Government refuses to budge on tight aviation rules

Hanoi, July 25 (VNA) - The Ministry of Finance (MoF) is going ahead with its plan to increase environmental protection tax on petroleum from the current 1,000-4,000 VND to 3,000-8,000 VND per litre, despite objections from other ministries and the public.  In its second draft of the Law on Environmental Protection Taxes announced last week, the ministry proposed a tax hike on fuel consumption of 3,000-6,000 VND per litre for aviation fuel, 1,500-4,000 VND per litre for diesel, 300-2,000 VND per litre for kerosene, and 900-4,000 VND per kg for mazut.  If the new tax rate is applied, the price of gasoline at the pumps will rise to around 22,000 VND (roughly 1 USD) per litre from the average price at the pump of around 16,000-17,000 VND for petrol and 10,000-11,000 VND for diesel and mazut, respectively, analysts said.  The Ministry of Transport (MoT) told the Ministry of Finance (MoF) that Vietnam would apply two petroleum quality standards based on the Euro 2 and Euro 4 emission standards, suggesting that the MoF set a lower environmental protection tax for Euro 4, which cleans emissions from diesel cars, to encourage the production of more eco-friendly petroleum.  The Vietnam National Petroleum Group (Petrolimex) said the calculation of environmental protection tax on fuel should encourage E5 bio-fuel consumption.  The Vietnam Petroleum Association (VINPA) has supported the MoF’s tax proposal, though it has pointed out that the maximum tax of 8,000 VND per litre is too high.  The VINPA has suggested…... [read more]

Customers purchase petrol at a station in Hanoi (Illustrative image. Source: VNA) Hanoi (VNA) - The Ministry of Finance (MoF) is going ahead with its plan to increase environmental protection tax on petroleum from the current 1,000-4,000 VND to 3,000-8,000 VND per litre, despite objections from other ministries and the public. In its second draft of the Law on Environmental Protection Taxes announced last week, the ministry proposed a tax hike on fuel consumption of 3,000-6,000 VND per litre for aviation fuel, 1,500-4,000 VND per litre for diesel, 300-2,000 VND per litre for kerosene, and 900-4,000 VND per kg for mazut. If the new tax rate is applied, the price of gasoline at the pumps will rise to around 22,000 VND (roughly 1 USD) per litre from the average price at the pump of around 16,000-17,000 VND for petrol and 10,000-11,000 VND for diesel and mazut, respectively, analysts said. The Ministry of Transport (MoT) told the Ministry of Finance (MoF) that Vietnam would apply two petroleum quality standards based on the Euro 2 and Euro 4 emission standards, suggesting that the MoF set a lower environmental protection tax for Euro 4, which cleans emissions from diesel cars, to encourage the production of more eco-friendly petroleum. The Vietnam National Petroleum Group (Petrolimex) said the calculation of environmental protection tax on fuel should encourage E5 bio-fuel consumption. The Vietnam Petroleum Association (VINPA) has supported the MoF’s tax proposal, though it has pointed out that the maximum tax of 8,000 VND…... [read more]

Vietnam’s road authorities recently announced that cracks found in the arch of the Hai Van Tunnel do not pose a threat to vehicles. The fractures appeared due to the expansion of the tunnel’s concrete walls. The 6.2 kilometer tunnel ranks as the largest in the region and opened to traffic in June 2005 linking Da Nang City to Thua Thien Hue Province, according to the Directorate for Roads of Vietnam. The Hai Van Tunnel’s management board hired the Alpin Technik consultancy to inspect it in late 2015, the board’s director Do Van Nam told VnExpress. The German consultancy found that just 2.5 percent of the cracks in the tunnel ceiling posed a threat to vehicles traveling through the tunnel, said Nam, who also directs the tunnel’s main investor, the Deo Ca Investment Joint Stock Company. Deo Ca made repairs to the dangerous cracks and the ministry of transport appraised the company’s work, he said. The same ministry gave Deo Ca permission to blast every day since March during construction of the Hai Van 2 Tunnel. “We assure you the explosions have nothing to do with the cracks in the first tunnel,” he said. The Hai Van Tunnel is 11.9 meters wide. The pathway that will become the Hai Van 2 is currently used for maintenance and emergencies; an increase in traffic inspired the plan to expand the it to 9.7 meters by 2020.... [read more]

