Analysts noted that the market’s heyday, when the growth rate was high at over 20 percent per annum, is over. Since 2013, the growth has slowed down to 5 percent. Manufacturers now compete fiercely with each other to obtain larger market shares. The ad pieces about instant noodle products rarely appear on TV and mass media these days. Some manufacturers advertised that their products are safer than others because their noodles are made of potato and green beans. Others say they do not use toxic colorings for their products. More recently, manufacturers rushed to market new products – noodles with eggs. Meanwhile, a new war of products with spicy and…
Can Tho to focus more on services sector
CAN THO – Can Tho City will attend more to the quality of economic growth and development of the services sector in the restructuring of its economy with services, industry and agriculture on focus. The economic structure of Can Tho was unveiled by Tran Quoc Trung, deputy secretary of Can Tho City’s Party Committee, when he replied to the Daily’s relevant question at a press conference in the Mekong Delta city on Monday. Trung said in the past years, the city’s economy has grown on an industry-service-agriculture structure but it is very difficult for the city to attract investments in industrial projects while infrastructure and services cannot meet the demand…
Vietnam, Japan issue joint vision on relations, ink six deals
Vietnam and Japan on September 15 issued a statement on a join vision for their relations on the occasion of Vietnamese Party General Secretary Nguyen Phu Trong’s official visit to Japan from September 15-18. Vietnam affirmed that Japan continues to be its leading and long-term partner while Japan said it treasures Vietnam’s position in its foreign policy in Asia-Pacific. The two countries asserted their determination to promote their all-round relationship across the board in the interests of their people to contribute to peace, stability, cooperation and prosperity in the Asia-Pacific region and the world. Earlier, Party General Secretary Nguyen Phu Trong and Japanese Prime Minister Shinzo Abe witnessed the signing…
VN airline signs strategic agreement with Japanese finance corporations
VietNamNet Bridge – Private airline Vietjet and Mitsubishi UFJ Lease & Finance Company Limited (MUL), a member of Japan’s leading finance group Mitsubishi UFJ Financial Group (MUFG), signed a memorandum of understanding (MOU) yesterday in Tokyo on the sidelines of the official visit of Party Chief Nguyen Phu Trong to Japan. Japan’s Prime Minister Shinzo Abe and General Secretary Nguyen Phu Trong witnessed the signing of the MOU, which will pave the way for MUL to finance Vietjet’s leasing and acquisition of three brand new A321 aircraft, worth US$347.2 million, according to the manufacturer’s listed price. These three aircraft are part of a contract signed earlier between Vietjet and European…
2016-20 State budget released for 20 fields
HA NOI (VNS) — The Prime Minister has signed a decision on the criteria and distribution of the Stage budget for the 2016-20 period. According to the decision, the State budget’s development and investment fund will be distributed to socio-economic infrastructure projects in 20 fields. These include agriculture-forestry-irrigation and aqua-culture, industry, trading and traffic, as well as waste treatment, museums, culture and sports. Also on the list are tourism, science, information services and technology, as well as communications, education, health and food hygiene and society. Rounding up the list are the environment and natural resources, State management, national defence and the national reserve. The State budget’s distribution must serve the…
Foreigners can’t buy, sell houses with cash
Foreigners buying or selling houses in Vietnam are required to carry out transactions through banks in the country and not in cash, the central bank has decreed. They can get mortgages if they meet banks’ requirements, the State Bank of Vietnam (SBV) said further in a document it has issued to guide the buying and selling of houses by foreign individuals and organisations. The tenor of the loans cannot exceed the time they live and work in Vietnam , while for organisations and other legal entities, it will not exceed their licence period. Amendments to the Housing Law that took effect on July 1 permit foreigners and overseas Vietnamese to…
Seven additional investment projects roll into Binh Thuan
Seven additional investment projects will be carried out in the central province of Binh Thuan, as agreed between local authorities and investors at a promotion conference held in the locality on September 12. Most of the large-scale projects focus on the province’s strengths, including the Hoa Thang 1 Wind Power Plant, a solar power plant, the Vietnam-Cambodia friendship tourism site and a milk processing plant. Chairman of the provincial People’s Committee Le Tien Phuong affirmed that Binh Thuan is one of the most attractive destinations for investors in Vietnam, especially for tourism and the energy industry, given the favourable investment climate in the locality. He highlighted that thanks to the…
Toshiba extends backing for higher education
