Last update 07:50 | 18/11/2014
The Vietnam government has done its best to create a favorable investment environment and in the 10 months leading up to November the nation’s economy is like a locomotive gaining momentum.
Minister of Planning and Investment Bui Quang Vinh adds that registered and disbursed foreign direct investment (FDI) along with the issuance of investment certificates during the period have been consistent with a stable business climate.
Dr Nguyen Dinh Cung, Central Institute for Economic Management (CIEM) Director in turn echoes Vinh’s views, saying Vietnam offers a welcoming environment for foreign firms that wish to establish a presence including solid economic growth and political stability among other things.
Though Vietnam has become more attractive with its tax incentives, low-cost labour, and long coastline and its increasingly modern and sophisticated port infrastructure, FDI attraction policies still naturally face some challenges.
To overcome these obstacles and continue to attract more FDI in the future, Vietnam needs to take a long-range view and develop a national strategy that embraces FDI as a powerful driver for sustainable economic development, Cung said.
According to the Foreign Investment Agency (FIA) during the 10 month period, newly registered FDI capital dipped by 23.9% to US$9.95 billion, representing a total of 1,306 projects.
Meanwhile the FIA reported supplementary capital for existing projects dipped 39.1% to US$3.74 billion for 469 projects.
Combined, this financially translates to a dip of about 28.9% on-year to US$13.7 billion of new and supplementary registered capital into Vietnam for the 10 month period. In explaining the cause of the declining FDI registered capital, FIA Deputy Director Nguyen Noi says the reduction was principally due to the reduction in the number of large scale projects this year as compared to 2013.
Right from the beginning of planning, we have anticipated fewer large projects and accordingly, the reduction comes as no surprise or cause for alarm, Noi notes.
There are a fewer projects having capital of more than US$1 billion each this year while the overwhelming majority (70%) of FDI projects have registered capital of under US$5 million that is the main cause of a decline in FDI capitalization this year, Noi concludes..
Tran Duy Dong, Director of the Ministry of Planning and Investment (MoPI)’s Economic Zone Management Department, agrees with Noi as saying in fact many foreign investors have continued to pour investment into their business in Vietnam.
This clearly has demonstrated their continued confidence in the country. Even some businesses from China and Taiwan (China) have invested in Vietnam this year. He cites the Samsung CE Complex and Samsung Display Bac Ninh projects, which each have registered capital of more than US$1 billion, as prime examples of the confidence of foreign investors in the country.
Most notably the FIA reports that in 10 month period, disbursed FDI actually jumped 5.9% to US$10.15 and the figure is expected to increase 8.7% to US$12.5 billion by the end of the year.
Foreign invested enterprises contributed US$82.48 billion to the nation’s export revenues (including crude oil), up 13.6% and comprising 67% of the country’s total export value.
All this adds up to the simple fact that Vietnam has continued to remain a safe and attractive destination for foreign investors, Don concluded.
Clear orientations needed
To improve FDI attraction, FIA Director Do Nhat Hoang says the agency has set a target to bump up the appeal for large-scale projects with more competitive products and plans to join global value chains of multinational groups.
At the same time the agency will pay appropriate attention to small-and-medium sized projects and strike a balance between the two. Furthermore, FDI attraction would focus on the supporting industry, industry, construction, services, and agro-forestry, Hoang says, noting that in the exploitation of natural resource, only projects using advanced and environmentally friendly technologies and machines will be granted licences.
To realise the target, Vietnam should have proper strategies in each market and take better care of investors who are operating in Vietnam. This is an important factor for the foreign investment community.
“Currently, some Vietnam localities, such as like Binh Duong, have been better at attracting foreign investment, because they support businesses and have timely and clear investment procedures. The model should be expanded in the future” says Professor Nguyen Mai.
For his part, Nguyen Dinh Cung says localities should outline clear and specific criteria for choosing investors and devise open and transparent policies for mutual benefit.