The Ministry of Transport has sought opinions from ministries, localities and transportation associations on its recently imposed ban on app-based taxi ride-sharing service. GrabShare service launched in Vietnam in May this year. The ministry recently sent a document to the ministries of police, justice, finance, industry and trade, information and communications; authorities of Hanoi, HCM City, Danang, Quang Ninh and Khanh Hoa and the Vietnam auto transport association and Hanoi and HCM City taxi associations.  In the document, the Ministry of Transport admitted that earlier the ministry requested Grab to stop its ride-sharing service called GrabShare. However, now, the ministry needed to gather the opinion after receiving Grab’s reports on advantages of the GrabShare. Grab has asked for the ministry’s permission for the firm to continue the service. The Ministry of Transport noted that the ministry wants to get the opinion about Grab’s proposal and also needs recommendations about fines for the violation in this service. Both Grab and Uber launched GrabShare and UberPool respectively in May this year. The services allow drivers to add additional passengers to their journey in addition to the person who makes the original booking. The service can help save customers around 30% compared to the original booking. But traditional taxi companies strongly oppose the service, saying that it is illegal and unfair competition. In June this year, the Ministry of Transport requested the ban on the ride-sharing service, explaining that under the ministry’s Circular 63, transport firms are only permitted to sign one contract…... [read more]

Vietnam’s road authorities recently announced that cracks found in the arch of the Hai Van Tunnel do not pose a threat to vehicles. The fractures appeared due to the expansion of the tunnel’s concrete walls. Road authorities inspect cracks in the Hai Van Tunnel. Photo by VnExpress/Xuan Hoa The 6.2 kilometer tunnel ranks as the largest in the region and opened to traffic in June 2005 linking Da Nang City to Thua Thien Hue Province, according to the Directorate for Roads of Vietnam. The Hai Van Tunnel’s management board hired the Alpin Technik consultancy to inspect it in late 2015, the board’s director Do Van Nam told VnExpress. The German consultancy found that just 2.5 percent of the cracks in the tunnel ceiling posed a threat to vehicles traveling through the tunnel, said Nam, who also directs the tunnel’s main investor, the Deo Ca Investment Joint Stock Company. Deo Ca made repairs to the dangerous cracks and the ministry of transport appraised the company’s work, he said. Work begins on the Hai Van 2 Tunnel. Photo by VnExpress/Xuan Hoa The same ministry gave Deo Ca permission to blast every day since March during construction of the Hai Van 2 Tunnel. “We assure you the explosions have nothing to do with the cracks in the first tunnel,” he said. The Hai Van Tunnel is 11.9 meters wide. The pathway that will become the Hai Van 2 is currently used for maintenance and emergencies; an increase in traffic inspired the plan…... [read more]

Despite a slowdown dating from the second half of 2016, the pace of the merger-and-acquisition market is expected to pick up in the months to come with many potential deals ahead. Bich Thuy reports. Banking will continue to be among the sectors most appealing to foreign investors for M&A, Photo: Le Toan The Japan-invested Daiwa-SSI Fund is on the way to acquire a 20 per cent stake in Hanoi-based CVI Cosmetic & Pharmaceutical Co. for an undisclosed sum. “We are working on necessary procedures to complete the acquisition by the end of July. The Japanese investment will enable us to develop a factory in the Hoa Lac Hi-Tech Park,” Phan Van Hieu, chairman of CVI, told VIR. Daiwa-SSI’s bid is among the new potential deals for the second half of 2017, while many others are being negotiated. At last week’s press conference on the M&A Vietnam Forum 2017 organised by Vietnam Investment Review and AVM Vietnam, experts said  pharma and healthcare will be among sectors that hold the biggest appeal for mergers and acquisitions (M&A) in 2017 and 2018, driven by the increasing population and growing middle class. “Increasingly deep global integration, through the signing of free trade agreements and the establishment of the ASEAN Economic Community, has contributed to making Vietnam more attractive to international groups and M&A is an effective investment channel,” said Tran Thanh Tam, director of KPMG’s Markets Group. …... [read more]

The Cat Linh-Ha Dong metro line which was planned to enter trial operation in October this year is facing a high risk of being failing to meet the schedule because of a delayed release of funds. Cat Linh-Ha Dong metro project Almost all of the 13-km project’s work has been finished, but some items such as fences, road surface and some equipment have not yet been completed, affecting the project’s pace. The equipment installation has been slated to be carried by the end of this month for the project’s trial operation in October before the official run in the second quarter of 2018. However, since May this year, the project has been implemented at a very slow pace due to financial constraints. The first of 13 trains imported from China for the route were transported to Vietnam in February. But since then no more trains have been handed over to Vietnam despite the planned time between June and July this year. The project’s EPC contractor, China Railway Sixth Group Co., Ltd, explained that the sluggish construction has been blamed for the slow capital disbursement from the Chinese Eximbank. In May 2017, Vietnam signed an agreement with China Eximbank to get an additional loan of USD250.62 million for Cat Linh-Ha Dong metro project. After the signing, the two sides had to complete some legal procedures for loans to be disbursed. The Ministry of Transport has urged the Ministry of Finance and the Ministry of Justice to work the Chinese bank to…... [read more]

