Vietnam is climbing on the biofuels bandwagon with government policies to encourage production of 'green gasoline' from cassava, coconut, sesame, peanut, flax and jatropha, and from animal products such as catfish fat. Biofuel - a global trend Many countries already manufacture large amounts of biofuels, especially in the US and Brazil. Once a big importer of oil, Brazil has substantially reduced its requirement thanks to biofuel development. Some Asian countries are strongly investing in biofuels, among them Thailand, China and India. Vietnam has now joined the game. The government has instructed ministries to give incentives for the production and use of biofuel, defined as fuel made from plants such as cassava, coconut, sesame, peanut, flax and jatropha, or animal products such as catfish fat. Under the plan on biofuel development to 2015 with a vision to 2025, Vietnam will produce 1.8 million tons of ethanol and vegetable oils for use as fuel annually, meeting 5 … [Read more...] about Vietnam invests in a biofuels industry
Opinions still vary about if it is necessary to keep the Investment Law. However, all agree that the Investment Law has shown a lot of problems.Six years ago… All agree that the Investment Law has shown a lot of problems. In fact, the question about whether Vietnam should have an investment law was raised six years ago, when the Ministry of Planning and Investment was drafting the law. At that time, some experts once tried to dissuade the National Assembly from enacting the law. The issue was once so burning that Dr Nguyen Dinh Cung, the then Head of the Macro Economy Division under the Central Institute of Economic Management (CIEM), an arm of the Ministry of Planning and Investment (MPI), dared to express the viewpoint which was contrary to that of his superior - MPI’s Minister. He frankly said that no need to have an investment law, because Vietnam already has the other laws which stipulate the relating issues. Fearing that the investment environment may get worse, … [Read more...] about Keeping or removing Investment Law?
The most critical issue today is the ineffective use of the state's resources by the state owned enterprises (SOEs), which affects the quality of growth, development and competitiveness of the economy. The Ministry of Planning and Investment (MPI), which is drafting the plan on improving the efficiency of SOEs' operation to be submitted to the Prime Minister, has pointed out that the biggest problem of SOEs now is that they are wasting the resources. SOEs' investments don't have high efficiency… The MPI's report has pointed out that SOEs have been using more resources than private enterprises, but the values of the products made by SOEs are lower. In 2009, SOEs had 37.2 percent of the total capital, 44.8 percent of fixed assets and long term investment, but they only created 25 percent of the total revenue, 37 percent of pre-tax profit and 20 percent of industrial value. According to the General Statistics Office, in 2009, SOEs had to use 2.2 dong in capital to … [Read more...] about MPI says SOEs make heavy, but ineffective investments
In an effort to regain coffee materials from foreign businessmen, Vietnamese enterprises have to spend money to develop the growing areas. Reuters has predicted that Vietnam would have the biggest harvest so far in the 2011-2012 coffee crop with the estimated output of up to 21 million bags (60 kilos per bag), much higher than the output of 18.5 million bags gained in the 2010-2011 crop, breaking the record of 19.3 million bags made in the 2006-2007 crop. However, the information does not make domestic enterprises happy. Foreign invested enterprises have been dominating the domestic coffee material market. They have been offering high prices to collect materials directly from farmers and have been investing money to develop material growing areas, which allows them to control the material market. Dakman, for example, has been controlling thousands of hectares of coffee. Meanwhile, Nestle has also been implementing similar projects in Dak Lak and Lam Dong provinces, the … [Read more...] about Enterprises invest in coffee areas to regain materials from foreigners
The Government of Vietnam is the biggest investor in South East Asia and South Asia, if considering the ratio of investment on GDP. In fact, experts once gave warnings about the overly hot investments before. However, as the national economy restructuring has become most urgent than ever, the “investment syndrome” and its bad consequences has been, once again, mentioned as a “chronic disease” that needs urgent treatment. In an article prepared for a workshop on the national economy restructuring held recently, former Deputy Prime Minister Vu Khoan recalled the “investment waves” which have been seen since the day doi moi (renovation) was kicked off in 1986. Vietnam witnessed a lot of investment waves so far, including the wave of making investment in breweries, blast furnace plants, sugar refineries, motorbike assembling, offshore fishing, seaport development, and then industrial zone and economic zone development. Vietnam also saw the trends of … [Read more...] about Vietnam and the “investment addiction syndrome”