Other Briefings
Vietnam Seeks US$6.43 Billion Foreign Loans in 2009
Apr. 14 – The Vietnamese government has announced that it plans to borrow up to US$6.43 billion from foreign governments and banks this year.
The loans will pay for new infrastructure in the form of roads, bridges and water supplu systems. The government will borrow US$1.1 billion for medium and long-term commercial loans with an additional US$1.73 billion in foreign governments' official development assistance and soft loans.
Vietnam Approves 3G Firms
Apr. 13 – The Vietnamese government has approved telecommunications providers to license 3G mobile phone services.
Viettel, Vinaphone, MobiFone, and a venture between Hanoi Telecom and EVN Telecom were named as the four firms qualified for licensing, according to the Ministry of Information and Communications.
The companies will be able to fulfill network infrastructure and equipment requirements in the next three months for formal licensing.
Vietnam Announces Plan to Boost Foreign Investment
Apr. 10 – The Vietnamese government has announced six measures to aid the country in attracting and managing foreign investment.
According to Xinhua, the first step is to review and revise current policies for business activities with the aim of providing preferential incentives for several industries and to boost disbursement.
The second measure is to publicly announce approved development master plans by the last quarter of the year to expedite site clearance. The third measure will involve review and announcement of infrastructure investment goals by 2020 to mobile capital resources for the completion of sea ports.
HCMC Gov’t Wants New Income Tax Law Delayed
Apr. 9 – The local government of Ho Chi Minh City has petitioned that the new income tax law slated for June 1 be moved to next year.
The proposal was one of the measures suggested by the HCMC government to help push for more business despite the global recession.
One of the measures also called for government direct ministries, enterprises, and other local agencies to support domestic products to help local businesses increase sales.
Changes on Personal Income Tax Regulations for Expats
Apr. 7 – Vietnam's Ministry of Finance has issued a new circular amending the guidelines on the implementation of the Personal Income Tax law.
One of the most important points of the circular detailed that all stated benefits that expatriates were previously entitled to and which were tax exempt under previous PIT regulations, are now fully re-instated.
These include: one time relocation allowances when expatriates move to Vietnam; one round trip air-tickets for annual leave back to home country; school fees paid by the employer for children of expatriates and employer provided accommodation is taxable at the lower of the actual rent or 15 percent of the expatriate’s total base taxable income.
Recommended Trade Fairs Now Online
Apr. 3 – A list of recommended trade fairs for the year is now available online at Vietnam Briefing.
You can click here to download the list or click at the Recommended Trade Fairs and Exhibitions in Vietnam located at the right hand column of the website.
Trade fairs are a great way to get a feel of doing business in a country and meeting suppliers face-to-face. In Vietnam, meeting in person to conduct business is still preferred over dealing with contracts via internet or phone calls.
Danang Targets 12 Percent GDP Growth
Apr. 2 – Danang is setting a goal of 11 to 12 percent GDP growth rate for this year, inspite the slowdown poised by the global economic downturn.
Last year, the city reported a GDP growth 11 percent against the national average of 7.06 percent. Export earnings came in at more than US$905 million with an increase of 19.5 percent compared to 2007.
Chairman of the city’s People’s Committee, Tran Van Minh, told Vietnam Economic Times that this marked the city’s determination to overcome difficulties, stabilize economic growth and promote social-welfare projects to improve living standards.
Danang was at the top of the Vietnam Provincial Competitiveness Index, compiled by the Vietnam Chamber of Commerce and Industry last year. This reflects the marked improvements made in the area in recent years in terms of infrastructure development and governance.
Chinese Workers Head to Vietnam
Mar. 31 – Chinese workers have been flooding Vietnam to work on huge Chinese industrial projects in the electricity, cement, building and chemical sectors.
One construction project located in Quang Ninh province has as much as 2,000 Chinese workers while using cement and electricity coming from Chinese companies.
Tran Ngoc Hung, president of Vietnam Construction Association, told AFP: "Chinese contractors have won numerous key projects in the electricity, cement, building and chemical sectors… and sent thousands of workers and equipment to Vietnam."
South Korean Firm Wins Vietnamese US$150 Million Highway Deal
Mar. 27 – The POSCO Engineering and Construction Co. has won the bid for a VND2.55 trillion (US$150 million) contract with the Vietnam Expressway to build a 27-km section on the highway connecting Hanoi and the northern province of Lao Cai, in Northern Vietnam.
The project spanning 40 months will build bridges, a water drainage system and traffic safety facilities. It will be funded by money borrowed from the Asian Development Bank Fund amounting to US$200 million, US$896 million from the Ordinary Capital Resource loans and domestic bonds worth US$153 million.
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.”
