Domestic airlines have launched promotional ticket fares and increased the number of flights to serve the increasing demand on the occasion of the Tet (Lunar New Year) holiday.

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Director of Nam Phuong Travel Phan Manh Tung said the volume of domestic airline tickets was abundant this year, allowing various options for passengers.

Most of the tickets for flights from HCM City to provinces and cities have been sold out, but there still are many exciting cheap fares for flights departing from the northern region, Tung said.

A screenshot taken of a customer looking for available air tickets. Domestic airlines have offered cheap tickets to serve customers during Tet holidays. 

Nguyen Danh Thang, owner of the Thai Danh airlines ticket agency said paucity of tickets or no tickets during the Tet holiday had occurred on a number of flights, mainly those from HCM City to other regions.

"However, it is not too difficult to buy a pair of return tickets for domestic trips this time," said Thang.

Explaining the non-availability of tickets for certain flights, a representative of Jetstar Pacific Airlines said HCM City and its surrounding areas had numerous industrial parks and big manufacturing companies where thousands of workers from northern region were employed. This had given rise to the increasing demand for air tickets from the city to other areas, mainly the northern region.

According to the budget carrier Vietjet Air, its one-way flight tickets on routes from HCM City to Da Nang, Binh Dinh, Hue and Hai Phong have almost been sold out.

A Vietjet Air representative said the carrier had put into use many new aircraft recently and opened more routes, increasing another 800 flights with 150,000 tickets available for the Tet holiday.

The carrier has also launched reduced fare programmes early, including a zero-price ticket programme, which has attracted a large volume of passengers, the representative said.

Meanwhile, the national flag carrier Vietnam Airlines recently announced an increase of 800 one-way domestic and international flights on routes in high demand, along with 136,000 seats on 22 routes. The firm has also announced various reduced fares but most of them have been sold.

Vietnam Airlines' passengers from HCM City now only have the choice of booking business class tickets because economy class ones have run out.

Buying tickets through the website has become a favourite and popular trend in recent times as it helps customers save time.

"The procedure to buy a ticket online is easy and saves time. With just a few clicks of the mouse one has the information. Customers can now book return tickets through the Internet," Director Tung from Nam Phuong Travel said.

Tung said the customers who had bought flight tickets through travel agents were mostly passengers living nearby or there were bulk bookings from delegations. "This helps airlines avoid the speculation by agents over airline tickets."

To provide better service to customers during the holiday, airlines including Vietnam Airlines, Jetstar Pacific Airlines and Vietjet Air, have committed to increase the number of staff service.

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Viet Nam has invested in upgrading its electricity transmission lines in preparation for importing power from Laos, according to the National Power Transmission Corporation (EVN NPT).

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Importing electricity from neighbouring countries, including Laos, is one of several measures being adopted to help Viet Nam meet the electricity demand for socio-economic development.

Workers check electrical equipment at transformer station 500kV Pleiku in Central Highlands region to ensure safe operation. The region would receive hydroelectricity imported from the Xekaman 1 hydropower plant in the south of Laos in 2016.

Chairman of the corporation Dang Phan Tuong said the Central Highlands region would receive hydroelectricity imported from the Xekaman 1 hydropower plant in the south of Laos in 2016.

The southern region of Laos will have four more hydropower plants in 2017, including Xekaman 4, Xekaman Sanxay, Sekong 3 and Sekong 3 Ha. Electricity from Xekaman 4 will be transmitted to Viet Nam through the 220kV Xekaman 3-Thach My transmission line, while electricity from the remaining plants will be transmitted to the Central Highlands region.

As a result, investment in the power transmission system between Viet Nam and Laos was essential, contributing to ensuring sustainable energy development, he said.

The EVN NPT has developed some power transmission projects to receive and transmit electricity from these hydropower plants in Laos to the Central Highlands region.

These projects are expected to help partially address the urgent requirement for electricity plants for the period ending in 2020 and have all been approved by the Prime Minister. They include the 200kV Xekaman 1-Pleiku 2 transmission line starting at the border between Viet Nam and Laos and reaching the 500kV Pleiku 2 power station, crossing the Kon Tum and Gia Lai provinces.

Construction of the project kicked off last August and is expected to be completed in March, with total investment capital of more than VND966 billion (USVND1,000,350 million).

Meanwhile, construction of the 500kV Pleiku 2 power station started in December 2014 and is expected to be completed in March, with total investment capital of nearly VND1.27 trillion (VND1,244,880 million). The station is designed to receive electricity from Laos, increase the efficiency of the 500kV Pleiku-My Phuoc-Cau Bong power line and ensure the reliable operation of the North-Central-South 500kV transmission system.

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Many supermarkets nationwide have collected used batteries, offered reusable bags and cut prices on energy-savings devices in response to the Earth Hour event scheduled from 8:30pm-9:30pm tonight.

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Besides promoting a green lifestyle on its online game Green Earth, the Big C supermarket chain has begun a long-term programme to collect used batteries at its offices and supermarkets nationwide.

