Vietnam Breaking News: Business

Showing posts with label Business. Show all posts

Showing posts with label Business. Show all posts

Dong Nai opens club for coffee growers

Dong Nai opens club for coffee growers
<p>A club for coffee growers to share their cultivation knowledge and experiences has made its debut in the southern province of Dong Nai.</p>
<p>It has attracted over 100 coffee farmers from the Central Highlands provinces of Dak Lak, Dac Nong, Lam Dong and Gia Lai, who will regularly discuss vital issues including agronomic seasonal concerns, weather forecast, pests, diseases, weed management as well as market prices and export conditions.</p>
<p>Bayer CropScience Vietnam will provide training and organise seminars featuring agronomists and experts on sustainable coffee production, innovative pesticide solutions to improve yield, quality and profits.</p>
<p>Pham Xuan Quang, a club’s manager, said, “This is a useful forum for better coffee yields.”</p>
<p>The English language daily Viet Nam News quoted Torsten Velden, Bayer CropScience’s country division as saying that as coffee is second only to rice in value of agricultural products exported from Vietnam, they would like to support this further.</p>
<p>“With the launch of the club, we aim to create a forum where key coffee growers in Vietnam can reflect and develop their professional aspirations in the field, and eventually help increase yield, quality, and profit in a sustainable manner,” he said.</p>
<p>The opening of the club follows a programme called Bayer Much More Coffee, which was started in 2013 to improve agronomy methods and make efficient use of crop protection inputs.</p>
<p>The programme was developed with the Western Highlands Agriculture and Science Institute and has been tested and proven with the support of coffee farmers.</p>
<p>Coffee farmers taking part in the programme have seen their profits increase by at least 25 percent compared to normal practices, the company said.-VNA</p>
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Dong Nai opens club for coffee growers Related image(s)<br />
<img height="200" src="http://ift.tt/1eWmqbm" width="200" /><br />

Dong Nai opens club for coffee growers

Dong Nai opens club for coffee growers

Dong Nai opens club for coffee growers A club for coffee growers to share their cultivation knowledge and experiences has made its debut in ...

Operator of Vietnam’s sole refinery seeks for further tax cut for imported diesel oil

Operator of Vietnam’s sole refinery seeks for further tax cut for imported diesel oil
<p><strong><a href="#http://bit.ly/1DRE3V7">Binh Son Refining and Petrochemical JSC (BSR), the operator of Vietnam’s sole operational oil refinery of Dung Quat</a>, has sought for further reduction in import tax levied on diesel oil because without the tax cut, diesel oil churned out by the facility cannot compete with that imported from ASEAN countries.</strong></p>
<div id="attachment_1669999" style="width: 510px" class="wp-caption aligncenter"><a href="http://bit.ly/1dCGjJM"><img alt="In a document submitted to the Ministry of Finance earlier this week, Dinh Van Ngoc, general director of the company, proposed a reduction of diesel import duties to below 10 percent. Currently, diesel oil produced by" class="attachment-medium aligncenter" height="295" rel="lightbox" src="http://bit.ly/1dCGjJM" width="500" /></a>
<p class="wp-caption-text">In a document submitted to the Ministry of Finance earlier this week, Dinh Van Ngoc, general director of the company, proposed a reduction of diesel import duties to below 10 percent. Currently, diesel oil produced by</p>
</div>
<p><a href="#http://bit.ly/1DRE3V8">the US$3 billion refienry</a> is subject to a 20 percent import tax, a 10-percent drop from the previous rate, though it is domestically made following a special financial mechanism applied to the refinery, which was commissioned in 2010.</p>
<p>Meanwhile, the import duties imposed on the similar petroleum product imported from ASEAN countries has dropped to 15 percent since this year following the integration roadmap in ASEAN Economic Community of Vietnam.</p>
<p>ASEAN members include Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Myanmar, Cambodia, Laos, and Vietnam</p>
<p>Thus, the price of diesel made by Dung Quat will be around US$10 per barrel more expensive than its regionally produced rivals, Ngoc said in the document.</p>
<p>With the current tax regime, diesel oil refined by Dung Quat cannot compete with that imported from other ASEAN countries, he added.</p>
<p>Diesel oil is the main product of the Dung Quat oil refinery, as it accounts for about 50 percent of the total output of the plant. As a result, if it is not sold well, the revenue of the plant will be affected, thus badly influencing state revenue.</p>
<p>Earlier this month, BRS also sent a document with the same import tax cut proposal for many kinds of petroleum products, stressing that the plant will shut down if there is no change in tax policies for those products.</p>
<p>BSR said in the document that many of its customers may switch to buying from other ASEAN countries, whose products are now cheaper thanks to the tax cut taking effect since the beginning of this year.</p>
<p>BSR’s parent company, state-run oil and gas giant PetroVietnam, has also lodged a similar complaint to the finance ministry, saying the ASEAN preferential tax treatment has caused Dung Quat fuel to be more expensive than imported products, thus reducing its competitiveness right on home soil.</p>
<p>On April 13, the Ministry of Finance issued a circular reducing the import taxes levied on gasoline and kerosene (from 35 percent to 20 percent), diesel oil (from 30 percent to 20 percent), fuel oil (from 35 percent to 25 percent) and jet fuel (from 25 percent to 10 percent).</p>
<p>Dung Quat currently produces 140,000 barrels of oil a day, or 6.5 million tons a year. Once it produces 10 million tons of oil per year, Dung Quat will account for 50 percent of Vietnam’s fuel supply. BSR reported VND150.41 trillion ($7.08 billion) in revenue in 2013.</p>
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Operator of Vietnam’s sole refinery seeks for further tax cut for imported diesel oil Related image(s)<br />
<img height="200" src="http://bit.ly/1dCGjJM" width="200" /><br />

Operator of Vietnam’s sole refinery seeks for further tax cut for imported diesel oil

Operator of Vietnam’s sole refinery seeks for further tax cut for imported diesel oil

Operator of Vietnam’s sole refinery seeks for further tax cut for imported diesel oil Binh Son Refining and Petrochemical JSC (BSR), the ope...

