VietNam Business: Vietnamese

Showing posts with label Vietnamese. Show all posts

Thursday, February 17, 2011

Local firms urged to further tap Cambodia market

Nguyen Dang Vuong of Dang Khoa Trade Promotion Co. introduces the upcoming industry exhibition in Cambodia at the press conference in HCMC last week - Photo: Mong Binh

HCMC - The HCMC Mechanical Association and Dang Khoa Trade Promotion Co. are working with the Cambodian government over an industry exhibition in Phnom Penh from December 15 to 18, and call for Vietnamese enterprises to further explore business opportunities in Cambodia.

Speaking at a news briefing in HCMC last week, Dang Khoa’s director Nguyen Dang Vuong said the Vietnam-Cambodia International Industry Exhibition would have some 350 booths divided into separate areas for enterprises from Cambodia, Vietnam and other parts of Asia including Japan, Singapore, China and Thailand.

Vuong said 100 booths of the total number would be reserved for Vietnamese enterprises to showcase their products at the event at Diamond Island Convention and Exhibition Center. The organizers target manufacturers of mechanical tools and equipment for light industries.

The Vietnamese-made goods to be on show include machines and equipment for mining, rubber processing, food and foodstuff, apparel, printing, plastic and packaging, electricity and electronics, fishing, building material, construction and farming.

Vuong said Vietnamese enterprises had gained a strong foothold of the consumer goods segment in Cambodia but had not tapped the great potential of the industrial segment in the neighboring market of Vietnam.

“The demand for industrial machines and equipment in Cambodia is enormous,” Vuong told the Daily after the news briefing. He added companies from all over Cambodia would come to the exhibition to find suppliers of machinery and equipment.

Pham Ngoc Tuan of the event’s organizing committee said there would be product introduction sessions as part of the exhibition on December 16.

Nhan Hanh Nhon, managing director of OSC First Holidays, said this local travel firm had designed packages for enterprises to promote their products at and outside the four-day event with prices starting from US$188 per person.

Nhon said that OSC First Holidays would also arrange a caravan tour for business people to drive their cars promoting the image and products of their companies during the trip from Vietnam to the exhibition and other places of Cambodia.

According to Vietnam’s Ministry of Trade and Industry, trade with Cambodia has increased by 30% year-on-year over the past decade, and machines are among the products on high demand in the neighboring country.

The ministry expects Vietnamese exports to Cambodia this year to rise to US$1.6 billion from US$1.1 billion in 2009, based on the consignments worth US$728 million to the neighboring market in the first half of this year.

Vietnamese companies have pledged some US$900 million to invest in over 60 projects in the farming, mining, finance, energy and telecommunications sectors in Cambodia.

Monday, February 14, 2011

Lawmakers make field-trip to Vietnamese firms in Cambodia

A delegation from the Vietnamese National Assembly is on a visit to
Cambodia from October 14-18 to inquire about operations of
Vietnamese-invested businesses.

Headed by Chairman
of the NA’s Committee for External Relations Nguyen Van Son, the
delegation held working sessions with a number of companies, including
Viettel Cambodia , the Vietnam Rubber Group’s Representative Office,
the Bank for Investment and Development of Cambodia (BIDC), the
Cambodia-Vietnam Insurance Company (CVI) and the VTC Online Cambodia
Company.

The lawmakers heard reports on the
operations and difficulties of the targeted businesses as well as their
proposals for possible government’s help.

They also
made a field-trip to rubber tree farms of the Vietnam Rubber Group in
Kompong Thom province and called at the Tan Bien, Ba Ria, Phuoc Hoa And
Chu Se companies.

The legislators are scheduled to
visit Siem Reap province where they will meet with and learn about
operations of Vietnamese-invested firms that are operating in
north-western provinces of Cambodia./.

Thursday, February 10, 2011

Vietnamese companies penetrate Cambodian market

A trade fair showcasing Vietnamese and Cambodian industrial products
will take place in the Cambodian capital city of Phnom Penh from
December 15-18.

When addressing a press briefing
on October 15, Vice Chairman of the HCM City Mechanical Engineering
Association, Pham Ngoc Tuan, said that the event will help Vietnamese
businesses to promote their products and seek out new markets in
Cambodia .