The aim is to help raise awareness among its staff and customers about the potential harm to the environment caused by improper disposal of used batteries.

Big C is also offering reusable bags to shoppers at a low price to limit the use of plastic bags.

People gather at the Ha Noi Opera House on March 22 for the launch of Earth Hour

Similarity, LOTTE Mart supermarket chain is encouraging customers and staff to collect used batteries to protect the environment and save energy in peak hours.

Between 9am and11am on March 28, the supermarket will present environmentally friendly bags to customers who have contributed 1a0-20 used batteries.

All collected batteries will be transferred to a factory specialising in hazardous waste treatment, said Yoon Byung Soon, administrative director of LOTTE Mart Viet Nam.

In addition, Big C, LOTTE Mart and Saigon Co.op outlets, including Co.opmart chain, Co.opXtra, Sense City mall and Co.op Food stores, will turn off many of their lights for an hour from 8:30pm tonight in support of the Earth Hour Campaign.

Co.opmart chain and Co.opXtra have also cut prices between 28 and 50 per cent on thousands of energy-saving products until April 8, including rice cookers, rechargeable lights, electric fans and induction cookers of Comet, Rang Dong, Supor, Honey, Sunhouse, Bluestar and Lifan brands.

From March 30 to April 4, the supermarkets will present 350,000 eco-friendly bags and more than 70,000 essential products to shoppers who purchase products from companies that engage in eco-friendly practices, such as P&G, Unilever, Dutch Lady and Miliket Colusa.

Around 5,000 people are expected to take part in the 2015 Green Earth Hour Campaign in HCM City's Youth Cultural House on March 28, organised by Saigon Giai Phong newspaper in collaboration with the departments of Natural Resources and Environment, Industry and Trade, the HCM City Communist Youth Union and Saigon Co.op. Earth Hour was first organised by the World Wild Fund for Nature in Australia in 2007 for action to prevent climate change, and has since grown to become the world's largest voluntary action for the planet.

Viet Nam joined in 2009, with thousands of participants across the country.

Read more…

The Ministry of Information and Communications plans to launch 4G – the fourth generation of mobile telecom technology – in Viet Nam in 2015, Deputy Minister Le Nam Thang said.

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Speaking at an international conference on 4G LTE in Ha Noi on Thursday, he said the ministry intended to hand out licences for operating 4G services from 2016 after it has assessed market demand, technology, devices and other conditions.

"The 4G LTE [long term evolution] network has been growing fast all over the world. With advantages of providing high-speed internet access services and the popularisation of terminal devices, it can be confirmed that 4G LTE will be a main development trend in the global telecom industry in the coming time," he said.

Customers at a Viettel store. The Ministry of Information and Communications plans to launch 4G – the fourth generation of mobile telecom technology – in Viet Nam this year.

By the end of last year, more than 300 telecom firms in over 100 countries were providing 4G services, and 61 of them were in Asian countries. In 2014, the world had about 450 million 4G subscribers and the number is expected to nearly double to 830 million by the end of 2015.

The ministry had recently awarded licences to five enterprises for carrying out 4G pilot operations in a year. The firms are FPT Telecom, Viet Nam Posts and Telecommunications Group (VNPT), Viettel, CMC and VTC. Out of these, VNPT and Viettel are said to possess considerable experience in developing mobile networks and a good 3G infrastructure.

Thieu Phuong Nam, general director of Qualcomm Indochina, said Viet Nam and local network operators now had the advantage of deploying 4G, such as available bands provided by the government. Nam said the firms would consider many factors while investing in 4G, such as terminal devices, bands and services for 4G technologies.

"I think it is the right time for Viet Nam to deploy 4G," he said, "The new technologies have brought many opportunities, including the increase of speed and security on mobile devices, new business models for operations and effectiveness in education and health access."

Dae-young Kim, head of Samsung's Professional Service Group, said LTE subscriptions had seen a significant growth, from 200 million in 2013 to 450 million in 2014.

According to Kim, based on the number of global smartphones, LTE was expected to exceed 3G in 2015. Last year, 3G mobile phones accounted for half of the global phone sales, while LTE and 2G sets made up for 43 and 6 per cent, respectively. In 2015, the market share of LTE smartphones is projected to represent 48 per cent, leaving 3G phones behind with 46 per cent. The number of phones with 2G connections purchased this year will remain unchanged.

"Nowadays more people use mobile phones to access data and 4G helps users access data fast and conveniently," he said, adding that LTE was more economical than 3G.

The event, which also welcomed more than 400 experts and managers from government agencies and telecom companies, was organised by the Viet Nam Internet Association and the International Data Group (IDG)

Read more…

Vietnamese firms have been urged to take initiative and prepare for participation in the ASEAN Economic Community (AEC), which is expected to be formed by the end of this year.

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At a forum on the Government's e-portal held yesterday, experts said that besides offering many opportunities, the AEC will also pose challenges, such as the influx of products and services from neighbouring markets and skilled labourers, adding that, if Viet Nam does not enhance its competitiveness, the country might become a consumption market for other countries in the region.