Efficiency from the peasant patriotic movement

Efficiency from the peasant patriotic movement
<p><b>During the past 5 years, thanks to innovation in leading and directing patriotic movements; many members and farmers in Son Hoa district have participated in the program and brought about practical effects. To date, hundreds of farmers to strive themselves to get rid of poverty, legitimatelybecoming rich by themselves and obtaining the title “farmers with excellent production and business at all levels”.</b></p>
<div id="attachment_1669945" style="width: 442px" class="wp-caption aligncenter"><b><a href="http://bit.ly/1dCGiWg"><img alt="Son Hoa District Farmers harvesting sugarcane" class="attachment-medium aligncenter" height="324" rel="lightbox" src="http://bit.ly/1dCGiWg" width="432" /></a></b>
<p class="wp-caption-text"><b>Son Hoa District Farmers harvesting sugarcane</b></p>
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<p>According to Son Hoa District Farmers’ Association, to make the patriotic movement actually permeate into the lives of each member and farmer, during the past 5 years, District Farmers Association has made innovations in contents, methods, ways of mobilization through proactive planning, launching and signing agreement to deploy three such movement as the peasant emulation movement in excellent production and business; uniting and helping each other get rich and decrease sustainable poverty; peasant emulation movement in new rural area construction and peasant participate in ensuring national defense – security. On that basis, the association’s facilities have implemented and sticked with movements of “Gratitude” “All people unite to build cultural life in residential areas” … which were positively responded by members, farmers. Chairman of Son Hoa District Farmers Association, So Minh Nghia, said that: “So far, under the new criteria, the district has 2,376 households obtain the title “farmers with excellent production and business at all levels”. In particular, at Central level there 25 households, 229 households at provincial level and district level has 593 households and 1,529 households reached communal level”.</p>
<p>According to Mr. So Minh Nghia, during the past 5 years, the association at all levels have collaborated with the District Station of Agricultural-Fisheris Extension, Chamber of Agriculture and Rural Development, Plant Protection Station, KCP Sugar Factory and Community Learning Center to open 33 training courses of scientific and technical transfer in planting and caring for plants and animals for thousands of members and farmers. Since then, many members, farmers have knowledge to apply in the planting model for cassava, sugarcane, rubber, pepper … bringing high efficiency. In addition, the association at all levels also came forward to entrust district transaction branches ofSocial Policy Bank and Agriculture and Rural Development Bank so that residents could access to preferential loans, investment conditions on plantations, livestock, expanding production modelsbringing high efficiency. Nay Y Oc in Suoi Trai commune is a typical example. More than 5 years ago, Y Oc’s family was one of the poor households in the locality. Although there was 3ha of land, he didn’t have money to buy sugarcane cultivars, so Y Oc only planted corn, cassava with very precarious income. In 2011, through Communal Farmers Association, Y Oc got 20 million dongs loan from the Bank for Social Policies to buy sugarcane cultivars. So far, Y Oc’s family hass escaped poverty, annual income reached hundred million dongs from sugarcane. Y Oc shared: “Thanks to the Party, State have concerned and facilitate that now my family is not poor anymore. Currently, my family life has significantly improved, our children feed and clothe properly”.</p>
<p>Mr. So Minh Nghia said, “Over the three years of implementing the National Target Program in building new rural areas, facilities of the association have mobilized people to contribute 1,200 working days and more than 1 billion dongs to build rural infrastructure. In addition, many people donated hundreds of meters of land to build schools, concrete roads. Notably,household of Y Thuk kPa (Ma Tin) at Thu village, donated 900m<sup>2</sup> of land to build schools”. According to Mr. Nghia, in the coming time, Farmers’ Association continues to promote propaganda, creating the unity of theentire population to promote stronger potential advantages, creativity and the making effort in patriotic emulation, hard-working to help promote the industrialization and modernization of agriculture and rural development.</p>
<p><b>Source: Phu Yen Newspaper</b><b>Translated by TRONG HAO</b></p>
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Efficiency from the peasant patriotic movement Related image(s)<br />
<img height="200" src="http://bit.ly/1dCGiWg" width="200" /><br />

Efficiency from the peasant patriotic movement

Efficiency from the peasant patriotic movement

Efficiency from the peasant patriotic movement During the past 5 years, thanks to innovation in leading and directing patriotic movements; m...

Surplus in international payment balance eases anxiety about dollar supply

Surplus in international payment balance eases anxiety about dollar supply
<p><em>VietNamNet Bridge – Vietnam expects to have a surplus of $5 billion in international payments in 2015, which means there will be enough dollar supply in the domestic market.</em></p>
<p>Ha Huy Tuan, deputy chair of the National Finance Supervision Council, noted that, though the dong has been devalued by one percent, the dong/dollar exchange rate is still under pressure.</p>
<p>The US dollar has been appreciating against other currencies, while the US FED reportedly is going to lift the dollar interest rate, possibly in June.</p>
<p>Le Dinh An from the Ministry of Planning and Investment believes the US dollar will continue rising, and the stronger dong will affect Vietnamese export competitiveness in the world market.</p>
<p>Meanwhile, commercial banks pay very low amounts for US dollar deposits. This prompts people to hoard dollars, which will influence the dollar supply-demand balance.</p>
<p>Dr. Tran Dinh Thien, head of the Vietnam Economics Institute, has suggested lifting the limit on the dong devaluation in 2015.</p>
<p>The State Bank earlier this year stated that the dong will not depreciate by more than two percent this year. Meanwhile, it has devalued the dong by one percent.</p>
<p>Thien believes there is no need to set a limitation on the exchange-rate adjustment.</p>
<p>According to the expert, foreign-invested enterprises, which make up 65 percent of total export turnover and make payments in US dollars, will not bear the exchange risks. But for Vietnamese enterprises, which mostly export raw products, it will have an effect.</p>
<p>Can Van Luc, a renowned economist, also noted that the central bank needs to be flexible in regulating the exchange rate policy.</p>
<p>“It needs to devalue the dong by more than two percent, more sharply than promised, if it is necessary,” he said.</p>
<p><strong>SBV: Vietnam capable of stable exchange rate</strong></p>
<p>Nguyen Thi Hong, Deputy Governor of the State Bank, said at the Spring Economic Forum on April 21 that the dollar price was planning to decrease.</p>
<p>The US dollar has been appreciating against the euro, pound and Australian dollar, while tending to depreciate against Asian currencies such as the Japanese yen, Chinese yuan and Thai baht.</p>
<p>Hong said the dollar price has dropped to VND21,582-21,583 per dollar, which is VND200 per dollar lower than the ceiling level of VND21,673 per dollar.</p>
<p>Meanwhile, there is no sign of dollar demand surge, which shows that the dollar price performance is within the State Bank’s control.</p>
<p>Replying to the economists’ opinions that it is necessary to devalue the dong further to support exports, Hong said the State Bank needs to consider many different factors, not only export and import, to decide whether to adjust the exchange rate.</p>
<p><strong><em>Pham Huyen</em></strong></p>
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Surplus in international payment balance eases anxiety about dollar supply Related image(s)<br />
<img height="200" src="http://ift.tt/1eWmqbm" width="200" /><br />

Surplus in international payment balance eases anxiety about dollar supply

Surplus in international payment balance eases anxiety about dollar supply

Surplus in international payment balance eases anxiety about dollar supply VietNamNet Bridge – Vietnam expects to have a surplus of $5 billi...

Will taxes and fees be raised to pay for “integration costs”?