Toshiba Corporation last week announced its continued commitment to granting scholarships for eligible individuals in Vietnam to get access to quality tertiary education through Vietnam National University Hanoi (VNU-Hanoi) and Vietnam National University HCMC (VNU-HCMC). On the occasion, the company hosted two ceremonies to mark the 10th year of scholarship awarding at VNU-Hanoi and VNU-HCMC. Toshiba has funded the scholarship program since 2005 which has benefited more than 400 recipients to date. Toshiba will provide each of universities with 1.6 million yen per year. Selected post-graduate students will get annual scholarships covering tuition fees and living expenses. Apart from scholarships, Toshiba established a laboratory to develop platform technology for embedded…
Vietnam, UK deepen educational bonds
Deputy Prime Minister Vu Van Ninh reiterated education is Vietnam’s top national policy while attending the Vietnam-UK Education Forum held in London, the UK, on September 11. The forum looking to establish bilateral sustainable education partnership brought together representatives from leading 100 universities and academic organisations from both sides. Deputy PM Ninh also told participants that the training of human resources of high calibre has been defined as one of the strategic breakthroughs being pursued by Vietnam to achieve sustainable development and integration, expecting the forum would foster partnerships in this regard. He informed that under the law on higher education issued in 2012, local universities are working to strengthen…
Samsung to diversify operations in Vietnam
HANOI – South Korea’s Samsung is looking to foray into new areas in Vietnam such as energy and insurance after it has reaped success in the electronics industry. At a meeting with Minister of Information and Communications Nguyen Bac Son on September 9, Samsung Vietnam general director Han Myoung-sup said after the success of Samsung Electronics, many other units of the group are seeking to invest in other sectors like energy and insurance. Han said the total workforce at the Samsung factories in the northern provinces of Bac Ninh and Thai Nguyen has exceeded 110,000. The company has also invested in a research and development center (R&D) in Hanoi with…
Food, beverage markets thrive
The food and beverage sectors have enormous potential for development with a stable annual growth rate of 7-8 percent, according to the Vietnam Beer, Alcohol and Beverage Association (VBA). With the population of more than 90 million, the food and beverage sectors are key industries and make significant contributions to the country’s economy, said Nguyen Van Viet, chairman of the association. Many domestic and foreign enterprises are seeking opportunities to invest in food and beverage sectors with potential market, Viet said at the opening ceremony of the 19th International Exhibition on Food & Beverage and Food Processing & Packaging Technology & Equipment that opened on September 9 in HCM City.…
Ministry proposes increase to special consumption tax
HA NOI (VNS) — The Ministry of Finance has proposed to increase special consumption tax on imported goods to ensure fair competition between locally manufactured products and imported ones. Under the current regulations, the special consumption tax on imported goods is calculated keeping in mind their cost, insurance, and freight (CIF) value plus current import tariff. However, the ministry said the import tax on automobiles and air-conditioners would be lowered to zero under the country’s commitment to international integration. The current special consumption tax on imported goods would not ensure fairness between local and imported items. It could become vulnerable for importers to take advantage of the tax cut for…
Private investment needed in infrastructure
Demand for transport infrastructure is increasing, so the Ministry of Transport must review transport system planning and seek private investment for transport projects, according to officials at a workshop. The meeting was held by the Vietnam Institute of Economics and the Bank for Investment and Development of Vietnam (BIDV) on September 7. It focused on promoting investment in transport infrastructure. The demand for investment in transport infrastructure between 2016 and 2020 had grown to 1 quadrillion VND (45 billion USD), said Nguyen Danh Huy, Director of the Public-Private Partnership Department at the Ministry of Transport. The State budget is limited. It can provide about 28 percent. However, the Ministry of…
Da Nang leader holds dialogue with Japanese enterprises
Chairman of the central city of Da Nang’s People’s Committee Huynh Ngoc Tho held a dialogue with Japanese companies on September 9 to address any arising problems. At the dialogue, Japanese enterprises raised difficulties in investing in Da Nang, mainly in infrastructure, land, the environment, administrative procedures, enterprise assistance, worker policies and training human resources training. They also suggested building a competitive business environment in the city. Tho answered questions raised by Japanese investors and promised to create the most favourable conditions for them and resolve problems quickly. He said Da Nang defines Japan as one of its important partners, noting that the dialogue will help the city improve its…
Opportunities abound for agriculture startups
HCMC – Newly established businesses in the agricultural sector can have a lot of growth opportunities as demand for food is rising as a result of growing populations at home and abroad, according to experts at a forum in the Mekong Delta city of Can Tho last week. Huynh Quang Vinh, deputy general director of An Giang Fruit-Vegetables & Foodstuff JSC, told a discussion at the Mekong Connect CEO Forum that the Mekong Delta is in dire need of solutions and equipment to preserve post-harvest farm produce. Meirav Eilon Shahar, Israeli Ambassador to Vietnam, said in a video clip shown at the discussion that domestic business startups are mainly in…
