BizLIVE - The Ministry of Industry and Trade has decided to cut down more than half of the total business and investment conditions. Foreign investors have ramped up investment in Vietnamese pharmacy to increase sale of their products.
[Round-up] Vietnam Trade Ministry Boldly Cuts Business Conditions, Foreign Investors Flock to Pharmacy Sector
Foreign investors have ramped up investment in Vietnamese pharmacy to increase sale of their products.
Vietnam Trade Ministry Cuts down 675 Business Conditions
The Ministry of Industry and Trade has decided to cut down more than half of the total business and investment conditions, from around 1,200 terms to just 675, as the government is striving to improve the business environment.
“It is such a breakthrough and it's beyond my expectations,” said Prime Minister Nguyen Xuan Phuc. More than half of the business conditions were cut, meaning there will be less administrative burden placed on businesses.
Foreign Capital Flows to Vietnam’s Pharmacy Sector
Attracting foreign capital will allow Vietnamese pharmacy firms improve their competitiveness and develop the national pharmacy industry. However, analysts warn that the market may fall into foreign hands as overseas investors have been increasing their presence in Vietnam by buying stake in Vietnamese pharmacy firms to be able to distribute their products, VietnamNet reported.
A survey conducted by Grant Thornton earlier this year found that the healthcare & pharmacy market is among the three business fields that attract foreign investors most. The two others are food & beverages and retail.
Hyosung to Develop Vietnam as a Strong Base for Growth: President
“On the basis of Hyosung’s own global competitiveness, it will expand its business actively to Vietnam’s various infrastructure areas as well,” Hyosung’s Cho Hyun Joon President has emphasized.
Hyosung Cho Hyun Joon President met with Vietnamese Prime Minister last November and discussed infrastructure and new investment projects in the Southeast Asian nation. Cho Hyun Joon president told the Vietnamese prime minister that he had plans to advance to many fields including apartments, power plants, waste disposal facility, petrochemical industry, ATM and electronic payment in step with Vietnam’s rapid economic growth.
Banks Given Higher Credit Limits
The State Bank of Vietnam (SBV) has approved the extension of credit growth limits for many commercial banks to support the country’s economic growth.
The SBV’s move to extend credit growth limits for commercial banks is understandable as lending of the entire banking system to date this year has hit years’ high.
State Capital at Credit Institutions to Be Assessed
Credit institutions in which the State controls over 50% of registered capital will now be subject to assessment, according to a circular drafted by the Ministry of Finance, according to the Vietnam News Agency.
The assessment will be based on five criteria: total revenue, after-tax profit and after-tax profit margin over equity, bad debt ratio and potentially irrecoverable debt ratio, observance of legal regulations and Government’s policies; and implementation of public utility products and services.
Vietnam’s Mobile Phone Exports to China Surge
Mobile phones and spare parts have become one of Vietnam’s key exports to China with turnover of $1.35 billion as of end of August, up 137% year-on-year, according to the General Department of Vietnam Customs.
In August alone, the figure surged to $546 million, an increase of 132.3% compared to the previous month and seven times higher than that of August 2016.
Association Petitions against Soft Drinks Tax
The Vietnam Beer Alcohol Beverage Association (VBA) has requested the Ministry of Finance to withdraw its proposal to apply a special consumption tax (SCT) of 10% or 20% on soft drinks due to a lack of practical considerations and the state budget.
According to VBA, the ministry’s reason for applying the SCT on soft drinks is to combat obesity. It is a conclusion with lack of practical considerations because in reality the major factors causing obesity and diabetes are fast food and food containing a large volume of sugar.
Vietnam expects Japan to continue providing official development assistance (ODA) for highly-demanded sectors to help Vietnam advance its economy, Deputy Prime Minister Pham Binh Minh has said, pledging effective usage of those loans.
Minh made the statement at a reception for Shinya Ejima, senior vice president at the Japan International Cooperation Agency (JICA), in Hanoi earlier this week.
Vietnam’s foreign debt increased from $50.89 billion in 2011 to $80.84 billion in 2015, of which $39.62 billion was owed by the government and $41.22 billion by local enterprises, according to the finance ministry.
The valuation of Sabeco, Vietnam’s largest beer producer, are very high and even higher than European peers, according to the top executive of Japanese brewer Asahi Group Holdings Ltd., which last year registered to bid for a stake in the Vietnamese company.
“The valuation is very high. Sabeco’s stock hasn’t gone down at all,” Asahi President and Chief Operating Officer Akiyoshi Koji told Bloomberg. “Compared with our deals in Europe, the multiples for a Sabeco deal would be very high.”
South Korea-headquartered Hanwha Techwin on September 21 kicked off construction of a factory to manufacture aircraft engine parts in Hanoi, making it the first project of its kinds in Vietnam.
Hanwha Aero Engines factory, located in the Hoa Lac Hi-tech Park on the outskirts of Hanoi, will churn out parts and components for the world’s top aircraft engine manufacturers such as General Electric (GE), Pratt & Whitney (PW) and Rolls-Royce.