With almost 350 stands, the fair is
divided into two themes, one of which is being run by the Cambodian
Ministry of Commerce, focusing on exports from Cambodian provinces.

The other will introduce international industrial products, not only
from Vietnam and Cambodia but also from other countries such as
Japan , Singapore , China and Thailand . The area will be
administered by the HCM City Mechanical Engineering Association and the
Dang Khoa Trade, Investment and Services Promotions Company.

At the event, Vietnamese products will be showcased in 100 stands,
including mechanical engineering, information technology,
transportation, construction and the biochemical’s industry.

According to the organising committee, the Vietnamese and Cambodian
governments have signed a number of economic agreements, which have
created the best possible conditions for Vietnamese businesses to expand
their operations in the Cambodian market.

Market
surveys in Cambodia showed Vietnamese products account for a
substantial amount of the country’s market share. However the
availability of industrial machinery and equipment is still limited./.

Tra export forecasts lowered

The Ministry of Industry and Trade has reduced its October forecast for
tra fish exports from 1.38 billion USD to 1.35 billion USD following
plans by the US to impose an anti-dumping tax of 130 percent on the
fish.

The Vietnam Association of Seafood Exporters
and Producers (VASEP) said the country's total seafood export value this
year would be 4.81 billion USD, lower than earlier estimates.

The new tax rate, far in excess of any previous dumping tariffs
imposed on Vietnamese seafood exports in the last eight years, was
agreed at the sixth administrative review by the US Department of
Commerce (DOC).

In pervious DOC reviews, most Vietnamese exporters enjoyed a tax rate of just 0.52 percent – the lowest possible.

VASEP said the US department's ruling is unjustified and that it
was based on the price of raw materials imported from the Philippines ,
not from Bangladesh as was previously the case.

The 130-percent anti-dumping tax rate will be imposed on Vietnamese tra
exporters, such as Vinh Hoan, Vinh Quang, Agifish, ESS LLC and South
Vina from March 2011.

Nguyen Ngo Vi Tam, deputy
general director of Vinh Hoan, said her firm will reduce exports of tra
fish to the US and increase exports to other markets as a result.

VASEP said DOC has given Vietnamese tra exporters
until October 26 to submit documents relating to their exports if they
want the draft tax rate reviewed./.

Wednesday, February 9, 2011

Vietnamese firms eager to invest in Cuba

Cuba has become increasingly attractive to Vietnamese investors
following changes to the country's trade policies that are designed to
attract foreign firms in the service and production sectors, according
to the Ministry of Industry and Trade's American Department.

Nguyen Xuan Khien, the department's head, said Cuba is particularly looking for real estate investors.

He said Cuba has begun actively looking for foreign investment at
the beginning of this year, mostly in the fields of tourism, plastic
packaging, paper processing, mining and foodstuffs.

Khien said investors in golf courses would be permitted to rent land for 99 years.

Dang Xuan Cuong, from the Vietnam Food Industries Company, said his
company is looking into Cuba , which is a new market for his firm.

Last month, the Vietnam Northern Food Corporation signed a contract to sell 200,000 tonnes of rice to Cuba .

Every year, Cuba imports about 400,000 tonnes of rice from Vietnam .

Despite the latest trade incentives, exporters are still facing difficulties, such as late payment, Cuong said.

He said his firm often receives payment 300-500 days after the goods are delivered.

Because of continued late payment, Cuong said his company has to
export goods to Cuba through a firm in a third country that paý more
promptly.

However, he said Cuba had an
attractive investment climate and that Vietnamese firms should closely
study this new market.

To boost trade relations
between the two countries, the Ministry of Industry and Trade plans to
hold an investment forum in Havana , the country's capital.
Particular emphasis will be on sectors such as information and
technology, rice, footwear, garments and pharmaceuticals./.

Tuesday, February 8, 2011

Businesses can do more with support: economist

Vietnamese firms have come through the global economic crisis well and can achieve more with support from the government, economist Pham Chi Lan said.

