Other Briefings
Vietnam May Raise Electricity Prices
Jan. 15 – Vietnam may increase retail electricity prices by up to 10 percent to attract more investment in the energy sector.
The industry is struggling to meet the country's energy needs. Electricity rates in Vietnam are much lower compared to other countries in the region making it less attractive to potential investors, the Vietnam Economic Times quoted Vice Minister of Industry and Trade Do Huu Hao as saying.
The proposal to increase prices was submitted last month pending the approval of the Prime Minister Nguyen Tan Dung.
New Personal Income Tax Cuts Stock Market Trading
Jan. 7 – The implementation of the new Personal Income Tax (PIT) law beginning January 1 has discouraged potential investors, according to Thanh Nien News.
On Monday, 7.3 million shares were traded compared with last year's daily average of 11.8 million.
The PIT law requires stock investors to either pay a 0.1 percent fee of the value of each transaction or 20 percent on their net profit for the year. In addition, those who choose to pay 20 percent on their annual net profit are still required to pay 0.1 percent fee of each sale and the excess tax paid to be refunded at the end of the year.
Vietnam’s New Property Taxes
Dec. 30 – With the introduction of the new Personal Income Tax Law on January 1, owners of more than one house will have to pay a 2 percent tax on each house they sell.
Another option is to pay a 25 percent tax on the remaining money after they have bought a new house, with proceeds of the sale of a property for which all fees have been paid.
Work Begins on Shenzhen-Financed Trade Zone in Haiphong
Dec. 29 – Construction on a Shenzhen-invested economic trade zone in Haiphong City started yesterday.
The US$200 million zone, which will cater to businesses from the Southern Chinese city, is located in Yen Hung district, Quang Ninh Province, 125 kilometers from Hanoi. It will include 2.2 million square meters of factory space, 400,000 square meters of warehousing and 100,000 square meters of office buildings for management, research and public services.
New Container Route to China, Hong Kong Launched
Dec. 19 – The new international shipping container route starting from Cai Lan port in Quang Ninh province to China and Hong Kong has been officially launched.
The port is the first deep-water port located in northern Vietnam with a capacity of accommodating freighters weighing up to 50,000 DWT.
Previously, test-runs on the new route were done using the MSC's 1,090 TEU vessel, the Wellington, being the first to arrive in November.
Ho Chi Minh City May Implement New Land Tax Valuation System Next Year
Dec. 5 – The Ho Chi Minh City People’s Committee has submitted a proposal that calls for the land tax re-evaluations of the city's districts starting January 1st.
The city has decided to increase land use taxes due to improved infrastructure. Thanh Nien News reports that property valuations in some districts of the city will more than double next year under a new land valuation system.
If the proposed value system is approved, charges will span from VND110,000 per square meter to VND81 million per square meter.
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.
Vietnam Removes Steel Export Tax
Oct. 30 – Vietnam's Ministry of Finance has removed the 5 percent export duty on non-alloy iron and steel products beginning November 7 to help local manufacturers get rid of their excess stock.
According to the Vietnam Steel Association, firms have been unable to sell their stockpile of one million tons of steel billets and steel products worth an estimated US$1 billion because of lower demand.
In September, steel demand fell by 40 percent. It was aggravated further when the central bank increased interest rates to fight inflation leading to many construction and property firms unable to get bank loans
Vietnamese PM Calls for Direct Trade Route with China’s Yangpu Port
Oct. 21 – Vietnamese Prime Minister Nguyen Tan Dung called for the opening of direct airline and shipping routes to China's Yangpu port to decrease trade costs, during a visit to China's island province of Hainan.
Mr. Nguyen Tan Dung was in China as a guest of Premier Wen Jiabao.
The Yangpu economic development zone is located around 40 kilometers north of its capital, Haikou. The zone has special economic policies and flexible governmental measures used to attract foreign investors.
Vietnam Upgrades Internet Link Between Ho Chi Minh and Hanoi
Oct. 18 – Vietnam Data Communication (VDC) has upgraded the internet link from Ho Chi Minh City to Hanoi by an additional 2.5 Gbps; increasing the total capacity of line to 7.5 Gbps.
In September, the company installed a 2.5 Gbps line from Ho Chi Minh to the United States, increasing the international internet bandwidth from 11.4 Gbps to 14 Gbps.
