Dinh Vu Polyester Fibre Plant to restart production

VietNamNet Bridge – The Ministry of Transport will quickly fix shortcomings related to collecting fees at Build-Operate-Transfer (BOT) toll stations in the country. A coach stops to pay the fee at a BOT toll station.  The move came after many drivers expressed their opposition to the high fees at BOT toll stations. According to the latest news, drivers were putting small notes into bottles when they paid toll fees at the Cai Lay BOT toll station in Mekong Delta’s Tien Giang Province on Sunday afternoon, causing traffic to come to a standstill and resulting in difficulties for fee collectors. The drivers’ action was their way of voicing their disagreement with the high fee at the toll station that officially began operation one week ago. The fee is VND35,000-180,000 ($1.5-8) each time for a 12-km road. According to news released by the ministry on Monday afternoon, fees of 28 BOT toll stations in the country would be reduced in the future following the ministry’s meeting with BOT’s investors to re-check and re-adjust the current fees. The ministry also said time to pay back capital of investors of 23 other BOT toll stations would be decreased. In a related move, the ministry ordered the suspension of operations of the Tao Xuyen BOT toll station in Thanh Hoa central province from today. The toll station was set up to collect fee for a project involving construction of a section of National Highway No 1A, worth VND822 billion (US$36.1 million). The ministry said, at…... [read more]

The Vietnam Electricity Group (EVN) says Cam Pha, Hai Phong, Quang Ninh and Son Dong plants, which had broken down, now get electricity supply back online. With rain increasing in the northern regions and the southern provinces entering their rainy season, along with a lower demand for electricity than that of the first half of this month, the hydropower plants can generate more electricity, resulting in a 5-7 percent reduction in power cuts. EVN also predicts that the electricity supply will be better by the first week of July and gradually return to normal. To ensure sufficient electricity supply for production and minimise power cuts in daily activities, EVN will mobilise all power resources including those from independent producers, importers and reserves from large consumers. The Group will run all hydropower plants at full capacity, which depends on water levels and avoid suspension of operations, causing system failures. EVN has also delayed maintenance and repair schedules of the generators and turbines and asked local power companies to encourage enterprises to use Diesel fuelled generators for production. Local power companies should regularly disseminate information to raise public awareness in sharing difficulties with the power industry and support the government’s policies on energy saving and the efficient use of electricity.... [read more]

Lê Hùng Vọng The Government has approved a plan to build three special economic zones (SEZs) to spearhead the country's growth and exploit local advantages to impel growth there. The SEZs, to be built in the coastal districts of Vân Đồn (in the northern province of Quảng Ninh), Văn Phong (in the central province of Khánh Hoà) and Phú Quốc Island (in the southern province of Kiên Giang), will pilot key new economic and administrative policies before they are applied nation-wide to develop the maritime economy. They would be superior to existing economic zones - where mostly tax and lease incentives are offered - that have failed to attract strategic foreign investors with truly large projects and cutting-edge technologies. Experts said a Law on Special Economic Zones (or the Law on Special Administrative-Economic Units) needs to be enacted quickly, and administrative and economic policies in conformity with international practices promulgated, to help these SEZs compete with existing special economic zones and free trade zones around the world. The Ministry of Planning and Investment has been instructed by the Government to draft the law. The concept of special economic zones has been a familiar one for decades. The Vũng Tàu - Côn Đảo Special Economic Zone was created in 1979, but was dissolved in 1991. A policy on special economic zone construction was also added to the Constitution in 1992 and reiterated in a Resolution passed by the Party Central Committee in 1994. Việt Nam has no special economic zones though…... [read more]