Economic, industrial zones attract investment flow
Industrial and economic zones have not only played a major role in attracting domestic and foreign investment capital but also significantly contributed to the country’s socio-economic development, the Vietnam Economic News reported.
As of September 2014, Vietnam had 295 established industrial zones, including 207 operational industrial zones with an average occupancy rate of 65 percent. In addition, the country also had 15 economic zones.
To date, industrial and economic zones have attracted 5,591 FDI projects with total registered capital of 118.1 billion USD, accounting for 49 percent of total FDI capital in Vietnam. In the first nine months of this year, industrial and economic zones attracted more than 600 FDI projects with total registered capital of 7.8 billion USD, accounting for 70 percent of total FDI capital in Vietnam.
Domestic investment in industrial and economic zones in recent years has also increased. Statistics showed that industrial and economic zones had attracted more than 512.028 trillion VND, accounting for more than 50 percent of total domestic investment capital. In the first nine months of this year, industrial and economic zones attracted 75.074 trillion VND, an increase of 16 percent compared to the same period last year.
According to the Ministry of Planning and Investment, thanks to attractive incentives for investment projects, in the coming time, investment capital in industrial and economic zones is expected to increase.
Tran Duy Dong, Director of the Economic Zone Management Department under the Ministry of Planning and Investment, was quoted as saying that industrial and economic zones had played a major role in the country’s socio-economic development. These zones have contributed 25 percent to the index of industrial production and accounted for more than 20 percent of Vietnam’s export value. In addition, these zones have created jobs for more than 2.3 million employees and this figure is expected to increase in the coming time.
Industrial and economic zones have recorded strong growth in business and production activities in the beginning months of this year. Total revenues of enterprises in industrial and economic zones reached over 55.7 billion USD. Export turnover stood at more than 35.7 billion USD. Meanwhile, import turnover totalled 34.7 billion USD. In the first nine months of this year, industrial and economic zones contributed more than 42 trillion VND to the state budget.
Last update 12:34 | 18/11/2014
VietNamNet Bridge – The appreciation of the Vietnam dong against other currencies has benefited many import/export companies.
The dong/dollar exchange rate has been stable since the beginning of the year with the supply always higher than demand from trading companies, reflected in the positive trade balance this year.
However, the exchange rate between the dong and other currencies have been fluctuating since June 2014. The dong has appreciated significantly over the euro and the Japanese yen.
A report showed that the euro depreciated by 8.8 percent against the dong in the first nine months of the year after the European Central Bank slashed the prime interest rate and announced several economic stimulus packages to deal with low inflation and slow growth.
Meanwhile, the Japanese yen lost 7.7 percent in the value against the dong. This is explained by the fact that the Japanese central bank continues loosening the monetary policies to cope with deflation.
The same thing is occurring with the South Korean currency as the won has depreciated by 7 percent against the dong this year.
According to Bui Hai Duong, a senior executive at Sacombank, the Vietnam dong has been appreciating against these foreign currencies thanks to the recovery of the US dollar.
Some businesses of S&P 500 have reported very satisfactory business revenue for the third quarter of the year. This helped US stocks soar to a two-week high and the 10-year bond yield climb to a one-week high.
Analysts noted that there are signs of the US Federal Reserves planning to raise the prime interest rate next year. The US Labor Department has recently reported that the average number of applications for unemployment benefits in the last four weeks dropped to the deepest low in 14 years.
The Purchasers Managers Index (PMI) released by Market Economic has reportedly decreased to the 3-month low in October. However, the news helped stop the continued decrease of the euro value against the US dollar only. Meanwhile, the euro’s downward trend against the dong still continues.
Vietnamese import companies have received big benefits from the dong appreciation. Hoa Sen Group, the steel manufacturer, has seen its share price increase rapidly by 4.34 percent, thanks to higher profits due to cheaper import materials from Japan. About two-thirds of the materials used in its products are from Japan.
Meanwhile, Vissan, CP and several food companies are rushing to import Australian beef and fruits to take full advantage of the Australian dollar depreciation.
