Thread: Latest news on the Dong!

Earlier, my Interior Designer cum contractor, a Viet himself, was on a point I had hoped he may assist but gone are the days he had decidedly stayed away from any further development issues restructuring his homeland. He is away just too long and not only could he not provide much DONGs to consider the amount significant, he did suggest being "over there" in closer proximity to gain a better purchasing deal...I fully agree on that!!!

I now wonder how good a buy I can gain once I am in thailand soon... for I also am aware that local vendors acting as money exchangers always can wheeler-deal and strike a great buy...

I am curious and looking forward to venture these on the local scene when I am there in November.


YB. - to the DONGs...!

Amcham extends full support for Vietnam's WTO accession
20:06' 20/10/2006 (GMT+7)
VietNamNet Bridge – Viet Nam News spoke with the chairman of the HCM City chapter of the American Chamber of Commerce (Amcham), Walter Blocker, about Vietnam's prospects of World Trade Organisation (WTO) accession by the end of the year.

Could you comment about the possibility of Vietnam's accession to the WTO later this year?

According to all the reports we have seen, Vietnam will become a member of the WTO in December. Last week, on October 13, negotiations in Geneva concluded successfully on Vietnam's WTO accession.

Next, the WTO Working Group on Vietnam's accession will circulate a draft report for formal approval at its meeting on October 25 or 26.

After that, the WTO General Council will meet on November 7 to approve the report. Then, in December, Vietnam will become a WTO member 30 days after it has ratified the package and informed the WTO that it has done so.

AmCham warmly welcomes this achievement. We have strongly supported Vietnam's accession to the WTO at the earliest possible date for several years and submitted a number of recommendations to the Vietnamese and US governments to accelerate the process.

What are the 'pros' and 'cons' as it relates to the American business community?

On the "pro", or opportunities, side of the balance sheet, there will certainly be even more opportunities for US importers and Vietnamese exporters in the US market.

In 2005, US imports from Vietnam amounted to US$6.6bil, of which $2.9bil was apparel imports.

And Vietnam ranked sixth in terms of market share in the US apparel market, ahead of more established suppliers such as Pakistan, Bangladesh, Honduras, Thailand, Philippines, Cambodia, Sri Lanka and Guatemala.

According to projections, US imports from Vietnam will be about $8.4bil in 2006 and about $14bil in 2010.

We are seeing a steady stream of US company visitors, many from China, who are interested in building factories in Vietnam now that WTO accession is around the corner.

Another positive factor, in the case of apparel trade, is that under a 2003 agreement, the US agreed that it would remove apparel quotas upon Vietnam's accession to the WTO.

According to the US Trade Representative's statement, "the Agreement Relating to Trade in... Textiles and Textile Products, extended by Memorandum of Understanding between the US and Vietnam, will expire on the date of Vietnam's accession to the WTO and quotas under the Agreement will be removed as of that date."

So that certainly is a positive opportunity for Vietnam's apparel industry and workers, as well as US importers and retailers. Already in 2006, US imports of apparel from Vietnam are up 25% in the first eight months of the year, and may reach $3.6bil for the year.

Another positive aspect of Vietnam's WTO accession, as it relates to the American business community, is that the US-Vietnam WTO Bilateral Market Access Agreement, signed on May 31, 2006, should create significant new opportunities for US producers and exporters of industrial and agricultural goods as well as US service providers.

Vietnam's tariff commitments in the Agreement will mean that more than 94% of US exports of manufactured goods will face duties of 15% or less upon implementation of Vietnam's accession commitments.

Approximately three-fourths of US agricultural exports to Vietnam will face tariff rates of 15% or less.

US service providers will benefit in particular from more open access in areas like telecommunications (including satellite services), distribution, financial services (including branching for insurance in addition to existing branching commitments with respect to banking) and energy services.

On the "con", or challenges, side, in the US-Vietnam WTO Bilateral Market Access Agreement, signed in HCM City on May 31, 2006, Vietnam agreed to eliminate all "red-light" subsidies for the textile and apparel sector by the date of accession.

AmCham remains concerned about its impact on employment and growth, though we are pleased that transitional measures were allowed to mitigate this impact on other industries.

The most important subsidy that will be eliminated is the reduced Enterprise Income Taxrates provided as investment incentives under Decree No. 164 issued on December 22, 2003.

In very simple terms, the Enterprise Income Tax rates for most of the 450 foreign-invested enterprises mentioned above, exporting 100% of their production, will be 28%. Domestic firms benefiting from these tax incentives will also have increased tax rates.

