Vietnam Grants Tax Incentives to Nidec Projects
The Vietnamese government has granted corporate income tax rate of 10%, half of the general tax, for Nidec Corporation’s three investment projects in Saigon Hi-Tech Park, encouraging the Japanese firm to expand its operations here.
These subsidiaries include Nidec Vietnam Corporation, Nidec Sankyo Vietnam, and Nidec Servo Vietnam, among the five Nidec subsidiaries in Saigon Hi-Tech Park.
Nidec Corporation previously complained that its subsidiaries faced difficulties in determining the preferential corporate income tax due to different interpretations between corporation and state audit agencies, as well as between state agencies.
UK Fintech Firms Come to Vietnam for Partners
A group of seven leading UK financial technology services (Fintech) companies last week met with 50 Vietnamese firms in search of local partners in a “very fast developing market”, the Vietnam Investment Review cited a UK diplomat in Vietnam as saying.
The UK companies include Byoot Capital, Earthport, Korala Associates, PayPoint, The Floow, Misys International Financial Systems, and State Street Global Exchange.
Andrew Walden, head of International Business Development of PayPoint, said that Vietnam had an increasingly large consumer population, and strong cash payment habits. It was also ideal for developing digital payment solutions and digitizing cash payments.
QBE Insurance Appoints New General Director for Vietnam Office
Australian insurer QBE Insurance has appointed Anthony Cloney as general director for the firm’s Vietnam office, effective January 2016.
Prior to this appointment, Anthony Cloney was general manager of Technical and Distribution for QBE Vietnam. He has more than 30 years of insurance industry experience, including 23 years with QBE in various roles in Australia, Thailand, Indonesia, and Vietnam.
Murat Yuldashev has stepped down as general director of Techcombank, among mid-sized banks in Vietnam, after one year of assuming that position.
U.S.-trained Nguyen Le Quoc Anh has been appointed to the post.
Vietnam Expects Higher Consumer Prices in 2016
Vietnam’s consumer price index would rise at a faster pace than in 2015 due to a number of factors such as increases in tuition fees, healthcare services and minimum wages, said Do Thi Ngoc, deputy director of the Pricing Statistics Department under the General Statistics Office.
Besides, power prices are also set to increase this year as the rise in early 2015 was only 7.5%, the lowest level in a plan suggested by the Ministry of Industry and Trade, the official added.
Walmart to Support Vietnam Women-run Businesses
Walmart plans to give special priority to women-owned business suppliers in Vietnam to facilitate access to global supply chains, part of a program implemented worldwide by the giant US-owned firm, the company’s officials said.
During a conference held last Friday by the American Chamber of Commerce (AmCham) in HCM City, hundreds of Vietnamese female entrepreneurs met Walmart's representatives and American officials to seek opportunities to join global supply chains.
Vietnam Central Bank Puts Eyes on Property Loans
The State Bank of Vietnam (SBV), the country’s central bank, will closely watch real estate loans to prevent risks this year, the Vietnam News Agency reported, citing SBV Deputy Governor Nguyen Phuoc Thanh at a meeting in Ho Chi Minh City late last week.
Although credits grew positively with the majority of loans poured into production and business activities last year, many banks pumped too much capital into the real estate market.
According to the SBV’s Credit Department, outstanding loans in the real estate sector total about 360 trillion dong ($16 billion), a rise of 80% from the figure recorded three years ago.
U.S. Continues Anti-dumping Probe into Vietnam Steel
The U.S. International Trade Committee (ITC) has decided to continue its anti-dumping investigation into Circular Welded Carbon-Quality Steel Pipes (CWP) imported from Vietnam, Oman and UAE, according to the Vietnam Competition Authority under the Ministry of Industry and Trade.
Under the ITC’s preliminary determination in the case, it said investigations would continue because of indications that the import of CWP from these countries had threatened the American industry with prices that were lower than those in the U.S. market.
Ha Nam Province License Japan Firm’s Housing Project
Vietnam’s northern province of Hanoi on Monday licenses Japan’s Fuji Engineering Vietnam Co., Ltd to build houses and launch services for Japanese experts and laborers at Dong Van I Industrial Park in Duy Tien district.
Covering an area of 11,500 square meters, the three buildings will cost $10 million. The project will be developed in three phases, with the first to last until December this year.
VinaCapital Group, the largest fund management firm in Vietnam, is buying in local shares as the VN Index has slumped to a 13-month low, said Andy Ho, managing director and chief investment officer.
Mr. Andy Ho said he favored property and consumer companies as Vietnam’s economy will continue to expand despite the global downturn.
The benchmark VN Index lost 3.1% on Monday but rebounded 1.8% at the close on Tuesday.
Vietnam Ministry Prepares Various Crude Price Scenarios
Vietnam’s Ministry of Finance has developed models for different scenarios that consider the future consequences of oil price slumps to more flexibly manage the state budget in 2016, said Finance Minister Dinh Tien Dung.
The models were created to actively balance the state budget amidst fluctuations in oil prices, even if the price drops below $30 per barrel, the minister added.
A fuel price plunge would deliver a blow to the country’s state budget as the collection from crude oil, which contributes some 10% to the budget, would drop.
Brussels-based Solvay, a chemical and advanced materials company, is setting up a subsidiary in Ho Chi Minh City to strengthen its local business connections in Vietnam and tap into opportunities in in this fast-growing economy and neighboring countries.
The new Solvay Vietnam subsidiary will strategically connect local customers with Solvay’s businesses worldwide in markets including Home & Personal care, Automotive, Electronics, Agro-Food and Oil & Gas, Solvay has said in a press release.
Avery Dennison Retail Branding and Information Solutions (RBIS), a global leader in apparel and footwear industry solutions, on Monday put into operation a $30 million plant in Vietnam’s southern province of Long An, bringing its total investment in the Southeast Asian country to $40 billion.
The plant, which employs some 1,200 local laborers, will provide branding solutions for renowned brands operating in Vietnam such as Adidas, Nike and Puma, as well as local manufacturers.
A consortium of South Korea’s TaekWang and Saudi Arabia-incorporated Acwa Power and the Vietnamese Ministry of Industry and Trade on January 18 cut a deal to construct Nam Dinh 1 Thermal Power Plant in the northern province of Nam Dinh.
The plant, to be built under the Build-Operate-Transfer (BOT
) format, will have two turbines with a combined capacity of 1,200MW and have an investment of over $2 billion. It will consume coal provided by Vietnam National Coal - Mineral Industries Holding Corporation (Vinacomin).
Shares listed on Vietnam’s Hanoi and Hochiminh stock exchanges have lost a combined 113.33 trillion dong (roughly 5.05 billion) in market value in 11 trading sessions through January 18.
The benchmark VN Index has dropped 9.1% and the HNX Index has fallen 8.38% in the year to date.