Will taxes and fees be raised to pay for “integration costs”?
<p><em>VietNamNet Bridge – The Ministry of Finance’s warning about the lack of VND32 trillion for state budget expenditures this year has raised concerns among businesses, as the ministry could try to raise domestic taxes and fees to ease the deficit.</em></p>
<p><em><a href="http://bit.ly/1dCGiWc"><img alt="1670233-20150423100630-integration" class="attachment-medium aligncenter" height="375" rel="lightbox" src="http://bit.ly/1dCGiWc" width="500" /></a></em></p>
<p>Being a member of many free trade agreements, Vietnam will have to gradually cut many tax categories to zero percent, which will lead to a decrease in state budget revenue.</p>
<p>Since April 1, 2015, the import tariffs on 3,200 products from Japan have been cut to zero percent within the framework of the Vietnam-Japan Economic Partnership Agreement. The zero percent tax rate will be applied to many more products from the country in the time to come.</p>
<p>Since March 30, 2015, Vietnam has begun applying preferential tariffs on South Korean sourced imports within the framework of the ASEAN-South Korea Free Trade Agreement (AKFTA) with a tax rate of zero percent applied to many product items.</p>
<p>A survey on the possible impact of the AEC on Vietnam’s economy found that Vietnam would lose $320 million a year in import tax, or 75 percent of the total tax collected from ASEAN imports.</p>
<p>Raising domestic taxes and fees is the method the Ministry of Finance (MOF) plans to apply to offset the loss of revenue.</p>
<p>The decision on increasing the environmental fee by 300 percent was released a couple of weeks ago. The decision on raising the toll for the 30 kilometer Phap Van – Cau Gie highway to VND5 million at maximum was made some days ago.</p>
<p>The moves, as Dr. Le Dang Doanh commented, are the examples showing that MOF is trying every possible way to collect more money for the state budget.</p>
<p>A local newspaper quoted its source as saying that 102 fee collection stations would be set up in the next five years. In some localities, the distance between two fee collection stations could be less than 70 kilometers.</p>
<p>The source said that while the state budget is limited and the ODA (official development assistance) capital for transport projects is declining, the government would have to call for capital from private investors. And once private investors join transport projects, they would ask to raise fees to help them recoup the investment capital quickly.</p>
<p>The newspaper quoted an analyst as saying that local authorities, thirsty for capital for development projects, would also set up new kinds of fees and increase existing fees, to raise funds.</p>
<p>Meanwhile, the 2014 report on Vietnam’s tax collection released by Vietnam Report, a credit rating firm, showed that Vietnam’s tax collection level is higher than other regional countries, 20 percent vs 10-16 percent.</p>
<p><strong><em>Tran Thuy</em></strong></p>
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Will taxes and fees be raised to pay for “integration costs”? Related image(s)<br />
<img height="200" src="http://bit.ly/1dCGiWc" width="200" /><br />

Will taxes and fees be raised to pay for “integration costs”?

Will taxes and fees be raised to pay for “integration costs”?

Will taxes and fees be raised to pay for “integration costs”? VietNamNet Bridge – The Ministry of Finance’s warning about the lack of VND32 ...

Vietnamese lose bids for state contracts to foreign companies

Vietnamese lose bids for state contracts to foreign companies
<p><em>VietNamNet Bridge – While the State calls to use Vietnamese goods, state agencies refuse contractors that offer Vietnamese products.</em></p>
<p><em><a href="http://bit.ly/1dCGjtl"><img alt="1669739-20150427095001-bidding" class="attachment-medium aligncenter" height="304" rel="lightbox" src="http://bit.ly/1dCGjtl" width="470" /></a></em></p>
<p>Tran Thanh Trong, general director of Sang Ban Mai JSC (Sbmpower) in Binh Duong province, said his company has been disqualified from package deals funded by the state many times.</p>
<p>The company manufactures industrial power generators. With the locally made content proportion of 20-40 percent, its products are 20-30 percent cheaper than imports of the same kind.</p>
<p>In general, domestically made products are VND0.5-3 billion cheaper than imports. A Vietnamese 1000 KVA power generator, for example, is priced at VND2.8 billion, while an imported one is VND3.2 billion.</p>
<p>While Vietnamese private companies prefer Sang Ban Mai’s products to imports, state-owned enterprises and state-funded projects refuse its products.</p>
<p>Sbmpower lost bids for projects funded by the state three times and lost many other opportunities. The company has provided information about the bids to the Ministry of Planning and Investment’s Bidding Management Agency.</p>
<p>The investor of the project to install a medium-voltage power transmission line in Dong Nai province, when inviting for a bid in 2013, clearly announced that the machines must be sourced from Singapore, South Korea or Thailand. As a result, Sbmpower could not win the bid.</p>
<p>The company also lost another bid in Vinh Long province, because the investor stated that synchronous-motor machines must be imports.</p>
<p>At another bid, the investor announced that the equipment to be used for the project must be imports under the mode of complete built unit (CBU).</p>
<p>Trong said that Sbmpower would not join the bids to be called by state-owned enterprises or state-funded projects, because it is sure of failure because of the discriminatory treatment.</p>
<p>The package deals of supplying power generators to Dong Nai General Hospital and Power Construction and Installation Company No 1 are among eight package deals suffering from discriminatory treatment as reported by Sbmpower.</p>
<p>An analyst noted that the investor set “strange” requirements. For example, it only accepted power generators manufactured by foreign companies which have strong brands and have been operating for more than 45 years.</p>
<p>The analyst noted that in most cases Vietnamese companies cannot win the bids because the investors only accept imported products, or because the products offered by Vietnamese companies are not cheap enough.</p>
<p>“Vietnamese products would be accepted only if they are ‘dirt cheap’, i.e. cheaper than imports by more than 40 percent,” he explained.</p>
<p>“If they cannot save more than 40 percent of expenses, they would rather use expensive imports,” he said, adding that in Vietnamese thoughts, foreign-made products are always much better than domestically made ones.</p>
<p><em>PL TPHCM</em></p>
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Vietnamese lose bids for state contracts to foreign companies Related image(s)<br />
<img height="200" src="http://bit.ly/1dCGjtl" width="200" /><br />

Vietnamese lose bids for state contracts to foreign companies

Vietnamese lose bids for state contracts to foreign companies

Vietnamese lose bids for state contracts to foreign companies VietNamNet Bridge – While the State calls to use Vietnamese goods, state agenc...

