Vietnam Economy Forum

[Battle of Bach Dang River]

But the high-speed train technologies of Japan and China are not similar.
In my opinion, the best is China lends money, then Japan will build high-speed trains for Vietnam.

 

[Zero_wing]

Good for you guys i hear that you also have a dam project with Japan?

 

[Viet]

Good for you guys i hear that you also have a dam project with Japan?

No, I am not aware of that...do you have any source?

 

[Battle of Bach Dang River]

Good for you guys i hear that you also have a dam project with Japan?

Not a dam, friend, maybe you want to talk about the project nuclear power plant No. 2 in Vietnam?
Beside the above project, Japan is supporting Vietnam very many infrastructure projects such as bridges, roads, building a Space Center in Vietnam...
All dam projects of hydropower today Vietnam can self-build..

 

[ViXuyen]

a big project.
why so expensive?it's about 3 times of CRH.

It's called "kick back".

Any project that involved ODA loan (with very low interest rate) is always several folds higher than direct cash payment upfront. Of course, the more expensive a particular project, the more % of kick back somebody is going to receive.

The Korean paid the French just $2 billion USD but they received the tech transfer to make high-speed rail. OTOH, Viet Nam was willing to spend $55 billion USD but receive NO tech transfer from Japan to manufacture high speed train due to the ODA bullshiet constraint that Viet Nam requested Japan to pay all the cost of $55 billion USD upfront.

 

[djsjs]

But the high-speed train technologies of Japan and China are not similar.
In my opinion, the best is China lends money, then Japan will build high-speed trains for Vietnam.

 

[Viet]

Vietnam has big trade deficit with Asia
Thứ sáu, 07 Tháng 9 2012 03:20

Vietnam's first-half trade with Asia, especially Southeast Asian countries and China, expanded a staggering 33 percent year-on-year to $61.7 billion but had a whopping trade deficit with Asia.

Vietnam Customs figures released on Wednesday show Vietnam's shipments to Asian countries amounted to $29.1 billion, up 40 percent from a year ago while its imports from those markets grew 30 percent to $39.8 billion. This left a trade deficit of $10.7 billion.

Two-way trade between Vietnam and its biggest trading partner China in the first half amounted to $15.7 billion, up 30 percent from a year earlier. The country's exports to China rose 60 percent to $4.6 billion but China remained the biggest exporter to Vietnam with total revenue of $11.1 billion, up 22.4 percent, resulting in a trade deficit of $6.5 billion.

Asean imports from Vietnam accounted for 30 percent of the country's total exports to Asia, at $6.55 billion, up 22 percent.

The first six months saw Vietnam shipping nearly two million tonnes of rice to Asean countries, down 14.7 percent, including Indonesia with 702,000 tonnes, the Philippines with 637,000 tonnes, and Malaysia with over 300,000 tonnes.

Vietnam imported $7.39 billion worth of gasoline, machines and equipments, plastic materials, computers, electronic equipments and others from Asean countries in January-June, according to Vietnam Customs.

Vietnam has big trade deficit with Asia

 

[Viet]

Samsung gets incentives green light
Ninh Kieu | vir.com.vn | Sep 24, 2012 09:06 am

Samsung Electronics, the globe’s largest mobile-phone maker, has officially gotten a nod from the Vietnamese government to enjoy peak incentives for its investment expansion in the country.

The Government Office just announced that “the government will continue granting highest incentives to the new investment project of Samsung Electronics if the project meets criteria and commitments like the Samsung Electronics Vietnam in Bac Ninh province.”

Kim Yong Seok, complex planning director of Samsung Electronics Vietnam, last week confirmed with VIR that Samsung had received a green light from the government to enjoy incentives. That means the firm will enjoy a 10 per cent corporate income tax for all products manufactured at the new factory instead of 25 per cent as commonly applied.

The announcement ended two years of negotiations between the South Korean firm and Vietnamese government about the incentives for Samsung’s investment expansion in Vietnam from $670 million to $1.5 billion to manufacture mobile-phones, cameras and other electronic products.

