Deputy PM welcomes Kirin’s stronger investment in Vietnam

Hanoi, July 28 (VNA) - Local private enterprises have improved their productions and operations, but half of them still must take operational and production loans, according to the Vietnam Chamber of Commerce and Industry (VCCI).  VCCI research surveys show that Vietnamese private enterprises had developed robustly since 2000, and they had registered to operate mainly in sectors of commerce, services and construction.  Few of them had joined the production and industry sectors, and local private enterprise contribution to the domestic economy remained limited, said the VCCI.  According to the survey roughly 50 percent of local private enterprises have taken loans. Large firms commonly took big loans. They have used the loans mainly to stabilise operations, but not to invest in updating equipment and technology.  At 2 percent, the portion of enterprises using high technology is very low compared to other countries in the region. Small and medium-sized private enterprises have invested only 0.2-0.3 percent of their revenue to technology reform.  Small and medium sized enterprises (SMEs) and private firms have paid attention to quality of products and strategies on products because of high market demand.  However, SME production has continued a low technology rate and has been mainly based on labour advantages.  Meanwhile, SME managers lack skills, management knowledge and reform experience, leading to a failure to implement regulations on tax, financial management, labour, product quality and intellectual property.  Dau Anh Tuan, Head of VCCI Legal Department, said according to…... [read more]

Illustrative photo (Photo: VNA)     Hanoi (VNA) - Local private enterprises have improved their productions and operations, but half of them still must take operational and production loans, according to the Vietnam Chamber of Commerce and Industry (VCCI). VCCI research surveys show that Vietnamese private enterprises had developed robustly since 2000, and they had registered to operate mainly in sectors of commerce, services and construction. Few of them had joined the production and industry sectors, and local private enterprise contribution to the domestic economy remained limited, said the VCCI. According to the survey roughly 50 percent of local private enterprises have taken loans. Large firms commonly took big loans. They have used the loans mainly to stabilise operations, but not to invest in updating equipment and technology. At 2 percent, the portion of enterprises using high technology is very low compared to other countries in the region. Small and medium-sized private enterprises have invested only 0.2-0.3 percent of their revenue to technology reform. Small and medium sized enterprises (SMEs) and private firms have paid attention to quality of products and strategies on products because of high market demand. However, SME production has continued a low technology rate and has been mainly based on labour advantages. Meanwhile, SME managers lack skills, management knowledge and reform experience, leading to a failure to implement regulations on tax, financial management, labour, product quality and intellectual property. Dau Anh Tuan, Head of VCCI Legal Department,…... [read more]

The 2014 PCI will see many positive changes, according to a VCCI member. The highlight of the report on the 2014 PCI is a narrowing gap between the top and the bottom provinces. While some provinces like Danang and Binh Duong remain the top ranking, other provinces also move up their slots. This is attributed to local governments’ efforts to improve the quality of management and business environment. However, some top ten provinces seem not to pay more effort to make breakthrough, even their dynamic is reducing. The 2014 PCI, the 10th edition of the report, represents the opinions of 10,000 domestic businesses and 1,500 foreign invested enterprises regarding the local economic governance and business environment in Vietnam’s 63 cities and provinces. The 2014 PCI report also discusses the opportunities and challenges involved in Vietnam’s entry into the Trans-Pacific Partnership Agreement (TPP) and presents timely survey findings about business-labor relations in the country’s foreign invested enterprises. Over the past decade, the PCI ranking has become a motive for localities to move ahead and enhance their quality of management, helping to improve business environment and facilitate the business community’s performance.... [read more]

