January-August FDI approvals surge 30.4%

An employee of Honda Vietnam is at work at the company’s motorcycle factory in northern Vietnam. According to FIA, foreign investors   have pledged a total of US$4.5 billion for fresh and operational projects in August - PHOTO: QUOC HUNG

Quoc Hung According to the Foreign Investment Agency (FIA), foreign investors have registered a total of US$4.5 billion for fresh and operational projects this month, accounting for half of the FDI approvals in seven previous months and growing considerably against last year’s same period. The August figure has brought total FDI pledges for both fresh and operational projects in the first eight months to US$13.33 billion, up a staggering 30.4% against the year-earlier period. Of which, 1,220 new projects make up US$7.87 billion, up 8.7% year-on-year, while nearly 390 exisiting projects account for US$5.46 billion, surging 82.8% versus a year ago. The strong increase in FDI approvals is credited to US$3 billion registered by Samsung Display Vietnam for a project to manufacture, assemble and outsource high-definition screens at Yen Phong 1 Industrial Zone in the northern province of Bac Ninh. The project whose investment certificate was granted on August 6 is the biggest … [Read more...]

Vinh Phuc Making Efforts to Further Attract FDI

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Identifying industry as the spearhead and developing transport infrastructure of industrial parks to attract investment, Vinh Phuc province, over the past time, has achieved initial success. The province has started to develop transport infrastructure in the direction of modernisation and synchronisation with industrial parks and industrial clusters. Along with that are more flexible and open mechanisms and policies to attract investment. Vinh Phuc has attracted the attention of investors and become the highlight of investment in recent time. According to the report by the Department of Planning and Investment, by the end of June 2015, Vinh Phuc province had attracted 785 projects, including 193 FDI projects with the total investment capital of over US$3 billion and 592 DDI projects with the total investment capital of VND43 trillion. Vinh Phuc has synchronously enhanced the quality of human resources, carried out administrative reform, issued several preferential policies, supported … [Read more...]

Honda Vietnam to recall over 21,000 cars

Le Hoang The company said the vehicles with such an airbag defect and assembled at its factory in the northern province of Vinh Phuc include Civic cars made from 2006 to 2011 and CR-V cars in 2008-2011. The total volume also consists of 10 imported autos including 2005-2008 Civic units and 2008 CR-V cars. The cause was identified as the overpressure of the driver-side and side airbag inflators which could lead to malfunction of airbags upon collision. The root cause of the overpressure is still under investigation. Honda Vietnam said it has not got any complaints from customers regarding the defect so far, and added that the error may occur with a certain number rather than all of the 21,171 Civic and CR-V cars sold on the domestic market. However, the company decided to implement the free-of-charge check and replacement of airbags for the aforementioned vehicles. The campaign will take place at all authorized Honda dealerships nationwide and owners of the cars will be … [Read more...]

Honda Vietnam to recall more than 21,000 cars

Honda Viet Nam is recalling 21,181 Civic and CR-V units (Source: Internet)

Honda Vietnam is recalling 21,181 Civic and CR-V units to check and replace faulty airbags. The Civic units were produced between 2006 and 2011 and the CR-V units were produced between 2008 and 2011 by Honda manufacturers in the northern province of Vinh Phuc. Only 10 imported cars will be recalled, including Civic units produced from 2005 to 2008 and CR-V units produced in 2008. Honda said overvoltage had contributed to the malfunction of the airbags in the driver's seat and the passenger seat. The fault will be repaired in these cases. Honda said no accident related to this faulty airbags has been reported so far. The firm will inspect and replace the airbags in the affected vehicles at no cost. The vehicles' distributors will contact customers to set appointments for the replacement work. The recall work will start on November 20. … [Read more...]

