Thread: Latest news on the Dong!

Projects offered to foreign investors

11:27' 25/06/2007 (GMT+7)

VietNamNet Bridge – Government ministries released a list of projects open to foreign investment at a seminar on investment opportunities in the country in HCM City last Saturday.
Executives from 180 companies, including 30 foreign, participated in the Trade and Investment Opportunities in Viet Nam seminar.
Le Van Duoc, director of the Ministry of Industry's Planning Department, said in 2006-2010 the country required gross capital formation of around US$140bil of which 35% was expected to come from foreign sources.
The industrial sector would require 44.5% of the total amount.
"Our ministry has prepared a list of projects for foreign investment."
It included a two million tonnes per annum hot rolled steel project in either Ha Tinh or Ba Ria-Vung Tau Province which would be a joint venture capitalised at a maximum of $500mil.
Others included a $170mil alloy plant with an annual capacity of 100,000 tonnes in Hai Phong; a shipyard each in Ba Ria-Vung Tau and Binh Dinh provinces; a petrochemical plant; oil refinery; thermal and hydropower plants; and ***** plant.
Deputy Minister of Trade Luong Van Tu gave an overview on Vietnam's new policies since becoming a WTO member in January.
The National Assembly and Government have adopted and amended 25 laws and ordinances.
"Vietnam's transparent, stable, and predictable legal environment creates favourable conditions for both domestic and foreign investors," he said, adding it had been the first country with an adequate legal framework at the time of accession to follow WTO rules and regulations.
The conference was jointly organised by the Ministry of Industry and Viet Nam Chamber of Commerce and Industry.
(Source: Viet Nam News)

Foreign traders win new rights

08:47' 25/06/2007 (GMT+7)
VietNamNet Bridge - For the first time, foreign traders without presence in Vietnam will have the right to import or export directly, according to a new government decree.
Under Decree 90/2007/ ND-CP, dated May 31, 2007, which was made in line with the country’s WTO commitments, “without presence” means the foreign trader has made no direct investment or opened a representative office or branch in Vietnam.

Pham Dinh Thuong, an expert with the Ministry of Trade, said it was the first time Vietnam’s law allowed foreign traders without presence in the country to have the right to be named in a customs declaration paper.

“Previously, foreign trade relations were implemented only when one side was a Vietnamese trader who had their name in the declaration paper. Now, import and export contracts can be made directly between foreign traders,” Thuong said.

In other words, to import from or export to Vietnam, foreign traders used to have to choose either one or two ways: setting up a foreign-invested enterprise in Vietnam or implementing the import-export contract via an intermediary Vietnamese company.

Thuong said the move would open up more access for foreign traders.

Specifically, foreign traders without presence in Vietnam now have the right to buy goods in Vietnam for export and put their name on the customs declaration, and they have to be responsible for export procedures.

However, this right does not include the right to organise a network to collect commodities for export.

As for import rights, foreign traders have the right to import commodities into Vietnam to sell to traders who have the right to distribute those commodities on the domestic market. This right does not include the right to organise or participate in a commodity distribution system in Vietnam.

“Another benefit that Decree 90 gives to foreign traders without presence in Vietnam is that they can reduce the sale prices of the commodities by excluding the fees paid to a Vietnamese intermediary import-export company,” said Dang Trong Hieu, a lawyer at Vision & Associates.

Hieu said there were two questionable points in the decree. Firstly, the decree states that it will take the Ministry of Trade 30 working days to issue import-export right certificate to foreign traders without presence in Vietnam from the day the ministry receives application.

“Thirty days is rather long. Although the application documents of a FDI project are more complicated, the Investment Law regulates the time for granting a licence to an FDI project as only 15 days,” Hieu said.

Secondly, the decree’s article 7.1 rules that foreign traders without presence in Vietnam who register for import-export rights must not have had their rights to engage in commercial activities revoked or be subject to punishment concerning commercial activities in line with Vietnamese and foreign laws.

“The foreign side may provide certification of their trading status but what Vietnamese agency will recognise this (certification) and where can this agency get the necessary proof?” Hieu asked.

Le Hong Phong, an expert from Bizconsult, said Vietnamese state agencies did not have enough data or information to confirm the certification. He said the Ministry of Trade should clarify this point through a circular letter that guides the implementation of decree 90.

