Date : 05/03/2009
Vietnam, the world’s second-largest coffee producer, may harvest 16 million bags this year, about 6 percent less than initially forecast after poor weather trimmed the size of beans, according to a producers’ group.
“Bad weather at the start of the crop has considerably raised the proportion of small beans,” Luong Van Tu, chairman of the Vietnam Coffee and Cocoa Association, said today. The association in December had forecast a crop of 17 million bags in the year to Sept. 30. A bag weighs 60 kilograms (132 pounds).
A smaller-than-expected 2008/09 crop may help to arrest a drop in robusta prices, which have declined by about 45 percent over the past year. The nation’s crop was estimated at 20 million bags in January, according to a forecast from Belgian bank Fortis.
“Bad weather did have an impact on the beans but probably not that much, at least in our growing area,” said Nguyen Xuan Thai, a director of Dak Lak-based Thang Loi Coffee Co., the country’s largest grower. Dak Lak is Vietnam’s main region for cultivating the crop.
Robusta coffee for May delivery gained as much as 0.5 percent to $1,512 a metric ton today, snapping a five-day losing streak that had left the 10-ton contract at its lowest since it started trade on London’s Liffe exchange in January 2008.
‘Black Beans’
“We’ve also had to reject more black beans that were caused by rains during the picking and drying period,” Tu said in a telephone interview from Hanoi, Vietnam’s capital. Black beans are of low quality and don’t meet standards for international shipment; most are discarded.
Two weeks of prolonged rains last year interrupted the harvest, according to traders including Nguyen Ngoc Thu in Ho Chi Minh City for Madrid-based Icona Cafe, which is among the 10 biggest importers of Vietnamese produce. The rains delayed the picking of berries and hampered drying, they said.
Vietnam’s 2008/09 crop might have been lower than 19.5 million bags due to the heavy rains, smaller beans and an increase in the quantity of black beans, Hong Kong-based SW Commodities said in a March 2 note. F.O. Licht has estimated the crop at 20 million bags, up from 18 million a year earlier.
“About 50 percent of the crop has been sold so far,” said Hua Thanh Hong, the business manager at the Sept. 2nd Import- Export Co.
Source: Bloomberg - By Nguyen Dieu Tu Uyen
Tuesday, March 10, 2009
Vietnam rice export orders suggest H2 pace may slow
Date : 04/03/2009
Vietnamese exporters have already contracted to sell 3.65 million tonnes of rice, 73 percent of the annual target for 2009, which suggested the pace of exports would slow in the second half.
Exporters would load 3.4 million tonnes in the first half, while the remaining grain would be sourced from the next summer-autumn crop, according to the Nong Nghiep Vietnam (Vietnam Agriculture) newspaper, which is run by the Agriculture Ministry.
The loading plan was agreed at a meeting on Tuesday between the Agriculture Ministry in charge of rice production and the Industry and Trade Ministry, which oversees rice exports, it said.
The volume of rice contracted so far represents two-thirds of Vietnam's export target of up to 5 million tonnes this year, meaning exporters would slow transactions in the second half of the year. Vietnam exported 4.68 million tonnes of rice in 2008.
The Vietnam Food Association has already put a curb on rice exports, rejecting the registration of any new contracts with shipments through June, but it still allows deals with loading in the third quarter ending September.
Harvesting of the summer-autumn rice crop, Vietnam's second biggest after the current winter-spring crop, peaks in August.
Rice loading in March was projected to rise to 800,000 tonnes, which would be a record, beating the 650,000 tonnes loaded last month, the highest ever.
Exports of the grain in the first two months doubled from the same period last year to 919,000 tonnes, the government has said.
Source: Reuters
Vietnamese exporters have already contracted to sell 3.65 million tonnes of rice, 73 percent of the annual target for 2009, which suggested the pace of exports would slow in the second half.
Exporters would load 3.4 million tonnes in the first half, while the remaining grain would be sourced from the next summer-autumn crop, according to the Nong Nghiep Vietnam (Vietnam Agriculture) newspaper, which is run by the Agriculture Ministry.
The loading plan was agreed at a meeting on Tuesday between the Agriculture Ministry in charge of rice production and the Industry and Trade Ministry, which oversees rice exports, it said.
The volume of rice contracted so far represents two-thirds of Vietnam's export target of up to 5 million tonnes this year, meaning exporters would slow transactions in the second half of the year. Vietnam exported 4.68 million tonnes of rice in 2008.
The Vietnam Food Association has already put a curb on rice exports, rejecting the registration of any new contracts with shipments through June, but it still allows deals with loading in the third quarter ending September.
Harvesting of the summer-autumn rice crop, Vietnam's second biggest after the current winter-spring crop, peaks in August.
Rice loading in March was projected to rise to 800,000 tonnes, which would be a record, beating the 650,000 tonnes loaded last month, the highest ever.
Exports of the grain in the first two months doubled from the same period last year to 919,000 tonnes, the government has said.
Source: Reuters
PROSPECTIVE INVESTORS: LABOR REGIME IN VIETNAM
Vietnamese people and foreigners working in Vietnam are subject to the Labor Code. The Labor Code has created a legal framework which sets out the rights and obligations of employers and employees, working hours, labor contracts, payment of social insurance, overtime work, strikes, and termination of employment contracts, etc.
1. Working Age
The minimum working age in Vietnam is 15. An apprentice at a job training centre must be at least thirteen (13) years of age, except in the case of certain jobs in respect of which the Ministry of Labour, War Invalids and Social Affairs determines otherwise, and must be sufficiently healthy to satisfy the requirements of the job.
2. Recruiting Procedure
Foreign invested enterprises (FIEs) may recruit Vietnamese employees directly or may contract with an employment service agency to do so. The FIEs are required to notify the list of recruited employees to the local authority in charge of the State administration of labor.
3. Labor Contract
The labor contract must be in writing and in accordance with the model labor contract issued by the Ministry of Labor, War Invalids and Social Affairs. Verbal agreements may be entered into with domestic servants or the temporary workers working for less than three months. A labor contract can be one of the following types:
• An indefinite term labor contract is a contract in which the two parties do not determine the term and the time for termination of the validity of the contract;
• A definite term labor contract is a contract in which the two parties determine the term and the time for termination of the validity of the contract as a period from twelve (12) months to thirty six (36) months; and
• A labor contract for a specific or seasonal job with duration of less than twelve (12) months.
For contracts lasting less than three months, a written contract is not required. The probation period can last up to a maximum of 60 days for jobs demanding a special skill but is 30 days for other jobs. The salary of a worker during the probation period cannot be less than 70% of the agreed salary.
During the probation period, contracts can be terminated by either party without a notice period and payment of indemnities.
4. Termination of Labor Contract
An employer can terminate a labor contract early under any of the following circumstances:
(i) The employee repeatedly fails to perform his or her work in accordance with the labor contract;
(ii) An employee is disciplined or dismissed in accordance with the Labor Code;
(iii) Where the employee is ill or suffers injury and remains unable to work after receiving treatment for a period of one year for an indefinite term contract, six months in the case of a definite term of contract and half the contract term in the case of a specific or seasonal job;
(iv) The employer is forced to reduce its production and employment while trying to recover from a natural disaster, a fire or an event of force majeure; and
(v) The employer ceases operations.
Except unilateral termination in item (ii) above, an advance notice of 45 days is required for an indefinite term contract, 30 days for a definite term contract with duration of one year to three years and three days for a specific or seasonal job less than one year.
An employer has no right to terminate a labor contract:
• of an employee who is suffering from an illness or injury caused by a work-related accident or occupational disease and is under medical care; or
• of an employee who is on annual leave, personal leave of absence or any type of leave permitted by the employer; or
• of a female employee for reason of marriage, pregnancy, taking maternity leave, or raising a child under the age of twelve (12) months, except where the enterprise ceases its operation.
5. Illegal Termination of Labor Contract
If an employer unlawfully terminates the employment of an employee, the employee must be re-employed and the employee must pay compensation equal to the amount of lost wages. Where the employee refuses to return to work, the employee must be paid lost wages plus an allowance equal to half a month’s salary for each year of employment plus allowances (if any).
6. Working Hours
The law provides for an 8-hour working day or a 48-hour working week. The employee may work overtime but the overtime should not exceed 4 hours per day and 200 hours per year. In certain special cases stipulated by the Government, overtime hours can be increased to a maximum of 300 hours per year.
Businesses in all economic sectors, including businesses with foreign invested capital, are encouraged to adopt a 40 hour working week.
7. Annual Leaves
The employee with 12 months service is entitled to an annual leave with full pay. The annual leave will be classified as follows:
• 12 days for a person working under normal conditions;
• 14 days for a person involved with heavy, noxious or dangerous job activity or working in places with harsh living conditions or for persons under 18 years of age; and
• 16 days for persons involved with especially heavy, noxious and dangerous jobs activity or working in places with especially harsh living conditions.
The number of days of annual leave shall be increased proportionally to the period of employment in an enterprise or with an employer by one additional day for every five years of employment.
8. Compulsory Insurances
There are 3 compulsory insurances (including health, social and unemployment insurances) applicable to every employer (including FIE) and employee (excluding foreign employee) who is working at least 3 months.
8.1. Health Insurance
Both the employer and the employee must make health insurance contribution to the Social Insurance Fund. The employer will have to pay 2% of the total wage fund and the employee is required to pay 1% of his/her salary provided in the labor contract.
8.2. Social Insurance
a. Employer
The monthly contribution of employers is made as follows:
• 15% of total salary fund from Jan. 2007 to Dec. 2009.
• 16% of total salary fund from Jan. 2010 to Dec. 2011.
• 17% of total salary fund from Jan. 2012 to Dec. 2013.
• 18% of total salary fund from Jan. 2014 onwards.
b. Employees
The monthly contribution of employees is made as follows:
• 5% of her/his salary from Jan. 2007 to Dec. 2009.
• 6% of her/his salary from Jan. 2010 to Dec. 2011.
• 7% of her/his salary from Jan. 2012 to Dec. 2013.
• 8% of her/his salary from Jan. 2014 onwards.
8.3. Unemployment Insurance
Unemployment insurance shall apply to (i) employees who are working in an enterprise with an indefinite term or a term lasting between 12 and 36 months, and (ii) employer who recruits 10 employees or more. The contribution is made as follows:
• Employee: 1% of his/her monthly salary provided in the labor contract;
• Employer: 1% of monthly salary fund.
9. Employment of Foreigners
Generally, foreign employees should be recruited for work positions intensively requiring technical or management skills. The employer is required to design a plan or program to train Vietnamese employees to replace such foreign employees.
In order to work in Vietnam, foreigners must obtain a work permit from labor authorities (i.e. the Department of Labor, War Invalids and Social Affairs of the province/city where their employer is located) prior to signing a labor contracts with their employers.
Regarding expatriates transferred within their enterprises which are operational in Vietnam, at least 20% of the total number of managers, managing directors and experts must be Vietnamese citizens.
However, a foreign-invested enterprise is allowed to employ at least 03 foreign managers, managing directors and experts.
Foreigners working for businesses, agencies, and organizations in Vietnam for 3 months or more must get work permits, except the following cases:
• Foreigners entering Vietnam to work for less than 3 months;
• Foreigners are members of a limited liability company with 2 members or more;
• A foreigner is the owner of a one-member limited liability company;
• A foreigner is the member of a joint stock company’s management board;
• Foreigners entering Vietnam to offer their services;
• Foreigners entering Vietnam to handle emergency cases; foreign lawyers have been granted job practice permits by the Vietnamese Ministry of Justice as regulated by the law.
In cases where a work permit is not required, the employer has to submit to the Province’s Department of Labor, War Invalids and Social Affairs a list of foreign workers comprising their name, age, nationality, passport number, and the starting and ending date of the job assumed by the worker. This list shall be submitted 7 days prior to the starting work date.
The employer must apply for a work permit for its foreigner employees at the Province’s Department of Labor, War Invalids and Social Affairs or any of the authorized EPs and IZs Authority.
After obtaining a work permit, the employer must sign a labor contract in writing with the employee (not including foreign workers assigned by the foreign party to work in Vietnam) and send a copy thereof to the authority that has issued the work permit.
The work permit has the same duration as that of the labor contract to be signed or of job assignment from the parent company but in any case, the period should not exceed 36 months and may be renewed.
10. Minimum Salary
Vietnamese law regulates a minimum salary of Vietnamese employees who are working for FIEs. Therefore, the minimum salary for an employee working in such enterprises must not be less than:
• VN$1,200,000 per month (equivalent to US$70) is applicable to businesses operating in inner districts of Ho Chi Minh City and Hanoi.
• VN$1,080,000 per month (equivalent to US$63) is applicable to businesses operating in suburban districts of Hanoi and Ho Chi Minh City; inner districts of Hai Phong City, Ha Long City of Quang Ninh Province, Bien Hoa City of Dong Nai Province; Vung Tau City of Ba Ria-Vung Tau Province; Thu Dau Mot Town and district of Thuan An, Di An, Ben Cat and Tan Uyen of Binh Duong Province.
• VN$950,000 per month (equivalent to US$56) is applicable to businesses operating in remain suburban districts of Hanoi; Bac Ninh, Bac Giang, Hung Yen, Hai Duong, Vinh Phuc, Hai Phong, Quang Ninh; Da Lat city, Bao Loc town of Lam Dong province; Nha Trang city , Cam Ranh town of Khanh Hoa province; Trang Bang town of Tay Ninh province; remain towns of Binh Duong province, Dong Nai; Tan An, Duc Hoa, Ben Luc, Can Duoc of Long An province; remaining towns of Can Tho city; Ba Ria, Chau Duc, Long Dien, Dat Do, Xuyen Moc of Ba Ria - Vung Tau.
• VN$920,000 (equivalent to US$54) is applicable to businesses operating in the remaining areas.
In addition, the minimum salary for skilled employees (including employees are trained by enterprises) must be 7% or more higher than the minimum salary as provided in 3 items above.
-ITPC
1. Working Age
The minimum working age in Vietnam is 15. An apprentice at a job training centre must be at least thirteen (13) years of age, except in the case of certain jobs in respect of which the Ministry of Labour, War Invalids and Social Affairs determines otherwise, and must be sufficiently healthy to satisfy the requirements of the job.
2. Recruiting Procedure
Foreign invested enterprises (FIEs) may recruit Vietnamese employees directly or may contract with an employment service agency to do so. The FIEs are required to notify the list of recruited employees to the local authority in charge of the State administration of labor.
3. Labor Contract
The labor contract must be in writing and in accordance with the model labor contract issued by the Ministry of Labor, War Invalids and Social Affairs. Verbal agreements may be entered into with domestic servants or the temporary workers working for less than three months. A labor contract can be one of the following types:
• An indefinite term labor contract is a contract in which the two parties do not determine the term and the time for termination of the validity of the contract;
• A definite term labor contract is a contract in which the two parties determine the term and the time for termination of the validity of the contract as a period from twelve (12) months to thirty six (36) months; and
• A labor contract for a specific or seasonal job with duration of less than twelve (12) months.
For contracts lasting less than three months, a written contract is not required. The probation period can last up to a maximum of 60 days for jobs demanding a special skill but is 30 days for other jobs. The salary of a worker during the probation period cannot be less than 70% of the agreed salary.
During the probation period, contracts can be terminated by either party without a notice period and payment of indemnities.
4. Termination of Labor Contract
An employer can terminate a labor contract early under any of the following circumstances:
(i) The employee repeatedly fails to perform his or her work in accordance with the labor contract;
(ii) An employee is disciplined or dismissed in accordance with the Labor Code;
(iii) Where the employee is ill or suffers injury and remains unable to work after receiving treatment for a period of one year for an indefinite term contract, six months in the case of a definite term of contract and half the contract term in the case of a specific or seasonal job;
(iv) The employer is forced to reduce its production and employment while trying to recover from a natural disaster, a fire or an event of force majeure; and
(v) The employer ceases operations.
Except unilateral termination in item (ii) above, an advance notice of 45 days is required for an indefinite term contract, 30 days for a definite term contract with duration of one year to three years and three days for a specific or seasonal job less than one year.
An employer has no right to terminate a labor contract:
• of an employee who is suffering from an illness or injury caused by a work-related accident or occupational disease and is under medical care; or
• of an employee who is on annual leave, personal leave of absence or any type of leave permitted by the employer; or
• of a female employee for reason of marriage, pregnancy, taking maternity leave, or raising a child under the age of twelve (12) months, except where the enterprise ceases its operation.
5. Illegal Termination of Labor Contract
If an employer unlawfully terminates the employment of an employee, the employee must be re-employed and the employee must pay compensation equal to the amount of lost wages. Where the employee refuses to return to work, the employee must be paid lost wages plus an allowance equal to half a month’s salary for each year of employment plus allowances (if any).
6. Working Hours
The law provides for an 8-hour working day or a 48-hour working week. The employee may work overtime but the overtime should not exceed 4 hours per day and 200 hours per year. In certain special cases stipulated by the Government, overtime hours can be increased to a maximum of 300 hours per year.
Businesses in all economic sectors, including businesses with foreign invested capital, are encouraged to adopt a 40 hour working week.
7. Annual Leaves
The employee with 12 months service is entitled to an annual leave with full pay. The annual leave will be classified as follows:
• 12 days for a person working under normal conditions;
• 14 days for a person involved with heavy, noxious or dangerous job activity or working in places with harsh living conditions or for persons under 18 years of age; and
• 16 days for persons involved with especially heavy, noxious and dangerous jobs activity or working in places with especially harsh living conditions.
The number of days of annual leave shall be increased proportionally to the period of employment in an enterprise or with an employer by one additional day for every five years of employment.
8. Compulsory Insurances
There are 3 compulsory insurances (including health, social and unemployment insurances) applicable to every employer (including FIE) and employee (excluding foreign employee) who is working at least 3 months.
8.1. Health Insurance
Both the employer and the employee must make health insurance contribution to the Social Insurance Fund. The employer will have to pay 2% of the total wage fund and the employee is required to pay 1% of his/her salary provided in the labor contract.
8.2. Social Insurance
a. Employer
The monthly contribution of employers is made as follows:
• 15% of total salary fund from Jan. 2007 to Dec. 2009.
• 16% of total salary fund from Jan. 2010 to Dec. 2011.
• 17% of total salary fund from Jan. 2012 to Dec. 2013.
• 18% of total salary fund from Jan. 2014 onwards.
b. Employees
The monthly contribution of employees is made as follows:
• 5% of her/his salary from Jan. 2007 to Dec. 2009.
• 6% of her/his salary from Jan. 2010 to Dec. 2011.
• 7% of her/his salary from Jan. 2012 to Dec. 2013.
• 8% of her/his salary from Jan. 2014 onwards.
8.3. Unemployment Insurance
Unemployment insurance shall apply to (i) employees who are working in an enterprise with an indefinite term or a term lasting between 12 and 36 months, and (ii) employer who recruits 10 employees or more. The contribution is made as follows:
• Employee: 1% of his/her monthly salary provided in the labor contract;
• Employer: 1% of monthly salary fund.
9. Employment of Foreigners
Generally, foreign employees should be recruited for work positions intensively requiring technical or management skills. The employer is required to design a plan or program to train Vietnamese employees to replace such foreign employees.
In order to work in Vietnam, foreigners must obtain a work permit from labor authorities (i.e. the Department of Labor, War Invalids and Social Affairs of the province/city where their employer is located) prior to signing a labor contracts with their employers.
Regarding expatriates transferred within their enterprises which are operational in Vietnam, at least 20% of the total number of managers, managing directors and experts must be Vietnamese citizens.
However, a foreign-invested enterprise is allowed to employ at least 03 foreign managers, managing directors and experts.
Foreigners working for businesses, agencies, and organizations in Vietnam for 3 months or more must get work permits, except the following cases:
• Foreigners entering Vietnam to work for less than 3 months;
• Foreigners are members of a limited liability company with 2 members or more;
• A foreigner is the owner of a one-member limited liability company;
• A foreigner is the member of a joint stock company’s management board;
• Foreigners entering Vietnam to offer their services;
• Foreigners entering Vietnam to handle emergency cases; foreign lawyers have been granted job practice permits by the Vietnamese Ministry of Justice as regulated by the law.