According to Deputy Minister of Industry and Trade Nguyen Cam Tu, AEC is expected to create a firm base for Viet Nam to help integrate more deeply into the global economy.

ASEAN figures among the important trade and investment partners of Viet Nam. The export-import turnover of Viet Nam with ASEAN is estimated to be more than $40 billion

The integration process has put Vietnamese firms in urgent need for changes to promote advantages, Tu said. However, he pointed out that firms are seemingly not paying enough attention and businesses lack detailed information about the AEC.

Tu stressed that Viet Nam must follow the roadmap for the formation of the AEC as 2015 has already started, adding that the country must follow other integration commitments also.

Economist Nguyen Hong Son said there is a lot of work to be done ahead, including stabilizing the macro-economic situation and improving the business climate for enterprises.

Son added that coordination amongst the Government, enterprises and associations is also critical for the integration.

He pointed out that detailed information should be provided to companies to enhance their awareness about the AEC, as well as opportunities and challenges that will stem from being part of the association.

A recent survey conducted by the Ministry of Planning and Investment revealed that 76 per cent of domestic firms had no knowledge about the AEC, 94 per cent did not understand the content of negotiations, while 63 per cent were unaware of the opportunities and challenges involved in participating in the AEC.

Support should also be provided to the firms to connect with foreign-invested companies, which will help Vietnamese firms to participate further in the regional and global value chain, and to enhance their capacity to deal with potential risks, which might arise from changes in the global market and policies of foreign countries, Son stated.

It is therefore important for firms to enhance their management capacity, he added.

Experts at yesterday's forum also pointed out that human resources pose a major problem ahead of the formation of the AEC as Viet Nam is facing a shortage of skilled labour and suffers from low productivity.

When the economic community is formed, there will be a free flow of human resources among member countries, which might put Viet Nam at risk of brain drain and boost competition from other labour markets that possess better skills and higher productivity.

"The quality of our labour force must be enhanced to meet regional standards," Son said.

AEC is expected to be formed by the end of this year by 10 member countries, with an estimated combined GDP of US$2.5 trillion.

ASEAN figures among the important trade and investment partners of Viet Nam. The export-import turnover of Viet Nam with ASEAN is estimated to be more than $40 billion.

Read more…

Vietnamese retailers are facing fierce competition from several new foreign players in the market, who also have strong financial potential and experience.

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Responding to concerns about Thai commodities flooding the supermarkets, outdoor markets and convenience stores of the country, Prof Le Cao Doan from the Viet Nam Institute of Economics, said foreign enterprises from not only Thailand, but from South Korea, Japan, the United Kingdom, as well as the United States are planning to foray into the Vietnamese market.

Local retailers are facing fierce competition from several new foreign players in the market. Thai retailer Central Group recently announced the acquisition of 49 per cent of NKT New Solution and Technology Development Investment JSC through its unit Power Buy. The Vietnamese company is the owner of the well-known electronics retailer Nguyen Kim

However, the arrival of the new retailers will only benefit consumers, and local enterprises might fail in this competition, Doan stated.

The Deputy Minister of Industry and Trade Nguyen Cam Tu agreed, commenting during an online discussion held yesterday in Ha Noi that Viet Nam should not view the competition in a negative light.

"This could be an opportunity for Vietnamese companies to access new capital, and tap new and effective management experience," Tu added.

Tran Nguyen Nam, the deputy head of the ministry's Domestic Market Department, said the number of foreign firms penetrating the domestic retail market has risen sharply in the past few years with several big brands also entering the market.

For example, billionaire Charoen Sirivadhanabhakdi's retail conglomerate Berli Jucker (BJC) recently announced a plan to buy Viet Nam's cash-and-carrying wing of the Germany Metro AG for 655 million Euros (US$876 million).

The Central Group has two outlets in Ha Noi and HCM City and has acquired a 49 per cent stake in the company, which owns the Nguyen Kim electronic shopping centre chain.

However, Thailand is not the only investor paying attention to the local retail market, as other enterprises, such as Big C (France), Lotte, Lock&Lock (South Korea) and Aeon (Japan) are also rushing to develop their retail operations in Viet Nam.

Doan of the Viet Nam Institute of Economics said Vietnamese retailers lack capital and experience, and have low competitiveness.

Specifically, capital has been mainly invested in State-owned enterprises instead of small entities.

Dang Dinh Dao, the former head of the Institute of Economics under the National Economic University, added that the weakness of the local firms was high production costs and low quality.

In addition, Vietnamese firms should also strive to improve their prestige in the international market, he suggested

Read more…

Growing demand is expected to significantly boost commercial banks' credit for January, based on information from banks in the country's two largest cities Ha Noi and HCM City.

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The HCM City Statistics Office reported that the city's lending in January has risen by 11 per cent, against the same period last year, and is up 1.9 per cent from last month to VND1,057 trillion (US$49.39 billion).

During this month, lending for the Vietnamese dong contributed to a growth of 9.9 per cent against the same period last year, while lending in US dollars increased by 16.9 per cent.