Tareq Muhmood, ANZ Vietnam’s CEO, also noted that many businesses have had big profits thanks to the depreciation of foreign currencies, not because of the improved business performance.
The CEO has also confirmed that more businesses have recently asked for bank loans to import goods from Australia.
The Asia-Pacific region has appeared in information agenda of Russian media out of the blue. It was in the Asia-Pacific region, where a series of top international meetings was conducted: the APEC summit in Beijing, the East Asia Summit in Myanmar's new capital - the city of Naypyidaw and the G20 summit in Brisbane, Australia.
However, behind Vladimir Putin's gentlemanly gestures, Barack Obama's chewing gum, similar patterns on the shirts of the American president and the Russian Prime Minister, behind the photos with koala bears, the media found tectonic moves in Russia's turn to the East.
Previously, the turn of Russia's foreign policy to the East was associated with the strengthening of relations between Moscow and its eastern neighbor - the People's Republic of China. Today, it has become clear that the policy of the Russian government in the APR is not of one-sided, but of multi-directional character.
At the East Asia Summit, Russian Prime Minister Dmitry Medvedev said that in case of Vietnam's successful accession to the Free Trade Area (FTA) with the countries of the Customs Union, this experience would then be extended to other countries of Southeast Asia. Noteworthy, the majority of Southeast Asian countries have tense political relations with China. Suffice it to recall the incident with Chinese drilling platforms Haiyang Shiyou 981 that was located in disputed waters in May 2014 that subsequently led to anti-Chinese protests in Vietnam.
The multi-vector policy in the APR gives Russia freedom of maneuver and gives Moscow significant economic benefits. The example of the Socialist Republic of Vietnam is indicative at this point, as the country is expected to join the FTA with countries of the Customs Union. Vietnam, in contrast to its popular media image, is a sufficiently developed economic power. The country's economy continues to develop. For the first nine months of 2014, Vietnam's GDP gained 5.6 percent. According to the World Bank, the figure will reach 5.4 percent as of year-end. Nevertheless, the government plans to reach the target of 5.8 percent for this year.
Vietnam is an export-oriented economy, in which a serious increase in exports in 2014 boosts economic development. During the first three quarters of 2014, Vietnam's exports reached 109.6 billion dollars, up 14.2 percent from a year earlier. The growth of export earnings increases manufacturers' confidence. The results of the survey of purchasing managers in the field of industry (PMI) in 13 months was above than 50 points, which indicates improvement of the economic situation.
Vietnam's stock market also shows strong growth. During the first nine months of 2014, VN and HNX stock indexes increased by 19.9 and 30.4 percent respectively. Thus, Vietnamese exchanges entered the top five of fastest growing exchanges in the world.
The Vietnamese government support the national currency - the dong. The rate of the Vietnamese currency is stable. In early 2014, one US dollar cost 21,100 VND, and the rate in November was 21,300VND per one dollar. In ten months of 2014, the consumer price index rose by only 4.5 percent, which allows the central bank of Vietnam lower the rate painlessly. Owing to growing exports and trade balance surplus, the growth of direct foreign investment, the government could significantly replenish its gold reserves. In 2014, their volume reached a record high of 35 billion dollars.
International experts are certain that the Vietnamese economy will continue to develop steadily. According to forecasts from major international institutions, Vietnam's GDP growth will reach the level of six percent in 2015 and seven percent in 2016-2017.
As can be seen, the economic performance of Vietnam is considerably different from that of Russia or Europe. That is why it is highly beneficial for Russia to maintain strong ties with Asia Pacific countries that show rapid economic growth, instead of becoming China's supplier of raw materials. It is very important for Russia to pursue balanced policy on the international arena, seeking benefits in partnership not only with big players, but with seemingly small countries that gradually take the shape of new Asian dragons.
VietNamNet Bridge – Within three years, foreign direct investment capital has soared from $0.5 billion to $2 billions, with a number of foreign companies relocating their factories to Vietnam.
Eighty percent of footwear products in the US market now come from China. However, the situation will be different in the near future.
