Private label segment on the rise among local retailers At a Co.opmart in Hanoi, Vu Hong Ngoc, a mother of two children, chose to buy Co.opmart’s own brand of cooking oil and boxed tissues. It is increasingly common to find products labelled under supermarket brands, offering less expensive prices to tempt frugal shoppers like Ngoc. Research by Kantar Worldpanel Vietnam showed that 39 per cent of Vietnamese shoppers at modern outlets prefer private-label products. The 10 most common products are toilet paper, box tissues, table napkins, loose-leaf tea, floor cleaners, liquid detergents, frozen foods, dishwashing liquids, detergent powders, and cooking oils, according to the research. A private label product is one that can be sourced from a manufacturer and sold under a retailer’s own brand. These products are therefore manufactured for exclusive sale by a particular retailer. According to Kantar Worldpanel Vietnam, private labels account for only 2.4 per cent of sales … [Read more...] about Private label segment on the rise among local retailers
Feminine hygiene products tax
PM tells authorities to investigate tax evasion
Media reports have suggested the Government to build a more effective mechanism to tackle the problem that prolonged loss-making FDI enterprises have still enlarged investment and production. — Photo cafebiz.vn Prime Minister Nguyen Xuan Phuc has assigned the Ministry of Finance (MOF) and General Department of Taxation (GDT) to study media reports on transfer pricing of foreign direct investment (FDI) enterprises and tax policy. Media outlets have reported that the number of FDI enterprises reporting losses during 2012-16 accounted for 44-51 per cent of total enterprises, a sign which may indicate transfer pricing. However, it can be difficult to know the truth as the tax authority is not empowered to investigate. The report in Tuoi tre (Youth) newspaper pointed out a fashionable transfer pricing strategy is through intra-firm parent debt or related-party loans, following which firms borrowed from their parent companies or affiliates with excessive interest expenses. Other … [Read more...] about PM tells authorities to investigate tax evasion
PM asks authorities to probe tax evasion by FDI firms
Viet Nam News HÀ NỘI – Prime Minister Nguyễn Xuân Phúc has assigned the Ministry of Finance (MOF) and General Department of Taxation (GDT) to study media reports on transfer pricing of foreign direct investment (FDI) enterprises and tax policy. Media outlets have reported that the number of FDI enterprises reporting losses during 2012-16 accounted for 44-51 per cent of total enterprises, a sign which may indicate transfer pricing. However, it can be difficult to know the truth as the tax authority is not empowered to investigate. The report in Tuổi trẻ (Youth) newspaper pointed out a fashionable transfer pricing strategy is through intra-firm parent debt or related-party loans, following which firms borrowed from their parent companies or affiliates with excessive interest expenses. Other pricing methods include inter-company transactions in various forms such as overseas parent companies selling raw materials and equipment to … [Read more...] about PM asks authorities to probe tax evasion by FDI firms
Two foreign brands dominate personal hygiene market in Vietnam
By Thi Ha  July 17, 2018 | 04:47 pm GMT+7 A Japanese and an American brand, Diana and Kotex, are enjoying the lion’s share of the fast-growing personal hygiene products market in Vietnam. Among the 10 most popular personal care brands in the country, Diana and Kotex hold a whopping 80 percent of the domestic market share. Unicharm, the Japanese company which owns the Diana brand, has been in Vietnam for 27 years. Diana brand products earned revenues of VND5 trillion ($218 million) in 2016, up 10.6 percent over 2015, for a net profit of VND819 billion ($35.7 million), making it the market leader by far. In second place is the Kotex brand, owned by the U.S. based Kimberly-Clark Corporation, which reported revenues of VND4.9 trillion ($214 million) in 2016, a year-on-year increase of 9 percent, for a net profit of VND485 billion ($21 million). With a large proportion of young people in its population of 93 million, both brands expect the … [Read more...] about Two foreign brands dominate personal hygiene market in Vietnam
Businesses allowed to declare products’ safety
Decree No 15, effective since February 2, 2018, dictates several changes, the most notable of which is giving firms the right to self-declare food-product origins and quality, replacing the long-standing method of keeping records at public management agencies. (Photo: VGP) Hanoi (VNA) - Food enterprises can now declare their products safe and hygienic, without having to apply for any official certification. Decree 15/2018/NĐ-CP was put into effect last month, with the food safety change one of its most significant parts. Under the decree, organisations and individuals producing and selling food will announce their product’s safety on multi-media, websites or at their offices themselves, instead of applying for food safety and hygiene certificates like before. Le Thi Thu, owner of an enterprise producing pork pies, spring rolls and sausages in Bien Hoa city, the southern province of Dong Nai, told Thanh Nien (Young People) newspaper that, to apply for the … [Read more...] about Businesses allowed to declare products’ safety
Finance Ministry proposes environmental tax hike
