A ground-breaking ceremony to inaugurated the building of the Vung Anh national key resettlement in Ky Lien Commune, Ky Anh District, Ha Tinh Province was held on February 26th.
The new resettlement area will cover 100 ha, and be capable of accommodating some 200 households.
According to the investor and entrepreneur, a modern and synchronic infrastructural system containing road networks, water and electricity supply, communications networks, a hospital and schools will be built first.
The designers have also provided for various different architectural designs in the new homes for the residents of the future resettlement to choose from.
The Vung Anh resettlement area is one of the 5 resettlement areas that Ha Tinh Province, in coordination with investors, has planned for 3,029 households in the communes of Ky Loi, Ky Phuong, Ky Thinh, Ky Long and Ky Lien, who have to give up their homes and land for industrial and service projects.
Each home will be built on an area of some 400 square meters in the new village. (DDDN)
Saturday, February 28, 2009
Vietnamese economy will revive quickly
The completion of the Vietnam-China land border demarcation and marker planting was highlighted by the Guangxi daily newspaper on February 24th.
The solemn article with pictures was published on the front page of the daily.
Meanwhile, another article giving expert assessments of the Vietnamese economic situation was published on the on-line edition of the Guangxi daily.
The article said, “The Vietnamese economy will recover quickly from the global financial crisis.”
The reporter who wrote the aritcle stressed that Vietnam, with its socio-political stability, plentiful natural and human resources, strong consumer market and continuously improving investment environment will be one of just a handful of nations with the best conditions for economic development in 2009.
According to the writer, Vietnam would be able escape from the current financial crisis, and begin t
The solemn article with pictures was published on the front page of the daily.
Meanwhile, another article giving expert assessments of the Vietnamese economic situation was published on the on-line edition of the Guangxi daily.
The article said, “The Vietnamese economy will recover quickly from the global financial crisis.”
The reporter who wrote the aritcle stressed that Vietnam, with its socio-political stability, plentiful natural and human resources, strong consumer market and continuously improving investment environment will be one of just a handful of nations with the best conditions for economic development in 2009.
According to the writer, Vietnam would be able escape from the current financial crisis, and begin t
Ferrochrome plant construction begins in Thanh Hoa
The Nam Viet Corporation commenced work on the construction of a Ferrochrome manufacturing plant in Trieu Son district of Central Thanh Hoa province on February 26.
The 1.5 trillion VND plant, the first of its kind in Vietnam, will use European technologies with a designed capacity of 200,000 tonnes of products per year.
The plant is expected to be completed within 36 months. Once operational, it will employ thousands of local workers.
The 1.5 trillion VND plant, the first of its kind in Vietnam, will use European technologies with a designed capacity of 200,000 tonnes of products per year.
The plant is expected to be completed within 36 months. Once operational, it will employ thousands of local workers.
Sunday, February 22, 2009
First PE fibre facility planned
Vinatex is looking to build the first polyethylene (PE) fibre plant in Vietnam, to serve domestic textile and apparel production.
Construction of the plant, which will be a joint venture between Vinatex and Vietnam Gas and Petrolium Group PetroVietnam, is scheduled for the second quarter of 2008 at Dung Quat Economic Zone near Dung Quat oil refinery complex.
The PE fibre plant will cost VND3,000bn (US$187.5m), and production of the fibres themselves will use petrochemical products from Dung Quat Oil refinery complex.
Vietnam's textile and garment industry has previously performed stages like reeling fibre, knitting, dyeing, but PE fibre production is an entirely new field for the country.
Construction of the plant, which will be a joint venture between Vinatex and Vietnam Gas and Petrolium Group PetroVietnam, is scheduled for the second quarter of 2008 at Dung Quat Economic Zone near Dung Quat oil refinery complex.
The PE fibre plant will cost VND3,000bn (US$187.5m), and production of the fibres themselves will use petrochemical products from Dung Quat Oil refinery complex.
Vietnam's textile and garment industry has previously performed stages like reeling fibre, knitting, dyeing, but PE fibre production is an entirely new field for the country.
Belgium and Vietnam promote textiles
The Belgian government has committed to providing EUR 1 million for a project to strengthen the capacity in researching, training and developing textile technique testing of the Textile Research Institute (TRI).
Deputy Minister of Industry and Trade Bui Xuan Khu and Belgian Ambassador to Vietnam Hubert Cooreman signed an agreement to this effect in Hanoi on January 22.
The project will help TRI gain self-control in finance and become a leading textile research institute in Vietnam.
