Nien News added that the FDI result was still positive given the extent of the current economic slowdown.

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Hanoi Stock Exchange to Open on June 24

Jun. 15 – Vietnam will soon re-launch the Hanoi Securities Trading Center as the Hanoi Stock Exchange to serve as a new trading floor for unlisted public companies on June 24.

The country’s main bourse will still be the Ho Chi Minh Stock Exchange while the Hanoi Stock Exchange will provide the market for listed medium and small shareholding companies and government bonds.

So far, Vietnam has over 1,400 shareholding companies, with 166 of them listed on the Ho Chi Minh Stock Exchange and another 196 found on the Hanoi Securities Trading Center. Foreigners will be allowed to buy a maximum stake of 49 percent in companies and 30 percent in banks in all the three markets, reports Dow Jones.

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Vehicle Registration Fee Cut to Increase Sales

May 4 – The Vietnamese government cut automobile registration fee by half to 5 to 6 percent of the vehicle price until the end of the year to encourage more people to buy cars during the global economic crisis.

Moreover, the value-added tax on a number of goods has also been cut in half including fiber, cloth, garments, leather and footwear, paper and paper products, cement, tiles, and 125cc motorcycles or bigger beginning Friday.

Corporate tax for the last quarter of 2008 has also been cut for some textile, garment and footwear firms. Registration fees for vehicles that have less than ten seats will amount to six percent of the price in Hanoi and five percent in other cities.

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Vietnam Marks 63rd Year of Independence

By Chua Siew Joo

Sept. 2 – Vietnam celebrated its independence today, with rallies and parties throughout the country. Governement leaders paid tribute to President Ho Chi Minh at his mausoleum and laid wreath at the Monument to Fallen Soldiers

Ho Chi Minh declared Vietnam independent on the second of September in 1945, after nearly 60 years of French colonial rule. The country however, only achieved a peaceful state of development after the Cambodian settlement of October 1991. Continue reading →

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Vietnam to Purchase US$160 Million Worth of Electricity from China

May 6 –Vietnam’s largest electricity producer, state-owned Electricity Vietnam (EVN), is planning to purchase an estimated US$160 million worth of electricity from China. The amount translates to roughly 3.5 billion kWh of electricity that will be resold by EVN for domestic consumption.

EVN will pay 4.5 U.S. cents per kWh of electricity with a reselling price of 5.6 to 11 U.S. cents.

Vietnam’s demand for electricity is forecast to increase by 17 to 18 percent this year. Sources report that in some provinces in the country, electricity consumption has jumped by as much as 40 percent. Continue reading →

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Hanoi to triple in size over next 12 years

HANOI, April 2 – Hanoi will be doubled in population and tripled in size in the next 12 years, by decree of the People’s Council.

The resolution still awaits approval in the National Assembly. If approved, Ha Tay province, Me Linh district and a sizable portion of Luong Son District will merge with the capital, an expansion that will boost its size to nearly 3,500 square kilometer, and swell its population to some six million people.

The plan is part of a larger goal to help Hanoi catch up and even surpass Ho Chi Minh City as an economic and cultural hub. The expansion is intended to facilitate the construction of technology and industrial parks, cultural centers, and satellite urban zones.

Many foresee social and urban management problems if plans for expansion go ahead. The city is still critically short of skilled managers, and the infrastructure needed to support the proposed development is widely regarded as inadequate. Furthermore, the focus on economic and business growth has some worried that it will come at the price of workers’ welfare.

Hanoi People’s Committee Chairman Nguyen The Thao summed up the situation thusly, “It’s easy to build a big Hanoi, but we want to build a modern Hanoi that meets regional standards.”

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