Other Briefings
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.”
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.
Vietnam to Invest US$50 Billion for Coastal Economic Belt
Upon completion, the area's economic growth is expected to grow 1.4 to 1.5 times more than Vietnam's GDP growth by 2020 and account for an estimated 6.5 to 7 percent of the country's GDP.
The plan will transform the northern coastal region into an economic area for economic, scientific and technological cooperation with China and other members of the Association of Southeast Asian Nations (ASEAN).
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, China Complete Border Demarcation
Feb. 24 – China and Vietnam have completed the final demarcation of their land border located at the Youyiguan border gate in Pingxiang City in south China's Guangxi Zhuang Autonomous Region.
The border, spanning 1,300-kilometers, begins at the junction of China, Vietnam and Laos and continues along the Beilun River to the coast.
On the Chinese side is Yunnan Province and Guangxi Zhuang Autonomous Region while on the Vietnamese side is Cao Bang, Lang Son, Dien Bien, Lai Chau, Lao Cai, Ha Giang, Guang Ninh.
Tax Officials to Impose Higher Fines from April
Feb. 17 – Under a new decree, tax officials will be allowed to fine up to VND200,000 on those found guilty of infringements and group heads can impose fines of up to VND5 million.
The new decree takes effect in April. People caught delaying submission of documents for tax registration or breaking tax laws can also be meted fines of as much as VND20 million (US$1,150).
For taxpayers filing tax declarations 90 days or more past the due date can be fined from VND500,000-VND5 million although no penal tax will be added.
Collection of Personal Income Tax Moved to End of May
Feb. 10 – The Vietnamese government has announced that it will move the collection of personal income tax to the end of May to boost domestic spending.
The National Assembly is still undecided whether payments will be cut completely or collected at a later date. The personal income tax covers salaries, profit from real-estate and stock transactions and other investment returns.
Non-resident individuals will not be required to pay tax for income from financial investments, transactions, copyright and franchising until May as well.
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.
