Business in brief in 31 Aug 2012
The Prime Minister has agreed to exempt taxes for a number of agro-products farmed by Vietnamese households and enterprises in Cambodia who export to Vietnam, except for sugarcane and cassava. The tax exemption is expected to help local companies reduce production costs thanks to lower prices of input materials. Following the signing of the bilateral trade agreement between Vietnamese and Cambodian governments on February 17, the Ministry of Finance released Circular 82 on special preferential import tax policies targeting commodities imported from Cambodia. However, sugarcane and cassava materials are not present in the list of 40 Cambodian agricultural products that earned tax exemption in the newly-issued circular.
Vietnam will be the world’s third largest rice exporter in the next decade, after Thailand and India, Asian Development Bank (ADB) announced on August 30. Last year, total rice exports from Thailand, India, Pakistan and the US accounted for 87 percent of the global value. In 2011, Vietnam harvested 7.6 million hectares of paddy and produced 26.5 million tons of rice with the average yield of 3.49 ton per hectare, showing a year-on-year increase of 0.94 percent. ASEAN is now the world’s largest rice-exporting region with its export volume rising from 110 million tons in the 2010-2011 crops to 128 million tons in the 2021-2022 crops. Vietnam and Thailand are two major suppliers of rice to Africa, ADB added.
During ‘Sale Promotion Month’ launched on Thursday night at the Phu Tho Indoor Stadium in Ho Chi Minh City, about 2,700 retail outlets will offer huge discounts on hundreds of products throughout the month of September. This year, the ‘Sale Promotion Month’ has attracted more than 750 businesses to participate, up by seven percent over last year, who will sell their products at huge discounts in 2,700 retail outlets. There will also be a ‘Promotion Fair’ held during September in which 250 businesses will display their goods at more than 430 stalls from August 30 to September 3.
Imports of Complete Built Unit (CBU) motorbikes have picked up after a sharp decline, according to the General Statistics Office (GSO). Vietnam imported 4,000 CBU motorbikes worth US$7 million in June, up 100 percent in volume and more than US$130 percent in value compared to May. Then, the import volume dropped sharply to 1,790 motorbikes worth US$3 million in July and rose to 3,000 motorbikes worth US$7 million in August. In the past eight months, motorbike imports were estimated at 24,300 units worth US$43 million, down 50.9 percent in volume and 37.1 percent in value compared to a year earlier.
Deputy Finance Minister Truong Chi Trung attended the 19th APEC Finance Ministers’ Meeting and related meetings in Moscow on August 28-30. Vietnam shared its macro-economic issues and concerns over regional issues and discussed the meeting’s joint statement. On the sidelines of the event, Trung had a bilateral working session with his Russian counterpart Sergei Storchak, reviewing each country’s macro-economic situation and international and regional issues of common concern. They signed a memorandum of understanding on enhancement of cooperation between the two finance ministries. The 19th APEC Finance Ministers’ Meeting was the most important event in the cooperation process of APEC finance ministers to prepare for the APEC Summit, scheduled for September 2 in Vladivostock city, Russia.
Vietnam Consumer Digital World Expo 2012 opened at Tan Binh International Exhibition & Convention Center on August 30. The four-day exhibition, co-hosted by IDG Vietnam, Ho Chi Minh City Computer Association and the National Steering Committee on Information and Technology, showcases more than 200 booths from ten countries and territories with various kinds of technology products such as mobile phones, electronics, telecommunications, digital devices, and the application of cloud computing. The event aims to introduce the most advanced products, services and technology solutions for consumers, and provide an opportunity for enterprises to seek new partners.
US Trade Representative Ron Kirk is scheduled to pay a two-day visit to Vietnam from September 2 to discuss bilateral economic cooperation. During the visit, the US official will meet with leaders from the Ministry of Industry and Trade, the Ministry of Planning and Investment, as well as a number of US and Vietnamese entrepreneurs. He will touch upon issues of common concern towards the signing of the Trans-Pacific Partnership Agreement (TPP), and propose strategies of cooperation to promote common targets at the upcoming Asia Pacific Economic Cooperation Forum (APEC) along with initiatives for supporting efforts for ASEAN integration. Since the US and Vietnam established diplomatic ties 17 years ago, annual two-way trade turnover has increased from below US$1 million to nearly US$22 billion.
