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Bao Viet to auction 60mil shares16:37' 16/05/2007 (GMT+7) VietNamNet Bridge – Bao Viet, the biggest insurer in Vietnam, yesterday announced it would auction 60mil shares on May 31. The name of the foreign consultant and strategic shareholders remain secret.

According to Bao Viet, the State will hold 444,300,000 shares out of the 680mil shares worth VND6,800bil ($425mil) in nominal value, while 4,760,000 shares will be sold to Bao Viet employees. Domestic strategic investors will be sold 49,100,000 shares, while foreign strategic investors will be allowed to buy 122,400,000 shares.

As such, 59,440,000 shares will be for public auction at the starting price of VND30,500/share, including 13,600,000 shares for foreign investors. Legal entities can register to buy 3,400,000 shares at maximum each, while every individual investor can buy 340,000 shares at maximum.

Investors will be able to register to participate in the auction, pay deposits from May 11 to May 24. The auction to be held on May 31 will gather 13 securities companies, the biggest number of securities companies so far.

According to Le Quang Binh, Chairman of Bao Viet, after the equitisation, Bao Viet will have their shares listed at the Hanoi Securities Trading Centre. The insurer plans to list shares on a domestic or foreign stock market in two years.

“The detailed plan on listing shares will be decided later during the shareholders’ meeting,” Mr Binh said.

Bao Viet has declined to reveal the names of the strategic investors participating in the auction.

“There are many interested institutions, including big groups in the fields of insurance and banking. Now Bao Viet is still receiving registrations for the auction to become strategic investors. However, everything will depend on the May 31 auction,” Mr Binh said. In principle, strategic shareholders cannot buy shares at preferential prices.

When asked why Bao Viet had not chosen an international consultant for the equitisation process, Truong Moc Lam, former head of the Equitisation Board, former chairman of Bao Viet, said that Bao Viet had earlier invited international consultants to bid. However, the one-year negotiation between Bao Viet and the selected consultant failed.

He said that Bao Viet had decided to choose a domestic experienced consultant for its equitisation after getting permission from the Ministry of Finance. VACO (Vietnam Auditing Company) has been the only name mentioned during the equitisation process.

“Besides the said company, we have signed a contract on financial consultancy with a leading group in the world. However, as per the provisions of the contract, we cannot reveal the name of the consultant if it does not agree,” Mr Lam said.

(Source: VNE)

$30bil steel project in Thanh Hoa?16:34' 16/05/2007 (GMT+7) VietNamNet Bridge – The US-based Eminence Group has announced it will make investment in a big project in Nghi Son Economic Zone in the central province of Thanh Hoa, which has the surprisingly high estimated capital of $30bil.

Thanh Hoa province's mapThe project will consist of a big steel complex and supporting works including a deep water port, thermo power plant, shipyard, cement plant, and urban area. It will also have kindergartens and a university, research institute, general hospital, five-star hotel and 400 steel downstream factories.

Presenting the project on May 15 in Hanoi, Yang Wu Sung, Chairman of Eminence, said that Vietnam had become very attractive in the eyes of investors around the world. He said that Eminence was ready for the project in Thanh Hoa, capitalised at $30bil.

The project on the steel mill in the first period is expected to have the investment capital of $10bil (July 2007-2013), and will have the capacity of 12mil tonnes a year in the initial time of operation, and then 30mil tonnes a year.

The capital for the giant project will be sourced from financial institutions, commercial banks in the world, from Eminence group itself and from the land use right value provided by Thanh Hoa provincial authorities.

The steel mill and other factories will use high technologies from Europe and Japan. Iron ore and coke coal will be imported. Eminence now has 12 iron mines with the total reserve of 1.22bil tonnes in Indonesia, China, Australia, Brazil, coke coal mines with the reserve of 200mil tonnes in China and some other countries. Vietnam-sourced coal will be used to run the thermo power plant.

The steel mill will churn out high-quality products, including ingot steel, spe******ed steel, bar steel used in industries, hot and cold rolled steel, galvanised steel. Only a small part of the products will be consumed domestically, while most of them will be for export. The mill will not make rolled steel to compete with domestic steel mills.

Eminence plans to build in Nghi Son EZ a modern steel mill which can put out competitive products, meet Euro 3 standards on exhaust fumes.