There were 22,486 enterprises resuming operations during the first ten months of this year, an increase of 38.8 per cent against the same period last year, according to the latest report from the Agency for Business Registration under the Ministry of Planning and Investment. Certain sectors saw higher growth than others, such as education and training with 64.7 per cent, arts, entertainment and recreation 63.4 per cent, accommodation and food services 51.7 per cent, manufacturing 47.3 per cent, wholesale and retail trade and repair of automobiles, motorbikes and other motor vehicles 40.4 per cent, real estate 39.7 per cent, transportation and storage 38.6 per cent, professional, scientific and technical activities 37.1 per cent, finance, banking and insurance 36.4 per cent, employment services, travel, equipment rentals, and supplies 36.3 per cent, and mining and quarrying 33.7 per cent. The increasing number of enterprises resuming operations is evidence that Vietnam’s economy is recovering. The Nikkei manufacturing Purchasing Managers’ Index (PMI) climbed from 52.2 in August to 52.9 in September; a 16-month high and reflecting a healthy increase in employment and robust expansion in manufacturing output and new orders, according to HSBC's October update. Manufacturing output increased for the tenth straight month and at the highest pace for three months. “Importantly, employment grew at the fastest pace in five and a half years, as firms responded to a sustained growth in new orders,” the HSBC update wrote. “New export orders also grew at a faster pace than in August. The fact that firms…... [read more]

Private-sector bankruptcy triggers concern By Tu Giang - The Saigon Times Daily HANOI – The policy on tightening credit and reducing aggregate demand under the spirit of Resolution 11 is currently posing a serious challenge to the health of the private sector. Some 2,400 private enterprises underwent procedures for dissolution in this year’s first quarter, while 11,600 others registered for suspension of operations and tax payments, said the National Assembly (NA) Economic Committee. As such, the number of troubled businesses forced to dissolve or halt operations has risen 9% over the same period last year. The amount of enterprises that have completed the procedures of disbandment has surged 62.18% year-on-year. Meanwhile, 17,800 enterprises were newly established in the first three months with the total registered capital of over VND100 trillion, dipping 6% in business volume and 10% in capital against the same period in 2011. Nguyen Van Giau, chairman of the economic committee, expressed his concern over the Index of Industrial Production (IIP) in the first quarter of 2012, picking up only 4% year-on-year, the lowest level in as many years. “Such an index sounds an alarm that production capability is going downhill,” he noted. Furthermore, 18 out of the 32 major industrial items have seen their growth rates slow down, said the committee. The inventory index of local manufacturing and processing industries has drastically shot up. As of March-end, the index has increased 34.9% over the year-ago period. Rising input costs and labor expenses, coupled with mounting inventories and…... [read more]

By Van Nam - The Saigon Times Daily HCMC – In the year to date, up to 1,214 HCMC-based businesses with total registered capital of VND5.26 trillion have applied for closure at the city’s Department of Planning and Investment. Moreover, the number of enterprises announcing suspension of operation has amounted to 1,065 in January-June, up 50% year-on-year. Meanwhile, there have been 12,760 newly-established companies with combined registered capital of VND77 trillion in the first half of this year. The number of newly-formed businesses is up 4.6% and the amount of registered capital increases by 6.5% from last year. As for FDI approvals, the city has granted investment certificates to 178 FDI projects with total registered capital of US$248 million in the six-month period. FDI inflow into city has plummeted 83.1% from a year earlier. Given an upsurge in business suspension and dissolution, more employees have lost their jobs and claimed jobless benefits.... [read more]

Hanoi (VNA) - The Philippines on July 7 ordered the suspension of operations at two nickel ore mines in the northeast province of Zambales for environmental violations and also halted the issuance of mining permits. The two nickel mines, operated by BenguetCorp Nickel Mines Inc and Zambales Diversified Metals Corp, was complained to cause environmental degradation, said Leo Jasareno, Director of the Mines and Geosciences Bureau (MGB). The decision will be in effect until the companies comply with conditions set by the agency, he added. Meanwhile, Mining Minister Regina Lopez said there will be a ban on fresh mining activities in the country for a month while a review of all existing mines is underway. The move could curb nickel ore shipments from the Southeast Asian country and push up global prices further. Previously, the news on the Philippine government making review of all mining operations in the country lifted the price of nickel by 8 percent in two days. It hit an eight-month high of 10.410 USD a tonne. The Philippines has stopped issuing new permits to develop mines since 2012 but has allowed exploration until now. There are 40 metal mines operating in the country. President Rodrigo Duterte, who took office on June 30, has warned he would cancel mining projects causing environmental harm.-VNA... [read more]