In addition, the Vietnam-US agreement provided for a special and unique monitoring and enforcement mechanism through which the US could reimpose quotas on Vietnam apparel exports.

This would be done only if a neutral arbiter determined that Vietnam had not met its commitments to eliminate WTO-prohibited subsidies for the textile and apparel sectors.

We have recently learned about the September 28 letter from US Trade Representative Susan Schwab and Commerce Secretary Carlos Gutierrez to US Senators Robert Dole and Lindsey Graham announcing that the Bush Administration will closely monitor and review imports of textiles and apparel from Vietnam.

The administration would review every six months whether there is sufficient evidence to initiate an anti-dumping investigation of any textile or apparel goods from Vietnam, and whether critical circumstances exist that would allow for preliminary duties to be replied retroactively.

If dumping exists and material injury is caused by such imports, the Department of Commerce would self-initiate anti-dumping investigations with respect to the relevant products.

We are concerned that this promised programme might create so much uncertainty and business risk that it will discourage exports from Vietnam of these products.

Already, factories in Vietnam as well as JLJS importers/ retailers have talked of "moving orders out of Vietnam "into other supplying countries that are not subject to this same programme, have no quotas, and are duty-free under the Generalised System of Preferences (GSP).

The prospective loss of export earnings from apparel, Vietnam's largest export industry, would naturally lead to significant losses of export opportunities in the Vietnam market for US producers and exporters of industrial and agricultural goods, as well as US service providers.

While there are challenges in joining the WTO, the greatest opportunity is that, by bringing its trade and investment laws and regulations into compliance with WTO global standards, Vietnam will create a more favorable business environment that will attract more foreign direct and indirect investment as well as trade.

These are the main factors that will promote economic and social development.

What has the American business community done to prepare for Vietnam's accession to the WTO by the end of this year?

AmCham has recommended to both the Vietnamese and US governments specifics of the Vietnam-US WTO Bilateral Market Access Agreement to help reach a positive agreement for all.

We submitted detailed recommendations in September 2004, September 2005, March 2006 and May 2006.

In March and May 2006, when many advised Vietnam that all export subsidies would have to be eliminated upon accession, AmCham persisted in urging the US government to consider transitional measures that would allow Vietnam to bring its system of tax incentives for exporters into line with WTO requirements, without causing serious economic dislocations in Vietnam.

Specifically, we requested gradual phase-outs to reduce the impact on US investors as well as their suppliers and customers. This was achieved for all sectors, except for textiles and apparel.

At the same time, AmCham opposed quantitative restrictions on Vietnamese exports, and specifically, "textile safeguards" on apparel exports from Vietnam to the US.

We appealed for significantly better market access for US exporters of goods and services, including greater trading and distribution rights, in general.

We also asked for limits on Vietnam's use of quantitative restrictions disguised as prudential measures in the financial services sector (for example, absolute ceilings or floors on financial size vs. risk weighted measures for US banks).

In summary, Vietnam urged both the Vietnamese and US governments to reach an agreement that would create jobs and opportunities for both countries in a growing partnership that will ensure that Vietnam achieves its potential as a significant market for American goods and services.

In addition, AmCham has suggested that the Vietnamese government prepare for WTO accession by:

* Taking urgent measures to revise the tax system so that WTO accession will be "revenue-neutral" for FDI and domestic companies and the State.

* Accelerate investment in electric power, seaports and other infrastructure, to make export manufacturing and supply chain logistics efficient and competitive, and promote international investment in infrastructure, especially electric power and seaports.

There is not enough money from domestic savings or international Official Development Assistance (ODA) to pay for needed investments.

* Welcome more international participation in logistics, transportation, financial services, telecommunications, and other support service projects to strengthen the manufacturing sector's competitiveness.

Recently we supported a mission to HCM City and Hanoi that high-lighted our concerns that Vietnam's infrastructure is falling behind the needs of increased trade and investment.

In addition, AmCham has supported the People's Committees of HCM City and Dong Nai in arranging trade and investment missions to New York, Chicago, San Francisco, Los Angeles and Orlando for meetings with US businesses interested in FDI, infrastructure development and finance.

(Source: Viet Nam News)

Hanoi Telecom to initiate new mobile network in Nov.
15:29' 20/10/2006 (GMT+7)


VietNamNet Bridge – Hanoi Telecom has finally fixed the launch date for its HT Mobile (code 092) service: mid November 2006.



In the past two years, Hanoi Telecom has erected nearly 800 base transmission stations (BTS) and is fulfilling the final steps to put the network into operation.



