Washington and Beijing are going toe-to-toe in a trade spat, and Vietnam is set to become embroiled in the conflict, for better or for worse. The row is likely to deal a blow to export-reliant Vietnam, as its overseas shipments form part of China’s value chain. “If the U.S imposes high tariffs on China’s broader cross-border supply chain, Vietnam, which exports goods that serve as inputs for China’s exports, will be badly hit,” said economist Le Dang Doanh. It’s unclear whether Washington will tax Chinese firms alone or their wider supply networks. About 2.2 percent of Vietnam’ shipments abroad are part of China’s value chain, Bloomberg quoted date from RHB Bank Bhd as saying. Sharing the same opinion, Steven Schwartz, senior director of sovereign ratings for Asia at Fitch Ratings, said South Korea, Taiwan, Vietnam and Malaysia, all of which export goods – such as machine parts and components for communications equipment … [Read more...] about What does Vietnam have to lose or gain from US-China trade war?
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Fate of Ban Phuc Nickel remains murky The fate of Ban Phuc Nickel mine invested by Ban Phuc Nickel Mines Limited Liability Company (BPNM) remains uncertain. A representative of the Son La Department of Industry and Trade told VIR that the mine’s operation has been suspended since October last year. To date, the department has yet to receive any specific plans to resume the mine’s operation from the investor. Previously, in October 2017, BPNM officially decided to suspend the operation of Ban Phuc Nickel mine until September 30, 2018 due to the company’s massive losses. In 2007, Asian Mineral Resources Limited (AMR), a global mining group listed on the bourse in Toronto, Canada, was granted the licence to exploit and process ores in the Ban Phuc nickel ore mine, which has a reserve of more than 200,000 tonnes of nickel and 18,000 tonnes of copper. According to the initial plan, AMR will co-operate with domestic enterprise Son La Mechanical Engineering JSC to establish … [Read more...] about BUSINESS IN BRIEF 28/3
Hoi An authorities seek solution to noisy bars, dinersAuthorities in Hoi An, an iconic tourist town in central Vietnam, are seeking solutions for dealing with loud music from local bars in an effort to restore a peaceful atmosphere to the vintage destination.Located in the namesake city in Quang Nam Province, Hoi An Ancient Town was recognized as a UNESCO World Heritage Site in 1999 and has long been famous for its tranquility and unique charm.Recent complaints by tourists, however, have local authorities worry that the destination may lose its tranquil charm due to loud music from local bars, restaurants, and coffee shops.The Hoi An People’s Committee announced on February 7 that it will invite local bar and hotel owners to reach a common ground on ensuring that business operations at certain venues do not compromise the interests of local residents and visitors.The meeting will be chaired by Nguyen Van Son, vice-chairman of the city’s administration and the man … [Read more...] about Social News 10/2
Cushman & Wakefield forecasts sharp fall in office rentBy Mong Binh - The Saigon Times DailyHCMC - Cushman & Wakefield, a world leader in real estate services, has projected office rent in HCMC and Vietnam as a whole will fall at least 50% given more developments going online in the market in the next 12 or 14 months and the competitive rates in other regional cities.“Office rent will certainly come down, I think by half,” Toby Dodd, general manager of Cushman & Wakefield in Vietnam, told the Daily after a seminar on real estate investment held in HCMC yesterday by the European Chamber of Commerce in Vietnam (EuroCham).He forecast rent in Vietnam would stabilize at US$30 per square meter for Grade A, US$20 for Grade B and US$10 at Grade C offices, and apartment rentals would also come down.Office rent in such regional cities as Thailand’s Bangkok, Indonesia’s Jakarta, Malaysia’s Kuala Lumpur and the Philippines’ Manila are now at those … [Read more...] about Cushman & Wakefield forecasts sharp fall in office rent
Absence of common voiceSon Nguyen The tug of war between environment advocacy groups seeking to protect Son Tra Peninsula in the central coast city of Danang on one side and tourism authorities insisting on observing the tourism development master plan on the other is becoming all the tougher. For months on end, a war of words has dragged on, and both sides wield very strong weapons to defend their positions. As covered in local media these days, right after the announcement of the zoning plan for Son Tra Peninsula in February, environment advocacy groups with the Danang Tourism Association driving the bandwagon have pressed on with a campaign to protect the peninsula so as to keep it from being spoiled by irresponsible tourism development. They demand that the status quo be maintained, and petition central authorities to amend the zoning plan to this effect. And they have very good reasons to do so. Meanwhile, the Vietnam National Administration for Tourism (VNAT) asserts that … [Read more...] about Absence of common voice
The U.S. House of Representatives gave its final approval to a sweeping, debt-financed tax bill at the end of 2017, representing the biggest overhaul of the U.S. tax code in more than 30 years. The changes include the country's corporate income tax rate falling from 35 percent to 21 percent, as of January 1, 2018. "We've become competitive all over the world. Our companies won't be leaving our country any longer because our tax burden is so high," CNBC quoted President Donald Trump as saying at a recent cabinet meeting. The president called it "above all else a jobs bill", contending that changes to the business tax structure would encourage more companies to relocate their operations to the U.S. and hire more workers. But what Trump claims to be positive for the U.S. could have negative implications for its foreign partners. “The overhaul could have negative impacts on U.S. backed investment in Vietnam. U.S. businesses are likely to review their investment strategies … [Read more...] about Could Trump’s US tax overhaul hit FDI inflow in Vietnam?
