vietnam business review - seiko ideas€¦ · · 2015-06-25despite fmcg sales growth, retailers...
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IN THIS ISSUE
Highlights Despite FMCG sales growth, retailers remain cautious
11
Economy Enterprises
Ha Tinh is focused on attracting Japanese investors
2 Toyota Vietnam debuts junior football clinic and camp
9
Paper enterprises need a plan for upcoming trade deals
3 Vietnam based Kinh Do to form palm oil JV with Indo-Trans Logistics & Malaysia‟s Felda Global Ventures
9
Efforts to boost supporting industries 4
Vietnam becomes world‟s fourth largest garment exporter
4
Banking & Finance Market & Prices
Bank guarantees for property meant to safeguard buyers
5
Stable interest rates as planning 6
Investment Legal Updates
Northern investors migrating south 7 FDI enterprises are officially allowable to export scraps and import components for the purpose of warranty
10
First made-in Vietnam 24-bit chip launched for medical applications
8 New provisions on quality control and maintenance of construction works
10
Adding 07 permissive food additives 10
VIETNAM
BUSINESS
REVIEW
Vol 23
June 24th 2015
Vietnamese beaches win foreign tourist’s hearts
SEIKO IDEAS CORPORATION www.seiko-ideas.com
ECONOMY
Page | 2
More than half of Vietnamese dissatisfied with their salary
Up to 54 percent of employees in
Vietnam are not satisfied with their
current salary, according to a new
survey from the recruitment firm
VietnamWorks. Most of employers
in the country have not been able to
assess salary benchmark data to
determine the best pay for their
current employees and candidates,
said the survey of 204 employers in
June.
Up to 55 percent of questioned
companies said they prefer to base
their salary level on the pre-set
salary budget, and 62 percent find it
wise to determine salary through
direct negotiation. According to
another VietnamWorks survey of
6,000 employees in 2014, 36
percent of respondents said their
monthly salary were under VND6
million (US$285), and 32 percent
from VND6-9 million.
Gaku Echizenya, CEO of
VietnamWorks, said: “87 percent of
companies that VietnamWorks
surveyed haven‟t made use of
professional tools to evaluate salary
levels...Therefore, these companies‟
salary levels may not be competitive
enough to attract quality
candidates.”
[Vietnamworks]
Ha Tinh is focused on attracting Japanese investors.
At the meeting in Hanoi between
Ha Tinh‟s Provincial Party
Secretary Vo Kim Cu and 30
Japanese enterprises, Ha Tinh
province committed to create all
the best conditions would be given
to Japanese investors in various
sectors like infrastructure, logistics,
ports, urban development,
healthcare, education, agriculture,
supporting industries, and oil
refinery in the province. The
meeting was attended by major
Japanese enterprises like JFE
Shoji, Mitsubishi, Sojitz, Vijachip,
Jicem, Tamada, Takagi, J-Power,
Sumitomo Mitsui Banking
Corporation, TK Chemical, and
NNA.
Also according to content at the
meeting, Ha Tinh province will
speed-up site clearances and will
halve the time for processing all
administrative procedures for
investors or build a large industrial
park for Japanese investors in the
time to come, also establish an
office, known as Japan Desk, in
charge of supporting Japanese
doing business and living in
Vietnam and all foreign investor
will be treated the same as local
enterprises and Ha Tinh citizens.
Actually, foreign investors have
been investing over $17 billion in
Ha Tinh such as Taiwan‟ s
Formosa Group ( Formosa‟s steel
and port complex in the top list).
The complex, which will be able to
produce 7.5 million tones of steel
in the first phase, will become
operational by 2017, before
entering the second phase with the
total investment capital of $16
billion to produce 22 million tonnes
of steel per year. And Japan‟s
Mitsubishi planned to invest over
$2.4 billion in building the second
1,200 megawatt thermal power
plant in the 7,000MW Vung Ang
power centre. Meanwhile, South
Korea‟s Samsung proposed to
invest $5 billion in building the third
and fourth plants in the power
centre.