Representatives from big institutions in the world attended yesterday’s presentation, including ADB, Deutsche Bank in London, TFG international consultant, Hyder Consulting Ltd, Dragon Capital investment fund management company, Davis Landon Seah financial group.

Mr Philipe from TFG, the official consultant to the project, said that there were four things Eminence requires from TFG 1. nominating and selecting consultants to the project 2. uniting financial institutions to arrange capital for the project 3. raising funds among international banking community and 4. negotiating with equipment providers.

He said that TFG had completed the negotiation with ADB and IFC, the arm of the World Bank. The two organisations prove to be very interested in the project and want updated information regularly.

He said that many big commercial banks in the world have expressed their interest in the project, but none of them had made an official statement about funding the project.

Hyder Consulting Ltd will take responsibility for the technical issues of the project, while David Landon Seah will be in charge of financial consultancy. The two companies will get set to build the feasibility study for the project, which is expected to be completed at the end of 2007, before the project is officially kicked off in early 2008.

Eminence said that the demand for steel is very high in the world. Now in Asia, Eminence has 30 big clients, which consume 4mil tonnes of different types every year. Meanwhile, the consumption level reaches 24mil tones, including 17mil flat steel and 7mil round steel products.

The still mill to be built in Thanh Hoa is expected to churn out 3mil tones of hot rolled steel a year by 2009, of which, 1mil tones will serve domestic demand, 1.2mil for export, and the other 0.8mil tones for making cold rolled steel.

According to Eminence, the iron ore it explores is $50/tonne cheaper than the market price, while the coke coal it produces is $40/tonne cheaper.

However, the information provided by Eminence at the presentation seemed to not satisfy the audience. Eminence did not provide enough information about itself (fields of operation, experience, legal capital, names of projects they have run). The Chairman of Eminence has refused an interview proposed by VietNamNet, reasoning that he was busy with other jobs.

Nguyen Van Loi, Chairman of the Thanh Hoa People’s Committee, said that Eminence had asked Thanh Hoa authorities to make capital contribution equal to 10% of the total project value. The capital will include the land use right, while Eminence will borrow money for Thanh Hoa authorities from the world’s financial institutions.

However, Mr Loi stressed that the Government would decide whether Thanh Hoa authorities will make capital contribution.

The project has been submitted to the Government and relevant ministries for consideration.

The Nghi Son EZ, which has the surface area of 18,000 ha, is considered the best place for making investment in the north thanks to deep water port and favourable transport.

Tran Thuy

City tourism assoc. wants to admit foreign members16:29' 16/05/2007 (GMT+7)

VietNamNet Bridge – The HCMC Tourism Association will petition the Government to allow foreign companies and foreigners working in foreign-invested companies to join the association for the development of tourism industry, a source said.
At a review meeting here yesterday, association chairman Nguyen Huu Tho said that the association would complete a proposal to this effect to seek approval from the government.
"We want local and foreign companies to work together for the exchange of experiences and in organizing joint promotion programs," he told the Daily.
He said foreign companies had good experiences on tourism management and market expansion, and enjoy wide networks around the world, so they could be of great help to the city's hospitality industry to improve knowledge and service standards. Many foreign companies and individuals have shown keen interest in becoming members of the association, he added.
"Foreign companies have shown their interest to join our association. We want to admit these companies which will create win-win solutions," he said.
Foreign companies and foreigners working for foreign-invested companies are not allowed to join the tourism association as members, but they still can join trade clubs of the association such as the HCMC Chefs Club and the Bartenders Club.
Tho and his association not only want to admit foreign members but also want other market players in the city join the association to make it stronger for competition.
The association now has a membership of 81, most of them hotels, tour operators and other tourist service providers. However, the association targets to have an additional 150 companies as new corporate members plus and 500 new individual members next year.
"The city has 400 travel companies and 800 hotels, and many related-service companies. We want to promote the association's image to these companies to lure them into the association," he said.
Last week, some foreign-invested travel firms in HCMC met for discussions on business issues in the country. They wanted to establish a working group or an association to jointly settle certain outstanding problems of the tourism industry.
In the meeting on Monday, Tho, who had served as chairman of the association in the 2004-06 term, was re-elected as chairman of the association in the 2007-2008 period.
Ben Thanh Tourist Company's director Than Hai Thanh and Peace Tour's director Nguyen Thi Hoa Le were named as vice chairpersons, while Ly Quy Trung, owner of the Pho 24 chain, was also elected as new vice chairman of HTA.
(Source: SGT)

Vietnam – one of top seven most lucrative retail markets: RNCOS16:18' 16/05/2007 (GMT+7) VietNamNet Bridge – According to RNCOS, a global market research company, Vietnam is one of the seven most lucrative retail markets in the world and local and foreign distributors now have to queue to scramble for market shares in Vietnam.

