Hanoi targets parts supply growth

Ha Noi is developing a project to boost the parts supply industry. — VNA/VNS Photo Danh Lam Ha Noi needs more favourable policies to boost the parts supply industry, experts said Monday at a conference on developing the industry in the capital. The city plans to increase the number of parts supply firms from the current 200-250 to 900-1,000 firms by 2020. According to the Heavy Industry Department under the Ministry of Industry and Trade, the development of the parts supply industry in Viet Nam has a potentially important role in economic development but is performing below expectations with modest local procurement rates. For example, local procurement by the footwear industry is just 20-25 per cent and by the auto industry 7-10 per cent for cars with fewer than nine seats. A number of industries are still largely dependent on imported raw materials, the department said, adding that State support for the parts supply industry is limited while foreign manufacturers tend to use suppliers from their home countries. Nguyen Hoang, Chairman of the Ha Noi Support Industries Business Association, said the capital city needed policies to support existing parts supply firms and encourage new ones. Experts at the conference attributed the slow development of the industry to hesitation resulting from over- complicated procedures and less favourable policies than those enjoyed by foreign-invested firms. According to Phan Nhat Minh, general director of the Nhat Minh Company, local companies should be provided with…... [read more]

HÒA BÌNH - Prime Minister Nguyễn Xuân Phúc has urged the northern province of Hòa Bình to improve its investment environment so it can attract investors. Addressing a local investment promotion conference on Saturday, the Prime Minister said Hòa Bình enjoys many advantages, such as its location as a gateway to the capital Hà Nội, beautiful landscape, rich culture and potential in construction materials, mining, hi-quality agro-fishery processing, resorts and eco-tourism. However, most investment projects in the locality are small scale, he said, calling on investors to explore opportunities in the province, particularly in tourism. Hòa Bình officials affirmed their resolve to build a transparent business environment, and hoped to attract investment in infrastructure, hi-tech industry and agriculture, parts supply industry, health care, education, tourism and trade. In the first ten months of this year, the province licensed 39 projects, including one foreign-invested project worth US$3 million and 38 domestic projects worth nearly VNĐ4.6 trillion ($208.5 million). During a meeting with local authorities earlier the same day, PM Phúc recommended that Hòa Bình focus on organic agriculture and tourism, considering the province's natural advantages. As the rate of local poor households remains high, 24 per cent, he requested speeding up poverty reduction, stepping up the fight against drug trafficking and preventing wastefulness in the use of State assets. The leader also called for pooling public resources into infrastructure to ease pressure on the State budget. Local authorities proposed the Ministry of Defence consider launching a hydroplane service from Nội Bài…... [read more]

Viet Nam News The Government will work with automakers to turn the national automobile industry into a key economic sector, contributing to the country's economic growth and meeting the public's demand for autos, said Deputy Prime Minister Trịnh Đình Dũng. Speaking at a meeting with domestic automakers and representatives from ministries in Hà Nội last week, Dũng said the implementation of free trade agreements would be challenging for the industry, however, the opportunities would expand as the domestic market develops, along with the regional market. To reach the targets, the deputy PM emphasised the importance of remaining determined, taking bold actions and assuring unanimity between the Government and business community. It also needed to focus on development targets to take action and solve difficulties for businesses, including auto assemblers and parts suppliers. Dũng asked automakers to develop more initiatives in the industry by strengthening co-ordination among domestic businesses and international enterprises. According to the report from the Ministry of Industry and Trade, the automobile industry consists of more than 400 businesses, with most being small and medium enterprises. They have a total production capacity of about 460,000 units per year. Of which, 47 per cent are foreign-invested businesses, the remainder being domestic businesses. In the 2001-2014 period, the industry reached an average growth rate of 17 per cent annually and contributes more than US$1 billion to the State budget per year, while creating jobs for about 100,000 workers. The ministry said that locally-produced trucks and passenger vehicles with ten seats…... [read more]