Auto firms post strong profit growth as demand soars

Le Hoang Customers inspect a passenger car model introduced by Thaco - PHOTO: QUOC HUNG Truong Hai Auto Corporation (Thaco) reported its consolidated revenue of VND18.8 trillion in the first half of this year, up 88% against the same period a year earlier, and after-tax profit of VND3.2 trillion. Thaco credited the surging revenue to nearly 34,600 autos sold in January-June, up a staggering 93% year-on-year. An expert in the auto sector said profit of auto firms is mainly generated from car sales while revenue of spare parts and repair services only helps maintain operations of showrooms or supply after-sales services. Auto firms normally set a profit margin of no lower than 10% of a car’s price. Therefore, if there is no income besides car sales, Thaco earned average profit of up to VND92.7 million from a car it sold in the first six months of this year. TMT Motor Corporation obtained net revenue of VND1.95 trillion in the six-month period, four times higher than last … [Read more...]

Ha Nam: Priority on Formation of Favourable Investment and Business Environment

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In 2014, Ha Nam granted investment licences to 35 companies, mainly from Japan and South Korea, with a total investment capital of US$320 million. 44 companies reported completing investment processes and beginning commercial operation, contributing to the province’s economic growth of 13.15 percent. With the aim of creating the most favourable conditions for investors, Ha Nam is considered a "good land" for domestic and foreign investors to do business. To learn more about investment attraction results as well as solutions to draw more investment capital, Vietnam Business Forum interviewed Mr Nguyen Van Oang, Director of the Department of Planning and Investment of Ha Nam.How do you assess the outstanding investment attraction results and project investment implementation in Ha Nam in recent years? In the first six months of 2015, Ha Nam province licensed 33 new investment projects, including 19 FDI projects and 14 domestic investment projects, with a total registered … [Read more...]

Breakfast @ Tuoi Tre News – June 30

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What you need to know in Vietnam today: Politics -- Prime Minister Nguyen Tan Dung yesterday chaired a tele-conference with provincial authorities and urged them to focus on increasing the effectiveness of the tourist industry. Society -- Ho Chi Minh City will invest VND3.4 trillion (US$156.3 million) in building infrastructure on Thu Thiem Peninsula in District 2. -- Investigative police of the Central Highlands province Dak Nong yesterday summoned five men suspected of throwing stones at buses plying on a local highway and injuring a driver. Business -- Honda Vietnam has paid VND297 billion ($13.7 million) in tax arrears for the second half of 2012, according to the tax department of the northern province of Vinh Phuc where the motorbike manufacturer places its factories. -- Eight antenna towers of national broadcaster Vietnam Television and other provincial TV stations, each over 100m in height, have been found failing to meet construction standards, according to the … [Read more...]

Pupils join traffic safety program

On June 3rd, in Cam Pha city, the northern province of Quang Ninh, the National Traffic Safety Committee (NTSC) launched a traffic safety program for pupils and their parents during the summer festival.  According to NTSC Vice President Khuat Viet Hung, the program aims to raise understanding and awareness of obeying traffic safety laws among pupils and parents, disseminate skills in safely controlling vehicles, helping to minimise traffic accidents involving school aged youngsters, especially during summer.  On this occasion, Honda Vietnam awarded 1,000 helmets for pupils in Le Hong Phong primary school and worked with the FPT Company to give 1,000 others to pupils and residents on Co To island. In addition, the search and rescue centre under the Vietnam Maritime Administration presented 100 lifebuoys and other medical equipment for fishermen on Co To island.  The program will continue across the country.      NTSC Vice President Khuat Viet Hung launches the program.      Pupils in Le Hong Phong primary school at the launching ceremony.      Quang Ninh provincial leaders present helmets for schools.       Mr Khuat Viet Hung awards presents for a pupil who won a special prize in  a traffic safety competition.      Honda Vietnam staff gives instructions on how to properly wear helmets.      Deputy Minister of Transport Nguyen Hong Truong instructs pupils  to tighten helmets’ straps.     Mr Nguyen Hong Truong talks about traffic safety plans with press agencies.