Medium and long-term outstanding loans accounted for more than a half of the city's total loans, up 2.3 per cent from the same period last year.

Deposits at commercial banks in HCM City in January also grew by 10.5 per cent against the same period last year and are up 0.3 per cent month-on-month to VND1,293.7 trillion ($60.45 billion).

Deposits in US dollars accounted for 15.6 per cent of the city's total deposits, up 7.6 per cent against the same period last year, while deposits for dong jumped 11 per cent.

The Ha Noi Statistics Office also reported that the city's deposits in January grew by 1.1 per cent month-on-month to VND1,204 trillion ($56.26 billion), while the city's lending rose by 0.7 per cent to VND1,017 trillion ($47.52 billion).

Read more…

In January consumer prices in HCM City fell by 0.48 per cent month-on-month, the sharpest decline in January in several years as the slump in petrol, kerosene, and cooking gas prices had an impact on prices.

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But the January consumer price index (CPI) rose by 0.76 per cent from a year earlier, according to the HCM City Statistics Bureau.

The January consumer price index (CPI) rose by 0.76 per cent from a year earlier, according to the HCM City Statistics Bureau.

Since early 2014, fuel prices have fallen on 15 occasions. In January they fell by a further 1.5 per cent as prices of transportation services also dropped by 4.8 per cent.

Housing, electricity, water, and construction materials prices declined by 1.5 per cent, post and telecom services saw a 0.16 per cent decrease, and household utensils became 0.03 per cent cheaper.

Prices of drugs, education and health services remained unchanged. Some prices rose. Food prices went up by 0.34 per cent, beverages and tobacco by 0.22 per cent, hospitality services by 0.2 per cent, garments, footwear and hats by 0.19 per cent, and cultural and entertainment services by 0.1 per cent. The gold price index was down by 0.02 per cent while US dollar gained 0.58 per cent.

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Businesses have asked banks to give more unsecured loans based on business credit rating in a move to unclog the credit sources.

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At a forum held in Ha Noi late last week, Vice Chairman of the Viet Nam Youth Entrepreneurs Association Le Vinh Son said that it was difficult for businesses to access unsecured loans in Viet Nam, even though it was popular elsewhere in the world.

Vietnamese banks still gave loans based on mortgaged assets, Son said, adding that it made access to credit difficult for businesses, especially small and medium-sized ones.

A Vietcombank staff counts money. Businesses want better access to unsecured loans to develop production and weather the economic downturn.

State Bank of Viet Nam Governor Nguyen Thi Hong said that to increase unsecured lending, the central bank had so far instructed commercial banks to collect business information from the National Credit Information Centre and business credit rating organisations so that they could give loans without the customer mortgaging his assets.

The central bank had also implemented programmes to connect commercial banks and businesses so that banks could boost unsecured lending.

Hong said that the central bank would take more measures to unclog the credit sources, directing them to production and prioritised sectors.

The central bank considered the credit policy a key task this year. However, the credit boosting process must proceed with effectiveness and safety, she said.

The central bank would try to boost unsecured loans, while ensuring that the loans are repaid and bad debts limited, Hong noted.

Hong also urged businesses to improve their management capacity and have a transparent financial status to be able to access unsecured loans.

She said that banks were ready to provide enough capital to businesses that were solvent with feasible and effective business and production projects.

At the forum, bank representatives said that they had so far implemented several preferential credit programmes for businesses.

Vietinbank, for example, introduced 12 soft loan packages this year, with the lowest interest rate being five per cent for business, said the bank's Deputy General Director Tran Binh Minh.

At the forum, businesses also recommended that the relevant agencies should further minimise administrative procedures to streamline the lending process.

Read more…

Consumer price index (CPI) in the capital city witnessed a light surge while its industrial index registered a sharp increase this October, based on figures from its statistics office.

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The Thoi bao Kinh te Viet Nam (Vietnam Economic Times) newspaper quoted the office as saying the CPI here increased by 0.04 per cent month-on-month and 2.72 per cent year-on-year.

The growth rates, the lowest in the past 11 years, were attributed to the increase in goods supplies and the decrease in residents' purchasing power. In the first 10 months of this year, CPI here increased by 2.09 per cent.

Vegetables are sold at a market in the southern Ha Noi. Consumer price index in the capital city increased by 0.04 per cent month-on-month and 2.72 per cent year-on-year.

Infonet also quoted the office as saying that the capital city's industrial production index posted a 7.3 per cent month-on-month increase and a 7.9-per cent year-on-year surge.

This month, the prices of petrol and gas were reduced several times, leading to the 1.07-per cent month-on-month reduction in transport group expenses. However, taxi and other transportation fees remained the same.

Meanwhile, people's low demand for restaurant and catering services failed to prevent a 0.13-per cent month-on-month increase in the prices of such services. The price of rice went up by 0.54 per cent and that of other food, by 0.01 per cent.

The prices for housing and building materials, as well as electricity, water and fuel, posted a 0.04-per cent month-on-month increase because of a quiet construction market.

