Average minimum salary proposed to rise over 15% next year Minh Duc By Minh Duc - The Saigon Times Daily The minimum wage for Zone 1 would rise to VND3.1 million per month if the National Wage Council’s proposal is approved by the Government - Photo: Uyen Vien HANOI – The National Wage Council has agreed on a proposal by representatives of different agencies to increase the 2015 minimum salary by region by an average of 15.1% and the minimum wage for Zone 1 would rise to VND3.1 million if the proposal is approved by the Government. According to the National Wage Council’s proposal, employees in Zone 1 would see their minimum salary up VND400,000 to VND3.1 million per month while the respective amounts in zones 2, 3 and 4 would be VND2.75 million (up VND350,000), VND2.42 million (up VND320,000) and VND2.2 million (up VND300,000). At the council’s meeting in Hanoi on August 6, the Vietnam General Confederation of Labor proposed a minimum wage … [Read more...]

Achievements The national economy has continued to develop vigorously in 2007 with the growth rate reaching a 10-year record high of 8.5 percent. For the first time Vietnam has completed all its socio-economic development tasks, with the services sector growing by 8.54 percent, a figure higher than the national average growth. This means that the economic structure has shifted towards an industrial and service development. The latest statistics show that the agro-forestry and fisheries sector currently makes up 20.06 percent of the total GDP, the industry and construction sector 41.67 percent and the services sector 38.27 percent. The corresponding figures last year were 20.45, 41.31 and 38.25 percent. This, coupled with a high economic growth, has seen foreign investment capital increase sharply in 2007. Between January-October 2007, Vietnam attracted more than US$11 billion from newly licensed or expanded projects, up 36.4 percent from a year ago. Notably, 1,144 more projects were … [Read more...]

In the Doi Moi (renovation) process, with the transition from a planned market economy to a socialist-oriented market economy, the Party and State have adopted many policies to encourage business. The number of registered businesses rose from 4,080 in 1992 to 376,644 by the end of 2008. It is expected that there will be an additional 76,000 businesses this year. The country now has 3.7 million household businesses, including more than 1 million registered households and 14,500 cooperatives, more than half of them non-agricultural. “If we consider entrepreneurs to be owners or managers of economic production or trade units, the country has a total of about 4 million entrepreneurs,” said Loc. The quality of entrepreneurs has improved along with the growth in the number of businesses. Business is like a battlefield. It is not easy to win the battle. During the economic crisis, VCCI reported that 63 percent of Vietnamese businesses were in a fix and about half of them were in … [Read more...]

It is said that trade remedy measures (TRms) lawsuits are likely to increase in the future. According to a member from the Trade Remedies Council (TRC), the knowledge of businesses that face TRms lawsuits has improved but their capacity remains limited to cope with such lawsuits. Businesses unaware of TRms on home turf Anti-dumping measures in the current WTO rules have allowed member countries to use TRms when their imports have problems. However, in recent years, Vietnam’s trade balance has always been in deficit. Among products with a high import turnover, some products are dumped and subsidized by exporting countries’ governments. When attempting to penetrate the Vietnamese market, foreign businesses take account of unhealthy competition practices including dumping, subsidies or taking advantage of opportunities to flood the Vietnamese market with imported goods. This can cause losses for Vietnamese businesses on their home turf. Therefore, businesses and associations … [Read more...]

Tran Ngoc Liem, Deputy Director of the VCCI-HCMC, said that trade relation between Vietnam and Brazil has been unceasingly strengthened and developed over the past years. The bilateral trade turnover reached almost US$937 million in 2010 and exceeded US$1 billion for the first time in 2011. The two countries have also signed many agreements, creating a legal foundation and favourable conditions for boosting bilateral cooperation in many fields, especially in economics, trade and investment. According to Victoria Alice Cleaver, Brazilian Ambassador to Vietnam, the country’s businesses are trying their best to seek investment opportunities in the Vietnamese market. Therefore, the two countries’ investment promotion agencies should update information and incentives, as well as answering queries for businesses keen to penetrate into the market. … [Read more...]