Southern region – a major contributor to Vietnam’s economy

Southern region – a major contributor to Vietnam’s economy
<p><a href="http://bit.ly/1dCGjth"><img alt="1669752-avatar" class="attachment-medium aligncenter" height="199" rel="lightbox" src="http://bit.ly/1dCGjth" width="300" /></a></p>
<p>Ho Chi Minh Cityis now an economic, cultural, and scientific-technological hub of Vietnam and the nucleus of the southern key economic region (Photo: VNA)</p>
<p>Southern Vietnamese provinces and cities have made great economic strides over the last four decades since the region’s liberation and the national reunification in 1975, substantially contributing to Vietnam’s development.</p>
<p>An array of industrial hubs have been created in the south, which used to house only small-scale mechanical industry mainly serving military purposes, said Vice Chairman of the National Assembly’s Committee for Economic Affairs Nguyen Duc Kien.</p>
<p>Ho Chi Minh City, formerly known as Saigon, is now an economic, cultural, and scientific-technological hub of Vietnam and the nucleus of the southern key economic region. It contributes about one fifth of the national GDP and one third of the State budget every year.</p>
<p>Ba Ria-Vung Tau province, which used to be an underdeveloped area, currently accommodates an oil and gas industrial park along with the largest maritime service cluster of Vietnam.</p>
<p>Binh Duong province has followed a similar path, becoming a modern industrial locality following its ‘doi moi’ (renewal) efforts and the country’s international economic integration.</p>
<p>With agricultural advantages, southwestern provinces have helped ensure food security and contributed to the nation’s export of 6 million tonnes of rice and 8 billion USD worth of aquatic products each year.</p>
<p>The southern key economic region, the biggest of its kind in Vietnam, consists of HCM City and the provinces of Dong Nai, Ba Ria-Vung Tau, Binh Duong, Binh Phuoc, Tay Ninh, Long An, and Tien Giang.</p>
<p>The General Statistics Office said this region accounts for some 17 percent of population and more than 8 percent of total area of Vietnam. Its production makes up 42 percent of the national GDP and nearly 40 percent of export revenue. The region contributes some 60 percent to the State budget.</p>
<p>Under a master plan approved by Prime Minister Nguyen Tan Dung in early 2014, the economic region’s industry, construction, and service sectors will constitute 95-96 percent of its GDP with services making up 44 percent by 2020.</p>
<p>Average per capita GDP will reach up to 4,000 USD in 2015 and exceed 5,000 USD by 2020. Meanwhile, per capita export value is expected to increase to 3,700 USD and 5,400 USD, respectively.</p>
<p>By 2030, the region is set to be a role model of sustainable development with an advanced knowledge economy. It will also become an economic hub of Asia and a global commercial, financial and service centre.</p>
<p>To realise these ambitious goals, the regional localities need to speed up economic restructuring with a focus on improving productivity, product quality, and business competitiveness, said To Dinh Tuan, Editor in Chief of the HCM City Party Committee’s website.</p>
<p>They should develop infrastructure and high-quality human resources, a better business climate and attract more foreign direct investment in fields that they have advantages in, he added, noting that they must ensure good connectivity within the region and with localities outside.</p>
<p>Regarding HCM City, Chairman of the Party Central Committee’s Commission for Economic Affairs, Vuong Dinh Hue, said the city needs to strive for more rapid and sustainable economic growth.</p>
<p>He pointed out problems facing the city, including enterprises’ low competitiveness and the disparity between infrastructure development and economic growth rate and living conditions.</p>
<p>Holding a pivotal role, HCM City is able to guide the development of the southern key economic region, which in turn will be a powerful driver of the south and Vietnam as a whole, Hue noted.-VNA</p>
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Southern region – a major contributor to Vietnam’s economy Related image(s)<br />
<img height="200" src="http://bit.ly/1dCGjth" width="200" /><br />

Southern region – a major contributor to Vietnam’s economy

Southern region – a major contributor to Vietnam’s economy

Southern region – a major contributor to Vietnam’s economy Ho Chi Minh Cityis now an economic, cultural, and scientific-technological hub o...

Vietnam strives to improve SOE equitisation efficiency

Vietnam strives to improve SOE equitisation efficiency
<p>Vietnam is grappling with inefficiencies as it works towards the equitisation of State-owned enterprises (SOEs).</p>
<p>Vietnam has carried out continual reforms over the past two decades, reducing the number of SOEs from more than 12,000 in the 1990’s to the current 5,600, only 800 of which are completely owned by the State.</p>
<p>However, the proportion of equitised funds at privatised firms is still limited, even less than 5 percent at some major groups.</p>
<p>Minister of Planning and Investment Bui Quang Vinh said since 95 percent of the stake in those instances are owned by the State, their operations and administration remain unchanged despite their privatisation.</p>
<p>Director of the Central Institute for Economic Management Nguyen Dinh Cung said the critical question is not the number of equitised SOEs but rather how to improve the management and use of the State capital at those firms as well as the efficiency of their administration, production, and business activities, he added.</p>
<p>Minister Vinh said the SOE privatisation will not be efficient unless the presence of shareholders is increased and they are capable of changing the business administration.</p>
<p>Many economists pointed to an excess of objectives set for SOEs as an obstacle to their performance. Meanwhile, almost all SOEs are operating in various fields and have complicated finances, demanding too much time to prepare and call for major investors.</p>
<p>To enhance equitisation, the Ministry of Finance plans to deploy an array of measures such as pushing SOE equitisation according to sectors regardless of their management agencies and turning enterprises unqualified for independent business into subsidiaries of economic groups or corporations.</p>
<p>Director of the Vietnam Institute for Economics Tran Dinh Thien underscored the necessity of adjusting equitisation targets and pace to focus on the ultimate goal of improving business performance, thus promoting the economy’s competitiveness and restructuring.</p>
<p>SOEs currently contribute 85 percent of Vietnam’s electricity and oil and gas output, 90 percent of telecommunication services, and 56 percent of financial and credit services.</p>
<p>The SOE equitisation is part of efforts of SOE restructuring under the economic restructuring scheme stated in the National Assembly’s Resolution No.10/2011/QH13 on the socio-economic development plan for 2011 to 2015. Public investment and the banking system are also undergoing restructuring.-VNA</p>
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Vietnam strives to improve SOE equitisation efficiency Related image(s)<br />
<img height="200" src="http://ift.tt/1eWmqbm" width="200" /><br />

Vietnam strives to improve SOE equitisation efficiency

Vietnam strives to improve SOE equitisation efficiency

Vietnam strives to improve SOE equitisation efficiency Vietnam is grappling with inefficiencies as it works towards the equitisation of Stat...

Higher bank stakes for foreigners mulled

Higher bank stakes for foreigners mulled
<p><em>The Government asked the State Bank of Viet Nam (SBV) and other government agencies to come up with changes to current regulations to promote foreign ownership in Vietnamese commercial banks, said Nguyen Van Nen, Chief of the Government Office at a meeting last Saturday.</em></p>
<p>Nen said that foreign investors are currently not allowed to put more than 30 per cent of charter capital in a Vietnamese commercial bank.</p>
<p>He said that the move to update regulations comes as Viet Nam tries to create a more inviting environment for foreign investors to set up long-term businesses in the country.</p>
<p>Financial institutions in the country also need restructuring to improve administration, working efficiency and their bad-debt ratios, he added.</p>
<p>The State Securities Committee declined to comment on the story.</p>
<p>One of the recent tactics used to achieve the restructuring requested by the government is widespread merging.</p>
<p>The SBV went on a campaign, merging with weaker banks and thereby reducing the field from 35 in 2014 to the current 20 banks.</p>
<p>The merger trend is not ending. Mekong Housing Development Bank (MHB) will merge with the Bank for Investment and Development of Viet Nam (BIDV) next month and Petrolimex Group Commercial Joint Stock Bank (PG Bank) will merge with Vietinbank later this year.</p>
<p>Experts said that more mergers will continue in Viet Nam in order to strengthen the country’s banking system.</p>
<p>After all the mergers, the Central Bank managed to limit their bad-debt ratio to 3 per cent this year.</p>
<p><em>VNS</em></p>
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Higher bank stakes for foreigners mulled Related image(s)<br />
<img height="200" src="http://ift.tt/1eWmqbm" width="200" /><br />

Higher bank stakes for foreigners mulled

Higher bank stakes for foreigners mulled

Higher bank stakes for foreigners mulled The Government asked the State Bank of Viet Nam (SBV) and other government agencies to come up with...

