Vietnam seeks to ease foreign investors in pouring into its public companies, considering lifting the foreign stake holding limit at the companies from the current 49 percent to 100 percent. Foreign portfolio investment in local stock markets was US$34.2 billion at the end of July The proposal was made in the revised draft Securities Law, which has been made public recently by the State Securities Commission (SSC) for comment before being submitted to the National Assembly for approval due in the last quarter of 2019. Under the draft law, there will be no cap on foreign ownership at the companies, except for some cases, which relate to either international treaty with Vietnam being a member or other specialized laws regulating lower foreign ownership limits. Under the current law, foreign investors are permitted to hold 49 percent of public companies’ charter capital at the maximum. If the companies want to lift the ratio to 100 percent, they have to get approval from … [Read more...] about Vietnam government to remove foreign ownership cap for public companies
Vietnam government
New entity set up to manage Vietnam government stakes in companies
At the new committee’s inauguration ceremony Sunday, five ministries -- the ministries of Industry and Trade, Transport, Agriculture and Rural Development, Information and Communications and Finance -- signed memoranda of understanding transferring their right to representing state capital in 19 giant corporations to it. The committee will represent the government in managing $43.03 billion in state equity, equivalent to 20 percent of the country’s GDP last year. Of the 19 corporations, one is the sovereign fund, the State Capital Investment Corporation, while the rest are those in which the government owns 100 per cent or majority stakes. The companies are currently key players in the economy in terms of size and position. They include major groups Petrolimex, chemical group Vinachem, Vietnam Electricity, PetroVietnam, Vietnam Rubber Group, Coal and Mining Group, and Vietnam Post and Telecommunications Group. The remaining 11 are corporations -- MobiFone, Vietnam Tobacco, … [Read more...] about New entity set up to manage Vietnam government stakes in companies
Don’t treat ride-hailing firms as taxis, Vietnam government advised
Nguyen Dinh Cung, director of the Central Institute of Economic Management (CIEM), criticized state agencies for a “managing mindset” that “is not yet innovated”. Cung was referring to the latest draft decree on transportation management, which asks ride-hailing firms like Grab, Fastgo and Vietgo to comply with many conditions that are applied to normal transportation businesses like taxi companies. He said firms that primarily used software cannot be called a transportation business and said the new move was not consistent with the country’s stated aim of removing at least 50 percent of current business conditions. Cung told VnExpress that the state managers must also think in terms of the market from the perspective of facilitating new technologies and business models instead of using administrative procedures to intervene in their business. While the latest draft has cut many conditions for the ride-hailing business, such as logos, paint colors, board … [Read more...] about Don’t treat ride-hailing firms as taxis, Vietnam government advised
Vietnam government urged to limit petrol imports
The Nghi Son Refinery has not begun commercial operations officially, but it is burdened by unsold inventories that have to be stocked in warehouses in the central region, says Chairman of the Provincial People's Committee Nguyen Dinh Xung. If the current situation continues, it will cause difficulties for enterprises and negatively affect the province’s budget, Xung said at a government meeting on July 2. "We suggest that the government have policies to limit petrol imports and prioritize products from Nghi Son refinery," said Nguyen Dinh Xung. According to Thanh Hoa authorities, during the trial period, Nghi Son oil refinery has produced 14 percent of the province’s total industrial production value. With a planned production of 4-4.3 million tons of gasoline when commercial operations officially begin in August or September 2018, the plant will contribute more than 15 percent to the province's growth. A month ago, the $9 billion refinery produced its first commercial … [Read more...] about Vietnam government urged to limit petrol imports
Vietnam government wants SEZ bill deferred
The Vietnamese government has requested the National Assembly to postpone passing a draft law on Special Economic Zones (SEZs) saying it needed more time to ensure that it meets the aspirations of both legislators and the public. One of the most controversial provisions of the current draft was the leasing of land in three strategic locations to foreign investors for 99 years. A government statement released Saturday early morning said the deferment request was made after “listening to enthusiastic and responsible contributions of members of parliament, scientists, economists, experts, voters and the people.” The postponement until the next parliament session in October would give the government time to research and improve the bill so that it meets the aspirations of the legislators and the public in successfully establishing the three SEZs while protecting national security and sovereignty, the statement said. The government also proposed that the controversial 99-year … [Read more...] about Vietnam government wants SEZ bill deferred