The Ministry of Finance has proposed raising environmental protection taxes on oil and petroleum products from the current VND3,000 (13 US cents) to the ceiling level of VND4,000 (17 cents) per litre beginning July 1, 2018. Accordingly, environmental protection taxes have been proposed to increase by VND500 per liter of diesel oil to VND2,000 and by VND1,100 per liter of other oil products to VND2,000. Plastic bags are also expected to see higher environmental taxes, rising from the current VND30,000 to VND50,000 per kilo, if the draft is approved. Last year, the ministry sought opinions about a draft law on the environmental protection tax hike to the highest level of VND8,000 per litre. The proposal faced fierce opposition from both the public and economists. In 2014, a similar hike was imposed, raising the taxes from VND1,000 to VND3,000, which the ministry referred to as a good way to stabilise the State budget. The ministry said that the tax hike was necessary because import taxes … [Read more...] about Finance Ministry proposes environmental tax hike
Cashew processors clean up for hygiene certificates
Cashew processors clean up for hygiene certificatesBy Ngoc Hung - The Saigon Times Daily HCMC – The department of Processing and Trade for Agro-Forestry-Fisheries Products and Salt Production under the agriculture ministry in cooperation with Vietnam Cashew Association (Vinacas) will assist more than 200 cashew processors to apply for national hygiene certificates. Dang Hoang Giang, secretary general of Vinacas, said manufacturers have to pass 53 different criteria before getting the certificate from the agriculture ministry. Failure to pass only three of the criteria qualifies as a severe infringement with strict punishment. The certificates are valid for 2 years. Previously, the U.S. Food and Drug Administration (FDA) had informed Vinacas that they intended to visit Vietnamese exporters who ship goods to the U.S. to check on hygiene conditions. Giang said, not only cashews, but other spice makers including pepper and chili would be checked by the FDA , adding that such checks … [Read more...] about Cashew processors clean up for hygiene certificates
Can Vietnam ask Facebook live-streamers to pay taxes?
While brands and celebrities in Vietnam are embracing Facebook Live, a live-streaming video service, as a new medium for advertisements, local tax authorities are scratching their heads on how to collect taxes on income generated by such activities.Vietnamese celebs and tastemakers with massive social media followings, often in the tens of thousands, are being paid by companies to promote products and brands through well-worded Facebook posts and carefully-scripted Facebook Live broadcasts.Brands looking to extend their advertising reach do their best to leverage the social media accounts of celebrity endorsers by engaging with potential customers through a medium that many feel is more relatable than conventional advertising.Industry insiders claim that smaller brands will pay lesser-known live-streamers anywhere from VND20 million ($881) to VND25 million ($1,101) per live broadcast while local celebs can rake in a few hundred million dong per month from social media advertising … [Read more...] about Can Vietnam ask Facebook live-streamers to pay taxes?
City pins hopes on food hygiene management board
City pins hopes on food hygiene management boardVan Nam HCMC - Director Nguyen Tan Binh of the HCMC Department of Health believed the management of food safety and hygiene in the city would be better with a specialized board to be up and operating next year. The Prime Minister has recently given his nod to a pilot plan to set up a management board for food safety and hygiene in HCMC, which groups members from the departments of health, trade-industry and agriculture in the city. The Department of Home Affairs is preparing for the establishment of this board, expected to start operation early next year, said Binh at a question and answer session of the third meeting of the HCMC People’s Council on December 8. Earlier, many voters had proposed the health department and relevant agencies regularly inspect and strictly handle the trade of contaminated and hazardous food with unclear origin at wholesale markets across the city. The city is a hub for trade of large volumes of food made … [Read more...] about City pins hopes on food hygiene management board
Hygiene, Safety Win Consumer Trust
Hygiene, Safety Win Consumer TrustBy Tam NguyenHealth conscious consumers favor clean, safe foods with known brands and shun those of unclear originFoods with clear origin and known brands are winning over those of unclear origin and suppliers during the Tet (Lunar New Year holiday) shopping season, as consumers are more aware of food hygiene and safety following news about harmful effects on human health caused by poorly processed, sub-standard foods.According to traders at major markets in HCM City like Tan Dinh and Binh Tay, sales of watermelon seeds and jams are falling markedly compared with Tet of the previous years. “Last year, we suffered poor sales following the media reports on sweets produced at dirty establishments. The situation this year has not improved much, possibly because consumers are still haunted by the past experience,” says a wholesaler at Binh Tay, the biggest wholesale market of jams for Tet.Sales of watermelon seeds, a typical snack for Tet, are … [Read more...] about Hygiene, Safety Win Consumer Trust