On June 3rd, in Cam Pha city, the northern province of Quang Ninh, the National Traffic Safety Committee (NTSC) launched a traffic safety program for pupils and their parents during the summer festival. According to NTSC Vice President Khuat Viet Hung, the program aims to raise understanding and awareness of obeying traffic safety laws among pupils and parents, disseminate skills in safely controlling vehicles, helping to minimise traffic accidents involving school aged youngsters, especially during summer. On this occasion, Honda Vietnam awarded 1,000 helmets for pupils in Le Hong Phong primary school and worked with the FPT Company to give 1,000 others to pupils and residents on Co To island. In addition, the search and rescue centre under the Vietnam Maritime Administration presented 100 lifebuoys and other medical equipment for fishermen on Co To island. The program will continue across the country. NTSC Vice President Khuat Viet Hung launches the program. Pupils in … [Read more...]

Thirty thousand pupils receive free helmets

Pupils are eager to receive standard helmets. (Photo: baotintuc.vn)

Honda Vietnam Company has said it has developed a program to give 30,000 helmets to pupils and students in disadvantaged regions in 2015. The activity aims to respond to Decision 131 of the National Traffic Safety Committee (NTSC) on calling for presenting helmets to pupils. The first 700 helmets were presented to pupils in Thanh Tuyen primary and secondary schools in the northern province of Ha Nam with the participation of Minister of Transport, Dinh La Thang and NCST Deputy Chairman, Khuat Viet Hung. Through the activity, the NCST and Honda Vietnam Company aim to raise awareness among pupils on safe traffic, thus arousing greater attention from parents in ensuring safety for their children and preventing the children from regrettable accidents. In the near future, the program will be continued, together with other social activities./. … [Read more...]

Foreign-invested businesses top all others in 2014 social insurance debt in Vietnam: report

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Foreign-invested enterprises (FIEs) and foreign organizations last year topped all other economic sectors of Vietnam’s economy in social insurance debt with over VND2.13 trillion (US$97.9 million), according to a government report on the management and use of social insurance funds in 2014. This was a staggering 192.5 percent year-on-year surge, according to the report submitted recently to the ongoing National Assembly meeting, which kicked off in Hanoi on Wednesday. The foreign sector was followed by the non-state sector which owed about VND1.9 trillion ($87.4 million), down about 50 percent compared to the rate of over VND3.8 trillion in the previous year. The non-state sector held the top position in social insurance debt in 2013 as the debt it owed accounting for about 16 percent of total social insurance debts that should be recovered, according to the report. In general, the government said in the report that the balance of the country’s social insurance … [Read more...]

FDI Attraction: Long-term Strategy Needed

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Foreign direct investment (FDI) enterprises have continuously played an important position in the economy and significantly contributed to the country’s economic development in the past years. However, FDI enterprise management mechanisms have shown a lot of shortcomings. According to experts, transfer pricing and tax evasion are major concerns in administering FDI firms. Benefits Shortcomings in FDI enterprise management are puzzling the Government and relevant authorities in handling emerging issues in this business sector. When the Hanoi Customs Department and its Vinh Phuc Customs Branch decided to retrospectively collect VND182 billion of taxes from Honda Vietnam Company in 2011 after they performed an inspection, this company immediately announced a review of its future production and business operations in Vietnam. Like the case with Honda Vietnam, Metro Cash & Carry Group had operated in Vietnam for 13 years and opened 19 operating wholesale centres across the … [Read more...]

Science and technology student award launched

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Winners of Honda Y-E-S Award 2014 (Photo: vnexpress.net) NDO/ VNA – The Honda Young Engineer and Scientist’s Award (Y-E-S Award) was launched on May 4 at eight universities across Vietnam. The programme is being organised by Honda Vietnam (HVN) in association with the Honda Foundation and the National Institute for Science and Technology Policy and Strategy Studies (NISTPASS). Honda’s eight affiliated universities are the Hanoi University of Science and Technology; University of Engineering and Technology; University of Science at Vietnam National University, Hanoi; University of Science at Vietnam National University, Ho Chi Minh City; Da Nang University of Technology; Ho Chi Minh City University of Technology; Hanoi University of Transport and Communications; and Ho Chi Minh City University of Transport. The awards will be granted to students who excel in science and technology with active participation in extra-curricular activities. Online registration … [Read more...]