In cases where a work permit is not required, the employer has to submit to the Province’s Department of Labor, War Invalids and Social Affairs a list of foreign workers comprising their name, age, nationality, passport number, and the starting and ending date of the job assumed by the worker. This list shall be submitted 7 days prior to the starting work date.
The employer must apply for a work permit for its foreigner employees at the Province’s Department of Labor, War Invalids and Social Affairs or any of the authorized EPs and IZs Authority.
After obtaining a work permit, the employer must sign a labor contract in writing with the employee (not including foreign workers assigned by the foreign party to work in Vietnam) and send a copy thereof to the authority that has issued the work permit.
The work permit has the same duration as that of the labor contract to be signed or of job assignment from the parent company but in any case, the period should not exceed 36 months and may be renewed.
10. Minimum Salary
Vietnamese law regulates a minimum salary of Vietnamese employees who are working for FIEs. Therefore, the minimum salary for an employee working in such enterprises must not be less than:
• VN$1,200,000 per month (equivalent to US$70) is applicable to businesses operating in inner districts of Ho Chi Minh City and Hanoi.
• VN$1,080,000 per month (equivalent to US$63) is applicable to businesses operating in suburban districts of Hanoi and Ho Chi Minh City; inner districts of Hai Phong City, Ha Long City of Quang Ninh Province, Bien Hoa City of Dong Nai Province; Vung Tau City of Ba Ria-Vung Tau Province; Thu Dau Mot Town and district of Thuan An, Di An, Ben Cat and Tan Uyen of Binh Duong Province.
• VN$950,000 per month (equivalent to US$56) is applicable to businesses operating in remain suburban districts of Hanoi; Bac Ninh, Bac Giang, Hung Yen, Hai Duong, Vinh Phuc, Hai Phong, Quang Ninh; Da Lat city, Bao Loc town of Lam Dong province; Nha Trang city , Cam Ranh town of Khanh Hoa province; Trang Bang town of Tay Ninh province; remain towns of Binh Duong province, Dong Nai; Tan An, Duc Hoa, Ben Luc, Can Duoc of Long An province; remaining towns of Can Tho city; Ba Ria, Chau Duc, Long Dien, Dat Do, Xuyen Moc of Ba Ria - Vung Tau.
• VN$920,000 (equivalent to US$54) is applicable to businesses operating in the remaining areas.
In addition, the minimum salary for skilled employees (including employees are trained by enterprises) must be 7% or more higher than the minimum salary as provided in 3 items above.
-ITPC
PROCEDURES FOR SETTING UP A FOREIGN-INVESTED ENTERPRISE IN VIETNAM
1. Investment Certificate
For first time foreign investors must have an investment project before being granted an investment certificate. The investment certificate also serves as the business registration certificate. The investment certificate shall be issued as part of the investment registration and/or evaluation processes based on (i) the type of project, (ii) the scale of invested capital and (iii) whether such project is in a conditional investment sectors as mentioned in Section 1.1 of Part "Overview of investment in Vietnam".
The investment certificate for foreign invested project will have a fixed term not longer than 50 years, which by law may be extended up to 70 years with the approval of the Government.
The investment certificate will set out the specific scope of business activities that a foreign investor is permitted to undertake in Vietnam, the amount of investment capital, the location and the land area to be used, and the relevant incentives (if any). The investment certificate must also indicate the project implementation schedule for the investment.
2. Procedures
The licensing authority shall issue an investment certificate within a time limit of 15 working days (for cases of a foreign project subject to the registration process) or 30 working days (for cases of a foreign project subject to the evaluation process) from the date of receipt of a complete and valid application.
The registration process applies to a foreign-invested project with invested capital of less than VND300 billion and is not included in the list of conditional business sector. The evaluation process applies to the two following cases:
• Foreign projects with capital of at least VND300 billion: the evaluation process will in substance focus on the project’s compliance with the applicable infrastructure master plan, land use master plan and the master plan for raw materials and other natural resources. Other factors to be considered include land use requirements, project implementation schedule and environmental impact.
• Foreign projects included in the list of conditional business sectors as mentioned in Section 1.2 of Part "Overview of investment in Vietnam" regardless of the scale of the invested capital: The evaluation process will focus on compliance with applicable sector conditions. If the project has capital exceeding VND 300 billion other factors as discussed above shall also be considered.
3. Licensing Authority
The licensing authority is further decentralized to provincial people’s committees and provincial boards of management of industrial zones, export processing zones and hi-tech zones (“Board of Management”). With respect to certain important or sensitive business sectors, the grant of investment certificate by a provincial people’s committee or a Board of Management must be based on an investment policy or economic plan that has already been approved by the Prime Minister.
a. Prime Minister’s Approval
The following projects are required to be obtained the approval on the investment policy from the Prime Minister:
(i) Construction and commercial operation of airports; air transportation;
(ii) Construction and commercial operation of national sea ports;
(iii) Exploration, production and processing of petroleum; exploration and mining of minerals;
(iv) Radio and television broadcasting;
(v) Commercial operation of casinos;
(vi) Production of cigarettes;
(vii) Establishment of university training establishments;
(viii) Establishment of industrial zones, export processing zones, high-tech zones and economic zones.
If any of these projects listed above are already included in an economic plan approved by the Prime Minister and are consistent with the conditions in an international treaty to which Vietnam is a signatory, the provincial people’s committee or the Board of Management can proceed to grant the investment certificate without obtaining a separate approval from the Prime Minister. If any of these projects are not included in an economic plan approved by the Prime Minister or does not meet conditions of an international treaty to which Vietnam is a signatory, the provincial people’s committee or the Board of Management must obtain approval from the Prime Minister prior to the grant of the investment certificate and concurrently coordinate with the MPI and other ministries to propose to the Prime Minister to decide on any supplement or adjustment to the economic plan.
b. Provincial People’s Committee
The provincial people’s committee has the authority to consider and grant an investment certificate to any investment project within its provincial territory regardless of the amount of investment capital or intended investment activities. In particular, a provincial people’s committee is authorized to license:
• Investment projects located outside industrial zones, export processing zones and high-tech zones; and
• Investment projects to develop infrastructure for industrial zones, export processing zones and high-tech zones where the Board of Management in that province has not been established.
The provincial Department of Planning and Investment is responsible for receiving application documents for investment certificates for and on behalf of the relevant people’s committees.
c. Board of Management
The Board of Management will consider and grant investment certificates to investment projects made in an industrial zone, export processing zone and high-tech zone.
- ITPC
For first time foreign investors must have an investment project before being granted an investment certificate. The investment certificate also serves as the business registration certificate. The investment certificate shall be issued as part of the investment registration and/or evaluation processes based on (i) the type of project, (ii) the scale of invested capital and (iii) whether such project is in a conditional investment sectors as mentioned in Section 1.1 of Part "Overview of investment in Vietnam".
The investment certificate for foreign invested project will have a fixed term not longer than 50 years, which by law may be extended up to 70 years with the approval of the Government.
The investment certificate will set out the specific scope of business activities that a foreign investor is permitted to undertake in Vietnam, the amount of investment capital, the location and the land area to be used, and the relevant incentives (if any). The investment certificate must also indicate the project implementation schedule for the investment.
2. Procedures
The licensing authority shall issue an investment certificate within a time limit of 15 working days (for cases of a foreign project subject to the registration process) or 30 working days (for cases of a foreign project subject to the evaluation process) from the date of receipt of a complete and valid application.
The registration process applies to a foreign-invested project with invested capital of less than VND300 billion and is not included in the list of conditional business sector. The evaluation process applies to the two following cases:
• Foreign projects with capital of at least VND300 billion: the evaluation process will in substance focus on the project’s compliance with the applicable infrastructure master plan, land use master plan and the master plan for raw materials and other natural resources. Other factors to be considered include land use requirements, project implementation schedule and environmental impact.
• Foreign projects included in the list of conditional business sectors as mentioned in Section 1.2 of Part "Overview of investment in Vietnam" regardless of the scale of the invested capital: The evaluation process will focus on compliance with applicable sector conditions. If the project has capital exceeding VND 300 billion other factors as discussed above shall also be considered.
3. Licensing Authority
The licensing authority is further decentralized to provincial people’s committees and provincial boards of management of industrial zones, export processing zones and hi-tech zones (“Board of Management”). With respect to certain important or sensitive business sectors, the grant of investment certificate by a provincial people’s committee or a Board of Management must be based on an investment policy or economic plan that has already been approved by the Prime Minister.
a. Prime Minister’s Approval
The following projects are required to be obtained the approval on the investment policy from the Prime Minister:
(i) Construction and commercial operation of airports; air transportation;
(ii) Construction and commercial operation of national sea ports;
(iii) Exploration, production and processing of petroleum; exploration and mining of minerals;
(iv) Radio and television broadcasting;
(v) Commercial operation of casinos;
(vi) Production of cigarettes;
(vii) Establishment of university training establishments;
(viii) Establishment of industrial zones, export processing zones, high-tech zones and economic zones.
If any of these projects listed above are already included in an economic plan approved by the Prime Minister and are consistent with the conditions in an international treaty to which Vietnam is a signatory, the provincial people’s committee or the Board of Management can proceed to grant the investment certificate without obtaining a separate approval from the Prime Minister. If any of these projects are not included in an economic plan approved by the Prime Minister or does not meet conditions of an international treaty to which Vietnam is a signatory, the provincial people’s committee or the Board of Management must obtain approval from the Prime Minister prior to the grant of the investment certificate and concurrently coordinate with the MPI and other ministries to propose to the Prime Minister to decide on any supplement or adjustment to the economic plan.
b. Provincial People’s Committee
The provincial people’s committee has the authority to consider and grant an investment certificate to any investment project within its provincial territory regardless of the amount of investment capital or intended investment activities. In particular, a provincial people’s committee is authorized to license:
• Investment projects located outside industrial zones, export processing zones and high-tech zones; and
• Investment projects to develop infrastructure for industrial zones, export processing zones and high-tech zones where the Board of Management in that province has not been established.
The provincial Department of Planning and Investment is responsible for receiving application documents for investment certificates for and on behalf of the relevant people’s committees.
c. Board of Management
The Board of Management will consider and grant investment certificates to investment projects made in an industrial zone, export processing zone and high-tech zone.
- ITPC
Wednesday, March 4, 2009
VN exchanges continue to slide with no end in sight
(21-02-2009)
HA NOI — The HCM City Stock Exchange turned in its sixth consecutive day of declines yesterday, with the VN-Index closing off another 0.89 per cent to 252.57 points.
Trading volume topped 7.6 million shares, with a total value of VND138 billion (US$7.8 million). Losers outnumbered advancers by 86 to 58.
Of active shares, Phu My Fertilisers (DPM), PetroVietnam Drilling (PVD) and Vinpearl Tourism and Trading Co (VPL) all managed gains on the day, while others tended to decline. Vincom hit its floor price.
Cable and Telecommunications Materials Co (SAM) was the most active share on the day, with 620,000, nearly matched by Sacombank (STB).
Penny stocks such as Bien Hoa Sugar (BHS), Binh Trieu Construction and Engineering (BTC), Viet-Han Corporation (VHG) and Sai Gon Beverages (Tri) picked up value, keeping the VN-Index from declining further.
Hoang Thach Lan of SME Securities Co said VN-Index could continue to decline to as low as 220 points, depending on the state of the economy.
Long-term investors needed to be patient, choose safe shares and keep a close eye on market changes before making any decision to buy, Lan said.
In Ha Noi, the HASTC-Index hit a new all-time law, as it dropped 1.07 points to close at 84.2. About 4.3 million shares were traded with a total value of VND62.8 billion ($3.5 million), up in volume but down in value from Wednesday’s session.
— VNS
HA NOI — The HCM City Stock Exchange turned in its sixth consecutive day of declines yesterday, with the VN-Index closing off another 0.89 per cent to 252.57 points.
Trading volume topped 7.6 million shares, with a total value of VND138 billion (US$7.8 million). Losers outnumbered advancers by 86 to 58.
Of active shares, Phu My Fertilisers (DPM), PetroVietnam Drilling (PVD) and Vinpearl Tourism and Trading Co (VPL) all managed gains on the day, while others tended to decline. Vincom hit its floor price.
Cable and Telecommunications Materials Co (SAM) was the most active share on the day, with 620,000, nearly matched by Sacombank (STB).
Penny stocks such as Bien Hoa Sugar (BHS), Binh Trieu Construction and Engineering (BTC), Viet-Han Corporation (VHG) and Sai Gon Beverages (Tri) picked up value, keeping the VN-Index from declining further.
Hoang Thach Lan of SME Securities Co said VN-Index could continue to decline to as low as 220 points, depending on the state of the economy.
Long-term investors needed to be patient, choose safe shares and keep a close eye on market changes before making any decision to buy, Lan said.
In Ha Noi, the HASTC-Index hit a new all-time law, as it dropped 1.07 points to close at 84.2. About 4.3 million shares were traded with a total value of VND62.8 billion ($3.5 million), up in volume but down in value from Wednesday’s session.
— VNS
Vietnam's Garment And Textile Industry: Abundance Of Opportunities!
Vietnam is one of the top 10 garment exporters in the world and the garment and textile industry is the country’s second largest in terms of foreign exchange earnings.
The rise in exports has been quite dramatic since the turn of the century. The export value has increased from $1.9 billion in 2000 to $7.8 billion in 2007. The early figures for 2008 show increasing volumes and values, particularly to the United States which is Vietnam’s largest single export market for garments and textiles, accounting for approximately 54 per cent of Vietnam’s garment exports.
Total industry exports for the year are expected to be greater than $9 billion. Some industry experts predict that exports in this sector will reach $25 billion by 2020.
In addition to being a highly significant contributor to export earnings, the garment and textile sector employs around two million people, of whom 80 per cent are female, many are migrants from the poorer rural provinces. As migrant workers are often responsible for supporting extended families in the countryside, there are potentially millions of lives dependent on the sector’s performance. Significant changes in the sector can have major social impact.
Recent data (2006) from the Ho Chi Minh City Association of Garments, Textiles, Embroidery and Knitting (Agtek) and the Vietnam Textile and Apparel Association (Vitas) indicate that there are around 2,000 garment and textile enterprises in Vietnam, including 50 state-owned enterprises (SOEs), 1,400 private enterprises and 450 foreign direct-investment (FDI) enterprises.
Of these, approximately 1,100 companies, including some 200 foreign-invested companies, are based in and around Ho Chi Minh City. Out of 2,000 companies, 1,280 are garment enterprises, 120 are spinning companies, 340 are textile ventures, and the remaining 260 are commerce and service businesses.
The state still plays an important role in the textile sector through its share in the Vinatex group and other SOEs whilst the garment sector has become an increasingly private sector-based industry as SOEs equitise and foreign companies increase their investments.
However, whilst the sector may be large and significant in many ways, the ‘value added’ of the garment industry is low as most raw materials such as fibres, yarns, fabrics and garment accessories are imported. In 2006, fabric imports were worth $2,954 million. Most of the imported textiles have been re-exported as garments.
Buyers from a number of the world’s leading textile and apparel companies have sourced apparel from Vietnam including Express, Hucke, Itochu, JC Penney, Jupitar, Kmart, Kowa, Lee Cooper, Li & Fung, Mast Industries, Nichimen, Nissho Iwai, Otto, Sara Lee, Seidensticker, Sumitomo, Tomen, Tommy Hilfiger, Victoria’s Secret, and Wal-Mart. However, the proportion of domestic inputs in final products is still low. In the textile industry, domestic inputs make up only 10 to 15 per cent of total inputs, while the ratio is around 30 per cent in the garment industry.
The government has a clear strategy of increasing the supply of domestically produced inputs such as raw cotton, yarns, fabrics and garment accessories. Its overall aim is to reduce import content to less than 25 per cent by 2010. Investment in modern machinery has soared in recent years, demonstrating convincingly the move towards modern textile manufacturing technology.
The majority of textile and garment exports are destined for the US, followed by the EU and Japan. The increase in export revenue is the result of Vietnam’s integration into the global supply chain in line with the shift in sourcing by retailers from high labour cost centres to low labour cost centres. According to research by PricewaterhouseCoopers, Vietnam ranks amongst the most attractive manufacturing locations, not only in Asia but in the whole world.
Export markets for Vietnam’s textiles and garments
In 2007, the US represented 58 per cent of Vietnam’s textile and garment exports, growing at a Compound Annual Growth Rate (CAGR) of 23 per cent during the 2003-2007 period. The European Union and Japan represented 19 per cent and 9 per cent of the exports, growing at a CAGR of 27 per cent and 8 per cent respectively. Germany and the UK are two largest markets in the EU.
The markets are different. The US buyers often require large orders (over 100,000 pieces per order), the EU buyers are looking for small or medium orders (thousands to ten thousands of pieces per order). China is the biggest exporter to the US as it has many large-scale manufacturing facilities capable of producing large orders with significant economies of scale. The US was the toughest in terms of applying quotas and anti-dumping tariffs to exporters, and implemented a monitoring system when the quotas were abolished. The economic recession in the US may result in slowing the growth of exports to the US and, hence, total exports this year.
In the EU market, Vietnam faces increased competition from Eastern Europe, which, although wages are higher than in Asian countries, has no import tax within the EU, has strong design capabilities, allows for fast delivery and has much lower transportation costs.
How much value is added by Vietnamese garment exporters?
Of the $7.8 billion export value in 2007, $6 billion was spent on raw materials. Most exports by the biggest Vietnamese exporters (Vinatex, Viettien, Thanh Cong, 10 Garment and Nha Be) are CMT (Cut-Made-Trim) products, with insignificant contribution by Vietnamese-branded products.
CMT (Cut-Made-Trim) refers to a production practice whereby the buyers, buying agents and buying offices provide Vietnamese firms with all inputs for design, materials and transportation arrangements, while Vietnamese garment manufacturers only cut, make and trim. CMT is the simplest production practice for export and only requires manufacturing capacity and a little designing capacity in making counter-samples.
The CMT production modality allows Vietnamese garment producers to strengthen their operational capacity without committing scarce financial resources or encountering exposure to market risks. Substantial room to improve product quality and delivery conditions exists even under the CMT modality. While Vietnam currently is competitive in the production of garments, productivity of CMT is still low by international standards primarily due to inadequate management practices. Customers for CMT business are usually intermediary agents based in South East Asian countries and territories such as Hong Kong, Taiwan, Korea and Thailand.
Garment exports are a key element of the export strategies of many emerging economies, including Vietnam. In all cases garment exports started with CMT types of business (a model of work often driven by a lack of available working capital) and a plan to move away from CMT to various levels of Freight On Board (FOB) manufacturing within a five-year period. However, most Vietnamese garment manufacturers (93.6 per cent) are still involved in the CMT or other low value-added operating models where fabric suppliers are appointed by multinational retailers or foreign customers, as they want to ensure the use of the right fabric, consistent quality and timely delivery – demands which cannot be met by Vietnam’s manufacturers.
There are only a few companies working at FOB levels which are successfully exporting to developed markets. In general, they are either foreign or foreign-invested companies. Successful FOB companies also tend to be larger organisations or micro-companies driven by owner-designers. In the highest value adding operating model (called FOB 3), companies produce garments based on their own designs and are responsible for all input elements. This model requires skills and experience that are not normally prevalent in Vietnamese garment companies.
Domestic companies find moving to FOB 3 level particularly difficult as they lack design and branding capacity and have little experience in the international sourcing of appropriate materials. There are, of course, some major exceptions which are successful in ‘designing’ and production for the domestic market, including Saigon 2, Nhat Tan and Hanosimex. These brands tend to be targeted at the low to medium-end of the market, although Viet Tien also has higher-end brands, San Sciaro for men and T-T Up for women, some of which are designed by design consultants rather than a fully skilled, full-time, in-house design team employed by the company.
Other key challenges and opportunities for the industry?
Operating margin squeeze and declining profitability are other key issues facing Vietnamese garment manufacturers. The following trends contributed to declining profitability. The increasing costs of labour as a result of repeated increases in the minimum wage in line with continuing GDP growth, increasing costs of raw materials and utilities as a result of increasing oil prices and inflation; increasing costs of financing due to the increased interest rates brought in by the government to fight inflation and revenue reduction due to the depreciation of the US dollar.