Lan, a former member of the Prime Minister’s Research Commission, told Tuoi Tre that though the number of businesses in the country rose 12.5 times from 40,000 to 500,000 between 1990 and 1999, the change in political and social perception about their roles only started five years ago, five years after the Enterprise Law too effect.

What is the contribution of Vietnamese entrepreneurs?

Since October 13 has been chosen as the national day for them and not for business in general, it is clear that Vietnam has started to recognize their contributions. The number of businesses, at around six per 1,000 population, is still small compared to other countries where the average rate is 19 per 1,000 people in low-income nations and 29 per 1,000 in middle-income countries.

The fact that more than 1 million jobs have been created, mainly in the private sector, is enough to show the undeniable contributions of Vietnamese entrepreneurs. During the crisis, the number of enterprises going bankrupt and the percentage of workers laid off were very small, making Vietnam one of a handful of countries enjoying positive growth rate during the period.

What kept our businesses afloat during the economic downturn?

It was the national campaign to promote the consumption of domestically-made goods.

But the main problem is that in the campaign policymakers just paid attention to the tip of the iceberg by calling for consumer patriotism and developing the distribution system.

The more important part, support for businesses to adopt global technological and management advances to cut costs and improve quality and packaging, has yet to receive attention.

What are main shortcomings of Vietnamese businesses and entrepreneurs?

Though many Vietnamese entrepreneurs are competent at doing business, they are desperately short of capital.

Since Vietnam does not have enough resources for all, it is allocating most of the resources to state conglomerates. So Vietnam should consider this more carefully so that capital will be redirected to those who operate the most efficiently.

Another problem is that a large part of our resources is channeled into the real-estate and stock markets and not manufacturing due to our administrative system, legal framework, and policy making. So our policymakers are still playing catch-up with the market and not moving ahead of it.

Are the existing incentives enough to promote Vietnamese goods at home?

There are a lot of incentives but they have little effect.

For example, the 15 measures the government announced to support development of small and medium-sized enterprises in 2006-2010 … A survey by the Central Institute for Economic Management found that only 12 of them have been implemented.

[However] even the measures have had little effect since there are only nine municipal credit guarantee funds for small and medium-sized enterprises in the country’s 63 provinces and cities, with just three actually operational.

There are too many policies that require a large number of guiding documents. So the most practical solution is to focus on the implementation and effectiveness of each policy.

To back Vietnamese businesses, what areas should policies focus on?

Dominating the domestic market and then expanding to the global market needs outstanding quality at reasonable prices. So the application of technological advances is the key.

Though we claim that research and development is a priority, the Ministry of Science and Technology returns hundreds of billions of dong [meant for research] to the budget every year since. The research projects receiving ministry funding are also impractical.

So the system should be changed and funding should go directly to businesses who want to take drastic action for their survival.

Businesses can do more with support: economist

Vietnamese firms have come through the global economic crisis well and can achieve more with support from the government, economist Pham Chi Lan said.

What is the contribution of Vietnamese entrepreneurs?

What kept our businesses afloat during the economic downturn?

It was the national campaign to promote the consumption of domestically-made goods.

But the main problem is that in the campaign policymakers just paid attention to the tip of the iceberg by calling for consumer patriotism and developing the distribution system.

The more important part, support for businesses to adopt global technological and management advances to cut costs and improve quality and packaging, has yet to receive attention.

What are main shortcomings of Vietnamese businesses and entrepreneurs?

Though many Vietnamese entrepreneurs are competent at doing business, they are desperately short of capital.

Are the existing incentives enough to promote Vietnamese goods at home?

There are a lot of incentives but they have little effect.

There are too many policies that require a large number of guiding documents. So the most practical solution is to focus on the implementation and effectiveness of each policy.

To back Vietnamese businesses, what areas should policies focus on?

Dominating the domestic market and then expanding to the global market needs outstanding quality at reasonable prices. So the application of technological advances is the key.

So the system should be changed and funding should go directly to businesses who want to take drastic action for their survival.

Sunday, February 6, 2011

Japanese company set to serve Vietnamese agriculture

The Japanese multinational Sumitomo Corporation on October 14 officially
opened a company in Ho Chi Minh City to provide products that serve
the agricultural sector.