The retail price of gas increased by VND4,000 per 12kg tank since October 1 as a result of the two previous consecutive months of increase in the retail price of tap-water.

Gold prices fell by 3.98 per cent month-on-month while the US dollar exchange rate rose by 0.13 per cent month-on-month.

This month, the city witnessed year-on-year increases of 46.18 per cent for the mining industry, 7.81 per cent for the processing industry and 8.9 per cent for waste treatment activities.

In the first 10 months of this year, the industrial production index posted a 4.53-per cent year-on-year increase. Sectors posting increased production figures include mining, processing, electricity, fuel and waste treatment.

The city saw a reduction in the production of some sectors such as tobacco, electric equipment, paper and beverage.

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The lastest draft of the amended law on special consumption tax has apparently excluded online games from the list of goods and services to be taxed.

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The draft proposal has been submitted to the Eighth Session of the 13th National Assembly for discussion.

At a meeting held a month ago, several members of the National Assembly Standing Committee proposed that the tax be imposed on online games to deter the violence seen in some of the games, which are believed to have a negative impact on the impressionable youth.

Customers play online games at an Internet cafe. The lastest draft of the amended law on special consumption tax has apparently excluded online games from the list of goods and services to be taxed.

But the law drafting committee argued that a tax on online games might harm domestic game producers, who were locked in fierce competition with their foreign counterparts.

The tax rates on 11 of 16 groups of products and services currently subjected to special consumption tax remained appropriate to reality, according to the committee.

The tax rates on five groups of products and services, including alcohol, beer, tobacco, biofuel and the casino business, will be reviewed during the session.

Specifically, the draft law increases the special consumption tax on tobacco from 65 to 70 per cent beginning January 1, 2016, and from 70 to 75 per cent beginning January 1, 2019.

It also increases the tax on beer from 50 to 55 per cent beginning July 1, 2015; from 55 to 60 per cent beginning January 1, 2017; and from 60 to 65 per cent beginning January 1, 2018.

It will also raise the tax on liquor with 20 per cent alcohol or more from 50 to 65 per cent, and that on liquor with less than 20 per cent alcohol from 25 to 35 per cent.

The Government also proposed incentive tax rates of nine per cent on biofuel E5 and 8.5 per cent on biofuel E10, to encourage the use of environment-friendly fuel.

Abolition of the income tax on prizes that individuals have won in games or bets has been proposed. Instead, the special consumption tax on games or bets will be increased from 30 to 35 per cent.

Read more…

The Hau Giang Pharmaceutical Co (DHG) posted a net profit of VND142 billion (US$6.7 million) in the third quarter, down 32 per cent year-on-year.

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The company has explained that the sale of its famous medicinal Eugica trademark to Thailand-based Mega Life for VND122 billion ($5.8 million) was the main reason that pushed up third-quarter net profits in 2013.

For the nine months ending in September, DHG earned net profits of VND413 billion ($19.6 million), a year-on-year fall of 8.2 per cent.

Visitors study products of the Hau Giang Pharmaceutical Co, whose third quarter net profit went down 32 per cent year-on-year

Its third quarter net sales of VND908 billion ($43 million) marked a 12.7 per cent increase over the same period last year, but costs soared from VND180 billion ($8.5 million) to VND249 billion ($11.8 million), mainly due to a strong increase in promotion expenses including discounts and other forms of sales support.

In previous years, DHG had recorded the value of promotion as part of sales and cost of goods sold. However, the company's new policy does not allow this practice and the new figures better reflect its real net earnings.

The ratio of earning per share (EPS), which measures the net income earned per common stock, remained high at VND4,740 per share in the first nine months of this year.

The company did not have any long-term debts as of September.

Hau Giang Pharmaceutical is the biggest drug company on the stock market with a market capitalisation of VND8.2 trillion ($388.6 million).

DHG general director Pham Thi Viet Nga has been listed as one of the top five EY entrepreneurs of the year, the prestigious international prize awarded by auditing firm Ernst & Young since 1986.

DHG share price is being traded around VND91,000 ($4.31) per share

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Shares rose for the second session on the HCM City Stock Exchange but continued their retreat in Ha Noi yesterday.

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The VN-Index on the southern bourse jumped 1.92 per cent to 600.55 points. Market turnover increased 20 per cent over Monday to nearly VND1.8 trillion (US$84.9 million) as investors bought and sold 87.1 million shares.

The VN30 Index, representing the performance of the 30 largest stocks in terms of capitalisation and liquidity, advanced 0.9 per cent to end at 633.81 points, mostly thanks to the gains of Kinh Do Confectionery (KDC), up 3.5 per cent, PetroVietnam Drilling Services (PVD) and real estate giant Vingroup (VIC), both up four per cent.

The VN-Index on the southern bourse jumped 1.92 per cent to 600.55 points.

Meanwhile, six codes saw slight decreases in their value.

The VN-Index was moving around its resistance of 600 points, and some indicators showed that it could rally in the short term, said Bao Viet Securities Co's technical analyst Tran Xuan Bach.