According to an official from Agtek, many Vietnamese garment producers are reconsidering the future potential of their industry. An estimated 50 per cent of Agtek members have no plans to expand their operations, while 20 per cent want to slash garment production.
Currently 65 per cent of the domestic production of garments is intended for foreign buyers. Facing increasing competition in the global market, Vietnamese garment companies are now shifting their focus from conquering export markets to the domestic market, realising that they had ignored and thereby missed local opportunities for many years.
Garment imports increased by 30 per cent in 2007 as a result of the tax cuts on clothing imports implemented as part of Vietnam’s WTO commitments. Most competition was from cheap and deluxe garments from China, Thailand, Malaysia, South Korea and Singapore. More competition is expected in 2009, when the retail industry will be deregulated and global retailers are expected to enter the market en masse, importing branded garments manufactured in other Asian countries.
As mentioned earlier, the garment companies in Vietnam rely heavily on imports, reducing the flexibility and competitiveness of Vietnam’s garment industry. It is clear that domestic garment manufacturers would prefer to source fabric locally if it met their specifications. It is this unsatisfied demand from the local garment producers that provides an opportunity for domestic textile companies to upgrade their manufacturing capacity and target the large domestic market.
While Vietnam’s garment technology is not far from international standard, 30 per cent of textile equipment is 20 years behind, according to industry experts, requiring massive capital investment if domestic textile manufacturers want to become internationally competitive. Hence, the majority of future investments are intended for the textile, rather than the garment sector.
While the government plans to invest around $3 billion in developing the textile and garment sector during the run-up to 2010, Vinatex plans to invest an additional $1 billion to develop its production and distribution systems, fashion design and infrastructure. Vinatex, together with the Vietnamese petroleum giant, PetroVietnam, has already commenced building a $200 million synthetic fibre plant in northern Haiphong, a port city. The plant would initially produce 500 tonnes per day, aiming to provide a spectacular 40 per cent of the materials for domestic yarn production by 2011.
Vietnamese government efforts to increase domestic production of fibre have also resulted in an increase in foreign investment in this sector. Taiwan’s Formosa Chemicals and Fibre Corporation, for example, has invested $309 million in expanding its textile base in Vietnam. It is aiming to add nylon fibre and yarn production – which is, in turn, expected to attract Taiwanese downstream textile manufacturers to form a production cluster.
Phong Phu and International Textile Group (Burlington Worldwide) have also entered into a $80 million joint venture to build a state-of-the-art cotton manufacturing complex in Danang. A local textile manufacturer that can produce high-quality fabric acceptable to foreign buyers of Vietnamese-produced garments will have a huge domestic customer base to serve.
Such companies need to have a strategy to identify their target markets and to initiate and develop long term co-operative relations with domestic customers. They should also cultivate importers’ confidence in their products by upgrading quality, improving client contact, reducing delivery times and becoming more transparent in terms of labour and environmental practices.
- Zoya Vassilieva is a director at PricewaterhouseCoopers, leading its strategy practice in Thailand and Vietnam. She welcomes your comments and questions at zoya.vassilieva@th.pwc.com
Source: Vietnam Investment Review
The rise in exports has been quite dramatic since the turn of the century. The export value has increased from $1.9 billion in 2000 to $7.8 billion in 2007. The early figures for 2008 show increasing volumes and values, particularly to the United States which is Vietnam’s largest single export market for garments and textiles, accounting for approximately 54 per cent of Vietnam’s garment exports.
Total industry exports for the year are expected to be greater than $9 billion. Some industry experts predict that exports in this sector will reach $25 billion by 2020.
In addition to being a highly significant contributor to export earnings, the garment and textile sector employs around two million people, of whom 80 per cent are female, many are migrants from the poorer rural provinces. As migrant workers are often responsible for supporting extended families in the countryside, there are potentially millions of lives dependent on the sector’s performance. Significant changes in the sector can have major social impact.
Recent data (2006) from the Ho Chi Minh City Association of Garments, Textiles, Embroidery and Knitting (Agtek) and the Vietnam Textile and Apparel Association (Vitas) indicate that there are around 2,000 garment and textile enterprises in Vietnam, including 50 state-owned enterprises (SOEs), 1,400 private enterprises and 450 foreign direct-investment (FDI) enterprises.
Of these, approximately 1,100 companies, including some 200 foreign-invested companies, are based in and around Ho Chi Minh City. Out of 2,000 companies, 1,280 are garment enterprises, 120 are spinning companies, 340 are textile ventures, and the remaining 260 are commerce and service businesses.
The state still plays an important role in the textile sector through its share in the Vinatex group and other SOEs whilst the garment sector has become an increasingly private sector-based industry as SOEs equitise and foreign companies increase their investments.
However, whilst the sector may be large and significant in many ways, the ‘value added’ of the garment industry is low as most raw materials such as fibres, yarns, fabrics and garment accessories are imported. In 2006, fabric imports were worth $2,954 million. Most of the imported textiles have been re-exported as garments.
Buyers from a number of the world’s leading textile and apparel companies have sourced apparel from Vietnam including Express, Hucke, Itochu, JC Penney, Jupitar, Kmart, Kowa, Lee Cooper, Li & Fung, Mast Industries, Nichimen, Nissho Iwai, Otto, Sara Lee, Seidensticker, Sumitomo, Tomen, Tommy Hilfiger, Victoria’s Secret, and Wal-Mart. However, the proportion of domestic inputs in final products is still low. In the textile industry, domestic inputs make up only 10 to 15 per cent of total inputs, while the ratio is around 30 per cent in the garment industry.
The government has a clear strategy of increasing the supply of domestically produced inputs such as raw cotton, yarns, fabrics and garment accessories. Its overall aim is to reduce import content to less than 25 per cent by 2010. Investment in modern machinery has soared in recent years, demonstrating convincingly the move towards modern textile manufacturing technology.
The majority of textile and garment exports are destined for the US, followed by the EU and Japan. The increase in export revenue is the result of Vietnam’s integration into the global supply chain in line with the shift in sourcing by retailers from high labour cost centres to low labour cost centres. According to research by PricewaterhouseCoopers, Vietnam ranks amongst the most attractive manufacturing locations, not only in Asia but in the whole world.
Export markets for Vietnam’s textiles and garments
In 2007, the US represented 58 per cent of Vietnam’s textile and garment exports, growing at a Compound Annual Growth Rate (CAGR) of 23 per cent during the 2003-2007 period. The European Union and Japan represented 19 per cent and 9 per cent of the exports, growing at a CAGR of 27 per cent and 8 per cent respectively. Germany and the UK are two largest markets in the EU.
The markets are different. The US buyers often require large orders (over 100,000 pieces per order), the EU buyers are looking for small or medium orders (thousands to ten thousands of pieces per order). China is the biggest exporter to the US as it has many large-scale manufacturing facilities capable of producing large orders with significant economies of scale. The US was the toughest in terms of applying quotas and anti-dumping tariffs to exporters, and implemented a monitoring system when the quotas were abolished. The economic recession in the US may result in slowing the growth of exports to the US and, hence, total exports this year.
In the EU market, Vietnam faces increased competition from Eastern Europe, which, although wages are higher than in Asian countries, has no import tax within the EU, has strong design capabilities, allows for fast delivery and has much lower transportation costs.
How much value is added by Vietnamese garment exporters?
Of the $7.8 billion export value in 2007, $6 billion was spent on raw materials. Most exports by the biggest Vietnamese exporters (Vinatex, Viettien, Thanh Cong, 10 Garment and Nha Be) are CMT (Cut-Made-Trim) products, with insignificant contribution by Vietnamese-branded products.
CMT (Cut-Made-Trim) refers to a production practice whereby the buyers, buying agents and buying offices provide Vietnamese firms with all inputs for design, materials and transportation arrangements, while Vietnamese garment manufacturers only cut, make and trim. CMT is the simplest production practice for export and only requires manufacturing capacity and a little designing capacity in making counter-samples.
The CMT production modality allows Vietnamese garment producers to strengthen their operational capacity without committing scarce financial resources or encountering exposure to market risks. Substantial room to improve product quality and delivery conditions exists even under the CMT modality. While Vietnam currently is competitive in the production of garments, productivity of CMT is still low by international standards primarily due to inadequate management practices. Customers for CMT business are usually intermediary agents based in South East Asian countries and territories such as Hong Kong, Taiwan, Korea and Thailand.
Garment exports are a key element of the export strategies of many emerging economies, including Vietnam. In all cases garment exports started with CMT types of business (a model of work often driven by a lack of available working capital) and a plan to move away from CMT to various levels of Freight On Board (FOB) manufacturing within a five-year period. However, most Vietnamese garment manufacturers (93.6 per cent) are still involved in the CMT or other low value-added operating models where fabric suppliers are appointed by multinational retailers or foreign customers, as they want to ensure the use of the right fabric, consistent quality and timely delivery – demands which cannot be met by Vietnam’s manufacturers.
There are only a few companies working at FOB levels which are successfully exporting to developed markets. In general, they are either foreign or foreign-invested companies. Successful FOB companies also tend to be larger organisations or micro-companies driven by owner-designers. In the highest value adding operating model (called FOB 3), companies produce garments based on their own designs and are responsible for all input elements. This model requires skills and experience that are not normally prevalent in Vietnamese garment companies.
Domestic companies find moving to FOB 3 level particularly difficult as they lack design and branding capacity and have little experience in the international sourcing of appropriate materials. There are, of course, some major exceptions which are successful in ‘designing’ and production for the domestic market, including Saigon 2, Nhat Tan and Hanosimex. These brands tend to be targeted at the low to medium-end of the market, although Viet Tien also has higher-end brands, San Sciaro for men and T-T Up for women, some of which are designed by design consultants rather than a fully skilled, full-time, in-house design team employed by the company.
Other key challenges and opportunities for the industry?
Operating margin squeeze and declining profitability are other key issues facing Vietnamese garment manufacturers. The following trends contributed to declining profitability. The increasing costs of labour as a result of repeated increases in the minimum wage in line with continuing GDP growth, increasing costs of raw materials and utilities as a result of increasing oil prices and inflation; increasing costs of financing due to the increased interest rates brought in by the government to fight inflation and revenue reduction due to the depreciation of the US dollar.
According to an official from Agtek, many Vietnamese garment producers are reconsidering the future potential of their industry. An estimated 50 per cent of Agtek members have no plans to expand their operations, while 20 per cent want to slash garment production.
Currently 65 per cent of the domestic production of garments is intended for foreign buyers. Facing increasing competition in the global market, Vietnamese garment companies are now shifting their focus from conquering export markets to the domestic market, realising that they had ignored and thereby missed local opportunities for many years.
Garment imports increased by 30 per cent in 2007 as a result of the tax cuts on clothing imports implemented as part of Vietnam’s WTO commitments. Most competition was from cheap and deluxe garments from China, Thailand, Malaysia, South Korea and Singapore. More competition is expected in 2009, when the retail industry will be deregulated and global retailers are expected to enter the market en masse, importing branded garments manufactured in other Asian countries.
As mentioned earlier, the garment companies in Vietnam rely heavily on imports, reducing the flexibility and competitiveness of Vietnam’s garment industry. It is clear that domestic garment manufacturers would prefer to source fabric locally if it met their specifications. It is this unsatisfied demand from the local garment producers that provides an opportunity for domestic textile companies to upgrade their manufacturing capacity and target the large domestic market.
While Vietnam’s garment technology is not far from international standard, 30 per cent of textile equipment is 20 years behind, according to industry experts, requiring massive capital investment if domestic textile manufacturers want to become internationally competitive. Hence, the majority of future investments are intended for the textile, rather than the garment sector.
While the government plans to invest around $3 billion in developing the textile and garment sector during the run-up to 2010, Vinatex plans to invest an additional $1 billion to develop its production and distribution systems, fashion design and infrastructure. Vinatex, together with the Vietnamese petroleum giant, PetroVietnam, has already commenced building a $200 million synthetic fibre plant in northern Haiphong, a port city. The plant would initially produce 500 tonnes per day, aiming to provide a spectacular 40 per cent of the materials for domestic yarn production by 2011.
Vietnamese government efforts to increase domestic production of fibre have also resulted in an increase in foreign investment in this sector. Taiwan’s Formosa Chemicals and Fibre Corporation, for example, has invested $309 million in expanding its textile base in Vietnam. It is aiming to add nylon fibre and yarn production – which is, in turn, expected to attract Taiwanese downstream textile manufacturers to form a production cluster.
Phong Phu and International Textile Group (Burlington Worldwide) have also entered into a $80 million joint venture to build a state-of-the-art cotton manufacturing complex in Danang. A local textile manufacturer that can produce high-quality fabric acceptable to foreign buyers of Vietnamese-produced garments will have a huge domestic customer base to serve.
Such companies need to have a strategy to identify their target markets and to initiate and develop long term co-operative relations with domestic customers. They should also cultivate importers’ confidence in their products by upgrading quality, improving client contact, reducing delivery times and becoming more transparent in terms of labour and environmental practices.
- Zoya Vassilieva is a director at PricewaterhouseCoopers, leading its strategy practice in Thailand and Vietnam. She welcomes your comments and questions at zoya.vassilieva@th.pwc.com
Source: Vietnam Investment Review
Importers: Procedures For Effective Importation From Vietnam (2)
LOGISTICSImport Logistics
1. Banking and Finance
Credit institutions operating and existing in Vietnam include state owned banks, commercial, investment and development banks, joint-stock or share holding banks, branches or representative offices of overseas banks, and finance companies. All transactions in foreign currency (trading, lending and transferring) must be carried out through credit institutions licensed to operate in Vietnam.
2. Transport and shipping
A number of highway, bridge and tunnel infrastructure developments have been planned to start and be completed between 2007 and 2010. International ports and related infrastructure projects will allow the cost efficient and timely export of containerized cargo.
2.1. Waterway
Vietnam has 3,260km coastline has 126 ports; of which 24 handle ocean cargo.
Vietnam has no deep water port facilities in the country; currently we only offer smaller feeder ships of less than 25,000 deadweight tones (approximately 1,600TEU Twenty-Foot Equivalent Unit for container ships). Ho Chi Minh City, Hai Phong, Cai Lan, Qui Nhon and Da Nang ports have regular weekly container services by all leading shipping companies.
Ho Chi Minh City, through which more than 70 percent of Vietnam’s container throughput passes, is a critical gateway for both imports and exports.
Mekong Delta area has many potential to develop container transportation with good conditions of the river system. Inland Water transportation is constantly growing and expands from HCMC to other areas in Mekong Delta, Dong Nai and Cambodia in coming years.
2.2. Roads and Railway
Vietnam has 3,260 km railway and 177,300 km road. Vietnam shares borders with Laos, Cambodia and China, making it easier to establish a multimodal logistics chain.
2.3. Airway
Vietnam has 3 international airports & 18 domestic airports
The country’s 21 airports are operated by the Civil Aviation Administration of Vietnam (CAVV). To meet growing needs, the Government plans to develop a total of 18 domestic and six international airports by 2015, at an estimated cost of US$7.2 billion.
The earlier development of the new international airport at Long Thanh in the province of Dong Nai next to Ho Chi Minh City will bring about much needed additional capacity.
2.4. Freight services
Statistics from the Vietnam Freight Forwarders Association showed there were about 900 goods transport businesses in the country with an average registered capital of VND1.5 billion (US$90,500) each. About 80 percent of those businesses were private companies, some of which have limited capital of VND300 million to VND500 million ($18,100-30,166).
Most of the Vietnamese businesses in the logistics sector do not have yet representative offices in foreign countries and thus they cannot link into the worldwide logistics network. The services they are able to provide include completing customs paperwork or renting warehouses for international logistics providers
3. Trade support Services
There are many organizations to provide considerable general services to those doing business in the country, both Vietnamese and foreigners. To find a local partner, foreign enterprises can gain information about business network through local Chambers of Commerce and Industry associations.
The major Chamber of Commerce for Vietnamese enterprises is the Vietnam Chamber of Commerce and Industry (VCCI), which is headquartered in Hanoi and has branches throughout Vietnam. VCCI members include state-owned enterprises (SOE’s), joint stock companies, and private firms in a variety of sectors.
In Ho Chi Minh City, the Investment & Trade Promotion Center (ITPC) can also make introductions to prospective partners. Another channel for finding a local partner is through local industry associations, since most key industries in Vietnam have formed associations. A number of private consultant companies have also developed matching services.
3.1. Dealing with trade problems
For trade dispute cases, the Vietnam International Arbitration Centre at the Vietnam Chamber of Commerce and Industry (VIAC) is the resource when foreign and Vietnamese partners seek arbitration in settling disputes.
3.2. Quality Testing
Certificates of Control, i.e. attesting to the fact that products meet necessary quality standards, are issued by the Vietnam Superintendence and Inspection Company or Vinacontrol.
Vietnam’s standards system consists of over 5,800 standards. Specific information about product specific standards may be provided by Vietnamese importers or customers. Otherwise this information can be sought from the relevant ministry or government management body responsible for the country’s standards, such as the Directorate for Standards and Quality (STAMEQ) of Ministry of Science and Technology. Vietnam’s weights and measure standards are based on the metric system. The electric current is AC 50 cycles, 220/380. The electric utility system of Vietnam is being standardized at three phases, 220/380 volts, four wires.
3.3. Intellectual Property
Patents and trademark can be protected in Vietnam since the country is a signatory of the Paris Convention and is a member of the World Intellectual Property Organisation It has acceded to the Patent Cooperation Treaty and the Madrid Agreement Concerning the International Registration of Marks, and in 2004 joined the Berne Convention
- ITPC
1. Banking and Finance
Credit institutions operating and existing in Vietnam include state owned banks, commercial, investment and development banks, joint-stock or share holding banks, branches or representative offices of overseas banks, and finance companies. All transactions in foreign currency (trading, lending and transferring) must be carried out through credit institutions licensed to operate in Vietnam.
2. Transport and shipping
A number of highway, bridge and tunnel infrastructure developments have been planned to start and be completed between 2007 and 2010. International ports and related infrastructure projects will allow the cost efficient and timely export of containerized cargo.
2.1. Waterway
Vietnam has 3,260km coastline has 126 ports; of which 24 handle ocean cargo.
Vietnam has no deep water port facilities in the country; currently we only offer smaller feeder ships of less than 25,000 deadweight tones (approximately 1,600TEU Twenty-Foot Equivalent Unit for container ships). Ho Chi Minh City, Hai Phong, Cai Lan, Qui Nhon and Da Nang ports have regular weekly container services by all leading shipping companies.
Ho Chi Minh City, through which more than 70 percent of Vietnam’s container throughput passes, is a critical gateway for both imports and exports.
Mekong Delta area has many potential to develop container transportation with good conditions of the river system. Inland Water transportation is constantly growing and expands from HCMC to other areas in Mekong Delta, Dong Nai and Cambodia in coming years.
2.2. Roads and Railway
Vietnam has 3,260 km railway and 177,300 km road. Vietnam shares borders with Laos, Cambodia and China, making it easier to establish a multimodal logistics chain.
2.3. Airway
Vietnam has 3 international airports & 18 domestic airports
The country’s 21 airports are operated by the Civil Aviation Administration of Vietnam (CAVV). To meet growing needs, the Government plans to develop a total of 18 domestic and six international airports by 2015, at an estimated cost of US$7.2 billion.
The earlier development of the new international airport at Long Thanh in the province of Dong Nai next to Ho Chi Minh City will bring about much needed additional capacity.
2.4. Freight services
Statistics from the Vietnam Freight Forwarders Association showed there were about 900 goods transport businesses in the country with an average registered capital of VND1.5 billion (US$90,500) each. About 80 percent of those businesses were private companies, some of which have limited capital of VND300 million to VND500 million ($18,100-30,166).
Most of the Vietnamese businesses in the logistics sector do not have yet representative offices in foreign countries and thus they cannot link into the worldwide logistics network. The services they are able to provide include completing customs paperwork or renting warehouses for international logistics providers
3. Trade support Services
There are many organizations to provide considerable general services to those doing business in the country, both Vietnamese and foreigners. To find a local partner, foreign enterprises can gain information about business network through local Chambers of Commerce and Industry associations.