In a report titled “Analysing Vietnam’s retail industry”, which was recently announced, RNCOS says that infrastructure for the retail industry of Vietnam is experiencing a period of fast change from 2007 to 2011.

According to this firm, during this period, small markets, small trade groups and systems of supermarkets will rise everywhere.

Most of the world’s leading retailers have come to Vietnam, including Metro Cash & Carry of Germany, which has eight supermarkets in the country, earns around $500 million/year and boasts a growth rate of 45%.

In eight years in Vietnam, France’s Bourbon has established six supermarkets named Big C in Hanoi, HCM City and Hai Phong.

Another famous retailer, Parkson, has recorded a growth rate of 35% after two years present in Vietnam and it has plans to open an additional ten trade centres.

RNCOS predicts that many more foreign big retailers will come to Vietnam in the coming years and Vietnam’s retail market is growing and will grow more quickly than any economy in the world, except for China and India.

RNCOS also confirms that the retail market in Vietnam will draw huge investment from abroad and more modern hypermarkets and shopping malls will be built in the country.

(Source: Tien phong)

Taxman says to launch one-door service in July16:16' 16/05/2007 (GMT+7)

VietNamNet Bridge – Vietnam's tax authority said on Monday it would adopt a new system in which taxpayers go through only one door instead of many as at present, a move which is intended to make life easier for the corporate sector.
The tax departments of the country's 64 cities and provinces are well prepared for the change effective from July 1, Nguyen Van Ninh, head of the General Department of Taxation, told a tax-business meeting in Hanoi.
Each of the city and provincial tax departments has set up an information dissemination and support office responsible for helping with the new one-door service, he said.
"All tax payment procedures will go through this office. "You will not have to go to all the functional offices of the tax department. All what you will do is to submit the dossiers and pay taxes on time," he said.
"We will also commit to a fixed period of time required for completing the procedures."
Le Hong Hai, deputy head of the General Department of Taxation, said the one-door mechanism had been test applied nationwide over the past three years with three different patterns.
One of these patterns is the information dissemination and support office, which has proven to be most effective, he said.
These offices are manned with skilled personnel to answer any queries by taxpayers about tax regulations, tax declaration and payment procedures, receipts, obligations and codes, deal with complaints, and provide guidance.
(Source: SGT)

Ba Ria-Vung Tau wants more IPs to house new investors15:25' 16/05/2007 (GMT+7)

VietNamNet Bridge – The southern coastal province of Ba Ria-Vung Tau has plans to set up six new industrial parks (IPs) as well as to expand Phu My II IP to accommodate new tenants now that existing industrial estates there have been nearly full.
The provincial Industrial Zones Authority (BIZA) in the zoning plan for IPs until 2015 and beyond to 2020 suggested setting up more parks, which has been approved in principle by provincial authorities.
The six new IPs include Phu My III, Chau Duc, Long Son, Dat Do, Kim Dinh and Cai Mep Ha.
Since Dong Xuyen Industrial Park was born in 1996 as its first industrial park, the province has set up nine IPs with a total area of nearly 35,390 hectares. Several of these parks are now full including Dong Xuyen and Phu My I, while other IPs have 80% occupancy.
Operational industrial parks have so far attracted 130 projects with total investment capital of US$6.67bil including fresh and increased capitals. Among them, 62 are foreign invested projects with pledged capital of US$4.21bil and the rest are local ones capitalized at US$2.45bil.
In 2006, IPs in the province attracted 12 fresh foreign investment projects worth nearly US$1.36bil, making the province the top destination for investment last year with US$2.26bil in committed investment. Many investors prefer Ba Ria-Vung Tau as an ideal place for heavy-industry projects thanks to its location and the availability of many ports.
In the first four months of this year Vietnam attracted about US$3bil in fresh FDI inflow, of which about US$720mil was committed into Ba Ria-Vung Tau Province, accounting for 24% of the total figure.
With the positive results as well as with some projects waiting for approval from authorities, the province hopes that it will reach about US$2.5bil on FDI inflow this year.
Therefore, the establishment of more IPs is becoming more urgent if the province is to be able to receive more investors, according to experts.
(Source: SGT)

BUSINESS IN BRIEF 16/509:00' 16/05/2007 (GMT+7) VinaCapital buys 70 percent stake of Omni Saigon Hotel</SPAN>

The VinaCapital Group announced on May 15 that it has acquired a 70-percent stake of a five-star hotel in Ho Chi Minh City.

