Finance Ministry wants 1% tax on transfer price in M&A deals

VietNamNet Bridge - The Central Group from Thailand has poured money into supermarkets, home appliance distribution chains, hotels, fashion shops, export and wholesale, and is developing 160 shops/supermarkets. And it is now harboring a plan to build a 200-500 room hotel in HCMC. Joining the market in July 2011, Central Group has become familiar to many Vietnamese. The conglomerate is present in six business fields and has been continuously investing in the country.  In late 2014, Central Group opened two Robins fashion centers in Hanoi and HCMC, where the products of famous brands are displayed, though Thai products are dominant.  In January 2015, Power Buy, a subsidiary of Central Group, bought a 49 percent stake of NKT, the company which owned Nguyen Kim home appliance distribution chain, with 21 supermarkets throughout the country. Later, the Thai giant surprised the public when taking over Lan Chi, a retail chain with supermarkets mostly located in rural areas, which did not catch the attention of foreign investors. The takeover showed Central Group’s ambition of reaching every corner of the Vietnamese market. The conglomerate stated it will spend 17 billion baht, or $511.7 million, to expand its operation in Vietnam in the next five years. In April 2016, Central Group stirred up the public when defeating TCC group (Thailand), Lotte (South Korea), Aeon (Japan), Masan and Saigon Co-op (Vietnam) in competition to buy Big C Vietnam from the French owner. After taking over Big C Vietnam, the Thai giant began restructuring the management of…... [read more]

Many widely popular products in Vietnam seem unfamiliar to Thai consumers as they have only been imported and sold in small quantity by intermediate businesses and merchants. To settle the issue, an event named ‘Vietnamese Product Week’ has recently been organized in Bangkok, with the participation of over 40 brands from Vietnam. At the stall of Vinamit, a Vietnamese agricultural product company that has operated since 1988, Jiratha, a Thai buyer, was having a taste of the firm’s dried fruit samples and could not stop complimenting their flavor and crunchiness. Jiratha recounted trying the food during her previous trip to Phuket. As she was impressed with the quality, the Thai consumer has been looking for the product, to no avail, after she returned to Bangkok because it is not widely sold in the city. According to Vu Thanh Truc, international business manager of Vinamit, this is the first time the company has introduced its goods to the Thai market. Its merchandise was previously imported and sold by local merchants at airports and railway stations in Thailand, Truc elaborated. “We are confident that our advantages in taste and quality can compete with similar merchandise in Thailand,” the representative asserted. Like Vinamit, other Vietnamese businesses said they had been shying away from entering the Thai market due to the lack of knowledge of local consumers’ preferences and distribution systems. Bui Thi Ngoc Tuyen from the import-export department of Bich Chi Food Company said…... [read more]

Thai conglomerate Central Group will invest an additional $500 million to expand its operations in Vietnam within the next five years, aiming to set firm roots in this potential market, according to newswire Bangkok Post. Central Group's largest investment in Vietnam was the 2016 acquisition of the Big C hypermarket chain Chief executive of Central Group Vietnam Philippe Broianigo said that the additional capital will be used to expand its existing businesses in Vietnam, including shopping malls, wholesaling, hotel management, stationery shops, and especially food and electronics. Notably, 1-2 billion Thai baht or $30.01-60.18 million of the fund will be used to open 30 new branches of the Nguyen Kim electronics chain, in which the Thai group holds a 49 per cent stake at the moment. In the next year, Central Group will pour $210.6 million into opening 20 Big C hypermarkets and its wholesale business LanChi Mart, in addition to 20 more Nguyen Kim outlets in Vietnam. The remaining money will be disbursed during 2019-2021. Under the aggressive investment plan, Central Group expects to acquire $1.05 billion in revenue in sales in Vietnam in 2017 and $11.5 billion within the next five years. At the second Vietnamese Goods Week in Thailand inaugurated on August 18 in the presence of Vietnamese Prime Minister Nguyen Xuan Phuc, Central Group chief executive Tos Chirathivat noted that Vietnam and Europe are the group’s investment priorities. The…... [read more]