Currently, there are many
Japanese enterprises who were
operating in Vietnam wanted to
open more factories in the country.
Perhaps, it‟s time for Ha Tinh
province to become a good
destination with its advantages
such as large power plants and
Son Duong deep-water seaport..
[R&C Dept.]
SURVEY
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ECONOMY
Page | 3
Sales of consumer packaged goods rebound in Vietnam
After seeing a sharp downturn in
2014, sales of fast moving
consumer goods (FMCG) such as
food and personal care products
have recovered, growing 3.4
percent in volume and 4 percent in
value in the first quarter.
Beverage is the key category
driving the growth recovery, but
other categories such as food and
home care also have shown signs
of recovery in the quarter, said a
new report released by Nielsen.
The report also found that more
than 80 percent of FMCG sales in
Vietnam still come from the
traditional trade channel which
includes around 1.3 million FMCG
stores across the country.
The sheer number of traditional
stores makes Vietnam one of the
most complex markets for FMCG
manufacturers to build distribution
and manage logistics, said the
report.
Local instant noodle producer Hao
Hao, Vinamilk and Coca-Cola are
the top three most supported
brands by retailers.
[Nielsen]
Paper enterprises need a plan for upcoming trade deals
Statistics from the General
Department of Customs showed
that in the first five months of the
year, the country's total turnover of
paper and paper products was
US$49 million, while its import
turnover reached $174.5 million, or
3.5 times higher than that of its
exports. Another report from the
Viet Nam Paper and Pulp
Association revealed that last year,
Viet Nam imported more than 1.5
million tonnes of paper and paper
products, its exports were only
133,000 tonnes. This shows that
the local paper industry is heavily
dependent on imported materials.
Local paper enterprises have no
the right development orientation
such as Hai Tien Paper Company
used to export paper products to
Malaysia and Singapore some
times while they have focused on
the local market now as the
products do not meet the
standards required by the
importing countries.
But now, under the pressure of
Free Trade Agreements (FTAs),
domestic paper businesses have
been urged to improve their
products' quality and
competitiveness if they do not want
to lose the current market shares.
However, many paper enterprises
are afraid that there‟re many
difficulties for them.
Vietnamese paper businesses are
small and have inefficient
production lines, thus their product
quality is not as good as that of
other countries. Moreover, the
most important thing for the paper
industry would be the
establishment of the ASEAN
Economic Community by the end
of this year. The import tax on
paper and paper products among
the Community would be zero by
2018. This could create fierce
competition for the local paper
industry as half of the paper in Viet
Nam was imported from the
ASEAN. The tariff cut would create
opportunities but would also
challenge domestic businesses.
However, local firms have not
clearly understood the
opportunities and challenges
presented by FTAs as they have
only focused on the domestic
market so far.
For this reason, the businesses will
need support from the Government
in terms of capital, infrastructure
and equipment. [ R&C Dept.]
SURVEY
SEIKO IDEAS CORPORATION www.seiko-ideas.com
ECONOMY
Page | 4
Vietnam becomes world’s fourth largest garment exporter
Vietnam is now the fourth largest textile exporter in the world
with 12.18 billion USD earned from these products in the first
six months of this year, according to the Vietnam National
Textile and Garment Group (Vinatex).
The figure represented a 10.26 percent increase from the
same period last year.
The US, the Republic of Korea (RoK) and the European
Union were the biggest importers of Vietnamese products,
posting growth rates of 11.01 percent, 8.33 percent, and 8.2
percent, respectively, against the same period last year. The
results are a positive sign which will enable Vietnam‟s
garment industry to achieve its set target of 27-27.5 billion
USD in export value this year. With favourable movements in
the global economy and the recent signing of free trade
agreements (FTA) between Vietnam and the Eurasian
Economic Union (EAEU), and the RoK, 2015 is forecast to
be a bright year for Vietnam‟s garment industry.