The project will focus in increasing the capacity for the Textile Research Institute through R&D activities, transfer of technology, testing and training.
The project will be carried out within 36 months.
Deputy Minister of Industry and Trade Bui Xuan Khu and Belgian Ambassador to Vietnam Hubert Cooreman signed an agreement to this effect in Hanoi on January 22.
The project will help TRI gain self-control in finance and become a leading textile research institute in Vietnam.
The project will focus in increasing the capacity for the Textile Research Institute through R&D activities, transfer of technology, testing and training.
The project will be carried out within 36 months.
Banking - Finance, FDI, Viet Nam Dong - VND
The Foreign Investment Law was issued on December 29, 1987. It was one of the first laws issued during the renovation period. The promulgation of the Foreign Investment Law has institutionalised the Party and State’s policies in effectively attracting foreign investment capital. It is regarded by the international community to be a transparent, attractive code and basically conforms with the international norms. Within the context of fierce competition in attracting foreign investment regionally and globally, the Foreign Investment Law in Vietnam has been a vital lever in attracting foreign investment to Vietnam.
Since the promulgation of the Foreign Investment Law in 1987, the law has been amended four times in 1990, 1992, 1996 and 2000. The issuance of the law as well as of other legal documents relating to foreign investment has created a legal environment for foreign investment activities in Vietnam.
Thus, though the market mechanism in Vietnam has yet to be perfected, foreign investors in Vietnam can still carry out their investment activities in Vietnam without any big differences compared to other countries.
Importance has not only been attached to perfecting legal environment, during the past 20 years, the business and investment environment and the decentralised administration of foreign investment have received due attention. These efforts have contributed to the encouraging foreign investment activities in Vietnam, affirming the significant position of the foreign-invested sector in national industrialisation and modernisation.
By the end of 2007, Vietnam has attracted over 9,500 FDI projects with a total registered capital of US $98 billion, including additional registered capital.
Excluding expired projects and those that have been dissolved ahead of duration, currently 8,590 projects are still valid with a total registered capital of US $83.1 billion. Total registered capital experiences a trend of increasing from 2003 to date.
In 2003, total registered capital increased by six times compared to 2002. In 2004, the figure was up 42.9% compared to 2003; it was 58% in 2005; 75% in 2006 and 69% in 2007.
From 2001 to 2005, Vietnam attracted a total of US $20.8 billion, up 73% against the targeted figure set at the Resolution 09/2001/NQ-CP.
In 2006 and 2007, foreign investment flow to Vietnam increased remarkably with the registry of many large-scale projects in heavy industry and services.
Foreign investment to heavy industry and construction occupies the biggest proportion, accounting for 66.8% of the total number of projects, 60.2% of the total registered capital and 68.5% of the total implemented capital.
From 1988 to the end of 2007, northern localities attracted 2,220 FDI projects with a total registered capital of US $24 billion, accounting for 26% of the project quantity, 19% of registered capital and 24% of the total implemented capital.
Specifically, Hanoi has attracted half of the total registered investment and implemented capital of the whole northern region, followed by Haiphong, Hai Duong and Quang Ninh.
Southern localities from Ninh Thuan southwards have attracted 5,452 projects with total registered capital of US $46.8 billion and total implemented capital of US $15.7 billion, equivalent to 48% of the total number of projects, 56% of registered capital and 51% of implemented capital.
Foreign investment in the Mekong river delta region was the lowest in the country, accounting for only 3.6% of the total number of FDI projects to the country, 4.4% of total registered capital and 3.2% of total implemented capital.
Quang Nam, Da Nang and Phu Yen are currently topping the localities in the central region in terms of foreign investment attraction, though their rate of attraction is still low compared to their potential.
To date, 80 countries and territories have been investing in Vietnam. As many as 68% of these are from Asia; 16.2% from the EU and 11% from America.
The foreign-invested sector is underlining its significance in Vietnam’s economy and is the sector enjoying the most dynamic growth.
Vietnam’s investment and business environment is improving, thus the country is becoming more attractive to both foreign and domestic investors. (Nhan Dan)
Since the promulgation of the Foreign Investment Law in 1987, the law has been amended four times in 1990, 1992, 1996 and 2000. The issuance of the law as well as of other legal documents relating to foreign investment has created a legal environment for foreign investment activities in Vietnam.
Thus, though the market mechanism in Vietnam has yet to be perfected, foreign investors in Vietnam can still carry out their investment activities in Vietnam without any big differences compared to other countries.