Meanwhile, the company's strategy analyst Tran Duc Anh recommended investors buy shares of profitable securities, real estate and exporting firms.

"With the plunge of world oil prices, oil and gas companies are not recommended," he added.

On the Ha Noi Stock Exchange, the HNX-Index reached 87 points, declining 0.32 per cent.

The caution of traders prevailed, limiting money to the market. The trading value fell 22 per cent to VND626.6 billion ($29.5 million) on a total volume of 45.7 million shares.

The HNX30 Index, comprising the top 30 blue chips, also shed 0.32 per cent to reach 173.34 points.

However, financial stocks in the northern market outpaced to rally. The financial share index rose 0.26 per cent.

Foreign investors continued to be net sellers in terms of value. They widen their net by 27.6 per cent to VND62.4 billion ($2.9 million).

Read more…

Economic ties between Viet Nam and India have yet to match the vast potential and huge aspirations of their leaders, officials on both sides and entrepreneurs agreed at a meeting the Indian consulate held yesterday in HCM City to mark the launch of its "Made in India" campaign.

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Smita Pant, the Indian consulate general in HCM City, said India encouraged foreign investment in its market of 1.3 billion.

Vietnamese investors were also welcomed and the country had rolled out of a red carpet, she said.

"The potential is huge and as far as India and Viet Nam trade and investment relations are concerned, the business community is sitting on a gold mine, which needs to be explored."

Indian investment today in Viet Nam is close to US$1 billion and is all set to grow with the Tata Group investing around $2 billion in Soc Trang Province.

Besides online licensing, the Indian Government has also announced new policies for 24 sectors in which it is seeking investment, including construction, health, bio-technology, ports, aviation, railways, defence, and space, according to the diplomat.

She said this month there would be a high-level Vietnamese delegation including businesspeople visiting India.

Direct flights between India and Viet Nam are set to begin in less than two weeks' time.

A memorandum of understanding for twinning HCM City with Mumbai is under discussion, and efforts are going on to open an Indian bank branch in HCM City, according to Pant.

There is opportunity for India to get more investment from Vietnamese companies as Viet Nam is becoming one of the top investors in Myanmar and its investments in Bangladesh are growing.

Both these countries border India's north-eastern region.

"We call upon you to look at India with its huge market, privatisation exercise, ease of investment, and the commitment made by Prime Minister Narendra Modi himself to welcome investments," Pant said.

Some Indian companies have shown interest in investing in wind energy, bio-mass, hi-tech agriculture, and infrastructure.

Indian investment today in Viet Nam is close to US$1 billion and is all set to grow with the Tata Group investing around $2 billion in Soc Trang Province.

Le Phuoc Vu, co-chairman of the Viet Nam - India Business Forum and chairman of the Hoa Sen Group, said India was Viet Nam's biggest market in South Asia and Viet Nam's sixth largest trading partner.

Untapped potential

Mohan Ramesh Anand, the chairman of the Indian Business Chamber in Viet Nam, said Vietnamese companies had many opportunities to invest in India.

Vietnamese companies had invested more than $8 billion in more than 500 projects abroad, he said.

Besides the traditional markets of Laos and Cambodia, they had also made significant investments in Russia, Malaysia, Algeria, the US, Cuba, Myanmar, and Bangladesh, but had only three projects in India worth $23.6 million, he added.

According to the Foreign Investment Agency, India has 77 projects, most of them small, in Viet Nam to rank 27th among investing countries and territories.

Bilateral trade is worth around $5.5 billion, and is expected to cross $7 billion by 2015 and $15 billion by 2020.

Tat Thanh Cang, deputy chairman of the HCM City People's Committee, said ties between HCM City and India were a highlight of the bilateral relationship, with trade in 2013 worth almost $700 million.

But he admitted that the co-operation did not match the potential or expectations of the two sides.

Read more…

This northern province has committed to luring both domestic and foreign investors by providing favourable conditions for them.

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At a trade promotion conference held here last week, Deputy Prime Minister Hoang Trung Hai urged provincial authorities to focus on infrastructure development in order to make the province more attractive to investors.

Hai said Thai Binh should upgrade Highway 39B and the road linking the province to the Cau Gie-Ninh Binh Expressway, as well as push through with administrative reforms to enhance the province's competitiveness.

In 2013, the province attracted 736 projects worth VND102 trillion (US$4.8 billion), creating 143,000 jobs and ranking ninth in terms of investment. 

According to the authorities, the province is rich in natural resources, with coal reserves estimated at 210 billion tonnes and abundant stocks of mineral water and natural gas.

Its other advantages include vast rice fields with an annual output of more than one million tonnes and a coastline suitable for the development of eco-tourism and resorts.

In 2013, the province attracted 736 projects worth VND102 trillion (US$4.8 billion), creating 143,000 jobs and ranking ninth in terms of investment.

