Business in brief 08 Nov 2011
The Government has issued Decree 101/2011/ND-CP based on cutting corporate and individual tax rates to iron out snags in production and business activities. According to the decree, tax will be reduced by 30-50 per cent by the end of next year. Enterprises in line for tax reductions include those operating in agricultural, forestry, fisheries, textile, garment, leather, footwear and electronic part production sectors and those contributing to socio-economic development. Business sectors related to the lottery, real estate, finance, securities, banking, insurance, goods production and service trading already enjoy special consumption taxes. Parent company subsidiaries will also fall outside the sphere of new tax levels. The decree will come into effect on December 20.
Agribank has recently signed an agreement with Vietnam Coffee and Cocoa Association (Vicofa) to lend more support to coffee firms to boost coffee exports during the period 2011-2012. Vietnam’s largest bank has pledged support of VND5 trillion at reasonable interest rates to local coffee firms in producing, purchasing, processing and exporting of coffee. Easier access to bank loans will greatly help coffee firms to increase their competitiveness. So far the bank has disbursed VND700 billion to coffee firms since the beginning of the crop season this year.
A new direct air route from Taizhong, Taiwan (China) to Hanoi, Vietnam has been launched by Mandarin Airlines. A non-stop flight coded AE1855 from Ching Chuang Kang airlines landed at Noi Bai International Airport on November 7. Using aircraft Ambraer E190 with 104 seats, Mandarin Airlines is the first agency to launch a direct air route from Hanoi to Taizhong and vice versa. It will conduct three flights a week, on Tuesday, Thursday and Sunday. Established in 1991, the carrier has been operating as a branch of China Airlines – the biggest aviation agency in Taiwan. Since early 2006 it has run flights from Taizhong to Ho Chi Minh City. The opening of the new air route aims to meet the growing demand of Chinese tourists and businesses who wish to visit Vietnam.
An International Jewelry Exhibition Fair will be held at the Phu Tho indoor stadium in District 11 in Ho Chi Minh City from November 10-14. More than 100 local and international enterprises will display their collections in 120 booths at the fair. Foreign jewelry companies from the US, Italy, India, Malaysia, Japan, China, Hong Kong (China), Turkey, Thailand and South Korea will participate at the fair. This is the largest jewelry fair in Vietnam and serves as a rendezvous for jewelry production houses and trade businesses, while displaying the skillful artistry of craftsmen with the latest designs, technology and equipment in the jewelry sector. Besides jewelry, there is also an area for display of watches at the exhibition site. The International Jewelry Exhibition Fair is held annually by Saigon Jewelry Holding Company (SJC) since 1992 and is recognized as the largest Gem and Jewelry event in Vietnam.
Vietnam National Coal and Mineral Industries Corporation (Vinacomin) started construction of a US$280 million ammonium nitrate plant in the northern Thai Binh Province’s Thai Thuy District on Saturday. The plant, with a designed capacity of 200,000 tons per year, is scheduled to be completed in 2014. Once operational, the plant is set to create jobs for 150 labors and generate a profit of VND120 billion ($5.7 million) per year.
The Vietnam National Oil and Gas Group (PVN) and Heerim-PVC International Design Joint Stock Company signed a consultation contract to build the PetroVietnam University. PetroVietnam University, the first such university in the country, will cover an area of nearly 149ha in the northern province of Vinh Phuc. PVN selected Heerim as the design consultant for the first phase of the project after considering 20 other international bidders.
Nestle Vietnam Co Ltd has received an investment license to build a factory in southern Dong Nai Province’s Amata Industrial Zone. The factory will cost US$16 million and be able to process, pack and produce the company’s products, including beverages, grain, coffee, fruit juice, spice and instant noodles. Previously, in August, Nestle also announced its $270 million investment on building a new coffee factory in the province which is slated to become operational in 2013.
The south central province of Phu Yen has scrapped eight projects because investors lacked financial capacity and didn’t pay their investment deposit. The projects include Nam Tuy Hoa Creative City project, O Loan tourism project, the Ca Ton and Phu Mo hydro-electric plants and five other projects. The biggest project to get the axe was Nam Tuy Hoa Creative City project with a total registered capital of US$11.4 billion by Galileo Vietnam Investment Group.