Importance has not only been attached to perfecting legal environment, during the past 20 years, the business and investment environment and the decentralised administration of foreign investment have received due attention. These efforts have contributed to the encouraging foreign investment activities in Vietnam, affirming the significant position of the foreign-invested sector in national industrialisation and modernisation.
By the end of 2007, Vietnam has attracted over 9,500 FDI projects with a total registered capital of US $98 billion, including additional registered capital.
Excluding expired projects and those that have been dissolved ahead of duration, currently 8,590 projects are still valid with a total registered capital of US $83.1 billion. Total registered capital experiences a trend of increasing from 2003 to date.
In 2003, total registered capital increased by six times compared to 2002. In 2004, the figure was up 42.9% compared to 2003; it was 58% in 2005; 75% in 2006 and 69% in 2007.
From 2001 to 2005, Vietnam attracted a total of US $20.8 billion, up 73% against the targeted figure set at the Resolution 09/2001/NQ-CP.
In 2006 and 2007, foreign investment flow to Vietnam increased remarkably with the registry of many large-scale projects in heavy industry and services.
Foreign investment to heavy industry and construction occupies the biggest proportion, accounting for 66.8% of the total number of projects, 60.2% of the total registered capital and 68.5% of the total implemented capital.
From 1988 to the end of 2007, northern localities attracted 2,220 FDI projects with a total registered capital of US $24 billion, accounting for 26% of the project quantity, 19% of registered capital and 24% of the total implemented capital.
Specifically, Hanoi has attracted half of the total registered investment and implemented capital of the whole northern region, followed by Haiphong, Hai Duong and Quang Ninh.
Southern localities from Ninh Thuan southwards have attracted 5,452 projects with total registered capital of US $46.8 billion and total implemented capital of US $15.7 billion, equivalent to 48% of the total number of projects, 56% of registered capital and 51% of implemented capital.
Foreign investment in the Mekong river delta region was the lowest in the country, accounting for only 3.6% of the total number of FDI projects to the country, 4.4% of total registered capital and 3.2% of total implemented capital.
Quang Nam, Da Nang and Phu Yen are currently topping the localities in the central region in terms of foreign investment attraction, though their rate of attraction is still low compared to their potential.
To date, 80 countries and territories have been investing in Vietnam. As many as 68% of these are from Asia; 16.2% from the EU and 11% from America.
The foreign-invested sector is underlining its significance in Vietnam’s economy and is the sector enjoying the most dynamic growth.
Vietnam’s investment and business environment is improving, thus the country is becoming more attractive to both foreign and domestic investors. (Nhan Dan)
Dollarization domination
Dollarization in Vietnam is estimated by the State Bank of Vietnam at 21%, relatively high when noting that the figure is 9% in China and 1% in Thailand. Nguyen Dong Tien, Deputy Governor of the State Bank of Vietnam, discussed how serious dollarization is in Vietnam and how to fix the problem.
He said that the Government has asked the State Bank of Vietnam (SBV) to draw up a master plan on reducing dollarization. The plan needs to improve the convertibility of the VND and the value of the VND in international transactions.
Could you please tell us more about the plan?
Previously, experts once suggested that all sums of money transferred from abroad into Vietnam should be converted into VND. However, the Government and central bank decided against this after thorough consideration. Right after this suggestion was made public, the foreign currency inflow into Vietnam decreased sharply.
Therefore, measures to reverse dollarization must be flexible and not extreme, and it is clear that direct intervention or administrative orders are not the right measures. This is the most important requirement for the plan.
Second, measures must ensure that depositors and enterprises have higher confidence in the commercial bank system
Third, it is necessary to make the cost of VND transactions lower compared to US$ transactions, which will help improve the convertibility of the local currency.
Fourth, it is necessary to stabilize the economy, which will result in people having more confidence in the local currency, and get them to keep VND in their wallets.
However, I have to acknowledge that to some extent, we cannot absolutely eliminate the dollarization of the national economy.
IN 2007, the foreign portfolio investment capital into Vietnam reached $6.2bil. Can you see any link between this and dollarization?
As we open the national economy, more and more foreign capital will enter, and if the foreign capital is overly high compared to the absorbability of the national economy, the supply of foreign currencies will be profuse, and dollarization will increase.
We have many choices of ways to deal with the problem. The Government is pursuing the principle that the central bank will continue buying foreign currencies to stabilize the value of the VND. Also, we need to take measures to control the VND supply in order stunt inflation. These steps were taken, to some extent, in 2007, and we will continue them in 2008.
