Thirteen years after it opened, the SaiGon Hi-tech Park (SHTP) has achieved total sales of 13.6 billion USD, including 13.5 billion USD in export value. Since the first company was licensed at the SHTP in September 2005, HCM City has issued licences to 101 additional companies with a combined investment of 4.9 billion USD, of which FDI accounted for over 4 billion USD. SHTP’s products now make up 94 percent of HCM City’s hi-tech products, according to Le Hoai Quoc, head of the SHTP Management Board. As of September 2015, 82 investment projects in the park remained valid, with total registered capital of 4.38 billion USD. These include 46 operational…
Deputy PM hails Citigroup’s business expansion in Vietnam
Deputy Prime Minister Vu Van Ninh expressed his support for Citigroup to expand its operation in Vietnam while receiving Chief Executive Officer Michael L.Corbat in Hanoi on October 23. He was delighted that many foreign investors, including Citigroup, have chosen Vietnam as a business destination. On the occasion, the host also wished that Citigroup would continue assisting Vietnam in personnel training for the finance-banking sector. Corbat, in response, lauded the Vietnamese government for its successes in macro-economic stability, equitisation of State-owned enterprises, economic restructuring and administrative reform. Citigroup wants to continue providing Vietnam with hi-quality personnel training and an insight into regional and global economic developments, he said, adding that…
Taiwanese firm builds bike production cluster in Binh Duong
A cooperation agreement to build a bicycle production cluster in the southern province of Binh Duong was signed between representatives from the Active International Vietnam Co., Ltd and the Becamex IDC on October 23. Under the document, Active International Vietnam chose the Bau Bang Industrial Park (IP), which was invested by Becamex IDC, to house the cluster. The project, with an estimated cost of 200-250 million USD, will be built on an area of 80 hectares in the Bau Bang IP. Once completed and operational, it is expected to attract 45-60 businesses and generate jobs for 10,000 labourers. The Active International Vietnam is a subsidiary of Taiwan (China)’s DDK Corporation,…
What are the assets of the middle class in Vietnam?
According to a report published by Credit Suisse in October, 14% of the 664 million adults in the world are in the middle class. This report is determined based on the total assets of people, not income. Accordingly, Vietnam has 3 million people classified as the middle class, accounting for 0.5% of the population and only a small fraction of the more than 63.6 million adults. Total assets of this group in 2015 is from $5,030 to $30,000. The average amount of assets of the middle class in Vietnam is about $18,074. With this figure, Vietnam was ranked 57th of 66 countries surveyed by Credit Suisse. This level is also…
Steel industry might grow 12 percent in next 2 years
The steel industry will grow 12 percent in the next two year under the impact of the Trans-Pacific Partnership (TPP), Nguyen Minh Nhut, director of BlueScope Steel Vietnam Limited, said at a press conference on October 21. He noted that the sector itself does not benefit from tariff reduction or elimination under the TPP. However, the TPP is expected to boost investment in other sectors, which will drive demands for construction, thus pushing up demand for steel. The sector’s current annual growth rate is seven percent. Australian steelmaker Blue Scope has established its facilities in Vietnam for 20 years with three factories built at a cost of 130 million USD.…
Japanese enterprises not yet to capitalize on FTA with Vietnam
Many Japanese firms in Vietnam have failed to make the most of the tariff preferences under Vietnam-Japan free trade agreement, said Atsuko Fukagawa, deputy managing director of the Japan External Trade Organisation (JETRO) office in Ho Chi Minh City. She made the remark at a workshop on the Vietnam-Japan Free Trade Agreement (FTA) and Economic Partnership Agreement (EPA) in Ho Chi Minh City on October 21. A JETRO survey of Japanese enterprises in Asia and Oceania last year indicated that the FTA utilization rate among those operating in Vietnam, at 36 percent, is relatively lower than that of their peers in the region, for example, Indonesia (58.2 percent), Thailand (53.7…
Vietnam to attend Trade Expo Indonesia 2015
Vietnam is attending the 30th Trade Expo Indonesia 2015 in Jakarta from October 21 to 25. The annual event attracts domestic and international enterprises seeking investment opportunities, information exchanges and a way to introduce their products to partners across the world. The Vietnam booth will disseminate Vietnamese enterprises’ images and products to foreign partners. The 2014 expo drew participation from more than 10,000 visitors from 100 countries and territories, with trade transactions coming to a total of more than 1 billion USD. The Indonesian government introduced several measures to stimulate the economy, attract investment and bolster ASEAN economic growth. Finance Minister Bambang Briidjonegoro said the government expects the economy to enjoy faster growth…
Vietnam-Laos oil pipeline survey conducted