The major Chamber of Commerce for Vietnamese enterprises is the Vietnam Chamber of Commerce and Industry (VCCI), which is headquartered in Hanoi and has branches throughout Vietnam. VCCI members include state-owned enterprises (SOE’s), joint stock companies, and private firms in a variety of sectors.
In Ho Chi Minh City, the Investment & Trade Promotion Center (ITPC) can also make introductions to prospective partners. Another channel for finding a local partner is through local industry associations, since most key industries in Vietnam have formed associations. A number of private consultant companies have also developed matching services.
3.1. Dealing with trade problems
For trade dispute cases, the Vietnam International Arbitration Centre at the Vietnam Chamber of Commerce and Industry (VIAC) is the resource when foreign and Vietnamese partners seek arbitration in settling disputes.
3.2. Quality Testing
Certificates of Control, i.e. attesting to the fact that products meet necessary quality standards, are issued by the Vietnam Superintendence and Inspection Company or Vinacontrol.
Vietnam’s standards system consists of over 5,800 standards. Specific information about product specific standards may be provided by Vietnamese importers or customers. Otherwise this information can be sought from the relevant ministry or government management body responsible for the country’s standards, such as the Directorate for Standards and Quality (STAMEQ) of Ministry of Science and Technology. Vietnam’s weights and measure standards are based on the metric system. The electric current is AC 50 cycles, 220/380. The electric utility system of Vietnam is being standardized at three phases, 220/380 volts, four wires.
3.3. Intellectual Property
Patents and trademark can be protected in Vietnam since the country is a signatory of the Paris Convention and is a member of the World Intellectual Property Organisation It has acceded to the Patent Cooperation Treaty and the Madrid Agreement Concerning the International Registration of Marks, and in 2004 joined the Berne Convention
- ITPC
Vietnam Economy Under Spotlight!
VIETNAM IN GENERAL
WTO accession January 11, 2007
Population: 87 Million
GDP 2007: $70 billion US
GDP Growth 2007: 8.5 %
Literacy Rate: ~90%*
1. Overview of Vietnam’s economy
1.1 OverviewVietnam has made progress over the past 10 years in moving from a planned economy to a market economy, opening up to foreign investment, maintaining consistent rapid growth and now targeting entry into the World Trade Organization in 2005. The shift away from a centrally planned economy to a more market-oriented economic model improved the quality of life for many Vietnamese.
Helpful sources
• Central Economic Management Institute: Overview of Vietnam’s economy; Review on Vietnam’s economy 2007
• World Bank: Vietnam Development Report
1.2 Vietnam’s major imports - 2007
At present, EU is our second import market behind U.S and o¬ne of the Vietnam’s four biggest import markets. Major exports were remained such as garment-textile, aquatic and plastic products, wooden furniture, coffee, handicrafts. Vietnam has had trade surplus to EU for many years, demonstrating that EU is the major import market of Vietnam, helping Vietnam increase the export turnover in the following years.
Table 2: Key trading partners of Vietnam – 2007
Import (US$ mill) Export (US$ mill)
China: 3,659 US: 7,500
Singapore: 3,534 EU: 5,148
Japan: 3,510 Japan: 3,738
Taiwan: 2,437 China: 3,495
Korea: 2,286 Australia: 2,329
USA: 500
Table 3: Vietnam’s export earnings in 2007
2007 2007 vs. 2006 (%)
Total 48387 121.5
• Domestic sector 20555 122.3
• FDI sector 27832 120.9
Table 4: Main products for exportation in 2007 (1,000 tons/million US$)
2007 2007 vs. 2006 (%)
Crude oil 15081 8477 91.9 102.6
Coal 32535 1018 111.0 111.3
Textile 7784 133.4
Footgear 3963 110.3
Handbag, wallet, suitcase, hat, umbrella 635 126.2
Electronics, computer 2178 127.5
Rattan, bamboo, rush, carpet 218 113.6
Porcelain, ceramic 330 120.4
Precious stones & metals 201 122.2
Electric wires & cables 884 125.4
Plastic products 725 151.4
Bicycle & spare parts 79 67.4
Vegetable & animal oil/fat 47 310.0
Children toys 77 116.3
Instant noodle 80 116.5
Rice 4500 1454 96.9 113.9
Coffee 1194 1854 121.8 152.3
Fruits & vegetables 299 115.4
Rubber 719 1400 101.6 108.8
Pepper 86 282 73.4 147.8
Cashew nut 153 649 120.4 128.9
Tea 114 131 107.8 118.4
Wooden products 2364 122.3
Seafood 3792 112.9
Helpful source:
• General Statistics Office of Vietnam: Vietnam Development Report
WTO accession January 11, 2007
Population: 87 Million
GDP 2007: $70 billion US
GDP Growth 2007: 8.5 %
Literacy Rate: ~90%*
1. Overview of Vietnam’s economy
1.1 OverviewVietnam has made progress over the past 10 years in moving from a planned economy to a market economy, opening up to foreign investment, maintaining consistent rapid growth and now targeting entry into the World Trade Organization in 2005. The shift away from a centrally planned economy to a more market-oriented economic model improved the quality of life for many Vietnamese.
Helpful sources
• Central Economic Management Institute: Overview of Vietnam’s economy; Review on Vietnam’s economy 2007
• World Bank: Vietnam Development Report
1.2 Vietnam’s major imports - 2007
At present, EU is our second import market behind U.S and o¬ne of the Vietnam’s four biggest import markets. Major exports were remained such as garment-textile, aquatic and plastic products, wooden furniture, coffee, handicrafts. Vietnam has had trade surplus to EU for many years, demonstrating that EU is the major import market of Vietnam, helping Vietnam increase the export turnover in the following years.
Table 2: Key trading partners of Vietnam – 2007
Import (US$ mill) Export (US$ mill)
China: 3,659 US: 7,500
Singapore: 3,534 EU: 5,148
Japan: 3,510 Japan: 3,738
Taiwan: 2,437 China: 3,495
Korea: 2,286 Australia: 2,329
USA: 500
Table 3: Vietnam’s export earnings in 2007
2007 2007 vs. 2006 (%)
Total 48387 121.5
• Domestic sector 20555 122.3
• FDI sector 27832 120.9
Table 4: Main products for exportation in 2007 (1,000 tons/million US$)
2007 2007 vs. 2006 (%)
Crude oil 15081 8477 91.9 102.6
Coal 32535 1018 111.0 111.3
Textile 7784 133.4
Footgear 3963 110.3
Handbag, wallet, suitcase, hat, umbrella 635 126.2
Electronics, computer 2178 127.5
Rattan, bamboo, rush, carpet 218 113.6
Porcelain, ceramic 330 120.4
Precious stones & metals 201 122.2
Electric wires & cables 884 125.4
Plastic products 725 151.4
Bicycle & spare parts 79 67.4
Vegetable & animal oil/fat 47 310.0
Children toys 77 116.3
Instant noodle 80 116.5
Rice 4500 1454 96.9 113.9
Coffee 1194 1854 121.8 152.3
Fruits & vegetables 299 115.4
Rubber 719 1400 101.6 108.8
Pepper 86 282 73.4 147.8
Cashew nut 153 649 120.4 128.9
Tea 114 131 107.8 118.4
Wooden products 2364 122.3
Seafood 3792 112.9
Helpful source:
• General Statistics Office of Vietnam: Vietnam Development Report
Your First Trip To Vietnam? Business or Tour !
Vietnam at a glance
Location: Southeast Asia
Area: 330,991 sq. Km
Capital: Hanoi
Deltas: Red River Delta in the North and Mekong River Delta in the South
Main Cities: Hanoi, Ho Chi Minh City, Hai Phong, Da Nang, Thanh Hoa, Nam Dinh, Hue, Can Tho, Nha Trang, Vung Tau.
Banks: 77
Telecoms: 2 million telephones (2.6 sets per 100 persons)
Export Processing Zones: 3
Industrial parks: 154
Hotels: 3,050 with 55,600 rooms including 500 international standard hotels
Universities and colleges: 109 with 297,900 students
Technical workers: 58,700
1. Visa
A visa is necessary to visit Vietnam from most countries. Business and tourist visas for Vietnam are available and can be obtained from Vietnamese diplomatic or consular offices in foreign countries upon submission of:
(i) an application form,
(ii) photographs,
(iii) a passport (valid for at least 6 months) and
(iv) an invitation letter (or other documents indicating the purpose of the visit).
No later than five days after the fulfillment of formalities for a visa application, entry visas will be issued by an office managing entry and exit under the Ministry of Police, a consular office under the Ministry of Foreign Affairs, a foreign representative diplomatic office, or a Vietnamese consulate overseas.
Passport holders from some countries with whom Vietnam has signed bilateral agreements with, including Thailand, Malaysia, Indonesia, Singapore, Laos, Japan, South Korea, Norway, Sweden, Denmark, Finland and the Philippines do not need an entry visa for a definite stay.
If a foreigner wishes to enter the country for fact-finding or exporting the possibilities of doing business or is arriving for the first time, tourist visas should most likely be appropriate. Tourist visas obtained through travel agents are valid from thirty (30) days to six (6) months and cannot be extended in Vietnam.
Foreigners entering Vietnam without an invitation from any agency, organization or individual are only issued a 15–day visa.
Foreign investors, including their relatives, who enter Vietnam to implement licensed investment projects may be granted a single-entry visa or a multiple-entry visa valid for use within a period not exceeding five (5) years.
Upon expiry of the period of a visa, if the person holding the visa still needs to enter and exit Vietnam, he or she must complete the application procedures for a new visa.
2. Arrival
On arrival, you must make a written customs declaration and an entry/exit form. Your will be given copies of these documents. Keep them carefully because you have to present them when leaving the country. You could face fines or other hassles if losing it.
Keep your baggage claim stickers (attached to your air-tickets) in order to get your luggage out of the airport.
Customs regulations
• Tan Son Nhat airport is making use of the dual channel system for passenger baggage inspection. Passengers may choose either the green or red channel for customs clearance.
Passengers not carrying restricted or prohibited articles may go through the green channel. Personal belongings of gold, silver, precious metals, gemstone and foreign currencies not falling into the duty-free baggage will be subject to the foreign exchange control by the Government.
• Visitors should also declare other valuables like cameras, camcorders, computers and other electronic equipment not for personal use, but foreign and Vietnamese currency equivalent to under US $3,000 and VND 5 million respectively need not be declared. There is no restriction on books or other printed matter except for pornographic or politically sensitive materials. However, books and other media like video cassette tapes or discs must be screened. CDs and tapes will be returned in a few days after screening. It is illegal to remove antiques from Vietnam.
• Mineral water, soft drinks... (other than alcoholic beverage) are allowed to carry in a reasonable quantity. Tobacco and cigarettes are prohibited from import, any excess of permitted amount will be confiscated. Duty-free allowances are 200 cigarettes, two litres of alcohol, and perfume and jewelry for personal use.
• Temporary import of goods for the trip must make a customs declaration at the port of entry. Such goods must be re-exported when you leave the country.
Flight information
Operation Control Center: (04)8865318 in Noi Bai (Ha Noi); (08)8446662 in Tan Son Nhat International Airport.
Lost and found
Lost and Found Service: (04)8840008 or 8865013 in Noi Bai; (08)8446662 ext: 7461 in Tan Son Nhat.
3. Getting around in Vietnam
Travel within Vietnam is becoming easier with domestic flight, trains, buses and cruises to all cities. Air travel has also been upgraded to international standard, a round trip ticket between HCMC and Hanoi is currently about $190 for economy class and $260 for business class. International departure tax is $12.00. Vietnam Airlines and Jetstart Pacific are the only carriers allowed to fly domestic routes.
Trains and buses in Vietnam have extensive routes and offer a cheap way to travel. A car with a driver is also an option for transportation, it can be rented for between $25 and $100 per day including cost for driver. Cars can be booked through most major hotels or tour companies.
• Taxis in Ho Chi Minh City
Mai Linh Taxi (white) : 8226666
Airport Taxi (white) : 8446666
Saigon Taxi (blue) : 8424242
Saigon Taxi (white) : 8226688
Saigon Tourist Taxi (red) : 8222206
Star Taxi (white with yellow stripe) : 8636363
Tanaco Taxi (red) : 8226226
Taxico (white) : 8350350
Vina Taxi (yellow) : 8422888
• Taxis in Ha Noi City
In Ha Noi, a cab ride from Noi Bai airport to the center city costs approximately USD15.
Airport : 8254250
Cienco Taxi : 8555888
City Taxi : 8222222
Duong Sat Taxi : 8645645
Five Star Taxi : 8555555
Hanoi Taxi : 8533171
Red Taxi : 8568686
Taxi 25 : 8252525
Taxi 52 : 8525252
Taxi CP : 8241999
Taxi Tai : 8731313
4. Climate
Vietnam is located between 9 and 23 degrees north. Eastern Vietnam has a long coastline on the Gulf of Tonkin and the South China Sea. It has a tropical monsoon type of climate; from May-Sep the south monsoon sets in, and the country is dominated by south to southeasterly winds. From Oct-April, the north monsoon is dominant with northerly to northeasterly winds affecting the country. There is a transition period between each monsoon season when winds are light and variable.
Vietnam has a single rainy season during the south monsoon (May-Sep).
Rainfall is infrequent and light during the remainder of the year. Rainfall is abundant, with annual rainfall exceeding 1000mm almost everywhere. Annual rainfall is even higher in the hills, especially those facing the sea, in the range of 2000-2500mm.
For coastal areas and the parts of the central highlands facing northeast, the season of maximum rainfall is during the south monsoon, from Sep-Jan. These regions receive torrential rain from typhoons which move in from the South China Sea at this time of the year. The weather at this time is cloudy with frequent drizzle.
During the north monsoon, northern Vietnam has cloudy days with occasional light rain, while southern Vietnam tends to be dry and sunny.
Temperatures are high all year round for southern and central Vietnam; but northern Vietnam has a definite cooler season as the north monsoon occasionally adverts cold air in from China. Frost and some snow may occur on the highest mountains in the north for a few days a year. In the southern Vietnam, the lowlands are sheltered from outbreaks of colder northerly air and the dry season is warm to hot with much sunshine.
5. Language
Vietnamese is the official language. Use of English is becoming more common, especially in the larger cities and in the rapidly expanding tourism sector. English is widely understood in Vietnam, particularly in HCMC and major cities. French is also spoken in some areas while Chinese is spoken by many living in Cho Lon town.
If you hire an interpreter, make sure he/she has knowledge of the northern or southern language as the accent and pronunciation is quite different.
The Vietnamese are very polite people and will often smile and agree with you when in fact they may not have fully understood what you have said.
6. Currency
Vietnamese currency is Dong, abbreviated as VND. Bank note denominations are 200; 500; 1,000; 2,000; 5,000; 10,000; 20,000; 50,000; 100,000 and 500,000 dong. The 2,000 and 5,000 notes predominate in circulation. Coins come in denominations of 200, 500, 1,000, 2,000 and 5,000 dong in Vietnam now.
Using ATM machine is becoming common in large cities and you can get money exchange in most major metropolitan areas. Credit cards are increasingly accepted at major hotels, some restaurants and a few shops but are not widely used in other establishments.
7. Clothing
In summer, temperatures are generally hot throughout Vietnam. Lightweight cotton clothing is best. If you intend to stay in Hanoi in winter or to visit mountainous areas, warm clothes should be needed. A suit and a cravat are expected for formal occasions. A shirt with a cravat is quite sufficient all year in HCMC and the South or in the hot weather of the North.
8. Telecommunications
International Direct Dial (IDD) and fax services are available at post offices and most business standard hotels. Communication costs in Vietnam have declined significantly in recent years.
Internet services can be accessed through hotel business centers or from a growing number of Internet cafes.
International Roaming for mobile telecommunications is available in Vietnam for users from many countries (usually those that share Vietnam's GSM standard). All international postal services are available.
9. Food and drink
Within tourist areas, a wide range of food acceptable to the international palate is freely available, restaurants are usually clean and menus often have English translations. Elsewhere, the variety is far less, dishes and menus are often unrecognizable and preparation and eating areas are a long way from international standards of hygiene.
Apart from the most expensive establishments, hotel food is nearly always offered as a buffet with a mixture of Asian and international dishes. Although the quality may be good, the variety is often unimaginative. Haivenu usually leaves you to your own devices in the evening so that you can choose the type of food and level of restaurant that you prefer.
10. Accommodation
Most of the major destinations have sufficient accommodation. Both Ho Chi Minh City and Hanoi have top class hotels, as does Ha Long Bay, Sapa, Nha Trang and Hue. Most of hotel rooms are mostly of a pretty high standard with air-con, hot water often being standard and rooms are frequently cleaned daily.
11. Time – Business hour - Public Holidays
Vietnam is twelve hours ahead of Eastern Standard Time and 11 hours ahead of Eastern Daylight Time. Vietnam consists of a single time zone. During the weekdays, business hours are typically 8:00 a.m. to 5:00 p.m. with a onehour lunch break. On Saturdays, work hours are from 8:00 a.m. to 11:30 a.m. Vietnamese Government offices have recently moved to a 5-day workweek and are no longer open on Saturdays.
During the Lunar New Year, falling in January or February, business and Government activities in Vietnam come to a virtual standstill for the weeklong Tet holidays. Business travel at this time is not advised.
o Western New Year: January 1
o Lunar New Year: 4 days
o Kings Hung’s Anniversary (10th of the lunar third month)
o Victory Day: April 30
o International Labor Day: May 1
National Day: September 2
- ITPC
Location: Southeast Asia
Area: 330,991 sq. Km
Capital: Hanoi
Deltas: Red River Delta in the North and Mekong River Delta in the South
Main Cities: Hanoi, Ho Chi Minh City, Hai Phong, Da Nang, Thanh Hoa, Nam Dinh, Hue, Can Tho, Nha Trang, Vung Tau.
Banks: 77
Telecoms: 2 million telephones (2.6 sets per 100 persons)
Export Processing Zones: 3
Industrial parks: 154
Hotels: 3,050 with 55,600 rooms including 500 international standard hotels
Universities and colleges: 109 with 297,900 students
Technical workers: 58,700
1. Visa
A visa is necessary to visit Vietnam from most countries. Business and tourist visas for Vietnam are available and can be obtained from Vietnamese diplomatic or consular offices in foreign countries upon submission of:
(i) an application form,
(ii) photographs,
(iii) a passport (valid for at least 6 months) and
(iv) an invitation letter (or other documents indicating the purpose of the visit).
No later than five days after the fulfillment of formalities for a visa application, entry visas will be issued by an office managing entry and exit under the Ministry of Police, a consular office under the Ministry of Foreign Affairs, a foreign representative diplomatic office, or a Vietnamese consulate overseas.
Passport holders from some countries with whom Vietnam has signed bilateral agreements with, including Thailand, Malaysia, Indonesia, Singapore, Laos, Japan, South Korea, Norway, Sweden, Denmark, Finland and the Philippines do not need an entry visa for a definite stay.
If a foreigner wishes to enter the country for fact-finding or exporting the possibilities of doing business or is arriving for the first time, tourist visas should most likely be appropriate. Tourist visas obtained through travel agents are valid from thirty (30) days to six (6) months and cannot be extended in Vietnam.
Foreigners entering Vietnam without an invitation from any agency, organization or individual are only issued a 15–day visa.
Foreign investors, including their relatives, who enter Vietnam to implement licensed investment projects may be granted a single-entry visa or a multiple-entry visa valid for use within a period not exceeding five (5) years.
Upon expiry of the period of a visa, if the person holding the visa still needs to enter and exit Vietnam, he or she must complete the application procedures for a new visa.
2. Arrival
On arrival, you must make a written customs declaration and an entry/exit form. Your will be given copies of these documents. Keep them carefully because you have to present them when leaving the country. You could face fines or other hassles if losing it.
Keep your baggage claim stickers (attached to your air-tickets) in order to get your luggage out of the airport.
Customs regulations
• Tan Son Nhat airport is making use of the dual channel system for passenger baggage inspection. Passengers may choose either the green or red channel for customs clearance.
Passengers not carrying restricted or prohibited articles may go through the green channel. Personal belongings of gold, silver, precious metals, gemstone and foreign currencies not falling into the duty-free baggage will be subject to the foreign exchange control by the Government.