Mentioning opportunities brought about by the Vietnam-
EAEU FTA, Truong said Vietnam is likely to earn over 1
billion USD from shipping textiles to the market if the country
takes full advantage of benefits from the agreement. The
sector will need to make additional efforts to seek new
markets and opportunities, and establish partnerships with
major groups to be able to sign high-value orders in the
remaining month of this year, Truong said.
The export value of Vinatex, which has the largest
production scale in the textile and garment industry in the
country, hit 1.7 billion USD in the two first quarters of this
year, up 10.7 percent over the Jan-June period last year.
The group plans to invest 9.4 trillion VND (441.3 million
USD) by 2017 in 59 textile, dye, garment and infrastructure
projects.
[VNA]
Efforts to Boost Supporting Industries
The Japan External Trade Organization (JETRO), the Ho
Chi Minh City Investment and Trade Promotion Centre
(ITPC) and Reed Tradex Vietnam Company recently signed
a cooperation agreement to organise the “Business
Alliance for Supporting Industry” Show 2015 in Ho Chi
Minh City.
The show is set to take place from October 8 to 10 in Ho Chi
Minh City within the framework of Metalex Vietnam 2015 - the
Vietnam International Exhibition on Machine Tools and
Metalworking Solutions for Production Upgrade. The Business
Alliance for Supporting Industry Show 2015 aims to encourage
parts produces to directly contact with Japanese buyers, and
figure out future demands to build production strategies and
systems to obtain best business results.
Vietnam is emerging as an attractive destination for foreign
investors and this has resulted in higher demand for industrial
parts. This requires industrial companies to understand factors
that affect the development of supporting industries. Hirotaka
Yasuzumi, Besides, this year JETRO will organise many
events to deepen Japan - Vietnam business ties and the
Business Alliance for Supporting Industry will be a highlight of
the event chain. Accordingly, JETRO will set up an exhibition
area and trade connection meeting. The exhibition will
contribute positively to the development of supporting
industries of Vietnam and Ho Chi Minh City will build a
foundation to become a typical production base in ASEAN in
the future.
Incorporated with the “Business Alliance for Supporting
Industry” Show 2015 is Metalex Vietnam 2015, a component of
ASEAN‟s largest metalworking exhibition. With seven
international sections for China, Japan, Germany, South Korea,
Singapore, Taiwan and Thailand, Metalex Vietnam 2015 will
gather world-wide advanced technologies and solutions. The
event also includes a conference to highlight Vietnamese
engineers‟ capabilities.
[Le Phuong]
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BANKING & FINANCE
Page | 5
Bank guarantees for property meant to safeguard buyers
A regulation ordering bank
guarantees to become mandatory
for property purchases, which was
to be completed in the future, has
caused mixed concerns among
property developers and buyers.
Following Article 56 of the Law on
Real Estate Business, to take
effect on July 1, property
developers, before selling or
leasing unfinished or future
property, must obtain guarantees
from eligible commercial banks as
assurances of their financial
obligations to buyers. Accordingly,
in case property developers fail to
hand over apartments to buyers
following commitments, banks
would be responsible for returning
the buyers' money, in line with
signed contracts. The regulation
was expected to protect the rights
of home buyers, as well as
contributing towards cleaning up
the realty market.
For this season, this would
eliminate risks for home buyers, as
their money would be guaranteed
by banks, which would strengthen
overall buyers' confidence. Further,
the regulation would stimulate
home purchases and improve
liquidity in the real estate market.
Financial disputes arising when
property developers failed to
complete their obligations were
also expected to be reduced.
Moreover, bank guarantees
reflected that the project met
certain standards and
development potentials. Therefore,
home buyers could feel secure
when spending money on
guaranteed projects.
However, there were concerns that
the regulation would increase
property prices and cause
disadvantages to small developers.
Guarantee fees might be a factor
to be calculated in property prices,
which would push up selling prices.
Thus, it would be unreasonable to
apply the regulation to all property
developers, as guarantees for
projects of prestige developers
were, in fact, not necessary.
Instead, buyers should be allowed
to request a guarantee if they
found it necessary.
