Other Briefings
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.
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.
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 to Sell 1.5 Million Tons of Rice to the Philippines
Feb. 4 – Vietnam has agreed to sell 1.5 million tons of rice to the Philippines this year in a deal that would account for 30 percent of its forecasted exports.
The Philippines is the world's largest buyer of rice and its pact with Vietnam is expected to fulfill its grain needs for the year. Last year, Vietnam sold 1.6 million tons of rice to the Philippines.
Previous reports said that the Philippines would buy 1 million tons of rice at US$380 a ton plus cost and freight, with 500,000 tons to be delivered in February and March.
Vietnam to Use 14 Million Tons of Oil in 2009
Feb. 2 – Vietnam is forecast to consume an estimated 14 million tons of petrol and oil in 2009, reports the Ministry of Industry and Trade.
The figure is a 1 million ton rise compared to 2008. By mid-February when the Dung Quat oil refinery is expected to be operational, the imported volume of petrol and oil will drop to 12 million tons.
The ministry has also pushed for fertilizer, chemical and oil and gas sectors to expedite the operation of the Ninh Binh, Bac Giang and Ca Mau nitrogenous fertilizer projects and operate the other existing plants to guarantee a 0.95 million ton supply of urea for agricultural production.
Vietnamese Rice Prices Propped by Manila Deal
Jan. 21 – Prices for Vietnamese rice slated for export increased by 3 to 4.9 percent when exporters start loading 500,000 tons bound for the Philippines starting next month.
The Vietnamese rice shipment is expected to arrive in Manila by February and March as part of a deal that will ship a minimum of 1 million tons of grain.
"Food companies have prepared stocks for the shipment so the price rise won't affect their loading but indicative prices have gone up, anyway," a trader at a foreign firm in Ho Chi Minh City told Reuters.
Vietnam’s Labor Official Predicts 300,000 to Lose Jobs in 2009
Jan. 6 – An official from the Ministry of Labor, Invalids and Social Affairs (MoLISA) predicts that the slowing Vietnamese economy could lead to job losses amounting to 300,000 jobs, or 0.65 percent of the country's labor force.
The head of Employment Division under MoLISA, Nguyen Dai Dong, said some 300,000 people might be affected by the economic slowdown.
The hardest hit will be the industrial and services sectors, which already provide about 9 million jobs while the more than 35 million working as agricultural workers should expect reduced working hours.