HCM CITY (Biz Hub) — With the current increase in trade between ASEAN and Korea, the goal of increasing it to US$200 billion is expected to be achieved before the 2020 deadline, according to the Vietnamese Ministry of Industry and Trade. Speaking at the ASEAN-Korea Economic Partnership Forum in HCM City yesterday, Nguyen Son, deputy general director of the ministry's Inter-agency Steering Committee for International Economic Integration, said ASEAN and Korea were key partners in many sectors, including trade, investment, tourism, culture, and construction. Trade between the two sides increased from $8.2 billion in 1989 to $138 billion in 2014. The bloc surpassed the US, EU and Japan to become Korea's second largest trade partner after China, he said, adding that country was ASEAN's fifth largest partner. ASEAN is the leading investment destination for Korean firms. Last year Korea invested $5.7 billion in ASEAN member countries to rank fifth among investing countries and territories, though it was the largest in some, including Viet Nam. Jeong-in Suh, Korean Ambassador Extraordinary Plenipotentiary to ASEAN, said ASEAN was not only a market but also a production base for Korean firms. ASEAN offers opportunities but also challenges to Korean firms, he said, adding that Korean firms needed to have a long-term strategy for a market of 630 million people. Prof Bunsoon Park of Korea University said with its young population and rapid growth, ASEAN was a promising market for all investors. Since Japanese firms had begun investing in the region a long time ago,…... [read more]

Compatibility between Vietnam’s laws, TPP commitments reviewed Representatives from ministries, sectors and businesses associations as well as legal experts gathered at a conference in Hanoi on October 27 to discuss the compatibility between domestic laws and the country’s commitments under the Trans-Pacific Partnership regarding investment. Nguyen Thi Thu Trang, Director of the World Trade Organisation and Integration Centre under the Vietnam Chamber of Commerce and Industry (VCCI), remarked that among new generation free trade agreements (FTA) that Vietnam has signed, the TPP and the Vietnam-EU FTA have the greatest influence on Vietnam’s institutions and laws, including policies in investment. She said once the two deals take effect, TPP and EVFTA investment commitments, which are said to be at the highest level so far, will lead to considerable changes in investment policies in Vietnam . The VCCI also reported that Vietnam ’s legal regulations are basically compatible with international commitments. For a number of legal contents and law enforcement viewpoints that have yet to align with the commitments, it is necessary to collect ideas from ministries, sectors and trade associations in order to amend them in a way that ensures both compatibility with TPP commitments and balanced benefits for domestic and foreign investors. Trang noted that Vietnam ’s laws, including the Law on Investment and Law on Enterprises have no regulations discriminating between domestic and foreign investors, except for a difference in investment procedure. She added that domestic regulations on principles on market opening and barrier removal as well as requirements…... [read more]

Viet Nam News HCM CITY - The Cửu Long (Mekong) River Delta needs to be more innovative in production and development to grow sustainably in the context of climate change and environmental and integration challenges, a conference heard. Deputy Minister of Science and Technology Trần Văn Tùng told the Mekong Connect-CEO Forum in Cần Thơ on Wednesday that the region needs to urgently address that global warming and environmental and integration issues. It should work to change the perceptions and actions of farmers and enterprises and enhance the use of technology in production to come up with safe products meeting the demands of both local and foreign customers, he said. Economist Phạm Chi Lan said consumers globally want farm produce that meet hygiene and food safety standards. "If we don't shift to compete through quality, we cannot compete in the markets despite having various kinds of farm produce." Việt Nam's agriculture faces challenges, including a scarcity of land and water, natural disasters, failure to use technology, poor infrastructure, low labour productivity, and a lack of links between stakeholders and with parts supply industries, she said. Besides, investment in the sector, including public investment, remains low, though some businesses have entered it recently, she said. Some economic policies have created unfavourable conditions for the agricultural sector to develop, she said. To overcome the problems, Việt Nam, especially the delta, should focus on institutional reforms, enabling farmers to pool land to create medium- to large-scale farms, strengthening mechanisation in agriculture and creating…... [read more]

Workers at Co May Company in Dong Thap Province's Chau Thanh District are packaging rice. Viet Nam's agriculture faces challenges, including a scarcity of land and water, and natural disasters as consequences of climate change. — VNA/VNS Photo Vu Sinh HCM CITY (Biz Hub)— The Cuu Long (Mekong) River Delta needs to be more innovative in production and development to grow sustainably in the context of climate change and environmental and integration challenges, a conference heard. Deputy Minister of Science and Technology Tran Van Tung told the Mekong Connect-CEO Forum in Can Tho on Wednesday that the region needs to urgently address that global warming and environmental and integration issues. It should work to change the perceptions and actions of farmers and enterprises and enhance the use of technology in production to come up with safe products meeting the demands of both local and foreign customers, he said. Economist Pham Chi Lan said consumers globally want farm produce that meets hygiene and food safety standards. "If we don't shift to compete through quality, we cannot compete in the markets despite having various kinds of farm produce." Viet Nam's agriculture faces challenges, including a scarcity of land and water, natural disasters, failure to use technology, poor infrastructure, low labour productivity, and a lack of links between stakeholders and with parts supply industries, she said. Besides, investment in the sector, including public investment, remains low, though some businesses have entered it recently, she said. Some economic policies have created unfavourable conditions for…... [read more]