Some experts have suggested that Vietnam should allow foreign investors to open foreign currency accounts to make securities transactions. If so, Vietnam can reduce dollarization, successfully control inflation, while foreign currencies in accounts at commercial banks can still produce profits for money owners. What do you think about this?
I have heard this suggestion. However, it may be contrary to the regulations stipulated in the Ordinance on Forex Management. The ordinance says that all foreign money must be transferred into Vietnam through a special account, and after that, the money must go into investments. (VNeconomy)
He said that the Government has asked the State Bank of Vietnam (SBV) to draw up a master plan on reducing dollarization. The plan needs to improve the convertibility of the VND and the value of the VND in international transactions.
Could you please tell us more about the plan?
Previously, experts once suggested that all sums of money transferred from abroad into Vietnam should be converted into VND. However, the Government and central bank decided against this after thorough consideration. Right after this suggestion was made public, the foreign currency inflow into Vietnam decreased sharply.
Therefore, measures to reverse dollarization must be flexible and not extreme, and it is clear that direct intervention or administrative orders are not the right measures. This is the most important requirement for the plan.
Second, measures must ensure that depositors and enterprises have higher confidence in the commercial bank system
Third, it is necessary to make the cost of VND transactions lower compared to US$ transactions, which will help improve the convertibility of the local currency.
Fourth, it is necessary to stabilize the economy, which will result in people having more confidence in the local currency, and get them to keep VND in their wallets.
However, I have to acknowledge that to some extent, we cannot absolutely eliminate the dollarization of the national economy.
IN 2007, the foreign portfolio investment capital into Vietnam reached $6.2bil. Can you see any link between this and dollarization?
As we open the national economy, more and more foreign capital will enter, and if the foreign capital is overly high compared to the absorbability of the national economy, the supply of foreign currencies will be profuse, and dollarization will increase.
We have many choices of ways to deal with the problem. The Government is pursuing the principle that the central bank will continue buying foreign currencies to stabilize the value of the VND. Also, we need to take measures to control the VND supply in order stunt inflation. These steps were taken, to some extent, in 2007, and we will continue them in 2008.
Some experts have suggested that Vietnam should allow foreign investors to open foreign currency accounts to make securities transactions. If so, Vietnam can reduce dollarization, successfully control inflation, while foreign currencies in accounts at commercial banks can still produce profits for money owners. What do you think about this?
I have heard this suggestion. However, it may be contrary to the regulations stipulated in the Ordinance on Forex Management. The ordinance says that all foreign money must be transferred into Vietnam through a special account, and after that, the money must go into investments. (VNeconomy)
Nexans to reap 80 million USD this year
Nexans Group in Viet Nam plans to earn US$80 million in revenue this year, up 10 per cent from last year.
The group has set up three joint ventures in the country, including Nexans Vietnam, Nexans Lioa and Nexan Telecom.
Nexans Global, which supplies cables and cable systems, committed to making Viet Nam a key investment destination in the region, said Michel Lemaire, deputy chairman of Nexans in the AsiaPacific region.
The group has set up three joint ventures in the country, including Nexans Vietnam, Nexans Lioa and Nexan Telecom.
Nexans Global, which supplies cables and cable systems, committed to making Viet Nam a key investment destination in the region, said Michel Lemaire, deputy chairman of Nexans in the AsiaPacific region.
Enterprises to require legal framework for franchise development
Vietnam's enterprises will require a strong legal framework including government legislation and supporting policies to develop franchises in the coming years, according to economists at a symposium held in HCMC late last week.
Economists at the Franchise Vietnam 2008 conference stated that franchising is a relatively new concept in Vietnam, and in order for it to develop stably, the central Government should improve the legislative sectors.
Pham Chi Lan, an economic expert, said Vietnam needs to continue to improve commercial law, intellectual property law, standards for goods and protocols for solving commercial disputes.
"If these four legislative improvements are executed, franchises will develop more stably because the risk of commercial dispute in franchising is predictable," said Lan.
According to economists, franchises have been developing in Vietnam for the past two years. However, few enterprises or trademarks were able to successfully franchise until now.
Le Cong Dinh, a lawyer from DC law firm, said most of Vietnam's 65 franchises are foreign-owned. However, after the country's inclusion into the World Trade Organization there has been a surge in franchise development.