Plan proposes increase in pension
HA NOI — A new proposal to increase pension for the elderly who are receiving less than VND2.5 million (US$111) a month, has been submitted to the government for its approval. The labour, invalids and social affairs ministry said the pension would be increased by VND250,000 ($11) per person per month for those who retired or were granted subsidy for occupational health loss prior to April 1993. The time-frame was set so that it was compatible with the national budget’s funding capacity, the ministry said. The proposal also said the pension amount a person would receive after the adjustment would not be more than VND2.5 million ($111) a month. It…
Viettel to pilot 4G technology in rural areas next month
Viettel Group is going to pilot 4G technology in October, said Do Minh Phuong, deputy general director of the Viettel Group. Plans call for Viettel to set up 12,000 4G base transceiver stations no later than in the first quarter of next year, he added. The 4G network will first offer services in communes, followed by districts, provinces and cities. However, Viettel users will have to change SIM cards if they use 4G services, though phone numbers will remain the same. Le Dang Dung, Viettel deputy head, sent a proposal to the Ministry of Information and Communications to grant a licence for 4G services for Viettel this year, which it…
Regional minimum wage to rise 12.4 percent next year
The regional minimum wage in 2016 will be raised by 12.4 percent as approved at the third meeting of the National Salary Council on September 3. The increase level for Region 1 is 400,000 VND (17.8 USD) while the respective figures for Region 2, 3 and 4 are 350,000 VND (15.6 USD), 300,000 VND (13.3 USD), and 250,000 VND (11.1 USD). The expected minimum wages will be 3.5 million VND (155.6 USD), 3.1 million VND (136.4 USD), 2.7 million VND (118.8 USD), and 2.4 million VND (105.6 USD), respectively. Regionally-based monthly minimum wages vary in four different regions based on four separate benchmarks determined by living standards in each area. …
Hoi An hosts cultural exchange with Japan
The 13th “Hoi An – Japan Cultural Exchange” took place in the ancient town of Hoi An in Quang Nam Province last week, featuring local and Japanese art troupes. Spectators had the opportunity to join a cosplay of Japanese anime characters, Yasakoi dancing, Japan kendo (a Japanese martial art), Kirigami (paper cutting), souvenir-photo taking sessions with Yukatacostume, Haiku poems exhibition, bonsai art, and sky admiring by an astronomical telescope. As part of the event, a wood crafting contest of Hoi An attracted 25 local artisans to create their artworks at the An Hoi Garden of Statues. The contest aimed to encourage and honor talented and creative artisans and to promote…
80,000 Vietnamese labourers work abroad within 8 months
HA NOI (VNS) — Nearly 80,000 Vietnamese labourers went to work abroad from January to August this year, marking an increase of 8.21 per cent, over the same period last year, statistics from the Ministry of Labour, Invalids and Social Affairs’ Overseas Labour Management Department (OLMD) show. With this figure, the country met 83.98 per cent of the target for this year. It had planned to send 90,000 workers abroad this year. During just the month of August, the statistics from enterprises show that the total of labourers working abroad was 11,255, of which 3,590 were women. Taiwan still ranked as the largest market for Vietnamese labourers during the first eight…
Vietnam becomes fourth largest importer of RoK products
Vietnam has usurped Japan for the first time to become the fourth largest importer of products from the Republic of Korea (RoK), in the first seven months of this year. According to statistics from the Korea International Trade Association (KITA) and the Korea Trade-Investment Promotion Agency (KOTRA) published on August 30, the RoK’s exports to Vietnam reached 16.35 billion USD while the amount to Japan was worth 15.48 billion USD. The RoK’s shipments of wireless communication device components to Vietnam shot up by 29.9 percent from the same period last year. A RoK official said that exports to Japan plunged by 19.3 percent, spurred by Japanese yen devaluation and low…
Hanoi opens new waste treatment plant
The People’s Committee of Hanoi held a ceremony on August 27 to inaugurate and put the Phuong Dinh waste treatment plant into operation in Dan Phuong district. The factory, which will use Martin technology from Germany, is one of the pioneer facilities in Vietnam in combusting waste to produce electricity. It has a total investment capital of 270 billion VND (12.2 million USD) and a processing capacity of 300 tonnes of waste per day. The plant will help meet the demand for waste treatment in the Dan Phuong, Hoai Duc and Quoc Oai districts as well as industrial parks and craft villages in the localities, said Vu Hong Khanh, Deputy…
Hanoi, Fukuoka forge links in investment, trade, tourism
Vice Chairman of the Hanoi People’s Committee Le Hong Son has called on businesses from Japan’s Fukuoka prefecture to penetrate into the local market in order to fully tap each side’s advantages, reported Ha Noi Moi newspaper. Speaking at a conference in Fukuoka on August 26, which drew 65 Japanese and Vietnamese enterprises, Son pledged the best possible conditions for the two localities’ businesses to cooperate in investment, trade and tourism. The capital city aims to attract foreign investments towards up-to-date technologies and technology transfer in association with sustainable development, he said. Hanoi is striving to boost two-way trade with Fukuoka and rolling out strategies to lure more tourists from…