China is no longer the best supply source for US importers because of the high price of products. Many US companies have left China for Vietnam, which they believe is a more attractive market, according to Matt Priest from the US Footwear Distributors and Retailers Association (FDRA).
If TPP (the Trans Pacific Partnership Agreement) is signed, it is expected that an additional $364 million worth of footwear will be imported by the US from TPP countries, of which $360 million would be from Vietnam.
Do Thi Thu Huong, deputy head of the Import-Export Department of the Ministry of Industry and Trade, said that once the TPP is signed, Vietnamese footwear products will easily enter the TPP market thanks to the low tariff.
The US, for example, will cut tariffs on some products from 50 percent to zero percent.
Many of the biggest footwear manufacturers in the world are present in Vietnam, including Nike, Adidas, Puma, Target Sourcing Services and Dansu Group.
Wolverine Worldwide, the first US company which arrived in Vietnam and set up a factory 20 years ago, has been expanding its business here.
At first, the company planned to focus its investments in China but its management board changed its mind. Scott Thomas, a senior executive at Wolverine Worldwide, said due to new problems in China, the company is considering relocating its factories to other countries, mostly to Vietnam.
The US-based Ever Rite International also relocated its factories from China to Vietnam after it realized that the production costs in China were higher.
Oliver Ng, a senior executive at the group, said Ever Rite International’s last factory in China had been relocated to Vietnam in September 2013. Ten years ago, in 1993, the group set up its first factory in HCM City.
Ever Rite, which now has 52 footwear production lines in Vietnam, is expected to expand rapidly.
A report from the Ministry of Industry and Trade showed that Vietnam exported $10.2 billion worth of footwear in the first 10 months of the year, and hopes to export $12 billion by the end of 2014.
The footwear export turnover accounted for 10 percent of total export turnover, while exports from foreign-invested enterprises made up 70 percent of footwear export turnover.
Major footwear manufacturers entering the country is bad news for Vietnamese manufacturers as competition will be fierce.
“The market pie is too small, while there are too many ‘big fish’,” the director of a privately run footwear company said.
VietNamNet Bridge – A modest 5-10 percent growth rate expected in sales for the upcoming Tet holiday, instead of the 20-30 percent of previous years, has caused suppliers to scale back production plans.
Truong Chi Thien, director of Vinh Thanh Food JSC, a major poultry egg supplier, said in general, the goods volume stored for Tet was 20 percent higher than that of ordinary days. However, he decided that the figure would be lower, at about 10 percent, this year.
“The market demand has been too weak in the last few months and there has been no sign of improvement for the following months. Therefore, we plan to store 5-6 million eggs a month,” said Thien, adding that prices would remain stable.
In an effort to boost sales, Vinh Thanh plans to open vending shops at traditional markets and remote areas. It is also considering marketing ready-made products this year with prices just 20 percent higher than normal eggs.
Director of Ba Huan Food Company Phan Thanh Hung said he had decided to be cautious about his Tet production plan because weak demand was anticipated.
“The output will be just 10-20 percent compared with last year,” he said.
Hung also revealed that Ba Huan would not rely on supermarkets as the only distribution channel but would also sell products at traditional markets, where the majority of housewives buy food, and at small shops in remote areas.
Le Thi Thanh Lam, deputy general director of SG Food, also said that Vietnamese would fasten their belts this Tet because of news about the slow recovery of the national economy.
“We began preparing for the Tet production season in August. However, the output is expected to increase very slightly by 5-10 percent over the last year,” Lam said.
SG Food does not intend to raise selling prices amid current economic difficulties.
Lam went on to say that the Lunar New Year (Tet) will come 1.5 months later than the 2015 New Year, so some analysts predict that the demand for food for family parties will be higher than in previous years.
However, Lam thinks it would be better to keep a close watch over market performance to determine production output, because a lack of sales could lead to big losses.
Van Duc Muoi, general director of Vissan, one of the biggest pork suppliers, also said the volume of goods to be stored for Tet sales would be only 10 percent higher than last year’s.
