Vietnam, Japan Jointly Building Wage Calculation Mechanism

Household appliances produced at LG Electronics Viet Nam’s plant in northern Hai Phong Province. Foreign-invested firms will be subjected to regular and sudden examinations. — VNA/VNS Photo Lam Khanh Firms operating in Viet Nam with foreign direct investment (FDI) will be subjected to regular and sudden examinations by appropriate Vietnamese authorities of their financial assets, according to the recently issued Decision 1381/QĐ-BTC by the Ministry of Finance (MoF). The decision regulates joint inspections of FDI businesses, regarding asset values of land and real estate, machinery and other tangible assets, as well as intangible corporate assets (i.e. licensing, lease, franchise agreements or employment contracts). This is considered a step up from the usual treatment of regulated annual examinations and notifications from Vietnamese authorities towards FDI firms. This is intended to expose and stop perceived malpractice by FDI firms, State agencies may conduct regular or sudden examinations and oversight of the implementation of FDI projects by foreign investors, covering the legal compliance of FDI enterprises, their commitments to the Vietnamese government, and the firms’ actual implementation and achievements. Decision 1381 states that annual examinations should take place in October, while the Agency of Corporate Finance under the MoF will join forces with the MoF’s Inspectorate to compose next year’s inspection plan, which will then be submitted to the MoF and the Ministry of Planning and Investment (MPI) before November 30 of the same year. Vietnamese authorities will now also be able to examine the…... [read more]

HSBC: ASEAN enterprises continues strong investment in VietnamT Thu Shoppers are seen inside a wholesale store of Metro Cash & Carry Vietnam which Thailand’s TCC Group has acquired and renamed as MM Mega Market - PHOTO: QUOC HUNG HCMC – Enterprises from other ASEAN countries have invested massively in Vietnam over the last three years and the trend is expected to continue in at least five more years, said Pham Hong Hai, chief executive officer of HSBC Vietnam. Speaking to the media just ahead of the ASEAN anniversary celebration which will be held in the Philippines next Tuesday, Hai said investors in ASEAN consider Vietnam not only a consumption market but also a production base. For the last three years, HSBC Vietnam has held road shows in some ASEAN nations to call for investment in Vietnam. Particularly, Thai companies claimed that Vietnam is the top priority in their investment plans. There will be massive investments from ASEAN firms in Vietnam for at least the next five years, Hai said, and many of them are now waiting for opportunities from the equitization of many Vietnamese state-own firms. This investment trend is helped by Vietnam’s political and macroeconomic stability, low-cost labor and government incentives. Besides, Vietnam is right next to China, so ASEAN firms can get supplies from this country easily. Considering Vietnam a consumption market, companies from Thailand have invested heavily in the domestic retail market and production of consumer goods, said Winfield K Wong, head of wholesale banking of HSBC Vietnam.…... [read more]

The Ministry of Planning and Investment (MPI) on August 2 held its second biannual discussion of the Vietnam-Japan Joint Initiative Phase VI, as well as future trade and investment opportunities between the two nations. Nagai Katsuro of the Japanese Embassy to Vietnam stressed that in recent years, co-operation between the two countries has been extremely close. The Joint Initiative Phase VI that ends this year is divided into main seven issues that Japan wishes to solve and implement together with Vietnam, so that the latter can improve its business and investment environment in the near future, said Nagai. The initiative focuses on labour, salary, logistics, transportation, support for small- and medium-sized enterprises, restrictive rules applicable to foreign investors in the Investment Law and the Enterprise Law, and pharmaceutical distribution. One issue raised by Japan at the meeting was labour and wages. Commenting on this, Nguyen Tien Dang, head of the Salary Department under the Ministry of Labour, Invalids and Social Affairs (MoLISA), said the current method of calculating base salary is not transparent, and that basic data and survey methods to calculate base living expenses for workers are yet to be completed, hence the lack of results. Dang also said that the growth of the Consumer Price Index and the Gross Domestic Product are not in sync with the salary growth rates, which cause problems for foreign direct investors in the country. To address the confusion, the Vietnamese and Japanese sides will conduct additional discussions, making sure that foreign firms…... [read more]

