Other Briefings
Vietnamese Banks Continue Lowering Interest Rates
Nov. 18 – Local banks in Vietnam are continuing efforts to lower lending interest rates for long and medium-term loans.
In the past two months alone, the Bank for Investment and Development of Vietnam (BIDV) has lowered lending interest rates seven times by up to 1 percent.
Already the maximum lending interest rate on short-term loans in Vietnam dong is down by 15 percent a year, reports Nhan Dan.
In addition, companies engaged in the business of oil products, steel, cement, fertilizer and drugs industries, small and medium-sized enterprises are qualified for even a lower lending interest rate of 14 percent annually.
Vietnam’s National Assembly Approves Three New Laws
Nov. 17 – Vietnam's National Assembly has approved three laws for new tax rates on consumption, health insurance and civil judgements.
The decision also came with the ruling that will extend the tenure of People’s Councils and People’s Committees.
The Special Consumption Tax Law is applicable starting April 1, 2009 excluding the new taxes on alcohol, including beer that will apply beginning January 1, 2010.
The new law calls for a tax decrease for alcohol, including that for draught, canned and bottled beer, from 50 percent to 45 percent within 2010 and 2012. Come 2013, tax for alcohol will return to 50 percent. The law also allows tobacco products to be taxed at 65 percent.
Vietnam’s Fast-Food Industry Continues to Attract Foreign Investment
Nov. 12 – Despite the global crisis, Vietnam remains a profitable investment for Western fast-food chains.
Many Vietnamese are still willing to spend more on fast food restaurants even if it is around 2 to 4 times more expensive than the regular rice or noodle shop.
Western fast food chains tend to introduce menu items that cater to local tastes to increase sales.
According to market research company AC Nielsen, only 8 percent of Vietnamese eat at a foreign fast food restaurant one to three times a month. The company says that because of Vietnam’s population, comprising of 65 percent under the age of 25, it still remains a profitable destination for Western food chains.
Vietnam’s Car Sales Plunge by 37 Percent
Nov. 10 – According to an industry report made by the Vietnam Automobile Manufacturers Association, car sales in Vietnam for the month of October dropped by 37 percent to 5,679 units from the same figure last year due to rising taxes and registration fees.
For the first 10 months of the year, sales figures reported by 16 automakers operating in the country increased by 64 percent to 95,736 units from the same period last year.
Dealers complained that demand would wind down until the end of the year after the government tripled registration fees amounting to 15 percent of the car's purchase price.
Cambodia and Vietnam Sign Pact for Railway Link
Nov. 10 – Cambodia and Vietnam have agreed to a deal that would connect the railways from Phnom Penh to Vietnam at a cost of more than US$500 million.
"China has promised to build the railroad from Phnom Penh to Vietnam as part of the project to create a link from Singapore to Kunming in China," Hor Namhong was quoted as saying by the AFP.
In the past, there have been plans to link Southeast Asia by rail. So far, only Singapore, Malaysia and Thailand operating cross-border links.
Vietnamese Premier: Global Economic Turmoil will Impact Mekong Region
Nov. 7 – Speaking at the opening of a regional summit, Vietnam's premier said that the ongoing global economic slowdown would not exclude Southeast Asia's Mekong river countries.
The premiers of Cambodia, Laos, Myanmar and Vietnam met in Hanoi for the fourth summit of the CLMV group. Thailand's new prime minister, Somchai Wongsawat, also attended the summit.
Mr. Somchai said that he wanted to talk about the effects of high food prices with the country's regional neighbors, in addition to the border issues with Myanmar.
Russia to Help Develop Vietnam’s Civil Nuclear Program
Nov. 7 – The Russian Deputy Foreign Minister Andrei Denisov said that Russia is willing to help develop Vietnam's nuclear energy program.
"We know that such plans were made in Vietnam, very daring and far-reaching plans. We hope that Russia will be among those who will work with Vietnam in this hi-tech area and continue the traditions of our cooperation," Denisov was quoted as saying by the AFP.
Last month, Vietnamese President Nguyen Minh Triet visited the Kremlin to sign oil and gas deals with Russian President Dmitry Medvedev.Gazprom is set to work with oil firm PetroVietnam for a joint exploration project of Vietnam's offshore oil reserves.
Hanoi to Host Regional Gas Industry Conference
Nov. 6 – Vietnam's capital of Hanoi is scheduled to host the 10th Gas Information Exchange Conference and Exhibition (GASEX 2008) from Nov. 12 to 15.
The gas industry event will feature the latest equipment, products and services offered by regional companies.
The GASEX Conference and Exhibition is the only forum that focuses on the natural gas industry in the Western Pacific region. It has been held since 1990 to develop the region’s gas industry by providing a venue for discussing current business and technical challenges.
Vietnam’s State Bank Lowers Interest Rates
Nov. 4 – The State Bank of Vietnam has announced that the prime interest rate in Vietnamese dong will be reduced to 12 percent while the maximum lending interest rate for credit organizations lowered to 18 percent beginning November 5.
The move signals Vietnam's efforts to facilitate capital and ensure their liquidity.The new refinancing interest rate will be set at 13 percent from the previous 14 percent while the discount rate will be pegged at 11 percent from 12 percent.
Vietnamese Coffee Exports Surpass US$2 Billion
Nov. 3 – According to the the Vietnam Coffee Association (VCA), exports of Vietnamese coffee have surpassed US$2 billion.
Vietnam is the world's second largest exporter of coffee. The country's 520,000 hectares of coffee plantations exports to 75 countries, including Germany, the United States, Italy, Spain, Belgium, Japan, Korea, France and the UK.
Instant coffee, roasted coffee grounds and 3 in 1 coffee mixes are sold domestically in addition to international markets in Canada, Germany, the United States, Australia and Korea.
