Vietnam’s stocks advance on both bourses

At the second debate on regional minimum wage for next year, held by the National Salary Council in Hanoi yesterday, the Vietnam General Confederation of Labour (VGCL), which represented employees, and the Vietnam Chamber of Commerce and Industry (VCCI), which represented employers, failed to reach an agreement. The VGCL called for an 8 percent increase from the current minimum wage while the VCCI proposed 5 percent. Regional minimum wage rates are the base rates used for any arrangement between enterprises and employees on salary. The wage rates are paid to employees who work under normal working conditions, meet monthly working hour standards and complete their obligations for agreed work duties. Vietnam currently has four regions ranked according to the socio-economic development level of each region. Region I includes the large districts and towns of Hanoi, Hai Phong, HCM City and Dong Nai, as well as Binh Duong and Ba Ria-Vung Tau Since January 1, 2017, the regional minimum wage rate applicable for employees working for enterprises in Region I is VND3,750,000 per month, in Region II is VND3,320,000 per month, in Region III is VND2,900,000 per month and in Region IV is VND2,580,000 per month. The rates are 7.3 percent higher than in 2016. VCCI Vice Chairman Hoang Quang Phong said the 5 percent increase proposal was made based on assessing more than 30 associations representing employers. Increasing the regional minimum wage would lead to higher production costs for businesses, he said. Experts said the current minimum wage met…... [read more]

He was reporting at a meeting on socioeconomic situation presided over by chairman of the city People’s Committee Nguyen Thanh Phong. The city’s exports strongly increased to Singapore, Malaysia, India, Spain, Thailand and China but slowed down to the Philippines, Indonesia and Italy. Major import items comprise equipment and materials for local production. Of these, electronic products and comportments increased nearly 36 percent, metals rocketed 40 percent and plastic materials hiked 18 percent. Total retail sales of goods and services reached VND527,310 billion ($23.21 billion). Leaders of the Department of Tourism said that the city received 3.2 million international visitors in the first seven months, a year on year increase of 16 percent. Especially, the city reported a raise of tourists from Asia and North Asia during off peak season this year. Still the increase in HCMC was lower than other provinces and cities in the northern and central regions where received a huge number of Chinese visitors. Revenue increases Director of the Department of Finance Phan Thi Thang said that the city’s budget revenue hit VND201,950 billion in the first seven months, accounting for 58 percent of estimates and surging over 13.6 percent over the same period last year. During the seven months, the city spent VND25,590 billion ($889 billion) including VND8,570 billion on development investment and over VND16.2 trillion on regular spending. At present, investors are focusing on disbursing capital for works and projects, said Ms. Thang. Ms. Thang reported some highly rising revenue sources such as personal…... [read more]

VietNamNet Bridge - The competition in the sweets market is getting fierce as market growth has slowed down. As a pioneer in bringing chocolate-coated pies into Vietnam, and the best known brand with 60 percent of market share, Orion Vina ignited the great chocopie war. With a localization strategy, Orion Vina has created a product suited to the Vietnamese taste. In 2003, Pham Nguyen Food Processing and Confectionary spent $2 million to import a 10 ton/day production line from South Korea and began making similar chocolate-coated pies, called Choco P&N and Phaner Pie.  Empowered with the $9.3 million investment from Japanese Mizuho ASEAN Investment LP, Pham Nguyen has geared up for the chocopie competition. It has opened a third factory in Hung Yen province after factories in Long An and HCMC. As a pioneer in bringing chocolate-coated pies into Vietnam, and the best known brand with 60 percent of market share, Orion Vina ignited the great chocopie war. While Orion targets children and those who buy Chocopie for gifts, Pham Nguyen sells pies targets women and children. The weight of Pham Nguyen’s pie is smaller than that of the rival (18 gr vs 30 gr), while the manufacturer tries to minimize the costs for packaging design. Bibica, when developing its strategic products, also focuses on pies. In April 2017, Bibica marketed Mini Pie Orienko to compete with the big rivals. The 18 gr pie, with no preservatives and more chocolate, has a competitive price of VND30,000 per 264 gr box. …... [read more]