• Visitors should also declare other valuables like cameras, camcorders, computers and other electronic equipment not for personal use, but foreign and Vietnamese currency equivalent to under US $3,000 and VND 5 million respectively need not be declared. There is no restriction on books or other printed matter except for pornographic or politically sensitive materials. However, books and other media like video cassette tapes or discs must be screened. CDs and tapes will be returned in a few days after screening. It is illegal to remove antiques from Vietnam.
• Mineral water, soft drinks... (other than alcoholic beverage) are allowed to carry in a reasonable quantity. Tobacco and cigarettes are prohibited from import, any excess of permitted amount will be confiscated. Duty-free allowances are 200 cigarettes, two litres of alcohol, and perfume and jewelry for personal use.
• Temporary import of goods for the trip must make a customs declaration at the port of entry. Such goods must be re-exported when you leave the country.
Flight information
Operation Control Center: (04)8865318 in Noi Bai (Ha Noi); (08)8446662 in Tan Son Nhat International Airport.
Lost and found
Lost and Found Service: (04)8840008 or 8865013 in Noi Bai; (08)8446662 ext: 7461 in Tan Son Nhat.
3. Getting around in Vietnam
Travel within Vietnam is becoming easier with domestic flight, trains, buses and cruises to all cities. Air travel has also been upgraded to international standard, a round trip ticket between HCMC and Hanoi is currently about $190 for economy class and $260 for business class. International departure tax is $12.00. Vietnam Airlines and Jetstart Pacific are the only carriers allowed to fly domestic routes.
Trains and buses in Vietnam have extensive routes and offer a cheap way to travel. A car with a driver is also an option for transportation, it can be rented for between $25 and $100 per day including cost for driver. Cars can be booked through most major hotels or tour companies.
• Taxis in Ho Chi Minh City
Mai Linh Taxi (white) : 8226666
Airport Taxi (white) : 8446666
Saigon Taxi (blue) : 8424242
Saigon Taxi (white) : 8226688
Saigon Tourist Taxi (red) : 8222206
Star Taxi (white with yellow stripe) : 8636363
Tanaco Taxi (red) : 8226226
Taxico (white) : 8350350
Vina Taxi (yellow) : 8422888
• Taxis in Ha Noi City
In Ha Noi, a cab ride from Noi Bai airport to the center city costs approximately USD15.
Airport : 8254250
Cienco Taxi : 8555888
City Taxi : 8222222
Duong Sat Taxi : 8645645
Five Star Taxi : 8555555
Hanoi Taxi : 8533171
Red Taxi : 8568686
Taxi 25 : 8252525
Taxi 52 : 8525252
Taxi CP : 8241999
Taxi Tai : 8731313
4. Climate
Vietnam is located between 9 and 23 degrees north. Eastern Vietnam has a long coastline on the Gulf of Tonkin and the South China Sea. It has a tropical monsoon type of climate; from May-Sep the south monsoon sets in, and the country is dominated by south to southeasterly winds. From Oct-April, the north monsoon is dominant with northerly to northeasterly winds affecting the country. There is a transition period between each monsoon season when winds are light and variable.
Vietnam has a single rainy season during the south monsoon (May-Sep).
Rainfall is infrequent and light during the remainder of the year. Rainfall is abundant, with annual rainfall exceeding 1000mm almost everywhere. Annual rainfall is even higher in the hills, especially those facing the sea, in the range of 2000-2500mm.
For coastal areas and the parts of the central highlands facing northeast, the season of maximum rainfall is during the south monsoon, from Sep-Jan. These regions receive torrential rain from typhoons which move in from the South China Sea at this time of the year. The weather at this time is cloudy with frequent drizzle.
During the north monsoon, northern Vietnam has cloudy days with occasional light rain, while southern Vietnam tends to be dry and sunny.
Temperatures are high all year round for southern and central Vietnam; but northern Vietnam has a definite cooler season as the north monsoon occasionally adverts cold air in from China. Frost and some snow may occur on the highest mountains in the north for a few days a year. In the southern Vietnam, the lowlands are sheltered from outbreaks of colder northerly air and the dry season is warm to hot with much sunshine.
5. Language
Vietnamese is the official language. Use of English is becoming more common, especially in the larger cities and in the rapidly expanding tourism sector. English is widely understood in Vietnam, particularly in HCMC and major cities. French is also spoken in some areas while Chinese is spoken by many living in Cho Lon town.
If you hire an interpreter, make sure he/she has knowledge of the northern or southern language as the accent and pronunciation is quite different.
The Vietnamese are very polite people and will often smile and agree with you when in fact they may not have fully understood what you have said.
6. Currency
Vietnamese currency is Dong, abbreviated as VND. Bank note denominations are 200; 500; 1,000; 2,000; 5,000; 10,000; 20,000; 50,000; 100,000 and 500,000 dong. The 2,000 and 5,000 notes predominate in circulation. Coins come in denominations of 200, 500, 1,000, 2,000 and 5,000 dong in Vietnam now.
Using ATM machine is becoming common in large cities and you can get money exchange in most major metropolitan areas. Credit cards are increasingly accepted at major hotels, some restaurants and a few shops but are not widely used in other establishments.
7. Clothing
In summer, temperatures are generally hot throughout Vietnam. Lightweight cotton clothing is best. If you intend to stay in Hanoi in winter or to visit mountainous areas, warm clothes should be needed. A suit and a cravat are expected for formal occasions. A shirt with a cravat is quite sufficient all year in HCMC and the South or in the hot weather of the North.
8. Telecommunications
International Direct Dial (IDD) and fax services are available at post offices and most business standard hotels. Communication costs in Vietnam have declined significantly in recent years.
Internet services can be accessed through hotel business centers or from a growing number of Internet cafes.
International Roaming for mobile telecommunications is available in Vietnam for users from many countries (usually those that share Vietnam's GSM standard). All international postal services are available.
9. Food and drink
Within tourist areas, a wide range of food acceptable to the international palate is freely available, restaurants are usually clean and menus often have English translations. Elsewhere, the variety is far less, dishes and menus are often unrecognizable and preparation and eating areas are a long way from international standards of hygiene.
Apart from the most expensive establishments, hotel food is nearly always offered as a buffet with a mixture of Asian and international dishes. Although the quality may be good, the variety is often unimaginative. Haivenu usually leaves you to your own devices in the evening so that you can choose the type of food and level of restaurant that you prefer.
10. Accommodation
Most of the major destinations have sufficient accommodation. Both Ho Chi Minh City and Hanoi have top class hotels, as does Ha Long Bay, Sapa, Nha Trang and Hue. Most of hotel rooms are mostly of a pretty high standard with air-con, hot water often being standard and rooms are frequently cleaned daily.
11. Time – Business hour - Public Holidays
Vietnam is twelve hours ahead of Eastern Standard Time and 11 hours ahead of Eastern Daylight Time. Vietnam consists of a single time zone. During the weekdays, business hours are typically 8:00 a.m. to 5:00 p.m. with a onehour lunch break. On Saturdays, work hours are from 8:00 a.m. to 11:30 a.m. Vietnamese Government offices have recently moved to a 5-day workweek and are no longer open on Saturdays.
During the Lunar New Year, falling in January or February, business and Government activities in Vietnam come to a virtual standstill for the weeklong Tet holidays. Business travel at this time is not advised.
o Western New Year: January 1
o Lunar New Year: 4 days
o Kings Hung’s Anniversary (10th of the lunar third month)
o Victory Day: April 30
o International Labor Day: May 1
National Day: September 2
- ITPC
IMPORTERS: PROCEDURES FOR EFFECTIVE IMPORTATION FROM VIETNAM (1)
CUSTOMS PROCEDURE
Goods are freely imported or exported from Vietnam provided that they do not fall into the list of goods prohibited from import and export or goods subject to licenses granted from Vietnam’s relevant competent ministries.
Lists of goods subject to licenses of nine ministries including the Ministry of Industry and Trade, the Ministry of Agriculture and Rural Development, the State Bank of Vietnam, the Ministry of Information and Communications, the Ministry of Culture, Sports and Tourism, the Ministry of Health, the Ministry of National Resource and Environment and the Ministry of Transports.
1. Customs rulings
An export transaction includes various documents from beginning to finish. Both buyer and supplier should have a clear understanding of the processes and the documentation in detail of how many copies of a particular document have to be submitted at any stage.
Custom dossier consists of:
For trade goods exported, the customs dossier is as same as dossier of common exports, it is not necessary to have paper approved by Ministry of Industry and Trade (except goods belong to the lists of import ban or conditional import)
For goods produced from imported materials, besides prescribed customs dossier, paper of norm of material imported for exportation
For goods temporarily exported for repair or guarantee for a given period, the goods can be re-exported in identified duration in service of the repair guarantee. The enterprise must have the permit of Director of border-gate customs office in writing. In case the re-importation is carried out beyond specified duration with legitimate reasons, the enterprises shall enjoy extended duration; however the extension shall not exceed three months.
2. Customs declaration
The export transaction must be reported to Vietnamese Customs, who check the goods against conditions laid down in the export permit before clearing them
When carrying out customs procedures for exporting goods, the customs declarers must submit and present a customs dossier at the headquarters of Customs Sub-branch and be responsible for legality and lawfulness of customs dossiers and accurateness of declared contents on customs declaration form.
A clear and concise documentation is preferable.
Documents to be submitted and presented:
The export goods declaration forms: 02 originals
The goods purchase and sale contract or papers of equivalent legal value: 01 duplicate
The commercial invoice: 01 original
The bill of lading: 01 duplicate
Documents to be produced:
The business registration certificate: 01 original
The certificate of import/ export business code registration: 01 copy (duplicate or original).
Other regulations on declaration, documents included in the customs dossiers:
The customs declarers may submit the certificate of origin 60 (sixty) days later; other documents belonging to the customs dossiers (excluding customs declaration) 30 (thirty) days later as of the registration of customs declaration form in case where they obtain the approval of the Heads of Customs Sub-Departments.
Before the time the customs officers conduct the actual goods inspection, if the customs declarers made written requests which are approved by the Heads of Customs Sub-Departments, they may withdraw the registered customs declarations for supplementation and/ or amendment or replacements.
The customs declarers may register the customs declaration for the import goods before the goods arrive at the border gates within 15 (fifteen) days, later than this time limit the customs declaration is no longer valid. If goods are imported later than this time limit, the declarer must register the other customs declaration.
If the goods owners who regularly exports and/ or imports the same items of goods within a given period under the same purchase and sale contract may use a single customs declaration (registered once) for carrying out customs procedures for the exportation or importation of such goods items within the delivery time determined in the purchase and sale contracts.
3. Inspection of the goods’ actual condition
Probability inspection of the actual conditions of goods of no more than 10% of goods lot
The subjects applied this probability inspection consist of: The goods owners and the goods of the owners not belonging to the subjects that meet conditions for exemption from actual goods inspections, shall have to be inspected 10% of goods lot before carrying out customs procedures.
Determination of the inspection rate
If the goods are packed in bales, the inspection rate shall be the rate of inspected bales.
If the goods are packed in containers, the inspection rate shall be the rate of inspected containers or the rate of inspected bales in each container.
Inspection of the actual conditions of the whole export or import goods lots
For the goods owners who have been more than three times handled for customs-related violations within two years as of the date of carrying out customs procedures for import activities, and one year, as of the date of carrying out customs procedures for export activities, with the level of each fine falling beyond the sanctioning competence of the Directors of Provincial, inter-provincial, and municipal Departments.
For the export or import goods lots showing signs of violation of the customs legislation.
4. Conditions for goods customs clearance
The declaration of the customs declarer or the results of the State inspection body or expert organization, for goods exempt from actual inspection.
The results of the actual goods inspection by the customs office, for goods subject to actual inspection.
The certificate of registration of State inspection of goods quality, which is issued by the expert organization, or the notice on exemption from State inspection of goods quality, which is issued by a competent State management body, for imports goods subject to State inspection of goods quality.
The expertise results, for goods requiring expertise.
Export goods and import goods not subject to taxes collected by the customs offices, duty-free goods, processed goods, and other special goods shall enjoy customs clearance immediately after there is the customs office’s certification of the goods inspection results on the declaration forms.
Export goods and import goods subject to goods cleared immediately after the customs declarers pay taxes. Goods enjoying grace days of tax payment cleared immediately on the tax notification of the Customs office
- ITPC
Goods are freely imported or exported from Vietnam provided that they do not fall into the list of goods prohibited from import and export or goods subject to licenses granted from Vietnam’s relevant competent ministries.
Lists of goods subject to licenses of nine ministries including the Ministry of Industry and Trade, the Ministry of Agriculture and Rural Development, the State Bank of Vietnam, the Ministry of Information and Communications, the Ministry of Culture, Sports and Tourism, the Ministry of Health, the Ministry of National Resource and Environment and the Ministry of Transports.
1. Customs rulings
An export transaction includes various documents from beginning to finish. Both buyer and supplier should have a clear understanding of the processes and the documentation in detail of how many copies of a particular document have to be submitted at any stage.
Custom dossier consists of:
For trade goods exported, the customs dossier is as same as dossier of common exports, it is not necessary to have paper approved by Ministry of Industry and Trade (except goods belong to the lists of import ban or conditional import)
For goods produced from imported materials, besides prescribed customs dossier, paper of norm of material imported for exportation
For goods temporarily exported for repair or guarantee for a given period, the goods can be re-exported in identified duration in service of the repair guarantee. The enterprise must have the permit of Director of border-gate customs office in writing. In case the re-importation is carried out beyond specified duration with legitimate reasons, the enterprises shall enjoy extended duration; however the extension shall not exceed three months.
2. Customs declaration
The export transaction must be reported to Vietnamese Customs, who check the goods against conditions laid down in the export permit before clearing them
When carrying out customs procedures for exporting goods, the customs declarers must submit and present a customs dossier at the headquarters of Customs Sub-branch and be responsible for legality and lawfulness of customs dossiers and accurateness of declared contents on customs declaration form.
A clear and concise documentation is preferable.
Documents to be submitted and presented:
The export goods declaration forms: 02 originals
The goods purchase and sale contract or papers of equivalent legal value: 01 duplicate
The commercial invoice: 01 original
The bill of lading: 01 duplicate
Documents to be produced:
The business registration certificate: 01 original
The certificate of import/ export business code registration: 01 copy (duplicate or original).
Other regulations on declaration, documents included in the customs dossiers:
The customs declarers may submit the certificate of origin 60 (sixty) days later; other documents belonging to the customs dossiers (excluding customs declaration) 30 (thirty) days later as of the registration of customs declaration form in case where they obtain the approval of the Heads of Customs Sub-Departments.
Before the time the customs officers conduct the actual goods inspection, if the customs declarers made written requests which are approved by the Heads of Customs Sub-Departments, they may withdraw the registered customs declarations for supplementation and/ or amendment or replacements.
The customs declarers may register the customs declaration for the import goods before the goods arrive at the border gates within 15 (fifteen) days, later than this time limit the customs declaration is no longer valid. If goods are imported later than this time limit, the declarer must register the other customs declaration.
If the goods owners who regularly exports and/ or imports the same items of goods within a given period under the same purchase and sale contract may use a single customs declaration (registered once) for carrying out customs procedures for the exportation or importation of such goods items within the delivery time determined in the purchase and sale contracts.
3. Inspection of the goods’ actual condition
Probability inspection of the actual conditions of goods of no more than 10% of goods lot
The subjects applied this probability inspection consist of: The goods owners and the goods of the owners not belonging to the subjects that meet conditions for exemption from actual goods inspections, shall have to be inspected 10% of goods lot before carrying out customs procedures.
Determination of the inspection rate
If the goods are packed in bales, the inspection rate shall be the rate of inspected bales.
If the goods are packed in containers, the inspection rate shall be the rate of inspected containers or the rate of inspected bales in each container.
Inspection of the actual conditions of the whole export or import goods lots
For the goods owners who have been more than three times handled for customs-related violations within two years as of the date of carrying out customs procedures for import activities, and one year, as of the date of carrying out customs procedures for export activities, with the level of each fine falling beyond the sanctioning competence of the Directors of Provincial, inter-provincial, and municipal Departments.
For the export or import goods lots showing signs of violation of the customs legislation.
4. Conditions for goods customs clearance
The declaration of the customs declarer or the results of the State inspection body or expert organization, for goods exempt from actual inspection.
The results of the actual goods inspection by the customs office, for goods subject to actual inspection.
The certificate of registration of State inspection of goods quality, which is issued by the expert organization, or the notice on exemption from State inspection of goods quality, which is issued by a competent State management body, for imports goods subject to State inspection of goods quality.
The expertise results, for goods requiring expertise.
Export goods and import goods not subject to taxes collected by the customs offices, duty-free goods, processed goods, and other special goods shall enjoy customs clearance immediately after there is the customs office’s certification of the goods inspection results on the declaration forms.
Export goods and import goods subject to goods cleared immediately after the customs declarers pay taxes. Goods enjoying grace days of tax payment cleared immediately on the tax notification of the Customs office
- ITPC
The 19th Vietnam Expo 2009 to Open in Hanoi in from April 8-11th
The 19th Vietnam International Trade Fair, or VIETNAM EXPO 2009, themed Vietnam: Wide-open Investment Opportunities, will take place in Hanoi from April 8 to 11 .
Vietnam Expo is the biggest annual business event organized by The Ministry of Industry and Trade with the convergence of thousands of business people from Vietnam and abroad.
According to the Ministry of Industry & Trade, the Vietnam Expo this year will be a very significant event for the business people who are now trying to over come big challenges due to worldwide economic recession and at the same time it aims to boost further Vietnam global economic integration.
On projection, Vietnam Expo 2009 will have 800 pavilions, showcasing products from a range of industries as electrics, electronics and telecommunications; industrial mechanics and machinery; construction and construction materials; fashion; agricultural products; service products; handicrafts and fine arts.
A series of seminars on export promotion and marketing and other various activities will be held back- to- back during the stay of the trade fair.
The five-day fair will feature 700 booths representing businesses from Vietnam and 15 foreign countries, Industry and Trade Deputy Minister Nguyen Thanh Bien said at a press briefing on April 2.
Products and services across a range of industries mechanics and machinery, electrics, electronics and telecommunications, garment and footwear, construction, transportation and cosmetics will be showcased at the expo.
The event will provide an opportunity for enterprises and trade promotion agencies to boost trade.
Countries participating in the expo include Australia , Belgium , Cambodia , China , Cuba , Czech , Indonesia , Laos , Myanmar , Malaysia , Japan , Singapore , Switzerland and the Republic of Korea.
Hanoi (VNA)
Vietnam Expo is the biggest annual business event organized by The Ministry of Industry and Trade with the convergence of thousands of business people from Vietnam and abroad.
According to the Ministry of Industry & Trade, the Vietnam Expo this year will be a very significant event for the business people who are now trying to over come big challenges due to worldwide economic recession and at the same time it aims to boost further Vietnam global economic integration.
On projection, Vietnam Expo 2009 will have 800 pavilions, showcasing products from a range of industries as electrics, electronics and telecommunications; industrial mechanics and machinery; construction and construction materials; fashion; agricultural products; service products; handicrafts and fine arts.
A series of seminars on export promotion and marketing and other various activities will be held back- to- back during the stay of the trade fair.
The five-day fair will feature 700 booths representing businesses from Vietnam and 15 foreign countries, Industry and Trade Deputy Minister Nguyen Thanh Bien said at a press briefing on April 2.
Products and services across a range of industries mechanics and machinery, electrics, electronics and telecommunications, garment and footwear, construction, transportation and cosmetics will be showcased at the expo.
The event will provide an opportunity for enterprises and trade promotion agencies to boost trade.
Countries participating in the expo include Australia , Belgium , Cambodia , China , Cuba , Czech , Indonesia , Laos , Myanmar , Malaysia , Japan , Singapore , Switzerland and the Republic of Korea.
Hanoi (VNA)
Monday, February 23, 2009
Rice Quality Milestone Key to Exports
21-02-2009
TIEN GIANG — Southern Tien Giang Province’s Tu Quy rice, grown in Cai Lay District, has become the first domestic rice to meet Global Good Agriculture Practices (GAP) standards.