While the regulation was expected
to eliminate incompetent property
developers and enhance market
transparency, this regulation might
burden small developers who
could need to purchase less
favorable guarantee fees, in
comparison to large firms, or might
face difficulties in negotiating with
banks for guarantees. Further,
some voiced concerns that this
would undermine their
competitiveness and even force
them to leave the market. However,
no guarantee fees have been
disclosed, as the fees should be
competitive, several banks said.
Detailed instructions
While several developers were
taking pioneering steps in signing
agreements with commercial
banks to guarantee their property
projects, others remained
confused with the regulation,
claiming detailed instructions about
guarantee procedures were
urgently needed. To date, no
decree or circular outlining the
implementation of the regulation
have been issued.
[R&C Dept., following Vietnamnews]
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BANKING & FINANCE
Page | 6
Stable interest rates as planning
Interest rates in the second half of
this year will remain stable as
inflation has been predicted at 3-
3.5 per cent this year. The interest
rates of the whole banking system
had remained stable and kept
decreasing against the rates last
December, although some banks
had recently raised their deposit
interest rates, causing concerns
about a possible rise in lending
rates in the coming months.
Medium- and long-term [more than
six months] deposit rates have
relatively been stable, though
some large-sized banks had
recently lifted their short-term
[ under six months] deposit rates,
adding that the raise was
unpopular.
The hike to the reason that large-
sized banks had previously cut
their short-term rates significantly
and offered rates lower than that of
other banks thanks to their
abundant liquidity. Therefore, their
hike now made their rates only
equal to that of other banks and
not higher than the average rates
of the whole banking system.
However, the central bank would
continue executing various policies
to keep the rates stable as
targeted earlier this year. The
central bank will closely watch the
market to take timely and suitable
measures through open market
operations, as well as support
liquidity for credit institutions to
meet the target.
According to SBV's report, deposit
interest rates in the first half of the
year reduced by 0.2-0.5 per cent
against that of December last year,
mainly for terms of more than six
months, thereby bringing the
medium- and long-term lending
interest rates down by 0.2-0.3 per
cent to roughly 9-11 per cent per
year. By mid-June, credit rose 5.78
per cent against that of December
last year and up 18.98 per cent
year-on-year, the highest since
2012. Of this, the total outstanding
loans to agricultural and rural
areas surged 7.71 per cent, while
the increasing rates for the exports
of small and medium firms,
supporting industries, and high-
tech firms were 3.9 per cent, 1.88
per cent, and 24.02 per cent,
respectively.
As concerns were raised that high
credit rates to the real estate
sector during the past months
might cause a „bubble' in the
property market as earlier, it‟s said
that the rise was not a jump. The
credit to the real estate sector by
the end of May rose 10.89 per cent
and accounted for 8.3 per cent of
the total outstanding loans,
compared with 7.96 per cent of the
same period last year. The credit
hike for the real estate sector
during the past few months was
positive as loans were mainly
channeled to the construction and
completion of works, which
contributed to reducing the
stockpile of the building materials
sector.
However, the central bank would
continue monitoring the credit flow
to the real estate sector and take
timely measures to control any
possible risk. Besides, the central
bank also affirmed that in the
second half of this year, it would
continue creating policies to
maintain the devaluation of the
Vietnamese dong against the US
dollar by no more than 2 per cent
for the whole year as targeted.
[R&C Dept., following VNS]
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INVESTMENT
Page | 7
Northern investors migrating south
There has been a rising trend of
Hanoians buying properties in
central and southern provinces.
A range of project developers have
begun launching their projects to
the Hanoi market in response to an
increasing demand from the capital
city for properties in the central
and southern regions of the
country. Such developers include
Phu My Hung, VinaCapital,
CapitaLand, Kepple Land and
many others. During the recent
launch of The Point project to the
Hanoian market, a representative
from VinaLiving (of VinaCapital)
said that Hanoian buyers
dominated its projects, with around
70 per cent of total buyers coming
from the capital. Properties in the
south and central provinces are
attractive to Hanoians, as they can
buy-to-lease the properties, or
purchase them as investment
opportunities.