The Ministry of Planning and Investment (MPI) on February 18, 2005 presented the investment licence for this CDMA technology-based mobile phone network to Hanoi Telecom and Luxembourg’s Huchison Whampoa group. This is considered the biggest project so far in the field of telecommunications in Vietnam with total investment of around US$655.9 million.



Along with Hanoi Telecom’s 092 network, Vietnam will have six mobile service providers, including the three CDMA technology-based networks of S-Fone, EVN Telecom and Hanoi Telecom.



(Source: VNE

Pharmaceutical industry welcomes foreign investment
17:07' 20/10/2006 (GMT+7)


VietNamNet Bridge – The Ministry of Health has pledged to take necessary measures to create a favourable environment for businesses in the pharmaceutical industry.

Foreign invested enterprises provide 60% of the medicine value to the domestic market, including the specifics that cannot be produced domestically. Foreign enterprises are also the main suppliers of materials for the domestic pharmaceutical industry. The enterprises have been playing a very important role in the fight against fake medicine and stabilising the market.

What worries most foreign pharmaceutical investors is the unclear legal framework. They have said that Vietnam should have a transparent and clear environment with no discrimination in treatment between local and foreign businesses. The existence of a good business climate will become more important when Vietnam joins the WTO.

Head of the Vietnam Drug Administration Cao Minh Quang said that in Vietnam the health care and pharmaceutics sectors were listed among the fields offered tax incentives. Foreign investors in the fields can enjoy the preferential tax rates of 20%, 15% and 10%. This reflects the Government’s policy on encouraging foreign investment in these fields.

The Ministry of Health encourages foreign investment in medicine production workshops in Vietnam, especially ones that use high-tech production lines and Vietnam-sourced materials.

Though having been playing a very important role in the development of Vietnam’s pharmaceutical industry, some foreign invested enterprises have violated regulations on giving information and advertising.

According to the Vietnam Drug Administration, by the end of September 2006, there were been 312 licensed foreign invested projects. The investors mostly come from the Republic of Korea, China, India and Pakistan.

Le Ha

Hanoi: Districts can licence projects up to VND75bil
16:55' 20/10/2006 (GMT+7)

VietNamNet Bridge – Districts in Hanoi will have the authority to grant investment licences to projects of C group, with investment up to VND75 billion (US$4.68 million) as of November 2006, said Director of the Hanoi Department of Planning and Investment Trieu Dinh Phuc.

Projects of group C include projects to build health, cultural, educational, television and broadcasting, and civil construction works worth less than VND15 billion ($937,000);

projects to build light industry works of less than VND40 billion ($2.5 million);

irrigation, water supply and drainage, electric, pharmaceutical chemistry, post and telecom projects of less than VND50 billion ($3.125 million);

and projects to build electrical works, oil and gas, chemical, fertilizer, cement, metallurgy, housing and transport projects of less than VND75 million ($4.68 million).



(Source: Tuoi Tre)

Talking Shop
WTO to spur boom in manufacturing, services
19:56' 19/10/2006 (GMT+7)

VietNamNet Bridge – Vietnam ended the final round of WTO negotiations last week, a final step in the process of acceding to the global trade body.

Viet Nam News sat down to speak with George E. Kobrossy, general director of Zamil Steel Vietnam, a leading manufacturer of pre-engineered steel buildings, about how WTO membership is expected to bring both opportunities and challenges to the country's fledgling economy.

Kobrossy, who has over 10 years experience in Vietnam, shared his insights about how businesses should be prepared to survive in a larger and more fierce economic arena.

• Vietnam will likely join the WTO by the end of this year. In your opinion, what are the opportunities and challenges faced by local businesses? What are the prospects for the pre-engineered steel buildings industry on the threshold of WTO membership?

Vietnam will soon join the WTO with a consequent liberalisation of the economy, which will open new markets for Vietnam.

This will be a good opportunity for pre-engineered steel building makers in expanding our business. We believe more foreign investors will come to Vietnam and boost demand for pre-engineered steel buildings.

The influx of foreign investors over the last few years indicates the potential of Vietnam as an attractive destination for foreign investment with even greater potential ahead.

The opening up of the services and retail sectors after WTO accession will create a boom in these areas. I believe in the coming decade that Vietnam will become one of the strong manufacturing and service industry hubs in Asia.

On the other hand, Vietnam's international integration will open more new doors and provide more opportunities for pre-engineered steel businesses like Zamil Steel. We will compete with other international rivals.

At present, we export 40-45% of our production to Southeast Asian countries, Japan and some other markets such as Mongolia and Bangladesh. With Vietnam's entry into WTO, we believe the export market will expand significantly.

I believe the market is tremendous and customers will be more quality-oriented. The arrival of major multinational corporations will drive up the demand for steel buildings.