Totally pesticide-free, the rice grown in Cai Lay District met 211 strict assessment criteria to be granted a GAP certificate by German accreditation firm TUV SUD PSD Vietnam.
"This is an important achievement marking the end of the small-scale and backward agriculture production of farmers in the country," said Vo Tong Xuan, an expert in rice production and former rector of An Giang University.
"With this step, the country’s agriculture can move into a period of quality production, which means we can build trade marks, boost scales of production and better ensure quality."
The GAP-accredited rice has only been grown by members of My Thanh Co-operative in Cai Lay District, where the rice farmers have cultivated a total area of 11.4 ha, according to Nguyen Van Bay, chairman of the co-operative.
Shortly after the co-operative received certificates for their rice, ADC Company committed to buying all the co-operative’s rice at above-market prices, according to Bay.
Le Huu Hai, head of the Agriculture and Rural Development Department of Cai Lay District, said the co-operative in particular and the province in general had come a long way to achieve the result.
Since 2004, provincial authorities have backed programmes to improve the quality and productivity of local rice farming. Farmers were assisted in learning to apply new technology in rice production.
In 2008, the district registered to produce rice which would meet the Global GAP standard.
Farmers proposed establishing a co-operative, in which they could exchange modern technology and techniques, as well as receive help in finding the best wholesale contracts.
"Before the co-operative was set up, farmers had to find their own buyers and had less control over deciding the price of their products," said Nguyen Van Khang, director of the Department of Agriculture and Rural Development in Tien Giang Province.
"But now, things have changed. Members not only have more knowledge on production technology but are also able to better control their production costs and profits," he said.
The profits farmers make from one hectare of rice grown in accordance to the Global GAP production process can reach more than VND30 million (US$1,750) per year, while other kinds of rice promise annual profits of about VND15 million ($880), according to Truong Van Bay.
The co-operative has signed contracts to sell 50 tonnes of Tu Quy rice to ADC Company, and will sell 100 tonnes more by early March, said Bay.
Nguyen Ngoc Son, vice general director of ADC Company, said he was optimistic about the future of the rice, adding that there had been several export orders for this type of rice already.
Nice price
"The quality of this rice is quite high, it does not cause any harm to customers since it is pesticide-free and the price is very competitive," said Son.
He added that the price of the rice would be lower than VND20,000 per kg ($1.1), while the price for Thai rice was about VND20,000 per kg.
Nguyen Huu Chi, chairman of the provincial People’s Committee, decided to allocate part of the local budget to support farmers in widening the growing area Tu Quy rice, expecting to reach 100ha by the end of 2009.
— VNS
TIEN GIANG — Southern Tien Giang Province’s Tu Quy rice, grown in Cai Lay District, has become the first domestic rice to meet Global Good Agriculture Practices (GAP) standards.
Totally pesticide-free, the rice grown in Cai Lay District met 211 strict assessment criteria to be granted a GAP certificate by German accreditation firm TUV SUD PSD Vietnam.
"This is an important achievement marking the end of the small-scale and backward agriculture production of farmers in the country," said Vo Tong Xuan, an expert in rice production and former rector of An Giang University.
"With this step, the country’s agriculture can move into a period of quality production, which means we can build trade marks, boost scales of production and better ensure quality."
The GAP-accredited rice has only been grown by members of My Thanh Co-operative in Cai Lay District, where the rice farmers have cultivated a total area of 11.4 ha, according to Nguyen Van Bay, chairman of the co-operative.
Shortly after the co-operative received certificates for their rice, ADC Company committed to buying all the co-operative’s rice at above-market prices, according to Bay.
Le Huu Hai, head of the Agriculture and Rural Development Department of Cai Lay District, said the co-operative in particular and the province in general had come a long way to achieve the result.
Since 2004, provincial authorities have backed programmes to improve the quality and productivity of local rice farming. Farmers were assisted in learning to apply new technology in rice production.
In 2008, the district registered to produce rice which would meet the Global GAP standard.
Farmers proposed establishing a co-operative, in which they could exchange modern technology and techniques, as well as receive help in finding the best wholesale contracts.
"Before the co-operative was set up, farmers had to find their own buyers and had less control over deciding the price of their products," said Nguyen Van Khang, director of the Department of Agriculture and Rural Development in Tien Giang Province.
"But now, things have changed. Members not only have more knowledge on production technology but are also able to better control their production costs and profits," he said.
The profits farmers make from one hectare of rice grown in accordance to the Global GAP production process can reach more than VND30 million (US$1,750) per year, while other kinds of rice promise annual profits of about VND15 million ($880), according to Truong Van Bay.
The co-operative has signed contracts to sell 50 tonnes of Tu Quy rice to ADC Company, and will sell 100 tonnes more by early March, said Bay.
Nguyen Ngoc Son, vice general director of ADC Company, said he was optimistic about the future of the rice, adding that there had been several export orders for this type of rice already.
Nice price
"The quality of this rice is quite high, it does not cause any harm to customers since it is pesticide-free and the price is very competitive," said Son.
He added that the price of the rice would be lower than VND20,000 per kg ($1.1), while the price for Thai rice was about VND20,000 per kg.
Nguyen Huu Chi, chairman of the provincial People’s Committee, decided to allocate part of the local budget to support farmers in widening the growing area Tu Quy rice, expecting to reach 100ha by the end of 2009.
— VNS
Black Market Price For The Dollar Climbs
HA NOI — A single dollar cost as much as VND18,000 on the street yesterday.
The price represented a VND200-300 depreciation against the dollar within a day and a VND350-450 fall since Thursday morning.
Gold shops on Ha Trung and Tran Nhan Tong streets, Ha Noi, bought a single dollar at VND17,750-17,800 and sold at VND17,950-18,000.
The rate at small shops ranged from VND17,600-17,750.
In the non-deliverable-forward, or NDF, market – where investors anticipate the value of currencies – the monthly cost of the dollar was expected to rise to VND18,300 within three months – up VND700 against late last year – and VND19,200 within six months.
The dollar is expected to cost VND19,900 by December.
But the State Bank of Viet Nam reduced the daily inter-bank exchange rate by VND3 to VND16,974 on the mandated market.
Vietcombank’s buying and selling price was the same at VND17,483 and the exchange rates at commercial banks remained at the upper limit of the adjustable peg.
The Vietcombank’s rate at the end of 2008 was VND17,494 compared with VND16,025 the previous year.
Several bankers described the demand for the dollar as normal.
"Purchasing power in the domestic market is not growing and demand from enterprises to pay for imports remains limited," said Asia Commercial Bank deputy general director Nguyen Thanh Toai.
The currency, at its most volatile, had ranged between VND15,825 and VND17,495 throughout last year.
Why the high price?
So why the high price on the street?
Senior economist Le Dang Doanh believes that both business and individuals are seeking safety in the dollar.
Others believe the Government decision, announced last Friday, to issue bonds denominated in the dollar to fund key national projects and help offset the budget deficit has added to the currency’s popularity.
People believe policy makers will allow the depreciation of the domestic currency to make the bonds more attractive.
As PXP Viet Nam Asset Management’s Kevin Snowball explained: "Investors will buy bonds if the foreign currency is stronger because they’ll make money.
"They won’t buy bonds if the foreign currency is weaker because they’ll lose money."
Also gold traders, who sold to take advantage of the high international price for the precious metal, are turning their dong into the dollar because the interest banks now offer for deposits is not as attractive as several months ago.
The likelihood that the interest paid for dong deposits will fall as low inflation in Asia, including Viet Nam, allows the central bank to further reduce the interest rate also promotes the dollar.
In addition, the Harvard Kennedy School of Government and some international banks have advised a further, orderly depreciation of the dong this year to boost exports and narrow the trade deficit.
Then, as Asian stocks slide and insolvent banks face the prospect of public ownership, investors are choosing the safety of the dollar, US Treasury bonds and gold.
And many bankers agree, the Government is unlikely to intervene in the market.
Hot gold
Gold jumped slightly to VND19.67 million (US$1,130) a tael yesterday, up VND20,000 per tael against late Thursday.
The price followed the world price for the precious metal, which had reached $978.20 an ounce – up $4.80 and its highest for more than six months.
A tael equals 1.2 troy ounces.
On the Sai Gon Gold Trading Exchange in Ha Noi, gold cost VND20.47 million ($1,133) per tael.
In Ha Noi, the Phu Nhuan Jewellery Co, PNJ-DAB, the buy-sell price for gold leaf was VND19.58/19.66 million ($1,125-1,129) per tael.
At Bao Tin Minh Chau Jewellery Co (BTMC), gold traded at about VND19.54/19.62 million ($1,122-1,127) per tael while at the Sai Gon Jewellery Holding Co, it was about VND19.60/19.67 million ($1,126-1,130) per tael.
Sellers, who offered not only gold leaf but also gold jewellery, heavily outnumbered buyers in the morning and early afternoon.
Viet Nam Gold Trading Association member Tran Quoc Quynh forecast that domestic gold prices would increase during the next few days because of the international trend upward.
It could plateau at $1,050 per ounce because of the heavy demand in the US, Russia, China, Switzerland and France, he said.
— VNS
The price represented a VND200-300 depreciation against the dollar within a day and a VND350-450 fall since Thursday morning.
Gold shops on Ha Trung and Tran Nhan Tong streets, Ha Noi, bought a single dollar at VND17,750-17,800 and sold at VND17,950-18,000.
The rate at small shops ranged from VND17,600-17,750.
In the non-deliverable-forward, or NDF, market – where investors anticipate the value of currencies – the monthly cost of the dollar was expected to rise to VND18,300 within three months – up VND700 against late last year – and VND19,200 within six months.
The dollar is expected to cost VND19,900 by December.
But the State Bank of Viet Nam reduced the daily inter-bank exchange rate by VND3 to VND16,974 on the mandated market.
Vietcombank’s buying and selling price was the same at VND17,483 and the exchange rates at commercial banks remained at the upper limit of the adjustable peg.
The Vietcombank’s rate at the end of 2008 was VND17,494 compared with VND16,025 the previous year.
Several bankers described the demand for the dollar as normal.
"Purchasing power in the domestic market is not growing and demand from enterprises to pay for imports remains limited," said Asia Commercial Bank deputy general director Nguyen Thanh Toai.
The currency, at its most volatile, had ranged between VND15,825 and VND17,495 throughout last year.
Why the high price?
So why the high price on the street?
Senior economist Le Dang Doanh believes that both business and individuals are seeking safety in the dollar.
Others believe the Government decision, announced last Friday, to issue bonds denominated in the dollar to fund key national projects and help offset the budget deficit has added to the currency’s popularity.
People believe policy makers will allow the depreciation of the domestic currency to make the bonds more attractive.
As PXP Viet Nam Asset Management’s Kevin Snowball explained: "Investors will buy bonds if the foreign currency is stronger because they’ll make money.
"They won’t buy bonds if the foreign currency is weaker because they’ll lose money."
Also gold traders, who sold to take advantage of the high international price for the precious metal, are turning their dong into the dollar because the interest banks now offer for deposits is not as attractive as several months ago.
The likelihood that the interest paid for dong deposits will fall as low inflation in Asia, including Viet Nam, allows the central bank to further reduce the interest rate also promotes the dollar.
In addition, the Harvard Kennedy School of Government and some international banks have advised a further, orderly depreciation of the dong this year to boost exports and narrow the trade deficit.
Then, as Asian stocks slide and insolvent banks face the prospect of public ownership, investors are choosing the safety of the dollar, US Treasury bonds and gold.
And many bankers agree, the Government is unlikely to intervene in the market.
Hot gold
Gold jumped slightly to VND19.67 million (US$1,130) a tael yesterday, up VND20,000 per tael against late Thursday.
The price followed the world price for the precious metal, which had reached $978.20 an ounce – up $4.80 and its highest for more than six months.
A tael equals 1.2 troy ounces.
On the Sai Gon Gold Trading Exchange in Ha Noi, gold cost VND20.47 million ($1,133) per tael.
In Ha Noi, the Phu Nhuan Jewellery Co, PNJ-DAB, the buy-sell price for gold leaf was VND19.58/19.66 million ($1,125-1,129) per tael.
At Bao Tin Minh Chau Jewellery Co (BTMC), gold traded at about VND19.54/19.62 million ($1,122-1,127) per tael while at the Sai Gon Jewellery Holding Co, it was about VND19.60/19.67 million ($1,126-1,130) per tael.
Sellers, who offered not only gold leaf but also gold jewellery, heavily outnumbered buyers in the morning and early afternoon.
Viet Nam Gold Trading Association member Tran Quoc Quynh forecast that domestic gold prices would increase during the next few days because of the international trend upward.
It could plateau at $1,050 per ounce because of the heavy demand in the US, Russia, China, Switzerland and France, he said.
— VNS
VIETNAM BUSINESS NEWS UPDATE
19-02-09
• The Electricity of Vietnam has reported that it is to invest almost 50 trillion VND in electricity generation sources during 2009, including nuclear power plants. The State-run business revealed that it has raised 44.39 trillion VND so far and is actively seeking the remaining 5.6 trillion VND. The group said that it would make full use of official development assistance (ODA) and preferential credit sources, seek commercial loans, and ensure the smooth progress of an approved plan to issue 4 trillion VND worth of bonds. With the planned investment, EVN will strive to put into operation nine electricity plants with a combined capacity of 2,696 MW and commence construction of four thermal-electricity plants, capable of producing 3,800 MW in total, this year.
• Germany’s Metro Cash & Carry Group began construction of a 20 million USD wholesale trade centre in southern Dong Nai province on January 16. This is Metro Cash & Carry’s 9th wholesale trade centre in Vietnam and the first in the southeastern region. Once operational in June 2009, the 50,000 sq.m centre is expected to provide a wide range of goods for local consumers, including food and agro-forestry products.
• International call charges from Vietnam are lower than any other country in the region thanks to the 50% discount offered by the Vietnam Post and Telecommunications Group (VNPT) last September. The group’s 2008 revenue increased 19% against over 2007, at more than 55 trillion VND (3.2 billion USD). In 2008, VNPT added 22 million subscribers to its list of phone users, increasing the number of its subscribers to 49 million. VNPT plans to increase its revenue during 2009 to around 60 trillion VND whilst making further reductions to call charges.
• A total of 115 businesses from Vietnam, Laos and Cambodia have been honored for their outstanding achievements in production and contributions to the neighborly friendship between the three countries. The Vietnamese award-winners included the Ministry of Defense’s Corporation 15, the Vietnam-Laos Rubber Joint Stock Company, the Hoang Anh-Gia Lai, and the Truong Son Construction Corporation. A ceremony to grant awards was held by the Vietnam Association of Small and Medium-sized Enterprises (Vinasme) in Hanoi on Jan. 18.
• The total number of ATM cards issued last year was 1.1 million, equal to the number in 2007, according to the year-end report of the State Bank of Vietnam’s Ho Chi Minh City Branch. The total value of ATM card transactions reached 69,000 billion VND (4 billion USD), up 32% compared with 2007, the report said. The number of cards now amounts to more than 4.2 million and the number of ATM machines is 2,257, according to the report. More than 146,000 civil servants in the city received salaries through ATMs in 2008, accounting for 92.9% of government employees.
• Vietnam’s footwear and garment exports to the Czech Republic reached 64 million USD in 2008, up by 50% compared with the previous year, according to the Ministry of Industry and Trade. The Vietnamese Embassy’s Trade Commission in the Czech Republic said garment and footwear was now the two major Vietnamese imports to the country. The ministry said Vietnam was expected to earn export revenue of 330 million USD from the Czech Republic in 2009, a year-on-year increase of 27%. That projected figure includes 80 million USD from garment and footwear products, an increase of 26% compared with 2008. Other major Vietnamese exports to the Czech Republic include coffee, tea, pepper, seafood and furniture.
• Gas supplier MTGas Joint Stock Company (MTG) on Jan. 15 became the latest firm to list at the HCMC Stock Exchange, bringing the total number of companies on the board to 172. The firm, with a chartered capital of 80 billion VND (4.5 million USD), provides liquefied petroleum gas and petrol to industrial and household customers. It also engages in goods transportation, warehouse business, infrastructure development, real estate and financial investment. The company, headquartered in Long An province, earned a net profit of 1.5 billion VND in the first nine months of 2008 with a turnover of 106 billion VND. This was down from the 12.7 billion VND it earned in 2007 when its revenue was 103 billion VND.
• Asia Commercial Bank (ACB), Vietnam's fifth largest lender, said it made a gross profit of 2.56 trillion dong ($151 million) last year, up 36.9 percent from the previous year. The total assets of the Ho Chi Minh City-based bank rose 35 percent to 115.24 trillion dong, it said in a statement seen on Monday. The 2008 results were not audited.
- Culled from Vietnam News Service VNS.
• The Electricity of Vietnam has reported that it is to invest almost 50 trillion VND in electricity generation sources during 2009, including nuclear power plants. The State-run business revealed that it has raised 44.39 trillion VND so far and is actively seeking the remaining 5.6 trillion VND. The group said that it would make full use of official development assistance (ODA) and preferential credit sources, seek commercial loans, and ensure the smooth progress of an approved plan to issue 4 trillion VND worth of bonds. With the planned investment, EVN will strive to put into operation nine electricity plants with a combined capacity of 2,696 MW and commence construction of four thermal-electricity plants, capable of producing 3,800 MW in total, this year.
• Germany’s Metro Cash & Carry Group began construction of a 20 million USD wholesale trade centre in southern Dong Nai province on January 16. This is Metro Cash & Carry’s 9th wholesale trade centre in Vietnam and the first in the southeastern region. Once operational in June 2009, the 50,000 sq.m centre is expected to provide a wide range of goods for local consumers, including food and agro-forestry products.
• International call charges from Vietnam are lower than any other country in the region thanks to the 50% discount offered by the Vietnam Post and Telecommunications Group (VNPT) last September. The group’s 2008 revenue increased 19% against over 2007, at more than 55 trillion VND (3.2 billion USD). In 2008, VNPT added 22 million subscribers to its list of phone users, increasing the number of its subscribers to 49 million. VNPT plans to increase its revenue during 2009 to around 60 trillion VND whilst making further reductions to call charges.
• A total of 115 businesses from Vietnam, Laos and Cambodia have been honored for their outstanding achievements in production and contributions to the neighborly friendship between the three countries. The Vietnamese award-winners included the Ministry of Defense’s Corporation 15, the Vietnam-Laos Rubber Joint Stock Company, the Hoang Anh-Gia Lai, and the Truong Son Construction Corporation. A ceremony to grant awards was held by the Vietnam Association of Small and Medium-sized Enterprises (Vinasme) in Hanoi on Jan. 18.
• The total number of ATM cards issued last year was 1.1 million, equal to the number in 2007, according to the year-end report of the State Bank of Vietnam’s Ho Chi Minh City Branch. The total value of ATM card transactions reached 69,000 billion VND (4 billion USD), up 32% compared with 2007, the report said. The number of cards now amounts to more than 4.2 million and the number of ATM machines is 2,257, according to the report. More than 146,000 civil servants in the city received salaries through ATMs in 2008, accounting for 92.9% of government employees.
• Vietnam’s footwear and garment exports to the Czech Republic reached 64 million USD in 2008, up by 50% compared with the previous year, according to the Ministry of Industry and Trade. The Vietnamese Embassy’s Trade Commission in the Czech Republic said garment and footwear was now the two major Vietnamese imports to the country. The ministry said Vietnam was expected to earn export revenue of 330 million USD from the Czech Republic in 2009, a year-on-year increase of 27%. That projected figure includes 80 million USD from garment and footwear products, an increase of 26% compared with 2008. Other major Vietnamese exports to the Czech Republic include coffee, tea, pepper, seafood and furniture.
• Gas supplier MTGas Joint Stock Company (MTG) on Jan. 15 became the latest firm to list at the HCMC Stock Exchange, bringing the total number of companies on the board to 172. The firm, with a chartered capital of 80 billion VND (4.5 million USD), provides liquefied petroleum gas and petrol to industrial and household customers. It also engages in goods transportation, warehouse business, infrastructure development, real estate and financial investment. The company, headquartered in Long An province, earned a net profit of 1.5 billion VND in the first nine months of 2008 with a turnover of 106 billion VND. This was down from the 12.7 billion VND it earned in 2007 when its revenue was 103 billion VND.