Meanwhile, sweets manufacturers, including Bibica and Huu Nghi, said they had not made any decisions about output because they still lacked information about Tet demand.
Small merchants at traditional markets also said they would prepare for the high sale season one month before Tet, because they can foresee a low demand.
“If people do not have much money to spend during Tet, they will only think of buying sweets just some days before Tet, after they have received their Tet bonus,” said a merchant at Dong Xuan Market, the biggest wholesale market in Hanoi.
November, 14 2014 08:28:21
A gas station employee fills up a car. Lower domestic fuel prices are believed to have boosted auto sales. — Photo autovn911.com
HA NOI (VNS) — Falling petrol prices, longer financing arrangements and rising consumer confidence are pushing Vietnamese car buyers towards bigger and more expensive cars.
Offering fresh evidence of a sustained rebound in the Vietnamese automotive industry, most major manufacturers saw multi-year highs or all-time highs in sales volume last month, according to figures from the manufacturers which were released yesterday.
Last month, the country's 18 leading vehicle manufacturers sold a combined total of 14,938 units, a 45-per cent year-on-year increase, according to the Viet Nam Automobile Manufacturers Association (VAMA).
Of this figure, cars made up 9,220 units and trucks, 5,718 units. The VAMA data includes SUVs, passenger cars and commercial vehicles.
"This is the 19th consecutive month that industry volume has been higher than that of the same period last year," VAMA chairman Jesus Metelo Arias said in a statement released yesterday.
Meanwhile, sales from January to October increased by 40 per cent year-on-year to 121,648 units. Of these, cars made up 77,150 units, a four-per cent increase year-on-year, and trucks, 44,498 units, a 38-per cent year-on-year increase.
"Lower fuel prices are partly responsible for the continued strength of auto sales," said Luong Dinh Hung, general director of ASC Group, a prominent car dealer in Viet Nam.
Hung cited additional factors contributing to strong demand such as longer financing arrangements, increased consumer confidence and continued pent-up demand, as consumers replaced old vehicles with new ones.
Last week, the prices of RON 92 and RON 95 gasoline were cut by VND950 (4.5 US cents) to VND21,390 ($1.007) and VND21,990 ($1.047) per litre, respectively.
This is the ninth time petrol prices were reduced and the 14th time the prices were adjusted this year. As a result, current petrol prices are equivalent to those in 2012.
Also, a large number of vehicles that will become obsolete this year also helped trigger demand, as the Government required the removal of trucks more than 25 years old and cars more than 20 years old from the country's roads.
According to the Viet Nam Register, a total of 3,388 cars, 13,033 trucks and 67 buses will be taken off the roads this year.
A brighter economic outlook also helped to improve consumer sentiment, as Viet Nam's economic growth rate in 2014 was set at 5.8 per cent and CPI growth at less than seven per cent.
The Ministry of Planning and Investment, which set the growth rate, also predicts the country's gross domestic product growth to reach 5.8 per cent or even higher this year.
"Dealers are welcoming a consistent flow of shoppers into their showrooms, and the pace will likely remain steady through the end of the year," said Do Ngoc Quang, a car analyst with . "The industry is poised for a very busy holiday season."
From January to October, the country imported 51,000 cars worth $1.1 billion, a 76-per cent increase in quantity and 93-per cent increase in value year-on-year, according to the General Office of Statistics.
The figures nearly doubled those of 2013 and registered the highest level in the last five years.
Viet Nam, which has a population of more than 90 million, has around two million cars and 37 million motorcycles. — VNS
Thanh Nien News
HO CHI MINH CITY - Monday, November 03, 2014 19:03
Workers at Dong Hung’s shoe manufacturer and exporter to the US in Binh Duong Province. Photo: Tien Long/Tuoi TreWorkers at Dong Hung’s shoe manufacturer and exporter to the US in Binh Duong Province. Photo: Tien Long/Tuoi Tre
The American Chamber of Commerce (AmCham) expects Vietnam’s export to the US to hit around US$29.4 billion by the end of 2014--making Vietnam the top Southeast Asian supplier to its former foe for the first time in its history.
