[Round-up] HCM City Gets OK for Administrative Decentralization, HSBC Upbeat on Vietnam’s Economy

Tuan Minh

16:42 07/09/2017

BizLIVE - Prime Minister Nguyen Xuan Phuc has agreed in principle with Ho Chi Minh City’s proposal on administrative decentralization to a maximum possible extent. HSBC believes Vietnam’s economy is well positioned for growth in international trade and will continue to experience high growth over the next three to five years.

[Round-up] HCM City Gets OK for Administrative Decentralization, HSBC Upbeat on Vietnam’s Economy

A view of the center of HCM City. Photo: Internet

HSBC Upbeat on Vietnam’s Economy
Vietnam’s economy is well positioned for growth in international trade and will continue to experience high growth over the next three to five years, Chief Executive Officer (CEO) of HSBC Vietnam Pham Hong Hai said at an HSBC Annual Business event.
“We are bullish for Vietnam’s economic growth in the short to medium term and cautiously optimistic for the long term as it is dependent on the progress of our economic reforms,” Hai was quoted by the Vietnam News Agency (VNA) as saying.
PM Gives Nod to Administrative Decentralization in HCM City
Prime Minister Nguyen Xuan Phuc agreed in principle with Ho Chi Minh City’s proposal on administrative decentralization to a maximum possible extent during a working session in Hanoi on September 6 with the Standing Board of the municipal Party Committee, VNA reported.
The PM said the government’s Party Committee supports administrative decentralization in the direction of allowing the city to undertake certain tasks of the government, ministries and central agencies relating to the approval of some kinds of projects and adjustment of several types of planning.
Industry 4.0 Demands Coordination: Deputy PM
At the Vietnam ICT Summit 2017 in Hanoi on Wednesday, Deputy Prime Minister Vu Duc Dam called on all society to co-ordinate to create momentum for the so-called fourth industrial revolution, or Industry 4.0, using new digital technologies.
To take advantage of Industry 4.0, Vietnam needs develop its broadband infrastructure, especially by popularizing 4G technology and developing 5G technology, Dam said.
HCM City to Miss Growth Target: Mayor
HCM City cannot achieve its growth target of 8.4 – 8.7% this year at the current rate, an official said a meeting of municipal authorities on Tuesday to review the socio-economic situation.
“In the first eight months of the year the [growth rate] was around 7.76% and we need a breakthrough in the remaining months to achieve the targeted 8.4 – 8.7%,” Chairman of the city People’s Committee Nguyen Thanh Phong said.
Vietnam Reopens Market to U.S. DDGS Exports
The U.S. Department of Agriculture and the Office of the U.S. Trade Representative announced that the government of Vietnam has notified the U.S. that it will resume imports of American distillers dried grains (DDGS).
In December 2016, Vietnam suspended imports of U.S. DDGS after reported detections of quarantine pests in U.S. shipments. Prior to the suspension, Vietnam was the third-largest market for U.S. DDGS, with exports valued at more than $230 million in 2016. The resolution of this issue also opens the way for corn and wheat shipments, which were restricted due to previous treatment requirements.
Vietnam Ministry Proposes Ethanol Import Tax Cut
The Ministry of Finance has proposed to lower import tax on bio-fuel ethanol from 20 to 17 percent so as to make E5 petrol cheaper as Vietnam plans to replace RON 92 petrol with E5 bio-fuel from the beginning of 2018, and with E10 after 2019.
The ministry has gathered suggestions on import tax imposed on bio-fuel ethanol to create E5 petrol as it is worried that the country will face ethanol shortage.
Goh Ban Huat Eyes Sanitaryware Expansion in Vietnam
Goh Ban Huat Bhd (GBH) is looking at expanding its sanitaryware business into the Vietnamese property market, said its executive director David Lai.
He added there are several Malaysian property developers with projects in Vietnam, whom the group can ride on.
Samsung Securities will partner with Caldera Pacific, a Hong Kong private equity fund, to acquire a combined 40% stake in Dragon Capital, the largest asset management company in Vietnam, Business Korea reported.
With such a stake, the two firms will become the second-largest shareholder in Dragon Capital where Caldera Pacific will step in as a general partner (GP) and Samsung Securities as a limited partner (LP).
Total outstanding in Ho Chi Minh City, Vietnam’s largest metropolis, reached 1,634 trillion dong ($71.9 billion) as of the end of August, growing 19.8% from the same period last year and 10.92% from December 2016.
Meanwhile, capital mobilization expanded 12.61% year-on-year to 1,890 trillion dong ($83.2 billion).
Remittance inflows via official channels into Ho Chi Minh City, Vietnam’s southern economic hub, reached $3 billion in the first eight months of this year, up 5% from a year earlier, although the Trump administration has tightened its immigration policy.
Of the sum, money sent from the United States accounted for 60% while that from Europe made up 19%, said Nguyen Hoang Minh, deputy director of the State Bank of Vietnam’s HCM City branch. These rates are unchanged from two months earlier.
Russian automobile company Sollers plans to set up an assembly plant in Vietnam in 2018, the company’s General Director Vadim Shvetsov told TASS on the sidelines of the Eastern Economic Forum.
"The launch (of the facility) is possible next year, not this year," Shvetsov said.

TUAN MINH