Otherwise, this point may be a barrier to foreign traders who are want to engage in import-export activities in Vietnam. He also said that the Ministry of Trade should issue the circular soon so that foreign traders without presence in Vietnam can enjoy these rights.

(Source: VIR)

So what is happening with an rv of the dong. Has it gone limp or what?
Seems like so much good news but not on the move. Whats up with that

Sounds like price fixing at the IMF level...

DesertWolf

what do you mean?

how do they price fix currency? thanks laura

Tỷ giá ngoại tệ

Tỷ giá bình quân liên NH
Ngày 25/6/2007

1 USD=16.123 VNĐ

Tỷ giá giao dịch của NHNN tại Sở Giao dịch
Ngày 25/6/2007

Mua

Bán

USD

16.122

16.128

BUSINESS IN BRIEF 27/6

16:16' 27/06/2007 (GMT+7)

Steel holding company makes debut

The Vietnam Steel Corporation (VNSTEEL) made its debut in the form of a parent company in Hanoi on June 26.

The State-owned corporation will operate in compliance with the Law on State-owned Enterprises and is responsible for upholding the legitimate rights and duties of the former Vietnam Steel Corporation, the Southern Steel Company and the Phu My Flat Steel Company.

This year, VNSTEEL plans to obtain an industrial production value of 11.2 trillion VND, an output of 2.5 million tonnes of rolled steel and 1 million tonnes of steel ingot.

VNSTEEL will continue expanding the production of assorted steel products, while speeding up the equitisation of its affiliated steel companies such as Bien Hoa, Thu Duc and Nha Be in 2007 and Thai Nguyen in 2008 in preparation for the equitisation of the whole Vietnam Steel Corporation in 2009.

Speaking at the event, Deputy Prime Minister Truong Vinh Trong said that in addition to developing a strategy on the steel industry’s development through 2010 with vision beyond 2025, VNSTEEL should take measures to promote its trademarks which symbolises high the quality and rational prices at a time when low-priced steel are massively imported into the country.

On the morning the same day, VNSTEEL signed a cooperation agreement with the Vietnam Industrial and Commercial Bank.

PM requires Cao Bang to speed up socio-economic work

Prime Minister Nguyen Tan Dung has urged the northern border province of Cao Bang to speed up its socio-economic development.

The government leader made the recommendations during his visit to the province on June 25-26 to discuss the province’s socio-economic development from now until 2010.

The PM said Cao Bang, which shares 300 km of borderline with China, is one of the poorest provinces in the country. The province registered an economic growth rate of more than 11 percent and has an average per-capita income of 340 USD last year.

He went on to say that Cao Bang has been capable of being self sufficient, its industry and service sectors have developed and the province has paid attention to developing education and culture and upgrading its infrastructure. However, economic targets set by the province remain too low.

The PM also asked the province to review its plan in order to fall in line with the province’s situation and environmental protection efforts. He spotlighted the advantages of the province’s proximity with China, which he said would create favourable conditions for tourism and services development.

The government leader proposed the province give equal priority to industry, agriculture and services in its economic development plan. Regarding agricultural development, a focus should be placed on intensive farming, forestry and stock breeding the PM said.

The province was also requested to hook up with the central authorities to tap its strengths of developing hydroelectricity and mining.

The PM asked the province to call on parties to developing industry and services while ensuring environmental protection and sustainable development. Priority will be given to developing the Ban Gioc waterfall, including the construction of a route linking the National Highway 3 to the waterfall for tourism purposes, he said.

PM Dung said that the provincial authorities must work closely with relevant ministries and agencies to implement the border demarcation and planting between Vietnam and China in order to successfully deploy the agreement reached between leaders of the two countries.

French businesses keen on Vietnam

Entrepreneurs from France are showing interest in doing business in Vietnam, a representative from the French Business Confederation (MEDEF) said on June 26.

Frederic Sanchez, President of the Vietnamese sub-committee of the MEDEF, is leading a delegation of 20 businesses in transportation, industry, finance, energy, oil and gas, banking and automobile which started a four-day investment fact-finding tour of Vietnam on June 25.

Sanchez said the tour is aimed at gaining insights into reform projects and the process of privatisation and equitisation in Vietnam, as well as projects to build a metro in Hanoi and express railway routes in Hanoi and the central province of Nghe An.

“Study into the Vietnamese market will help French businesses understand to what extent they can meet development requirements in Vietnam,” he said.

