China is a non-market economy: nine steel associations

“The global steel industry is currently suffering from a crisis of overcapacity and the Chinese steel industry is the predominant global contributor to this problem. There is almost 700 million metric tons of excess steel capacity globally today. China’s overwhelmingly state-owned and state-supported steel industry has an overcapacity ranging from 336 to 425 million metric tons and it is expected to grow in the coming years. This situation, together with a declining steel consumption, has resulted in record levels of steel exports from China to the rest of the world in 2014 – and which are on track to exceed 100 million metric tons this year. Read more

World Bank: Vietnam’s private sector minimum wage is high, 58% of the median wage

A key benchmark of minimum wages is the relationship to median wages, and for Vietnam the picture differs sharply between the government and private sectors. Vietnam’s state sector wage is low by global and regional standards at around 30% of the median wage, while the private sector minimum wage is high, with the average ratio of minimum to median wage around 58%.

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Continuing to reform the investment and business climate: Turning Words into Action

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.

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VINATEX raises $58 million in IPO

Vinatex logoVietnam’s largest apparel manufacturer and exporter Vinatex raised VND1.22 trillion ($58 million) in an initial public offering, but the company’s shares may not start trading for years.

Vinatex—the Vietnam National Textile and Garment Group—said it sold 90% of the 122 million shares offered at the IPO at an average price of VND11,000 a share. The number of shares sold accounts for 24.4% of the company’s total shares. Read more

Vinatex delays IPO again

Vinatex logoFrom Jul 22 to September 30. In a previous move in 2013, Vinatex pushed its IPO date back by a year to July 22, 2014.

The reason, according to Vinatex, is that potential investors did not have enough time between roadshows and the deadline for receiving bids to effectively research Vinatex and come to a decision.

Therefore, to give potential investors more time, Vinatex asked for and received permission from the prime minister to push the IPO to September 30. Read more

Vinatex to launch IPO July 22

Vinatex logoNearly 122 million out of 500 million shares, with a face value of 10,000 dong (US$ 0.47) will be offered to the public through the Ho Chi Minh Stock Exchange on July 22.

In addition, about 3 million shares would be sold to employees of Vinatex, while another 120 million shares would be offered to strategic partners of the company. Post-IPO, the Vietnamese Government would retain a 5 trillion dong or 51 percent share in the company.

In 2013, Vinatex’s export turnover reached $2.9 billion, and the company is striving to achieve export turnover of $5 billion by 2020.
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Vietnam falling short in tackling corruption: Party Secretary Nguyen Phu Trong

Party Secretary - DT PCTNVietnam’s efforts to curb corruption have fallen short of expectations, the Communist Party said. The persistence of corruption across the country could deter future investment from overseas companies, according to Fred Burke, managing partner of Baker & McKenzie (Vietnam) Ltd. in Ho Chi Minh City. “Corruption in Vietnam is a serious consideration for foreign investors,” Burke, who is the representative for the American Chamber of Commerce in Vietnam on the Ministry of Justice’s Advisory Council on Administrative Procedure Reform, said in an e-mail. “It comes up in all kinds of businesses. When the consequences in today’s super-compliance minded global enforcement environment are taken into account, the Vietnam stop on their itinerary may just not be worth it.” Read more

Vietnam Airlines and many other SOE IPOs expected in 2014

Aerial View of Coastline of TahitiVietnam Airlines, earned a pre-tax profit of VND533 billion ($25.3 million) in 2013, 34% more than the year’s target on total revenue of VND72.6 trillion (USD3.4 billion), up 8.5% from the year’s plan. They carried 15 million passengers, with ooccupancy ratios of 79.5%, setting a record. The Vietnam Textile and Garment Group (VINATEX) is expected to conduct an IPO in the first quarter 2014. Vietnam’s garment exports in 2013 were estimated at $20.4 billion. In 2014, foreign investors looking for investment opportunities in the textile and apparel industry will be strong because the sector will be one of the biggest gainers from TPP, with exports estimated at $30 billion in 2020 and $55 billion in 2030. Read more

Vietnam’s Policies and Financial Markets 2014 • Wed, Feb 26

Vu Viet Ngoan, Chairman, National Financial Supervisory CommissionMr. Vũ Viết Ngoạn, Chairman of the National Financial Supervisory Commission of Vietnam, will discuss Vietnam’s policies and financial markets in 2014.  Key issues regarding restructuring of the banking system, dealing with non-performing loans, and the outlook for financial markets’ impact on Vietnam’s macroeconomy as well as on business operations in Vietnam. The National Financial Supervisory Commission advises the Prime Minister about coordinating supervision of national financial markets (banking , securities , insurance), and helps the Prime Minister monitor national financial markets. Read more

Secretary of State John Kerry: Remarks to AmCham and Fulbright Economics Program

SecState John Kerry, Ambassador David Shear“I want to thank the American Chamber of Commerce. The American Chamber of Commerce Vietnam and the Vietnam Chamber of Commerce and industry have made just a gigantic difference here. AmCham’s experience in Vietnam has really ushered in a new era of cooperation for the bilateral trade agreement in 2001, to the WTO session in 2007, and now we are working on the TPP, Trans-Pacific Partnership. I’ll say a word about it.

But just think about this for a minute: Our bilateral trade has grown 50-fold, 50 times since 1995, to more than $25 billion a year now. Vietnam has the potential to become one of the United States’ leading economic partners in the region, and we’re going to continue to work at that. Read more