Tony Foster, lawyer In the 25 years that I have lived in Hanoi, Vietnam has accomplished a feat worthy of Houdini by extricating itself from a web of sanctions and limitations. It deserves an Oscar for becoming everyone’s best friend in the process. Most people arriving in an unmarked, plain white Vietnam Airlines plane in 1994, clearing immigration and driving into Hanoi in a leaking Volga (on the old road via Gia Lam and the Chuong Duong bridge) were hard pressed to picture the potential; most were on postings of a few years, time-servers who often did not even try. I had the good fortune to work for a law firm that was established in 1743 and whose attitudes to anywhere east of Suez in those days retained a residual colonial bent. So I was posted to Vietnam for life, which coincidentally was the term for which many criminals sent to penal colonies like Australia. In such circumstances, one did not focus just on the short-term horizon. We had to believe in the long-term … [Read more...] about 1994-2019: Vietnam’s development pointers for North Korea
Vietnam import policies tariffs and restrictions
Vietnam upbeat about 2019 export prospects
(VEN) - In 2018, impressive import, export results contributed significantly to Vietnam’s gross domestic product (GDP) growth and macroeconomic stability, as well as its successful efforts to maintain stable exchange rates, control inflation and improve the balance of payments. The results created an impetus for achieving the targets set for 2019. High export value At a meeting to summarize operations of the Domestic Market Management Team in 2018, Nguyen Thi Mai Linh, Head of the Agricultural, Forest and Aquatic Product Import, Export Division of the Agency of Foreign Trade under the Ministry of Industry and Trade, said Vietnam’s export value continued to increase strongly. In December, foreign trade value reached an estimated US$42.2 billion, up 5.9 percent compared with December 2017. The annual import, export value exceeded US$482.23 billion, 12.64 percent higher compared with 2017. Export value reached an estimated US$245 billion, up 13.8 percent and exceeding … [Read more...] about Vietnam upbeat about 2019 export prospects
Vietnam’s economy grows robustly but risks intensify
Việt Nam continues to achieve robust growth accompanied by moderate inflation and a relatively stable exchange rate. —Photo tapchicongthuong.vn Economic growth in Viet Nam had proven resilient despite weakening external conditions, driven mainly by strong domestic demand and a dynamic export-oriented manufacturing sector, according to the World Bank (WB)’s update on recent economic developments in Viet Nam. According to Taking Stock, the WB’s bi-annual economic report on Viet Nam which was released yesterday, the pace of expansion was forecast to remain at 6.8 per cent this year, higher than the projected figure of 6.3 per cent for emerging markets in the East Asia and Pacific regions. Over the medium term, in line with global trends, Viet Nam would see a slower pace of 6.6 and 6.5 per cent in 2019 and 2020, respectively. Inflation would remain muted at 4 per cent as the result of tightening monetary policies. “Despite a challenging global context, … [Read more...] about Vietnam’s economy grows robustly but risks intensify
Vietnam set to trial Direct Corporate Power Purchase Agreement
On June 12 this year, at a seminar on renewable energy, the Electricity Regulatory Authority of Vietnam (ERAV) discussed and disclosed information about such a pilot DPPA. Generally, a DPPA is an agreement between a power generator and a corporate customer in which power is physically delivered and sold to the customer for its operation. ERAV said it is a time-consuming process since it and its consultants had to do research and collect massive amounts of information on fundamental issues, design, details, and criteria for DPPAs, especially for cases such as Vietnam. It is also challenging for ERAV to consult other departments of the Ministry of Investment and Trade for piloting the DPPA. ERAV’s consultants have submitted a first preliminary report on international experience regarding the basic design, mechanism and operation of DPPA. It is known that ERAV and its consultants also sent a questionnaire to several industries, sectors, companies and other stakeholders to seek their … [Read more...] about Vietnam set to trial Direct Corporate Power Purchase Agreement
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
Asia Pacific advances trade liberalisation as US swims against current