Nagai Katsuro of the Japanese Embassy to Vietnam stressed that in recent years, co-operation between the two countries has been extremely close. The Joint Initiative Phase VI that ends this year is divided into main seven issues that Japan wishes to solve and implement together with Vietnam, so that the latter can improve its business and investment environment in the near future, said Nagai. The initiative focuses on labour, salary, logistics, transportation, support for small- and medium-sized enterprises, restrictive rules applicable to foreign investors in the Investment Law and the Enterprise Law, and pharmaceutical distribution. One issue raised by Japan at the meeting was labour and wages. Commenting on this, Nguyen Tien Dang, head of the Salary Department under the Ministry of Labour, Invalids and Social Affairs (MoLISA), said the current method of calculating base salary is not transparent, and that basic data and survey methods to calculate base living expenses for workers are yet to be completed, hence the lack of results. Dang also said that the growth of the Consumer Price Index and the Gross Domestic Product are not in sync with the salary growth rates, which cause problems for foreign direct investors in the country. To address the confusion, the Vietnamese and Japanese sides will conduct additional discussions, making sure that foreign firms in Vietnam do not have to increase their workers’ salaries repeatedly to fend off competitors trying to poach them. Speaking at the meeting, Do Nhat Hoang, director of the MPI’s Foreign…... [read more]

The Ministry of Planning and Investment (MPI) on Wednesday held its second biannual discussion of the Việt Nam-Japan Joint Initiative Phase VI, as well as future trade and investment opportunities between the two nations. Production chain at the Japanese-owned Yamato Industries at the Quế Võ Industrial Zone in the northern province of Bắc Ninh. - VNA/VNS Photo Danh Lam Nagai Katsuro of the Japanese Embassy to Việt Nam stressed that in recent years, co-operation between the two countries has been extremely close. The Joint Initiative Phase VI that ends this year is divided into main seven issues that Japan wishes to solve and implement together with Việt Nam, so that the latter can improve its business and investment environment in the near future, said Nagai. The initiative focuses on labour, salary, logistics, transportation, support for small- and medium-sized enterprises, restrictive rules applicable to foreign investors in the Investment Law and the Enterprise Law, and pharmaceutical distribution. One issue raised by Japan at the meeting was labour and wages. Commenting on this, Nguyễn Tiến Đăng, head of the Salary Department under the Ministry of Labour, Invalids and Social Affairs (MoLISA), said the current method of calculating base salary is not transparent, and that basic data and survey methods to calculate base living expenses for workers are yet to be completed, hence the lack of results. Đăng also said that the growth of the Consumer Price Index and the…... [read more]

A group of three Japanese businesses have signed a Memorandum of Understanding (MoU) with a Vietnamese partner to invest in a high-tech agriculture project in the northern province of Bac Ninh. Chairman Nguyen Thu Quynh in the meeting with Daisuke Ogiwara, executive director of Ogiwara At an August 1 meeting with Nguyen Tu Quynh, Chairman of the Bac Ninh People's Committee, Ogiwara, Raycean, and Daimasa Engineering said that they are seeking for business opportunities in high-tech agriculture in the province. Ogiwara, which specialises in growing mushroom on corn cores, now has the biggest enokitake market share in Japan. Raycean provides consultancy services and support for Japanese investors in Vietnam, while Daimasa Engineering specialises in solar energy and biogas production as well as solid waste treatment. After a fact-finding trip in the province, the Japanese enterprises decided to cooperate with Lucavi in producing mushroom, melon, and export smoked wild duck to Japan. Quynh asked the Department of Agriculture and Rural Development to develop the concentrated corn cultivation area and sign MOUs and long-term cooperation agreements with Japanese firms. Regarding the export of smoked wild duck to Japan, the chairman asked Lucavi to build a detailed plan and then submit it to the people's committee for approval soon. Bac Ninh has so far attracted more than 1,000 foreign firms, 80 of which are Japanese. Together with investing in industrial manufacturing, Japanese firms have invested…... [read more]

