Thread: Latest news on the Dong!

Foreign firms get transitional rights in importing, distribution
19:29' 28/02/2007 (GMT+7)

VietNamNet Bridge – Many foreign enterprises are keen to invest in import/export trade or in wholesale and retail in Vietnam.

The nation faces an obligation to open up some of these areas to foreign participation pursuant to commitments it has made to the WTO and in other international agreements.

To that end, the Government recently issued Decree No 23/2007 implementing the Commercial Law to establish a legal framework for foreign-invested enterprises wishing to engage in trade or distribution in Vietnam.

As part of its WTO accession package, Vietnam committed to grant trading rights (the right to import and export goods) to all foreign individuals and organizations no later than January 1, 2007, with the exception of certain products reserved to State trading, e.g., tobacco products, crude oil and petroleum, books, and pharmaceuticals, for some of which the right of foreign investors to import/export will be phased in through January 1, 2009. The right to export rice will not be granted until January 1, 2011.

Vietnam has also committed to allow steadily increasing foreign participation in distribution according to a particular timetable.

From the date of Vietnam’s accession to the WTO, foreign investors from WTO member states have been allowed to establish enterprises providing distribution services in the form of a joint venture with a domestic investor with the foreign investor holding no more than 49% equity.

By January 1 of next year, there will be no limit on the foreign investor’s equity in such a joint venture, and by January 1, 2009, foreign investors may establish a 100% foreign-owned enterprise to engage in distribution.

Foreign invested enterprises will be permitted to distribute all legally imported and domestically produced goods, apart from certain products which are reserved to State distribution, e.g., tobacco, books, precious metals and stones, pharmaceuticals, refined and crude oil, rice, and cane and beet sugar.

Certain other products, e.g., cars, motorbikes and tractors, may only be distributed from January 2009, while cement and clinker, tyres, paper, iron and steel, audiovisual devices, wines and spirits and fertilisers may only be distributed from January 2010.

Licensing requirements

Under Decree 23, foreign-invested enterprises involved in trading and/or distribution activities require a separate business license in addition to the investment license.

For existing enterprises, Article 5.1 provides that provincial People’s Committees can issue business licenses after receiving written certification from the Ministry of Trade that the application meets the conditions agreed to by Vietnam in its international commitments.

For newly-established foreign enterprises, the investor must submit an application dossier for investment with the "State administrative body for investment."

This body must obtain the written approval of the Ministry of Trade before issuing an "investment certificate" for the enterprise to engage in import/export or distribution.

It remains unclear, however, whether these new enterprises would be granted both an investment certificate and a business license, or an investment certificate alone.

For foreign enterprises that only want to engage in import/export of goods, without engaging in domestic distribution, the "State administrative body for investment" may issue the business licence by reference to Vietnam’s commitments in international agreements without written approval from the Ministry of Trade.

This is a welcome provision that should facilitate the growth of foreign involvement in import/export trade.

Decree 23 does not resolve whether a foreign enterprise involved in import/export or distribution must also amend its investment licence to include the new line of business.

According to Article 2, Decree 23 applies only to "enterprises with foreign-owned capital conducting business in the activities of purchase and sale of goods and activities directly relating to the purchase and sale of goods in Vietnam."

However, under WTO commitments, Vietnam has pledged to allow foreign organisations and individuals without any investment or business registration in Vietnam to apply for trading rights.

Investors eagerly await the issuance of legal documents codifying the trading rights of individuals and firms without a physical presence in Vietnam.

Keeping out the 7-Elevens

Under its WTO commitments, Vietnam is allowed to impose an economic needs test on the establishment of subsequent retail outlets after the first one, a measure for controlling the proliferation of franchise or chain stores.

Consistent with this, Decree 23 requires foreign enterprises to apply for a separate licence for each retail outlets, subject to the approval of the Ministry of Trade and the local People’s Committee.

However, the decree does not specify any criteria for applying the economic needs test. Investors have no idea how the test will be applied in practice, giving authorities essentially unlimited discretion to grant or refuse licences.

by lawyers of VILAF - Hong Duc

(Source: Viet Nam News)

Originally Posted by abbey56

Hi,

Do we have any idea how many Rolclub members have invested in the Dong.

Picked up my first 1M yesterday from my credit union who ordered it thru Bank of America - cost 76.70 (0000767) plus a 7.50 order charge. Ordered one day and it came in the next.

Does anyone know if ANY bank in U.S. sells dongs?

I asked Chase - they do not.

Hi,

Do we have any idea how many Rolclub members have invested in the Dong.

Originally Posted by abbey56

Hi,

Do we have any idea how many Rolclub members have invested in the Dong.

Looking at the numbers of ppl thanking for posts in here and contribute, maybe 80-100?

FDI tops 1.9 billion USD in two months
11:32' 02/03/2007 (GMT+7)

Viet Nam has attracted more than 1.9 billion USD in Foreign Direct Investment (FDI) in the first two months of this year, a year-on-year increase of 45 percent, according to the Foreign Investment Department under the Ministry of Planning and Investment.
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February alone saw 96 projects licensed with a combined registered capital of 1.2 billion USD, marking a year-on-year rise of 11 percent and 27 percent, respectively. Meanwhile, 38 operational projects were permitted to inject 360 million USD to their investment capital.

Thailand emerged as the biggest investor in Viet Nam in the two-month period with 33.8 percent of the total money flow, including a 220 million USD paper plant project in Binh Duong invested by the Siam Cement Group.

The past two months have also witnessed an increase in the number of foreign investors seeking opportunities in Viet Nam, including the Foxcora group from Taiwan with a plan to build a five billion USD "city" specialising in hi-end electronic products in the northern provinces of Bac Ninh and Bac Giang. One billion USD will be injected into the first phase of the project, scheduled for 2007.

Meanwhile, the Gamuda group of Malaysia plans to pour one billion USD in building hotels, conference centres, and luxury buildings. The Rivier group from Japan wants to build a 500 million USD five-star hotel in Ha Noi, and the Compell group of Taiwan projects a 500 million USD electronics production plant.

Investors from the Republic of Korea (RoK) also proposed to invest 500 million USD in building a racecourse.

(Source: VNA)

New World Fashion group pours investment into Viet Nam
09:31' 02/03/2007 (GMT+7)

The New World Fashion group from Great Britain has invested 460,000 USD in 21 percent ofthe Tien Tien Garment Company's stake, a leading garment maker in the southern province of Tien Giang.
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Financial Director Robert Nicholson said the group has also set up two companies in the My Tho industrial zone in Tien Giang, the Nam of London and Exell, employing over 1,500 workers.

The Nam of London company recorded an output value of 8.79 million USD in 2006, doubling the previous year's figure.

New World Fashion has invested in a total of five production entities in Viet Nam, providing jobs for over 5,000 locals.

(Source: VNA)

Originally Posted by Pegasus

Picked up my first 1M yesterday from my credit union who ordered it thru Bank of America - cost 76.70 (0000767) plus a 7.50 order charge. Ordered one day and it came in the next.

I looked at dinartrade today and they were offering 1M for 105.00. Why would there be such a difference?
Leann

Originally Posted by bambiebdgrl

I looked at dinartrade today and they were offering 1M for 105.00. Why would there be such a difference?
Leann

they are in biz to make a profit. also they only charge $100 for rc members. just bought my 1st 10 mil from them.

Originally Posted by lglwzrd

they are in biz to make a profit. also they only charge $100 for rc members. just bought my 1st 10 mil from them.

Thank you- I just started to look into the Dong (still have a hard time not laughing when I use that word) and where would be a good place to to start?
(information )
Leann