Prime Minister Nguyen Xuan Phuc addresses the “Viet Nam – Thailand Economic Cooperation Forum” held in Bangkok on Friday. — VNA Photo Thong Nhat Prime Minister Nguyen Xuan Phuc expressed his hope that Thai businesses would make the most of co-operation and investment opportunities in Viet Nam, especially in the context of Viet Nam promoting mergers and acquisitions along with the equitisation of State-owned enterprises (SOEs). He made the remarks while addressing the “Viet Nam – Thailand Economic Co-operation Forum” held in Bangkok on Friday. PM Phuc was attending the event as part of his three-day visit to Thailand from August 17-19 at the invitation of Thai Prime Minister Prayut Chan-o-cha. The forum, hosted by the Thai Business Association in Viet Nam, Thailand’s Kasikornbank (KBank) in co-operation with the Ministry of Planning and Investment of Viet Nam and the Vietnamese Embassy in Thailand, featured some 500 firms from both Thailand and Viet Nam. Phuc said Viet Nam was stepping up merger and acquisition (M&A) activities in combination with equitisation of State enterprises in transport, infrastructure, food, agriculture, telecommunication, trade, services, tourism and construction. The Vietnamese Government leader invited Thai businesses to become shareholders of Viet Nam’s State-owned groups and corporations. According to the PM, since the two countries established a strategic partnership in 2013, co-operation between Viet Nam and Thailand has flourished, with bilateral trade turnover increasing from US$5.78 billion in 2009 to $12.5 billion in 2016. Thailand now has…... [read more]

Prime Minister Nguyễn Xuân Phúc expressed his hope that Thai businesses would make the most of co-operation and investment opportunities in Việt Nam, especially in the context of Việt Nam promoting mergers and acquisitions along with the equitisation of State-owned enterprises (SOEs). Prime Minister Nguyễn Xuân Phúc addresses the “Việt Nam – Thailand Economic Cooperation Forum” held in Bangkok on Friday. - VNA Photo He made the remarks while addressing the “Việt Nam – Thailand Economic Co-operation Forum” held in Bangkok on Friday. PM Phúc was attending the event as part of his three-day visit to Thailand from August 17-19 at the invitation of Thai Prime Minister Prayut Chan-o-cha. The forum, hosted by the Thai Business Association in Việt Nam, Thailand’s Kasikornbank (KBank) in co-operation with the Ministry of Planning and Investment of Việt Nam and the Vietnamese Embassy in Thailand, featured some 500 firms from both Thailand and Việt Nam. Phúc said Việt Nam was stepping up merger and acquisition (M&A) activities in combination with equitisation of State enterprises in transport, infrastructure, food, agriculture, telecommunication, trade, services, tourism and construction. The Vietnamese Government leader invited Thai businesses to become shareholders of Việt Nam’s State-owned groups and corporations. According to the PM, since the two countries established a strategic partnership in 2013, co-operation between Việt Nam and Thailand has flourished, with bilateral trade turnover increasing from US$5.78 billion in 2009 to $12.5 billion…... [read more]

Prime Minister Nguyen Xuan Phuc welcomed by officials of the Vietnamese Embassy in Thailand and the Vietnamese community in Bangkok (Photo: VNA) Bangkok (VNA) – Prime Minister Nguyen Xuan Phuc on August 18 met with officials of the Vietnamese Embassy in Thailand and the Vietnamese community in Bangkok, during which he lauded the community’s solidarity and mutual support to integrate into local society and contribute to the motherland’s development. He affirmed that the Party and State always pay close attention to overseas Vietnamese in general and the Vietnamese community in Thailand in particular, while expressing delight at the growth of the community. Regarding the outcomes of his talks and meetings with Thai leaders, the PM said that both sides shared delight at the strong growth of cooperation between the two countries over the past 40 years, especially since the two sides set up a strategic partnership in 2013. PM Phuc said that he asked Thailand to continue creating favourable conditions for the Vietnamese community and issue passports to elderly Vietnamese. Earlier the same day, the Government leader hosted a reception for President of the Thailand-Vietnam Friendship Association Prachuap Chaiyasan. Lauding the practical activities that the association has held over the past years to boost the traditional friendship between the two countries, the PM said Vietnam always attaches much importance to people-to-people diplomacy. He said he hopes the association will continue its efforts to strengthen tourism collaboration between the two countries, while helping connecting…... [read more]

At the event (Source: VNA) Bangkok (VNA) – Prime Minister Nguyen Xuan Phuc has urged Thai firms to grasp opportunities arising from merger & acquisition activities and the equitisation of State-owned enterprises (SMEs) and their divestment in transport, infrastructure, food, agriculture, telecommunications, trade, services and construction in Vietnam.  At a meeting with Thai enterprises in Bangkok on August 18 during his official visit to Thailand, Phuc said the Vietnamese economy is now worth more than 220 billion USD and the country is striving to meet basic criteria in the business environment, equivalent to ASEAN 4 level by 2020. Vietnam is also in the period of golden population with 60 percent of people in working age. Thai business representatives thanked the Vietnamese government for creating favourable conditions for investors from Thailand and the ASEAN member states to join SMEs equitisation in the country. They pledged to keep expanding their business operations in Vietnam in the fields of retail, food, farm produce manufacturing and processing, energy, tourism and transport. Several companies said they are learning about Vietnam’s tourist attractions and want to link up with Vietnamese airlines to increase tourist arrivals in the two countries. Receiving Chairman of the Electricity Generating Authority of Thailand Kornrasit Pakchotanon, PM Phuc asked for accelerating the construction of a thermal power plant in the central province of Quang Tri. Pakchotanon pledged to ensure environment protection and use advanced technology during the process of…... [read more]