By teaming up with MP Logistics Corporation (MP Logistics), South Korean enterprise Samsung not only demonstrated its interest in the Vietnamese logistics sector, but its participation also heats up the market. Manufacturing activities in Samsung Display in the northern province of Bac Ninh RELATED CONTENTS: PM values Samsung’s investment in VN Samsung Sourcing Fair 2017: more opportunities for local firms Park refuses order to testify in Samsung heirs trial From electronics to logistics On July 14, 2017, Samsung SDS Co., Ltd., a subsidiary of Samsung Group, established a joint venture with MP Logistics with the aim of expanding its logistics business in Vietnam. The cooperation with MP Logistics is expected to help Samsung’s information and technology (IT) and logistics services access to the Vietnamese cargo transportation industry. “The logistics market in Vietnam has an annual growth rate of about 15-20 per cent due to the promotion of free trade agreements with South Korea, China, Japan, and the European Union (EU),” a leader of Samsung SDS said. Samsung SDS expected that this cooperation would expand its business in the Vietnamese IT-based logistics market, as well as other transportation services for consumer goods and food. “This new joint venture will give us the motivation to expand our business in the Vietnamese logistics market,” Kim Hyung-tae, vice chairman of…... [read more]

US-based casino operator and hospitality business Hard Rock International Inc. has confirmed its interest in developing a casino at Laguna Lang Co integrated resort complex in the central province of Thua Thien-Hue, according to newswire GGRAsia. The Laguna Lang Co resort complex Daniel Cheng, Hard Rock’s senior vice president for casino business development in Asia, told GGRAsia that Hard Rock has finished all site studies and completed all project financing. All the company is waiting for is the Vietnamese government to issue the casino license after which Hard Rock can put the spade to the ground immediately. Earlier in July 2014, Singaporean resort developer Banyan Tree Holdings sought the provincial leaders’ approval to build a casino in the complex, claiming the step would play an important role in the development of Laguna Lang Co Resort, the company’s first project in Vietnam. However, provincial leaders answered that the Ministry of Finance (MoF) was in the middle of drafting the nation’s first legal framework for casino businesses, bidding the developer to wait until the National Assembly ratified the decree. On March 14, 2016 during the joint work session of the Thua Thien-Hue People’s Committee and MoF, Thua Thien-Hue laid out the plans for Laguna Lang Co Resort’s casino to Minister of Finance Dinh Tien Dung. Dung said he supported Banyan Tree Holdings’ casino proposal because he believed it would benefit both the province and the developer. …... [read more]

NDO – Prime Minister Nguyen Xuan Phuc held the first working session with the Economic Advisory Group, at the Government Office on July 29, which was recently established on the same day. The group includes 15 members who are experts and professors from both home and abroad and is led by Dr. Vu Viet Ngoan, former Chairman of the National Financial Supervisory Commission. They will also provide the PM with suggestions and revisions to current policies and regulations and the necessary measures to cope with new domestic and global developments. Dr. Vu Viet Ngoan said that to achieve an economic growth rate above 7%, Vietnam needs to enhance investment efficiency and labour productivity, in addition to improving supply to increase the potential output of the economy and not relying solely on the use of State investment and the extraction of natural resources. Ngoan recommended that the Government takes into account two basic contents including the removal of difficulties for enterprises and the improvements to the economic sector of the State. Dr. Tran Du Lich said that Vietnam should boost aggregate demand in the short term to promote economic growth and remove any bottlenecks in the institution in the long term. PM Phuc was delighted with the opinions provided by the advisory group, expressing his hope that the advisory group will be an important channel for the Government in the development of policies and measures related to the economy. He emphasised that the Government will…... [read more]

NDO –The national consumer price index (CPI) in July rose by 0.11% compared to the previous month, the lowest increase in the July CPI over the past five years, according to the General Statistics Office (GSO). Eight out of 11 groups of goods and services posted price increases, including housing and construction materials up 0.03%; apparel, hats and footwear up 0.04%; beverages and cigarettes up 0.04%; education up 0.05%; household equipment and appliances up 0.09%; medicine and medical services up 0.36%; restaurants and catering services up 0.54%; and goods and other services up 0.73%. Meanwhile, three out of the 11 groups of goods and services suffered price decreases, namely traffic down 1.52%; post and telecommunications down 0.06%; and culture, entertainment and tourism down 0.03%. The increase in CPI for July was mainly driven by the higher prices of food, including the increase in the price of pork, following six-months of declining prices, and the price hike of vegetables due to the impact of rainstorms and floods. Another reason was the higher prices of housing and construction materials which was due to the tightened management over sand mining in localities, resulting in a higher price for sand. In addition, the entrance exams to the 10th grade and the national high school graduation exams held in July helped to boost the demand for dining out and beverages, contributing to the CPI increase. In the meantime, the July CPI was subdued due to the abundant supply of food…... [read more]

