Region

Japan’s FamilyMart to Expand in Vietnam

Apr. 27 – In a joint venture with Phu Tai Group, the Tokyo-based convenience store FamilyMart will set up its first store in Vietnam later this year. FamilyMart’s primary shareholder, the trading house Itochu Corporation, will assist with product development and distribution in the Southeast Asian country with the goal of establishing 300 stores by […]

Vietnam to Offer Better Conditions for Chinese Investors

Apr. 21 – The Vietnamese Government is promising better conditions for Chinese investors looking into doing business in the country. Prime Minister Nguyen Tan Dung said the statement during a Vietnam-China Business Forum held in Guangzhou city, adding that Chinese-invested projects in the country were going smoothly. A reported 600 Chinese-invested projects are now in […]

Tax Cut Proposal for Animal Feed Imports Submitted

Apr. 1 – Vietnam's Ministry of Agriculture and Rural Development has submitted a recommendation that the government decrease import taxes on animal feed for farmers struggling with costs.

The ministry has requested in its proposal that taxes should be slashed by fifty percent on finished feed products to 4 percent in addition to taxes on dry beans to 5 percent.

Moreover, it has also been proposed that various feed ingredients should be given a zero rate. Vietnam currently imports 49 to 52 percent of its ingredients for animal feed.

Vietnam’s Economy Grows by 3.1 Percent

Mar. 27 – The Southeast Asian country's economy grew by 3.1 percent during the first quarter of the year compared the same period last year as companies delay or cut investment plans and manufacturing.

The figure is the weakest on record since 1999 for which quarterly figures are available, reports Bui Ba Cuong, director of the office’s department of national accounts.

During the first quarted last year, the economy grew by 7.5 percent.“In this situation, 3 percent growth is a positive figure,” Nguyen Thi Mai Thanh, general director of Refrigeration Electrical Engineering Joint-Stock Co. told Bloomberg. “My business is not as bad as we had expected. We can live with this level of growth.”

HSBC to Increase Shares in Vietnamese Insurance Company

Mar. 23 – Leading bank, HSBC, is looking into increasing its stake in Vietnam’s Bao Viet Insurance from 10 percent to 18 percent despite the slowing economy.

HSBC became the first foreign bank in the country to become a fully-owned operation and is the largest bank in Europe.

“We are looking to do more with the strategic partners,” Paul Leech, Hong Kong-based head of international operations for HSBC, told Thanh Nien News.

The bank also has a maximum 20 percent stake in Techcombank. “When we made the strategy to open, the world was a little different,” Leech added. “The interesting thing is, actually, our strategy really has not changed.”

Regulations on Trade Union Expenses for Foreign Companies

Mar. 12 – The Ministry of Finance has released a circular advising on the payment and use of the trade union’s expense for foreign invested companies.

Trade unions will function in accordance with the law on trade union and will include foreign invested enterprises in Vietnam;Vietnamese enterprises with the foreign shareholding of more than 49 percent; and operational offices of foreign investors with business cooperation contracts in Vietnam.

Expenses for trade unions will be equivalent to 1 percent of the salary fund which is paid to Vietnamese employees in such foreign invested enterprises or foreign operational offices and is deductible from corporate income tax. Trade union expense is counted as business expenses for the foreign operational office.

Vietnam to Invest US$50 Billion for Coastal Economic Belt

Upon completion, the area's economic growth is expected to grow 1.4 to 1.5 times more than Vietnam's GDP growth by 2020 and account for an estimated 6.5 to 7 percent of the country's GDP.

The plan will transform the northern coastal region into an economic area for economic, scientific and technological cooperation with China and other members of the Association of Southeast Asian Nations (ASEAN).

Office Space Demand in HCMC Slowing

Mar. 3 – Demand for office space in Ho Chi Minh City is slowing down as businesses stall expansion plans or downsize.

Some businesses have even resorted to renting from homeowners instead office buildings.

The marketing director of a popular office building in downtown HCMC who wished to be anonymous told Thanh Nien News that up to 30 percent of offices at high-end buildings were unoccupied while the rate is 40 to 70 percent for lower-grade buildings.

Consumer Price Index Up by 1.49 Percent

Feb. 25 – Vietnam's consumer price index (CPI) grew by 1.49 percent during the first two months the year despite a slowing economy.

CPI for February rose by 1.17 percent compared to the month before indicating a slow increase over highest inflation months of last year but a abrupt hike in comparison with the recent months' figures.

Among the commodities and services used to calculate for CPI, food and food stuff saw the highest price increases, up by 1.67 percent this month. The second highest increase in prices came from housing and construction materials with 1.59 percent.

Vietnam, China Complete Border Demarcation

Feb. 24 – China and Vietnam have completed the final demarcation of their land border located at the Youyiguan border gate in Pingxiang City in south China's Guangxi Zhuang Autonomous Region.

The border, spanning 1,300-kilometers, begins at the junction of China, Vietnam and Laos and continues along the Beilun River to the coast.

On the Chinese side is Yunnan Province and Guangxi Zhuang Autonomous Region while on the Vietnamese side is Cao Bang, Lang Son, Dien Bien, Lai Chau, Lao Cai, Ha Giang, Guang Ninh.