The United States has notified the World Trade Organization of eight Vietnamese firms it says should have been registered as state trading enterprises under global trading rules, a filing published by the WTO shows. The U.S. said it was notifying the WTO on Vietnam’s behalf, a so-called “counter-notification”, because Vietnam had failed to do so. Washington has previously taken similar steps to flag Chinese companies that it suspects are competing unfairly because of their government connections. U.S. Trade Representative Robert Lighthizer has vowed to toughen up on transparency at the WTO. The U.S. filing named oil firm PetroVietnam and its subsidiary PV Oil, as well as fuel importer Petrolimex (PVX.HN) and jet fuel supplier Vietnam Air Petrol Company (Vinapco/SKYPEC), as firms that should be declared under WTO rules on state trading enterprises. The list also includes the Northern Food Corporation and Southern Food Corporation, known as Vinafood I and Vinafood II, the Saigon Jewelry Company Limited and the Vietnam National Coal and Mineral Industries Group (Vinacomin). Vietnam joined the WTO 11 years ago, following in China’s footsteps by transforming its economy on the back of cheap labor and export-led growth. It notified the WTO of two state trading enterprises in April 2016, prompting the U.S. to ask about other companies. Last October, Vietnam replied that most of its former state enterprises had been equitized and were operating under market economy conditions, without their previous preferential privileges. “Shortly after Vietnam’s response, the United States independently researched Vietnam’s claims and, based on… [Read full story]
A new government report has revealed that Vietnam's state-owned companies are now in so much debt it accounts for half of their asset value. State-owned firms owed more than VND1,500 trillion ($66.03 billion) at the end of last year, which was up 3 percent from 2015, said the report filed to the ongoing legislative National Assembly session. Assets at these companies increased by nearly 4 percent to more than VND3,000 trillion ($122 billion) over the same period, it said. The biggest debtor was power monopoly Vietnam Electricity, which owed nearly VND487 trillion ($21.5 billion), followed by energy giant PetroVietnam with $15…... [read more]
The Vietnamese government’s plan to sell off its stakes in major state-owned enterprises (SOEs) are being watched closely by investors from Thailand, who are especially interested in the beverage sector, according to the Nikkei Asian Review. The target is to fully divest state ownership from these companies by the end of 2017, “exciting foreign companies looking to tap strong demand in this previously inaccessible market of 93 million people,” the Nikkei Asian Review reported. One of the largest corporations in the country, Vinamilk, is set to be the first in line with a 9-percent stake reportedly up for grabs. The…... [read more]
The Communist Party cell attached to a Vietnamese state firm rejected Friday a proposal by the company's chairman to dismiss the CEO for failing to do his job well resulting in massive losses. The proposal also caused a hue and cry among the staff at the Ministry of Construction's Cosevco, a construction and building materials company based in Danang, since the CEO Ngo Khiet is credited with turning things around after taking over the job when the company was floundering in 2005. Ironically, Tran Xuan Dinh, the chairman and formerly the CEO, is thought to be the person who brought…... [read more]
VietNamNet Bridge - While international delivery firms have many years of experience and good infrastructure, domestic firms have made heavy investment in the field only over the last five years. Luong Ngoc Hai, General Director of Viettel Post (VTP), which has been present on the market over the last 15 years, admitted that the satisfactory business performance was only seen in 2012, when it obtained the turnover of VND883 billion thanks to the cost saving solutions. It strives to obtain the turnover of VND1 trillion in 2013, of which delivery and forwarding services would bring 65-70 percent. Hurrying to develop…... [read more]
"To secure a firm foothold in the local market and expand to new markets, the biggest challenge lies in enterprises themselves, not in rivals. The difficulty is that some enterprises do not "have both feet on the ground" and are still dependent on preferential treatment which is not permitted by WTO", says Dr Le Dang Doanh. A seminar entitled "Vietnamese enterprises and WTO" was held in Hanoi on August 17, drawing the participation of around 500 representatives from ministries, sectors, associations and enterprises in Hanoi and several Northern provinces. The seminar focused on preparations required by Vietnamese enterprises on the…... [read more]
