Foreign distributors to remap petroleum distribution market

Minister of Industry and Trade Vu Huy Hoang on June 6 said the ministry will consider re-planning the distribution system and encourage enterprises to expand supply networks to offer better access to markets for consumers in the country. Stabilising prices, increasing domestic goodsHoang said increasing investment for distribution systems, encouraging all economic sectors to join supply chains, and preventing speculative behaviours and trade frauds are central measures to modernise the distribution system in the future. “Implementing the Resolution 11 of the Government, the Ministry of Industry and Trade has directed market stabilisation units and carried out programmes to stabilise food items,…... [read more]

The Law on Investment and Decree No 139/2007/ND-CP provide that a joint venture with 49 per cent or less foreign capital is treated as a domestic enterprise and is established in accordance with investment procedures applicable to such enterprises. But, on March 18, 2009, the Ministry of Planning issued Official Letter No 1752/BKH-PC which stated that a joint venture with 49 per cent or less foreign capital must obtain an investment certificate, i.e., it is subject to foreign investment procedures. In theory, the provisions of the Law on Investment should prevail, since Official Letter No 1752 is a document of…... [read more]

Provinces and cities across Vietnam granted licenses for 169 foreign firms to distribute goods in Vietnam last year with the majority from Japan, South Korea, China, Singapore, Italy, France and Germany. Of the firms, 41 were the newly-established distribution companies and the rest which have marked their presence in Vietnam are allowed to expand their operations, according to the Ministry of Industry and Trade. The MoIT said 143 of the total were licensed to distribute machinery, equipment and materials while the rest were allowed to distribute consumer goods. Under Vietnam’s WTO commitments, the country completely opened its distribution market for foreign firms, allowing…... [read more]

The fact that technology firms tend to change business strategies, trying to distribute their products directly to consumers, has reduced the market share held by the three biggest distributors – FPT Trading, Petrosetco (PET) and Digiworld (DGW).In mid-April, a noisy dispute between FPT Trading and Oppo Vietnam broke out. The former unexpectedly imported Oppo smartphones from Taiwan and sold the products at prices lower than the price quoted at Oppo Vietnam’s sales agents. Observers noted that the dispute partially shows the smartphone distribution market ‘is going downhill’ while distributors have to compete fiercely to exist.The mobile phone distribution market is being…... [read more]

New capital from foreign investors is gradually flowing into the property market, not only in the premium segment, but also the medium one. The premium real estate segment remains the one which attracts the most foreign capital. During the gloomy market period, many foreign investors have still poured money into the housing projects, offices, luxurious hotels as they believed that customers of this segment were less affected during crisis period and Vietnam was at the bottom of the real estate cycle. Recently, in early June of 2015, Jen Development Company, a real estate investment fund of Hong Kong, launched luxurious villas…... [read more]

This is much higher than the 16.61 percent achieved by the banking sector as a whole.As of October 2008, foreign credit organisations including fully foreign-owned subsidiary banks had mobilized a total of around VND23 trillion and granted loans worth VND152 trillion.Although some foreign branches and financial companies have recorded losses as a fallout of the ongoing financial crisis in both global and domestic markets, the foreign banking sector in Vietnam still achieved pre-tax profits of VND1.4 trillion.Independent market watchdogs attribute the foreign banks’ strong development to the presence of three 100 percent foreign-owned subsidiary banks in Vietnam.On September 8, the…... [read more]

The escalating price of gold Together with the local real estate market, gold prices also reached the peak in 2009. The average gold price in 2009 was 24 percent higher than the previous year’s figure.The domestic gold price mostly depended on that of the global market. Notably, at certain times, the price in Vietnam was higher than on the international market. For example, gold sold locally at nearly VND20 million/tael on March 20 increased to more than VND21 million/tael by mid-June and reached VND23 million/tael a few months later. In the third and fourth quarters of 2009, the gold price…... [read more]

With improved incomes and more than 1 million babies born every year, Vietnam is a promising market for this segment.Accordingto a survey recently conducted by Nkind Service and Trading JSC, totalrevenue from products, educational and entertainment services and healthcare for children aged 0-12 was 5.2 billion USD a year in recent years.Ofthat amount, products and services accounted for more than 3 billionUSD, including 1.2 billion USD for milk and nutrition products. Otherproducts such as toys, clothes and diapers accounted for 1.1 billionUSD. Entertainment services totalled 700 million USD a year.Foreign brands still dominate the market for products such as cradles,…... [read more]

Highest-ever foreign reserves help stabilize money marketThe Saigon Times Daily HCMC – Vietnam’s foreign exchange reserves have shot up to an all-time high of US$45 billion, which will facilitate the central bank’s effort to stabilize the money market and thereby the economy. A Government report, delivered by Prime Minister Nguyen Xuan Phuc on the first day of the National Assembly session in Hanoi on Monday, said the State Bank of Vietnam (SBV) had bought an additional US$6 billion since the end of last year, taking the total to US$45 billion. In his closing remarks at the sixth plenum of the…... [read more]

The securities market in HCM City has seen positive changes sincethe issuance of Government Decree 60/2015 which would permit a higherrate of foreign ownership in domestic public companies. Thedecree amends and supplements several articles of Decree 58, providingdetails and implementing guidelines on several articles of the Law onSecurities and Amended Laws on Securities. The new decree, due to take effect on September 1, will remove limits on foreign ownership in listed companies. Current regulations cap foreign stakes in public companies at 49 percent. Underthe new decree, a foreign stake can be lifted to 100 percent for mostsectors, and firms will…... [read more]