The corporation’s
chairman Ray Nishimoto, representatives of the Japanese Consulate
General and others from relevant Vietnamese agencies and institutions
attended the event.

Currently, the company is
producing pesticides such as Padan 95SP, 50 SP, Validacin 3L, 5L, Sumi
Eight 12.5 WP, Dantotsu 16 WDG, 50 WDG, and Starner 20 WP, which
annihilates bacteria that cause rotten fruit and vegetables. These
products help farmers increase productivity, ensure product quality for
domestic and export markets, and contribute to building an advanced
agricultural sector.

According to Kimitoshi Umeda,
the corporation’s global marketing director, the Sumitomo Vietnam has
worked out policies on researching and developing products and waste
treatment that do not harm the environment.

In addition, the product price is suitable for Vietnamese farmers, he said./.

Sunday, January 30, 2011

Vietnamese company builds trade centre in Laos

The Lao franchise of the Vietnamese An Phu joint stock company broke
ground for the construction of a commercial centre in Vientiane on
October 12 in the presence of Lao Permanent Deputy Prime Minister
Somsavad Lengsavad.

The That Luong complex has been
designed with a seven-storey and two-basement shopping centre, a
six-storey and two-basement block of buildings reserved for offices and
apartments for rent, and tree and entertainment parks.

The 58.68 million USD project is scheduled to be completed in December, 2012.

Vientiane Mayor Sombath Yialiheu said at the ground-breaking ceremony
that the project has helped boost relations between Laos and Vietnam.

Vietnamese Ambassador Ta Minh Chau emphasised that the project has
illustrated Vietnamese enterprises’ increasing interest in investment in
Laos and economic relations between the two countries have been faring
well.

The Bank for Investment and Development of
Vietnam (BIDV) representative took this opportunity to present Vientiane
with a check for 100,000 USD to help celebrate its 450 th founding
anniversary./.

Saturday, January 29, 2011

Over 100 Vietnamese firms to attend China-ASEAN Expo

More than 100 Vietnamese businesses will take part in the seventh
China-ASEAN Expo (CAEXPO 2010) scheduled for Oct. 20-24 at the Centre
for Conference and Exhibition in Guangxi province, China.

About
170 Vietnamese booths at the expo will display agricultural, forestry
and fishery products on, processed food, wooden furniture and
handicrafts, and introduce projects calling for investment, trade and
tourist services, according to the Trade Promotion Department under the
Ministry of Industry and Trade.

Apart from promoting the
Vietnam trademark and exports, the expo will offer opportunities for
Vietnamese businesses to access and attract distribution and investment
channels, and promote advantages from integrating into the ASEAN-China
Free Trade Area.

According to the Ministry, two-way trade between
Vietnam and China rose from 20-25 percent in recent years. China
is first among exporters to Vietnam and ranks third among Vietnam
’s importers.

In the first six months of this year, two-way trade
between the two countries reached 11.9 billion USD, of which Vietnam
’s exports rose 45 percent to 2.8 billion USD over the same period last
year.

The two-way trade is expected to reach 25 billion USD for the whole year./.

Tuesday, January 18, 2011

Vietnamese bank tempts savers with German beer

Vietnamese bank tempts savers with German beer A small Vietnamese bank has started giving away beer to customers who make deposits, the latest in a string of gimmicks deployed by lenders in the Southeast Asian country to attract savers.

Western Bank launched the nationwide promotion on Wednesday, offering a large can of Bitburger beer imported from Germany for each one-month deposit of at least 7.5 million dong ($385) made until November 25.

"We started this award before Tet, as every other bank has its own promotion," said a teller at the bank, which is based in the Mekong Delta city of Can Tho.

In the run-up to Tet, Vietnam's Lunar New Year festival, which usually falls in February, cash demand rises as companies pay year-end bonuses and consumers splash out.

Tropical Vietnam has a long tradition of beer drinking, introduced by French colonists in the late 19th century. Although local brews dominate the market, rising living standards have allowed city dwellers to taste foreign brands.

Authorities have been trying for months to get banks to cut interest rates, both on loans and deposits, so lenders have had to get creative in the fight for depositors.

Inducements have ranged from a tour of Europe to cars, crash helmets, bed sheets and blood pressure monitors.