Private surgeries are more profitable than hospitals

Private surgeries are more profitable than hospitals
<p><em>VietNamNet Bridge – More and more private medical consulting rooms have been set up and have been running smoothly, but many private hospitals have reported big losses.</em></p>
<p><a href="http://bit.ly/1DRE3ED"><img alt="1669564-20150423101112-hospital-invest" class="attachment-medium aligncenter" height="320" rel="lightbox" src="http://bit.ly/1dCGiFI" width="500" /></a></p>
<p>T., who suffered a stomach ache, wanted to be examined by a good doctor who works for a state-owned hospital. However, he finally decided to go to a private clinic. The doctors there are regular members of CR Hospital, a prestigious state-owned hospital.</p>
<p>At the clinic, T was told that he would undergo an endoscopic operation, for which he had to pay VND1.2 million. The examination showed there was problem with a part of his stomach. Therefore, the physician decided to cut the problematic part and send tissues for biopsy, for which he had to pay VND250,000.</p>
<p>As such, T had to pay a total of VND1.5 million. The problem was diagnosed and he received prescriptions just within several hours.</p>
<p>T. was told by the doctors that he needs to take the medicine as prescribed and if his conditions improve, he needs to continue to follow the same remedy without having to go back to the clinic for re-examination.</p>
<p>As such, he will not have to go to clinic several times, something he would have to do if he went to a state-owned hospital. Though he had to pay VND1.5 million for the service, he was satisfied with the service quality and the way the doctors and nurses treated him.</p>
<p>When asked why he did not go to a hospital which has a larger operation scale than a consulting room, T said he doesn’t like state-owned hospitals, where doctors are quick-tempered because of overwork, and he doesn’t think he can afford the expensive services at private hospitals.</p>
<p>“I think hospitals will charge higher because hospitals have higher investment rate than clinics,” he said. Meanwhile, T believes that clinics are well equipped with modern material facilities and qualified physicians.</p>
<p>Analysts have noted that the major clients of clinics are middle-income earners, who want to avoid the inconveniences at state-owned hospitals and receive high-quality services at reasonable costs.</p>
<p>There are 38 general hospitals and 300 privately run clinics in HCM City. With the average investment rate of VND2.5-3 billion per bed, investors would have to spend at least VND300 billion on a 100-bed hospital. Meanwhile, it would be less costly to set up a clinic, just VND4-5 billion.</p>
<p>Regarding the administration cost, one would have to pay up to $2 million to establish a hospital, while he would have to spend VND100 million only for a clinic.</p>
<p>The prosperity of existing privately run clinics has prompted investors to expand clinic networks. Foreign investors have jumped on the bandwagon, cooperating with Vietnamese investors and physicians to open foreign-invested clinics.</p>
<p><em>TBKTSG</em></p>
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Private surgeries are more profitable than hospitals Related image(s)<br />
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Private surgeries are more profitable than hospitals

Private surgeries are more profitable than hospitals

Private surgeries are more profitable than hospitals VietNamNet Bridge – More and more private medical consulting rooms have been set up and...

Vietnam to open doors for private investment in railway infrastructure

Vietnam to open doors for private investment in railway infrastructure
<p><strong>The <a href="#http://bit.ly/1G7ZBxr">Vietnam Railways Corporation (VRC)</a> on Monday put forward <a href="#http://bit.ly/1bvVC68">a proposal to allow private investors to build logistic facilities and offer associated services in three railway projects under the public private partnership (PPP) model</a> in a meeting on implementing the PPP in <a href="#http://bit.ly/1bvVC6a">railway infrastructure</a> in Hanoi.</strong></p>
<p><a href="http://bit.ly/1G7ZBxs"><img alt="1665763-tbxboone" class="attachment-medium aligncenter" height="295" rel="lightbox" src="http://bit.ly/1G7ZBxs" width="500" /></a></p>
<p>Local media cited Tran Ngoc Thanh, chairman of the VRC, as saying that under the PPP mechanism, his corporation will be responsible for setting up transport infrastructure like unloading equipment, train stabling facilities, and warehouses at three stations Yen Vien (Hanoi), Dong Dang (Lang Son Province in the north), and Song Than (Binh Duong Province in the south).</p>
<p>Meanwhile, private firms will be allowed to invest in facilities to serve the transport of goods by rail, focusing on cargo yards, storage, cargo-handling equipment, and warehouse management systems, Thanh said.</p>
<p>Regarding business conditions, investors from the private sector can collect fees for the services they offer, based on a price frame approved by the state and the VRC, Thanh said.</p>
<p>According to the chairman, the introduction of the PPP model in railway services will help change the current mindset of the industry: only VRC subsidiaries are allowed to join.</p>
<p>“VRC subsidiaries have been favored when it comes to investing in those projects, but the situation will change. We are inviting investors from the private sector, and even allow them to buy trains to run on the railroads we built and use the associated services we are offering,” <em>Thanh Nien</em> (Young People) newspaper quoted him as saying at the meeting.</p>
<p>He named some firms like Vingroup, Bach Dang, Indo Tran Logistics, and ATH Express Trains Ltd.</p>
<p><strong>Poor performance</strong></p>
<p>The existing mechanism only allows state-run firms to develop railway infrastructure and offer related services so the business performance of the rail sector has been so poor, <em>Lao Dong</em> (Labor) newspaper said.</p>
<p>As a result, the sector has been unable to attract private investors, the newspaper remarked.</p>
<p>Currently, the railway sector generates around VND400 billion (US$18.4) a year, but its cost amounts to VND2 trillion ($92 million).</p>
<p>Vice Minister of Transport Nguyen Ngoc Dong said that his ministry will coordinate with other relevant agencies to review and amend the Railway Law in order to renovate the sector.</p>
<p>The Ministry of Transport will transfer the rights to operate the entire Hanoi-Lao Cai railroad route to private investors in the near future, he said.</p>
<p>Tran Tuan Anh, a representative of Indo Tran Logistics, said the firm wants to join in railway transport development as a good logistics supply chain cannot be complete without railways.</p>
<p>A Vingroup representative, Tran Thanh Son, said his company is eager to invest in railways for tourism development, but the country must have quality trains meeting European standards to cut the travel time to less than five hours and attract more passengers.</p>
<p><strong>Legal framework</strong></p>
<p>Government Decree No.15, which regulates investment under the PPP form, was issued in February this year, opening up more opportunities for the participation of the private sector in many fields exclusively reserved for state-owned firms before, including infrastructure, electricity, water, education, transport, health, and the environment.</p>
<p>According to experts, the decree is a prerequisite for infrastructure projects, particularly in the area of transport, to be implemented more effectively.</p>
<p>At the meeting, Minister of Transport Dinh La Thang asked relevant state agencies to review existing laws, decrees, and circulars on railway management to ensure a legal basis for the implementation of the PPP by the end of the second quarter.</p>
<p>The private sector has seen the potential for investment in railways as they can both earn profit and improve the sector’s performance, he said.</p>
<p>Minister Thang also urged the VRC to speed up its restructuring and equitization.</p>
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Vietnam to open doors for private investment in railway infrastructure Related image(s)<br />
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Vietnam to open doors for private investment in railway infrastructure

Vietnam to open doors for private investment in railway infrastructure

Vietnam to open doors for private investment in railway infrastructure The Vietnam Railways Corporation (VRC) on Monday put forward a propo...

