Vietnam’s GDP is about $198 billion (WB);exports are about $162.1 billion. Exports from FDI factories account for $115.1 billion, 71% of total exports. And 90% of the value of Vietnam’s exports are imported components and materials. In 2009, FDI accounted for 41% of Vietnam’s exports. Read more
VCCI proposed 6 ~ 7%, and in an Aug 6 statement said that 10% is the highest level that enterprises could endure to ensure their survival and sustainable development. If the minimum wage is increased by 10% next year, enterprises costs will increase by 17-18% due to increased wages, insurance premiums and labor union fees for employees.
The business expansion of large South Korean firms, such as Hyosung, Lotte, and Samsung, has attracted hundreds of supplier companies to Vietnam, supported by the Korea-Vietnam FTA and the TPP.
Hyosung on May 6 received an investment certificate for a $660 million industrial fiber project in Dong Nai. This is Hyosung’s third project in Vietnam. The other two projects, also in Dong Nai, are capitalized at $995 million.
The event was organised by the National Assembly’s economic committee, the Viet Nam Academy of Social Sciences, the Viet Nam Chamber of Commerce and Industry and the Central Institute for Economic Management. Opening the event, chairman of the National Assembly’s economic committee, Nguyen Van Giau, asked experts to assess the feasibility of implementing the 2015 socio-economic targets approved by the National Assembly.He said the targets concentrated on removing difficulties in production and business, restructuring the economy and improving competitiveness, efficiency and capacity.
HA NOI (VNS) — The Prime Minister will focus on improving the business environment and strengthening the economy’s ability to compete in 2015 and 2016.
Key areas of a Government resolution released yesterday include pushing for reforms to reduce time-consuming and wasteful administrative procedures, enhancing governmental offices’ transparency and accountability, and adopting regulations that are in accordance with international rules. Read more
Small enterprises are a vital link in Vietnam’s aspirations to become a global manufacturing dynamo as the country gears up to sign a slew of international trade deals, but many of these firms are uncompetitive, poorly managed and sunken by debt.
“SMEs’ limited knowledge of the market become even more limited amid deeper integration,” said former central bank governor Cao Si Kiem, now chairman of Vietnam’s SME association.
Support industries are weak and few firms have the capital or expertise to join a supply chain for resident FDI giants such as Samsung Electronics, LG Electronics, Microsoft, and Intel.
Such weaknesses could expose Vietnam as it braces for an influx of investment once a Trans-Pacific Partnership (TPP). Read more
Samsung is willing to partner with local part suppliers but there are in fact few qualified businesses. The South Korean electronics firm will prioritize placing orders at local businesses if they are able to meet three standards: product quality, delivery time, and price.
The localization rate – the amount of materials and parts that can be sourced locally – at the Samsung facility remains at around 39%. But this figure mostly represents the foreign direct investment (FDI) suppliers, while there are very few 100 percent Vietnamese businesses supplying parts to Samsung. Read more
on Fri, Au 29, by issuing Decision 2279/QĐ-BKHCN which stopped implementation of Circular No 20/ 2014/TT-BKHCN. According to the MoST web-site, “organizations and individuals as well as government agencies have not been able to prepare implementation of Circular No. 20. The decision to postpone implementation was made by the Prime Minister at the regular monthly Government (Cabinet) meeting in August. Read more
Despite rapid export growth in recent years, the ratio of export business is falling at domestically-owned firms. FDI enterprises contributed to 61.4% of the total export revenues in 2013. However, most of these businesses are engaged in labor using imported raw materials and are less connected to domestic suppliers. In other words, most Vietnamese companies are not benefitting from export growth. Read more