NovaLand recently introduced a
number of apartments located in
Ho Chi Minh City to the real estate
market in Hanoi. Among those,
about 300 units from The Sun
Avenue were introduced to the
northern buyers. NovaLand has
built many large scale projects
such as the Sunrise City, The
Prince Residences, Tropic Garden
and Lexington Residence. Many of
those were highly sought after by
buyers from the northern region.
NovaLand recently is looking for
buyers who want to find a property
and sublease it for a profit. The
profit levels of buy-to-let in Ho Chi
Minh City are now relatively high–
up to 8 per cent per year.
Besides, STDA property
transaction centre, the distributor
of The Sun Avenue aimed to
attract northern buyers who are
living in Ho Chi Minh City. In
district 7, around 40 per cent of
purchases were made by northern
buyers. In order to
be attractive to
northern buyers,
properties must be
proven to return
high profits.
According to our
estimation, the
profit level of high-end apartment
projects in the Ho Chi Minh City
centre could be up from 7 to 8 per
cent, compared to levels in Hanoi
of only 3 to 4 per cent.
In addition, other factors that
attract northern buyers to
properties in Ho Chi Minh City are
the high population density and a
higher amount of foreigners.
Meanwhile, properties in the
central tourist hotspot city of Nha
Trang are also popular among
buyers from Hanoi and Ho Chi
Minh City. According to Savills
Vietnam, up to the second quarter
of this year, Nha Trang has more
than 2,800 units from 10 projects.
Almost all of those projects are
located in the beachfront area,
especially in Tran Phu street, with
the average price ranging from
VND23million to 60 million ($1,095
to $2,857) per square metre. The
most desired units are typically
one and two bedrooms, and they
significantly easier to lease.
Savills also reported that the
majority of these buyers came
from Hanoi and Ho Chi Minh City
with the desire to secure a
property as a second home or a
buy-to-lease investment.
[VIR]
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INVESTMENT
Page | 8
First made-in Vietnam 24-bit chip launched for medical applications
The Integrated Circuit Design
Research and Education Centre
(ICDREC) under the Vietnam
National University, Ho Chi Minh
City launched its ADC 24-bit chip,
the first of its kind in the country to
be used in electronic measurement
devices.
The chip is a product under the
project „Researching and
designing prototype image
compression chip using JPEG2000
standard and ADC versatile chip
for medical applications‟ under the
State-level scientific and
technological development
programme.
The 24-bit ADC chip converts
analog signals into digital signals
(Analog-to-Digital Converter) with
high accuracy. The product is
highly competitive and similar to
those on the world market with
superior technical features such as
24-bit and 18-bit effective
resolution (ENOB), over-sampling
rate - OSR 512, 8- input channels
and operating voltage at 3.3 V.
The ADC chip is designed with
level 2 delta-sigma architecture
and CIFB structure.
According to the ICDREC, with the
ability to detect very small
fluctuation with high accuracy, the
24-bit ADC chip is used in
electronic measurement devices
including galvanometer and
seismographs, and in the health
sector in electrocardiogram (ECG)
and medical signal processing.
Prior to the ADC-24bit chip,
ICDREC also successfully
manufactured the country‟s first
SG8V1 chip and commercialized
the product in 2014. The SG8V1
chip is currently used in the
manufacturing of air conditioners,
sphygmomanometers, electronic
galvanometers, and vehicle
monitoring devices.
Also according to recent news,
The Vietnam National University
Integrated Circuit Design Research
and Education Center (ICDREC)
has signed a cooperation contract
with Japanese CM
Engineering. Under the contract,
ICDREC will make wireless sensor
chips for designing power source
units in microprocessors for radio
multi-band, multi-system
transceivers. CDREC will have the
task of making the wireless sensor
chip designed to power supply
parts in microprocessor radio
transceivers and multi-band, multi-
systems. CME is the firm that
specializes in providing the
designs of the examination and
certification services as well as
providing highly competitive IPs to
customers for the development of
wireless processor SoC. SoC or
SOC is an integrated circuit (IC)
that integrates all components of a
computer or other electronic
system into a single chip.