NDO –Vietnam has seen 72,953 newly-established enterprises in the first seven months of this year with a total registered capital of VND690.74 trillion (US$30.39 billion), an annual increase of 13.8% in terms of the number of enterprises and 39% in terms of registered capital. According to the Department for Business Registration Management, during the January-July period, 21,383 enterprises have registered to expand their investment capital with a total supplemented capital of VND979.73 trillion (US$43.11 billion). The average registered capital per enterprise is reported at VND9.5 billion (US$418,000), up 22.2% over the same period last year. The Department for Business Registration Management said that the number of newly-established enterprises has increased in almost every sector compared to the corresponding period last year, including 2,706 new enterprises in the real estate sector, up 68%; 812 new enterprises in the financial, banking and insurance sector, up 31%; and 385 new enterprises in the health sector, up 31%. Only the shipping and warehouse sector witnessed a 6% decrease in the number of newly-established enterprises. Furthermore, 17,549 enterprises have resumed operations in the first seven months of the year, an annual increase of 5%. However, 15,866 enterprises registered for the temporary suspension of business activities, up 16% over the same period last year, while 27,408 others ceased operations or are waiting to be dissolved, up 21% over the same period last year. A few sectors reported a higher number of workers compared to the same period last year including…... [read more]

Vietnam no longer has the biggest trade deficit with China but South Korea, after imports from the latter soared in the first half of this year.  Customs data showed that Vietnam's imports from South Korea in the first half of 2017 increased by 51 percent from the same period last year, while exports only rose by 27 percent. That translates to $22.5 billion in imports and $6.5 billion in exports, leaving a deficit of $16 billion, compared to one with China at $13 billion. Vietnam’s trade deficit with South Korea has been rising steadily from less than $7 billion in 2010. The number reached $20.6 billion last year. Do Thang Hai, Deputy Minister of Industry and Trade, said large companies from South Korea have made use of the zero import tariff effective from the beginning of this year under the free trade deal between the two countries. Hai said most of the imports were machines and materials serving production in Vietnam, including at Samsung Electronics, which is Vietnam's dominant exporter. Trade officials said the deficit trend is going to continue as Vietnamese exports are mostly cheap agricultural products. Meanwhile, South Korea's increasing investment in Vietnam is driving imports of parts and machinery, said Nguyen Duc Thanh, director of Vietnam Institute for Economic and Policy Research. South Korea registered $4.95 billion of direct investment in Vietnam during the first six months, or a quarter of all pledges, according to figures from the Ministry of Planning and Investment. Thanh said the deficit…... [read more]

Vietnam no longer has the biggest trade deficit with China but South Korea, after imports from the latter soared in the first half of this year.  Customs data showed that Vietnam's imports from South Korea in the first half of 2017 increased by 51 percent from the same period last year, while exports only rose by 27 percent. That translates to $22.5 billion in imports and $6.5 billion in exports, leaving a deficit of $16 billion, compared to one with China at $13 billion. Vietnam’s trade deficit with South Korea has been rising steadily from less than $7 billion in 2010. The number reached $20.6 billion last year. Do Thang Hai, Deputy Minister of Industry and Trade, said large companies from South Korea have made use of the zero import tariff effective from the beginning of this year under the free trade deal between the two countries. Hai said most of the imports were machines and materials serving production in Vietnam, including at Samsung Electronics, which is Vietnam's dominant exporter. Trade officials said the deficit trend is going to continue as Vietnamese exports are mostly cheap agricultural products. Meanwhile, South Korea's increasing investment in Vietnam is driving imports of parts and machinery, said Nguyen Duc Thanh, director of Vietnam Institute for Economic and Policy Research. South Korea registered $4.95 billion of direct investment in Vietnam during the first six months, or a quarter of all pledges, according to figures from the Ministry of Planning and Investment. Thanh said the deficit…... [read more]




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