AmCham predicts bilateral trade will continue to surge to $57 billion in 2020, leaving other Association of Southeast Asian Nations (ASEAN) member states far behind, Tuoi Tre (Youth) newspaper reported.
Vietnam exported around $800 million to the US in 2000, which means the country will have increased trade nearly 36-fold in 14 years.
In the big picture, Vietnam has gone from representing 1 to 22 percent of ASEAN's trade with the US since 2000, beating out Thailand, Malaysia and Indonesia, Tuoi Tre reported recently, citing AmCham.
AmCham said Vietnam’s export to the US will account to 34.1 percent of the bloc's total exports by 2020.
Busy meeting high orders
Workers at Hugo Import Export Company in Ho Chi Minh City say they worked practically round the clock this month--a time they describe as peak season for dragon fruit exports.
They're hoping to ship 80 tons to the US in November, up from 20-30 tons in previous months.
Vuong Dinh Khoat, general director of Hugo, told Tuoi Tre: “We plan to export a total of 400 tons of dragon fruit to the US this year, up 50 tons from last year.”
Business insiders said dragon fruit exports to the US will rise to around 2,000 tons this year from 1,300 tons in 2013.
Nguyen Huu Dat, a plant quarantine official, said Vietnam exported $41.5 million worth of fruit and vegetables to the US during the first nine months of this year--“up an impressive 12 percent year-on-year.”
The US has also begun importing Vietnamese longans and lychee.
Seafood exports to the US reached roughly $1.3 billion in the first nine months of this year, making the US Vietnam’s biggest customer.
Tran Thien Hai, chairman of the Vietnam Association of Seafood Exporters and Processors, said shrimp exports to the US have increased 51.2 percent year-on-year to $820 million. Vietnam is the third-largest shrimp supplier to the US, after Indonesia and India.
Hai said the US began buying more from Vietnam after Thai farms were stricken by a series of diseases.
The most significant growth, according to AmCham, has occurred in the garment and textile sector.
Vietnam’s garment exports rose 14.85 percent in value between last September and this August making it the second-largest clothing exporter to the US after China.
Garments, footwear and woodwork exporters say they're busy with orders until the end of the year, or even next year if manufacturers continue to pivot from China to Vietnam.
Nguyen Van Le, deputy general director of Dong Hung Company in Binh Duong Province , said they have exported 1.78 million pairs of shoes worth around $34 million to the US this year, which accounts to nearly 28 percent of the company’s total export revenue.
“They’ve increased orders but also added complicated demands for their orders, so the pressure is on,” Le said.
Pham Phu Cuong, chairman of the Nha Be Garment Corporation said 35-40 percent of their export revenues come from the US.
“This is a big market. But they always place big orders, which force you to organize your production professionally.”
Even small companies see big potential.
The Vinh Thong Commerce and Manufacturing Company in HCMC exported 5,000 pairs of shoes worth $175,000 to the US this year, but expects to receive orders hundreds of times larger if “our negotiations work out well,” Nguyen Van Duc from the company’s management board said.
“We have identified the US a potential market,” Duc said.
Before signing up as a supplier for the US, the company sent two of its employees to study fashion design in Italy
They also set up a representative office in the US to catch up with local trends and invested hundreds of thousands of dollars in machinery and equipment.
“We even designed our own advertisements. We understand that we won’t be able to compete with China without demonstrating a unique style,” Duc said.
Diep Thanh Kiet, vice chairman of the Vietnam Leather, Footwear and Handbag Association, said the US is turning to Vietnam for two major reasons.
The first is the Trans-Pacific Partnership (TPP) agreement that is expected to cut US tariffs on most products produced in Vietnam and the other is that China is becoming a less competitive supplier.
Wages in China are much higher than Vietnam, in the footwear sector, while Vietnamese workers are just as skillful, Kiet said
“Vietnam is developing a reputation as the place where production costs the least,” he said.
