New regulations out for business invoices

Businesses will be allowed to continue to use Ministry of Finance issued invoices until the end of first quarter next year, according to a newly issued instruction of Deputy Prime Minister Nguyen Sinh Hung.

The instruction amended the January 1 deadline in an attempt to deal with obstacles raised through the implementation of Decree No 51/2010/ND-CP, which allows most companies to print their own invoices instead of having to obtain them from official agencies.

The extension will help save money for those who bought the invoices from the Ministry of Finance but would not have used them prior to December 31 2010.

Under the instruction, Hung also agreed in principle with the Finance Ministry's proposal to continue selling ‘red' invoices to small-sized businesses and those in poor areas, who cannot afford to print invoices, until the end of next year.

These invoices serve as official proof of commercial transactions for tax and other purposes. However, small businesses will have to print their own invoices as of 2012.

The new instruction also stated that vouchers used in banking and marine services, which meet international regulations, will also be recognized for purposes of taxation.

According to current regulations, the vouchers are not recognized as invoices so banking and marine transportation businesses are still required to obtain ‘red' invoices to pay tax, wasting both time and money. More than 350,000 companies are expected to become eligible to print their own invoices.

Director of the General Taxation Office's Policy Department Cao Anh Tuan said besides providing greater freedom to companies to do business, the new policy would completely change business invoice usage.

It would also save the Government some of the costs it incurs in printing the invoices, while companies would not have to go through the rigmarole of obtaining them, Tuan said.

However, analysts warned there could be difficulties during the process.

Careful monitoring of the printing process was imperative to eliminate the possibility of fraud by print companies, they said.

Tax offices were set for a hard time as thousands of enterprises would register to print their own invoices, they added.

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Vietnam needs to improve corporate governance in banks: US advisor

Photo: Tuoi Tre

Vietnamese banks need to improve corporate governance to reduce the risks to the banking system among other benefits, a seminar in HCMC heard Wednesday

Speaking at the meeting sponsored by the State Bank of Vietnam and US Department of Treasury, Le Thanh An, the US consul in HCM City, said the Treasury had an agreement with the SBV to provide assistance in a number of areas, including corporate governance.

"The recent financial crisis is a compelling reminder of the critical importance of corporate governance and supervision of the banking system. No country's financial sector is perfect, but every country can seek to improve governance to make banking a stable pillar of the economy."

David Hawkins, the US Treasury banking advisor, said good corporate governance would create public trust and confidence in banks and the banking system.

"To have effective corporate governance, the board needs to establish good policies and procedures, goals that promote transparency, and systems to implement them and to control risks, have sufficient audit functions and good management information systems to keep informed of deficiencies and initiate corrective action when problems are noted."

Boards members should be and remain qualified, including through continued training, for their positions. They should have a clear understanding of their role in corporate governance and be able to exercise sound judgment about the affairs of the bank.

Under the direction of the board, senior management should ensure that the bank's activities are consistent with its business strategy, risk tolerance, and policies.

Banks should have an independent risk management function including a chief risk officer with sufficient authority, stature, independence, resources, and access to the board.

Risk management information should be tested for accuracy periodically.

The governance of a bank should be adequately transparent to its shareholders, depositors, other stakeholders, and market participants.

The role of the State Bank of Vietnam is to provide guidance to banks for effective corporate governance.

It has to regularly perform a comprehensive evaluation of banks' overall corporate policies and practices, and evaluate their implementation through inspecting internal reports.

The central bank should insist on effective and timely remedial action by banks to address material deficiencies in their corporate governance policies and practices.

 

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Investors remain skittish about economy

Stock indices fell on both of the nation’s stock exchanges on Sept. 29
despite the State Bank of Vietnam’s announcement this week resolving
investor uncertainly about Circular No 13, as well as economic growth
announced by the General Statistics Office (GSO) at a healthy 6.52
percent in the first nine months of the year.

On the HCM Stock
Exchange, the VN-Index closed down 0.48 percent to 452.94 points,
despite rising throughout most of Sept. 29’s session. Over 33 million
shares were exchanged, worth 896.1 billion VND (46 million USD) – a
decline of 15 percent in volume and 10 percent in value.

Decliners outnumbered advancers by 173-42.

Ocean
Group continued as the most-active share on the southern bourse on a
volume of just around a million shares, closing unchanged at 32,200 VND
(1.65 USD).