“VinaCapital acquired the stake in the Omni Saigon Hotel for 21 million USD through its subsidiary, VinaCapital Hospitality," Pham Gia Tuan, VinaCapital's financial director said, adding “this is the first hotel in the city to have been bought by the group.”

The Omni Saigon Hotel began its operations in 1992. Located on Nguyen Van Troi Str, which links the Tan Son Nhat International Airport and the city centre, the hotel, with 248 rooms and apartments, has consistently enjoyed high occupancy rates.

Stephen O’Grady, Managing Director of VinaCapital Hospitality, said his group had previously invested in a series of hotels and resorts, including Sofitel Metropole, Hilton Hanoi Opera, Novotel Hanoi, a golf court-cum-resort complex in the town of Da Lat, the VinaCapital Hoi An Royal Bay in the central coastal province of Quang Nam and other projects, which are still under construction in the central coastal city of Khanh Hoa.</SPAN>

Vietnam welcomes Australian investors</SPAN>

Vietnam attaches great importance to creating propitious conditions for Australian businesses to invest in Vietnam, affirmed Vice President Truong My Hoa.

The Vice President applauded the cooperation between Victoria State and ministries, agencies and localities of Vietnam while receiving in Ha Noi on May 15 a delegation from Victoria State, Australia, headed by governor David de Kretser, who is on a week-long visit to Vietnam, starting on May 14.

She spoke highly of the Australian government’s Official Development Assistance (ODA) for Vietnam, saying that the Australian-funded projects have yielded positive results, contributing to the socio-economic development of the country.

Vice President Hoa spoke highly of prospects for cooperation between the two countries, particularly in economy, trade, investment, education and training, and tourism.

She said the two countries needed to foster their cooperation to tap their potentials for their common interest and for peace, stability and cooperation in the region.

For his part, the governor highly valued the friendship and cooperation between Australia and Vietnam, which he said has seen considerable development in various fields.

He expressed his wish to enhance the cooperation between Australia’s Victoria State and ministries, agencies and localities of Vietnam.

RoK certifies hundreds of Vietnamese fish exporters</SPAN>

An additional nine Vietnamese seafood exporters have been licensed to ship their products to the Republic of Korea, bringing the total number to 323.

The National Fisheries Quality Assurance and Veterinary Directorate under the Ministry of Fisheries confirmed the news and added that the RoK is a huge potential market.

Statistics from the ministry showed that exports of fishery products to the Asian peninsular country have so far this year surged by 27 percent as the industry has sold over 80 million USD in products to the country.</SPAN>

Oil giant refurbishes liquids processing platform</SPAN>

The Vietnam-Russia Oil and Gas Joint Venture (Vietsovpetro) on May 15 completed refurbishing a central liquids processing platform that is used to separate gases after the drilling process.

The 400-tonne facility, built by a Vietsovpetro affiliate, the Construction and Installation Company, has been ordered by the Vietnam-Japan Petroleum Co. Ltd (JVPC), and will be transported to the Rang Dong offshore oilfield in the southern coastal province of Ba Ria-Vung Tau.

JVPC and Vietsovpetro initially began to cooperate in 1997 and to date seven platforms have been manufactured by the two companies.

The Construction and Installation Company has so far manufactured and successfully installed dozens of high-end rigs, including the N1, S1 and E1 oil drilling platforms in the Rang Dong oilfield, the Sutuden platform in the Su Tu Den (Black Lion) oilfield, and the Ruby-A, Ruby-B platforms for Malaysia-based Petronas.</SPAN>

Country's securities companies cleaning up</SPAN>

Almost 50 securities companies currently operating in Vietnam are recording sky-high profits, according to their released balance sheets.

