Minister urges Japan to increase investment in VN

For the August 21-24 visit to Japan, the Vietnamese delegation led by Minister of Finance Dinh Tien Dung will include a number of heavyweight corporates hoping to find Japanese partners to either participate in state divestment or establish long-term presence in Vietnam. Bao Viet Holdings (BVH), FPT JSC, Vietjet Aviation JSC, Vietnam Dairy Products JSC (Vinamilk), Saigon Beer-Alcohol-Beverage Corporation (Sabeco), State Capital Investment Corporation, and Novaland Investment Group Corporation, among others, are the companies represented in the investment promotion delegation to Japan on August 21-24. The delegation, led by Minister of Finance Dinh Tien Dung, aims to appeal to Japanese investors with their stable operating platform and aspiration to expand. Vietnamese businesses looking for expansion opportunities With Sumitomo Life Insurance Company (Japan) as its strategic partner holding 18 per cent capital, as well as large foreign shareholders like Deutsche Bank AG, Target Value Fund, and CitiGroup Global Market Ltd., among others, BVH’s representative is expected to speak at the Conference on Investment Promotion in Vietnam in Japan. BVH is also one of the top companies in Vietnam in terms of capitalisation on Vietnam’s stock exchanges (over VND39 trillion—$1.7 billion on August 16), and has maintained stable business performance for several years. In 2012, Sumitomo Life became BVH’s strategic partner following HSBC’s divestment. Since then, Sumitomo Life has provided much-needed assistance for Bao Viet in developing products, diversifying distribution channels, implementing information technology in insurance…... [read more]

On July 4, 2017, Finance Minister Dinh Tien Dung signed Decision 1247/QD-BTC to launch the Action Programme for implementation of the Prime Minister’s Directive 26/CT-TTg dated June 6, 2017 and Resolution 35/NQ-CP on business development support in 2017, with a vision to 2020. Central solutions to be firmly carried out in the coming time will be administrative reform, business facilitation, business rights guarantee, and equal access to resources and business opportunities for enterprises. In tax and customs fields, the ministry will review, study and propose amendments and supplements to current regulations on tax and customs administration to match with those provided by other bodies to reduce the time and expense for enterprises. It will study to prevent tax loss while applying simple accounting regimes appropriate to small enterprises, especially those transformed from business households. It will try to make sure that specialised inspection is exercised on less than 20 per cent of export and import shipments, similar to that imposed by major trade partners of Vietnam. Implementation results will be submitted to the Prime Minister in the third quarter of 2017. The ministry will draft a decree on electronic invoices and records for basic implementation in 2018 for the whole economy; study and coordinate with Provincial/Municipal People's Committees to pilot electronic invoices and records with tax codes of tax authorities and connect information with retail outlets, with pilot to be first launched in Hanoi and Ho Chi Minh City in 2018. It will apply electronic VAT…... [read more]

Indirect capital flowing out of Vietnam Hong Phuc By Hong Phuc - The Saigon Times Daily HCMC – Foreign investors are increasingly withdrawing their indirect investment capital out of Vietnam, with the sum divested from bonds in September alone amounting to US$5.1 million compared to US$7.5 million recorded in August. Foreign indirect investments are forecast to be withdrawn more in the coming time, said Glenn B.Maguire, chief economist for Asia Pacific at ANZ, at the conference on Vietnam’s economy held in HCMC on Wednesday by the bank. According to Glenn B.Maguire, US$17.4 million of foreign indirect investment was withdrawn from Vietnam on September 1-25, raising the total withdrawn amount to US$181.9 million in the past 18 weeks. Besides, share investment withdrawn totaled US$12.3 million in September compared to US$8.3 million in the previous month. “We forecast that foreign indirect investments will continue to be withdrawn in the coming months,” said Glenn B.Maguire. Hot capital flows are moving out of Asia as risks have been reevaluated globally. There will be certain adjustments happening to assets and especially attitudes and the appetite towards risks of investors are forecast to change in Asian countries where the import volumes are huge and the solvency levels are low, according to Glenn B.Maguire. Vietnam’s foreign exchange reserves, though increasing strongly lately, are rather modest. Therefore, it has to face the pressure of speculative trading and interest rates are easily impacted. However, the trade balance is improving. Factors for indirect investments to flow into Vietnam have turned…... [read more]