According to Vietnam’s Law on Enterprises, an investment expansion will not be granted incentives like a newly established project. But a Ministry of Planning and Investment source said Samsung would establish a new project, which could be built in a place two hours of driving from the existing factory in northern Bac Ninh province.

“The new factory could be built in Thai Nguyen province, Haiphong city or other places,” said Seok. He added Samsung had recently taken a tour to many provinces in the north for studying the investment location.

The Vietnamese government last year officially recognised Samsung Electronics Vietnam as a hi-tech firm, allowing the manufacturer to enjoy highest incentives with 10 per cent of corporate income tax for all products manufactured at its factory in Bac Ninh. But the government did not mention whether it would give incentives to Samsung Electronics’ investment expansion which was also proposed at the same time.

 

[Viet]

European countries recognize Vietnam’s market economy status
Last Updated: Friday, July 06, 2012 04:45:00 | Thanh Nien News

The European Free Trade Association (EFTA) has recognized Vietnam as a market economy this week and officially launched negotiations for a free trade agreement.

A memorandum of understanding was signed by the two sides Thursday.

Minister of Industry and Trade Vu Huy Hoang was quoted on the government’s website as saying that the fact that EFTA and 30 other countries in the world have recognized Vietnam as a market economy showed the international community’s recognition of the nation’s efforts to renovate its economy and integrate it into the world economy.

The new MoU is proof that Vietnam and EFTA have sufficient basis to boost economic and trade ties, Hoang added.

The European trade bloc, comprising Iceland, Liechtenstein, Norway and Switzerland, said in a statement on its website that total EFTA-Vietnam trade amounted to US$2.1 billion in 2011. It said that a free trade agreement will provide a strong framework for further development of bilateral trade and investment relations.

Vietnam also launched negotiations for a free trade agreement with the European Union late last month, becoming the third member of the Southeast Asian bloc ASEAN to start individual negotiations with the EU, after Singapore and Malaysia.

 

[Viet]

London to make capital with Hanoi
| vir.com.vn | Sep 24, 2012 09:24 am

On the occasion of his official working visit to Vietnam from September 22-26, Lord Mayor of the City of London David Wootton writes about the boosting of public-private partnership projects and financial cooperation between the city and Vietnam.

Vietnam is a natural partner for London and as I arrive in Hanoi this week I will be discussing how we can drive that partnership forward. I will be exploring how we can develop bilateral trade and investment opportunities and what can be done to make our shared aim of increasing two-way trade to $4 billion a reality.

My visit has three main focus points. Firstly, I will be encouraging Vietnamese companies to look at London as the ideal location to develop their business in Europe. Our capital markets provide deep pools of liquidity and a truly global investor base. This is supported by professional services that have substantial experience in assisting international firms to tap into European markets. Opportunities exist for listing on London’s stock exchanges which would further increases access to markets and potential investors.

London is a welcoming place for foreign companies. We are proud of our position as one of the most open of all the major economies. We host nearly 300 foreign banks, many languages and dialects are spoken. The UK is the largest centre in the world for cross-border banking, and we continue to welcome foreign investment with open arms. Our commitment to free trade and open markets has worked to our benefit and on this visit I will examine ways in which it can benefit the Vietnamese economy as well.

Secondly, I will be discussing how British companies and British expertise in public-private partnership (PPP) can make a vital contribution to the development of Vietnam’s infrastructure. Major infrastructure projects - from roads and ports through to power generation - offer an opportunity for the Vietnamese government to work alongside foreign investors such as those from the UK, if the conditions are right. It has been well documented that Vietnam would benefit greatly from new infrastructure projects. It has been estimated that Hanoi alone needs $10 billion investment in commuter infrastructure over the next four years. There is some progress being made and the announcement of the PPP pilot regulations in early 2011 was a step in the right direction, but more needs to be done.

Finding a way to finance such a huge project in a fiscally sustainable manner is both a challenge and a business opportunity. Governments cannot pay for these vast projects by themselves. They must find new ways to attract capital for infrastructure developments by entering into partnerships with providers of capital and construction companies and demonstrate a commitment to attracting businesses. The UK financial sector has much capital available for such projects and long experience of using public private partnerships to build, maintain and run infrastructure and services.