The Ministry of Transport has asked seven cities and provinces to halt the operation of double-decker buses, the first of their kind that began their trial runs early this month. Local and international tourists get on the double-decker bus in Hanoi The ministry will announce a new plan for the buses after it receives guidelines from Prime Minister Nguyen Xuan Phuc. Last December, the PM agreed in principle to start a pilot project of operating double-decker buses in Hanoi, Ho Chi Minh City, Da Nang, Quang Nam, Thua Thien-Hue, Lam Dong and Kien Giang. [Da Nang to debut open-top double decker buses for tourists] The buses can accommodate up to 45 passengers, and would take them to the airport and various tourist spots. As scheduled, about 10 buses were to be put into operation in July. The trial would last for five years. Based on this plan, the ministry submitted documents to relevant ministries and sectors so as to run these buses. However, in late March, the ministry announced a draft decree on the pilot plan of carrying people in passenger buses to boost tourism in these cities and provinces. The decree received many opinions from concerned ministries and the local authorities of these localities. To avoid overlapping the operation of public means of transport for tourists, and ensure the traffic flow in these localities, the ministry has now decided to halt the operation of double-decker buses until it receives guidelines from the Government. VNA... [read more]

Local and international tourists get on the double-decker bus in Hanoi (Photo: VNA)     Hanoi (VNA) - The Ministry of Transport has asked seven cities and provinces to halt the operation of double-decker buses, the first of their kind that began their trial runs early this month. [Double-decker tourist bus starts trial run in capital] The ministry will announce a new plan for the buses after it receives guidelines from Prime Minister Nguyen Xuan Phuc. Last December, the PM agreed in principle to start a pilot project of operating double-decker buses in Hanoi, Ho Chi Minh City, Da Nang, Quang Nam, Thua Thien-Hue, Lam Dong and Kien Giang. [Da Nang to debut open-top double decker buses for tourists] The buses can accommodate up to 45 passengers, and would take them to the airport and various tourist spots. As scheduled, about 10 buses were to be put into operation in July. The trial would last for five years. Based on this plan, the ministry submitted documents to relevant ministries and sectors so as to run these buses. However, in late March, the ministry announced a draft decree on the pilot plan of carrying people in passenger buses to boost tourism in these cities and provinces. The decree received many opinions from concerned ministries and the local authorities of these localities. To avoid overlapping the operation of public means of transport for tourists, and ensure the traffic flow in these localities, the ministry…... [read more]

Customers purchase petrol at a station on Tran Quang Khai Street, Ha Noi. - VNS Photo Thai Ha The Ministry of Finance (MoF) is going ahead with its plan to increase environmental protection tax on petroleum from the current VND1,000-4,000 to VND3,000-8,000 per litre, despite objections from other ministries and the public. In its second draft of the Law on Environmental Protection Taxes announced last week, the ministry proposed a tax hike on fuel consumption of VND3,000-6,000 per litre for aviation fuel, VND1,500-4,000 per litre for diesel, VND300-2,000 per litre for kerosene, and VND900-4,000 per kg for mazut. If the new tax rate is applied, the price of gasoline at the pumps will rise to around VND22,000 (roughly US$1) per litre from the average price at the pump of around VND16,000 to VND17,000 for petrol and VND10,000 to VND11,000 for diesel and mazut, respectively, analysts said. The Ministry of Transport (MoT) told the Ministry of Finance (MoF) that Viet Nam would apply two petroleum quality standards based on the Euro 2 and Euro 4 emission standards, suggesting that the MoF set a lower environmental protection tax for Euro 4, which cleans emissions from diesel cars, to encourage the production of more eco-friendly petroleum. The Viet Nam National Petroleum Group (Petrolimex) said the calculation of environmental protection tax on fuel should encourage E5 bio-fuel consumption. The Viet Nam Petroleum Association (VINPA) has supported the MoF’s tax proposal, though it has pointed out…... [read more]




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