03/11/2014 10: 25
(TBTCO)-according to the Ministry of finance, GOVERNMENT EXCESSIVE revenues in October 2014 estimated 76,800 billion. Accumulated currency 10 months, GOVERNMENT EXCESSIVE 2014 totaled 719,490 billion, with 91.9% of the estimate, rising 15.2 percent compared to the same period in 2013.
GOVERNMENT EXCESSIVE income management measures were tax authorities, customs implement vigorously for 10 months beginning in 2014. Photo illustrations
In particular, inland revenue estimated 10 months estimated to reach 484,890 billion, equal to 90% from the estimate, rising 16.5 percent compared to the same period in 2013.
In particular, revenue from the State sector reached 87% estimate, rising 27.7%; collecting from the public non-State businesses reached 88.5% estimate, rising 6.8 percent; currency from the FDI reached 94% estimate, rising 14.7 percent.
Revenue from crude oil, estimated 10 months estimated to reach 88,570 billion, equal to 104% from the estimate, rising 1.9% compared with the same period in 2013. Contribute to this number, the price of oil than the average payment from the beginning of the year about 111.2 per barrel, higher than 13.2 per barrel compared with the price of construction estimation; billing oil output estimated to reach 12.6 million tons, with 88% of the plan.
As of October 20, 2014, finance KBNN 219,443 TPCP billion, reaching 94.6% of the task of raising capital in the country to offset GOVERNMENT EXCESSIVE spending and investment to grow by 2014.
The market situation remained favorable developments for joint financing, interest rates resembled the rising for the term of 5 years, 10 years (15-year own-term interest rates increased slightly) by the present, the liquidity of the system of URBAN COMMERCIAL still very profuse and long term bonds (from 5 years upwards) are getting the attention of the investors, especially the URBAN COMMERCIAL and investment funds.
Currency balance from import-export activities, estimated currency may reach 10 2014 142,100 billion, with 92.3% estimate, rising 21.9 percent over the same period in 2013 thanks to the import-export turnover in the first ten months reached quite some taxable items and performance, great value rose sharply from the same period.
The remaining revenue from currency gains and other aid.
Made tight fiscal policy, thoroughly saving
The total GOVERNMENT EXCESSIVE spending, estimated to reach 10 88,050 billion; accumulated spending 10 months estimated to reach 853,645 billion, with 84.8% of the estimate. In particular, investment spending estimated to reach 85% estimate, rising 3.1%; to pay the debt and aid estimated to reach 96.2% estimate, rising 29.6%; genus career development of socio-economic, defense, security, state management reaching 85.1% estimate, rising 10.7 percent.
GOVERNMENT EXCESSIVE spending in October was estimated at 11,250 billion; accumulated 10 months was estimated at 134,155 billion, with 59.9% of the target year estimates.
Also according to the Ministry of finance, in order to complete the task of financing-GOVERNMENT EXCESSIVE Congressional, Government Affairs, the Ministry has enhanced direct the management of the budget revenues, tight budget management, savings and efficiency.
In particular, measures to manage GOVERNMENT EXCESSIVE income tax agencies, customs implement vigorously for 10 months beginning in 2014 as: strict control the reimbursement of value added, enhanced urge handles debt collection; strengthen inspection, tax inspection, checking after customs clearance, focused on the business sector has a high risk of tax.
Besides, promoting reform vigorously implement administrative procedures in the field of taxation, customs according to Directive No. 24/CT-TTg dated 5/8/2014 of the Prime Minister; strive for vigorously implementing the goal of reducing the number of hours to process your payment, to increase the number of electronic tax preparation business and a number of local e-payment, facilitating at the highest level for business and people.
In addition, the Finance Ministry has directed the functional unit deployed vigorously Directive No. 25/CT-TTg dated 13/8/2014 of the Prime Minister on the implementation of the tasks of GOVERNMENT EXCESSIVE financial-late 2014.
At the same time, strengthen budget management, actively arrange the task, ensure balanced budgets at all levels; c c thrift, combating waste; the urge, tutorial, check out the ministries, local organizations make./.