Ly Qui Trung, chairman of the Nam An Group which owns Pho 24, said that enterprises should apply these four steps in franchising nationally and internationally: franchising demand specification, partner selection, partner examination and partner negotiation. "The enterprise's franchise development could be impeded if one of the four steps is neglected," Trung said.
The development of domestic and foreign franchises will be crucial for commercial activities, especially in the service sector. It is predicted that franchises will be fully developed in Vietnam by 2012, said Tran Anh Tuan of the FT-Pathfinder Consulting Group.
"The enterprises need more supporting policies from the government in the legislative and administrative sectors, so that they can successfully conduct franchising activities in the country," said Tuan. (SGT)
Economists at the Franchise Vietnam 2008 conference stated that franchising is a relatively new concept in Vietnam, and in order for it to develop stably, the central Government should improve the legislative sectors.
Pham Chi Lan, an economic expert, said Vietnam needs to continue to improve commercial law, intellectual property law, standards for goods and protocols for solving commercial disputes.
"If these four legislative improvements are executed, franchises will develop more stably because the risk of commercial dispute in franchising is predictable," said Lan.
According to economists, franchises have been developing in Vietnam for the past two years. However, few enterprises or trademarks were able to successfully franchise until now.
Le Cong Dinh, a lawyer from DC law firm, said most of Vietnam's 65 franchises are foreign-owned. However, after the country's inclusion into the World Trade Organization there has been a surge in franchise development.
Ly Qui Trung, chairman of the Nam An Group which owns Pho 24, said that enterprises should apply these four steps in franchising nationally and internationally: franchising demand specification, partner selection, partner examination and partner negotiation. "The enterprise's franchise development could be impeded if one of the four steps is neglected," Trung said.
The development of domestic and foreign franchises will be crucial for commercial activities, especially in the service sector. It is predicted that franchises will be fully developed in Vietnam by 2012, said Tran Anh Tuan of the FT-Pathfinder Consulting Group.
"The enterprises need more supporting policies from the government in the legislative and administrative sectors, so that they can successfully conduct franchising activities in the country," said Tuan. (SGT)
Gold prices go up again to be over VND17 million/tael
After dropping to below VND17 million/tael, the lowest level during the previous two weeks, the price of gold once again has fluctuated wildly and is currently trading at over the VND17 million/tael mark.
The domestic price of gold suddenly increased because of a dramatic rise in the world price of gold on Tuesday night, with the Federal Reserve System (FED) surprisingly cutting US$ interest rate by 0.75 percent, from 4.25 percent to 3.5 percent, with the aim of steadying the world’s biggest economy which is currently in critical condition.
The US dollar continued devaluing against the Euro. The price of gold at spot delivery in New York instantly shot up to reach over US$890/oz.
On the domestic market, SJC gold at the Sai Gon Gold, Silver and Gem Stone Company is trading at VND17.13-17.23 million per tael at present, up VND470.000/tael compared with Tuesday’s transactions. The price is applied commonly in Hanoi, Ho Chi Minh City, Da Nang, Nha Trang and Can Tho.
At 2pm on Wednesday, the price of gold at the Phu Quy Gold, Silver and Gem Stone Company in Hanoi stood at VND17.12-17.24 million per tael, up VND240,000/tael compared to the previous day.
At Bao Tin Minh Chau in Hanoi, the price of gold slightly increased but the number of people, particularly those coming to sell rather than buy gold, undertake transactions at the company remained almost the same.
The domestic price of gold suddenly increased because of a dramatic rise in the world price of gold on Tuesday night, with the Federal Reserve System (FED) surprisingly cutting US$ interest rate by 0.75 percent, from 4.25 percent to 3.5 percent, with the aim of steadying the world’s biggest economy which is currently in critical condition.
The US dollar continued devaluing against the Euro. The price of gold at spot delivery in New York instantly shot up to reach over US$890/oz.
On the domestic market, SJC gold at the Sai Gon Gold, Silver and Gem Stone Company is trading at VND17.13-17.23 million per tael at present, up VND470.000/tael compared with Tuesday’s transactions. The price is applied commonly in Hanoi, Ho Chi Minh City, Da Nang, Nha Trang and Can Tho.
At 2pm on Wednesday, the price of gold at the Phu Quy Gold, Silver and Gem Stone Company in Hanoi stood at VND17.12-17.24 million per tael, up VND240,000/tael compared to the previous day.
At Bao Tin Minh Chau in Hanoi, the price of gold slightly increased but the number of people, particularly those coming to sell rather than buy gold, undertake transactions at the company remained almost the same.
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