No guidelines available for auto industry development strategy

A Mazda model distributed by Thaco - PHOTO: TL

Ngoc Lan Vietnam will have to lower the duties currently applied on completely built-up (CBU) auto imports to 0% in 2018 in line with the ASEAN Trade in Goods Agreement (ATIGA). Meanwhile, Toyota Motors Vietnam has implied ending its local auto assembly and shifting to auto imports. That might be the reason the ministry held a seminar early last week to find ways to rescue the long-backed auto industry. Despite a slew of policy incentives the ratios of local content in automobiles assembled in the country have remained low. Tran Anh Tuan, deputy head of the ministry’s Heavy Industry Department, said the nation’s total assembly and production output is around 460,000 units a year, half of them cars and the remainder trucks and buses. Local enterprises mostly do simple assembly work. Truong Hai Auto Co. (Thaco) puts its localization ratio at 15-18% and Toyota Vietnam at 37% for the seven-seat Innova. For light trucks, Thaco reaches 33% and Vinaxuki 50%. Thaco … [Read more...]

FDI Impacts on Vietnam Economy

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"Capital flows will spur economic growth, generate employment, transfer technology or turn Vietnam into a production base of the world with a low ripple effect and negative impacts on the environment" is the main content of the seminar on "FDI impacts on Vietnam economy" held recently in Hanoi. Growth-spurring capital Mai Thi Thu, Director of the National Centre of Socioeconomic Information and Forecasting, said since the Law on Foreign Investment was issued in 1987, FDI capital has had great impact on Vietnam’s economy by mobilising capital for development and promoting economic development. FDI also contributed towards creating conditions for the transfer of technology, accelerating economic restructuring, generating jobs for the local people and accelerating the country's global integration. This sector spent US$23.09 billion on imports in the review period, up 24 percent year on year and accounted for 62 percent of the country’s total imports. Thus, their trade … [Read more...]

Honda Vietnam at odds with ministry over almost $10mn tax arrears

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The Vietnamese unit of motor maker Honda and the Ministry of Finance still fail to reach an agreement on a preferential tax treatment the company is supposed to enjoy, thanks to which it refuses to pay nearly US$10 million in tax arrears. Honda Vietnam Co. Ltd. has been asked to pay VND182 billion ($8.48 million) in tax arrears and fines, Deputy Minister of Finance Do Hoang Anh Tuan said at a government meeting on Saturday. While the company has followed the order, it still owes "a large sum of money" to the state budget, Tuan added without elaborating the violations of the motor manufacturer. Honda Vietnam went under a tax inspection in 2014, and was eventually asked to pay nearly VND400 billion ($18.64 million) in tax debts and fines, another finance ministry official told Tuoi Tre (Youth) newspaper on Sunday. The company, which has two motor-manufacturing plants and a car-making facility in Vietnam, has so far paid only VND182 billion of the sum, and thus still owes around … [Read more...]

Social News 25/4

Third blood donation campaign targets 20,000 donors "Hanh trinh Do" (Red Journey), a campaign calling for blood donation across Vietnam, was launched for the third time in Da Lat city in the Central Highlands province of Lam Dong on April 23. The 35-day event will run in 23 cities and provinces nationwide, with goals to attract 20,000 donors and receive at least 17,000 blood units. Two groups with 140 volunteers will stop by localities to launch charitable and educational campaigns about blood donation and healthcare for the public. On the occasion, the National Steering Committee for Voluntary Blood Donation and the Central Committee of the Vietnam Red Cross Society opened training courses for information volunteers for the cause. Held in July 2013 and 2014, the Red Journey has collected over 28,300 units of blood. This year's event was co-hosted by the National Steering Committee for Voluntary Blood Donation and the National Institute of Haematology and Blood Transfusion. Ho … [Read more...]