Vietnam Customs said the explosion in international trade is forcing it to replace its outdated automated systems to better harness technology to facilitate the application of IT to trade. Improved technology can be beneficial in improving electronic customs supervision, issuing electronic licenses, preparing certificates of origin and coordinating with functional agencies to carry out the ASEAN one-door mechanism. In 2014, Vietnam Customs successfully used IT applications to better manage import duty calculations and border gate trade, which helped reduce by two thirds the time to complete procedures at border crossings. According to a World Bank (WB) report, the average time to complete import procedures at border crossings is still excessively high at 21 days, much higher than Singapore, Malaysia and Thailand. Vu Ngoc Anh, Vietnam Customs deputy general director said this is an important step forward in providing Vietnam Customs with "state-of-the-art technology essential to expediting movement of commerce" through every international airport, trade zone and potential border crossing. "We can now begin the process of bringing 21st century business practices to Vietnam’s borders," he added. "Customs modernization will also dramatically enhance our ability to intercept contraband." Anh said Vietnam Customs wants to move to a more automated "knowledge-based system" and away from "laborious keyboard entry" currently used to catalogue the serial number and country of origin of all products coming through Vietnam border checkpoints. "It's a very complicated system," he said. "We're looking to use new commercially available products that have the ability to create intelligent systems to manage…... [read more]

Present at the meeting were representatives from the Ministry of Planning and Investment, relevant ministries and agencies of the Vietnam-Japan Joint Initiative Committee under the Japan Federation of Economic Organisations (Nippon Keidanren), as well as the Japanese Business Association in Vietnam. During the conference, participants reviewed the results of implementing the first phase of the Vietnam-Japan joint initiative aimed at improving the business environment and increasing the competitive capacity of Vietnam. At the end of the meeting, Minister of Planning and Investment Vo Hong Phuc and Ambassador Nirio Hattori signed a report on the action plan for the second phase of the Vietnam-Japan joint initiative, scheduled to be implement until 2007. The Vietnam-Japan joint initiative was launched during former Prime Minister Phan Van Khai’s visit to Japan in April 2003, with a view to improving the economic infrastructure and direct investment environment in Vietnam. The Japanese Ambassador highly valued the successful results of the first phase and emphasised the importance of implementing the second phase of the initiative which he said will help attract more foreign investors, especially those from Japan. The Vietnam-Japan joint initiative will also help Vietnam raise its competitive capacity when it joins the World Trade Organisation (WTO), he said.... [read more]

Minister Phuc presented a Government report on socio-economic development tasks and State budget spending in 2007 and tasks for 2008 at the current session of the National Assembly Standing Committee in Hanoi on October 13. He said that thanks to its socio-political stability, the country’s position has been elevated around the globe, while its improved business environment has attracted a high influx of domestic and foreign investment. As a result, GDP per capita has increased to US$835, and the poverty rate has dropped to 14.7 percent. However, he said that shortcomings in monetary management have driven up the consumer price index (CPI), raising public concern. To rein in the galloping CPI, the Government has taken several measures, including slashing import tariffs on essential commodities, tightening the management of input materials for the national economy and keeping a close watch on production and trading activities. The Government’s measures have brought about initial results, prompting the CPI to fall slightly in August and September. The Minister also pointed to the fact that wastefulness and corruption are still big issues, administrative reform has not lived up to the Government’s expectations, and traffic and work-related accidents have increased considerably. Regarding the tasks for the last quarter of 2007, Mr Phuc said that more effort must be made to overcome the consequences of storm Lekima, reduce import surplus, accelerate administrative reform and the fight against corruption and wastefulness, and reduce traffic accidents in order to achieve the set yearly GDP growth rate of 8.5 percent.... [read more]

The new decree provides detailed guidelines on procedures for registration, registering business households and organisations in charge of business registrations. Registering a business includes tax registration according to the Enterprise Law. The certificate of registration can also act as a certificate of business and tax registration. Deputy planning and investment minister Nguyen Van Trung said that the most remarkable point was a mechanism for enterprise registration via the internet. “Now applicants can save time by completing registration procedures online through the National Enterprises Registration Information Gate,” Trung said. He added that the decree also made significant changes to the business registration process in merging business and tax registrations. Currently, enterprises have to register a business with the bodies that grant licences such as local planning and investment authorities and register for tax codes with the tax authorities. “Decree 43 will lessen the administrative burden for businesses because each enterprise will have a code and a registration certificate, which also serves as a tax code. Consequently, in case of any corporate changes, enterprises will now have to carry out only one procedure to change their registration certificate in stead of the previous two procedures,” Trung told the Vietnam Investment Review (VIR). Le Hong Hai, deputy general director of the General Department of Taxation, said that the new decree was a big step in Vietnam’s programme business registration reforms. This is because the duration for issuing a new certificate for enterprises will be shortened to five working days. Nilgun Tas, a representative…... [read more]

