Economy & Trade

Renminbi Use at Sino-Vietnamese Border Increasing

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Mar. 3 – The use of the Chinese renminbi for trade settlement has been increasing at the Sino-Vietnamese border.

Transnational commuters crossing to the border number several thousands daily with more than 10,000 local Chinese are engaged in border trade. In the urban districts of Dongxing alone there are more than 6,000 registered dealers. Dongxing is located in Vietnam's Mong Cai special economic zone and across the Beilun River.

"When I began to do this business, traders were prone to choosing the U.S. dollar or the Vietnamese dong for trade settlement payments. But the Renminbi has become a hot choice in recent few years, " said Ruan Jinhua, a resident in the border city of southern China's Guangxi Zhuang Autonomous Region told Xinhua.

Office Space Demand in HCMC Slowing

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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.

Dezan Shira & Associates Expands Offices in Hanoi

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HANOI, Mar. 2 – Dezan Shira & Associates, the boutique professional services firm and publishers of Vietnam Briefing expanded to a larger office in Hanoi last Friday.

The new offices, located in the Pacific Place Building in downtown Hanoi will be managed by Hoang Thu Huyen, who joined the firm in 2008.

Dezan Shira & Associates opened offices in Vietnam last year as a response to the increased investment from multinationals elsewhere in Asia that had spurred a flurry of activity around the region. The firm has moved to better serve their growing client base in the country. In addition to Hanoi, the practice also has offices in Ho Chi Minh City.

A Look at Vietnam in Numbers

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By Christian Fleming

Mar. 2 – Over the last 40 years, Vietnam has managed to transform itself from a nation in a seemingly constant state of war to an economic force on the rise.

Here is a look at Vietnam in numbers:

66 – The percentage devaluation of Vietnam’s benchmark VN-Index in 2008. The indicator, which is tied to the Ho Chi Minh Stock Exchange, was the worst performing Asian index last year.

28 – As a percentage, the continued decline in the VN-Index so far this year, as of Feb. 27.

Non-Residents Required to Pay Income Tax

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Feb. 27 – Vietnam has released new details regarding the deferral of the new Personal Income Tax (PIT) implemented last January 1 involving non-residents.

The latest regulation says that non-residents would still be subject to PIT. A non-resident is defined as someone with income arising in the country who is (a) not residing in Vietnam; (b) will leave Vietnam before June 30, 2009; or (c) has lived in Viet Nam since January 1, 2009.

This includes non-residents that have not confirmed their departure from the country, has not registered for permanent residence, and has not entered into a house rental contract for a term of over 90 days, reports Vietnam News.

Bird Flu Spreads to 11 Provinces

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Feb. 26 – Bird flu continues to spread in the country now affecting 11 provinces, reports the Department of Animal Health under the Ministry of Agriculture and Rural Development.

The latest province to be hit by bird flu is northern Dien Bien province where is has spread to two communes leading to the culling of 1,460 ducks and more than 1,000 their eggs.

The dead ducks found in the province had tested positive for the H5N1 virus. The department said it is likely that Vietnam will see more bird flu outbreaks in more provinces in coming days.

Consumer Price Index Up by 1.49 Percent

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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’s First Refinery Opens

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Feb. 23 – The country's first oil refinery opened yesterday to much fanfare when the ceremony was broadcast on prime-time television and featured a special opening program.

The refinery is slated to answer an estimated one-third of Vietnam’s fuel demand next year. The US$3 billion plant with a capacity of 148,000 barrels daily was developed by a group of contractors mainly led by France’s Technip SA.

It is found at the Dung Quat Bay in the central province of Quang Ngai, a site that garnered criticism from foreign investors because it is situated in the country’s most remote and typhoon-prone region and is hundreds of miles from the local oil fields and industrial base.

Tax Payments Refund until End of February

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Feb. 20 – The Ministry of Finance said companies that have not submitted the personal income tax to the tax bureau will have until the end of the month to give it back to their employees.

If for example, the company has already submitted their employees’ income tax for January prior to the Feb. 6 circular then they are advised to follow procedures to refund the money back from Treasury.

The new Personal Income Tax Law took effect on January 1st, 2009 but because of the global credit crisis, the government decided to delay collection until the end of May.

Vietnam, Thailand to Set Prices for Rice

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Feb. 19 – The world's biggest rice exporters have agreed to set up a joint rice-export price to limit fluctuations and strengthen competitiveness in the global market.

During a meeting between the Thai government and Vietnam Rice Cooperation in Hanoi, both signed a memorandum of understanding for fixing the export price instead of continuing a policy of price-cutting, reports The Nation.

No price has yet been set pending finalization of details to be held during the upcoming Asean Summit in Hua Hin from February 27 to March 1. "This agreement will ensure sustainable growth in rice exports, because Thailand and Vietnam are the world's biggest rice suppliers. Rice prices will be more stable, because each country will stop undercutting prices," said Deputy Commerce Minister Alongkorn Ponlaboot.

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