Sunday, January 2, 2011

Building firms fail to win big contracts

HA NOI — Although the Vietnamese construction industry had seen positive growth in previous years, Vietnamese constructors struggled to win contracts for large-scale projects due to their low competency, said Vu Gia Quynh, Secretary General of the Viet Nam Association of Construction Contractors.

Quynh said there were a lack of appropriate policies that supported domestic constructors who faced many disadvantages when competing with highly-reputed and experienced foreign groups.

He said a policy that required a specific level of domestic input including the use of labour force and materials in construction projects, as in many other countries, should have been issued to support domestic enterprises.

Nguyen Thanh Su, deputy general director of Khang Thong Joint Stock Company, which is a key investor in the US$2 billion Happyland Entertainment Complex project in southern Long An province, said that sub-contracts, which were more accessible to Vietnamese enterprises, were often of low-value while there was also strong competition for them.

Many Vietnamese constructors are also at risk after submitting low bids in order to win contracts, then having to cope with the rising cost of construction materials.

Vietnamese constructors also lacked competency when it came to responding to contractual terms or other regulations, said Su.

Vietnamese constructors tended to be flexible when implementing contractual terms and they often used mediation when it came to disputes, Su said.

"In contrast, foreign bidders stuck to the contracts and punished domestic sub-contractors if they failed to meet them," he added.

Do Cong Hien, director of Vinaconex Corporation's construction department, said that seasonal workers also made it harder for domestic constructors. Many projects struggled to replace workers at harvest time when they returned to the countryside.

Although it's known that this is unprofessional, it happens due to the fact that a large proportion of workers are from rural areas.

Hien added that domestic enterprises had poorer access to high technologies than their foreign counterparts, which made them less competitive.

Vietnamese enterprises needed to take advantage of sub-contracts by learning from the technologies and experience of foreign groups, said Hien.

These were opportunities for domestic constructors to grow and become more competitive in the domestic market, he said. — VNS

Monday, December 27, 2010

Vietnamese SMEs upbeat about economy: survey

Jeff Mclean (C), general manager of UPS Vietnam, at the function held yesterday at the Sofitel Plaza Saigon in District 1 to announce the fifth UPS Asia Business Monitor 2010 - Photo: Nhan Tam

HCMC – Some 72% of 100 Vietnamese small and medium enterprises (SMEs) are optimistic that they will perform better business in 2010, according to a survey conducted in the Asia-Pacific region whose results were released here on Wednesday.

For economic sectors, the construction industry will continue to boom as 53% of Vietnamese SMEs believe that this sector continues to be the country’s key growth industry this year, followed by IT (36%) and leisure and tourism (28%).

In the medium term for between three and five coming years, local SMEs still place the top choice on the construction industry as the key economic pillar with 53%, followed by agriculture (29%), leisure and tourism (29%), and IT (26%), according to the fifth UPS Asia Business Monitor (ABM).

The survey, outsourced to the independent research organization TNS in Hong Kong by the logistics service provider UPS, was conducted between March 11 and April 20 this year. This is the first time Vietnam participated in the annual UPS ABM, which also covers other markets like Australia, China, Hong Kong, India, Indonesia, Japan, South Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand.

Vietnamese SMEs also cast an optimistic view on the Asia-Pacific region, with some 59% believing that the Asia Pacific economy would continue to grow while 9% of them expect a decline and the remaining 32% expect the economy to remain the same.

Jeff Mclean, general manager of UPS Vietnam, said that the Vietnam survey results would greatly assist the company in how to better meet the needs of local SMEs as they compete in the global market.

However, he added that despite the prevailing positive growth sentiment, Vietnam seems to be the least optimistic regarding workforce projection in the region. An overwhelming 61% of those surveyed intend to reduce their workforce, while none of them plan to increase their workforce.

“They have optimistic views about the future, but they still feel worried,” Mclean told the Daily after the function to announce the survey, adding that they just want to take advantage of current human resources to overcome the difficulties.

The survey also showed that although the Vietnamese economy is expected to grow this year, local entrepreneurs still encounter challenges as about 7 out of 10 Vietnamese SMEs say that their top business concern is costs.