• Asia Commercial Bank (ACB), Vietnam's fifth largest lender, said it made a gross profit of 2.56 trillion dong ($151 million) last year, up 36.9 percent from the previous year. The total assets of the Ho Chi Minh City-based bank rose 35 percent to 115.24 trillion dong, it said in a statement seen on Monday. The 2008 results were not audited.
- Culled from Vietnam News Service VNS.
Friday, February 20, 2009
Nigeria To Partner Vietnam to Develop Textile Industry
Federal Government has expressed willingness to partner Vietnam on the development of the textile industry.
The Minister of Commerce and Industry, Chief Achike Udenwa, who was represented by the Permanent Secretary, Mrs. Elizabeth Emuren, disclosed this at the Nigeria-Vietnam Chamber of Commerce and Industry stakeholders’ forum in Lagos on Tuesday.
He said the government was poised to foster trade ties with Vietnam and facilitate the development of the textile industry.
He said, “We must also take full advantage of our vast market in Africa, especially in the West African sub-region to work closely with our Vietnamese trading partners, not only to boost trade, but also to work assiduously in developing all our industrial potential.
“Especially in the area of textile industries, an area which Vietnam is reputed for its expertise. To attain this goal, the Nigerian-Vietnam Chamber of Commerce and Industry and other stake holders must work with their Vietnamese counterparts.”
He said the effort was to improve mechanism for better bilateral cooperation and increase coordination with relevant agencies of Vietnam and Nigeria to remove difficulties and obstacles hindering Vietnam’s investment flow into the country.
The President of the chamber, Mr. Oye Akinsemoyin, said Vietnam had established strong and virile economic relations with most countries, the world.
He said Vietnam was a trusted partner in progress to many countries, resulting in an enviable and constant elevation of her position on the international front.
He said despite the huge constraint imposed by geographical distance, Vietnam and Nigeria had mutually desired to develop unique friendship as the bedrock to trade, commercial and industrial collaboration between the two.
-By Sulaiman Adenekan Punch News
The Minister of Commerce and Industry, Chief Achike Udenwa, who was represented by the Permanent Secretary, Mrs. Elizabeth Emuren, disclosed this at the Nigeria-Vietnam Chamber of Commerce and Industry stakeholders’ forum in Lagos on Tuesday.
He said the government was poised to foster trade ties with Vietnam and facilitate the development of the textile industry.
He said, “We must also take full advantage of our vast market in Africa, especially in the West African sub-region to work closely with our Vietnamese trading partners, not only to boost trade, but also to work assiduously in developing all our industrial potential.
“Especially in the area of textile industries, an area which Vietnam is reputed for its expertise. To attain this goal, the Nigerian-Vietnam Chamber of Commerce and Industry and other stake holders must work with their Vietnamese counterparts.”
He said the effort was to improve mechanism for better bilateral cooperation and increase coordination with relevant agencies of Vietnam and Nigeria to remove difficulties and obstacles hindering Vietnam’s investment flow into the country.
The President of the chamber, Mr. Oye Akinsemoyin, said Vietnam had established strong and virile economic relations with most countries, the world.
He said Vietnam was a trusted partner in progress to many countries, resulting in an enviable and constant elevation of her position on the international front.
He said despite the huge constraint imposed by geographical distance, Vietnam and Nigeria had mutually desired to develop unique friendship as the bedrock to trade, commercial and industrial collaboration between the two.
-By Sulaiman Adenekan Punch News
VIETNAM-NIGERIAN TRADES BILATERAL RELATIONS HIGHLIGHTS SERIES (2)
Vietnam-Nigeria Joint Statement
At the invitation of Vietnamese President Tran Duc Luong, Nigerian President Olusegun Obasanjo paid an official visit to Vietnam from April 17-18.
During his stay in Vietnam, President Obasanjo and his entourage were warmly welcomed by Vietnamese leaders and people. President Obasanjo met with General Secretary of the Communist Party of Vietnam Nong Duc Manh, held talks with President Tran Duc Luong, met Prime Minister Phan Van Khai and visited General Vo Nguyen Giap. He laid a wreath at the Monument of Fallen Soldiers, paid a floral tribute to President Ho Chi Minh at his mausoleum, and visited the Institute for Agricultural Scientific Research and several economic and cultural establishments in Ha Noi.
During their talks, President Luong and President Obasanjo exchanged information on their experiences in the political, social and economic fields in their own countries. The two sides agreed that the two countries have many similarities and therefore they can assist each other. They also agreed that their potential for co-operation are great.
President Luong extolled the achievements obtained by the Nigerian people in their national construction and development, and the renovation programmes and efforts for democracy in Nigeria.
President Obasanjo expressed his admiration of Vietnam's brave struggle for national independence in the past and the important results of the renovation process obtained by the Vietnamese people.
The two sides were satisfied with the results of the visit. Reviewing the progress of the diplomatic ties over nearly three decades, the two leaders were delighted to see the bilateral relations are developing to a new height for the interests of both countries. They agreed to encourage investment and technical co-operation. On this issue, they instructed their officials to negotiate soon to reach agreements in the fields of agriculture, forestry, underground water exploitation and irrigation work, infrastructure, economy and trade, science and technology, environment, health care, culture and others.
The Nigerian President lauded Vietnam for successfully organising the "Vietnam - Africa: Co-operation and Development Opportunities in the 21st Century" forum in Hanoi in May 2003, describing it as reflective of Vietnam's desire to boost relations with Africa.
The two sides reaffirmed their attachment to the Asia-Africa partnership, which is regarded as part of the South-South Co-operation. They applauded the Asian and African leaders' decision to sign a joint declaration at the upcoming Asia - Africa Summit in Bandung, Indonesia.
President Luong spoke highly of the establishment of the African Union, of which President Obasanjo is Chairman, and the approval of the New Partnership for Africa's Development (NEPAD).
Regarding international affairs, the two Presidents held that Vietnam and Nigeria have common interest security defence. They, therefore, agreed to co-ordinate with other countries which have the same viewpoint to ensure a judicious and humane international, political and economic order. They shared the same view that the regions and the world should make more efforts to resolve problems such as poverty, slow development, and diseases.
The two Presidents supported the proposal to expand the United Nations Security Council in order to make the group more representative and democratic.
President Obasanjo thanked President Luong and Vietnamese officials and people for their warm welcome. He invited President Luong to visit Nigeria and President Luong accepted his invitation with thanks.
At the invitation of Vietnamese President Tran Duc Luong, Nigerian President Olusegun Obasanjo paid an official visit to Vietnam from April 17-18.
During his stay in Vietnam, President Obasanjo and his entourage were warmly welcomed by Vietnamese leaders and people. President Obasanjo met with General Secretary of the Communist Party of Vietnam Nong Duc Manh, held talks with President Tran Duc Luong, met Prime Minister Phan Van Khai and visited General Vo Nguyen Giap. He laid a wreath at the Monument of Fallen Soldiers, paid a floral tribute to President Ho Chi Minh at his mausoleum, and visited the Institute for Agricultural Scientific Research and several economic and cultural establishments in Ha Noi.
During their talks, President Luong and President Obasanjo exchanged information on their experiences in the political, social and economic fields in their own countries. The two sides agreed that the two countries have many similarities and therefore they can assist each other. They also agreed that their potential for co-operation are great.
President Luong extolled the achievements obtained by the Nigerian people in their national construction and development, and the renovation programmes and efforts for democracy in Nigeria.
President Obasanjo expressed his admiration of Vietnam's brave struggle for national independence in the past and the important results of the renovation process obtained by the Vietnamese people.
The two sides were satisfied with the results of the visit. Reviewing the progress of the diplomatic ties over nearly three decades, the two leaders were delighted to see the bilateral relations are developing to a new height for the interests of both countries. They agreed to encourage investment and technical co-operation. On this issue, they instructed their officials to negotiate soon to reach agreements in the fields of agriculture, forestry, underground water exploitation and irrigation work, infrastructure, economy and trade, science and technology, environment, health care, culture and others.
The Nigerian President lauded Vietnam for successfully organising the "Vietnam - Africa: Co-operation and Development Opportunities in the 21st Century" forum in Hanoi in May 2003, describing it as reflective of Vietnam's desire to boost relations with Africa.
The two sides reaffirmed their attachment to the Asia-Africa partnership, which is regarded as part of the South-South Co-operation. They applauded the Asian and African leaders' decision to sign a joint declaration at the upcoming Asia - Africa Summit in Bandung, Indonesia.
President Luong spoke highly of the establishment of the African Union, of which President Obasanjo is Chairman, and the approval of the New Partnership for Africa's Development (NEPAD).
Regarding international affairs, the two Presidents held that Vietnam and Nigeria have common interest security defence. They, therefore, agreed to co-ordinate with other countries which have the same viewpoint to ensure a judicious and humane international, political and economic order. They shared the same view that the regions and the world should make more efforts to resolve problems such as poverty, slow development, and diseases.
The two Presidents supported the proposal to expand the United Nations Security Council in order to make the group more representative and democratic.
President Obasanjo thanked President Luong and Vietnamese officials and people for their warm welcome. He invited President Luong to visit Nigeria and President Luong accepted his invitation with thanks.
VIETNAM-NIGERIAN BILATERAL TRADE RELATIONS HIGHLIGHTS SERIES (1)
Vietnam - Nigeria Investment and Business Cooperation Opportunities
Nearly 60 representatives of leading Nigerian organisations and businesses and many Vietnamese enterprises witnessed the signing ceremony of cooperation agreement between the VCCI and Nigeria - Vietnam Chamber of Commerce and Industry (NVCCI) at the Forum of Vietnam - Nigeria Investment and Business. The Forum is held by the VCCI in cooperation with Nigeria Investment Promotion Commission – NIPC and NVCCI on October 22 in Hanoi.
Wishing to boost cooperation
Prince Oye Akisemoyin, NCCI Chairman, said the Nigerian delegation to Vietnam this time included governmental officials of the Federation of Nigeria, some state Governors, and big economic groups, associations and corporations that are leading Nigerian businesses specialising in petroleum, energy, electricity, electronics, rice, agricultural produce, pharmaceuticals, finance, banking, coal, telecommunication, shipping, transportation, construction, machinery, general import and export, etc.
“We wish to boost investment and trade cooperation with Vietnamese enterprises. At present, there are few Vietnamese enterprises choosing Nigeria their destination for doing business. Therefore, the two countries should push up the relationship further”, said Adesoji Adesugba, Director of NIPC.
He added, many countries currently considered Nigeria as their appealing investment destination, many of them coming from Asia. "In 2001, China invested around USD1 billion in Nigeria. In the first six months of 2008, China has poured another investment of USD3 billion in Nigeria. We hope that we will attract a total amount of USD5 billion from China this year”, he provided an evidence.
Engr.Mustafa Bello, Secretary General of NIPC, said Nigerian businesses cared about Vietnam's assembly line and technology of processing cashew nuts and highly appreciated qualification of Vietnamese experts in agriculture and electronics.
In particular, Nigeria has a huge demand for rice, which is strength of Vietnam. According to H.E. Mr.Sani Bako, Chargé d'affaires, Nigerian Embassy in Hanoi, Nigeria has to import around 1.5 - 1.7 million tonnes of rice every year. Nigeria's Government has removed all tariff and fees of rice import in order to cool down its food crisis. Accordingly, rice imported into Nigeria will not pay all tariffs and fees since May 7, 2008. "This is a big chance for Vietnam's rice exporters", emphasised H.E.Mr.Sani Bako.
It is also known that under the framework of the Programme of Strengthening trade exchange among members of Central African Economic and Monetary Community, West Africa and members of Mekong River Sub-region, by the end of November, the VCCI will cooperate with the Ministry of Industry and Trade of Vietnam and the Vietnam Food Association to hold the Meeting of Rice Sellers and Buyers in Hochiminh city aimed at establishing a direct food exchange channel with 14 Western and Central African countries.
Bilateral trade turnover grows
Vu Tien Loc, Chairman of the VCCI, evaluated that Vietnam and Nigeria had good traditional relationship. The two countries had mutually exchanged high-rank official delegations. In 2001, the two countries signed the Trade Agreement, which included the MFN article to establish favourable legal corridor for bilateral business operations. At present, bilateral cooperation frameworks continue to be perfected.
Vietnam has exported to Nigeria since 1995 and started to import from Nigeria since 1998. The two-way import and export turnover has increased constantly, where Vietnam's trade balance is usually surplus. As from statistics of General Customs Office, Vietnam exported roughly USD33 million to and imported nearly USD22 million from Nigeria in 2007. In the first six months of 2008, Vietnam exported USD20.5 million to and imported USD26 million from Nigeria.
“Being one of the largest markets in Africa, Nigeria has a demand for a lot of commodities every year, many of them are strength of Vietnam", said Mr Loc. Main articles exported from Vietnam to Nigeria include textile and garment, computers, electronic products and components, medicine, plastic ware, auto and motorbike components and spare-parts. Vietnam mainly import such articles from Nigeria as raw cashew nuts, cotton, timber, plastic, raw materials, fertilisers, of which raw cashew nuts occupies 83 per cent of total import value from Nigeria (in 2007). Nigeria is at present the largest supplier of cashew nut for Vietnam.
Mr Loc said, the construction of Vietnam - Africa Portal as well as cooperation to establish the NVCCI would be a model to develop a relationship with African countries. Simultaneously, enterprises in the two countries would have good chances to tighten trade and investment relations.
However, Mr Le Duong Quang, Deputy Industry and Trade Minister, pointed out that achievements did not match potentials of the two countries. The main reason is the lack of information and cross-learning between the two business communities, limited commercial promotion.
Mr Quang suggested that the two countries should strengthen exchanging delegations of high rank, ministerial level and branch level, and business delegations as well as tightening cooperation relationship between functional ministries and branches, associations, chambers of commerce and industry in two countries in order to solve problems and utilise big potentials. “The two partners need also to boost exchanging information related to policies, trade and investment, commercial, investment, and tourism promotion activities, list of exhibitions and trade fairs in each country, list of import and export that each partner has comparative advantages. In particular, direct business delegation visits are the most useful information channel to fully exploit”, said Mr Quang.
Lan Anh
Nearly 60 representatives of leading Nigerian organisations and businesses and many Vietnamese enterprises witnessed the signing ceremony of cooperation agreement between the VCCI and Nigeria - Vietnam Chamber of Commerce and Industry (NVCCI) at the Forum of Vietnam - Nigeria Investment and Business. The Forum is held by the VCCI in cooperation with Nigeria Investment Promotion Commission – NIPC and NVCCI on October 22 in Hanoi.
Wishing to boost cooperation
Prince Oye Akisemoyin, NCCI Chairman, said the Nigerian delegation to Vietnam this time included governmental officials of the Federation of Nigeria, some state Governors, and big economic groups, associations and corporations that are leading Nigerian businesses specialising in petroleum, energy, electricity, electronics, rice, agricultural produce, pharmaceuticals, finance, banking, coal, telecommunication, shipping, transportation, construction, machinery, general import and export, etc.
“We wish to boost investment and trade cooperation with Vietnamese enterprises. At present, there are few Vietnamese enterprises choosing Nigeria their destination for doing business. Therefore, the two countries should push up the relationship further”, said Adesoji Adesugba, Director of NIPC.
He added, many countries currently considered Nigeria as their appealing investment destination, many of them coming from Asia. "In 2001, China invested around USD1 billion in Nigeria. In the first six months of 2008, China has poured another investment of USD3 billion in Nigeria. We hope that we will attract a total amount of USD5 billion from China this year”, he provided an evidence.
Engr.Mustafa Bello, Secretary General of NIPC, said Nigerian businesses cared about Vietnam's assembly line and technology of processing cashew nuts and highly appreciated qualification of Vietnamese experts in agriculture and electronics.
In particular, Nigeria has a huge demand for rice, which is strength of Vietnam. According to H.E. Mr.Sani Bako, Chargé d'affaires, Nigerian Embassy in Hanoi, Nigeria has to import around 1.5 - 1.7 million tonnes of rice every year. Nigeria's Government has removed all tariff and fees of rice import in order to cool down its food crisis. Accordingly, rice imported into Nigeria will not pay all tariffs and fees since May 7, 2008. "This is a big chance for Vietnam's rice exporters", emphasised H.E.Mr.Sani Bako.
It is also known that under the framework of the Programme of Strengthening trade exchange among members of Central African Economic and Monetary Community, West Africa and members of Mekong River Sub-region, by the end of November, the VCCI will cooperate with the Ministry of Industry and Trade of Vietnam and the Vietnam Food Association to hold the Meeting of Rice Sellers and Buyers in Hochiminh city aimed at establishing a direct food exchange channel with 14 Western and Central African countries.
Bilateral trade turnover grows
Vu Tien Loc, Chairman of the VCCI, evaluated that Vietnam and Nigeria had good traditional relationship. The two countries had mutually exchanged high-rank official delegations. In 2001, the two countries signed the Trade Agreement, which included the MFN article to establish favourable legal corridor for bilateral business operations. At present, bilateral cooperation frameworks continue to be perfected.
Vietnam has exported to Nigeria since 1995 and started to import from Nigeria since 1998. The two-way import and export turnover has increased constantly, where Vietnam's trade balance is usually surplus. As from statistics of General Customs Office, Vietnam exported roughly USD33 million to and imported nearly USD22 million from Nigeria in 2007. In the first six months of 2008, Vietnam exported USD20.5 million to and imported USD26 million from Nigeria.
“Being one of the largest markets in Africa, Nigeria has a demand for a lot of commodities every year, many of them are strength of Vietnam", said Mr Loc. Main articles exported from Vietnam to Nigeria include textile and garment, computers, electronic products and components, medicine, plastic ware, auto and motorbike components and spare-parts. Vietnam mainly import such articles from Nigeria as raw cashew nuts, cotton, timber, plastic, raw materials, fertilisers, of which raw cashew nuts occupies 83 per cent of total import value from Nigeria (in 2007). Nigeria is at present the largest supplier of cashew nut for Vietnam.
Mr Loc said, the construction of Vietnam - Africa Portal as well as cooperation to establish the NVCCI would be a model to develop a relationship with African countries. Simultaneously, enterprises in the two countries would have good chances to tighten trade and investment relations.
However, Mr Le Duong Quang, Deputy Industry and Trade Minister, pointed out that achievements did not match potentials of the two countries. The main reason is the lack of information and cross-learning between the two business communities, limited commercial promotion.
Mr Quang suggested that the two countries should strengthen exchanging delegations of high rank, ministerial level and branch level, and business delegations as well as tightening cooperation relationship between functional ministries and branches, associations, chambers of commerce and industry in two countries in order to solve problems and utilise big potentials. “The two partners need also to boost exchanging information related to policies, trade and investment, commercial, investment, and tourism promotion activities, list of exhibitions and trade fairs in each country, list of import and export that each partner has comparative advantages. In particular, direct business delegation visits are the most useful information channel to fully exploit”, said Mr Quang.
Lan Anh
Thursday, February 19, 2009
VIETNAM BUSINESS NEWS UPDATE
Vietnam's Ministry of Information and Communications is aiming to migrate the country's government to open source software by the end of 2010. The ambitious plan calls for rapid adoption of open source software and extensive training to ensure that IT staff and government employees will be able to adjust to the change. The first stage of the plan, which entails migrating all of the backend server infrastructure and training the IT personnel that manage it, is scheduled for completion by the end of June 2009. The next stage is the desktop rollout, which mandates adoption of OpenOffice.org, Firefox, and Thunderbird. The government expects this transition to be completely by the end of 2010.
The domestic garments and textiles sector has targeted to earn US$9.2-9.5 billion from exports in 2009, up 5% against 2008. In order to achieve the target, the sector has worked out measures including strengthening the apparatus of the Vietnam garments and textiles group, increasing productivity, developing human resources, boosting investment in to selected projects of effectiveness, accelerating trade promotion activities and expanding export markets in the Middle East, Eastern Europe and Africa. 2009 has been forecast to be a year of continued great difficulties for the sector due to the global economic recession and competition pressure from Chinese products. In 2008, the garments and textiles sector grew by 18% and earned US$9.1 billion from exports.