In order to become the partner of
CME, ICDREC has to prove it can
satisfy the high requirements set
by the Japanese firm. Japanese
firms are well known as being very
choosy in selecting partners.
ICDREC spent two years learning
the center‟s capability in meeting
the requirements in infrastructure
items, chip‟s quality and the labor
force before making final decisions.
The cooperation contract is a new
step taken in IC industry
development cooperation between
Vietnam and Japan and
cooperation in analog IC design.
An expert noted that success in
the cooperation deal will create
prerequisites to further promote
the production of high-quality ICs
to serve society‟s needs, and
create a solid foundation for the
production of good engineers for
Vietnam‟s IC industry.
[R&C Dept., following Internetnews]
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ENTERPRISES
Page | 9
Vietnam based Kinh Do to form palm oil JV with Indo-Trans Logistics & Malaysia’s Felda Global Ventures
Vietnam-based food firm Kinh Do along with Indo-Trans
Logistics Corporation (ITL) and Malaysia‟sFelda Global
Ventures (FGV) signed a memorandum of understanding to
establish a joint venture that will produce bottled palm oil for the
Vietnamese market.
Kinh Do will contribute 45 per cent to the joint venture‟s capital,
while ITL and the Malaysian investor will collectively own 55 per
cent. The JV is expected to be launched within the next six
months.
With its experience of operating in the palm oil refining
industry, the world‟s largest producer of crude palm oil, FGV will
assist the JV by guaranteeing high quality products, Kinh Do
said in a statement.
Meanwhile, ITL will provide integrated solutions for local
logistics, maritime and aviation transport management. Based on
combining the strengths of three corporations, the joint venture
company will become a strong, successful bottled oil firm in the
market. The JV will not build a new plant during its inception.
Instead, it will capitalize on current available infrastructure to
implement production with raw materials imported from Malaysia
by FGV and ITL.
Kinh Do, headquartered in the southern Ho Chi Minh City,
entered the cooking oil business last year after acquiring some
24 per cent of the Vietnam Vegetable Oil Industry
Corporation (Vocarimex) during its initial public offer in July. It
has plans to consolidate its presence in Vocarimex by
investing another VND530 billion ($24.5 million) in the newly
equitised state firm, increasing the holding to 51 per cent.
Beyond the oil segment, Kinh Do has also formed a $30 million
instant food JV with Taiwan-investedSaigon Ve Wong Co Ltd,
where it owns 49 per cent stake.
Latest financial data show that the Vietnamese firm earned more
than VND1 trillion in revenue for the first quarter, an increase of
28 per cent year-on-year. Profit before tax remained stable at
VND47 billion. [Following Dealstreetasia]
Toyota Vietnam debuts junior football clinic and camp
The program, supported by the Ministry of Education and
Training (MOET), will take place in four cities – Hanoi, Danang,
Can Tho and HCMC – from July 5 to August 31.
Yoshihisa Maruta, president of TMV, said, “The Toyota Junior
Football Clinic & Camp continues our commitment to nurture
young football talents in Vietnam at the grassroots level. We
believe that this program will contribute to the physical and
mental development of the children and encourage their love to
football.”
The program will not only teach fundamental skills and
techniques of football playing for children, but also teach them
the fair-play spirit and teamwork that can support them in life.
The program has invited Nguyen Hong Son, a professional
coach in Vietnam, to be in charge of specialty, coaching,
evaluating and selecting. As one of the most outstanding
football players in the national team of Vietnam and The Cong
club from 1995 to 2001, he has a lot of experience in and
passion for football development.
Toyota Junior Football Clinic & Camp 2015 includes three main
activities including the selection round in Hanoi, Danang,
HCMC and Can Tho from July 5 to 26 this year, in which the
top 30 will be chosen. Camping & Training will take place from
August 8 to 14 in HCMC for the 30 selected players and a
friendly match in Japan with junior teams of the Japan
Professional Football League by the end of August.