The province's gross domestic product reached VND27.7 trillion ($1.3 billion), a 7.5-per cent year-on-year increase, while its total economic output was estimated at VND37.2 trillion ($1.75 billion), an 8.8-per cent year-on-year increase.

The province is now home to more than 700 projects with investments worth more than VND75.8 trillion ($3.56 billion). Major projects include the Thai Binh Power Centre with a capacity of 1,800 megawatts and an ammonium nitrate factory with an annual capacity of 200,000 tonnes.

By the end of last year, the province had 3,801 businesses with a total registered capital of VND24 trillion ($1.14 billion) and 401 branches and representatives offices.

The conference, which the province and the Viet Nam Chamber of Commerce and Industry (VCCI) jointly organised, was a forum for investors to exchange information and explore investment opportunities in untapped areas of the province.

At the conference, provincial authorities granted investment licenses for a number of projects worth more than VND28 trillion ($1.32 billion) in the fields of electronics, auxiliary industry and mining, as well as agriculture, infrastructure, healthcare and the environment.

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The State Bank of Viet Nam (SBV) issued Circular 25/2014/TT-NHNN on 15 September 2014 containing guidelines for registering foreign loans that are not guaranteed by the Government (hereinafter referred to as foreign loans) as well as changes made to them. The Circular applies to residents that are enterprises, co-operatives, co-operative alliances and credit institutions other than State owned commercial banks, and foreign bank branches established and operating in Viet Nam as borrowers ("Borrower"), and organisations and individuals involved in the borrowing of foreign loans.

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Foreign loans required to be registered with the SBV include

1. Medium and long-term foreign loans;

2. Short-term foreign loans extended with a total loan term of more than one year;

3. Short-term foreign loans not extended but holding a balance on the first anniversary of the initial capital withdrawal, except when the Borrower repays it completely within 10 days after that date.

SBV has authority to certify registration of foreign loans and changes thereof for loans of more than US$10 million as well as foreign loans denominated in Vietnamese dong

Entities required to register foreign loans and changes thereof.

1. Borrower entering into a foreign loan agreement for direct disbursement in cash with a non-resident lender;

2. Credit institution or foreign bank branch providing loans authorised by non-resident principal;

3. Party with obligations to repay debt under the debt instrument issued to non-resident;

4. Lessee under a financial leasing contract entered with non-resident;

5. Importer of goods with deferred payment option.

SBV authority

SBV (Foreign Exchange Management Department) has authority to certify registration of foreign loans and changes thereof for loans of more than US$10 million as well as foreign loans denominated in Vietnamese dong. SBV branches in the province ("SBV branch") have the authority to certify registration of foreign loans and changes thereof for loans of up to US$10 million.

Procedures for registration of foreign loans

1. The Borrower must prepare and submit the request for foreign loan registration personally or by post to SBV or an SBV branch within 30 days of:

(1) the date of signing a medium or long-term foreign loan agreement; the date of signing a guarantee for the loan; or the date of signing the agreement for capital withdrawal based on the signed framework agreement, prior to actual capital withdrawal;

(2) the date of signing the extension agreement for short-term foreign loans to become medium or long-term loans;

(3) the first anniversary of the first withdrawal.

2. The SBV must provide written certification of foreign loan registration within 20-60 days after the date of receipt of the Borrower's eligible application. In case of foreign loans denominated in dong, registration procedures are concurrent with those needed to obtain the SBV Governor's approval. The written certification of foreign loan registration also signifies its approval.

Registration of changes to foreign loans:

1. If there are any changes made to the content of foreign loans that has already been certified by the SBV, the Borrower must register such changes with central bank, except in the following cases:

2. If the plan on capital withdrawal, loan repayment or expenses remittance is changed within 10 days of the loan registration being certified by SBV, the Borrower must notify such changes to the commercial bank or foreign bank branch where it has opened a loan capital account or foreign debt repayment account to withdraw capital or make repayments, and must not register the change with SBV.

Procedures for registration of changes:

The Borrower must submit the request for registering changes personally or by post with either SBV or the SBV branch that has certified registration of the foreign loan or the most recent changes to the foreign loan. The request must be submitted:

1. Within 30 days after the date of signing the agreement on the changes and prior to the effective date of the changes or prior to the time the change takes place (applicable to changes that do not require written agreement consistent with the foreign loan agreement),

2. Within 20 days after the date of receipt of the Borrower's eligible application, SBV must certify registration of the change in writing. In case the request is refused, SBV must respond and explain its reasons in writing.

The Circular takes effect on November 1, 2014 and replaces Article 1 of Circular 25/2011/TT-NHNN (August 31, 2011).

MAI COUNSEL

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Property developer Vingroup launched a new Vincom Centre on Sunday in Ha Long city in the northern province of Quang Ninh.

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Property developer Vingroup launched a new Vincom Centre on Sunday in Ha Long city

The five-storey centre, Vingroup's third, covers more than 37,000sq.m and was designed in a grand European architectural style.

The mall offers a wide selection of domestic and international brands. The facility includes a supermarket, restaurants and entertainment venues, as well as retail outlets.