Vietnamese dairy farmers have filed a civil suit seeking compensation from the health ministry for erroneously saying the company they supplied sold melamine-laced products. Nearly 100 farmers in the northern province of Vinh Phuc said they were unable to sell their milk for three months after the health ministry announced that Hanoi Milk Joint Stock Co.'s products were tainted by the industrial chemical, the Vietnam News reported on Wednesday. The ministry recently said the company's products were in fact melamine-free, but the farmers said their situation had not improved. Hanoi Milk, Vietnam's third largest dairy product company, has reported that its revenue fell 70% in September due to the melamine scare.
Vietnam’s optimistic economic outlook ranks 7th amongst 36 countries and territories, said Grant Thornton International Ltd on January 5. The Grant Thornton International Business Report shows optimism in Vietnam to have fallen from +87 to +31, but as major world economies enter into recession, Vietnam remains one of the most optimistic countries in the world. Their macro view of the world economic stage explains the overall slump in optimism, but while privately held businesses are preparing for a prolonged and painful downturn, those in the emerging economies realize that at their own micro level it could offer real opportunities," said Kenneth Atkinson, Managing Partner of Grant Thornton Vietnam
Vietnam's central bank set the dollar's exchange rate lower at VND16,970 Thursday. The state-owned Vietcombank sold lower at VND17,479, compared with VND17,481 Wednesday. Gold shops sold flat at VND17,540. Dealers said they expect the exchange rate to rise toward the weekend on rising demand for the dollar.
A Hanoi court is believed to sentence two Malaysians - Tan Wei Hong, 26, and Cham Tack Choi, 23, to seven years in prison on Wednesday on charges of using fake credit cards. The two Malaysians were arrested on Dec. 21, 2007 when they went on a shopping spree at the Louis Vuitton fashion shop in Hoan Kiem district Hong later admitted to the police that he had visited Vietnam on three occasions and used fake credit cards to pay for 293 million VND (US$17,000) worth of goods. Meanwhile Choi had made two visits to Vietnam for the same purpose and had used fake cards to rack up more than 275 million VND (US$16,200) in goods.
The Advertising Research and Training Institute of Vietnam (ARTI Vietnam) and the Institute for Advertising of Singapore (IAS) will cooperate in training personnel for Vietnam’s fledging advertising sector. The two sides will ink a cooperation deal in Ho Chi Minh City on Jan. 9. On the occasion, ARTI Vietnam, which was officially set up in Sept. 2008, will grant certificates for its first graduates.
The Ministry of Planning and Investment (MoPI) has submitted to the Prime Minister for approval a 1 billion USD project to build a golf course, five-star hotels and hostels in Vientiane, Laos. If approved, it will be Vietnam’s ever largest investment project abroad. The project’s investor, Long Thanh Golf Investment and Business Joint Stock Company, said it plans to mobilize capital from share holders, domestic and foreign partners and bank loans. According to the MoPI, Vietnam is the largest foreign investor in Laos with 146 projects worth 1.5 billion USD. In the first 11 months of 2008, Vietnamese businesses invested in 52 projects in Laos with total registered capital of 450 million USD.
Kinh Bac City Development said it may buy Saigon Telecommunication & Technology Corp. to improve telecommunications services within its industrial zones. Kinh Bac, a real estate and industrial zone developer in Bac Ninh province, is considering acquiring or merging with SaigonTel this year, Chief Accountant Tran Ngoc Diep said.
The acquisition plan requires shareholder approval, he said. Kinh Bac already owns about 19% of SaigonTel, according to Diep. The phone company rose 3% to close at VND27,300 on the Ho Chi Minh Stock Exchange Tuesday. The stock lost 67% of its value last year, giving it a market value of VND1.6 trillion (US$91 million).
The domestic garments and textiles sector has targeted to earn US$9.2-9.5 billion from exports in 2009, up 5% against 2008. In order to achieve the target, the sector has worked out measures including strengthening the apparatus of the Vietnam garments and textiles group, increasing productivity, developing human resources, boosting investment in to selected projects of effectiveness, accelerating trade promotion activities and expanding export markets in the Middle East, Eastern Europe and Africa. 2009 has been forecast to be a year of continued great difficulties for the sector due to the global economic recession and competition pressure from Chinese products. In 2008, the garments and textiles sector grew by 18% and earned US$9.1 billion from exports.
Vietnamese dairy farmers have filed a civil suit seeking compensation from the health ministry for erroneously saying the company they supplied sold melamine-laced products. Nearly 100 farmers in the northern province of Vinh Phuc said they were unable to sell their milk for three months after the health ministry announced that Hanoi Milk Joint Stock Co.'s products were tainted by the industrial chemical, the Vietnam News reported on Wednesday. The ministry recently said the company's products were in fact melamine-free, but the farmers said their situation had not improved. Hanoi Milk, Vietnam's third largest dairy product company, has reported that its revenue fell 70% in September due to the melamine scare.
Vietnam’s optimistic economic outlook ranks 7th amongst 36 countries and territories, said Grant Thornton International Ltd on January 5. The Grant Thornton International Business Report shows optimism in Vietnam to have fallen from +87 to +31, but as major world economies enter into recession, Vietnam remains one of the most optimistic countries in the world. Their macro view of the world economic stage explains the overall slump in optimism, but while privately held businesses are preparing for a prolonged and painful downturn, those in the emerging economies realize that at their own micro level it could offer real opportunities," said Kenneth Atkinson, Managing Partner of Grant Thornton Vietnam
Vietnam's central bank set the dollar's exchange rate lower at VND16,970 Thursday. The state-owned Vietcombank sold lower at VND17,479, compared with VND17,481 Wednesday. Gold shops sold flat at VND17,540. Dealers said they expect the exchange rate to rise toward the weekend on rising demand for the dollar.
A Hanoi court is believed to sentence two Malaysians - Tan Wei Hong, 26, and Cham Tack Choi, 23, to seven years in prison on Wednesday on charges of using fake credit cards. The two Malaysians were arrested on Dec. 21, 2007 when they went on a shopping spree at the Louis Vuitton fashion shop in Hoan Kiem district Hong later admitted to the police that he had visited Vietnam on three occasions and used fake credit cards to pay for 293 million VND (US$17,000) worth of goods. Meanwhile Choi had made two visits to Vietnam for the same purpose and had used fake cards to rack up more than 275 million VND (US$16,200) in goods.
The Advertising Research and Training Institute of Vietnam (ARTI Vietnam) and the Institute for Advertising of Singapore (IAS) will cooperate in training personnel for Vietnam’s fledging advertising sector. The two sides will ink a cooperation deal in Ho Chi Minh City on Jan. 9. On the occasion, ARTI Vietnam, which was officially set up in Sept. 2008, will grant certificates for its first graduates.
The Ministry of Planning and Investment (MoPI) has submitted to the Prime Minister for approval a 1 billion USD project to build a golf course, five-star hotels and hostels in Vientiane, Laos. If approved, it will be Vietnam’s ever largest investment project abroad. The project’s investor, Long Thanh Golf Investment and Business Joint Stock Company, said it plans to mobilize capital from share holders, domestic and foreign partners and bank loans. According to the MoPI, Vietnam is the largest foreign investor in Laos with 146 projects worth 1.5 billion USD. In the first 11 months of 2008, Vietnamese businesses invested in 52 projects in Laos with total registered capital of 450 million USD.
Kinh Bac City Development said it may buy Saigon Telecommunication & Technology Corp. to improve telecommunications services within its industrial zones. Kinh Bac, a real estate and industrial zone developer in Bac Ninh province, is considering acquiring or merging with SaigonTel this year, Chief Accountant Tran Ngoc Diep said.
The acquisition plan requires shareholder approval, he said. Kinh Bac already owns about 19% of SaigonTel, according to Diep. The phone company rose 3% to close at VND27,300 on the Ho Chi Minh Stock Exchange Tuesday. The stock lost 67% of its value last year, giving it a market value of VND1.6 trillion (US$91 million).
Wednesday, February 18, 2009
2009 NIGERIAN IMPORT/EXPORT AND FRANCHISE BUSINESS OPPORTUNITIES CONFERENCE!
ULTIMATE WEALTH EMPOWERMENT SEMINARS SERIES,In conjunction with,VIETNAMESE EMBASSY TRADE OFFICE in Nigeria and PISKOYE NIGERIA LTD & Partners, sole franchise right holders, to promote and market Vietnamese business and investment opportunities window to Nigerians, Presents a one day conference in major Nigerian cities, titled,
EXPLORING BUSINESS AND INVESTMENT OPPORTUNITIES IN VIETNAM: The Emerging Asian Super ‘Tiger’.
The Vietnamese Embassy Trade Office in Nigeria is pleased to inform Nigerians that the Vietnamese Government is interested in doing business with Nigeria. In order to achieve this laudable objective, the office of the commercial counselor in charge of trade and business promotions was established in Nigeria in 2006. The main aim for setting up this office is to encourage and promote businesses and entrepreneurial opportunities between Nigeria and their Vietnamese counterparts so that they can partner in diverse areas of their business interests.
There are numerous opportunities in the Import/Export business industry especially for small, medium and large scale investors.
Export Business opportunities:
The good news to Nigerians is that, a lot of Vietnamese manufacturing companies are in need of Nigerians to supply them with raw materials such as Cashew nut, sesame seed, cotton-wool, wood, Kola-nut, bitter-cola, cattle horns & honey, precious stones, iron ore, minerals and lots more. This is an open Invitation to Nigerians who have access to any of these products to come to the seminar venue and meet with the Vietnamese Government Representatives.
Import Business Opportunities:
Vietnam has a wide range of products ranging from mobile phones and accessories, Medical & Gym Equipments, Automobile Products with spare parts, all kinds of Electronics, Computers and Laptops with accessories ( DVDs, Cd’s, TVs, Antennas, Video Game, Air-Conditioners, Home Theatre), Books, Banking and Security Products, Kitchen Utensils (micro-waves, Refrigerators, Freezers, Toasters, Blenders, Juice-extractors, ice-cream makers, slicing-machine, grillers, Gas-cookers, Electric-oven, Electric-kettles,)
Also Motorcycles, Generators, Cosmetics, Jewelleries, Trucks, Agricultural, Industrial and Engineering Equipments, Home and Office Furniture, Tricycle and Bicycles, Printing Machines, Mobile Toilets, Digital Cameras, Camcorders, Building Materials, Office Machines (Copier Machines, Paper Printers, Spiral Binding Machine, Fax machine) Soap Dispenser, Water Dispenser, Fashion and General Accessories/ Spare Parts.
And Lots More.
Individual & corporate bodies who may be interested in importing from Vietnam should take advantage of this golden opportunity and profit.
BENEFITS FOR ATTENDEES:
Assistance on how to travel to Vietnam.
Physical visitation and free consultancy with the Vietnamese (embassy) trade office in Nigeria.
Opportunities for individuals and corporate bodies to attend international trade shows, exhibitions, and expos in Vietnam.
Access to product Manufacturers in Vietnam (Import).
List of the ten fastest selling products will be revealed.
Opportunities to be a sales representative to Vietnamese companies in Nigeria.
Access to buyers of Nigerian exportable products in Vietnam (Export)
Free support on verification of Vietnamese manufacturers and their offers
The head of Vietnamese trade office and commercial counselor in Nigeria gave the assurance that only good quality products ‘‘certified by the Vietnamese products high quality Trade mark’’ will be sold to Nigerians.
Email alert of business opportunities in Vietnam.
General Information on feeding, Accommodation & flight will be provided.
Cd’s and catalogues of Vietnamese Products will be given on request.
List of Nigerian import and export prohibits (contra bound) will be given to attendees.
Our company in collaboration with the Vietnamese (embassy) trade office will give you all the support you need to succeed in this business.
And lots more
WHO SHOULD ATTEND?
Individuals and corporate bodies that are interested in small, medium & large scale import-export and franchise business opportunities.
Market/Trade unions should take advantage of this opportunity by encouraging and enlightening their members to diversify and take early positions in this emerging market – THE NEW WORLD DESTINATION IN ASIA, just like what happened in China some years back.
Group attendance by trade associations like the Importers Council of Nigeria, major market/traders unions in seminars cities will attract special discount for 'group registration of members'. Executives of such bodies should call PIUS on 08025564948 for friendly partnership/collaborative terms.
RESOURCE PERSONS IN ATTENDANCE:
Mr. Pam Vong Cong, Head and Commercial Counselor of the Vietnamese Embassy Trade Office in Nigeria.
Mr. Le Hong Quang and other delegates of the trade office will be physically present at this conference.
Mr. Emmanuel Excel Ogbeide, CEO. Business Builders Nig. Ltd.
Mr. Okoye Okechukwu Pius, President, Ultimate Wealth Empowerment Seminars Series, CEO, Piskoye Nig. Ltd.
NATIONWIDE CONFERENCES: CITIES AND DATES.
ONITSHA-MARCH, 7TH, 2009.
LAGOS-MARCH, 20TH, 2009.
ABUJA-APRIL, 3TH, 2009.
ABA-APRIL, 18TH, 2009.
KANO-MAY,2nd, 2009
CALABER-MAY,16TH 2009
P’HARCOURT-MAY,29TH,2009
TIME: 11am – 3.30pm
REGISTRATION TIME: 10am
SEMINAR REGISTRATION FEE: N20, 000.00
PAYMENTS @ BANKS BRANCHES NATIONWIDE, BELOW,
UBA NIG. PLC,
A/C NAME: PISKOYE NIG. LTD.
A/C NOS.: 01150030003401,
And also,
FIRST BANK NIG. PLC,
A/C NAME: PISKOYE NIG. LTD.
A/C NO: 5152030002233
After Payment Send An SMS, “I Have Paid, Reserve My Vietnam Seat “stating, full names/phone/teller nos. & city of choice to 08025564948 or email to ultimatewealthmastermind@gmail.com.
Please come to venue with payment teller for registration!
FOR FURTHER ENQUIRIES:
Send SMS “I must attend, reserve my seat” stating full names, active phone/gsm numbers, city of choice, functional email address to 08025564948, 08078682111 and 08079909008
EXPLORING BUSINESS AND INVESTMENT OPPORTUNITIES IN VIETNAM: The Emerging Asian Super ‘Tiger’.
The Vietnamese Embassy Trade Office in Nigeria is pleased to inform Nigerians that the Vietnamese Government is interested in doing business with Nigeria. In order to achieve this laudable objective, the office of the commercial counselor in charge of trade and business promotions was established in Nigeria in 2006. The main aim for setting up this office is to encourage and promote businesses and entrepreneurial opportunities between Nigeria and their Vietnamese counterparts so that they can partner in diverse areas of their business interests.
There are numerous opportunities in the Import/Export business industry especially for small, medium and large scale investors.
Export Business opportunities:
The good news to Nigerians is that, a lot of Vietnamese manufacturing companies are in need of Nigerians to supply them with raw materials such as Cashew nut, sesame seed, cotton-wool, wood, Kola-nut, bitter-cola, cattle horns & honey, precious stones, iron ore, minerals and lots more. This is an open Invitation to Nigerians who have access to any of these products to come to the seminar venue and meet with the Vietnamese Government Representatives.
Import Business Opportunities:
Vietnam has a wide range of products ranging from mobile phones and accessories, Medical & Gym Equipments, Automobile Products with spare parts, all kinds of Electronics, Computers and Laptops with accessories ( DVDs, Cd’s, TVs, Antennas, Video Game, Air-Conditioners, Home Theatre), Books, Banking and Security Products, Kitchen Utensils (micro-waves, Refrigerators, Freezers, Toasters, Blenders, Juice-extractors, ice-cream makers, slicing-machine, grillers, Gas-cookers, Electric-oven, Electric-kettles,)
Also Motorcycles, Generators, Cosmetics, Jewelleries, Trucks, Agricultural, Industrial and Engineering Equipments, Home and Office Furniture, Tricycle and Bicycles, Printing Machines, Mobile Toilets, Digital Cameras, Camcorders, Building Materials, Office Machines (Copier Machines, Paper Printers, Spiral Binding Machine, Fax machine) Soap Dispenser, Water Dispenser, Fashion and General Accessories/ Spare Parts.
And Lots More.
Individual & corporate bodies who may be interested in importing from Vietnam should take advantage of this golden opportunity and profit.
BENEFITS FOR ATTENDEES:
Assistance on how to travel to Vietnam.
Physical visitation and free consultancy with the Vietnamese (embassy) trade office in Nigeria.
Opportunities for individuals and corporate bodies to attend international trade shows, exhibitions, and expos in Vietnam.
Access to product Manufacturers in Vietnam (Import).
List of the ten fastest selling products will be revealed.
Opportunities to be a sales representative to Vietnamese companies in Nigeria.
Access to buyers of Nigerian exportable products in Vietnam (Export)
Free support on verification of Vietnamese manufacturers and their offers
The head of Vietnamese trade office and commercial counselor in Nigeria gave the assurance that only good quality products ‘‘certified by the Vietnamese products high quality Trade mark’’ will be sold to Nigerians.
Email alert of business opportunities in Vietnam.
General Information on feeding, Accommodation & flight will be provided.
Cd’s and catalogues of Vietnamese Products will be given on request.
List of Nigerian import and export prohibits (contra bound) will be given to attendees.
Our company in collaboration with the Vietnamese (embassy) trade office will give you all the support you need to succeed in this business.
And lots more
WHO SHOULD ATTEND?
Individuals and corporate bodies that are interested in small, medium & large scale import-export and franchise business opportunities.
Market/Trade unions should take advantage of this opportunity by encouraging and enlightening their members to diversify and take early positions in this emerging market – THE NEW WORLD DESTINATION IN ASIA, just like what happened in China some years back.
Group attendance by trade associations like the Importers Council of Nigeria, major market/traders unions in seminars cities will attract special discount for 'group registration of members'. Executives of such bodies should call PIUS on 08025564948 for friendly partnership/collaborative terms.
RESOURCE PERSONS IN ATTENDANCE:
Mr. Pam Vong Cong, Head and Commercial Counselor of the Vietnamese Embassy Trade Office in Nigeria.
Mr. Le Hong Quang and other delegates of the trade office will be physically present at this conference.
Mr. Emmanuel Excel Ogbeide, CEO. Business Builders Nig. Ltd.
Mr. Okoye Okechukwu Pius, President, Ultimate Wealth Empowerment Seminars Series, CEO, Piskoye Nig. Ltd.
NATIONWIDE CONFERENCES: CITIES AND DATES.
ONITSHA-MARCH, 7TH, 2009.
LAGOS-MARCH, 20TH, 2009.
ABUJA-APRIL, 3TH, 2009.
ABA-APRIL, 18TH, 2009.
KANO-MAY,2nd, 2009
CALABER-MAY,16TH 2009
P’HARCOURT-MAY,29TH,2009
TIME: 11am – 3.30pm
REGISTRATION TIME: 10am
SEMINAR REGISTRATION FEE: N20, 000.00
PAYMENTS @ BANKS BRANCHES NATIONWIDE, BELOW,
UBA NIG. PLC,
A/C NAME: PISKOYE NIG. LTD.
A/C NOS.: 01150030003401,
And also,
FIRST BANK NIG. PLC,
A/C NAME: PISKOYE NIG. LTD.
A/C NO: 5152030002233
After Payment Send An SMS, “I Have Paid, Reserve My Vietnam Seat “stating, full names/phone/teller nos. & city of choice to 08025564948 or email to ultimatewealthmastermind@gmail.com.
Please come to venue with payment teller for registration!
FOR FURTHER ENQUIRIES:
Send SMS “I must attend, reserve my seat” stating full names, active phone/gsm numbers, city of choice, functional email address to 08025564948, 08078682111 and 08079909008
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Mr Pham Van Cong,The Head of Mission and Commercial Counsellor of Vietnam Trade Office in Nigeria,Mr Okoye O. Pius - Ceo, Piskoye Nig. Ltd, Mr Kingsley Chikezie,Sec. Gen., Importers Association of Nigeria And other members at a One day Importers Forum In Lagos.
Cross Section of Attendees Including Mr Pham Van Cong, Mr Okoye O. Pius at a One day Importers Forum organized by CBN's, Technical Committee on the Comprehensive Import supervision Scheme (CISS) in Lagos Nigeria