Toyota Junior Football Clinic & Camp 2015 is under the Toyota
Mekong Football Project, which was initiated by Toyota Motor
Asia Pacific (TMAP) in 2014 among the Mekong countries. The
Toyota Mekong Project consists of Toyota Mekong Club
Championship and Toyota Mekong Football Challenge.
In 2014, TMV, in cooperation with TMAP and VPF, organized
the Toyota Mekong Club Championship in Binh Duong
Province, with the four best football clubs in the Mekong
countries – Laos, Cambodia, Myanmar and Vietnam taking part.
Becamex Binh Duong of Vietnam won the event.
TMV is the main sponsor of Toyota V-league 2015, the biggest
football tournament in Vietnam. [Talkvienam]
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LEGAL UPDATES
Page | 10
FDI enterprises are officially allowable to export scraps and import components for the purpose of warranty
Official letter No. 3765/BCT-XNK dated April 17, 2015 of the Ministry of Industry and Trade regarding the export of scraps, wastes;
import of supplies, components for the purpose of product warranty of foreign direct investment enterprises (FDI enterprises)
The document is to reply to official letter No. 2139/TCHQ-GSQL dated March 16, 2015 of the General Department of Vietnam Customs
proposing that FDI enterprises to be allowable to export scraps, waste abroad and import components, supplies serving the warranty
Accordingly, basically, the Ministry of Industry and Trade agrees with the two proposals of the General Department of Vietnam Customs.
However, there are some notable points as follows:
- With respect to enterprises directly manufacturing, they are allowed to export scraps, waste without the requirement of supplement to the
investment certificate because scraps, waste obtained from the production process of products (which are specified in the investment
certificate) are belonged to the enterprises‟ ownership and the enterprises have the right to decide them through export
- With respect to enterprises investing in treatment systems of scraps, waste or enterprises trading the export of scraps, waste, they shall carry
out in accordance contents stated in the their investment certificates or business licenses
Regarding the import of components, supplies for the purpose of warranty, FDI enterprises are not required to supplement name, categories of
components, supplies, HS codes to the investment certificates or business licenses. However, if FDI enterprises import goods for trading, they
are only allowable to import components, supplies serving the warranty appropriate to goods items stated in the investment certificates or
business licenses, goods sale and purchase documents and customs declaration.
New provisions on quality control and maintenance of construction works
Decree No. 46/2015/ND-CP dated May 12, 2015 of the Government on quality
control and maintenance of construction works
This Decree provides the guidance on Construction Law No. 50/2014/QH13 in terms of
the construction work quality control in the inspection, design and construction
activities and in terms of maintenance of construction works and resolution of
construction work incidents arising during the construction. One of the new points of
this Circular is to supplement the provision on the minimum warranty deposit towards
works using state capital (Clause 7 Article 35)
Accordingly, contractors constructing works using state capital must deposit for works
warranty at least 3% of contract value (applicable to special grade and grade I works)
and at least 5% of contract value, applicable to other works
Construction works using other capital may be referred to such minimum rates for the
application. In addition, this Decree also supplements the provision that grade III works
must not prepare the specific maintenance processes for each works (Clause 3 Article
38)
This Decree takes effect from July 01st, 2015 and replaces the Decree
No. 114/2010/ND-CP dated December 06, 2010 and Decree No. 15/2013/ND-CP
dated
February 06, 2013. Enclosed with this Decree the Appendixes:
- Appendix I. Classification of construction works
- Appendix II. List of works/work items that exert impacts on community safety (must be
inspected the acceptance tasks by competent agencies).