Honda Vietnam kicks off tree planting project

A staffer of Honda Vietnam plants a tree in Bac Kan Town - PHOTO: HONDA VIETNAM

Quoc Hung The event was attended by 200 staff members of Honda Vietnam and its partners, and a number of local people to plant trees on an area of two hectares in Bac Kan Town of the province. This is the third year the Japanese-invested firm’s tree planting project has been executed, with a total of 65.54 hectares of land to be replanted. Expected to take eight years to finish, the project will replant 490 hectares of protected forest in Nong Thuong and Xuat Hoa Communes in the initial phase from 2013 to 2016. The second phase will be to take care, prune and protect the forest in the following four years, and wood can be exploited from 2020. As the only sponsor of the project, Honda Vietnam pledged to fund VND4.9 billion (US$227,000), including covering the full cost of developing the project, training personnel, buying high-quality seeds, and covering 15% of the cost of caring the trees and 10% of the total fertilizer cost. The participating households can benefit … [Read more...]

Vietnam motorcycles set record in super save gas

Honda Vietnam General Director Minoru Kato awarded representatives of two winning teams are wind wing (left) and CKOUTC1 team. (Photo: Van Xuyen / Vietnam +)

Final round "Eco Driving - Economy Fuel of Honda Vehicles" (Honda EMC 2015) in Vietnam in 2015 took place at the National Convention Center (Hanoi) on April 12, set a new record with a liter of petrol a vehicle can go over 2.109km, exceeding the record of 1,164km in 2014. Contest of "eco-driving – fuel saving of Honda vehicles'' was launched since 1981 by Japan Honda to enhance creativity in working group and comprehension of environmental protection to students as well as society. In Vietnam, the competition was launched since 2010 by Honda Vietnam Company and this year is the 6th consecutive year the contest was held. Honda EMC 2015 was launched since September, 2014 by Honda Vietnam. It attracted 147 teams across the country, including 109 teams with homemade vehicle contents and 38 teams with market vehicle contents, in which 90 teams are students. The final result, in the category of homemade vehicles, Wind Wing team won the championship with a record 2.109,512 km / … [Read more...]

Social News 22/4

National vaccine safety surveillance programme meets WHO requirements Vietnam’s surveillance of adverse events following vaccination meets the requirements of the World Health Organisation (WHO), said experts from the organisation. After a one-week mission to Vietnam from April 9 to review the implementation of the Vaccine Adverse Event Reporting System (VAERS) in the country, the WHO team announced that all six components under Vietnam’s NRA system have passed the check with good results. The team, including 14 experts from the WHO and two observers from Russia urged the Department of Preventive Medicine under the Ministry of Health and the post-vaccination monitoring systems at all levels to continue their efforts in the field. During the checking process, the team made field trips to the southern province of Tay Ninh where they had working sessions with the provincial preventive medicine centre, the municipal medical centre of Tay Ninh City and the medical station of … [Read more...]

Tree planting project takes root in Bac Kan

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Honda Vietnam leaders take part in the tree planting project. Source: VNA A special "Tree Planting Day 2015" was held in the northern province of Bac Kan by the Honda Vietnam Company (HVN) and the provincial department of agriculture and rural development on April 19. HVN’s General Director Minoru Kato said the event is part of an eight- year project (from 2013 to 2020) developed by the local government alongside the Japan International Cooperation Agency (JICA) and Vietnam Forestry University. As the sole sponsor of the project, HVN has provided 4.9 billion VND (233,000 USD) for planting trees over 490 hectares of protective forest land in two communes of Bac Kan town. This has covered the costs of project preparation, agricultural training for forestry officials and local farmers and the purchase of high-quality seedlings and fertilisers, he added. He noted that trees will be planted from 2013-2016, while the next four years will see the trees thinned out but protected. … [Read more...]