In order to meet urgent demands of the international situation and domestic economy, the 7th National Party Congress adopted guidelines on multilateralisation and diversification of Vietnam’s foreign relations, marking the start of its international integration process. The 8th National Party Congress in 1996 decided to “accelerate Vietnam’s regional and global economic integration process”. Resolutions of the 8th Party Central Committee’s 4th plenum held on Dec. 29, 1997 said, “Vietnam should take the initiative to actively infiltrate and extend its international markets”, and stressed, “We must prepare human resources, a legal foundation, and particularly competitive products to integrate in regional and global markets.”The 9th National Party Congress affirmed, “Vietnam will take the initiative to integrate in the international and regional economies in the spirit of making the most of its internal resources, making international cooperation more effective, ensuring independence, sovereignty and the socialist orientation, defending national interests, national security, maintaining cultural identities and protecting the environment”. To realising the Party’s socio-economic development strategy for the 2001-2010 period, which says “building an independent and sovereign economy should coexist with active integration into the international economy”, Vietnam is restructuring the national economy, completing the law and policy system, and making domestic businesses more competitive to prepare for international economic integration. In 2002, the Party Political Bureau issued Resolution 07 on international economic integration, emphasising consistent guiding principles for the process. To fulfil the Resolution, the Prime Minister and his Cabinet issued an action plan and assigned specific tasks to the ministries, branches and…... [read more]

It is not by chance that US President George W. Bush called Vietnam a young tiger in Asia when he visited Vietnam last November. A New Year has begun and it is time for us to look back on Vietnam’s major achievements in 2006 – a year of bumper harvest figuratively and literally. Generally speaking, we have sown seeds, coped with erratic weather and reaped the best crops in more than 20 years. 2006 was a successful year for Vietnam as the country was admitted to the World Trade Organisation as the 150th member, marking its full integration into the world economy. The US Congress’ approval of permanent normal trade relations with Vietnam and the country’s successful organisation of the 14th APEC Economic Leaders’ Meeting helped elevate Vietnam’s position and prestige in the international arena. For the first time, Vietnam attracted US$10.2 billion worth of foreign direct investment in 2006, a record figure since 1987. Foreign donors at the recent Consultative Group Meeting pledged US$4.45 billion in official development assistance capital for the country – another record figure for a developing country like Vietnam. The country’s export value in 2006 also hit a record high of nearly US$40 billion. Notably, both crude oil and garment exports surpassed the US$5 billion mark. Proudly, Vietnam’s industrial products and traditional handicrafts are now available in almost all regional and global markets. In 2006, the establishment of the Vietnam Coal and Mining Industry Group, the Vietnam Garment and Textile Group, the Vietnam Post and…... [read more]

In the Government Office’s document No 997 issued on February 27, Prime Minister Nguyen Tan Dung affirmed that it is not necessary to apply the urgent measures proposed by the State Bank of Vietnam to control the foreign exchange of indirect foreign investment at a meeting held on February 12 by the National Financial and Monetary Policy Advisory Council. However, Mr Dung asked the Ministry of Finance, the State Securities Commission, the State Bank of Vietnam, the Ministry of Public Security and the Government Inspectorate to launch supervisory activities aimed at ensuring organisations and individuals’ adherence to State regulations. In addition, he highlighted the importance of strictly handling law breakers, including withdrawing licenses and banning units or individuals from participating in the securities market. Mr Dung requested the Ministry of Finance, the State Securities Commission and relevant agencies to rapidly issue documents on guiding the implementation of the Securities Law, the Foreign Exchange Ordinance and other related documents. The National Financial and Monetary Policy Advisory Council should propose to the Government effective measures to ensure the securities market will develop rapidly and sustainably while avoiding socio-economic instability. In fact, the development of the Vietnamese securities market is positive in two aspects: First, Vietnam has diversified forms of attracting foreign direct investment (FDI), official development assistance (ODA) funding and inflows of indirect investment capital. Second, attracting capital through the securities market is an important channel as all countries which want to develop have to expand this channel. The development of the…... [read more]