$102 million project jointly launched to help Vietnam improve energy efficiency in industrial sector
Under this project, industrial enterprises can access a new line of credit to fund their purchases of energy-efficiency and production-optimization technologies, thus reducing energy consumption and production costs and increasing their overall competitiveness in the domestic and international markets. With the support of the project, financial institutions and industrial enterprises will be able to prepare, evaluate and appraise energy efficiency projects. This will create a new line of business for financing institutions, providing loans to support industrial energy-efficiency investments, which will enable them to scale up energy-efficiency lending to industries. Funding under this project will be provided to participating financial institutions, which will then lend to industrial enterprises to invest in energy-efficient sub-projects. Of the $158 million, $100 million comes from the World Bank’s International Bank for Reconstruction and Development, the financing resource … [Read more...] about $102 million project jointly launched to help Vietnam improve energy efficiency in industrial sector
Aircraft carrier visit to boost Vietnam-US ties: foreign ministry spokesperson
A U.S. Navy aircraft carrier will dock in Vietnam’s central city of Da Nang next week for a goodwill visit aimed at boosting the two countries’ ties, the spokesperson of the Vietnamese foreign ministry said Thursday. The nuclear-powered aircraft carrier USS Carl Vinson, accompanied by guided missile cruiser USS Lake Champlain and destroyer USS USS Wayne E.Meyer, will be in Da Nang from March 5 to 9, spokesperson Le Thi Thu Hang told reporters in Hanoi. Hang said a number of activities are scheduled for the visit, including a welcome ceremony, a press conference, courtesy visits, technical exchanges, sports matches, and various community activities. The port call aligns with an agreement announced by the two countries in the joint statement issued during U.S. President Donald Trump’s visit to Vietnam in November 2017, she added. The event will also serve as an opportunity to contribute to the maintenance of peace, stability, security, cooperation, and development in … [Read more...] about Aircraft carrier visit to boost Vietnam-US ties: foreign ministry spokesperson
Government offices to trim 4,000 staff this year
As many as 265,106 civil servants will be included in the State payroll this year, a year-on-year decrease of about 4,000, according to a Prime Minister’s decision that takes effect this month. As many as 265,106 civil servants will be included in the State payroll this year, a year-on-year decrease of about 4,000, according to a Prime Minister’s decision that takes effect this month. — Photo thoibao.today The employment number does not include those working at the Public Security Ministry, Defence Ministry and public administrative staff in communes. Among 16 other ministries and six ministry-level agencies (Committee for Ethnic Minority Affairs, State Bank of Vietnam, Government Inspectorate, Government Office, HCM Mausoleum Management Board and National Financial Supervisory Committee), the Finance Ministry would employ the most with 70,771 positions, while the Construction Ministry will employ the least with 379 positions. Among 63 local governments across … [Read more...] about Government offices to trim 4,000 staff this year
Government News 12/2
Party leader plans to consolidate public trust General Secretary of the Communist Party of Việt Nam Nguyễn Phú Trọng pays a visit to Tây An Village in Thái Bình Province’s Tiền Hải District as the Lunar New Year festival approaches. The General Secretary of the Communist Party of Việt Nam (CPV), Nguyễn Phú Trọng, has emphasised the need to consolidate public trust to enable the country to push forward.In an exclusive interview with the Vietnam News Agency on the threshold of the Lunar New Year, Year of the Dog, the Party leader highlighted the country’s outstanding achievements in 2017 and outlined the main tasks for 2018.He said the fight against corruption had made marked progress thanks to drastic measures in making deeds match words.Trọng said that last year, many serious cases of corruption and economic crimes involving senior party and goverment officials were discovered and … [Read more...] about Government News 12/2
Airport operators defy Vietnam government inspectorate conclusion to collect road fee
Road tolls are still being collected at Vietnamese airports although the Government Inspectorate has previously concluded that the fee is against the law. In an announcement made three months ago, the Government Inspectorate stated that road tolls at airports across the country are not legal. However, Tuoi Tre (Youth) newspaper reporters noticed that the fee is still being collected at Tan Son Nhat International Airport in Ho Chi Minh City. All automobiles entering the airdrome are required to pay from VND10,000 (US$0.44) to VND40,000 ($1.76) regardless of how long they stay inside the venue. Nguyen Quang Linh, an Uber car driver, recounted his trip with a foreign passenger who booked a ride from the airport to downtown areas. Linh had to pay the VND10,000 toll despite only entering the facility for a few minutes to pick up his customer. Many passengers refused to pay the additional charge, the driver stated, adding that it is difficult to explain it to them. Four-wheeled vehicles are … [Read more...] about Airport operators defy Vietnam government inspectorate conclusion to collect road fee