The authorities of the central province of Quang Binh held a working session with the Laos Petro Join Stock Company on October 19 to discuss the outcomes of a site survey for a bonded warehouse and oil pipeline in Vietnamese territories, reported the Lao Dong (Labour) newspaper. The survey is part of a project to construct a bonded warehouse and an oil pipeline from Quang Binh’s Hon La Island to Khammouane province in Laos. As planned, the Hon La bonded warehouse will span 30 hectares with a total capacity of about 150,000-200,000 cubic metres. The oil pipeline from Hon La to the Cha Lo border gate will have total length…
Revised Commercial Law to be in line with economic integration
The Commercial Law should be revised in line with the current legal system and market, said Nguyen Sinh Nhat Tan, Director of the Department of Legal Affairs under the Ministry of Trade and Industry, at a workshop on October 20 in Ho Chi Minh City. Since 2008, the People’s Courts at all levels have handled more than 81,000 trade-related cases with nearly 65,000 of them settled, according to the Supreme People’s Court. The figure is expected to increase in the coming time, when Vietnam enters free trade agreements, Tan said, adding that the revised law should create a full legal corridor for handling trade disputes. Meanwhile, Prof. Do Van Dai,…
Labour rights violations inspected in apparel industry
A pilot labour inspection campaign in the apparel industry uncovered 1,786 violations at 152 businesses in 12 cities and provinces across the country, according to the Ministry of Labour, Invalids and Social Affairs (MoLISA). The inspections were conducted from May to September this year by MoLISA inspectors in co-ordination with the International Labour Organisation (ILO), the Vietnam General Confederation of Labour, and the Vietnam Chamber of Commerce and Industry. MoLISA Deputy Minister Huynh Van Ty said the apparel industry was chosen for the test inspections because it had been a key foreign currency earner for Vietnam in recent years, bringing in 13.6 percent of the country’s export revenue and 10.5…
Labour rights violations inspected in apparel industry
A pilot labour inspection campaign in the apparel industry uncovered 1,786 violations at 152 businesses in 12 cities and provinces across the country, according to the Ministry of Labour, Invalids and Social Affairs (MoLISA). The inspections were conducted from May to September this year by MoLISA inspectors in co-ordination with the International Labour Organisation (ILO), the Vietnam General Confederation of Labour, and the Vietnam Chamber of Commerce and Industry. MoLISA Deputy Minister Huynh Van Ty said the apparel industry was chosen for the test inspections because it had been a key foreign currency earner for Vietnam in recent years, bringing in 13.6 percent of the country’s export revenue and 10.5…
Expectations positive for Q4 business prospects
About 85.6 percent of the surveyed 4,028 enterprises in the processing-manufacturing sector expect to maintain their current growth trends or expand their business operations in the fourth quarter, according to the General Statistics Office (GSO). Data from the GSO showed that 46.8 percent of respondents were upbeat about their performance prospects, another 38.8 percent forecast stable business operation while 14.4 percent said that they would face difficulties. Escalating and stable output production will be seen in 86.2 percent of the surveyed businesses while only 13.8 percent forecast a decline. The foreign-invested sector has the highest amount of enterprises expecting a productivity surge in the last quarter of this year with…
MobiFone asks for four million numbers
The MobiFone Telecommunications Corporation has asked the Ministry of Information and Communications to have 4 million additional numbers with the prefixes “086”, “087”, “088” and “089” serving the domestic market. The proposal was made by Bui Son Nam, head of Mobifone’s Business Department, during the company’s Q3 business performance review meeting held in mid-October in Hanoi. At the meeting, Le Nam Tra, chairman of the Mobifone, said that by September this year, Mobifone accounted for a market share of 26.11 percent or a year-on year growth of 1.6 percent. The number of new subscribers reached 11 million with a year-on-year increase of 94.7 percent. In the first nine months, the…
Japanese firms suggested pouring investments into agriculture
Ministry of Agriculture and Rural Development official Nguyen Do Anh Tuan has suggested that Japanese enterprises should prioritise investments in seed production and breeding, support industries for farming, biological technology and produce maintenance in Vietnam. He also suggested that they develop farms, fish ports and irrigation works, adding that the country had been accelerating administrative reforms and support policies to attract investors into these areas. Tuan noted that, although advantages related to nature and farmers facilitates Vietnam’s agricultural development, the country’s products still remain cheap with the lack of modern technology application and linkages between production and distribution. Mori Mutsuya, Chief Representative of the Japan International Cooperation Agency (JICA) in…
Vietnam, Japan seek stronger IT cooperation
Vietnam is keen to learn from Japan’s experience in information technology (IT) as the country boasts strength in this field, said President of the Vietnam Software and IT Services Association Truong Gia Binh. Speaking at the Vietnam-Japan IT Festive Day that took place in Ho Chi Minh City on October 14, Binh said most of Vietnamese software businesses see their turnover increase thanks to exports to Japan. He suggested the two countries’ businesses take the opportunity created by the festive day to explore new areas for cooperation. Hirotaka Yasuzumi, Chief Representative of the Japan External Trade Organisation ( JETRO ) in HCM City, said Japan’s direct investment in Vietnam’s IT…
