[Round-up] Japanese Businesses Eye Expansion in Vietnam, JX to Buy into Petrolimex

Tuan Minh

07:58 25/02/2016

BizLIVE - Over 60% of Japanese businesses operating in Vietnam plan to expand their operations in the Southeast Asian country. JX Nippon Oil & Energy buy a roughly 10% stake in Petrolimex.

[Round-up] Japanese Businesses Eye Expansion in Vietnam, JX to Buy into Petrolimex

Over 60% of Japanese businesses operating in Vietnam plan to expand their operations in the Southeast Asian country.

60% of Japanese Businesses Eye Expansion in Vietnam
Over 60% of Japanese businesses operating in Vietnam plan to expand their operations as the Southeast Asian country is a crucial investment destination, according to a survey conducted by the Japan External Trade Organization (Jetro) released in Hanoi on Tuesday.
The finding was part of Jetro’s 2015 survey on the business operations of Japanese-affiliated firms in 20 countries and regions in Asia and Oceania.
Atsusuke Kawada, chief representative of the Jetro in Viet Nam, said that the percentage of respondents in Vietnam planning to expand operations was rather high compared to other countries in the region such as Indonesia, Thailand, the Philippines, China, and Malaysia.
EU Court Rules on Anti-Dumping Law
The Court of Justice of the European Union declared partially invalid an anti-dumping regulation on certain leather footwear imports in the EU from China and Vietnam, according to the Vietnam News Agency.
It said the Council of the EU and EU Commission did not comply with certain procedural rules when the regulation was adopted.
On October 5, 2006, the Council of the EU adopted a regulation imposing an anti-dumping duty on certain leather footwear imported from China and Vietnam into the EU. The rate of the anti-dumping duty was set at 10% for footwear manufactured by companies established in Vietnam.
Turkey Imposes AD Duty on Vietnam Granite
Turkey has issued the final decision on the investigation into the evasion of anti-dumping (AD) tax on granite imported from Vietnam.
Accordingly, the Turkish Ministry of Economy will impose an import tax of $174 per metric ton on Vietnamese granite, the Vietnam Competition Authority under the Ministry of Industry and Trade announced on February 23.
The tax was previously intended for Chinese granite only, but suspicious actions by Vietnamese exporters led to further inspection by Turkish authorities.
Real Estate Price to Peak in 2016: CBRE
The price growth rate of real estate will hit its peak in 2016, according to the Vietnam Market Outlook released recently by CB Richard Ellis Vietnam Co. Ltd. (CBRE).
Real estate leasing has enjoyed good growth in both value and across segments. Positive impacts such as signed trade agreements and low-labor costs are showing auspicious influences on foreign investment inflow to the country.
State-run energy firm PetroVietnam has asked for tax incentives for the country’s sole operating oil refinery Dung Quat, arguing that the latter’s products cannot compete with imports.
Tariffs on diesel and jet fuel A-1 imports have been cut by a half to 10% since the start of this year under a regional agreement, while the tax on crude oil remains at 20%. Dung Quat still relies on imported crude to produce its main products.
Vietsovpetro, a joint Russian-Vietnamese firm for oil and gas exploration, is currently cash-strapped and is mulling ceasing pumping from some of its wells and fields as the oil remain bearish, the Nang Luong Moi (New Energy) newspaper cited General Director Tu Thanh Nghia as saying.
“[We] should close drilling platforms and well that have too high operating costs or break-even points. [We] shouldn’t attach importance to the output because some oil flows cost us too much,” he said.
The Vietnamese government has issued a decision clearing overseas experts working for foreign non-governmental organization (NGO)-funded projects/programs from personal income tax (PIT) exemption.
To get exempted from PIT, a foreign expert must have a contract signed with the overseas NGO that directly carries out the program/project, and terms of reference (TOR), according to the decision.
Vietnam will need to grow annually by at least 7% to become an upper-middle-income economy by 2035, World Bank (WB) Group President Jim Yong Kim said, citing the WB’s “Vietnam 2035” report.
“It is important to establish a more efficient and competitive private sector - this is the driving force behind job creation, innovation, and increased levels of productivity,” Mr. Kim stressed.
Vietnam’s consumer price index (CPI), a measure of inflation, has climbed 0.42% month-on-month in February, which coincided with the long Lunar New Year (Tet) festival, according to data of the General Statistics Office (GSO).
The rise in the index was driven by shooting domestic demand during the biggest festivity of the year despite the continued downtrend of oil prices.
JX Nippon Oil & Energy will pay around 20 billion yen ($177 million) to buy a roughly 10% stake in Vietnam National Petroleum Group (Petrolimex), which sells more than half of oil products in the country, Nikkei reported.
The two parties have been in exclusive negotiations on a business tie-up since December 2014.