Mobifone tops list of biggest tax contributors

The Vietnam Report Company and online newspaper VietnamNet announced the
1,000 largest corporate income tax payers in Vietnam in a profile
released Sept. 22.

This is the first profile ever compiled for publication of Vietnam's top
corporate income tax contributors. The ranking aims to recognise and
honour enterprises for their good business performance and for their
significant contributions to the country's budget over three consecutive
years.

Information to compile the business profiles
was collected from business results and individual data by the Vietnam
Report Company in co-ordination with Taxation magazine of the General
Department of Taxation, and domestic and foreign consultants.

Rankings are based on the total corporate income tax paid over three consecutive financial years between 2007 and 2009.

The following are the top 10 corporate income tax contributors:

* Vietnam Mobile Telecom Services Company (Mobifone)

* Military-run Viettel Corporation (Viettel)

* PetroVietnam Gas Corporation (PVG)

* Joint Stock Commercial Bank For Foreign Trade Of Vietnam (Vietcombank)

* Petrovietnam Oil and Gas Group (PetroVietnam)

* Vietnam National Coal - Mineral Industries Group (Vinacomin)

* Vietnam Bank For Agriculture And Rural Development (Agribank)

* Vietnam Joint Stock Commercial Bank For Industry And Trade (Vietinbank)

* Prudential Vietnam

* Phu My Hung Corporation./.

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Toshiba industrial motor plant opens

Global electronics giant Toshiba Corporation opened a new industrial
motor manufacturing facility in Vietnam on Sept. 22, aiming to meet the
rising demand for high-efficiency, environmentally friendly motors.

The opening ceremony of the new production facility at the Amata
Industrial Park in southern Dong Nai province was attended by Deputy
Minister of Industry and Trade Hoang Quoc Vuong.

Toshiba Industrial Products Asia Co Ltd, Toshiba Corporation's Vietnam
subsidiary, began constructing the factory in April 2009 on
approximately 80,000sq.m of land. The completed facility has a floor
area of 24,000sq.m.

"We have set a target of
manufacturing 1.2 million motors a year by 2015, and expect a turnover
of 400 million USD," said Norio Sasaki, president and CEO of Toshiba
Corporation.

The alarm over global warming has
spurred demand for high-efficiency motors that consume less power and
emit less CO2, Sasaki said.

"The effect in reducing
CO2 discharge of 1.2 million high-efficiency industrial motors is around
200,000 tonnes, equivalent to planting 14 million trees," he said.

The plant expects to employ around 500 people when it operates at maximum capacity.

The manufacture of high-efficiency industrial motor requires many
materials including metal and plastic that the company can source from
the domestic market.

"Toshiba hopes to cooperate and use products of Vietnamese supporting industries," Sasaki said.

At present, the ratio of domestically-produced materials and
components is 33 percent, and they plan to increase this to 70 percent,
according to Norihiro Tsujioka, general director of Toshiba Industrial
Products Asia.

The current output of the new plant
is 7,000 motors, for which it employs 150 local employees. It expects to
increase its operating hours from the current eight hours a day to 16
hours by December, and 24 hours by next year.

The
manufacture and sale of motors meeting higher levels of efficiency than
current regional standards are expected to become mandatory in the
United States in December this year, and other governments are expected
to follow suit, Tsujioka said./.

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North in deficit as south runs surplus

Hanoi's trade deficit reaches nearly 10 billion USD, while HCM City
reaps a trade surplus of about 300 million USD in the first nine months
of this year, statistics offices in the two cities stated.

In Hanoi, the trade deficit almost doubles the export value, the
statistics office reports, adding that in the first nine months of this
year, the city is expected to earn an export revenue of 5.5 billion USD,
a year-on-year increase of 19.5 percent.

Meanwhile, the import value rises by 18.2 percent to 15.5 billion USD.

In September alone, Hanoi's trade gap is predicted to hit 1.08 billion
USD, up 70 million USD over August. Export revenue is expected to drop
0.3 percent against the previous month to 680 million USD, while import
turnover is expected to rise 1.3 percent to 1.76 billion USD.

“It is easy to understand why Hanoi has a big trade gap. It is a large
developing city with a high demand for machinery, equipment,
accessories and materials for construction projects," said an official
from the statistics office's trade section.

She,
however, added that in the first nine months of the year, huge sums are
spent on imported luxury goods such as cars, wine, cigarettes and
interior furnishings.

The Hanoi Statistics Office
earlier forecast that the capital would suffer a trade deficit of 13.8
billion USD in 2010, with exports earning just 7.6 billion USD and
imports 21.4 billion USD.

From January to September
2010, HCM City's import turnover is estimated to reach nearly 15.5
billion USD, a year-on-year increase of 12.6 percent. Its export value
is predicted to reach 15.8 billion USD, representing a year-on-year
increase of just 1 percent.

In the coming months,
export turnover should rise as market demand would typically rise in the
last months of the year, the city's Statistics Office stated. Although
HCM City experiences a trade surplus, the office reports that exporters
are encountering persistent difficulties.

Officials
said the price of raw materials is increasing, which would affect
exporters' competitiveness. They also said the city is suffering a
shortage of skilled workers and that some industries are facing material
shortages, both of which are hitting exports.

In September alone, the city's export revenue month-on-month drops 9.7 percent to 1.7 billion USD.

Meanwhile, the decrease in gold and crude export volumes also
contributed to the fall in the city's total export value, officials
said./.

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PM approves fishing industry strategy

The Prime Minister has approved the development strategy for Vietnam's fishing industry that will be completed by 2020.