The Saigon Securities Incorporation (SSI) topped the list, earning a first-quarter profit of 465 billion VND, followed by the Bao Viet Securities Company with 123 billion VND.

According to experts, securities companies have proved to be extremely effective even as the markets have gone through a period of slight readjustment.

The trend to set up securities companies in the country remains high as more than 30 submitted applications for licenses are currently awaiting State Securities Commission approval.</SPAN>

Samsung looks to offshore production into Vietnam

Samsung Electronics, a mobile phone giant in the Republic of Korea (RoK), is poised to move the bulk of its cell phone production offshore and into Vietnam , the Chosun Ilbo newspaper reported.

The move follows a shift in strategy for the company as it looks to shed its reliance on the Gumi plant in northern Gyeongsang province, to a global sourcing model. Falling inline with the new strategy, Samsung planned to start construction of a larger facility in Vietnam by the fourth quarter of this year.

Last year, the Gumi Plant produced 70 million phones out of Samsung's total output of 130 million, while the Vietnam facility is expected to produce 100 million handsets per year.

Market analysts say the move mirrors the sentiments of many of the country's largest industrial groups regarding the high costs of production in the RoK.

Vietnam is said to be a rapidly emerging manufacturing market with greater numbers of component companies expected to follow in the footsteps of Samsung Electronics and build plants in the South East Asian country, the paper concluded.</SPAN>

Stock indexes record slight dips after consecutive gains</SPAN>

The VN-Index dropped 11.35 points to 1,054.69 points after its trading session on May 15, putting an end to days of successive gains.
By closing, 57 listed shares recorded increases, 20 were unchanged and 32 stocks were in decline.
Also at the end of the May 15 session, the HaSTC-Index in Ha Noi Securities Trading Centre fell by 0.99 points to 337.1 points with more than 1.7 million shares, worth over 244.20 billion VND, being traded.
According to experts, the VN-Index will hover around the 1,000 point benchmark until the end of the third quarter of this year when growth is forecast to skyrocket.

</SPAN>
Vietnamese bankers make Hong Kong investment mission</SPAN>

Officials from the Bank for Investment and Development of Vietnam (BIDV) made an investment sourcing tour of Hong Kong in a bid to introduce current business opportunities available in the booming South East Asian economy.

BIDV linked up with the Chao Zhou People's General Union, the Chao Zhou Businessmen Association and the Xie Feng Group of Hong Kong to organise a seminar on May 14 that drew over 150 representatives from local businesses.

Vietnam is looking for investment in the fields of finance and banking, energy, the exploration and exploitation of natural resources, infrastructure construction and property.

By the end of 2006 Hong Kong investors had pumped more than 5.2 billion USD into Vietnam, making the special administrative region the fifth largest investor in the country.

Two-way trade between Hong Kong and Vietnam reached the 2 billion USD mark in 2006.</SPAN>

Dong A plastic expands manufacturing base</SPAN>

The Dong A Plastic Group on May 14 expanded its manufacturing base within the country by inaugurating two new home decor product-manufacturing plants.

The plant in Ha Noi’s Ngoc Hoi industrial park, covering an area of 10,139 sq.m, was built at a cost of 20 billion VND (1.25 million USD), while the plant in Ha Nam’s Chau Son industrial park was built on an area of 80,000 sq.m at a cost of 80 billion VND (5 million USD).

The two plants are expected to generate close to 1,000 employment opportunities as the company looks to manufacture products that meet European standards.

The group plans to begin construction of another plant in the Tan Tao industrial park in Ho Chi Minh City to the tune of 20 billion VND.</SPAN>

HCM City Securities Trading Centre undergoes name change</SPAN>

The Prime Minister has given the green light to change the name of the Ho Chi Minh City Securities Trading Centre to the Ho Chi Minh Stock Exchange (HOSE).

With an initial chartered capital of 1 trillion VND (62.5 million USD), the HOSE is entitled to organise transactions for eligible listed companies.</SPAN>

With profits up, beverage maker thirsts for more</SPAN>

The Tribeco beverage company has set a bulky 459 billion VND (28.7 million USD) revenue target in a campaign to yield over 14 billion VND in net profits this year.

The targets are up 52 percent and 62 percent, respectively, from the figures achieved in 2006.

Tribeco chairman Tran Kim Thanh said that strategic partners would play a large part in achieving the goals.