Of the 10 leading shares by
capitalisation, insurer Bao Viet Holdings (BVH), Eximbank (EIB) and real
estate developer Vincom (VIC) posted gains, while software giant FPT
(FPT), Sacombank (STB), and developers Hoang Anh Gia Lai (HAG) and Masan
Group (MSN) declined.

On the Hanoi Stock Exchange, the HNX-Index
fell by an even more substantial 2.12 percent to close the day at just
127.41 points. Market value declined by 14 percent to 842.7 billion VND
(43.2 million USD) on a volume of 33.54 million shares, while losers
outnumbered gainers by an overwhelming 264-38.

PetroVietnam
Construction (PVX) resumed its role as the most-active share nationwide
with 2.57 million shares traded, but the shares closed down 2.9 percent
to 23,300 VND (1.95 USD).

VNDirect Securities Co
analyst Pham Vu Dong on Sept. 29 told financial information website
cafef.vn that, excluding growth, all other economic indicators were
unfavourable. He noted high inflation in September and a trade deficit
that could reach 13.5 billion USD by year’s end, along with sluggish
credit growth.

“The domestic economy is unlikely to undergo a sudden turna-round in the remaining months of the year,” Dong said.

Gold
prices continued to lure investors away from stocks, as well, with
domestic gold prices hitting another record high on Sept. 29 at over 31
million VND (1,590 USD) per tael. (A tael is equal to 1.2 troy ounces).

ACB
Securities Co analysts also noted that Circular No 19, which
supplements Circular No 13, retained the risk coefficient ratio for
securities at 250 percent, a level unlikely to encourage banks to loan
further funds for securities investment.

Foreign investors
continued as net buyers on both exchanges on Sept. 29, picking up 38.5
billion VND (2 million USD) worth of shares./.

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iPhone 4 flies off the shelves

Hopeful customers line up at a Vinaphone outlet in HCMC to buy the iPhone 4

Photo: tinhte.vn

Vinaphone and Viettel have reported brisk sales of the iPhone 4 which they began selling today.

Vinaphone’s 500 handsets were gone by 8:30 am, an hour after the showrooms opened, while Viettel sold its last phone at 9 am.

Vinaphone is offering the unlocked version of the 16-gigabyte model at VND13.4 million (US$688) to post-paid buyers and the 32-gigabyte model at VND15.6 million.

In case of prepaid packages, they cost a million dong more.

Viettel is offering them at VND13.9 million and VND16.1 million for both prepaid and post-paid versions. The military-run operator is also offering locked versions to be used on its own network at VND600,000 less.

Vinaphone’s post-paid packages cost more or less depending on the period customers pledge to use – 12 or 24 months.

The higher the tariff, the more the benefits, Vinaphone said.

The company has imported only 450 handsets and they were only available for post-paid users in Hanoi, Ho Chi Minh City, and Danang.

Viettel offers plenty of freebies on its post-paid packages.

It claims to have imported only around 550 handsets and this morning it began selling by selecting customers through a draw of lots.

At a Vinaphone shop in HCMC, a customer reported his pocket was picked when he was standing in the queue for the phone and he lost VND19 million.

Meanwhile, with the two operators announcing competitive prices for unlocked iPhone’s, the phone’s price at shops has slipped to VND15 million/VND15.8 million for the locked /unlocked 16GB version and VND17 million/VND18.7 million for the 32GB version from VND17 million - VND20 million.

The shops have also stopped importing iPhone 4s to watch VinaPhone and Viettel’s next moves.

Some fear that the shops will simply buy from VinaPhone and Viettel since the latter’s prices are lower.

Officials from the two companies, however, told newswire Vnexpress that they are aware of this possibility and will not allow anyone to buy several phones.

They also plan to import more handsets, with Vinaphone saying it will get its next consignment on October 5.

Posters on online tech forums claim the two operators have imported more than what they have announced and are playing cagey to observe the market response.

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Vietnam, Kuwait target energy, food partnership

Minister of Industry and Trade Vu Huy Hoang and Kuwaiti Minister of Oil and Information Sheikh Ahmad Al-Abdulla Al-Sabah have discussed measures to boost bilateral ties, especially in trade, investment, energy and infrastructure construction.

During their talks in Hanoi Wednesday, the two sides agreed to strengthen bilateral cooperation in other sectors besides oil and gas, including electricity, mechanical engineering, shipbuilding and food processing.

According to Minister Hoang, the economic-trade relations between Vietnam and Kuwait have seen positive developments since the two countries established diplomatic ties in 1976 with two-way trade exceeding 100 million USD per year.