While in Vietnam, the MEDEF delegation is slated to meet with the Vietnamese Prime Minister; the Ministers of Planning and Investment, Industry, Transport and Communication, and Construction; and the Chairmen of the Hanoi and Ho Chi Minh City People’s Committees.

According to Sanchez, Vietnam is a dynamic market, with economic growth rates consistently hovering between 8-10 percent, a young population and the formation of a new middle class will drive up the demand for consumer goods in the country.

“There will be opportunities for French businesses,” he said.

Sanchez said over the last 15 years he had visited Vietnam between 2-3 times a year on average.

“Vietnam is changing every day and we can see this change with our own eyes. Modernisation and industrialisation are taking place rapidly in the country,” he said.

However, the French representative said some regulations and laws are no longer suitable for the development in the country. He suggested that they be adjusted to fall into line with international rules and norms as Vietnam has already been admitted to the World Trade Organisation.

According to the Ministry of Planning and Investment, France has invested in 326 projects in Vietnam to the tune of 2.29 billion USD and now sits at 9th on the 77 strong list of foreign investors in Vietnam.

Since 2004, the French Government has also provided Vietnam with 400 million USD a year in aid and is the second largest bilateral donor to the country after Japan.

Thailand exempts tariffs on Vietnamese farm goods

The Thai government has agreed to cut import taxes levied on several agricultural products from its neighbouring countries, including Vietnam.

The decision falls in line with the Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy (ACMECS) signed by Thailand and its neighbouring countries, including Cambodia, Laos, Myanmar and Vietnam.

The farm products to enjoy tax exemptions will include maize, soya-beans, eucalyptus and palm oil.

Around 108,000 tonnes of products that fall into these categories are forecast to be imported into Thailand in 2007 before growing to 428,000 tonnes in 2008.

Overseas Vietnamese association in Geneva debuts

"Maison du Vietnam" (Vietnam’s House), the association of overseas Vietnamese in Geneva was inaugurated at a ceremony in Geneva, Switzerland, on June 26.

The association aims to bring together the Vietnamese community in Geneva and nearby regions to celebrate their ethnicity through traditional arts, food and the teaching and learning of the Vietnamese language.

Vietnamese Ambassador Ngo Quang Xuan, Head of the Vietnamese delegation to the UN, the WTO and other international organisations, attended the ceremony.

Vietnam-RoK business forum to take place early July

The Ministry of Planning and Investment (MPI) will host a business forum between Vietnam and the Republic of Korea (RoK) on July 3, according to the Vietnam Chamber of Commerce and Industry (VCCI).

The ministry will also chair the first session of the Vietnam-RoK joint working group on July 2, while the VCCI will preside over the ninth session of the Vietnam-RoK joint economic committee, the chamber further said.

These events are organised on the occasion of a visit to Vietnam from July 1-15 by RoK businesses, led by Minister of Industry, Commerce and Energy Kim Young-ju. The delegation will include 120 representatives of RoK businesses operating in information and technology, energy, construction, transportation, investment, finance, real estate, commerce and service sector.

Business people and officials from the two countries will discuss measures to deal with difficulties in business and investment activities.

According to the MPI, RoK ranked the second among 77 countries and territories investing in Vietnam with 1,392 valid projects worth 8.73 billion USD by May 22.

Appliances maker Mitsustar to enter US market

Vietnam Electronics and Refrigeration Technology Corporation (Mitsustar) has announced plans to establish a home ware and household utensil retail chain in the US.

Mitsustar General Director Hoang Viet Dung made the statement after he and a travelling delegation of Vietnamese businessmen returned home after accompanying State President Nguyen Minh Triet on his groundbreaking trip to the US.

He said that Mitsustar had already concluded market research and had devised an entry strategy for the world’s largest economy. During the visit, Mitsustar reached agreement to export its Vietnamese produced goods to major retail outlets in the US and will look to list on one of the country’s bourses in the future.

The visit has been viewed as a boon for the company as it worked out another agreement on using a leading US electronic distributor expertise to build a similar network in Vietnam that will see a significant capital rollout take place in its industrial-service-urban zone in northern Hung Yen province.