Indonesia proposes Asian-African Business Council

Indonesia proposes Asian-African Business Council
<p>Indonesia has proposed establishing a business council to strengthen trade ties between Asian and African business communities.</p>
<p>The initiative was put forward by the Indonesian Chamber of Commerce and Industry (Kadin) at the World Economic Forum on East Asia held in Indonesia from April 19-21.</p>
<p>According to Kadin President Suryo Bambang Sulisto, the formation of the Asia-Africa Business Council (AABC) is aimed to facilitate regular meetings between key business players in the two continents.</p>
<p>The president noted that collaboration between Asia and Africa has progressed and matched economic growth, with new economic and business cooperative opportunities opening up between the two continents.</p>
<p>According to Kadin statistics, with 75.3 percent of total world’s population and 28.5 percent of the world’s gross domestic product (GDP), the two continents have emerged as significant potential markets.</p>
<p>In keeping with the current development trend, it is necessary for nations to expand economic cooperation in imports-exports and investment flow as well as develop manufacturing industries.</p>
<p>With the establishment of the AABC, over 100 nations in Asia and Africa could boost links in economics and trade, creating a foundation and strengthening the two continents’ economies.-VNA</p>
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Indonesia proposes Asian-African Business Council Related image(s)<br />
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Indonesia proposes Asian-African Business Council

Indonesia proposes Asian-African Business Council

Indonesia proposes Asian-African Business Council Indonesia has proposed establishing a business council to strengthen trade ties between As...

CPI increases slightly in HCM City

CPI increases slightly in HCM City
<p>The Consumer Price Index (CPI) of the southern Ho Chi Minh City increased 0.03 percent in April from the previous month and 0.8 percent against the same period last year, according to the city’s Statistics Office.</p>
<p>The office said the increase was triggered by a sharp rise in the cost of transport, by 2.71 percent, followed by housing, electricity, water, fuel and building materials which increased by 0.29 percent; and culture-entertainment rose by 0.12 percent.</p>
<p>Price decreases were seen in post and telecommunications (0.17 percent), beverages (0.15 percent) and home appliances (0.02 percent).</p>
<p>Notably, food and restaurant services experienced the largest fall of 0.54 percent compared to the month before.</p>
<p>The price of gold increased by 0.11 percent while the US dollar exchange rate rose 0.43 percent.-VNA</p>
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CPI increases slightly in HCM City Related image(s)<br />
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CPI increases slightly in HCM City

CPI increases slightly in HCM City

CPI increases slightly in HCM City The Consumer Price Index (CPI) of the southern Ho Chi Minh City increased 0.03 percent in April from the ...

More and more SE Asian confectionery sold in Vietnam over 0% tax

More and more SE Asian confectionery sold in Vietnam over 0% tax
<p><strong>Many sweet products from Southeast Asian countries like Indonesia, Thailand or Malaysia have been shipped to sell in Vietnam as the tax on confectionery imported from Southeast Asia is now zero percent.</strong></p>
<p><a href="http://bit.ly/1bvVDad"><img alt="1665715-idqtiuak" class="attachment-medium aligncenter" height="295" rel="lightbox" src="http://bit.ly/1bvVDad" width="500" /></a></p>
<p>Imported confectionery products, whose price varies from VND11,000 (US$0.51) to over VND60,000 ($2.8), attract many local customers thanks to their diversity in terms of shape, color, taste, and flavor.</p>
<p>Thu Ha, a seller at a market in Ho Chi Minh City, said that the volume of foreign confectionery products has increased two to three times in the last two years.</p>
<p>Foreign confectionery firms encourage Vietnamese sellers to display as many products of theirs as possible and offer them various kinds of incentive in return, which is a way to make sweet imports more competitive in the local market.</p>
<p>The Vietnamese market is expected to be even more competitive as tax rates on confectionery imported from other Southeast Asian countries have been zeroed, according to experts.</p>
<p>Firms from other nations in the region have established their wide distribution networks and conducted many exploratory researches in Vietnam in recent years, they said, implying that domestic companies are facing mounting pressure.</p>
<p>A representative from Pham Nguyen, a company, said that Thailand is considered a “kingdom of sweets” in Southeast Asia as Thai firms are not only professional in product development and export but also fast in catching up with customer trends.</p>
<p>Vietnam still has to import raw materials including oil, butter, and sugar from other Southeast Asian countries, hindering local companies from decreasing their price to attract more customers.</p>
<p>“Vietnamese companies should actively learn from foreign firms’ strength and focus on the process of research and development. They need to optimize the use of current machines to make products with a competitive price and stable quality,” Vo Tri Thanh, a business expert, said.</p>
<p>Mondelez International Inc., a multinational confectionery conglomerate based in Illinois, paid $370 million in November 2014 to buy an 80 percent stake in Vietnamese company Kinh Do Corp’s snack business, resulting in a rearrangement in the balance of local and imported sweet products.</p>
<p>Mondelez International Inc. already has a small presence in Vietnam selling some of its Oreo, Ritz, and Cadbury products.</p>
<p>After the business deal, the conglomerate acquired two Kinh Do manufacturing facilities, as well as the Vietnamese firm’s distribution network.</p>
<p>Vietnam’s revenue from confectionery reached VND27 trillion ($1.25 billion) in 2014, an increase of 10.65 percent compared to 2013.</p>
<p>It is expected to top around VND40 trillion ($1.8 billion) with the estimated production of more than 200,000 tons in 2018.</p>
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More and more SE Asian confectionery sold in Vietnam over 0% tax Related image(s)<br />
<img height="200" src="http://bit.ly/1bvVDad" width="200" /><br />

More and more SE Asian confectionery sold in Vietnam over 0% tax

More and more SE Asian confectionery sold in Vietnam over 0% tax

More and more SE Asian confectionery sold in Vietnam over 0% tax Many sweet products from Southeast Asian countries like Indonesia, Thailand...

New laws contribute to improving business climate

New laws contribute to improving business climate
<p><a href="http://bit.ly/1G7ZyBz"><img alt="1665691-avatar" class="attachment-medium aligncenter" height="225" rel="lightbox" src="http://bit.ly/1G7ZyBz" width="300" /></a></p>
<p>Chairman of the National Assembly Economic Committee Nguyen Van Giau (Source: VNA)</p>
<p>Chairman of the National Assembly (NA) Economic Committee Nguyen Van Giau said the country has made a step forward in completing institutions for the market economy with the promulgation of a series of laws including the Law on Land Use, Law on Business, Law on Real Estate Trading and Law on Construction.</p>
<p>He underlined the transparency, specificity and up-to-dateness of the laws, saying that they facilitate business operation and economic development.</p>
<p>Giau made the statement in an interview granted to Vietnam News Agency correspondents on the sidelines of the seventh Spring Economic Forum in Vinh City in central Nghe An province, hosted by the Vietnam Chamber of Commerce and Industry (VCCI).</p>
<p>He stressed the need for administrative reform and improved public service to ensure effective implementation of relevant policies.</p>
<p>He highlighted the “from words to actions” slogan, saying that improving the business climate is an urgent issue in the economy and among businesses.</p>
<p>Part of the forum’s agenda is to collect experts’ comments on a document verifying the government’s socio-economic development report to be submitted to the NA, Giau said.</p>
<p>He expressed his hope that with straight and constructive comments from experts, appropriate amendments will be made to policies and regulations, ultimately resulting in positive improvements in the issues brought forth at the forum.</p>
<p>International experts have said Vietnam’s legal reform process is a positive improvement and in accordance with the domestic context, the chairman said.-VNA</p>
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New laws contribute to improving business climate Related image(s)<br />
<img height="200" src="http://bit.ly/1G7ZyBz" width="200" /><br />

New laws contribute to improving business climate

New laws contribute to improving business climate

New laws contribute to improving business climate Chairman of the National Assembly Economic Committee Nguyen Van Giau (Source: VNA) Chair...