The figure was released at a Vietnam-Thailand trade exchange held in Ho Chi Minh City on November 2. Nguyen The Hung, Vice Director of the Vietnam Chamber of Commerce and Industry’s (VCCI) HCM City branch, said trade relations between Vietnam and Thailand have developed strongly. He said the two business communities currently enjoy the best possible conditions to meet, engage, and cooperate with each other in many fields, especially investment and trade. Vietnamese businesses are seeking our investment opportunities and expanding trade activities in Thailand, said Hung adding that Thai businesses also consider Vietnam a stable market with great potential. Isares Rattanadilok Na Phuket, Deputy Secretary-General of the Federation of Thai Industries (FTI), said Thai businesses should take advantage of Vietnam’s great potential in human resources, the rapid and constant development of public services, a huge market of 90 million consumers and steady economic growth. Na Phuket … [Read more...]

Addressing a Vietnam-Argentina business forum in Hanoi on January 21, MoIT Deputy Minister Tran Tuan Anh noted that two-way trade fetched US$1.01 billion as of November 2012, a year-on-year increase of 3 percent. Of the total, Vietnamese exports generated US$154.5 million. Vietnam exports footwear, rubber and rubber products, electronics, garments and clothes to Argentina, and imports animal feed, processing materials, animal fat, milk and other dairy products, and garment accessories. Vietnam has committed to helping the business circles of the two countries penetrate each other’s markets, aiming to raise bilateral trade value to US$1.5 billion in 2015. Despite their potential for cooperation, Argentinean investment in Vietnam remains modest at US$120,000, ranking 92nd amongst 98 foreign investors in the country. The governments of Vietnam and Argentina are trying to promote bilateral economic, investment and trade cooperation, as well as assisting their businesses, said Doan … [Read more...]

VCCI Deputy Chairman Doan Duy Khuong pledged to create favourable conditions for Austrian businesses to invest and expand operation in Vietnam, a country with more than 80 million people- close to other large markets operating in the ASEAN-China, ASEAN-Japan and ASEAN-Korea Free Trade Areas. He said Vietnam remains to be an attractive destination for foreign investors, including those from Austria, as its government is set to encourage the development of the private economic sector while completing the legal frameworks for the market economy to grow steadily. Tran Ngoc Quan, Deputy Head of the Europe Market Units, said the two countries’ bilateral trade turnover has risen sharply from US$175 million in 2007 to US$1.3 billion in 2012. Austrian Ambassador Georg Heindl said Austria has a good opportunity to increase investment and trade cooperation with Vietnam which enjoys political stability and strong growth in many sectors. He expressed his hope that the business forum will help … [Read more...]

Doan Duy Khuong, Vice President of the Vietnam Chamber of Commerce and Industry (VCCI), noted that although Vietnam and Cuba established diplomatic relations more than 50 years ago, their trade and investment ties have yet to match the potential. Last year’s two-way trade reached merely US$475 million, mostly from Vietnamese exports such as rice, chemicals, plastics, coal and garments. Meanwhile, Cuban exports to Vietnam remained modest at US$6 million, half of which came from pharmaceutical exports. Its cancer, meningitis, and hepatitis B drugs have been widely used in Vietnam. Cuba has invested US$6 million in a project in Vietnam, ranking 68th among foreign investors in the country. Vietnam has so far carried out two oil and gas projects in this Caribbean nation. Cuban ambassador to Vietnam Fredesman Turro Gonzlez said that Cuba’s pharmaceutical industry has developed constantly over the years. It has invented a number of drugs that cannot be found anywhere else in … [Read more...]

Addressing a Vietnam-Slovakia business forum in Hanoi on April 11, Deputy Minister of Industry and Trade Ho Thi Kim Thoa said bilateral trade revenue is yet to match the two countries’ full potential. Vietnam mostly exports electronics and spare parts, garments and textiles, along with footwear to Slovakia, she said. Thoa also revealed that Slovakian businesses are currently getting involved in five projects in Vietnam with a total registered investment of US$235 million, ranking it 31st among 98 foreign investors in the country. Deputy Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Doan Duy Khuong emphasised that Vietnam and Slovakia share many similarities and hold huge potential for stronger trade ties. As a member of the European Union (EU), Slovakia can capitalize on Vietnam’s WTO membership to export its products to this market and others in Southeast Asia, Khuong said. Vietnam considers Slovakia an important trade partner to promote local products … [Read more...]