At a reception for a delegation of foreign investors, scholars and representatives of financial institutions gathering in Hanoi on March 15, President Luong praised foreign investors' active contributions to Vietnam's socio-economic development in the renovation process through their investment activities in the country. The leader stressed that Vietnam has always tried its best to draw foreign investment, creating a favourable political, social and legal environment in order to ensure the country's investment environment meets the demand for international economic integration. Mr Luong said Vietnam is now focusing on three major areas: promotion of the mobilisation of indirect investment through credit funds, the securities market and insurance; attraction of foreign investment into the service and high-technology sectors; and investment in human resources development as Vietnam has a large population of young people. The State leader hoped foreign investors would work out long-term investment strategies in Vietnam, including capital supply, technology transfer and sharing experiences with Vietnamese partners in economic management and human resource development. Representatives of foreign investors and international financial institutions congratulated Vietnam on its impressive economic achievements over the recent past and praised the country's investment environment. Representatives of Euromoney Institutional Investor in Hong Kong, HSBC bank for Asia-Pacific, ANZ Bank, and New York-based GLS Capital Management, expressed their interest in Vietnam's preferential policies on land, property, and capital development to attract foreign investors. They also expressed their confidence in opportunities for business and investment in Vietnam when the country joins the World Trade Organisation, and pledge to invest…... [read more]

On the sidelines of the second session of the 12th National Assembly in Hanoi on October 26, Prime Minister Nguyen Tan Dung had talks with the media about measures to govern the economy in the coming period. Reporters: The current soaring inflation is attributed to inaccurate forecasts. What will the government do to deal with it? Prime Minister Dung: In the managing the economy, every government wants to have a high economic growth rate and low inflation rate. However, the current high inflation rate is due to both subjective and objective reasons. Subjectively, Vietnam’s economy is under the influence of the world economy, particularly with the price of materials and the exchange rates of foreign currencies. Objectively, we did not anticipate the change in the world market. For example, the foreign currency reserve has never been high as before. This results from strong foreign direct and indirect investment. When foreign firms invest in Vietnam, it means a large amount of foreign currencies come into the economy. If there is an imbalance between foreign currencies and VN dong, it will affect the country’s export. Therefore, the Government had to use VN dong to buy the US dollar. In the past six months, we bought nearly US$9 billion. The problem is we still have not retrieved our VN dong yet. The government will look seriously into the issue. Reporters: Many National Assembly deputies have raised concerns about the possible negative impacts on the economy to be caused by large foreign investments. What…... [read more]

Mr Hung who has just concluded official visits to the Sultanate of Oman, the State of Qatar and the Kingdom of Bahrain talked about the results of the tour in a interview granted to the media. Following are excerpts from the interview. Reporter: Could you brief us on the outcome of your recent tour to the three Persian Gulf countries? Mr Hung: This was an official high-level visit to the three Persian Gulf countries by the Vietnamese delegation. The delegation was accompanied by leaders of the Oil and Gas Group, the Vietnam Chamber of Commerce and Industry (VCCI), the State Capital Investment Corporation (SCIC) and several businesses who have established relations with their counterparts in the gulf. During the tour, the delegation held dozens of talks and working sessions and signed cooperative documents with Government officials and leaders of leading business groups in the three countries. In Oman, I met with the acting Prime Minister and other leaders from the oil and gas, economics, trade, foreign affairs and tourism sectors, and witnessed the signing of cooperative agreements between the two countries’ Chambers of Commerce and Industry, and also between the Vietnam Oil and Gas Group and the Oman National Oil and Gas Company. During talks with the Prime Minister-cum-Foreign Minister of Qatar and President of the Qatar Investment Authority, we both agreed to open embassies in each other’s countries at the earliest possible time to foster bilateral cooperation. Notably, the PM welcomed Vietnam’s proposal for the establishment of a Vietnam…... [read more]

Minister of Finance Vu Van Ninh was the first to be grilled over at the current session of the NA Standing Committee in Hanoi on March 28. Minister Ninh attributed the price rises to the national economy’s low development level, poor competitiveness, natural disasters, epidemics and residents’ high spending during the lunar New Year Festival. The national economy attracted a high influx of foreign direct and indirect investment capital, official development assistance (ODA) sources, remittances by overseas Vietnamese and tourism services. However, it failed to keep pace with the increase in capital sources, prompting market prices to go up. In addition, the abnormal development of the stock, gold and property markets also affected the consumer price index (CPI), driving inflation up. Mr Ninh acknowledged that it is hard to fulfil the target of keeping the inflation rate below the national economic growth rate set by the National Assembly. According to him, the most important thing now is to control inflation, stabilise the macro-economy, maintain socio-political stability and keep the economic growth in line with market trends. He proposed no adjustment to the State-fixed prices of commodities until June. Deputy Ho Quoc Dung from south-central Binh Dinh province questioned Mr Ninh over subjective causes behind high inflation. Mr Ninh said that the Government had adopted major solutions for curbing inflation and that there were weaknesses in forecasting the global market trends and devising financial and monetary policies. However, he affirmed that there has been “nothing wrong” in managing the interest rate…... [read more]

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