The Government needs an estimated 57.4 trillion VND (2.9 billion USD) to
implement the strategy, according to Decision 1690/QD-TTg.

Under the plan, the fishing industry will be industrialised and
developed to increase output, improve quality, and enhance the
competitiveness.

The plan aims to improve
fishermen's living standards, protect the country's environment and
secure the country's coastline.

This strategy aims
to increase production by 8-10 percent per year and to export 6.5-7
million tonnes of seafood worth 8-9 billion USD by 2020.

Vietnam will focus on developing freshwater fish, molluscs, sea fish,
shrimp and crab sectors in the Red River Delta. The country will also
work to improve the tra fish and shrimp sectors in the East Sea and the
southern region so that the products are congruent with Global GAP
standards. Plants will also be built in central Vietnam to produce feed
that will sell domestically and in ASEAN.

The country will cooperate with ASEAN countries to develop the fishing industry, according to the strategy.

Vietnam expects to earn 4.5 billion USD in seafood exports this year.
The country earned 2.9 billion USD from seafood exports during the first
eight months of the year./.

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Shares stall on sluggish volumes

The VN-Index closed up a modest 0.13 percent Sept. 22 to 453.9 points,
while the volume of trade on the HCM Stock Exchange declined by a
whopping 42 percent from the previous day's level to just 33.3 million
shares, worth a combined 907 billion VND (46.5 million USD).

Decliners outnumbered advancers by 105-80, but a number of blue chips
managed gains, including Bao Viet Holdings (BVH), Vietcombank (VCB), Phu
My Fertiliser (DPM), Hoa Phat Group (HPG), Kinh Bac City Development
(KBC), Kinh Do Corp (KDC) and PetroVietnam Finance (PVF).

Ocean Group (OGC) continued as the most-active share on the exchange,
although volume retreated to just 2.33 million shares, a decrease of
nearly 84 percent. OGC shares, meanwhile, dropped to their floor price
of 35,800 VND (1.85 USD)) per share.

On the Hanoi Stock Exchange, the HNX-Index closed largely unchanged at 131.53.

About 26 million shares changed hands, worth 655 billion VND (33.6
million USD) – a decrease of about 35 percent in both volume and value
from the previous day's levels, while losers outnumbers advancers by
176-99.

PetroVietnam Construction (PVX) continued as the most-active share on the northern bourse, with 2.1 million traded.

The gold market continued to draw investor attention, with the
domestic gold price hitting a new record high of 30.26 million VND
(1,552 USD) per tael on on Sept. 22, up 180,000 VND from a day earlier
(a tael is equivalent to 1.2 ounces). The world gold price, meanwhile,
topped 1,290 USD) per ounce overnight.

Foreign investors were net buyers on both bourses on Sept. 22, picking up 65.7 billion VND (3.4 million USD) worth of shares./.

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GIBC partners with Grant Thornton

Global Integration Business Consultants (GIBC) and Grant Thornton Vietnam (GT) announced their strategic alliance cooperation agreement in Ho Chi Minh City on Wednesday.

The event creates a significant milestone in the business consultation sector in Vietnam, said business people.

GIBC President Pham Phu Ngoc Trai expressed a hope that the alliance would create a combination of the companies’ strengths and potential to assist the restructuring of Vietnamese enterprises for sustainable development and global economic integration.

GIBC – a venue for experts in Vietnam’s business market and environment – pledges to assist customers’ sustainable development with professional consultation services on business strategies, investment and administration, communications and human resources development.

Grant Thornton Vietnam, a member of the International Grant Thornton Group, specializes in auditing, financial consultation and taxation. The group, one of the world’s leading auditing companies, is present in more than 100 nations.

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Warning of anti-dumping cases available on web

A website providing early warning of anti-dumping cases against Vietnam’s exports was launched Wednesday

The system – available at www.canhbaosom.vn – was built following the cooperation agreement between the Vietnam Competition Authority under the Ministry of Industry and Trade and the Global Competition Fund of Denmark.

As planned, in the first phase, the site will focus on five sectors – garments and textiles, footwear, seafood, wood products and electric cables – and two major markets, the US and EU.

In the second phase of the project, early warning information will be provided to businesses in 10 sectors which export their products to five markets, while the information will reach 20 sectors and 10 markets in the third phase.

The website will also include market analysis (on business request) and information for import and export.

Addressing the ceremony, Deputy Industry and Trade Minister Le Danh Vinh stressed the necessity for launching the system.

It not only helps local businesses cope with trade lawsuits effectively, but also warns them of the possibilities of anti-dumping lawsuits against their exports, he said.

In fact, anti-dumping cases have caused substantial negative effects to Vietnam’s economy, which can be seen in costs of hiring lawyers for consultancy and participating in the litigation process. Besides, export turnover will decrease considerably as importers tend to cut down the import of goods under investigation due to their worries of having to pay additional anti-dumping duties.

Deputy Minister Vinh said he hoped that the system will help Vietnamese enterprises better prepare and actively prevent possible cases as well as reduce losses caused by anti-dumping lawsuits.

The operation of the system will also help Vietnam keep and increase its export value, raising the competiveness of Vietnam’s industries in global markets, he said.

Danish Ambassador to Vietnam John Nielsen said the Southeast Asian country will have to face difficulties and challenges brought by the freedom of trade, aside from its own interests.

As a result, the early warning system will be an effective tool to increase Vietnamese exporters’ awareness.

He also asked Vietnamese enterprises to apply transparent accounting standards as proof against dumping accusations.

According to the Vietnam Competition Authority, Vietnam has had to cope with 31 anti-dumping lawsuits relating tra and basa fish (pangasius), shrimp and leather shoe since 1994.

 

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