Restructuring agriculture sector critical: conference Restructuring the agricultural sector to improve quality and promote co-ordination between farmers and firms is critical for the sustainable development of the sector amid unpredictable movements in the global market, members of a conference said yesterday. At the Viet Nam Agriculture Outlook conference held by the Institute of Policy and Strategy for Agriculture and Rural Development (IPSARD), in collaboration with the National Assembly Office, experts said that adopting agricultural technology to improve product quality would enable the agricultural sector to confront external shocks like the impacts of climate change or exchange rate policies. This requires the engagement of firms and a link with farmers to bring forth technologies in agricultural production, thereby enabling the creation of competitive products, said institute Director Do Anh Tuan. Agricultural technologies could firstly be applied in the production of coffee, rice, pepper and seafood, Tuan said. After struggling in 2015 with falling export revenues, the agricultural sector saw improvements in the first five months of this year. Still, Tuan said that the recovery would be threatened by the consequences of natural disasters and disease for the remainder of the year - obstacles the sector must prepare for and overcome to boost supplies and ensure food hygiene and safety, one of the most concerning issues today. Le Van Binh, Deputy Director of the National Assembly Office's Department of Economic Affairs, said that while new-generation free trade agreements were creating opportunities for the Vietnamese agricultural sector to expand its reach in the…... [read more]

There were more than 44,700 newly established enterprises in Vietnam with total capital of VND349.5 trillion (US$15.5 billion) in the first five months of this year. According to the Department of Business Registration, this represents a 24 per cent year-on-year increase in the number of new businesses, and a 59 per cent year-on-year increase in capital. The department said that in the January to May period, the additional registered capital was VND655.9 trillion, bringing the total to VND1 quadrillion. The average registered capital was VND7.8 billion a business, representing a year-on-year increase of 28 per cent. It added that during this period, most of the sectors saw a higher number of newly established firms than in the same period last year. The real estate sector rose 121 per cent with 1,076 firms; healthcare rose 82 per cent with 198; education and training rose 44 per cent with 993, and science, technology, consultancy, and advertising rose 37 per cent with 3,475. The property sector also saw a surge of registered capital of VND85.9 trillion or 456 per cent higher from last year. Information and communications rose 383 per cent with VND15.2 trillion; science, technology, consultancy and advertising rose 143 per cent with VND29.9 trillion; manufacturing and processing rose 135 per cent with VND49.4 trillion, while finance, banking and insurance rose 115 per cent to VND6.7 trillion during this period. The entertainment area had been the only sector which had a decrease of 26.5 per cent with 583 firms. The number of…... [read more]

The implementation of the second phase in the mammoth Thai Nguyen Iron and Steel expansion project is hanging in the balance after the Ministry of Finance disagreed with most of the incentive proposals necessary to the project’s resumption. In its Document No.4199/BTC-TCT, which replies to the Ministry of Industry and Trade’s (MoIT) proposal on an import duty exemption of about VND65.5 billion ($3 million) for materials and equipment in the project’s second phase, the Ministry of Finance (MoF) ordered that all parties must adhere to current regulations under the Law on Import and Export Duties. Essentially, this means that the tax exemption previously enjoyed by the project on equipment import duties will no longer be available. In its proposal, the MoIT said that since the developer was actively preparing to restart the project in the near future, the import duty exemption would help reduce pressure on the project’s capital resources. In respect to the tax exemption proposal of about VND133 billion ($6.1 million) imposed on the contractor, the MoF, resorting to diverse current legal documents, stated that in line with current laws foreign contractors generating revenue when implementing contracts related to the provision of products and services in Vietnam have an obligation to pay tax on such revenue. The MoF also turned down another MoIT proposal relating to the application of incentives on project loans at Vietnam Development Bank (VDB) and VietinBank. These incentives include interest rate exemptions on an estimated VND386 billion ($17.7 million) for the project’s suspension of…... [read more]

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