He expressed his belief that with their existing potentials, the two countries will have a close and long-term cooperation on the principle that Kuwait helps Vietnam ensure energy security and Vietnam helps Kuwait ensure food security.

Regarding financial and investment cooperation, through the Kuwait Fund for Arab Economic Development, Vietnam has inked seven agreements borrowing US$110 million from Kuwait for infrastructure construction.

Vietnam exported dairy products, seafood, tea, garment, coffee and ceramics to Kuwait while importing petrol, chemicals and fertiliser from the Middle East country.

In the oil and gas sector, the Vietnam National Oil and Gas Group (PetroVietnam) has signed an agreement with the Kuwait Oil and Gas Corporation and a Japanese partner to take part in the Nghi Son Petrochemical Refinery Complex project.

In addition, PetroVietnam has also sent delegations to seek investment opportunities in oil and gas exploration and exploitation in Kuwait .

Meanwhile, the Vietnam National Petroleum Corporation (Petrolimex) has signed a long-term contract with its Kuwaiti partner on diesel provision. In 2010, the two-way trade volume is expected to reach 500,000 MT worth nearly $320 million.

On the same day, the Kuwaiti delegation had a working session with PetroVietnam on bilateral cooperation in the oil and gas sector, focusing on speeding up the Nghi Son project.

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US DOC’s proposals hamper Vietnam exports

Photo: Tuoi Tre

The US Department of Commerce’s recent proposals to tighten anti-dumping and anti-subsidy regulations applicable to the non-market economies will influence Vietnamese industries, producers and exporters.

The warning was given by the Trade Remedies Council (TRC) under the Vietnam Chamber of Commerce and Industry (VCCI) at a discussion on the issue in Hanoi Wednesday

DOC announced 14 proposed changes to strengthen trade law enforcement and assist US companies’ competition on August 26.

According to the TRC President Dinh Thi My Loan, as the US considers Vietnam a non-market economy, not only Vietnam ’s major hard currency earners, including seafood, garment and footwear but also sectors with low export value would be exposed to litigation risk if the US ’s new regulations apply.

In other words, Vietnam may face more anti-dumping lawsuits in the future if the regulations are enforced, said US lawyer William H. Brringer.

At the moment, several of Vietnam ’s agricultural and aquacultural products and PE bags exported to the US are being sued for anti-dumping, he said.

The increase in the exports of Chinese commodities made in Vietnam is also an attributor to the risk, the lawyer said.

To avoid the bad effects for Vietnam ’s exports, local exporters should be well-prepared, especially in terms of proofs, to cope with anti-dumping and anti-subsidy lawsuits, according to experts.

For this purpose, experienced lawyer Barringer advised Vietnamese enterprises to consult the TRC and the Competition Management Department under the Ministry of Industry and Trade as well as strengthen cooperation with trade associations.

 

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Russia to provide ESPO crude oil for Vietnam

Photo: Reuters

Russia’s TNK-BP Oil Group will provide the first shipment of 100 tons of crude oil for the PetroVietnam Oil Corporation (PV Oil) via the Eastern Siberia-Pacific Ocean (ESPO) in November this year.

To this effect, a contract was signed between PV Oil General Director Nguyen Xuan Son and Deputy Chairman of TNK-BP’s Management Board Maksim Barskiy in Moscow on September 29 at the presence of Vietnamese Deputy Prime Minister Hoang Trung Hai.

Speaking after the signing ceremony, Deputy PM Hai expressed his hope that the partnership between PV Oil and TNK-BP will further develop and harvest more results in the future.

He stressed that the signing of the ESPO crude oil contract will be the foundation for the two sides to expand cooperation, including the exchange of experiences in crude oil trading and processing.

The Deputy PM declared that the Vietnamese government supports the cooperation between PetroVietnam and TNK-BP in exploring and exploiting oil and gas in the two countries’ territories and in third countries.

PV Oil General Director Nguyen Xuan Son said he hoped that after the signing, TNK-BP will continue to participate in oil processing, refinery and distribution in Vietnam .

The contract was an initial step for the two companies to sign other agreements in order to boost cooperation and mutual investment, he added.

According to PetroVietnam General Director Phung Dinh Thuc, PetroVietnam considers Russia a strategic area and with the contract, TNK-BP has become the third biggest partner of PetroVietnam and PV Oil, after Zarubezhneft and Gazprom.

He informed that the first oil stream resulting from the cooperation between PetroVietnam and Zarubezhneft will run in the next several days.

PetroVietnam has so far signed 20 oil and gas contracts with foreign companies, he added.

 

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