A seminar on investment in Myanmar will take place at the Legend Hotel Saigon on September 13 under the arrangement of Le An Media, a member of the 2030 Businessmen Club under the Saigon Times Club, and Irving Seminar & Training. The seminar will provide local enterprises with more information on the investment environment and related laws of Myanmar that can help to prepare them for investing there.
The HCMC authorities have released Decision 4410 adjusting the list of streets in the city used for business purposes including parking lots, Phap Luat reports. As such, part of the pavements of 117 routes will be used as pay parking spaces, 13 other routes will have part of their pavements used for business and services activities while pay parking areas on road surfaces of 37 other routes will be allowed.
Applications are being accepted for the Corporate Social Responsibility (CSR) Award to honor businesses for good performances in the areas of environment and labor in 2010-12. The fifth awards are given away by the Vietnam Chamber of Commerce and Industry (VCCI) together with several ministries and other agencies. "The awards seek to raise businesses’ awareness of their responsibility for the sustainable development of not just of themselves but also their community and society," Nguyen Quang Vinh, general director of the VCCI’s Office for Business Sustainable Development, said. They encouraged businesses to share their experience in labor management and helped link them up with international businesses and forums, he said. "The awards are also expected to provide a motivation for businesses to continue improving working conditions for their employees and protecting the environment, thereby raising their own prestige and competitiveness," he said.
A seminar to help businesses better manage and access capital was held yesterday in HCM City with the participation of more than 200 economists and firms. Deputy General Secretary of the Vietnam Chamber of Commerce and Industry (VCCI) Vo Tan Thanh said that the Government’s measures to control inflation and stabilize the macro economy would help improve the business environment. Therefore, it was necessary to help firms access capital and use it more effectively. Representative from the VCCI’s Vietnam Business Insight Survey Doan Thi Quyen said as firms have so far faced major capital shortages due to high unsold inventories, the Government should speed up investment projects, encourage firms to use each other’s products, develop the domestic market and enlarge export outlets to stimulate consumption.
Callebaut, a famous Belgian-chocolate brand, has chosen United Vision as its sole distributor in the Vietnamese market. The 100-year-old company makes chocolate from ingredients imported from Belgium. It will target four – and five-star hotels, high-grade confectionery companies and other food-and-beverage outlets in Vietnam.
The Vietnam Academy of Social Sciences in conjunction with the Korea Foundation and Seoul National University held the 7th RoK-ASEAN Co-operation Forum from August 29-30 in Ha Noi. The two-day forum, themed "A better world in diversification", marked the 20th anniversary of the establishment of Vietnam-Republic of Korea (RoK) diplomatic ties. It aimed to strengthen multi-faceted co-operation between the RoK and Vietnam as well as other countries in the Association of Southeast Asian Nations (ASEAN). During the event, officials, diplomats and scholars from the RoK and ASEAN member countries discussed issues of common concern in East Asia including sustainable growth and sustainable development, migration, regional security and cultural exchange.
Due to a shortage of input materials, three sugar plants in the Mekong Delta province of Hau Giang - Phung Hiep, Vi Thanh and Long My Phat - have halted operation, Vietnam News Agency reports. Phung Hiep plant will resume operation on Wednesday with Vi Thanh plant following suit a week tomorrow.
Commodities exports reached an estimatedUS$9.8billionin value this month, down3.8%month-on-month while the country spent nearly US$ 10 billion on imports, rising by 3.5% month-on-month, Nguoi Lao Dong reports, citing the General Statistics Office. This is the third consecutive month the country’s export value has fallen.
Taiwan has posted advertisements at two major airports in China and one in Vietnam to promote its medical tourism, as it strives to tap into the emerging market. The Taiwan External Trade Development Council (TAITRA) put up billboards Thursday at Shanghai Pudong Airport and Beijing Capital International Airport for the first time to promote Taiwan’s quality medical services, said a TAITRA official, Chang Cheng-fen, adding the ads have also been posted at Tan Son Nhat International Airport in Vietnam. The new advertising is aimed at attracting high-end consumers in major cities in China and Vietnam, she said.
Quang Ninh People’s Committee has ordered all Ha Long Bay tours to publish their service charges in the local media. This follows many complaints from tourists about disorganized tours and lack of transparency in fees charged. To improve services and prevent losses to the industry and provincial budget, the committee told all boat-tour agents to publicize their prices in the media. The people’s committee also asked relevant agencies to conduct a market survey and recommend prices for tours and overnight stays on Ha Long Bay. These rates will be fixed for at least three months and published on the provincial website and Quang Ninh on-line newspaper.