Mexico, Vietnam drive Heineken sales at start of year

Mexico, Vietnam drive Heineken sales at start of year
<p><strong>BRUSSELS, April 22 — Heineken NV, the world’s third largest brewer, reported stronger than expected revenue growth in the first quarter on Wednesday, boosted by sales of Mexican lagers and drinking over the New Year in Vietnam.</strong></p>
<p><a href="http://bit.ly/1bvVCTH"><img alt="1665665-ijqt5de8" class="attachment-medium aligncenter" height="295" rel="lightbox" src="http://bit.ly/1bvVCTH" width="500" /></a></p>
<p>Heineken said consolidated revenue in the Jan-March period grew by 2.0 percent on a like-for-like basis to 4.34 billion euros ($4.66 billion), above market expectations.</p>
<p>Volume and revenue growth in the first quarter was far strongest in Asia, thanks to double-digit percentage expansion in Vietnam and Cambodia, followed by the Americas, where Heineken brews in Mexico and exports into the United States.</p>
<p>African and Middle East beer sales growth slowed to 0.9 percent from 10.3 percent a year earlier, partly due to low oil prices hitting consumer confidence in Nigeria.</p>
<p>In Europe, weak Russia and a duty increase in Italy resulted in lower sales in the region.</p>
<p>The brewer, which is aiming to improve its operating profit margin by around 40 basis points per year, retained its previous full-year outlook.</p>
<p>It has said it expects revenue to grow this year, but with slower expansion of beer sales than in 2014, when the soccer World Cup and emerging markets swelled the first half.</p>
<p>It also forecast in February that, all things being equal, it could gain 130 million euros in operating profit this year from the weaker euro.</p>
<p>Countering that, it expects a 25 basis point hit to its operating margin this year following its divestment of its Mexican packaging business.</p>
<p>Rival SABMiller, the world number two, said last week that it had sold more lager in the January-March period as demand rose in many emerging markets ahead of Easter holidays and sales in China recovered after poor summer weather. ($1 = 0.9316 euros)</p>
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Mexico, Vietnam drive Heineken sales at start of year Related image(s)<br />
<img height="200" src="http://bit.ly/1bvVCTH" width="200" /><br />

Mexico, Vietnam drive Heineken sales at start of year

Mexico, Vietnam drive Heineken sales at start of year

Mexico, Vietnam drive Heineken sales at start of year BRUSSELS, April 22 — Heineken NV, the world’s third largest brewer, reported stronger ...

Hanoi consumer prices up 0.2% in April

Hanoi consumer prices up 0.2% in April
<p><a href="#http://bit.ly/1G7Zyla"></a></p>
<p><a href="#http://bit.ly/1G7Zyla"></a><a href="http://bit.ly/1bvVCDn"><img alt="1665737-cad8cd630a23a6284fca4b25fcc20e11-l" class="attachment-medium aligncenter" height="225" rel="lightbox" src="http://bit.ly/1bvVCDn" width="400" /></a></p>
<p>A Hapro supermarket in Hanoi (Credit: Ha Noi Moi)</p>
<p>NDO – Hanoi’s consumer price index (CPI) in April went up 0.2% against the previous month and 0.74% year on year, the municipal statistical agency has announced.</p>
<p>This is second month that a rise in CPI was recorded after prices fell consecutively in the first two months of 2015.</p>
<p>Last month, consumer prices in the capital city climbed by 0.38%, after dropping 0.17% and 0.07% in January and February respectively.</p>
<p>The increases in the prices of petrol and electricity in March pushed up transport and utility costs by 2.5% and 1.84%.</p>
<p>Home appliances rose by 0.34% against March, while garments and footwear posted a one-month increase of 0.25%.</p>
<p>Food and dining services fell by 0.49% thanks to abundant supplies of grains, meat and vegetables.</p>
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Hanoi consumer prices up 0.2% in April Related image(s)<br />
<img height="200" src="http://bit.ly/1bvVCDn" width="200" /><br />

Hanoi consumer prices up 0.2% in April

Hanoi consumer prices up 0.2% in April

Hanoi consumer prices up 0.2% in April A Hapro supermarket in Hanoi (Credit: Ha Noi Moi) NDO – Hanoi’s consumer price index (CPI) in Apri...

Vinatex builds VND150 billion garment plant in Bac Lieu

Vinatex builds VND150 billion garment plant in Bac Lieu
<p><a href="#http://bit.ly/1G7ZAJS"></a></p>
<p><a href="#http://bit.ly/1G7ZAJS"></a><a href="http://bit.ly/1G7ZAJU"><img alt="1665592-7cabe57fd6673122903035583a6ea732-l" class="attachment-medium aligncenter" height="227" rel="lightbox" src="http://bit.ly/1G7ZAJU" width="400" /></a></p>
<p>At the ground-breaking ceremony for the garment plant in Bac Lieu</p>
<p>NDO – The Vietnam National Textile and Garment Group (Vinatex) on April 22 commenced construction of a garment plant at Tra Kha Industrial Zone in Bac Lieu.</p>
<p>The plant has an investment of VND150 billion (US$6.9 million), covering an area of over 4 hectares.</p>
<p>The plant will have an annual production of more than 5 million garment products and earn an estimated US$20-30 million in export revenue per year.</p>
<p>It is expected to begin operations in October 2015, generating jobs for nearly 2,000 local people.</p>
<p>The project aims to improve Vinatex’s chain of yarn-weaving and dyeing to help it be active in almost all stages of the garment supply chain, according to Vinatex Deputy General Director Pham Phu Cuong. It is also a key project of the garment group after the conversion to a joint stock company, he added.</p>
<p>The new plant is hoped to enhance competitiveness and production capacity as well as increase profits for Vinatex, creating positive impacts on the socio-economic development of Bac Lieu.</p>
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Vinatex builds VND150 billion garment plant in Bac Lieu Related image(s)<br />
<img height="200" src="http://bit.ly/1G7ZAJU" width="200" /><br />

Vinatex builds VND150 billion garment plant in Bac Lieu

Vinatex builds VND150 billion garment plant in Bac Lieu

Vinatex builds VND150 billion garment plant in Bac Lieu At the ground-breaking ceremony for the garment plant in Bac Lieu NDO – The Vietn...

