Vietnam Breaking News

Vietnam to open doors for private investment in railway infrastructure

Vietnam to open doors for private investment in railway infrastructure
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.
<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>
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).
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.
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.
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.
“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,” Thanh Nien (Young People) newspaper quoted him as saying at the meeting.
He named some firms like Vingroup, Bach Dang, Indo Tran Logistics, and ATH Express Trains Ltd.
Poor performance
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, Lao Dong (Labor) newspaper said.
As a result, the sector has been unable to attract private investors, the newspaper remarked.
Currently, the railway sector generates around VND400 billion (US$18.4) a year, but its cost amounts to VND2 trillion ($92 million).
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.
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.
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.
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.
Legal framework
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.
According to experts, the decree is a prerequisite for infrastructure projects, particularly in the area of transport, to be implemented more effectively.
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.
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.
Minister Thang also urged the VRC to speed up its restructuring and equitization.
<a href="#http://bit.ly/1bvVC6d">Like us on Facebook</a> or <a href="#http://bit.ly/1G7Zz8H">follow us on Twitter</a> to get the latest news about Vietnam!
 
Vietnam to open doors for private investment in railway infrastructure Related image(s) 
<img height="200" src="http://bit.ly/1G7ZBxs" width="200" />

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...

+ Read more »

Indonesia proposes Asian-African Business Council

Indonesia proposes Asian-African Business Council
Indonesia has proposed establishing a business council to strengthen trade ties between Asian and African business communities.
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.
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.
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.
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.
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.
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
 
Indonesia proposes Asian-African Business Council Related image(s) 
<img height="200" src="http://ift.tt/1eWmqbm" width="200" />

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...

+ Read more »

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 previous month and 0.8 percent against the same period last year, according to the city’s Statistics Office.
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.
Price decreases were seen in post and telecommunications (0.17 percent), beverages (0.15 percent) and home appliances (0.02 percent).
Notably, food and restaurant services experienced the largest fall of 0.54 percent compared to the month before.
The price of gold increased by 0.11 percent while the US dollar exchange rate rose 0.43 percent.-VNA
 
CPI increases slightly in HCM City Related image(s) 
<img height="200" src="http://ift.tt/1eWmqbm" width="200" />

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 ...

+ Read more »

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 or Malaysia have been shipped to sell in Vietnam as the tax on confectionery imported from Southeast Asia is now zero percent.
<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>
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.
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.
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.
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.
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.
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.
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.
“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.
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.
Mondelez International Inc. already has a small presence in Vietnam selling some of its Oreo, Ritz, and Cadbury products.
After the business deal, the conglomerate acquired two Kinh Do manufacturing facilities, as well as the Vietnamese firm’s distribution network.
Vietnam’s revenue from confectionery reached VND27 trillion ($1.25 billion) in 2014, an increase of 10.65 percent compared to 2013.
It is expected to top around VND40 trillion ($1.8 billion) with the estimated production of more than 200,000 tons in 2018.
<a href="#http://bit.ly/1bvVDaf">Like us on Facebook</a> or <a href="#http://bit.ly/1G7ZBgT">follow us on Twitter</a> to get the latest news about Vietnam!
 
More and more SE Asian confectionery sold in Vietnam over 0% tax Related image(s) 
<img height="200" src="http://bit.ly/1bvVDad" width="200" />

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...

+ Read more »

New laws contribute to improving business climate

New laws contribute to improving business climate
<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>
Chairman of the National Assembly Economic Committee Nguyen Van Giau (Source: VNA)
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.
He underlined the transparency, specificity and up-to-dateness of the laws, saying that they facilitate business operation and economic development.
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).
He stressed the need for administrative reform and improved public service to ensure effective implementation of relevant policies.
He highlighted the “from words to actions” slogan, saying that improving the business climate is an urgent issue in the economy and among businesses.
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.
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.
International experts have said Vietnam’s legal reform process is a positive improvement and in accordance with the domestic context, the chairman said.-VNA
 
New laws contribute to improving business climate Related image(s) 
<img height="200" src="http://bit.ly/1G7ZyBz" width="200" />

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...

+ Read more »

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 than expected revenue growth in the first quarter on Wednesday, boosted by sales of Mexican lagers and drinking over the New Year in Vietnam.
<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>
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.
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.
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.
In Europe, weak Russia and a duty increase in Italy resulted in lower sales in the region.
The brewer, which is aiming to improve its operating profit margin by around 40 basis points per year, retained its previous full-year outlook.
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.
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.
Countering that, it expects a 25 basis point hit to its operating margin this year following its divestment of its Mexican packaging business.
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)
 
Mexico, Vietnam drive Heineken sales at start of year Related image(s) 
<img height="200" src="http://bit.ly/1bvVCTH" width="200" />

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 ...

+ Read more »

Hanoi consumer prices up 0.2% in April

Hanoi consumer prices up 0.2% in April
<a href="#http://bit.ly/1G7Zyla"></a>
<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>
A Hapro supermarket in Hanoi (Credit: Ha Noi Moi)
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.
This is second month that a rise in CPI was recorded after prices fell consecutively in the first two months of 2015.
Last month, consumer prices in the capital city climbed by 0.38%, after dropping 0.17% and 0.07% in January and February respectively.
The increases in the prices of petrol and electricity in March pushed up transport and utility costs by 2.5% and 1.84%.
Home appliances rose by 0.34% against March, while garments and footwear posted a one-month increase of 0.25%.
Food and dining services fell by 0.49% thanks to abundant supplies of grains, meat and vegetables.
 
Hanoi consumer prices up 0.2% in April Related image(s) 
<img height="200" src="http://bit.ly/1bvVCDn" width="200" />

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...

+ Read more »