Other Briefings
Vietnam’s Revised Corporate Income Tax
Sept 26 – Vietnam’s National Assembly approved the new Corporate Income Tax (CIT) reduction from 28 to 25 percent on June 3, 2008. Finance Minister Vu Van Ninh told Thanhnien News that the loss of tax revenue of VND5 trillion will be worthwhile in order to allow companies in Vietnam to become more competitive.
The revised incentive regime provides two preferential tax rates, the 20 percent tax rate which will apply for 10 years and the 10-percent tax rate which will apply for 15 years; it dropped the 15 percent tax rate.
Malaysian Steel Company to Invest in US$9.8 Billion Steel Mill Venture
Sept. 24 – Vietnam has approved the joint venture deal between Malaysia’s Lion Industries and Vietnam’s shipbuilding group, Vinashin, for a US$9.8 billion steel mill.
The steel mill will be located in the south-central province of Ninh Thuan with an annual capacity of 14.42 million tons.
According to a statement from Ninh Thuan’s People’s Committee, construction should begin by next year and be completed in 2025. The first phase of the project will cost about US$2.75 billion.
The details of the deal, like how much each company would invest, still has not been released.
Vietnam’s Consumer Price Index Rises by 0.18%
Sept. 23 – According to Vietnam’s General Statistics Office, the consumer price index for September rose by only 0.18 percent.
It is the lowest monthly gain since the start of the year.
The CPI increases registered in seven out of ten essential commodity groups, with cultural, sports and entertainment services having the highest price hike of 1.45 percent, along with educational services with 1.4 percent.
Trade Ministry Proposes Changes to New Import Licensing System
Sept. 23 – Vietnam's Ministry of Industry and Trade (MIT) has proposed changes to the new import licensing system that could limit the categories of imports that need to be registered and reduce trade deficit.
The current system,which took effect on Aug. 21, has been costing importers millions of dong.
Currently, all import license applications are processed at MIT’s Department of Documents in Hanoi.
The new import licensing regulation requires companies to obtain licenses to import items such as automobiles, motorbikes, machines, mobile phones, fruit, coffee, tea, cooking oil, meat, sugar, cocoa, vegetables and specific products made from iron, steel and aluminum.
Vietnam Approves US$87 Million Bridge Connecting Mekong Provinces
Sept. 23 – Vietnam's Transport Ministry has approved a VND1.49 trillion (US$87.6 million) bridge project that will connect the Mekong Delta provinces of Tien Giang and Long An.
The 1,390 meter My Loi bridge will span over the Soai Rap river and will be built on the National Highway route.
Construction is set to begin in 2009 and finish within 30 months. Once completed, it will allow ships of up to 10,000 tonnes to enter the Soai Rap river.
Safety Certification Required for Vietnam Exports to the U.S.
Sept. 17 – Beginning November 12, Vietnamese exporters to the United States will be required to apply for safety product certifications.
A safety certificate should be included with the product during shipment and must also be submitted to the U.S. Consumer Product Safety Commission and U.S. customs on request.
The new rule should ensure that all exported products are safe and not harmful to consumers. This will also allow the U.S. Consumer Product Safety Commission to implement safety standards for dangerous substances like lead and phthalates.
Vietnam to Build First Bio-Tech Center
Sept. 11 – Vietnam is set to build its first applied bio-technology research center costing VND530 billion in Cam Duong Commune, Cam My District.
The facility should be complete by 2010 and provide industry products and services by 2020.
The 200-hectare facility will expand the country's bio-technology industry towards the diagnoses and treatment of diseases, preventive health, and environmental protection.
It also aims to use bio-technology to upgrade techniques on breeding plants and animals.
Japan Aids Vietnam’s Industries
By Chua Siew Joo
Sept. 10 – Vietnam is expanding its support industries through aid from Japan in the areas of building business capacity, developing human resources and formulating legal framework.
The support industries include electronics and information technology, the garment industry, leather-shoe manufacturing, car-making and mechanical manufacturing.
During a seminar called the “Action Plan for Development of Supporting Industry of Vietnam” jointly organized by the Japan External Trade Organization and the Vietnam Chamber of Commerce and Industry (VCCI) held last Sept. 5, the government announced plans to boost production in major support industries.
Vietnam May Allow Foreign Investment in First Oil Refinery
Sept. 9 – The Vietnam National Oil and Gas Group (PetroVietnam) has submitted a proposal to allow foreign companies to buy stakes in the country’s first oil refinery.
In a press conference, PetroVietnam Chairman Dinh La Thang said that Royal Dutch Shell, India’s Essar oil, and Russian oil firms Zarubezhneft and Rosneft have expressed interest in purchasing stakes in the ongoing construction of the Dung Quat refinery located in the central province of Quang Ngai.
"Prime Minister Nguyen Tan Dung has agreed in principle on the sale proposal and is allowing us to proceed," said Dinh La Thang.
Vietnam Overseas Investment Reaches US$2.5 Billion
Sept. 9 – The Ministry of Planning and Investment says Vietnam overseas investment is now worth a total of US$2.5 billion consisting of 317 projects concentrated within the region.
Vietnam investment covers 123 projects with a combined capital of US$1.2 billion in Laos, US$162 million for 7 projects in Malaysia and more than US$153 million for 34 projects in Cambodia.
The projects center mostly on industrial production and construction areas; 136 projects worth US$1.75 billion makes up 42.9 percent of total overseas projects and 69.4 percent of overseas investment capital.