(Source: VNA)

BMW, Porsche look set to enter Vietnam

13:21' 27/06/2007 (GMT+7)

VietNamNet Bridge – World-renowned automakers BMW and Porsche will market their luxury cars in Vietnam where consumer demand for automobiles is rising steadily on the back of the country's strong economic growth.
Porsche, a world leader in sports car production, will choose HCMC-based Prestige Sports, Cars (PSC) as its authorized Porsche importer in Vietnam, said sales and marketing director of PSC Paris Lin.
PSC is building a Porsche center in Saigon South area in HCMC's District 7, which will be up and running in the first quarter of next year.
The center covering 2,500 square meters will offer future Porsche customers a one-stop facility, he added. Sales, after-sale, parts, Porsche Merchandising (Porsche Design Driver's Selection) and other services will be made available.
The company will also offer individual customization for each Porsche model. "This customization and the sportyness of our cars make Porsche special and different from others in the world," Lin said.
The company is going to import the Cayenne V6 in September this year at a price of at least US$137,000, including VAT. The entire model range will be here at the end this year including Cayenne, 911, Boxster and Cayman, he said.
BMW has announced it will distribute cars in Vietnam from July 2007 after its failure in a joint venture there.
BMW will initially sell five models in Vietnam, including luxury 7-series sedans and X5 multipurpose vehicles.
BMW has appointed Euro Auto Joint Stock Co. as its distributor in the country.
BMW sold only 101 vehicles, mostly of 3-series, in Vietnam in 2006 and 37 units in the first four months of 2007.
BMW earlier withdrew from VMC joint venture in Vietnam in the wake of poor performance.
There are currently 17 foreign-invested automakers with total capital of more than US$1bil. However, only $700mil has been disbursed to date.
(Source: SGT)

VN-Index up, HaSTC-Index down slightly

10:01' 27/06/2007 (GMT+7)

VietNamNet Bridge - Ho Chi Minh City's bourse continued its upward trend while its Hanoi-based counterpart reported a slight drop by the end of the day's trading on June 26.

The VN-Index at the country's largest exchange in Ho Chi Minh City tacked on 11.31 points or 1.1 percent from the previous session to close at 1055.7 points.

More than 5.6 million shares, worth a combined 615.1 billion VND, changed hands on the day, 47 stocks rallied for gains, 26 shares remained the same and 36 shares fell over the course of the session.

Blue chip share Sai Gon Thuong Tin Commercial Bank (STB) led the market in terms of trading volume with 693,090 shares changing hands on the day. Petroleum Drilling Service Firm (PVD) with 290,990 shares and Song Da Urban and Industrial Zone Investment and Development ( SJS ) with 283,830 shares rounded out the top three.

Although the State Securities Commission (SSC) has not yet determined whether Binh Dinh Mining Co ( BMC ) has been artificially inflating their stock price, 800 shares were offered during the session. As there was no demand for BMC, its price fell 27,000 VND to 514,000 VND per unit.

Financing and Promoting Technology Corporation ( FPT ) hit the ceiling price by 15,000 VND to 324,000 VND with all the 218,550 shares being snatched up. Pharmaceutical company (DHG), Confectioner Kinh Do Corp (KDC) and plastic tube producer BMP were also among the top five in terms of price gains.

The HaSTC-Index at the Hanoi Securities Trading Centre continued to slide 0.52 points from its last session to finish at 295.4 points marking its sharpest decline since early this year.

Thirty-seven of 87 shares recorded small losses in prices. Noteworthy, after recording price gains for consecutive days, the newly listed Cho Lon Real Estate (CRL) fell 23,500 VND to close at 236,000 VND per share today.

On the day, almost 1 million shares, worth over 108.95 billion VND, changed hands at the Hanoi bourse.

(Source: VNA)

Survey on businesses to start up

10:00' 27/06/2007 (GMT+7)

VietNamNet Bridge - A national survey of economic, administrative and service entities will begin nationwide from July 1, said General Director of the General Statistic Office (GSO) Le Manh Hung, on June 26.

The study will be the third of its kind conducted in the country, the first survey was run in 1995 and the second in 2002. A government stipulation now requires that the census be conducted every five years.

The survey will cover all administrative agencies, service establishments of Party organisations, mass organisations, associations, social organisations, businesses and production establishments of all economic sectors, excluding a number of household production establishments involved in the agricultural and fishery sectors, foreign embassies and Vietnam-based international organisations.

According to the GSO, the number of economic, administrative and service establishments has surged sharply over the last decade. The 2002 survey showed that the country had more than 2.8 million establishments and that figure is being forecast to leap again to between 4.3-4.5 million by the time the 2007 report is completed.

(Source: VNA)