Vingroup is Viet Nam's leading private sector real estate and tourism company. It includes subsidiaries such as Vincom for high-end shopping centres, Vinhomes for residential properties, Vinpearl for tourism and recreational facilities - and Vinmec for hospitals

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The new Law on Public Investment would reduce waste by tightening control over public spending, said Nguyen Thi Phu Ha, Deputy Director of the Ministry of Planning and Investment's General National Economy Department, at a conference in the Mekong Delta city of Can Tho on Monday.

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A road connecting Ha Noi and the central province of Nghe An has helped to reduce traffic jams and accidents. The new Law on Public Investment will better control spending on public projects including infrastructure.

This was a crucial initial step towards deciding the suitability of public investment projects and programmes in line with the Party and State's targets, Ha said. The law would also prevent the arbitrary approval of investment projects, simplify the approval process for investment policy and increase the responsibilities of decision-makers.

In Viet Nam, poor management and corruption are serious issues when it comes to public investment. The new law sets out specific regulations to prevent these problems.

The law, which was adopted by the National Assembly on June 18, will take effect on January 1. It comprises six chapters with 108 articles, stipulating the management and use of public investment capital; state management of public investment; and the rights, obligations and responsibilities of agencies, organisations and individuals with regard to public investments

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The HSBC Trade Confidence Index rose to 120 in the first half of 2014, the highest in three-and-a-half years, according to a report released by the bank on Wednesday.

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But the index is still below the record level of 132 reached in the first half of 2010.

Almost half of the polled importers, exporters and small- and medium-level firms expect trade to increase over the next six months.

Workers assemble sensor accessories at Sankoh Viet Nam Co Ltd. The HSBC Trade Confidence Index rose to 120 in the first half of this year, the highest in three-and-a-half years

A third of the 250 respondents to the survey, conducted between May and July, cited higher demand from key markets as the main reason.

They noted Viet Nam's central location in Asia, with 75 per cent of them saying their main trade partner was within Asia. They also said that trade agreements signed in recent years had had a positive impact on business.

Viet Nam has strong links with the West, and nearly 20 per cent of respondents said that Europe was the most promising region for trade over the next six months, while 8 per cent said North America.

Meanwhile, 54 per cent of those polled said the high costs of logistics, shipping and storage were a barrier to trade growth, and almost a quarter cited a lack of product demand.

The dong has stabilised since 2012, helped by the move into external surplus, but an increasing need for imports means the surplus will narrow in coming years. At least 22 per cent of respondents said they were concerned about currency volatility.

The Viet Nam economy is expected to grow strongly in coming years, and to support this rapid growth, investment expenditures will continue to expand, particularly in infrastructure.

Trade connections

Industrial machinery, the largest import sector, will continue to grow until 2030, with the sector contributing almost a third of Viet Nam's import growth.

China, India, Korea and Malaysia will be Viet Nam's fastest-growing import partners, taking advantage of geographical proximity.

Viet Nam has a diversified industrial base, and with continued investment, it will be well-placed to meet rising demand for consumer goods in emerging Asia.

Behind clothing and apparel, ICT equipment will remain its second-largest export sector until 2030. Strong ICT growth has given substantial scope for local suppliers to substitute currently imported components.

Samsung has led the growth of the ICT sector in Viet Nam, building in 2009 a US$2.5 billion mobile phone plant, which doubled its output each subsequent year.

Last year, it built another $2billion plant, and is considering a third factory.

ICT companies have been able to take advantage of the country's low costs, and large but well-educated workforce.

LG electronics, for example, also manufactures high-tech electronics in Viet Nam and has plans to expand its operations.

In the short term, Viet Nam's exports are expected to grow by more than 11 per cent annually between 2014 and 2020, led by the ICT and textile and garment sectors.

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Vietnamese rail authorities have promised that the cost of the 13km, sky-train project from Cat Linh to Ha Dong will not rise again.

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The project was approved in 2008 for a total investment of about US$552 million. China contributed $419 million.

However, the overall cost rose to $892 million in April, a 61.5 per cent surge.

The project was approved in 2008 for a total investment of about US$552 million. China contributed $419 million. However, the overall cost rose to $892 million in April, a 61.5 per cent surge.

The acting director of the Railway Project Management Board, Nguyen Manh Hung, said that this was due to inflation and exchange-rate fluctuations between the Chinese yuan and the US dollar.

Project modifications also added to costs. Changes to the original project include the construction of three-level stations instead of the proposed two-levels.

The trains themselves were upgraded from steel to stainless steel, the route itself was changed slightly – and the train depot was relocated.

The three-level stations will cost $133 million, an increase of $84 million of which $43 million is due to inflation and $40 million due to the modifications outlined.

The roomier stations will reduce the amount of land clearance required and save the State about $43 million in relocating residents.

Upgrading the body of the trains to stainless steel will cost an extra $3 million, but this also means eliminating the need to invest in a paint shop worth of $2.5 million.

The rising cost of training staff, construction materials and wages also contributed to the increases. The project is scheduled to be completed next year.

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