Published: 3 Nov 2014 at 18.13 | Viewed: 955 | Comments: 1
HANOI — Vietnam’s credit rating was raised to three levels below investment grade by Fitch Ratings, which said the country’s macroeconomic stability has improved.
A worker walks past a poster promoting a shopping mall in Hanoi Oct 30. Vietnam’s credit rating was raised to three levels below investment grade by Fitch Ratings, which said the country’s macroeconomic stability has improved. (Reuters photo)
The company raised its rating on Vietnam's long-term foreign and local currency debt to BB- from B+, and revised the outlook to stable from positive, it said in a statement today. Standard & Poor's already rates Vietnam at BB-, while Moody's Investors Service raised its assessment in July to B1, four steps below investment grade.
"Vietnam's macroeconomic policy mix has moved towards policies aimed at achieving macroeconomic stability," Fitch said. "Macroeconomic stabilisation has contributed to a sharp turnaround in the current account from a deficit of 3.7% in 2010 to a projected surplus of 4.1% in 2014."
Vietnam's economy expanded 5.62% in the nine months through September from the same period a year earlier. The government cut policy interest rates twice this year, aiming to boost full-year economic growth to 5.8 percent in 2014 and 6.2% next year. Government bonds had a fifth monthly gain in October after inflation eased for a fourth month to the slowest pace since 2009.
The yield on the benchmark five-year government notes fell one basis point to 5.16% today, according to prices from banks compiled by Bloomberg. The dong weakened 0.1% to 21,290 against the US dollar as of 3:55pm local time.
"The rating upgrade will boost investors' confidence, especially foreign ones, and spur them to increase holdings of Vietnamese bonds," Do Ngoc Quynh, the head of treasury at Hanoi-based Bank for Investment & Development of Vietnam, said by telephone today. "Fitch's upgrade helps strengthen the recent uptrend of the notes in the local market."
10/28/2014 9:31:59 AM
Chairman of Ho Chi Minh City’s People’s Committee Le Hoang Quan has asked relevant departments, sectors and district authorities to continue creating favourable conditions to promote stable business operations and production in the city in the last months of the year.
In a meeting held in HCM City on October 27 to review the ten-month socio-economic development and key tasks for the rest of the year, Quan requested the management boards of industrial parks and export processing zones to simplify their administrative procedures, and develop and upgrade their infrastructure in an effort to attract more foreign-invested projects, especially in high-tech.
Quan said most economic targets have been met, with growth rates higher than during the same period in 2013.
In the first ten months of this year, the city’s industrial production value climbed to 6.8%, 0.9% higher than that during the same period last year.
In October alone, retail sales of goods and services were estimated at nearly VND55.9 trillion (US$2.62 billion), up by 10.6% against October last year. For the January-October period, the retail sector recorded an increase of 12% in revenue to about VND530.5 trillion (US$24.9 billion).
Meanwhile, import-export turnover over the last ten months hit nearly VND28 trillion (US$1.3 billion), up by 8.87% compared to the same period last year.
The city took the lead in attracting foreign direct investment (FDI), granting investment certificates to 332 new projects and allowing 107 others to increase their capital, with a total value of US$2.9 billion, representing an increase of 97.6% compared to the same period last year.
Dao Thi Huong Lan, Director of the municipal Department of Finance, said the State budget reached VND213 trillion (around US$10 billion) in the reviewed period, accounting for 94.15% of the estimate for the whole year, a year-on-year increase of nearly 13.5%.
The programme to connect banks and enterprises, which aims to help businesses operating in the city to access loans, proved effective with the total assistance capital reaching VND37.48 trillion (US$1.76 billion), VND7.48 trillion (US$351.5 million) more than the target for the 10-month period, actively helping enterprises solve their capital difficulties.
In the remaining months of 2014, the city will focus on producing goods that will be in high demand on the occasion of New Year.
Promotional activities will be intensified and campaigns to encourage people to use locally produced goods will be run.