The event was co-organised by the Indian Embassy in Vietnam , the Haryana Chamber of Commerce and Industry (HCCI) and the Vietnam Chamber of Commerce and Industry (VCCI). In his speech, Indian Ambassador Ranjit Rae highlighted the time-honoured friendship and long-standing cooperation between the two nations while saying that India is now one of Vietnam’s ten biggest trade partners. In 2012, despite facing global economic difficulties, bilateral trade achieved relatively high growth. In the first four months of 2013 it reached more than US$1.8 billion and is expected to exceed US$5 billion by the end of this year. However, the two countries’ economic and trade relations are still far from matching their potential and strengths, Rae affirmed, saying that he hopes through the exchange programme, businesses will understand more about their partners to create more specific cooperation programmes to intensify investment, thus stimulating bilateral economic growth. Deputy … [Read more...]

At a joint business forum in Ho Chi Minh City on June 13-14, Vu Tien Loc, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), said Vietnamese and Indonesian businesses involved in the seafood processing sector should work closer together in supply activities. Indonesian businesses can also invest in rubber production for support industry in Vietnam, Loc added. He cited tourism industry as another promising sector as more than 74,000 Indonesian visitors came to Vietnam last year. By the end of last year, PT Semen bought 70 percent of shares from Vietnam’s Thang Long Cement Company and PT Madiri Bank opened a branch office the country. Last April PT Nikko Securities spent US$10 million buying a major of share equal to 20 percent of Hoa Binh Construction & Real Estate Corporation’s chartered capital. On June 13, PT Telin signed a memorandum of understanding (MoU) on strategic cooperation with CMC, one of the leading technology groups in Vietnam. Le Phuoc Vu, … [Read more...]

Le Thai Hoa, the Deputy Head of the Ministry of Industry and Trade’s (MoIT) African, West and South Asian Markets Department, said the demand for food, agricultural produce, seafood, and consumer goods in Africa and the Middle East is latent potential Vietnam cannot afford to ignore. Vietnam’s export earnings hit nearly US$4.2 billion last year, up 65 percent compared to 2011. A further US$1.4 billion has been added in the first quarter of this year. Vietnam’s Middle Eastern presence includes eight embassies, six trade offices, and free trade agreements with 11 out of the region’s 15 nations. The tax rates levied on Vietnamese imports into the Gulf Cooperation Council (GCC) political and economic alliance range from the relatively low rate of five percent to completely tax free. Vietnamese exporters also enjoy most favoured nation (MFN) status in Africa. The political instability and persistent religious and ethnic conflicts makes business challenging. … [Read more...]

According to the Ministry of Industry and Trade’s (MoIT) Competition Authority, trade lawsuits arise from both export growth and economic slowdown. Vietnam’s ongoing international economic integration means a proactive approach to these disputes is the best option. The widespread financial and economic crisis has forced down the purchasing power of Vietnam’s key export markets. The fall has inspired some to adopt protective policies designed to shelter their domestic industries. Vietnam’s key export commodities are employing relatively basic technology with little added value, such as seafood, garments and textiles, footwear, and wood and timber furniture.The success of these commodities is fuelled by low labour costs and the country’s natural advantages. Price competition has increased the risk of anti-dumping lawsuits. A number of Vietnamese businesses have even engaged in contract price wars with each other, hurting exports more generally and … [Read more...]

The Vietnam Chamber of Commerce and Industry (VCCI) says Malaysia’s demand for imported goods has increased over the years, from just US$117 billion worth of imports in 2009 to US$153 billion in 2010 and US$168 billion in 2011. For the first time in the past decade Vietnam achieved a trade surplus of nearly US$1.1 billion with Malaysia in 2012. Two-way trade also rose 17% last year to US$7.9 billion. Vietnam Customs statistics show that Vietnam-Malaysia trade continued to grow and flourish in the first seven months of this year, with Vietnamese exports generating US$2.87 billion. Major export items include crude oil, rubber, rice, computers and spare parts, phone handsets and spare parts, coffee, seafood, steel, vehicles, machinery and equipment. Vietnam mainly imports oil and fat, oil and petrol, chemicals, plastic materials, timber and dairy products from Malaysia. Shazryll Zahiran, Malaysian Consul General in HCM City, says both countries have signed a total of 13 … [Read more...]

