[Round-up] Legislators Say No to Debt Ceiling Raising, Far Eastern Expands in Vietnam

Tuan Minh

20:48 18/10/2016

BizLIVE - A large number of senior legislators have shown opposition to a government proposal to increase the government debt ceiling to 55% of GDP in the coming five years. Taiwan’s Far Eastern New Century has said Vietnam would be the best destination to diversify its manufacturing base from China.

[Round-up] Legislators Say No to Debt Ceiling Raising, Far Eastern Expands in Vietnam

A large number of senior legislators have shown opposition to a government proposal to increase the government debt ceiling to 55% of GDP in the coming five years.

Vietnam Posts $3.72 Billion Trade Surplus in Jan-Sep
Vietnam recorded a trade surplus of $1.16 billion in the second half of September, bringing the surplus to $3.72 billion in the first nine months of this year, according to the General Department of Vietnam Customs.
The country’s export turnover reached $128.58 billion in the nine-month period, increasing 7% from a year earlier, while imports edged up 0.9% to $124.86 billion.
Foreign Firms Earn $16.65 Billion Trade Surplus in Nine Months
Foreign-invested enterprises operating in Vietnam posted a trade surplus of $16.65 billion in the nine months through September, affirming their position as the main driver of Vietnam’s external trade balance.
Their exports increased 9.8% year-on-year to $89.93 billion in the period, accounting for 70% of the country’s total export revenue. They spent $73.82 billion on imports, rising 0.6% and making up 59% of the country’s import value.
Vietnam Expects Pricing of Vinamilk’s 9% Stake in November
Vietnam is expected to set in November the minimum price for the sale of a coveted 9% stake in dairy firm Vinamilk, its biggest listed company by market value, State Capital Investment Corp (SCIC) said Tuesday.
The news came after SCIC, which hold a nearly 45% stake in Vinamilk, said it had picked Morgan Stanley Asia, Saigon Securities Incorp and VinaCapital Corporate Finance Vietnam as advisers for the sale of the stake, worth about $830 million at the current market price.
Vietnam Gov’t Encounters Opposition to Raise Debt Ceiling
A large number of senior legislators have shown opposition to a government proposal to increase the government debt ceiling by five percentage points to 55% of GDP in the coming five years, amid concerns over national financial security.
“It’s necessary to maintain public debt thresholds like in the 2011-2015 period and tighten the management and use of loans,” said Nguyen Duc Hai, head of the National Assembly’s Finance and Budget Committee.
VIISA to Help Vietnamese Startups Grow
The Vietnam Innovative Startup Accelerator (VIISA) is set to kick-off its inaugural accelerator program next month, after launching on October 5, 2016.
VIISA aims to attract foreign and local entrepreneurs to build their startups in Vietnam. “We believe that VIISA can help entrepreneurs create value through innovative products and services for the emerging markets that can impact millions of people,” said Adrian Tan, program director of VIISA, in a report by e27.
Taiwan's Far Eastern New Century Expands in Vietnam
Taiwan’s leading textile maker Far Eastern New Century said on Monday that Vietnam would be the best destination to diversify its manufacturing base from China due to lower labor costs and tariffs in the Southeast Asian country.
“We cannot think of a market better than Vietnam to build our new manufacturing base,” said Eric Hu, president of Far Eastern New Century. “Vietnam offers cheap, quality labor, and it may also benefit from the Trans-Pacific Partnership,” said Hu.
Vietnam’s LED Lighting Market to Takes Off and Reach $348 Million in 2016
The latest analysis by LEDinside, a division of TrendForce, finds that Vietnam’s LED lighting market is projected to reach $348 million in 2016, up 28% from $271 million in 2015. The steady growth of the Vietnamese market has caught the attention of LED lighting companies worldwide.
“Furthermore, Vietnam’s income per capita has been rising in recent years. The country’s LED lighting demand has gradually shifted as well, from infrastructure projects to the residential lighting market. However, infrastructure projects are still the main generator of local demand for now,” said Roger Chu, research director of LEDinside.
PM, Long An Province Pledge Maximum Support for Investors
Prime Minister Nguyen Xuan Phuc and authorities of southern Long An province pledged all possible support for investors in the locality but asked them to respect their commitments, especially those relating to environment protection.
Addressing an investment promotion conference in the locality on October 17, the government leader asked the province to do all out in building an incorruptible administration to win businesses’ trust, the Vietnam News Agency (VNA) reported.
Vietnam Airlines Bans Galaxy Note7
Vietnam Airlines has banned transporting Samsung Galaxy Note7 phones on its flights, including carry-on luggage and shipments, the airline announced on October 17.
On September 11, the national flag carrier banned the smartphone, whose faulty battery has caused overheating and can explode, from checked baggage, according to VNA.
The Business Climate Index (BCI), which measures the confidence of European enterprises, in Vietnam climbed to 86 in the third quarter of this year, representing an increase of nine points from the previous quarter, the European Chamber of Commerce in Vietnam (EuroCham) has said.
According to the responses to the latest EuroCham BCI survey, 71.5% of the respondents described their current business situation as “excellent” and “good”. Only 5.5% classified the present state of the market as “not good”, while there were no responses describing it as “very poor.”
Vietnam spent $1.75 billion on importing 77,515 completely-built unit (CBU) automobiles in the nine months through September, down 17% in value and 7.3% in volume from the same period of 2015, according to customs data.
Cattle-breeding corporation Ushichan Farm Co., based in Japan’s in Ishinomaki, Miyagi Prefecture, will partner with a state-run Vietnamese company to begin raising about 5,000 beef cattle in Vietnam by the end of this year at the earliest, The Yomiuri Shimbun reported.
The Vietnamese partner, Saigon Agriculture Incorporation (SAGRI), will prepare a 500-hectare ranch, cattle barns and about 5,000 young cattle in Ho Chi Minh City.

TUAN MINH