State President Nguyen Minh Triet received in Hanoi on Sept. 15 Nagamori Shigenobu, President of Nidec Corporation, the investor of the hi-tech zone project in Ho Chi Minh City. President Triet praised Nidec, particularly its president, for implementing the commitment on investment in this major infrastructure project. He affirmed that Vietnam ’s economic development policy was looking towards a sustainable economy with priority on developing hi-tech zones. Vietnam has been creating most favourable conditions for projects in this field, the State leader said, adding he wished that Nidec and other investors would continue to invest and reap successes in Vietnam. Exchanging views with officials of Nidec, President Triet expressed his pleasure at the rapid development of cooperation between Vietnam and Japan and spoke highly of the Japanese government’s assistance in providing ODA to Vietnam. Nagamori Shigenobu briefed President Triet about the development of the hi-tech … [Read more...] about State President meets Japan’s Nidec Corporation CEO
Corporate
Japanese corporation pours investment into Vietnam
The Vietnam National Textile and Garment Group (Vinatex) said on May 10 that it will team up with Itochu Corporation of Japan to build a modern fibre plant in the northern province of Nam Dinh. According to Vinatex, construction of the plant is scheduled to start soon at Bao Minh Industrial Park in Nam Dinh province with a total investment of 120 million USD. It is expected to become operational in 2013 and bring jobs to 3,000 workers. Established in 1858 with seven subsidiaries operating in the fields of mechanical engineering, textile industry, chemicals, gas and oil, energy, foods, insurance, finance, construction, real estate, Itochu is now one of the largest economic groups in Japan . With a charter capital of 2 billion USD, the corporation operates in 139 countries across the world, including Vietnam. Textile production is Vietnam’s key industry, helping to create many jobs and contributing to the country’s social welfare. It is a key sector that contributes … [Read more...] about Japanese corporation pours investment into Vietnam
Hired CEO policy for State-owned corporations fails
Both big corporations that experimentally implemented the policy on hiring chief executive officer (CEO) have quickly returned to the former mechanism: appointing general directors. The policy on hiring general directors for State-owned corporations was considered a breakthrough idea in business governance. In 2005, the government assigned five major corporations to hire general directors on a trial basis. The five corporations submitted their general director hiring plans to the government and two of them implemented the plan. They were the Vietnam Motor Industry Corporation (Vinamotor) and the Electric Technology Corporation. But only after a short period of time, both corporations returned to the appointment mechanism, said Deputy Minister of Labor, War Valid and Social Affairs. Huan said that this policy failed because the current regulations on public servants, the power of hired general directors, etc. hinder corporations from hiring excellent managers. A representative … [Read more...] about Hired CEO policy for State-owned corporations fails
Corporate income tax likely to be cut by 5 pct
The National Assembly's (NA) Finance and Budget Committee has suggested further corporate income tax cuts to 20 percent, much lower than that at many regional countries, the chair of the committee told Saigon Tiep Thi newspaper. Taxes are on a decline in general, said the chairman Phung Quoc Hien, adding that corporate income tax which stood previously at 32 percent has been lowered to 28 percent and 25 percent recently. The adjustment is expected to come in 2012 or 2013 during the roadmap of law making. The total tax collection for the state budget is projected to gain VND612 trillion this year, up 16.7 percent over 2010's estimates, mostly thanks to increased collection from land, non-state sector and export-import taxes which have significantly picked up by the year-end, according to the Ministry of Planning and Investment. But since 2011 has been a tough year for the majority of businesses, especially small and medium-sized ones struggling with a variety of hardship that … [Read more...] about Corporate income tax likely to be cut by 5 pct
VN needs to improve corporate governance in banks
At a seminar in HCM City on September 29, a US advisor said Vietnamese banks need to improve corporate governance to reduce the risks to the banking system. At a meeting sponsored by the State Bank of Vietnam and the US Treasury Department, Le Thanh An, the US consul in HCM City, said the Treasury Department had an agreement with the SBV to provide assistance in a number of areas, including corporate governance. David Hawkins, the US Treasury banking advisor, said good corporate governance would create public trust and confidence in banks and the banking system. Banks should have an independent risk management function including a chief risk officer with sufficient authority, stature, independence, resources, and access to the board of management. Risk management information should be audited for accuracy periodically. The governance of a bank should be suitably transparent to its shareholders, depositors, stakeholders, and market participants. The role of the State Bank … [Read more...] about VN needs to improve corporate governance in banks