The confectioner Kinh Do Corp, which Thanh also chairs, holds around 35 percent of Tribeco. With Kinh Do's support, Tribeco is constructing two new factories, one in the north and one in the south; in Hung Yen province and Binh Duong province, respectively.

The factory in Binh Duong will open in August and the Hung Yen-based factory will begin production in December. As the company's first northern production base, the Hung Yen plant will cut Tribeco's transport costs dramatically.

Additionally, Tribeco entered a partnership late last month with the Taiwanese company Uni-President, which spe******es in food processing, beverages and retail chains.

Uni-President will help Tribeco produce new products and send its spe******ts to assist Tribeco in finance, technology, and product and market development.

Vietnam - Russia bilateral trade hits $240 million in Q1</SPAN>

Trade between Vietnam and Russia reached 240 million USD in the first three months of the year, according to preliminary data from the Ministry of Finance's Europe Department.

Vietnamese exports totalled 100 million USD, while imports amounted to 140 million USD.

The department said these figures are good given recent measures by Russian officials to tighten food hygiene standards and monitoring of Vietnamese goods, with the local policy to restrict rice exports due to a poor winter-spring crop.

In the first two months of the year, trade between the countries hit 140 million USD, up 8.5 percent over the same period in 2006.

Russia has also become the largest single importer of Vietnamese pineapples worth over 400,000 USD last month, representing 29.4 percent of the country's total pineapple exports.

In January and February, Vietnam imported 40.2 million USD in petroleum products from Russia, while steel, fertiliser and car imports fells 40, 52, and 80 percent, respectively.

In 2006, Vietnamese exports to Russia grew by 60 percent to 400 million USD.</SPAN>

Gia Lai province buys Bourbon stakes in sugarcane joint venture</SPAN>

The Central Highlands province of Gia Lai has decided to buy the 51 percent stake of France’s Bourbon Group in the Bourbon-Gia Lai Sugarcane Joint Venture (J.V) at a price of 4 million USD.

The province, which currently owns 49 percent of the J.V, plans to transfer 20 percent of the buy-back stake to the Sai Gon Thuong Tin Commercial Bank (Sacombank), turning it into the J.V’s strategic investor. The remainder will be sold to the public.</SPAN>

Vietnam, Laos cooperate in iron ore exploration</SPAN>

Vietnam and Laos will work together to explore iron ore in Laos' Xiangkhoang province.

An agreement to this effect was signed between Thongmy Phommisay, Deputy Chairman of Lao Planning and Investment Committee and Doan Van Kien, General Director of the Vietnam Coal and Mineral Industries Group (Vinacomin), in Vientiane, on May 14.

Chairman of Lao Planning and Investment Committee Soulivong Daravong and Vietnamese Minister of Planning and Investment Vo Hong Phuc witnessed the signing.

Under the agreement, Vinacomin will explore iron ore in an area of 22 sq.k in Xiangkhoang province's Khun district in 48 months.</SPAN>

Over $82.4 million for southern offshore oil well</SPAN>

Permanent Deputy Prime Minister Nguyen Sinh Hung has approved an investment capital of 82.46 million USD in the Phuong Dong oil well, lot 15-2, off southern Ba Ria-Vung Tau province.

Under the decision signed on May 14, the investment will be used to build an offshore oil-rig and a pipeline connecting the Phuong Dong oil rig and the Rang Dong oil rig.

The construction is expected to complete by the end of the third quarter of 2008.

The Phuong Dong oil well has an estimated reserve of 36.2 million barrels of oil, 5.3 million barrels of condensate and 3.16 billion cu.m. of gas.</SPAN>

(Source: VNA)

Harley Davidson to growl down Vietnamese roads, not without taxes
Vietnamese ministries are completing documents guiding the import of high-cylinder motorcycles (over 175cc) following the country’s WTO commitments to do so as of May 31.

