May 23 – It bodes well for those planning to do business in Vietnam to take the time to know how local culture conducts business deals to avoid any miscommunication.
As with most people in the world, the Vietnamese tend to be flattered when a foreigner makes the effort to learn even a simple phrase in their language. So take note to remember -xin chao (pronounced as seen chow)- meaning hello in Vietnamese.
While you may be forgiven for not knowing better in some cases, it’s always in your best interest to avoid offending the locals. Generally, Vietnam is influenced by Confucianism and shares more common business practices with China, Japan and Korea compared to its Southeast Asian neighbors.
May 16 – Vietnam aims to boost exports to the Middle East and South Asia by US$2.3 billion, according to sources.
The figure is a 33 percent increase compared to last year.
For 2007, the country earned export revenues of US$230.5 million for the United Arab Emirates (UAE) and US$201.8 million for Turkey.
The country’s exports to these regions include: rice, coffee, textiles, garments, footwear, plastics, electronic appliances, seafood, tea, rubber, coal and timber.
The Ministry of Industry and Trade wants current export revenues to reach US$326 million for the UAE, US$141 million for Egypt, US$299.8 for Turkey, US$236 million for India and US$184.9 million for South Africa.
Vietnam is also thinking of importing competitive goods from these regions like petroleum and chemicals from Kuwait and Saudi Arabia, textiles and garments from India, plus cotton and timber from nations in Africa.
May 12 – State-owned, PetroVietnam announced efforts to control rising fuel and fertilizer costs by increasing domestic natural gas production and finding cheaper import alternatives.
In a press conference, the company vowed to cut waste and concentrate in its core business, saving an estimated VND550 billion (US$34.4 million).
"PetroVietnam will still inject capital into key projects for ports, warehouses and shipping fleets, but it will cease putting capital into real estate construction projects and other less-effective projects," management board member, Phan Thi Hoa, told VNS.
He said the company would review all projects and direct capital only to highly-prioritized projects.
May 12 – The Vietnamese Automobile Manufacturers’ Association (VAMA)
reports that car sales for the first four months of the year increased by 181 percent led by a rise in the commercial car segment. The 16-member VAMA announced combined sales of 47,366 units for the period.
Vinamotor sold the most number of units sold at 11,230, followed by Toyota with 7,896 and and Truong Hai with 7,492. Commercial car sales rose by 313 percent with 29,745 units sold, while passenger car sales went up 105 percent with 7,791 units. For April, automobile sales jumped to 13,271 units, an increase of 183 percent.
Car dealers attribute the increase in sales with consumers shifting from motorcycles to cars and government plans to hike special consumption tax to 50-70 percent by the year's end.
May 9 – The U.S. Department of Commerce has cleared Vietnam from apparel import dumping citing insufficient evidence to warrant an investigation. The agency studied 12 months of apparel import data beginning from Vietnam’s entry into the World Trade Organization in 2007.
The move is part of U.S. efforts to prevent dumping practices wherein a product sold in the importing country is less than the price of that product in the market of the exporting country.
“Our department will continue our commitment to examine imports from Vietnam to ensure that apparel is not dumped into the U.S. market, threatening American manufacturers’ competitiveness,” said Assistant Commerce Secretary David Spooner in a press release.
May 8 – Vietnam is considering lowering corporate income taxes from 28 percent to 25 percent.
A proposed corporate tax cut would help lure more foreign investors to Vietnam without lowering government tax revenues, said several National Assembly representatives Wednesday.
Lawmakers focused on a proposed amendment to 1997’s Corporate Income Tax Law at the National Assembly on Wednesday that would cut corporate income taxes by three percent.
May 8 – Prime Minister Nguyen Tan Dung has approved plans to develop the capital, Hanoi, into one of the top cities in Southeast Asia in 40 years. The plan foresees a capital 13 times larger than its present size that will serve as the country’s political, cultural and economic center.
Under the new plan, Hanoi Capital Region (HNCR) will include Hanoi plus the seven provinces of Ha Tay, Vinh Phuc, Hung Yen, Bac Ninh, Hai Duong, Ha Nam and Hoa Binh.
May 6 –
EVN will pay 4.5 U.S. cents per kWh of electricity with a reselling price of 5.6 to 11 U.S. cents.
May 5 – Although America is in a de facto recession, sending both trade and stocks into a slump from Germany to Jakarta, international businesses seem as eager as ever to pour investment capital into Vietnam.
No doubt some of the influx comes courtesy of ongoing government efforts to accelerate FDI disbursements. The government hopes to attract US$22 billion in FDI for 2008, and disburse more than $10 billion. With $8 billion of FDI in the first four months of this year alone, Vietnam seems well on its way to hitting its 2008 target.
Recent FDI projects are representative of the breadth and scope of international business that sees Vietnam as a profitable frontier for international expansion.
UK real estate investors Protego will have a fund worth some half billion U.S. dollars established in Vietnam by late June. The fund will focus on upscale apartments, luxury estates, and branded resorts in suburban and coastal areas of Vietnam. Domestic developer Qudos Asia and HBP Group will partner on the massive project.
April 30 – Drastic increases in the prices of raw commodities are not enough to prompt a rise in interest rates, as Vietnam’s central bank reports that its anti-inflation measures are proving effective.
Although consumer prices are up 22 percent this month over last year at the same time, the bank is confident that its previous rate raise, to a current level of 8.75 percent, as well as increased bank reserves and compulsory bills sold will be enough to combat the inflation that plagues Vietnam.
As proof, Governor Nguyen Van Giau points to month-on-month inflation as a benchmark, rather than comparing gains from the year previous. While February to March saw a rise of 3 percent in consumer prices, they rose only 2.2 percent from March to April.