Market-opening international trade policy reform tends to yield positive results. When trade flows increase, nations on both ends tend to benefit. At the enterprise level, in a trade transaction both parties usually perceive a benefit, otherwise the transaction would not take place. Douglas Lippoldt, chief trade economist at HSBC Global Research Trade often delivers benefits domestically thanks to increases in productivity from economies of scale and specialisation, competition, and returns to investment in innovation. The economic gains generally outweigh any trade-related adjustment costs by a large margin. According to one big historical study, countries that liberalised their trade regimes were able to accelerate annual economic growth on average by about 1.5 percentage points. Among the Asia-Pacific nations we can see this in action. Global, regional, and bilateral accords are delivering increased market openness. This rules-based framework is helping to reduce policy … [Read more...] about Asia Pacific advances trade liberalisation as US swims against current
Vietnamese freight businesses need to improve service supply capabilities
Vietnam possesses huge potential for the development of its transportation industry, however, Vietnamese freight businesses need to enhance their professionalism and prestige in order to be able to compete against international firms. Vietnam has a huge demand for using freight services The statement was made by enterprises at a trade exchange program with the World Freight Organization (WFO), held by the Trade Promotion Agency under the Ministry of Industry and Trade (MOIT) in Ho Chi Minh City, on May 7. According to WFO President Leandro Harari, as an economy with a relatively high growth rate and a continuously increasing import-export demand in recent years, Vietnam has a lot of advantages for developing its freight sector. However, its freight costs still remain high compared to other countries, which partly stems from an unfavorable business climate, as well as costs in terms of import-export tariffs, and other costs related to customs clearance. The international … [Read more...] about Vietnamese freight businesses need to improve service supply capabilities
Imports, domestically assembled cars in battle for market share
Imported CBU (completely built unit) cars are expected to flood Vietnam, as domestic automobile manufacturers prepare to launch new models. Domestic automobile manufacturers plan to launch new models The Ministry of Transport (MOT) has stirred up the market by accepting an Indonesian Vehicle Type Approval (VTA) certificate. Three imported cars from Indonesia arrived last week from March 16-22. Prior to that, a large quantity of Thailand sourced cars were reportedly docked at Vietnam’s ports, ready for delivery after customs clearance. While importers rush to import cars, domestic automobile manufacturers have geared up with their production plans. VinFast, a newcomer in the market, has announced a plan to manufacture two more small-size petrol-run and electricity-run models, scheduled to hit the market in 2019. Hyundai Thanh Cong and Hyundai Group in South Korea have signed an MOU on building a new factory in 2019 which will help increase output for exports. … [Read more...] about Imports, domestically assembled cars in battle for market share
Vietnam hopes for export boost from new CPTPP trade deal
(VEN) - Once the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) enters into force, it will benefit all member countries. Vietnam is making greater efforts to take advantage of the trade agreement to expand export markets and increase export turnover. Opportunities for exports The CPTPP is a new free trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Vietnam’s participation in the CPTPP will benefit the country, as it will contribute to boosting exports to major markets such as Japan, Australia, Canada and Mexico. The CPTPP will also provide opportunities for Vietnam to strengthen foreign direct investment (FDI) in fields that the country seeks to develop. In addition, the pact will force the country to make greater efforts in institutional reforms in order to create a more transparent business and investment environment. Vietnam’s garment and textile exports to the … [Read more...] about Vietnam hopes for export boost from new CPTPP trade deal
WTO set for fractious meeting as US trade policy grates
The World Trade Organization is set for a cacophonous meeting on Friday when the United States, China and the European Union will be among those airing grievances about each other's trade policies, an agenda for themeeting showed on Tuesday. U.S. President Donald Trump gives out pens he used to sign presidential proclamations placing tariffs on steel and aluminum imports to workers from the steel and aluminum industries at the White House in Washington, U.S. March 8, 2018 - Photo by Reuters The WTO's Council for Trade in Goods listed 15 potential trade conflicts on an unusually full agenda, including three apiece aimed at the United States and China. Earlier on Tuesday, India hosted an informal WTO meeting of nearly 50 countries in New Delhi, where they warned about the serious threat to the WTO from unilateral trade actions, a pointed reference to steel and aluminium tariffs imposed by the United States that have caused a global outcry. The Council's agenda showed China and … [Read more...] about WTO set for fractious meeting as US trade policy grates