NDO/VNA – Prime Minister Nguyen Xuan Phuc on August 18 met with officials of the Vietnamese Embassy in Thailand and the Vietnamese community in Bangkok, during which he lauded the community’s solidarity and mutual support to integrate into local society and contribute to the motherland’s development. >>> PM urges Thai firms to grasp opportunities in Vietnam He affirmed that the Party and State always pay close attention to overseas Vietnamese in general, and the Vietnamese community in Thailand in particular, while expressing delight at the growth of the community. Regarding the outcomes of his talks and meetings with the Thai leaders, the PM said that both sides shared their delight at the strong growth of cooperation between the two countries over the past 40 years, especially since the two sides set up a strategic partnership in 2013. PM Phuc said that he asked Thailand to continue creating favourable conditions for the Vietnamese community and issue passports to elderly Vietnamese citizens. Earlier the same day, the Government leader hosted a reception for President of the Thailand-Vietnam Friendship Association Prachuap Chaiyasan. Lauding the practical activities that the association has held, over the past few years, to boost the traditional friendship between the two countries, the PM said that Vietnam always attaches great importance to people-to-people diplomacy. He said he hopes the association will continue its efforts to strengthen tourism collaboration between the two countries, while helping connecting investors of both sides. Prachuap Chaiyasan hailed…... [read more]

NDO/VNA – Prime Minister Nguyen Xuan Phuc on August 18 met with officials of the Vietnamese Embassy in Thailand and the Vietnamese community in Bangkok, during which he lauded the community’s solidarity and mutual support to integrate into local society and contribute to the motherland’s development. >>> PM urges Thai firms to grasp opportunities in Vietnam He affirmed that the Party and State always pay close attention to overseas Vietnamese in general, and the Vietnamese community in Thailand in particular, while expressing delight at the growth of the community. Regarding the outcomes of his talks and meetings with the Thai leaders, the PM said that both sides shared their delight at the strong growth of cooperation between the two countries over the past 40 years, especially since the two sides set up a strategic partnership in 2013. PM Phuc said that he asked Thailand to continue creating favourable conditions for the Vietnamese community and issue passports to elderly Vietnamese citizens. Earlier the same day, the Government leader hosted a reception for President of the Thailand-Vietnam Friendship Association Prachuap Chaiyasan. Lauding the practical activities that the association has held, over the past few years, to boost the traditional friendship between the two countries, the PM said that Vietnam always attaches great importance to people-to-people diplomacy. He said he hopes the association will continue its efforts to strengthen tourism collaboration between the two countries, while helping connecting investors of both sides. Prachuap Chaiyasan hailed…... [read more]

NDO/VNA – Prime Minister Nguyen Xuan Phuc has urged Thai firms to grasp the opportunities arising from merger & acquisition activities, the equitisation of State-owned enterprises (SMEs) and their divestment in transport, infrastructure, food, agriculture, telecommunications, trade, services and construction in Vietnam. At a meeting with Thai enterprises in Bangkok, on August 18, during his official visit to Thailand, Phuc stated that the Vietnamese economy is now worth over US$220 billion and the country is striving to meet the basic criteria in the business environment, equivalent to the ASEAN 4 level by 2020. Vietnam is also in a period of golden population with 60% of the population within the working age. Thai business representatives thanked the Vietnamese government for creating favourable conditions for investors from Thailand, and the ASEAN member states, to join the SMEs equitisation in the country. They pledged to continue expanding their business operations in Vietnam in the fields of retail, food, farm produce manufacturing and processing, energy, tourism and transport. Several companies stated that they are learning about Vietnam’s tourist attractions and wish to link up with Vietnamese airlines to increase tourist arrivals in the two countries. Receiving the Chairman of the Electricity Generating Authority of Thailand Kornrasit Pakchotanon, PM Phuc asked for the acceleration of the construction of a thermal power plant in the central province of Quang Tri. Pakchotanon pledged to ensure environment protection and the use of advanced technology during the construction process. Meeting the Chief Executive Officer (CEO) of the Central Group…... [read more]