Vietnam Expo 2016 to be held in HCM City The 14th Vietnam Expo will be held at the Saigon Exhibition and Convention Centre in Ho Chi Minh City from November 30 to December 3. It is expected to draw the participation of businesses from more than 20 countries and territories, including Indonesia, the Republic of Korea (RoK), China, and Taiwan. According to the Ministry of Industry and Trade, with the sponsorship of Mobifone, the event provides a platform for businesses to meet, expand business and promote trade and investment. Indonesia is the country of honour at this year’s expo, sending over 60 businesses to display modern technology products in the event. The RoK’s state businesses and provincial trade organisations, such as the Bucheon Chamber of Commerce and Industry, representatives of Incheon, Suwon, Daejeon authorities, will be among those present. Nearly 100 RoK businesses will introduce their latest technologies, services and products to the expo. The event will see first time participation of hard ware tools and eco-friendly technologies. Environmental issues and solutions for the manufacturing industry will also be discussed at those booths. The organising board said through the past 13 Vietnam Expos, various agreements and projects were signed. Vietnam light industry park to be set up in Moscow Authorities of Ho Chi Minh City and Moscow are working together to establish a light industry park for Vietnamese enterprises in the Russian capital. According to the Ho Chi Minh City Trade and Promotion Centre, the park is expected to cover…... [read more]

Viet Nam News HCM CITY - Credit growth in HCM City in the first nine months this year surged 13.26 per cent to VNĐ1,400 trillion (US$62.5 billion), the highest level in four years. At a meeting yesterday with National Assembly members, the director of the State Bank of Việt Nam's HCM City branch, Tô Duy Lâm, attributed the rise to the lending interest rate reduction in recent months. Interest rates for short-term loans currently average 6.75-9 per cent per year and 8.7-9.9 per cent for medium- and long-term loans. HCM City's preferential lending programmes for the city's firms and its local people also helped boost the city's credit growth, Lâm said. According to the SBV's HCM City branch, lending programmes to five prioritised sectors - agriculture, exports, part supply industries, small- and medium-sized enterprises and hi-tech businesses - in the first nine months reached roughly VNĐ770 trillion, up 10 per cent against the end of last year. Lending through the city's programmes that helps connect banks with businesses also provided total loans of more than VNĐ178 trillion to 19,156 customers. The SBV representative said the central bank would keep interest rates low to boost economic growth. At the meeting, HCM City's Party Committee Secretary, Đinh La Thăng, urged the SBV's HCM City branch and the city-based credit institutions to examine the feasibility of credit packages for start-ups and small- and medium-sized enterprises in accordance with the city's seven prioritised programmes. The programmes include improved human resource quality, quality of economic…... [read more]

BIDV cuts lending interest rates to support businesses. — Photo dantri.com.vn HA NOI (Biz Hub) — The Bank for Investment and Development of Vietnam (BIDV) will cut lending interest rate for prioritised sectors from October 18 to support businesses. Accordingly, the rate applicable for short-term loans for the five prioritised sectors of agriculture, exports, parts supply industries, small- and medium-sized enterprises and hi-tech businesses will be reduced from 7 per cent to 6 per cent per year. The preferential rate is also applicable for startups, environmental firms and those that have good financial status and credit ties with BIDV for more than three years. Notably, BIDV is also offering a lower rate of 5.5 per cent per year for firms and households affected by the recent floods in the central provinces. Some other preferential lending packages with interest rates from 4.5 per cent to 6 per cent per year are also being offered to exporters to Russia, Myanmar, Laos, Cambodia and the Eurasian Economic Union. Last week, Vietcombank was the first bank to cut its lending interest rate in response to the Government's recent resolution. — VNS... [read more]




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