Japan Giants Propose Ways to Better Vietnam Investment Policies
A delegation comprising Japanese large companies such as Mitsubishi, Sumitomo, Hitachi, Japan Airway, Fuji, Toyota, and Nippon has forwarded to the Vietnamese government some measures to improve the country’s investment climate.
The proposal targeted the sectors of infrastructure development, energy, electronics, aviation, transport, supporting industries and trade.
Japan Investors Keen on Transport Projects in Vietnam
A Japanese delegation led by Japan’s International Friendship Exchange Council (FEC) has worked with Vietnam’s Ministry of Transport to explore opportunities to invest in the Southeast Asian country’s transport infrastructure.
Japanese businesses also expressed interest in the shipbuilding industry, the colossal Long Thanh International Airport project and other projects funded by ODA.
NYK Turns NYK Line (Vietnam) Wholly-owned Subsidiary
Tokyo-based Nippon Yusen Kabushiki Kaisha (NYK) has acquired a 49% stake in NYK Line (Vietnam) Co. Ltd., a joint venture maritime transport agency, from Vietnam’s VOSA Group of Companies, making the firm its wholly-owned subsidiary.
Vietnam Finance Ministry Signs Deals to Borrow $3.2 Billion YTD
The Vietnamese Ministry of Finance has signed 34 accords with foreign creditors to borrow $3.2 billion and provided guarantees worth $1.44 billion for three projects in the year to October 26.
The government disbursed 72.26 trillion dong ($3.21 billion) worth of foreign loans, according to a finance ministry report.
Vietnam Should Devalue Dong by 2%-3% Yearly at Most: Economist
The Vietnamese central bank should weaken the USD/VND rate by 2%-3% at most per year, said Nguyen Duc Do, deputy head of the Economics-Finance Institute under the Academy of Finance.
The 5% weakening of the dong recently is excessive, Mr. Do said.
Japan Ranked 3rd among Top Foreign Investors in Vietnam
FDI approvals of fresh and operational implemented by Japanese investors totaled $1.48 billion in the first ten months of this year, making Japan the third-largest investor in Vietnam, after South Korea and Malaysia.
Japanese investors registered to invest $758.6 million in the manufacturing and processing sector in the period, making up 51% of their total investment. The construction sector came second with $354.4 million, followed by the real estate sector with $146.8 million.
Singapore’s Tanzanite International Steps in Vietnam Real Estate Market
Tanzanite International will pour between $400 million and $500 million to develop a high-end hospitality real estate project in the southern province of Ba Ria – Vung Tau, which is 1.5 hour drive from Ho Chi Minh City, in the upcoming four to five years.
The first phase of the project will cost $80 million and is scheduled for kick-start in the second quarter of 2016.
Vietnam May Hike OMO Rate by 50bps in Q3 2016: HSBC
HSBC has said in its latest report that fears of deflation in Vietnam are overblown although headline inflation was unchanged at 0% year-on-year in October. A large part of the slowdown in the CPI is due to declining energy prices, it said.
“For now, low inflation and a benign outlook for global energy prices should allow the central bank to keep rates steady. But as price pressures build up next year, we expect the State Bank of Vietnam to deliver a 50-basis-point hike in Q3 2016, taking the OMO rate to 5.5%, from 5.0% currently,” said the bank.
Vinamilk Proposes Scrapping Foreign Ownership Lid
Vietnam Dairy Products JSC (Vinamilk), the country’s largest milk producer, has put forward a proposal to scrap the foreign ownership limit (FOL), which is set at 49% currently, in it, arguing that milk is not a “sensitive” industry that needs state control.
The removal of the FOL will not necessarily mean the disappearance of the Vinamilk brand and foreign participation will help the brand reach out to the regional and global markets. In addition, lifting the FOL will create an easier access to foreign funding when needed, Vinamilk said.
Vietnam Public Debt to Mount to $120 Billion This Year
Vietnam’s public debt has been swelling 20% annually over the past five years and could mount to 2,700 trillion dong ($120 billion) by the end of this year, up from $110 billion at the end of 2014, said an official of the National Assembly’s Financial and Budgetary Committee said.