The second biggest concern is the high interest rate while competition is the third biggest concern.

UPS ABM 2010 surveyed 1,351 decision-makers of SMEs between March 11 and April 20 this year. SMEs are defined as companies with fewer than 250 employees. Respondents were from a range of industries such as electronics, construction, food and beverage, services, manufacturing, automotive, garments and textiles, IT, tourism and hotel, healthcare and pharmaceuticals and others.

Vietnamese SMEs upbeat about economy: survey

Jeff Mclean (C), general manager of UPS Vietnam, at the function held yesterday at the Sofitel Plaza Saigon in District 1 to announce the fifth UPS Asia Business Monitor 2010 - Photo: Nhan Tam

Jeff Mclean, general manager of UPS Vietnam, said that the Vietnam survey results would greatly assist the company in how to better meet the needs of local SMEs as they compete in the global market.

The second biggest concern is the high interest rate while competition is the third biggest concern.

Sunday, December 26, 2010

VN to increase investment in northern Laos

Vietnamese businesses operating in eight northern provinces of Laos
have met in Udomxay province to seek out ways of boosting investment
in the region.

The Sept. 26 event was co-organised
by the Vietnamese Consulate General in Luang Prabang province, the
Vietnamese Association in Udomxay province and attended by Governor of
Udomxay province Khamla and Vietnamese Ambassador Ta Minh Chau.

During the meeting, several businesses pointed out obstacles that
hamper Vietnamese investors in northern Laos and debated issues
including land clearance, foreign workers on large-scale projects, power
resources, mining projects, land leasing procedures, tax and export
fees.

They also agreed to set up a Vietnamese business liaison board in northern Laos .

Addressing the event, Khamla said that Udomxay province has outlined
its renewal policies to lure more foreign businesses to the province,
and implement incentives stated in the 2009 new law to encourage
investment, while creating favourable conditions for Vietnamese
investors.

On the occasion, Dien Bien Rubber
Company signed appendixes to complete the already-signed agreement on
rubber investment cooperation in Udomxay province.

Lao northern provinces , including Bokeo, Hua Phan, Luang Prabang,
Luang Namtha, Udomxay, Phongsali, Xaynhabuli and Xieng Khoang, have
enormous potentials in mineral, hydroelectricity and land but remain a
low-income region compared with others.

Vietnam
has deployed 104 projects in the northern Lao region with a combined
capital of only 67.3 million USD out of 2.4 billion USD the country has
invested in the region with 219 projects./.

Thursday, December 9, 2010

Japanese retailer puts Vietnamese products on shelves

Japanese retailer puts Vietnamese products on shelves Japanese retailer Aeon Corporation has begun carrying Vietnamese products in its stores in Japan to take advantage of lower import duties under a free trade agreement signed between the two nations.

Aeon, Japan’s second largest retailer, was looking for Vietnamese suppliers in clothing, food and household products, said Toshihito Hirai, deputy general director of AIC’s Foods Supervision Division. AIC is in charge of purchasing products for Aeon.

Hirai said Vietnam has become a potential supplier of the group as it targets reduced costs and improved competitiveness.

He said the Japanese government had eliminated or reduced tariffs for almost Vietnamese agricultural products after the Economic Partnership Agreement between two countries took effect late in 2008.

The tariffs would reduce to zero from the current 1 to 5 percent for these products, especially seafood, and trading in Vietnamese products would fetch more benefits for the group, said Hirai.

He said shipping charges from Vietnam to Japan were reasonable and affordable and added to the company’s ability to improve its competitiveness in the retail market.

China, Thailand and Vietnam were the group’s top suppliers in Asia, he said. However, Chinese suppliers were focusing on the domestic market and the group had to look for other suppliers.

Vietnam was strong in export of agricultural and farm products like rice, vegetables, coffee, cashew, cassava, tea and oranges, he said.

He told Thanh Nien Weekly that quality was the group’s top concern in trading with Vietnamese suppliers, but many of them were trying to apply international standards in producing and packaging now.

The group would send a team to investigate Vietnamese factories processing seafood and other products in November as part of preparations for its first direct shipment from Vietnam, he said.

