Hanoi shames over 300 tax defaulters Hanoi Tax Department has publicly named 331 firms who owning taxes and land rental fees valued at VND2.48trn (USD107m). 12 firms own over VND546bn (USD23.60m) in taxes, of which Lilama Hanoi owns VND111bn and Mecomic JSC owns VND60bn. 16 firms own nearly VND1.30trn (USD56.25m) in land rental fees. Lung Do 5 Development and Investment JSC leads the list with VND342bn, followed by Hoang Ha Construction JSC with VND158bn and CT Vietnam International JSC with VND122bn. Lilama Hanoi also owns VND67bn in land rental fees. The authorities have applied various measures including withdrawing the fees from the companies' accounts but have still been unable to recover the tax arrears. Since early 2018, Hanoi Tax Department has publicly named 690 companies that still owe tax arrears. As of now, 198 companies have paid nearly VND47.60bn (USD2m) of the VND1.47trn. The department has warned the firms to pay their taxes before stricter measures are applied. Shrimp … [Read more...] about BUSINESS IN BRIEF 13/7
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BUSINESS IN BRIEF 24/6
Wood exports continue expanding in first months of 2018 An upturn has been seen in exports of wood and wooden products, with export value in the first five months of 2018 reaching 3.3 billion USD, up 8.2 percent from the same period last year. The top four markets were the US, China, Japan and the Republic of Korea (RoK), together accounting for 78.1 percent of total export revenue. Strong growth was seen in the RoK and the US markets, with 45.3 percent and 9.7 percent respectively. In the first four months of 2018, Vietnam earned 1.1 billion USD from exporting wood and wooden products to the US, 367.3 million USD from China, 350.7 million USD from Japan and 288.8 million USD from the RoK. However, Nguyen Quoc Khanh, President of the Handicraft and Wood Industry Association of Ho Chi Minh City, warned that the US, the largest market for Vietnamese wood and wooden products, has prioritised the domestic wood sector by reducing corporate income tax from 35 percent to 25 percent. He … [Read more...] about BUSINESS IN BRIEF 24/6
SMEs’ access to credit: Better, but not enough
Small- and medium-sized enterprises (SMEs) have been highly conducive to economic development in Viet Nam as they significantly contribute to job creation, export promotion, growth generation and poverty reduction. However, despite accounting for some 98 per cent of the country’s enterprises, SMEs’ performance is still constrained by many factors, including both “internal capacity” and “unfriendly external factors”, such as shortage of qualified human resources and little access to technology, besides administrative red-tapism. Among the detrimental external factors, lack of credit accessibility is seen as the major obstacle to the sustainable development of SMEs. Therefore, one of the most important measures to support SMEs is to improve their access to credit. In an economy like Viet Nam whose financial system relies heavily on banks, access to credit is even more critical. Vo Tri Thanh In fact, Viet Nam has made great efforts in this regard, and … [Read more...] about SMEs’ access to credit: Better, but not enough
BUSINESS IN BRIEF 20/4
Mercedes-Benz Viet Nam recalls 3,624 vehicles over faulty fuse Mercedes-Benz Viet Nam is recalling 3,624 vehicles that are at risk of catching fire due to a potentially faulty fuse. According to the German car maker, the list of recalled vehicles includes C200, C250, C300, E200, GLC 250 4MATIC and GLC 300 4MATIC models, manufactured between September 2015 and February 2017. The models will be checked and installed with an additional fuse in the electrical line to the starter at an estimated time of 30 minutes per car. The recall campaign is scheduled to begin on May 14, 2018, and end on September 9, 2020. Mercedes-Benz Viet Nam is also recalling another 384 vehicles (models E200, E250 and E300) manufactured from August 2016 to April 2017 to replace the seat belts on the left and right backseats. The duration of checking and repairing is estimated at one-and-a-half hours per vehicle. This recall campaign started on April 16, 2018, and will run till December 31, 2022. JLL: Hanoi … [Read more...] about BUSINESS IN BRIEF 20/4
BUSINESS IN BRIEF 29/3
Vietnamese firms urged to deeply explore Cuban market Vietnamese, French firms urged to foster partnerships Domestic pharmaceuticals stocks send good vibes to Abbott and Taisho Since the beginning of the fourth quarter of 2018, pharmaceutical stocks have been forecast to thrive as bustling activities such as state divestitures, mergers and acquisitions (M&A), and notable investments from foreign healthcare firms are being announced left and right. Speaking about the investment and divestment activities between Vietnam-based pharmaceuticals and foreign investors, a representative of State Capital Investment Corporation (SCIC) disclosed that 34.71 per cent capital at Domesco Medical Import Export Joint Stock Corporation (HSX: DMC) is on its divestment agenda in April. US-based multinational healthcare firm Abbott has already expressed a wish to participate in the divestment. In late 2017, Latin American CFR International SpA, DMC’s former largest shareholder, transferred its … [Read more...] about BUSINESS IN BRIEF 29/3
