[Round-up] Vietnam Has Huge Franchising Potential, $445 Million Trade Deficit Recorded in October

Tuan Minh

23:39 16/11/2016

BizLIVE - Vietnam has become an increasingly attractive destination for many international franchising and retail businesses. The country recorded a trade gap of $444.88 million in October, after three consecutive months of surplus.

[Round-up] Vietnam Has Huge Franchising Potential, $445 Million Trade Deficit Recorded in October

Vietnam recorded a trade gap of $444.88 million in October, after three consecutive months of surplus.

Top Legislator Orders Measures to Tackle Environmental Pollution
Chairwoman of the National Assembly Nguyen Thi Kim Ngan requested the Ministry of Natural Resources and Environment to put forth effective measures to address environmental pollution, during the Q&A session of the 14th parliament’s ongoing second session in Hanoi on November 16.
The top legislator asked the minister to monitor the environmental pollutants and address the consequences caused by the Formosa project to stabilize life of inhabitants in the affected areas, according to the Vietnam News Agency (VNA).
Vietnam Has Huge Franchising Potential
With its high economic growth rate and a population of over 90 million, 60% of whom are young consumers, Vietnam has become an increasingly attractive destination for many international franchising and retail businesses, VNA reported.
Many have come already, Yvonne Chan, deputy consul-general (commercial) and senior trade commissioner at the Australian Trade and Investment Commission, told a seminar in HCM City on November 15.
Turkey Imposes AD Duty on Vietnam Polyester Yarn
The Turkey Ministry of Economy’s General Directorate of Imports has issued the final decision on anti-dumping investigation into polyester textured yarn imported from some countries, including Vietnam.
Vietnam’s polyester textured yarn products will be imposed an AD tax rate of between 34.81% and 72.56%, according to the Ministry of Industry and Trade.
Vietnam Revokes Licenses of Many Multi-level Marketing Firms
The Vietnam Competition Authority under the Ministry of Industry and Trade has revoked the licenses of 14 multi-level marketing firms and forced 11 others to halt business until November.
The authority, under the Ministry of Trade and Industry, reported that at present, there were 42 multi-level marketing firms that were trading nationwide, a decrease of 25 since 2015.
U.S.’s Riverside City, Can Tho Seek Partnerships
Authorities in the Mekong Delta city of Can Tho on November 15 discussed investment and trade cooperation with William Bailey III, visiting mayor of Can Tho’s twin U.S. city Riverside, VNA reported.
At the working session, Nguyen Minh Toai, director of the municipal Industry and Trade Department, proposed that companies from the two localities should ramp up joint projects in a numbers of sectors, including logistics, rice production and trade, fisheries, garment and pharmacy.
Vietnam Posts $445 Million Trade Deficit in October
Vietnam recorded a trade gap of $444.88 million in October, causing the trade surplus to narrow to $3.25 billion in the first ten months of this year, data of the General Department of Vietnam Customs showed.
The country’s export revenue increased 7% year-on-year to $143.9 billion in the ten-month period, while imports grew 2.2% to $140.65 billion.
Foreign Firms in Vietnam Report $17.6 Billion Trade Surplus in Jan-Oct
Foreign-invested enterprises in Vietnam posted a trade surplus of $17.6 billion in the ten months through October, customs data showed.
They raked in $100.88 billion from exports in the period, up 10% from a year earlier, while spending $83.28 billion on imports, up 2%.
Thai retail giant Central Group has announced a new business plan under which it targets to double the number of supermarkets in Vietnam to around 70 and develop commercial complexes from now to 2021.
The Thai firm plans to spend $30 million to turn 13 current outlets into commercial complexes in the next five years, aiming to double the leasing floor space from 470,000 square meters presently.
Vietnam is likely to incur, on average, 30.2 trillion dong ($1.4 billion) every year in physical damages due to floods, typhoons and earthquakes, according to the catastrophe risk model, presented at a World Bank-held workshop on disaster risk finance and insurance.
Sweden-based food processing and packaging company Tetra Pak has announced it will pour $110 million into a new plant near Ho Chi Minh City, aiming to tap growing demand of food processors across the Asia-Pacific region.
The new plant, which is scheduled to start operation in early 2019, will be Tetra Pak's fourth one in the region. The company already runs similar factories in Japan, Singapore and India.
An improving macroeconomic environment with a stable currency and benign inflation should counteract structural systemic weaknesses of Vietnamese banks, which supports the stable outlook for the sector in 2017, Fitch Ratings has said in its latest report.
Fitch expects asset quality and funding and liquidity to remain steady as the economy grows steadily. However, structural systemic weaknesses remain, such as thin capital buffers, a large non-performing loan (NPL) stock and weak profitability.
Indian companies have advanced interest in participating in energy saving projects in Vietnam, which has huge demand for replacing inefficient power-consuming devices, the Dau Tu (Investment) newspaper reported, citing a recent workshop held in Ho Chi Minh City.
Adesh Saxena, a representative from state-run Energy Efficiency Services Ltd. (EESL), expressed willingness to share information on energy saving initiatives and keenness to invest in Vietnam.

TUAN MINH