They said since the FTA was signed five years ago, bilateral trade ties have grown significantly, with two-way trade turnover reaching US$131.2 billion last year. Vietnam-RoK trade value had increased by four fold to US$21.7 billion in 2012. However, they said, the figure has not yet met both sides’ huge potential. They suggested Vietnamese and Korean businesses focus on removing trade barriers, managing product origins and conducting market surveys to take full advantage of free trade markets. They highlighted the significance of the FTA that helps increase global competitiveness, promote exports, boost economic growth and overcome the negative impact caused by the financial crisis. As of October 2013, as many as 346 FTAs were signed, they noted. The seminar was jointly held by the Vietnam Chamber of Commerce and Industry (VCCI) and the RoK Consulate General in HCM City to encourage the business community to seize new opportunities and deal with challenges posed by the … [Read more...]

Restructuring will continue to be a priority this year, according to the Ministry of Industry and Trade (MoIT). Industrial production showed signs of recovery in 2013, with the IIP growing by 5.9% and inventories decreasing. However, the macro-economy did not fully stabilise, consumers continued to budget carefully and free trade agreement negotiations remained unfinished. In addition, natural disasters and diseases posed a continued threat. MoIT Deputy Minister Le Duong Quang said Vietnam’s industrial production of Vietnam was still dependent on the world economy and thus vulnerable to global fluctuations. He added technology remains low-level and the support industries do not receive adequate investment, meaning the country depends on imports for many raw materials. He stressed that technology should play a bigger role in production and the localisation rate should be increased. A Vietnam Chamber of Commerce’s survey shows 42.5% of companies plan to expand business in … [Read more...]

They attended a trade exchange programme jointly held by the Vietnam Chamber of Commerce and Industry (VCCI)’s HCM City branch and Hiroshima Shinkin Bank of Japan. Most Japanese delegates demonstrated a keen interest in the areas of manufacturing, steel pipe, electronics, sanitation equipment, construction materials, frozen food, and farm produce. An official from West Japan Aitec announced his firm wants to cooperate with Vietnamese partners in the solar energy industry. Many Japanese businesses described Vietnam as an attractive investment destination, and expressed their satisfaction at fruitful trade ties between the two countries. In the first two months of 2014, the two-way trade turnover was estimated at US$4 billion, up 15.1% from last year’s same period, including US$2.2 billion from Vietnamese exports. … [Read more...]

Dutch Consul General in HCM City Simon Van Der Burg said that the event opened up huge opportunities for cooperation between businesses of both nations in the future. According to the Vietnam Chamber of Commerce and Industry (VCCI) Can Tho branch the Netherlands is one of the largest European investors in Vietnam. At present, the Netherlands has invested in192 projects capitalised at US$6.3 billion in Vietnam, with two-way trade turnover reaching US$3.6 billion in 2013. Vietnam’s major exports to the Netherlands are seafood, footwear, garments and textiles, pepper, rice and coffee, while its Imports include machines, pharmaceuticals and medical equipment. The Netherlands have also implemented support programs in the Mekong Delta region to help combat climate change and rising sea levels. Earlier the same day, in a meeting with municipal leaders, the consul general expressed his wish to cooperate with the locality in fields such as energy saving, water resource improvement, … [Read more...]

Among the most significant challenges are the European Union (EU)’s anti-dumping measures from the Agreement on Technical Barriers to Trade (TBT), and the US’s Sanitary and Phytosanitary Standards (SPS) and Food Safety Modernization Act (FSMA). Vo Hung Dung, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI)’s Can Tho branch, said apart from major markets, some regional countries such as Indonesia and Malaysia are also putting anti-dumping pressures on Vietnamese exports. “It is essential to support businesses and set up technical groups to deal with lawsuits. Moreover, businesses should pay particular attention to evaluating their production situation and studying the export market carefully to avoid anti-dumping lawsuits” he noted. Dung also suggested Vietnamese businesses raise their competitiveness both in price and product quality. Cultivation methods should be adjusted to ensure food safety, he said, adding chemicals should be banned in … [Read more...]