Aeon CEO Nagahashi Oyama had said during a visit to Vietnam last year that the retailer was looking for locations to develop a US$50 million trade, service and entertainment complex on 10 hectares in Ho Chi Minh City.

Tuesday, December 7, 2010

Overseas Vietnamese given new property rights

Overseas Vietnamese living abroad who have maintained their Vietnamese citizenship are permitted to own unlimited property, according to the latest decree on implementation of the Land and Housing Law.

Deputy Minister of construction Nguyen Tran Nam said that this is a change from the previous decree, which has been in force since 2001, which stipulated that only selected groups of people of the Vietnamese origin could own unlimited property.

The new decree stipulates that overseas Vietnamese eligible to buy houses in Vietnam may also enjoy other privileges, such as the transfer of land-use rights when selling; using credit organisations to mortgage their land-use rights; or leasing out the property.

This change promotes further equality between overseas Vietnamese and Vietnamese citizens when it came to property ownership in Vietnam, said Truong Thi Hoa, a lawyer from the HCMC Bar Association.

Nam said this decree also provides specific guidance about the papers overseas Vietnamese are required to present to prove their eligibility to buy real estate.

"All the requirements are more concrete and transparent than before, which will hopefully pave the way for better implementation of the law at local levels," he said.

One of the major hurdles for overseas Vietnamese that hinders them from purchasing property in Vietnam is the procedure to prove their origin, Luong Bach Van, chairwoman of the Overseas Vietnamese Committee in HCM City, said.

"If they lose relevant papers, which is often the case for people who have lived abroad for a long time, the whole process may come to a standstill. For those who have already prepared the necessary certificates, it still takes at least three months to verify them," she said.

Chairman of the Overseas Vietnamese Businessmen Club Nguyen Ngoc My said that many overseas Vietnamese commonly get around the red-tape procedures by putting their real estate transactions under the name of a Vietnamese citizen.

Nguyen Thi Thu Van, who owns an auto dealership in San Francisco and divides her time between Vietnam and the US , said she has bought several houses in Vietnam but asked her relatives to register for ownership.

"This is much quicker, but I am luckier than other overseas Vietnamese who may not have trustees in Vietnam . The new decree is a good signal for all of us, but I am a little bit concerned about its implementation in practice," she said.

My, a Vietnamese Australian, said he bought a house at the beginning of this year but is still waiting for his property ownership certificate.

"I hope the changes in relevant legal documents will help procedures go more smoothly, which will in turn make it easier for overseas Vietnamese to take part in Vietnam's property market," he said.

Deputy Minister Nam said the new regulations will provide incentives for overseas Vietnamese to return to the country to buy houses, which would help boost the real estate market in Vietnam .

He also refuted the concern that overseas Vietnamese could utilise the loosened regulations to find their way into real estate speculation, potentially leading to a housing market bubble.

"In fact, property prices in Vietnam are comparatively high and the housing market is not that attractive," he said.

Nguyen Quang Tuyen, head of Hanoi Law University 's Land Law Department, said the new regulations may create more demand in the housing market but not enough to create a boom because the relevant administrative procedures are still not working very well.

Saturday, December 4, 2010

US state seeks co-operative ties

HCM CITY — The State of Washington sought co-operation with Viet Nam in several fields including education, trade and agriculture, visiting Governor Christine Gregoire said yesterday.

Gregoire, who is leading a delegation of about 60 enterprises looking for business and investment opportunities, highlighted the agricultural strengths of the state, particularly in potatoes, apples and cherries.

"We have brought Washington State's high quality, deliciously flavoured potato products to Viet Nam through Kentucky Fried Chicken stores," she said at a potato promotion event held in HCM City.

Angela Dickey, deputy Consul General of the US in HCM City, said Washington State was the US's number one producer and exporter of frozen potato products. Viet Nam was a large consumer of this product, ranking 12th among importers with a value of US$1.4 million last year, she said.

Gregoire had earlier met with the Prime Minister Nguyen Tan Dung and discussed ways to boost export of Vietnamese fruits to the US and US fruits to Viet Nam.

Apart from agricultural products like pepper, rice, coffee and rubber, Washington was a potential market for Vietnamese dragon fruit, she said.