Finally, I will be sharing London’s experience of developing an international financial centre which is attractive to outside investors. Although financing infrastructure projects is of course important, it is also vital to create a suitable environment for implementation and delivery of projects.

The building blocks need to be there to ensure that money is spent in the most efficient way and that it actually delivers as promised. Companies investing in Vietnam want to see transparency in the bidding process for contracts, effective dispute resolution, and a stable policy and regulatory environment. It is important that a strong and predictable legal framework is in place to give companies and investors timely recourse to justice and efficient, trustworthy dispute resolution if things go awry. No chief executive officer or bank wants to devote resources or large sums of money to a project without confidence that they will be protected by law further down the line if necessary. Attractive projects are those which offer the right balance of risk and return.

Vietnam is at an exciting juncture in its development and its relationship with the UK is growing stronger. In 2013, we will mark 40 years of diplomatic relations between UK and Vietnam and, meanwhile, I look forward to exploring how we can best deploy the resources and skills of the City of London in support of Vietnam’s vital growth and development.

 

[Battle of Bach Dang River]

Stalled seaport underscores Vietnam's economic woes, state industries' mismanagement
By Mike Ives, The Associated Press | September 24, 2012

HANOI, Vietnam - All that remain of Vietnam's plan to build a major deep-water port are 114 exposed pilings trailing into the South China Sea and a barge full of rusty machinery.
Foreign investors stayed away from the $3.6 billion project and the indebted state-owned company overseeing it bungled the job. The government accused the company of "financial incompetence" and suspended the project this month. The prospects for ever reviving it are dim.
The abandoned port in southern Vietnam stands as a symbol of the inefficiency of the country's Communist rulers and the need to reform a massive web of state-owned enterprises weighing down a once-booming economy.
Critics say it also shows how provincial governments and state-owned companies are allowed to pursue expensive, misguided and often corruption-laced infrastructure projects that result in riches for the few, but not economic growth that would benefit the country of 87 million people.
The government is asking foreign and domestic investors to bankroll its flagship Van Phong port now that the Vietnam National Shipping Lines, or Vinalines, is out of the picture. But analysts say that's unlikely because the project, which was slated to have 37 wharves, isn't near any important manufacturing bases in the region and was impractical from the start.
A better option, they said, would be developing road and rail around ports in greater Ho Chi Minh City and also developing a deep-water port near the northern city of Hai Phong. A proposed large port near Hai Phong has spurred controversy lately over escalating costs and potential dredging problems.
Vu Tu Thanh, Vietnam representative for the Washington-based US-ASEAN Business Council, said Vietnam has lost the reputation it enjoyed a few years ago for being among the most attractive destinations for investment in Asia. Would-be investors, he said, want the government to push through large-scale economic reforms that will weed out the most inefficient state businesses.
"There's nothing inherently wrong about having state-owned enterprises involved in big, capital-intensive projects like ports," said Thanh, whose advocacy group represents American companies in Southeast Asia. "The problem is: Do you have the right SOE there?"
"The typical answer in Vietnam is: You don't."
Vietnam has a coastline of 3,200 kilometres (1,988 miles) — longer than American's west coast — and a prime location on the South China Sea, which includes some of the world's biggest shipping channels. But its lack of connected infrastructure puts its ports at a competitive disadvantage compared with long-established global trade hubs such as Singapore, Shanghai and Hong Kong.
As a result, manufacturers here are often forced to first send containers to those larger ports from where they are then shipped to Europe and North America.
Businessmen and observers say the port sector is a good example of how political patronage and entrenched corruption are undermining the country's development.
...

Stalled seaport underscores Vietnam's economic woes, state industries' mismanagement | CanadianBusiness.com

 

[Viet]

Trade surplus – a positive economic sign
Updated : 5:55 PM, 23/09/2012 | Voice of Vietnam

Vietnam enjoyed a trade surplus of US$134 million in the first eight months of this year, showing a healthy sign of national economic recovery.

