15:57' 04/05/2007 (GMT+7)
VietNamNet Bridge – Under WTO commitments, as of January 1, 2007, foreign invested enterprises (FIEs) can import goods for domestic consumption. However, excluding distributors like Metro, Parkson and Big C, FIEs still cannot enjoy the right fully.
Metro, Big C, and Parkson all were licenced to import goods to sell domestically prior to November 7, 2006, when Vietnam joined the WTO.Under WTO commitments, right after becoming the 150th full-fledged member of the WTO, FIEs in Vietnam would enjoy the right to import goods for domestic sale. On January 1, 2009, the same policies and interests will be applied to both FIEs and domestic enterprises, with no discriminatory treatment.In fact, until now, FIEs in Vietnam have had the right to import goods, but just for enterprises’ equipment or sale on a small scale, while they do not have the right to distribute domestically.Prior to the traditional Tet, the Government released a decree stipulating the right of FIEs to import goods for domestic distribution as per WTO commitments. However, the decree said that FIEs were not allowed to distribute the imported goods directly – they had to sell to domestic wholesalers.However, the decree still has not been brought into life, as the circular guiding the implementation of the decree is still under compilation.The Ministry of Trade is nearly finished completing the circular on the right for direct import, which is expected to be promulgated in the third quarter. Under the draft circular, FIEs can set up one shop for selling imported goods in Vietnam, or wholesale to one domestic trader, while they cannot set up a network of many local distributors.The HCM City Planning and Investment Department said that many FIEs had been applying for direct import. However, the Ministry of Planning and Investment earlier this week asked local departments to delay licencing direct imports as it still needed further guidelines.“We hope to see transparent regulations to know if we have the right to import goods directly. If we get the right to import goods later than our rivals, we will lose competitiveness,” deputy director of an electronics company in HCM City said.Meanwhile, domestic enterprises and local authorities are worried that FIEs will crush domestic rivals if they have the right to import directly.“Though domestic enterprises are trying to increase capital, make further investment and cooperate with each other, they are still inferior to foreign enterprises in financial capability and experience,” said Nguyen Thi Hong, Deputy Mayor of HCM City.HCM City leaders have also asked the Ministry of Trade to carefully consider granting the right for direct import to FIEs. Meanwhile, Head of the Domestic Market Policy Department under the Ministry of Trade Hoang Tho Xuan said that Vietnam would grant the right for direct import to FIEs, but many strict requirements would accompany it.“How wide the door will open will depend on the programming and concrete conditions of Vietnam,” Mr Xuan said.(Source: VNE)
National library receives gift books on WTO
16:38' 05/05/2007 (GMT+7)
VietNamNet Bridge – The National Library on May 4 received a number of books on WTO worth EUR500,000 as part of the multilateral trade assistance project funded by the European Commission (EC).The books, including 500 titles, were aimed to help people to improve their knowledge on trade laws and commercial policies in Vietnam. They are within a technical assistant project.The books are now on displayed at the library following themes: golbalisation-trade and economic policies; WTO agreements-WTO influences on business; international trade laws-settlement of litigation and competitions; trade and development-Doha and other negotiation regions; services-intellectual property-investment; and commercial labour-impacts of international trade.
(Source: VNA)
USD deposit interest rates up, VND’s down
14:02' 05/05/2007 (GMT+7)
VietNamNet Bridge – While US$ deposit interest rates have been raised by commercial banks, VND deposit interest rates have been lowered due to superfluous VND available capital.Banks want more US$ deposits to provide more US$ loans
The Vietnam Technological and Commercial Bank (Techcombank) has recently announced it would raise US$ deposit interest rates by 0.05%-0.2% per annum. The biggest increase in interest rates has been applied to demand deposits, from 1.3% per annum to 1.5% per annum.Moreover, two- and three-month term deposits will also see big increases of 0.1% and 0.15% per annum to 4.15% and 4.3% per annum, respectively.Prior to that, Asia Commercial Bank (ACB) announced it would increase interest rates on US$ one-month to nine-month term deposits by 0.05%-0.15%. This is the second time this year ACB has raised its deposit interest rates, which aims to mobilise more US$ capital.Meanwhile, Vietcombank HCM City Branch has launched a programme to issue US$ deposit certificates with attractive interest rates, lasting to June 11.For deposits of less than $15,000, the interest rates are 4.4% for three-month term deposits and 4.7% for six-month. Meanwhile, the interest rates will be 4.45% (three-month term) and 4.75% (six-month term) for deposits of more than $15,000.According to Dang Bao Khanh, Director of the Payment and International Banking Centre under Techcombank, banks offer higher interest rates in an effort to mobilise more capital to meet the increased demand for US$ loans thanks to bustling import-export activities.While the demand for US$ loans is increasing, commercial banks cannot find capital in the inter-bank market. Therefore, they have to raise the interest rates on deposits in order to raise enough capital to loan.VND deposit interest rates down due to superfluous capitalWhile US$ deposit interest rates keep rising, VND deposit interest rates are forecast to see decreases in some days due to the excess of VND capital.Members of the Vietnam Banking Association (VNBA) have reached an agreement on lowering the interest rates on VND deposits, under which the ceiling levels have been set up for different terms of depositsThe ceiling interest rates to be applied at state owned banks will be 0.6%/month for three-month term deposits, 0.63% per annum for six-month (- 0.02%), 0.65%/month for nine-month, and 0.69% for 12 month-term deposits (- 0.01%).According to VNBA, the lowering of VND deposit interest rates proves to be unavoidable as the available capital has exceeded the demand for borrowing.(Source: Tien phong)
Vietnam-sourced salted eggs do not contain sudan: MARD
VietNamNet Bridge – The Vietnam Veterinary Agency under the Ministry of Agriculture and Rural Development (MARD) has announced it could not find sudan in salted egg samples in Vietnam.
