Tran Dai Quang Re-elected as President
Tran Dai Quang was re-elected as President of Vietnam for the 2016-2021 tenure during a plenum of the 14th National Assembly (NA)’s first session on July 25.
Among 487 of the 494 NA deputies present at the plenary session, 485 lawmakers, or 98.18% of the total legislators, agreed to choose him for the presidency by secret ballot, the Vietnam News Agency (VNA) reported.
Taihan Electric Wire Acquired 100% Stake in Its Vietnamese Joint Venture
Taihan Electric Wire has acquired a complete ownership of Taihan Sacom Cable (TSC) in Vietnam, its joint venture established in 2005, to step up its efforts to expand market share overseas.
The company announced on July 22 that it has taken the remaining 30 percent stake in TSC from its partner to become its sole shareholder. TSC has been renamed as Taihan Cable Vina (TCV), with Taihan Electric Wire CEO Choi Jin-yong taking the chairmanship of the Vietnamese affiliate.
HCM City Weighs Logistics Industry Master Plan
Authorities and experts in HCM City are considering a master plan to comprehensively develop the logistics industry that fully utilizes the city’s advantages and meet both urgent and long-term requirements in the context of the country’s global integration.
The plan is expected to be based on a logistics development plan outlined by experts from ministries and agencies, over six years ago for 2010-2020.
Vietnam’s July CPI Hits 4-year Low
Vietnam’s July consumer price index (CPI) rose 0.13% from June, marking the lowest rate for the same month since 2012, according to the General Statistics Office (GSO) reported on July 24.
Core inflation (the CPI without food and fresh foodstuff, energy and state-controlled commodities such as healthcare and education services) in the month increased 0.1% month-on-month and 1.85% year-on-year. The seven-month core CPI rose 1.81% from the same period last year.
Vietnam Mulls Removing Part of Lee&Man’s $1.2 Billion Paper Mill
The Ministry of Industry and Trade has proposed that the government scrap a Hong Kong-invested pulp plant in the Mekong Delta province of Hau Giang, citing potential threats to the environment, local media has reported.
Part of a $1.2-billion paper mill complex developed by Lee & Man Paper Manufacturing Limited, the troubled plant has recently come under suspicion of harming the environment and complaints of locals.
South Korean Firm Opens Plant, Research Center in Bac Ninh
South Korea’s Samil CTS Vina Co., Ltd, which specializes in producing computers and computer peripherals, inaugurated a plant and a research and development (R&D) center in Yen Phong industrial park, northern Bac Ninh province on July 22.
Vietnam Delays $3 Billion Int’l Bond Sales Plan
Vietnam has postponed a $3-billion international bond issuance plan due to unfavorable conditions in the global finance and monetary market, the finance ministry said.
The global finance and monetary market has continued to remain in a state of flux since the end of last year, with the period witnessing several unfavorable developments such as United States’ Treasury bond rise, China’s yuan devaluation and the Brexit vote.
Interest Rate Set to Remain Stable: SBV
The interest rate will continue to be stable over the remaining months of the year, said Deputy Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong, amid concerns about an interest rate hike coming soon.
Though deposit interest rates increased slightly in the first months of the year, the lending interest rate remained relatively stable, Hong said.
Merger and acquisition (M&a
mp;A) deals in Vietnam are expected to total $6 billion this year, breaking a record of $5.2 billion set in 2012, as the ongoing economic reform will open up opportunities for investors, according to researchers of the Vietnam M&A Forum (MAF).
M&A transactions hit $3 billion in the first six months of this year, increasing 28% from a year earlier, the Dau Tu (Investment) newspaper reported.
South Korean conglomerate such as Samsung
and LG are concerned that Vietnam’s minimum wage hike plan will weigh on their operations and may consider moving their production bases to other countries with lower labor costs, The Korea Herald reported.
“There are over 4,000 Korean companies doing business in Vietnam. A sharp wage hike will drop profitability, especially in labor-intensive industries,” said Im Choong-hyun, head of Korea Chamber of Commerce and Industry Vietnam office.
The Vietnamese Ministry of Natural Resources and Environment has established a special team to closely monitor operations of a steel producing plant run by Formosa Ha Tinh Steel Corporation (FHS) within three years, local media reported.
Vietnam had 37.49 trillion dong ($1.67 billion) worth of real estate in stock as of the end of June, dropping by 26.33% from end-2015 and nearly a half from December 2014, according to the Ministry of Construction.
Bank of India (BOI) last weekend opened its first branch in Vietnam, becoming the first Indian bank to make such a move in the Southeast Asian country, according to Ho Chi Minh City’s portal.
The branch, the 61th overseas one of BOI, is located in the center of Ho Chi Minh City and has a paid-up capital of $15 million. Its license will expire in 99 years.