The country has run a trade deficit for the past 27 years, except for 1992 when exports exceeded imports by just US$40 million. In the four years from 2007-2010, the annual trade deficit amounted to billions of US dollars, hitting a record high of US$18 billion in 2008.

For the first time in nearly 20 years the economy has shifted from a high, constant trade deficit to a trade surplus by August 2012. It was hoped that this target would be met by the end of this decade, but beyond expectations, it was achieved in the second year of the decade.

The shift is a milestone in national development, given the small amount of the surplus. It is worth remembering that Vietnam ran a deficit of US$6.57 billion in the first eight months of 2011, accounting for 10.5 percent of its exports.

The positive sign is attributed to impressive exports over eight months, totalling US$74.1 billion, or an average of US$9.26 billion per month. If this monthly figure is maintained until the end of this year, exports for all of 2012 will surpass the US$110 billion mark, the highest amount Vietnam has ever achieved.

According to the Vietnam General Department of Customs, eight-month exports rose 19 percent year on year, with cameras and accessories increasing 241 percent, phones and accessories 136 percent, computers and electronics 83.8 percent, fertilisers 68.6 percent, plastics 64 percent, electrical cables and wires 49.3 percent, vehicles and equipment 47.6 percent, and cassava 43 percent.

Sixteen products earned an export value of more than US$1 billion each. Garments took the lead with US$9.8 billion, followed by phones and accessories US$7.4 billion, crude oil US$5.5 billion, computers, electronics and accessories US$4.8 billion, footwear US$4.8 billion, seafood US$4 billion, machinery and other equipment US$3.7 billion, vehicles and equipment US$3 billion, wood products US$3 billion, coffee US$2.7 billion, and rice US$2.5 billion.

The high value was mainly generated from an increase in export volume rather than prices as in previous years. Most notably, cassava exports increased 67.5 percent in volume, fertilizer 61.8 percent, plastics 61.5 percent, rubber 35 percent, coffee 30.7 percent and cashew nuts 29.7 percent.

The US topped the list of importing countries, consuming nearly US$13 billion worth of Vietnamese goods. It was followed by Japan with nearly US$8.7 billion, China nearly US$8.4 billion, the Republic of Korea US$3.5 billion, Malaysia nearly US$2.9 billion, Germany over US$2.6 billion, Hong Kong around US$2.2 billion, and Cambodia US$1.9 billion.

Imports for the eight months fetched US$73.96 billion, a year-on-year increase of 7.5 percent, which is lower than last year’s import growth. However, the low import growth clearly demonstrates that business production has been scaled down.

Vietnam enjoyed a trade surplus with 53 markets, with the US taking the lead (US$9.7 billion). It was followed by Hong Kong (US$1.6 billion), Cambodia (US$1.52 billion), the UK (US$1.5 billion), Germany (US$1.1 billion), the United Arab Emirates (US$1.06 billion), and Japan (US$1.04 billion).

It faced a trade deficit with China (US$9.92 billion), the Republic of Korea (US$6.47 billion), Taiwan (US$4.28 billion), Singapore (US$3 billion) and Thailand (US$2.16 billion).

However, difficulties still lie ahead. Exports rely heavily on manufacturing contracts, support industries are developing slowly, and temporary imports and re-exports are managed too loosely.

Exports are forecast to remain unchanged from now until the end of this year while imports are increasing in both volume and price. Proper adjustments to imports and exports are needed to maintain the trade surplus for the whole year.
Trade surplus

 

[Viet]

Vietnam's Economic Growth Accelerates
September 27, 2012, 7:45 a.m. ET | The Wall Street Journal

HANOI—Vietnam's economic growth continued to rebound in the third quarter, as government efforts to revive the economy bear fruit. But authorities will face a delicate task in coming months to maintain robust growth without letting inflation get out of hand.

Vietnam's gross domestic product rose 5.4% in the third quarter, up from 4.7% growth in the second quarter and 4% in the first quarter, the General Statistics Office said on Thursday.

After spending much of 2011 battling high inflation and trade imbalances, the government has taken steps this year to boost growth, such as lowering banks' lending rates and reducing corporate income tax for some businesses.