BUSINESS IN BRIEF 25/3
Hanoi eyes 159 industrial clusters by 2030 The capital city will have 159 industrial clusters, covering a total area of more than 3,200ha by 2030, baodautu.vn reports. This is pursuant to its industrial cluster development master plan for 2020 with a vision to 2030. In the period up to 2020, there will be 138 industrial clusters with an area of more than 2,620ha in the city. Of these, 52 are newly-established zones, spanning 590ha. The plan has been approved by the municipal People’s Committee. In the 2021 to 2030 period, five existing industrial clusters will be expanded, having a total area of 45.4ha, and 21 new ones, covering 536ha, will be established. According to the plant, industrial complexes which are located in the five northern districts of the city —Soc Son, Me Linh, Dong Anh, Long Bien and Gia Lam — will prioritise to attract investments in several sectors, including electronics and information technology, engineering, automotives … [Read more...] about BUSINESS IN BRIEF 25/3
BUSINESS IN BRIEF 28/1
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
BUSINESS IN BRIEF 14/1
Pepper growers concern about falling pricesPepper growers are entering the harvest season of 2018 in the southeastern region of Vietnam, concerning about price fall and output reduction because of pests and diseases.Traders now pay VND65,000-66,000 a kilogram of pepper, accounting for half of the price in the same period last year.Long lasting rains last year created conditions for pests and diseases to attack pepper crop, resulting in output drop this year.According to statistics, high pepper prices in previous years sent farmers to expand farming area to 40,100 hectares in Ba Ria-Vung Tau, Dong Nai and Binh Phuoc provinces in 2017. The area far exceeds the plan of 12,800 hectares by 2020 of the Government.That has broken supply and demand balance causing continuos price reductions for the last two years. Enterprises develop fast in number, efficiency low: economic survey 2017Data from economic survey of HCMC 2017 showed that although the number of enterprises quickly develops, their … [Read more...] about BUSINESS IN BRIEF 14/1
BUSINESS IN BRIEF 22/12
Dong Nai attracts $1.3 billion FDI in 2017The southern province of Dong Nai attracted over US$1.3 billion in foreign direct investment (FDI) in 2017, $300 million higher than the set target.According to the provincial industrial zones’ management board, it has attracted 1,733 FDI projects, so far, with total investment of $31.3 billion. Investors from 45 countries and territories have invested in the locality.South Korea is the largest foreign investor in the province, following by Taiwan (China) and Japan.The board said despite laying down stricter conditions for investment projects, FDI capital that poured into the province still increased this year. In particular, disbursement reached $1.1 billion, equivalent to 88 per cent of the total registered capital.In recent years, Dong Nai has given priority to FDI projects using hi-tech, skilled labourers and are environment-friendly.Mai Van Nhon, deputy head of the board, said investors believed in the province’s support for … [Read more...] about BUSINESS IN BRIEF 22/12
Government and Enterprises Jointly Improving Business Environment
Last year was another tireless journey for the Government and the business community to work together to improve the business environment to make Vietnam a world-class friendly destination. This is also an important milestone in the effort to create a conducive business environment to develop enterprises and constitute a government of action, facilitation and integrity to serve business development. In the Doing Business 2018 Report titled “Reforming to Create Jobs”, the 15th edition in the report series released by the World Bank (WB), Vietnam continued to climb 14 places in ease of doing business to No. 68 out of 190 economies, scoring 67.93 points on a 100-point scale. In 2017, the country was ranked No. 82 with a score of 63.83, an increase of nine places over 2016. Dr Vu Tien Loc, President of the Vietnam Chamber of Commerce and Industry (VCCI), said, last year, thousands of suggestions from entrepreneurs were collected and considered by government agencies and … [Read more...] about Government and Enterprises Jointly Improving Business Environment