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Samson: Yuan payment allowed in Vietnam, China border areas
29th August, 2018
Chinese yuan will be allowed for payment in the border areas between Việt Nam and China.
The announcement was part of Circular No 19/2018/TT-NHNN, which will take effect from October 12 this year.
Besides the yuan, traders and residents in the border areas of Việt Nam and China, can also use Vietnamese đồng or fully convertible currencies, such as the US dollar, Euro or Yen, for payment of goods and services.
In addition to individuals, some other organisations will be subject to the new regulation. They include commercial banks and branches of foreign banks licensed to conduct foreign exchange transactions in Việt Nam; branches of banks located in border areas and border-gate economic zones of Việt Nam and China; organisations trading in duty-free goods; organisations providing services in isolated areas at international border gates; organisations engaged in bonded warehouses in border regions; the Việt Nam-China Border Gate Economic Zone; and other organisations and individuals conducting payment activities in Việt Nam-China border trade.
Payment can be made through banks or in cash in đồng or yuan, according to the circular.
Economic and trade co-operation between China and Việt Nam has become increasingly close in recent years, and there is huge demand and an increasing trend toward yuan settlement in Việt Nam.
Việt Nam has overtaken Malaysia to become the largest trade partner of China in the Association of Southeast Asian Nations (ASEAN). Total trade revenues between Việt Nam and China were estimated at US$66 billion in the first half of 2018, with the average monthly trade turnover between the two countries having exceeded $10 billion for the first time in history. LINK
Suzie: Ding Dong - Anyone home? Vietnam calling !!!!
Samson: Việt Nam’s FDI tops $24.35b in 8 months
30th August, 2018
Foreign direct investment (FDI) commitments in the first eight months totaled US$24.35 billion, up 4.2 per cent year-on-year, according to the Foreign Investment Agency (FIA).
During the reviewed period, FDI disbursement also saw a positive increase of 9.2 per cent to $11.25 billion, the FIA, which is under the Ministry of Planning and Investment, has said.
Up to 1,918 new projects were granted licences with total registered investment capital of $13.48 billion between January and August, up 0.2 per cent from the same period last year, while 736 operating projects were injected with an additional $5.58 billion, equivalent to 87.2 per cent of last year’s corresponding period.
Notably, overseas players spent $5.28 billion on acquiring shares in Vietnamese companies in the first eight months, shooting up 51 per cent year-on-year.
Among the largest-scale projects were the Japanese Sumitomo Corporation’s smart city project in Hà Nội’s Đông Anh District, capitalised at over $4.13 billion; a $1.2-billion polypropylene manufacturing plant, financed by South Korean Hyosung Corporation in Bà Rịa - Vũng Tàu and the Singapore-invested Laguna hospitality project with additional funds of $1.12 billion. Others included the $600-million Lotte Mall Hanoi project which will include a hotel, apartment, office, and trade centre complex and the LG Innotek Hải Phòng facility with additional capital of $501 million for manufacturing camera modules.
Manufacturing and processing remained the most appealing sector by attracting $10.72 billion in eight months, accounting for 44 per cent of the total investment inflow. It was followed by real estate trading with $5.9 billion (24.2 per cent) and retail and wholesale with $1.87 billion (8 per cent).
Japan continued to be Việt Nam’s leading source of foreign investment with $7 billion, making up nearly 30 per cent of the country’s total FDI. South Korea ranked second with $5.16 billion (21.2 per cent), while Singapore came next with $3.47 billion (14 per cent).
In the first eight months, the capital city lured the largest share of registered capital with $5.93 billion, or 24.4 per cent of total investment. It was followed by HCM City with $4.42 billion or 18.2 per cent of total investment and the southern province of Bà Ria - Vũng Tàu with $2.17 billion, accounting for 9 per cent of total investment.
From January-August, foreign-invested businesses gained a trade surplus of approximately $17.9 billion with exports topping $110.3 billion, 14 per cent higher than the same period last year, and imports hitting $90.8 billion, up 11.4 per cent on-year.
As of August 20, the country had 26,438 foreign-invested projects with total registered capital of $333.83 billion, and over half of the FDI had been disbursed, the agency noted.
During the eight-month period, Vietnamese businesses pumped $314 million into 115 projects aboard, statistics from FIA also revealed.
As much as $271 million was pumped into 93 new overseas projects, while the rest was earmarked for 22 existing ones.
As per the data, finance-banking attracted the most interest from Vietnamese investors, accounting for 34 per cent of their total investments, or $106 million.
Agro-forestry-fisheries came next with $64 million (20.3 per cent), followed by manufacturing and processing with $46 million (15 per cent).
Vietnamese businesses invested in 29 countries and territories. Among them, Laos lured the lion’s share of Vietnamese investments, with 31 per cent. Australia and Slovakia came second and third with 12 per cent and 11.4 per cent, respectively. Other countries included Cuba, Cambodia and Myanmar. LINK
Samson: Việt Nam’s trade surplus increases to $2.8 billion
30th August, 2018
Việt Nam’s trade surplus rose to US$2.8 billion in the first eight months of this year, the General Statistics Office (GSO) reported yesterday.