Vietnam to produce containers
VietNamNet Bridge – The first container production factory in Vietnam, which is being built by the Hai Duong Shipbuilding Industry Complex in Hai Duong province, will put out the first container in two years.
Securities companies cannot get enough space on trading floor
VietNamNet Bridge – Securities companies complain that the new requirement on the surface area of 150 sq m for trading floors has put big difficulties for them.
VND1bil bonus for anyone finding Chinsu with carcinogenic substance
VietNamNet Bridge – Vitecfood, the producer of Chinsu soybean sauce on May 9 committed to pay VND1 billion (US$62,500) for anybody who can find out a Chinsu bottle that doesn’t meet the Health Ministry’s standard on 3-MCPD, a carcinogenic substance.
City approves underground car park project
VietNamNet Bridge – A Ministry of Defense-owned enterprise has got approval from HCMC to develop a car park under Bach Tung Diep Park in the commercial district.
Commercial vehicles drive auto sales up 83 percent in April
VietNamNet Bridge - Seventeen automakers in Vietnam sold a combined 4,682 vehicles last month, up 83 percent year-on-year, driven by strong sales of commercial vehicles, according to industry data reported on May 9.
BUSINESS IN BRIEF 10/5
VIB Bank signs deal with PetroVietnam; Vietcombank to finance shipping container plant; POSCO to build $1.12 billion steel factory
Vietnam’s bourses lose steam
VietNamNet Bridge - Both the VN-Index and HaSTC-Index's enjoyed only slight gains by the end of morning trading on May 9 after two days of brisk trading.
Strong incentives pledged for investors in Vung Ang
VietNamNet Bridge – North central Ha Tinh Province's authorities early this week issued a decision pledging financial incentives for investors in Vung Ang Industrial Park, especially for large-scale investors in terms of taxes and land rent.
VN Index rebounds 92 points in a week
VietNamNet Bridge - The VN Index leapt over 92 points this week to close at 1039.63. Experts attributed the jump to wiser investors prompted by recent corrections that brought the overvalued market “closer to reality”.
State reveals strategic infrastructure wishlist
VietNamNet Bridge - Vietnam has unveiled a wishlist of 17 strategic infrastructure projects that it wants to complete by 2020, by drawing on ODA and FDI.
BUSINESS IN BRIEF 13/5
Auto plant gears up in Thanh Hoa; Techcombank racks up $45 million; New airport highway to be laid down south; Saigonbank to update banking system; Saigon Securities Inc expands network; New securities web sites launched
Firms polish USD1bil steel plan
VietNamNet Bridge - Taiwanese firms Sun Steel Corporation and E-United Group are joining hands to build a mammoth $1 billion stainless steel-making factory in the southern province of Dong Nai.
Vietnam aims to make 50% of clothing materials
VietNamNet Bridge - Vietnamese textile and garment enterprises have boosted investment and cooperation with foreign groups to make materials and gradually increase the proportion of materials produced locally to 50% by 2010.
Unilever opens huge distribution centre
VietNamNet Bridge - Unilever Vietnam opened the country’s largest goods distribution centre on May 11 in the southern province of Binh Duong.
Nation to issue 1bil USD in bonds to international market
VietNamNet Bridge – In an effort to keep pace with nationwide infrastructure development, the Government has approved a US$1bil bond issuance to the international market for 2007.
Rising foreign ownership in banks a positive for the industry
VietNamNet Bridge – The Vietnamese Government's decision to increase limits on foreign ownership in commercial banks is a necessary, appropriate step in the roadmap to open the country's financial markets, experts have said.
Global construction firms to descend on Vietnam
VietNamNet Bridge – More than 200 construction materials and equipment producers from 15 countries worldwide are bound for an construction exhibition, Con-Build Viet Nam, that will run in Hanoi from November 20-23.
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