The Governor also said the state wanted to have student exchange programmes with Viet Nam as a measure to boost co-operation in the education sector. It would send students to Viet Nam for study and research purposes and welcomes all Vietnamese students to come to the state, she said.

On the occasion of her visit, invitations were given to 150 Vietnamese students to visit universities in Washington. There are 1,200 Vietnamese students currently studying in Washington universities.

During her visit, Gregoire attended the opening ceremony of an elementary school in Hue sponsored by Boeing Corporation, and cut the ribbon for the SSA Marine Cai Mep Terminal, a joint venture between Saigon Port, Vinalines and SSA Washington State. — VNS

VN investment potential in Laos untapped

HCM CITY — Although trade between Viet Nam and Laos has increased significantly in recent years, investment remains at a low level despite the large potential that exists, according to the Viet Nam Economic and Cultural Office in Laos.

As of May, Viet Nam ranked third in terms of foreign direct investment in Laos after China and Thailand, with total registered capital of US$2.4 billion and 216 licensed projects.

Vietnamese investment in 16 of the total 17 provinces of Laos focuses on the industry, agro-forestry, services, tourism, banking, power, mining, and insurance sectors.

Projects that have proceeded smoothly include the Sekaman 3 hydroelectric plant and rubber plantations.

Although these have been successful, many Vietnamese investors have encountered difficulties when doing business in Laos because of unclear laws, poor infrastructure and relatively low skill levels of labourers.

Bui Trong Dang, deputy director general of the Viet Nam National Coal, Mineral Industries Group's branch in Laos, said it was carrying out three mining projects in the country.

He said he needed about 2,000 workers for its steel project in Xiangkhoang Province and another 2,000 for a salt production project in Savanakhet Province. But the local workforce cannot meet the demand.

In addition, the global economic crisis last year and equitisation of State-owned enterprises have caused construction schedules to fall behind, said Hoang Cung Tho Nhan, chairman of the Viet Nam Business Association for Co-operation and Investment in Laos.

Despite the potential, bilateral trade between Viet Nam and Laos is not expected to reach $1 billion this year, since the figure was only $212 million in the first half, according to the association.

Laotian authorities must clarify basic procedures to promote further investment of Vietnamese enterprises, Vietnamese investors in Laos have suggested.

Duong Dinh Bang from the Viet Phuong Investment Group said Vietnamese investors in trade centres in Laos should speed up their construction so that more Vietnamese goods can be sold in the Laos market. — VNS

Monday, November 29, 2010

Mexico-Vietnam Business Committee holds first session

The first session of the Mexico-Vietnam Joint Business Committee (MVJBC) and a seminar on bilateral trade took place in Mexico city Tuesday as part of a working visit by a Vietnamese Defence Ministry business delegation.

The events were attended by Vietnamese Ambassador to Mexico Pham Van Que, Deputy Director of the Vietnamese Defence Ministry’s Economic Department Colonel Pham Viet Thich, President of the Mexico-ASEAN Business Committee Enrique Michel and President of the Asia-Pacific Directorate of the Mexican Business Council for Foreign Trade Sergio Ley.

Speaking at the events, Sergio Ley expressed his belief that the first meeting would help Mexican and Vietnamese businesses strengthen mutual understanding, thus laying the foundation for their effective cooperation agreements in the future.

Enrique Michel spoke highly of the Vietnamese economy’s firm progresses, reflected by its improved infrastructure, international tourism, food production and export, and international trade.

According to Michel, two-way trade between Mexico and Vietnam sharply increased from US$60 million in 2001 to $714 million in 2009.

He, however, noted that the Mexico-Vietnam trade relation still faces many challenges ahead that require both sides’ consensus and joint efforts.

Vietnamese Ambassador Pham Van Que said he was pleased to see that today Vietnamese consumers have better understanding about Mexican goods and vice versa.

Mexico is now Vietnam ’s largest trade partner in Latin America and the two countries have overcome geographical and language obstacles to further their bilateral ties, he added.

The first MVJBC session is the start of a long-term and mutual trust partnership for sustainable development between the two countries, the ambassador stressed.

Thursday, February 17, 2011

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