Government proposes higher tax on vehicles
The Government wants to raise the special consumption tax on vehicles with high engine displacement, according to a statement it delivered to the National Assembly recently. If the Government’s proposal is approved by the lawmakers this year, vehicles with an engine displacement of 3,000cu.m to 4,000cu.m; 4,000cu.m to 5,000cu.m; and 5,000cu.m to 6,000cu.m will see tax increases from 60 percent to 90 percent, 60 percent to 110 percent, and 60 percent to 130 percent, respectively. In particular, vehicles with engine displacement of more than 6,000cu.m will see the highest tax increase of up to 150 percent from its current tax rate of 60 percent. Meanwhile, the Government has proposed that…
Contracts worth over 9 mln USD signed at Vietbuild
Up to 2,412 contracts worth more than 200 billion VND (9 million USD) were signed at the Vietbuild international exhibition fair on construction, building materials, real estate and interior decor, freshly closed in Can Tho city. Besides, a number of foreign companies pledged to open representative offices in Mekong Delta city and Vietnam in general. The annual event hosted more than 200 local and foreign enterprises with nearly 500 booths, helping firms seek cooperation and partnership opportunities. Conferences and forums were also organised on the sidelines of the six-day fair.-VNA http://en.vietnamplus.vn/contracts-worth-over-9-mln-usd-signed-at-vietbuild/83056.vnp (151014)
Experience in building Pharmacy Law shared
The Pharmacy Law has helped strengthen State management over pharmacies and ensured the people’s right to quality medicine over its 10 years in existence, but now it needs to be updated, said Deputy Health Minister Pham Le Tuan. Tuan made the statement on October 9 at a workshop where participants shared experience and discussed how to build a better Pharmacy Law to protect patients. The Drug Administration of Vietnam and the European Chamber of Commerce in Vietnam organised the event. According to Tuan, the Ministry of Health recently submitted the 2005 Pharmacy Law to the National Assembly for revision. Experience learnt at the workshop would help complete the amended law,…
EVN secures electricity supply in October
Electricity of Vietnam (EVN) expects that maximum daily electrical capacity will remain below the available grid power throughout October. The country is expected to consume up to 24,790 MW per day in October, while the national grid is capable of providing between 28,000 and 29,080 MW. As such, domestic electricity consumption will be secure with sufficient backup. Due to extreme weather caused by El Nino, most reservoirs have recorded low water levels. By the end of September, total water volume across all reservoirs fell 22 billion cubic metres below last year’s level. EVN has set goals for effective use of hydropower plants and water storage facilities. It has also planned…
HCM City: Housing supply increases sharply
Seventeen existing and new projects made a total of 9,550 apartments available in the real estate market of Ho Chi Minh City in the third quarter of this year, announced Savills Vietnam, the largest property company in the country, at a press conference on October 7. Of the figure, 5,220 units were sold, up 4 percent compared to the second quarter, with Districts 2, 7 and Binh Thanh accounting for 57 percent of the transactions. Savills Vietnam predicted about 57,000 apartments from 92 existing and future projects will be available for purchase from the fourth quarter of this year to 2017 In the July-September period, as many as 1,680 villas…
Japanese firms eye supporting industry in Vietnam
Japanese businesses from the Kansai region have said they are interest in the Vietnamese market, and keen on expanding trade and investment connection with Vietnamese partners, especially in supporting industry, in the time ahead. They expressed their interest during workshops in the Japanese cities of Osaka and Kobe on October 6-7, which aimed to forge links between Japanese and Vietnamese businesses in the supporting industry. Japanese firms said they hope for further facilitation from the Vietnamese Government and local-level authorities, enabling them to do business smoothly in Vietnam. During the workshops, participants were updated on information of Vietnam’s recent economic development and business climate, and those related to the country’s…
TPP – bright future for participating countries
Once ratified by member country parliaments, the newly-reached Trans-Pacific Partnership (TPP) agreement will open up a new road to the future of cooperation and integration in the region, which requires each member to improve itself to greet both opportunities and their coupled challenges. October 5, 2015 marked a historical milestone for the 12 TPP countries as their trade ministers reached final consensus on the world’s largest free trade agreement after more than five years of negotiations. The TPP is a multi-lateral free trade agreement that involves not only goods and services but also non-trade affairs. Once it comes into effect, it will delineate the world’s largest free trade area with…
Labour confederation calls for higher wages