In 2010, Vietnam has been successful in transitioning from a low-income country to a middle-income country by fullly tapping domestic advantages and improving business environment for both local and international investors. However, Vietnam still faces challenges in terms of infrastructure, which has a negative impact on businesses’ operations. Hank Tomlinson, President of the American Chamber of Commerce in Vietnam said that there were still shortcomings to the development of Vietnam’s infrastructure, especially in building roads linking to provinces and cities, bridges as well as strategic roads near seaports. This has negative impact on direct foreign investment in the country as these limitations are the reason why many US investors do not want to invest in Vietnam. One specific limitation is high transportation costs. According to businesses, transportation costs in Vietnam now accounts for a higher proportion of GDP than in other nations in the region. For example, these costs make up 13 percent of GDP in Indonesia and Malaysia, 18 percent in China while it is 25 percent in Vietnam. Maersk Line Vietnam & Cambodia General Director Peter Smidt-Nielsen said that there are many reasons why transportation costs in Vietnam are higher. However, it is obvious that poor infrastructure is an important factor including traffic jams, lack of transparency and forecast, and backward means of transportation which often do not meet the regulations on weight limit. To solve these issues, Vice President of the Australian Chamber of Commerce, Brian O’Reilly said that Vietnam should pay attention to the Public-Private Partnership…... [read more]

According to the recent World Economic Forum, Vietnam ranks 75th in the Global Competitiveness Report 2012, a slump of ten places compared to last year’s report. Kwakwa attributes Vietnam’s position plunge to issues arising from macro-economic performance, incomplete infrastructure, lack of highly skilled workers, and inefficient management. Noteworthy is that the WEF used 2011 statistics to evaluate Vietnam’s economy and the situation has changed for the better since early this year. Kwakwa highlights the success of the Vietnamese Government’s policies aimed at stabilizing the macroeconomy, curbing inflation, both of which promote social security and maintain growth. She believes these factors will play an active role in elevating Vietnam’s rankings in 2013. However, the WB Country Director warns that Vietnam needs to increase the competitiveness of its business climate if it wants to achieve its goal given global fierce competitions. The WEF report points out that Vietnam has not effectively operated public investment programmes, nor successfully controlled operations of state-owned enterprises (SOEs). To deal with the issues, Kwakwa suggests that Vietnam ensure an equal playing field exists between SOEs and private enterprises, promote transparency in financial management, and improve the selection of public investments. She encourages the country to speed up administrative reform by simplifying bureaucracy and applying modern technology in business and state management while settling bad debts in the banking sector.... [read more]

It’s predicted that Vietnam will face more challenges during the remaining months but the outcome might be a boost for businesses and foreign investors. Vietnam’s economic achievements over the past six months were attributed to the increase in three areas, of which industry and construction posted an impressive growth rate of 9%, service 5%, and agriculture, forestry, and seafood nearly 2.4%. The index of industrial production posted a strong rise at 9.6%, much higher than the last two years. The development of businesses recorded active signs with 45,400 newly-registered enterprises, contributing more than 60% to GDP. Vu Tien Loc, chairman of the Vietnam Chamber of Commerce and Industry, said although businesses are still facing many difficulties, their confidence has gradually improved. Many of them are planning to expand production and trading with performance being relatively positive. "I think such confidence will continue to be fostered by the government’s effort to speed up the renovation and open its market as part of free trade agreements that Vietnam has signed or will do in the future," Loc added. By the end of June, the average consumer price index (CPI) increased 0.86% against the same period last year. The rise is said to be rather low compared to the recent decade, helping the government control inflation, reform the way to set price for public products and services in line with market mechanism, and reduce input costs for companies. In spite of positive performances in the early 2015, the Vietnam economy is being posed…... [read more]




Links Topics : http://news.c10mt.com/2017/08/deputy-pm-welcomes-kirins-stronger.html