Minimum pay increase for 2016 yet to be fixed
The Vietnam Chamber of Commerce and Industry (VCCI) and the Vietnam General Confederation of Labour (VGCL) fell short of fixing the minimum wage increase for 2016 during a meeting in Hanoi on August 25. The VGCL, representing employees, proposed a 16.8 percent pay hike while the VCCI – representative of employers, recommended a mere 10 percent, according to Deputy Minister of Labour, Invalids and Social Affairs Pham Minh Huan when briefing about the outcomes of the second meeting of the Vietnam National Wage Council. If the third meeting, slated for September 3, fails to reach a consensus, the Council will decide the final solution to submit to the Prime Minister…
Japanese investor speaks out
Poor logistics and transport infrastructure and customs hassles are the major reasons for Viet Nam’s inability to attract Japanese investment, a Japanese trade expert told a conference on investment promotion and logistics in Da Nang late last week. Yoshitaka Kurihara, senior advisor to the Japan External Trade Organisation (JETRO) ‘s HCM City Office, said: “Logistics is actually a key factor in investment. The slow modernisation of logistics services in Viet Nam has been a main reason for the decrease in investment flows.” Japanese investment fell from US$58 billion in 2013 to just $23 billion last year. “Chaotic road traffic, slowness of rail traffic, shortage of warehouse space and poor condition…
Vietnam gov’t mulls legal framework for crowdfunding: report
The Vietnamese government is reportedly drawing up policies for crowdfunding in the country, where many young companies are still struggling to get sufficient funding despite an increased interest in local startups in recent years. Singapore-based financial news website DEALSTREETASIA said on Monday that the Ministry of Planning and Investment is currently taking feedback from local startups, before the policy framework is finalized. Currently, Malaysia is the only country in the Southeast Asia to set up legal framework for the activity, it said. Vu Anh, founder of crowdfunding platform Fundstart.vn, was quoted as saying that Vietnam’s startup ecosystem has a market gap as far as funding goes, which places local startups…
HCM City’s August CPI drops 0.12 percent monthly
The August consumer price index (CPI) in Ho Chi Minh City declined 0.12 percent from the previous month, contributing to an annual 0.66 percent rise in the southern economic hub’s average eight-month index. The municipal Statistics Office said on August 22 that as six out of the 11 main goods categories had their prices down, noting that transport prices saw the sharpest decrease month on month – 2.4 percent, which was driven by two petrol price cuts in August. Housing, electricity, water, fuel and construction material prices were down 0.66 percent – the same pace in the culture and entertainment category. Decreases were also seen in the price of household…
Hanoi’s population increases by 200,000 per year
VietNamNet Bridge – The Hanoi Department of Population and Family Planning has said that each year the city’s population increases by about 200,000 people, equivalent to the population of a large district. Of the new population, about 120,000 are newborn children and the rest are migrants. The department’s director, Mr. Ta Quang Huy, said the increase of population posed a difficult problem for the future social and economic development of the capital city. Hanoi’s population is the second largest in Vietnam, only behind HCM City. Notably, gender imbalance at birth and the number of families having the third child are on the rise. The number of women entering reproductive age…
Da Nang airport to have capacity improved
Da Nang International Airport, one of Vietnam’s three major airports, has asked the government for permission to upgrade its capacity to 20 million passengers a year by 2020 under a revised development blueprint. Deputy Prime Minister Hoang Trung Hai has assigned the Ministry of Transport to verify and approve the revised blueprint for the airport, which also aims to raise its cargo handling capacity to 200,000 tonnes each year. In addition, the airport will be expanded to cover about 855.57 hectares, accommodating a maximum of 41 planes. Da Nang airport caters to travel demand to and from the central Da Nang city and neighbouring areas. It also serves as a…
More investment projects land in Tien Giang province
The Mekong Delta province of Tien Giang has granted investmentcertificates to two new projects worth US$17 million in total at the provincial industrial parks since the outset of this year. The province has also allowed four existing projects to add US$30 million in investment. Tien Giang is currently home to 73 projects worth US$1.37 billion, 47 of which are foreign direct investment ones valued at US$182.7 million.The results have been spurred by improvements in policies as well as administrative procedures, contributing to promoting an industrialized economic structure.According to Nguyen Thanh Liem, Deputy Head of the local Industrial Zones Authority, enterprises operating in the province’s four industrial zones My Tho, Tan Huong, Long Giang and Soai Rap Petroleum…