Vingroup wants to buy three largest railway stations in Vietnam

Vingroup wants to buy three largest railway stations in Vietnam
<p><em>VietNamNet Bridge – Vingroup has submitted its proposal to buy the three largest railways stations in Vietnam – Hanoi, Saigon and Da Nang – to the Ministry of Transport.</em></p>
<p>The information was revealed by Minister of Transport Dinh La Thang at a meeting on Monday. He said that the ministry was considering Vingroup’s proposal.</p>
<p>“Da Nang has a plan to move the Da Nang Railway Station out of the center so the transfer of the rights to use the infrastructure of the old station is reasonable and harmonious. For the Hanoi and Saigon railway stations, we need to conduct research to modernize these stations, not by the State money,” Minister Thang said.</p>
<p>Thang asked the Vietnam Railway Corporation and related entities to consider the roadmap of selling the rights of use of railway stations to attract more investors and perform bids to choose the best ones.</p>
<p>At the meeting on Monday, Sungroup proposed to buy the operation rights of key train routes. Sungroup Chairman Tran Thanh Son said they would buy 20 new carriages to serve tourists.</p>
<p>“Sungroup is interested in trains running on the routes of Hanoi – Danang, Saigon – Danang, Hanoi – Lao Cai,” said Son.</p>
<p><strong><em>Dan Tri</em></strong></p>
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Vingroup wants to buy three largest railway stations in Vietnam Related image(s)<br />
<img height="200" src="http://ift.tt/1eWmqbm" width="200" /><br />

Vingroup wants to buy three largest railway stations in Vietnam

Vingroup wants to buy three largest railway stations in Vietnam

Vingroup wants to buy three largest railway stations in Vietnam VietNamNet Bridge – Vingroup has submitted its proposal to buy the three lar...

State Budget Collection via Banks: Mutual Benefits

State Budget Collection via Banks: Mutual Benefits
<p><a href="http://bit.ly/1bvVzHI"><img alt="1665540-2015422164426-thue" class="attachment-medium aligncenter" height="184" rel="lightbox" src="http://bit.ly/1bvVzHI" width="270" /></a></p>
<p><b>With practical benefits for taxpayers, banks and customs authorities, the coordination programme that facilitates budget revenue collection via banks is considered a breakthrough in tax administration reform. However, not many commercial banks and exporting-importing businesses use this method. Vietnam Business Forum interviewed Mr Le Manh Hung, Deputy Director of Export-Import Tax Department under the General Department of Vietnam Customs, on this issue. Le Hien reports.</b><i><strong>Reportedly, 19 out of 68 commercial banks and foreign bank branches have signed into the coordination programme on State budget collection via banks with the General Department of Vietnam Customs, and 56 percent of export and import taxes have been paid via 17 commercial banks. What do you think about these figures?</strong></i></p>
<p>Obviously, these figures are disappointing given the benefits of this programme. This is because exporters and importers do not have full understanding of benefits in paying taxes via commercial banks in cooperation with customs authorities, as well as benefits in paying taxes via commercial banks which are not coordinated by customs authorities.</p>
<p>Besides, not many banks have taken part in this coordination programme. Thus far, only 19 banks meet the infrastructure and technological conditions for engaging in the programme. Currently, the General Department of Vietnam Customs has also received a number of registration applications from banks for this service.</p>
<p><i><strong>Would you mind elaborating on benefits when taxpayers settle taxes at banks in coordination with the General Department of Vietnam Customs, as well as limitations and risks that may occur from tax payment via banks uncoordinated with the General Department?</strong></i></p>
<p>Settling taxes via banks that have signed tax collection coordination agreements with General Department of Vietnam Customs have simple and convenient procedural processes.</p>
<p>Taxpayers only need to make a copy of tax payment statement and fill in minimum information. In case the statement is valid, banks debit taxpayers’ accounts and transfer the money debited to the account of State Treasury and <b>transfer data (online)</b> via customs electronic payment portal. Upon receipt of data (online) from the bank at the service, the system of customs authorities will <b>debit account and clear goods for businesses</b>. (It takes 10 minutes to complete this payment. It will take one working day if businesses settle taxes via banks uncoordinated with the customs authorities).</p>
<p>Businesses can pay money at various locations at any time they want and use various modern payment services like internet, ATM and letters of guarantee.</p>
<p>Tax payment by businesses will be quickly, frequently, continuously and accurately updated by customs offices. With quick accounting, the immediate liability liquidation will help minimise the pending tax liability of taxpayers, thus helping taxpayers to have their goods cleared quickly. This will help reduce the time and costs for customs procedures for taxpayers.</p>
<p>Businesses only need to use a copy of tax payment statement for many declaration forms. Besides, they only need to fill in accurate information like tax code, declaration paper serial number, date of declaration, name of customs agency at the service, name of the State Treasury at the service, content of payment items (name of tax lines) and amount of money (other information is filled by banks at the service). If the information declared is accurate, the system will accept payment information and withhold the money from taxpayers’ accounts at credit institutions at the service.</p>
<p>Circular 126 has helped reduce manual work for document reference, speed up information processing, account tax debt, update information on taxes, fees and tax guarantees of businesses throughout the country, consider grace period for tax relief, relieve compulsive measures, and complete customs clearance quickly and accurately.</p>
<p>These are benefits when taxpayers settle taxes via banks signing tax collection coordination with customs authorities. However, mistaken information on declarations has resulted in slowed clearance time and tax coercion.</p>
<p><i><strong>To qualify for coordination with the General Department of Vietnam Customs in tax collection, banks must meet conditions stipulated in Circular 126/2014/TT-BTC. So, to encourage banks to take part in tax collection coordination, what will the General Department of Vietnam Customs do to better support banks to take part in the coordination programme?</strong></i></p>
<p>To provide maximum support for joint stock commercial banks engaged in tax collection coordination, the Ministry of Finance allows commercial joint stock banks without an account at the State Treasury to base on evaluation criteria in Circular 126 to consider meeting technology and profession conditions when they propose connection for information exchange. The General Department of Vietnam Customs shall check, select and provide information for commercial joint stock banks to get connected with State budget collection information exchange.</p>
<p>In addition, the General Department of Vietnam Customs issued regulations and structures of data messages exchanged with customs electronic payment gateway in line with Decision 2994/QD-TQHQ dated October 3, 2014 and Decision 3147/QD-TQHQ dated October 24, 2014 for banks to study deployment of suitable information technology systems.</p>
<p>In the coming time, to expand the scope of cooperation with commercial banks eligible for connecting with the customs system, the Export Import Tax Department is completing some bank documents to submit to the General Department to sign the cooperation agreement on State budget collection while reassessing and directing banks with completed application forms to push cooperation signing.</p>
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State Budget Collection via Banks: Mutual Benefits Related image(s)<br />
<img height="200" src="http://bit.ly/1bvVzHI" width="200" /><br />

State Budget Collection via Banks: Mutual Benefits

State Budget Collection via Banks: Mutual Benefits

State Budget Collection via Banks: Mutual Benefits With practical benefits for taxpayers, banks and customs authorities, the coordination p...

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