• You said both opportunities and challenges await businesses when Vietnam becomes a member of WTO. How have you prepared to stay competitive?

Foreseeing a robust growth in demand in Vietnam and the region, we have decided to expand our production building a new factory in the southern province of Dong Nai. Once the new factory becomes operational, our annual capacity will increase to 90,000 tonnes.

We also target to open sales offices in more provinces in Vietnam and the region.

• How can the Government help businesses sharpen their competitiveness?

We have experienced the great efforts made by the Government to make Vietnam a desirable home for foreign investments.

At the same time, we also recognise that the Government needs to further intensify its efforts to improve infrastructure. Commercial laws also require more clarity to give foreign investors more confidence in the laws of the country.

Further, intellectual property should be regulated by a fully constituted legal system to protect investors from infringements.

While the authorities have been actively working on restructuring the banking laws such efforts need to be intensified to meet international standards.

We also feel that it would be helpful and relevant if the Government could take the initiative to establish standards for the steel buildings industry, by introducing a classification and accreditation system whereby manufacturers are classified and given accreditation based on their technical capacities, manufacturing facilities, financial strength, material quality, processes applied in design and manufacturing, among other relevant aspects.

Such an initiative would upgrade the standards of the industry by setting benchmarks.

(Source: Viet Nam News)

HSBC helps local exporters and importers get used to internet banking
15:53' 21/10/2006 (GMT+7)

VietNamNet Bridge – The Hong Kong and Shanghai Banking Corporation (HSBC) has sent experts to Vietnam to lecture on on-line transactions on imports-exports, which are now used worldwide as the key external trade solution.

Alain Cany, HSBC - Viet Nam Executive Manager, said at a workshop in Hanoi on Oct. 20 that the measure, technically known as information technology solution (ITS), helps save time in doing transactions and enables contractors to embark on production immediately after finishing export transactions.

ITS plays the role of a global and multi-functional e-banking channel, which enables clients to conduct transactions and visit any transaction accounts anywhere and whenever its convenient for them, explained Alain Cany.

(Source: VNA)

Japan - Big market for Vietnamese aquatic products
15:31' 21/10/2006 (GMT+7)

VietNamNet Bridge – Vietnam is likely to earn US$750-800mil from exporting aquatic products to Japan in 2006 and the revenue is expected to reach US$1-1.2bil by 2010 if the country continues to enjoy high growth rate of 8.5-9%, according to estimates by the Ministry of Trade.

Frozen shrimp is still the number one aquatic product exported to the Japanese market, followed by frozen cuttlefish and fish, said experts from the ministry.

The officials, however, suggested that local businesses should increase the export of other aquatic products, such as fresh shrimp and fish, canned shrimp, cuttlefish and fish, and other processed and packed products, to the Japanese market.

According to the Ministry of Fisheries, Vietnam fetched some US$2.3bil from exporting aquatic products to foreign markets over the last nine months.

Japan was the largest market for Vietnamese aquatic products, followed by the US, China, the EU. Russia and other Eastern European countries have also become important markets.

(Source: VNA)

Originally Posted by chouchou

HSBC helps local exporters and importers get used to internet banking
15:53' 21/10/2006 (GMT+7)

ITS plays the role of a global and multi-functional e-banking channel, which enables clients to conduct transactions and visit any transaction accounts anywhere and whenever its convenient for them, explained Alain Cany.

(Source: VNA)

Thats a very helpful disclosure as I certainly can add the value in gaining by being a HSBC loyal customer from as far back as 1976 in UK.

Today, it goes beyond than what we once came to know ...the traditional method of banking and on another added appraisal for HSBC services is that their DC is FREE, yes, no monthly charges and the standard services that accompany online banking are EXCELLENT and competitive in rates however, their "other" higher level services may climb substantially.

Thus, have a HSBC acct is advantageous wherever U R...wherever you may next go to and whatever currency you want to deal with, they are EXCELLENT, I can vouch for them as well!!!...next to CitiGroup's services as well...another true business partner on a global platform!!!

The DONGs will someday have a welcome entry into the international market and just BE READY when it does...its NOT only rice fields and super coffee...but its going to be a LOUD DONG to my ears too...hope you have yours ready....


YB. - cheers to the DONG crowd gathering out there...

Hi Yogi

I also have an HSBC account, but when I spoke whith them regarding buying Dong, they had no idea....

Have you got some contact in HSBC to see if they know when they going to list the Dong.

I suppose it will be like the Dinars when hopfully soon we will be able to buy for ..........£40 per million Dong.

Thanks.