Currently, Vietnam is not yet familiar with the international rules of play, due to its weak management capacity, human resources and industrial skills. The country has suffered high inflation and coped with the global economic slowdown. Furthermore, natural disasters have also hit the country, making it hard to maintain sustainable economic growth. Despite many disadvantages the national economy stood firm thanks to its high export turnover. The consumer price index fell remarkably, while import surplus also decreased in the last month of the year. State-owned corporations and economic groups played a key role in implementing the Government’s urgent measures to curb inflation and balance supply and demand, thus maintaining economic growth and stabilising the domestic market. Tightening monetary policy is considered an effective measure to combat inflation and manage the macro economy, thus removing obstacles for the national economy. Vietnam attracted 1,171 new foreign direct investment (FDI) projects with a total registered capital of more than US$60.2 billion in 2008, tripling last year’s figure, according to the Foreign Investment Agency under the Ministry of Planning and Investment. This has demonstrated that Vietnam was still an attractive destination for foreign investors. However, there were some shortcomings in monitoring the macro economy, especially in terms of forecasting work. Vietnam has not yet fully abolished the habits of a State-subsidy economy. This has caused slow progress in implementing investment projects and production activities. Vietnam was overly hasty in building a modern industrial country and did not pay proper attention to agriculture development –…... [read more]

Viet Nam News HÀ NỘI - Deputy Minister of Foreign Affairs Hà Kim Ngọc called for governmental co-operation and active citizen roles in researching and creating conditions for partnerships with Canada in three fields: development co-operation, education-training, and trade and investment. He made the statement at a discussion titled "Meet in Canada" jointly hosted by the Vietnamese Ministry of Foreign Affairs, the Canadian Embassy in Việt Nam and Hà Nội's People's Committee in Hà Nội yesterday. Nearly 200 representatives of ministries, sectors, localities, APEC business communities, Canadian enterprises and non-governmental organisations in Việt Nam joined the meeting. "The relationship between Việt Nam and Canada stands in front of a historic opportunity," Deputy Minister Ngọc said. "Việt Nam attaches significant importance to promoting partnership with Canada. The brightest point in the two countries' relationship is trade and investment collaboration," he added. Việt Nam is Canada's largest trade partner in ASEAN region. Bilateral trade co-operation reached US$4.6 billion in 2015, almost six times higher than the 2010 figure. In the first nine months of last year, trade reached $3.4 billion. The two nations aim to gain $10 billion in the next ten years. According to Đặng Xuân Quang, deputy head of Foreign Investment Agency under the Ministry of Planning and Investment, in 40 years of co-operation, Canadian investment into Việt Nam has reached $5.1 billion, with a focus on industry, medicine and real estate. He believes Canadian businesses have advantages in investment in Việt Nam, as the two countries have the firm…... [read more]

At a joint business forum in Ho Chi Minh City on June 13-14, Vu Tien Loc, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), said Vietnamese and Indonesian businesses involved in the seafood processing sector should work closer together in supply activities. Indonesian businesses can also invest in rubber production for support industry in Vietnam, Loc added. He cited tourism industry as another promising sector as more than 74,000 Indonesian visitors came to Vietnam last year. By the end of last year, PT Semen bought 70 percent of shares from Vietnam’s Thang Long Cement Company and PT Madiri Bank opened a branch office the country. Last April PT Nikko Securities spent US$10 million buying a major of share equal to 20 percent of Hoa Binh Construction & Real Estate Corporation’s chartered capital. On June 13, PT Telin signed a memorandum of understanding (MoU) on strategic cooperation with CMC, one of the leading technology groups in Vietnam. Le Phuoc Vu, Director General of Hoa Sen Group, said at its recent annual general meeting the group decided to invest in a project in Indonesia. The Hoa Binh Corporation is arranging for 20 engineers to work under some construction contracts in Indonesia, while Acecook Vietnam is keen to export instant noodles to the country. A representative from Indonesian authority said most of food items imported into the country are tax-free. According to the Foreign Investment Agency (FIA) Vietnam has seven mineral exploration, oil and gas, and communications projects operating in Indonesia…... [read more]

According to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment (MPI), as of June 2015, India has had 101 valid projects totalling approximately US$400 million. Indian investors have invested in 13 out of 21 Vietnam’s economic sectors focussing on the processing and manufacturing industries, mineral exploration, retail and wholesale. The oil and gas sector takes the lead in attracting foreign investment projects. The food, fruit and vegetable project of Viet Hung Food Industry Co, Ltd valued at US$47.6 million is the biggest one run by India in HCM City. More appropriate measures should be taken to lure more Indian investment in advantageous fields such as information technology and mineral exploration to produce environmentally friendly products as a contribution to boosting the nation’s economic development.... [read more]




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