Once the decree is issued, Harleys and choppers of all sorts might be seen cruising Saigon boulevards, delta paddies and mountainous highways atop northern peaks.
Deputy finance minister Truong Chi Trung said the decree is set to be issued next week by the ministries of trade, finance, public security, and transportation.
The forthcoming document will specify details on the import of high-cylinder motorcycles such as customs procedures, required conditions for driving license, types of vehicles to be imported, tax rates and safety and exhaust fume indexes among others.
Under Vietnam’s WTO commitments, high-cylinder motorcycles will be eligible to enter the country at the end of this month with no limitations on quantity.
Previously, the import and circulation of high-cylinder motorcycles of more than 175cc has been banned in the country. Until now, these vehicles have only been allowed in the country with special permits for designated purposes.
The Ministry of Finance said that a temporary tax rate of 90 percent may be imposed on high-cylinder motorcycles - the same as on motorbikes. Besides the import tax, a 10 percent value added tax (VAT) will also be imposed.
A $5,000 Harley Davidson motorcycle (the cheapest they come) will cost $10,000 in Vietnam. Motorbike traders said that importers would only import motorcycles in small quantities to begin with.
With the forthcoming removal of the ban, several big motorcycle manufacturers, including the US-based Harley Davidson, expressed their plan to sell motorcycles on Vietnamese market.
Both local importers and high-speed addicts are very excited about the presence of such high-cylinder motorcycles.
According to the Ministry of Trade, strict requirements will be imposed to ensure safe driving. For example, only those aged from 25 to 55 will be allowed to drive high-cylinder motorcycles.
The buyers and users of motorcycles are required to have a license granted by competent authorities and vehicles distributors will only be allowed to sell motorcycles to those who have the license.
Source: VnExpress – Compiled by Dong Ha

Securities firm buys first brokerage insurance in Vietnam
The Dai Viet Securities Company (DVSC) inked Tuesday a deal with the Ho Chi Minh City Bao Minh Insurance Company to pioneer the first ever indemnity insurance for a brokerage in Vietnam.

The insurance contract is responsible for negligence including broker malpractice and misrepresentation, aiming to protect the benefits of both the broker and investors.
Under the one-year deal, the maximum compensation rate for investors suffering losses due to the broker could reach US$1 million.
DVSC, with a chartered capital of VND250 billion ($16 million), offers securities services like brokerage, securities custody, consulting and underwriting.
Vietnam has over fifty registered securities firms but only four of them – Saigon Securities Inc (SSI), Bao Viet Securities Company (BVS), Asia Commercial Bank Securities Company (ACBS) and the Bank for Investment and Development of Vietnam Securities Company - account for 71 percent of all trade.
The State Securities Commission in the first quarter received more than 30 license applications to set up securities firms.
The marker regulator is considering temporarily icing over the issue of new permission due to the poor service quality at existing brokerages.
In the first three months of the year, brokerages reported high earnings on the back of skyrocketing bourses.
Of those, SSI, Vietnam's largest broker, topped the list with VND465 billion in profits while runner up BVS stood at VND123 billion.
Bourse officials have predicted that the brokers club would grow even larger in the near future.
Compiled by Dong Ha

Gov’t approves over US$80 mil to drill for oil
The Vietnamese government has approved an US$82.5 million plan to exploit the Phuong Dong oil field in waters off the coast of southern Vietnam.

Under a production sharing contract, the state’s oil and gas giant PetroVietnam will hold a 17.5 percent interest in the Phuong Dong drilling, 150 km southeast of Vung Tau City. Japan-Vietnam Petroleum Co. Ltd. (JVPC) will hold a 46.5 percent interest in the project while ConocoPhillips will take on 36 percent.
Under the decision approved Monday by Deputy Prime Minister Nguyen Sinh Hung, most of the capital will be spent on a drilling platform and a pipeline system to transport oil and gas from the field to a central platform at the Rang Dong oil field.
Commercial production at Phuong Dong is expected to begin in the end of the third quarter next year.
According to JVPC appraisals, Phuong Dong is home to an estimated 36.2 million barrels of oil and 3.16 billion cu.m of natural gas.
JVPC is a joint venture of Mitsubishi (51 percent) and the Japan National Oil Corporation (49 percent).
In related development, PetroVietnam yesterday launched a new arm, PetroVietnam Exploration and Production Corp (PVEP).
The VND10 trillion (US$625 million) PVEP is a merger of PetroVietnam’s Oil & Gas Exploration and Production Company and the PetroVietnam Oil & Gas Investment and Development Company.
Between January and April this year, crude oil – Vietnam’s top export item – earned $2.36 billion, the country’s highest export turnover. Though the figure was a slight year-on-year drop in both volume and value, analysts attributed the dip to declining global prices.
Reported by M.Q. – Compiled by Dong Ha