Ho Chi Minh City launches activities to mark 1968 Tet Offensive Nguyen Van Binh book street in Ho Chi Minh CityAn array of activities are scheduled to take place from January 30 to February 4 at Nguyen Van Binh book street in Ho Chi Minh City to recount the General Offensive and Uprising in Spring 1968, known in the West as the Tet Offensive.Notably, a model of the Ben Thanh market, which has been constructed from 1,000 books on the Spring 1968 campaign and the history of Ho Chi Minh City, is expected to catch the public’s attention.Various books on the two resistance wars against French colonialism and American imperialism, as well as the history, renewal process and development of the City, will be introduced to visitors.Two forums themed “Saigon’s youth during the Spring 1968 campaign’ and ‘Memories about Spring 1968’ will also be held on January 30 and February 2 to mark the occasion.The speakers will be former members of the armed forces and … [Read more...] about Social News 30/1
One more project in the red for VinachemA Laos-based potassium salt mining and processing project is the fifth million-dollar loss-making project of Vietnam National Chemical Group (Vinachem) and the thirteenth of the Trade and Industry sector.The total investment of this Vinachem project is $522 million, including $105 million from Vinachem, $113 million from Vietnam Development Bank (VDB), $161 million from Bank for Investment and Development of Vietnam JSC (BIDV), and $143 million from VietinBank.The project’s scope of exploration is 10 square metres. It is expected to be built within five years and start exploration from 2020, producing 320,000 tonnes annually. However, after two years of construction, the project has stalled in 2017.In 2017, the 20 subsidiaries of Vinachem recorded a total profit of nearly VND2.2 trillion ($100 million), but four projects had a negative revenue of VND2.115 trillion ($93.2 million). Earlier, in the first days of 2018, Deputy Prime … [Read more...] about BUSINESS IN BRIEF 28/1
Vietnam promotes trade, tourism in ChileVietnamese Chargé d'affaires a.i. in Chile Nguyen Minh Anh introduced the potential for cooperation between Vietnam and Chile in trade and tourism at a seminar in Chile on January 19.Anh highlighted the remarkable growth in bilateral trade exchange recently, with value reaching 1.28 billion USD. He noted that Vietnam is the 10th biggest foreign trade partner and the second largest Southeast Asian market of Chile.The diplomat underlined the trend among young Chilean entrepreneurs to seek investment opportunities in Southeast Asia, including Vietnam.A representative of the Chilean Ministry of Foreign Affairs said the Vietnam – Chile free trade agreement, effective in 2014, has made significant contributions to increasing trade exchanges between the two nations.Vietnam can serve as a gateway for Chilean products to enter ASEAN markets, while Chile as a bridge connecting Vietnam and Latin America.The seminar, jointly hosted by the Embassy … [Read more...] about BUSINESS IN BRIEF 23/1
Vingroup, T&T to develop urban railway projects in HanoiThe government of Hanoi City has proposed the Prime Minister allow Vingroup and T&T Group to develop three urban railway projects which the city plans to complete by 2025, Tuoi Tre newspaper reports.The two domestic investors will use their capital to make pre-feasibility studies for these projects.When the projects were announced, many investors expressed interest in Hanoi. However, only Vingroup and T&T Group have registered to take part.Both of them proposed implementing the projects in the build-transfer (BT) format. Particularly, Vingroup registered to build the 38.4-kilometer metro line No. 5 which connects Van Cao and Hoa Lac and metro line No. 2 from Tran Hung Dao to Thuong Dinh with a length of 5.9 kilometers. Meanwhile, T&T Group is keen on metro line No. 4 connecting Me Linh, Sai Dong and Lien Ha, and measuring 54 kilometers in length.The two investors said they would use their own finances to study the … [Read more...] about BUSINESS IN BRIEF 9/1