Adding 07 permissive food additives
Circular No. 08/2015/TT-BYT dated May 11,
2015 of the Ministry of Health on providing
amendments to a number of articles of the
Circular No. 27/2012/TT-BYT dated November
30, 2012 by the Minister of Health providing
guidance on the management of food
additives
This Circular is to amend, supplement to Annex
1 and Annex 2 of Circular No. 27/2012/TT-
BYT as follows:
- To add 07 food additives to the List of
permissive food additives promulgated with
Annex 1
- To amend the maximum limits of food
additives promulgated with Annex 2
Accordingly, 07 food additives to be added
include: Vegetable carbon, Red cabbage colour
(colouring), Succinic acid, Potassium hydrogen
sulfate (acidity regulator), Alanin, DL-, Glycine,
Glycyrrhzin (flavor enhancer, sweetener). This
Circular takes effect from July 01st, 2015.
[Ms Phuong Thao]
SEIKO IDEAS CORPORATION www.seiko-ideas.com
HIGHLIGHTS
Page | 11
Despite FMCG sales growth, retailers remain cautious
Fast Moving Consumer Goods
(FMCG) sales have shown signs
of recovery in the first quarter of
2015, but retailers remain
cautious about the future,
according to the latest report
released by international research
agency Nielsen.
The first quarter witnessed a 3.4 per
cent volume growth in the six key
cities of Hanoi, Ho Chi Minh City,
Haiphong, Cantho, Nha Trang and
Danang, following a sharp downturn
in 2014. Beverage is the key factor
behind growth recovery, but other
categories such as food and home
care are also picking up. The report
also found that more than 80 per
cent of FMCG sales in Vietnam still
comes from traditional trade
channels which include around
1.3,million FMCG stores across the
country. The sheer number of
traditional stores makes Vietnam
one of the most complex markets for
FMCG manufacturers to build
distribution chains and manage
logistics.
Furthermore, only 30 per cent of
these traditional stores contribute to
the top 80 per cent of sales.
Therefore, to win in this traditional-
trade dominated market,
manufacturers must identify the right
stores to target, which is not an easy
feat in such a large, dynamic and
ever-changing retail market. In
addition to the complexity and a
large number of traditional stores,
the power to make or break a brand
or product lies with traditional retail
store owners. The report shows that
only 70 per cent of traditional retail
stores comply with manufacturers‟
request to stock their products,
highlighting the importance of
winning over a retailer.
Among the brands most supported
by Vietnamese retailers, Hao Hao,
Vinamilk and Coca-Cola stand at the
top, with more than half of store
owners indicating willingness to
stock their products more and
recommend them to shoppers.
Despite the growth of FMCG, the
Retailer Confidence Index reached
the score of only 71, which shows
significant levels of hesitation. The
main reason is that retailers are
mainly concerned about what
directly impacted their businesses,
such as extra stock, margin and
customer services support.
Therefore, it is critical for
manufacturers to completely
understand these concerns, identify
the right stores to target and ensure
that retailers comply and stock their
products in-store throughout the year.
This requires a combination of
different strategies based on retailer
and shopper understanding in order
to build a picture of success for sales
and to execute in the market.
With such a complex retail market, it
is essential for manufacturers to
identify the right stores to target their
priority investment. Only when this
stage is completed can
manufacturers focus on launching a
logical attack plan for market
penetration, sales force deployment,
direct vs. in-direct store strategy and
stock availability. A picture of
success is normally comprised of a
combination of pricing, assortment,
trade activity and in-store
communication. However, the big
challenge for manufacturers is to find
a way to ensure that these
component parts are executed in
store and complied by retailers.
[VIR]
SEIKO IDEAS CORPORATION www.seiko-ideas.com
CONTACT
Page | 12
SEIKO IDEAS CORPORATION
Our services Training (Languages & Soft skills)
Investment Consulting
Market Research - Business Matching
Translation - Interpretation
Address Floor 5th - A Chau Building
No.24 Linh Lang str., Ba Dinh dist., Hanoi, VN
Telephone +84-4-6275-5246 ; +84-4-6273-6989
Fax +84-4-6273-6988
Website www.seiko-ideas.com
Person in charge Le Thu Trang (Ms.)
Mobile +84-97-8363-289
Email [email protected]
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