The Vietnam General Confederation of Labour (VGCL) on October 6 proposed a new minimum wage increase of 14.4 percent for the 2016 year, higher than the 12.4 percent increase decided by the National Wage Council back in September. The confederation stood firm by the argument that the country’s workers were entitled to a minimum wage increase at least equal to the previous year, roughly 14 percent. They said that, especially with positive signs in the economy’s first nine months of this year, wages should reflect next year’s promising outlook. The 14.4 percent increase was also justified by pointing to this year’s 0.5 percent year-on-year increase in GDP growth, projected to…
HCM City plans massive special economic zone
Ho Chi Minh City plans to set up a special economic zone spread over the four districts of 7, Binh Chanh, Nha Be, and Can Gio to develop its maritime economy and logistics industry. The HCM City Development Research Institute, which has provided the draft of the zone to the city administration, said the zone would spur the development of the area and create jobs and other livelihoods for local residents. It also said it would promote tourism and help preserve the Can Gio Mangrove Biosphere Reserve and help develop the entire southern region. In a report, it said the establishment of the zone would help convert an inefficient agricultural…
WB forecasts Vietnam’s economy will expand 6 percent
The World Bank forecast that the Vietnamese economy will grow at a speed of 6 percent in 2015, according to the East Asia and Pacific Economic Update released on October 5. The country’s poverty rate is expected to reduce with extreme poverty, which is currently set at living on 1.90 USD per day or less, tapering off from 2.8 percent in 2012 to 1 percent in 2017. Meanwhile, the population living under 3.10 USD per day is predicted to dwindle to 6.7 percent in 2017 from 12.3 percent in 2012. Economic recovery and stable macro-economic conditions will further reduce poverty. However, slower agricultural growth will affect rural resident incomes, thus…
HCM City in need of manual workers
More manual workers will be recruited over the next three months in HCM City to prepare for the Tet holiday next year, a survey conducted by the Centre for Human Resource Forecast and Labour Information has found. Manual workers comprise 35 percent of the 70,000 employees (about 24,500 people) needed in the year’s fourth quarter. Of the total, 17,000 employees will be needed for October; 20,000 for November and 33,000 for December. Most of the employees will be hired in fields such as sales, services, IT, textile-garment, tourism, and insurance. About 30,000 seasonal jobs, many of them in sales, textile-garment and, hospitality, will also be needed. In the third quarter,…
Tien Giang: Export turnover hits record high
Export turnover in the Mekong Delta province of Tien Giang hit 1.32 billion USD in the first nine months of this year, up 23 percent compared to the same period last year – the highest growth recorded thus far. According to the provincial Department of Industry and Trade, the figure reached nearly 83 percent of the yearly target. Key export products included garment-textiles, handbags and leather footwear which together accounted for 60 percent of the turnover in the period, up nearly 50 percent year-on-year. Handbag exports posted double growth while garment-textiles increased about 143 percent in terms of volume and 30 percent in value. Notably, foreign direct investment enterprises accounted…
Printing, packaging to grow
The printing and packaging industries are expected to grow by 15-20 per cent in output this year, according to the Viet Nam Printing Association (VPA). The local printing market has steadily grown, with industrial packaging and label printing accounting for 80 per cent of the total output of the industry, said VPA Chairman Nguyen Van Dong. Industrial production expansion had contributed to the growth of industrial packaging and label printing, Dong said. Dong spoke at the 15th Vietnam International Printing & Packaging and Food Processing Industry Exhibition that opened yesterday in HCM City. Nearly 1,500 industrial packaging printing enterprises are operating nationwide with total revenue of more than US$2 billion,…
Japanese developers enter Vietnam’s property market
Japan’s two leading property companies, the Daiwa House Group and Nomura Group, have revealed their intention to join hands with Sumitomo Forestry Co., Ltd to invest in Vietnam’s market. The three companies plan to pour 27 billion JPY (224.6 million USD) in a 1,000- luxury- apartment complex in Vietnam. The decision was prompted by increasing demands for luxurious condominiums in the Vietnamese property market spurred by loosened ownership regulations and stellar economic growth. The complex will be built on an area of 28,000 square metres in Phu My Hung urban area in Ho Chi Minh City, which is billed as one of the most modern urban centres in Vietnam and…
University graduates face high unemployment
Recent statistics from the Ministry of Labour, Invalids and Social Affairs highlight that the nation has issues to tackle in its development of human resources. Unemployment amongst graduate and post-graduate workers in Vietnam jumped from 162,000 to 178,000 in the first three months of the year. The national unemployment rate is at 2.43 percent, yet workers with college degrees are facing the highest unemployment rate of 7.2 percent. These numbers were mentioned at the Central Institute for Economic Management (CIEM)’s conference held in Hanoi on September 29, where attendees discussed measures to better develop the nation’s human resources. Speaking at the conference, CIEM Deputy Director Nguyen Thi Tue Anh said…