Total export value increased 14.5 per cent year-on-year to $155.4 billion during the first eight months. Of which, the domestic economic sector achieved a year-on-year surge of 17.4 per cent to $45.11 billion, while the foreign direct investment (FDI) sector gained $110.3 billion, an increase of 13.4 per cent.
The FDI sector had lower growth in export value against the domestic sector but it holds 71 per cent of total national export value, said a GSO expert.
Many key export products gained high growth in value during the first eight months. Export value rose 15.7 per cent to $30.9 billion for telephone and parts; and 14.2 per cent to $18.4 billion for electronic products, computer and their parts. It surged 26.9 per cent to $10.6 billion for machine, equipment and parts, and 9.6 per cent to $10.5 billion for footwear.
Meanwhile, Việt Nam saw strong growth for some farming products, including fruits and vegetables (up 14.8 per cent to $2.7 billion) and rice (up 23.6 per cent to $2.2 billion).
However, other commodities faced difficulty increasing export value due to falling global prices. Coffee exports fell 3.1 per cent in value to $2.5 billion, though they increased 14.8 per cent in volume while rubber fell 12.1 per cent in value to $1.2 billion but rose 7.9 per cent in volume. Pepper exports also dropped 35.7 per cent in value to $584 million while surging 4.7 per cent in volume.
Crude oil exports fell in both volume and value to 46.6 per cent and 24.6 per cent, respectively, compared with the same period last year.
The office said the growth of national import value was below that of export value.
The import figure rose 11.6 per cent year-on-year to $152.6 million. Of which, the domestic sector’s value reached $61.85 billion, up 11.8 per cent while the FDI sector stood at $90.81 billion, up 11.4 per cent.
Imports mainly served production of export products in the FDI sector. The country bought $26.9 billion of electronic products, computer and parts, up 13.7 per cent; $9.3 billion for telephone and parts, up 4.3 per cent; and $8.5 billion for cloth, up 16.1 per cent.
Some others for the domestic production had high growth, including steel (up 10.2 per cent to $6.7 billion), plastic (up 17.1 per cent to $5.8 billion), petrol and oil (up 26.4 per cent to $5.7 billion), metal products (up 35.9 per cent to $5.3 billion), and chemical products (up 26.3 per cent to $3.3 billion).
The office said in the first eight months, Việt Nam had a large trade surplus of $40 billion with the US and the EU, and a trade deficit of $37 billion with South Korea and China and $4 billion with ASEAN. LINK
Samson: Vietnam's GDP likely to surpass goal: PM
30th August, 2018
Việt Nam’s GDP this year is very likely to surpass the initial target of 6.7 per cent, said Prime Minister Nguyễn Xuân Phúc on Thursday morning.
Phúc opened the regular cabinet meeting with positive news about the country’s macro economy, saying that 12 out of 12 growth targets set by the National Assembly this year are due to be met, of which eight are likely to see better performance than expected.
Regarding the socio-economic development in August, the PM said that it was generally better than last month with inflation still under control.
The average consumer price index over the last eight months only increased by 3.52 per cent compared to that of the same period in 2017.
Việt Nam so far enjoys a trade surplus of US$2.8 billion, with 25 products having export volumes worth more than $1 billion.
Total registered foreign-related investment into Việt Nam as of August 20 reached more than $24.3 billion – an increase of 4.2 per cent over the same period last year.
More than 87,000 new enterprises were set up across the country so far this year while 21,000 enterprises resumed operations. LINK
Samson: Mitsubishi plans to make electric cars in Việt Nam
30th August, 2018
Japan’s Mitsubishi Corporation plans to invest in an electric automobile manufacturing factory in Việt Nam, said Executive Vice President Hiroshi Sakuma during a meeting with Vietnamese Deputy Prime Minister Vương Đình Huệ in Hà Nội on Wednesday.
At the meeting, Sakuma said his firm was evaluating the feasibility of the project and look forward to new regulations on environmental protection taxes to promote investment in the country.
Huệ said Việt Nam’s National Assembly would soon discuss and pass the Law on Environmental Protection Tax. There would be incentives commensurate with environmentally friendly products.
The Mitsubishi Corporation is currently investing in two BOT (Build-Operate-Transfer) projects in Việt Nam, namely the Vũng Áng 2 Thermal Power Plant (1,200 MW) and Vĩnh Tân 3 (1,980 MW) Power Plant.
The corporation and Việt Nam’s Ministry of Industry and Trade signed an investment agreement in early 2017, initiating the land lease contracts and purchasing power. In which, Mitsubishi expects the Vietnamese Government to soon resolve the ceiling limit for loans and tax incentives in order to put the project into operation soon, strengthening the electricity capacity of the Vietnamese grid.
Huệ asserted that power projects were important to Việt Nam. He highlighted Mitsubishi’s business investments in energy, infrastructure, trade and services.
He wanted Mitsubishi to complete the necessary work for the two parties to sign the implementation of Vũng Áng 2 and Vĩnh Tân 3 during the upcoming visit of Prime Minister Nguyễn Xuân Phúc to Japan in October this year. LINK
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