However, prices in Vietnam have begun rising again, a setback after a series of rate increases had succeeded in curbing runaway inflation. A report earlier this week showed the consumer-price index rose 2.2% in September from the previous month, the fastest pace in 16 months.

The banking system recently has been beset with bad loans and scandals, but economist Le Tham Duong of Ho Chi Minh City Banking University noted that lending has been rising, a sign that companies are expanding operations and production. He warned that bank loans need to be funnelled to projects that add value to the economy, or the expansion in credit will merely fan inflation.

The government said in a statement Thursday that the inflation issue is "complicated" and will be difficult to tame. It said all ministries and localities must continue pursuing the goal of controlling inflation and stabilizing the economy for the rest of the year.

"I think the central bank will keep its policy rates stable until the end of the year, as keeping inflation under control is still one of the government's key tasks for the year," Mr. Duong said.

In contrast, ANZ said in a report Thursday that it expects the State Bank of Vietnam to cut policy rates by another one percentage point in the fourth quarter. The central bank has cut its policy rates by five percentage points this year. Its refinance rate, the rate at which it lends to other banks, currently stands at 10%.

"The latest economic data makes monetary policy decisions more difficult in the months ahead. Spurring bank lending can rejuvenate growth, but this may aggravate an already shifting inflation path," ANZ said.

The government is targeting GDP growth of 6% to 6.5% for this year, but Prime Minister Nguyen Tan Dung earlier this month said he expects growth of 5.5%. The country's GDP growth averaged 7.2% over the past 10 years, and was 5.9% in 2011.

The statistics office said Thursday that GDP grew 4.7% in the January-September period compared with a year earlier. (Vietnam often issues economic data before the end of the reporting period.)

Other economic reports released on Thursday showed Vietnam's industrial production index rose 9.7% in September from a year earlier, up from August's 4.4% rise and its most robust gain since February. Retail sales of goods and services in the first nine months of the year rose 17% from a year earlier. The country posted a trade surplus of $34 million in the January-September period, compared with a deficit of nearly $8.16 billion a year earlier, the statistics office said.

Write to Vu Trong Khanh at trong-khanh.vu@dowjones.com
Vietnam's Economic Growth Accelerates - WSJ.com

 

[Viet]

FDI reaches $9.5 billion in nine months
| VOV | Sep 27, 2012 09:52 am

Vietnam has attracted $9.52 billion in registered FDI during the past nine months, or 72 per cent of the figure recorded a year ago.

The figures were released by the Ministry of Planning and Investment's Foreign Investment Agency (FIA).
In September alone, FDI businesses poured more than $1 billion into the country, the FIA reported.
The processing and manufacturing industries took the lead in terms of newly and additionally registered FDI capital of $6.24 billion, accounting for 65.5 per cent of the total FDI.
Real estate ranked second, attracting $2 billion with eight projects.
The retail and communications sectors came in the third with a total of $400 million.

Japan remains the country's leading source of foreign investment, recording a total registered capital of $4.7 billion. Samoa and the Republic of Korea ranked second and third respectively.

Nine-month FDI disbursement hit nearly $8.1 million, including $820 million in September alone.

http://www.vir.com.vn/news/top-news/fdi-reaches-$95-billion-in-nine-months.html

 

[Viet]

Rice output to hit 43 mln tonnes in 2012
| VIR/VNA | Sep 28, 2012 16:05 pm

Vietnam’s rice output is expected to surpass 43 million tonnes in 2012, an increase of 1 million tonnes or 2.6 per cent over the previous year.

According to the Ministry of Agriculture and Rural Development, this year, the country’s total rice area reaches 7.75 million ha, a 1.2 per cent rise against 2011.

At present, northern provinces are focusing on taking care of their summer-autumn crops while southern localities are speeding up the harvest of summer-autumn rice and the growing of autumn-winter crop.

By September 15, the country had planted nearly 1.52 million ha of autumn-winter rice, 91.3 per cent of the same period last year.

Vietnam Investment Review - Business - Rice output to hit 43 mln tonnes in 2012