Vietnam, in economic reform drive, eases foreign ownershispan caspans on some stocks

Long-awaited new rules allowing foreigners to take bigger stakes in Vietnamese equities took effect on Tuesday, but confusion over which sectors are eligible could dim their investor appeal.

The move to allow foreign shareholdings of up to 100 percent in some firms, versus the previous 49 percent ceiling, is one of the most liberal measures yet adopted as Vietnam pursues broad economic reform.

Vietnam is also bidding to have its VN Index included in MSCI"s emerging market index, increasing its appeal to a wider range of investors.

The VN Index is the only Southeast Asia gauge to have gained this year and "stands out in Asia", investment advisor Marc Faber, writer of the Gloom, Boom & Doom Report, told CNBC recently.

But with the government yet to provide detailed guidance on which sectors are restricted and which will be opened, investors say Vietnam"s "grand opening" is unlikely to raise pulses.

Le Anh Tuan, chief investment officer at Dragon Capital, said foreigners won"t jump in yet.

"Foreign investors only care when the new rules are actually implemented, not a promise to implement," he said.

The delay in raising the foreign ownership ceiling has frustrated investors keen to tap Vietnam"s potential. Now they must contend with rules that appear complex, vague and could cause regulatory overlaps with sector-specific legislation, banking for example.

Except sectors carrying conditions on foreign investments, the decree says full foreign ownership is allowed in areas Vietnam has committed in unspecified international agreements to liberalising – unless subject to other laws.

In a research note, Vietnamese fund Dragon Capital said the easing of restrictions would effectively be staggered while regulators classify dozens of sectors, muddied by multilateral trade deals under negotiation.

But where there"s clarity, there have been big gains.

Shares in top insurer BaoViet Holdings soared 65 percent over a two-week period in July to a high of over three years after the finance minister said insurers would have no foreign ownership ceiling.

Top broker Saigon Securities Incorp climbed 6.64 percent on Friday after the State Securities Commission (SSC) confirmed it could remove foreign limits.

Vietnam, in economic reform drive, eases foreign ownershispan caspans on some stocks

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National Day flashback: Vietnam’s famous spots then and now

As Vietnam’s National Day (September 2) approaches, let us take a look at some historic places in Hanoi and Ho Chi Minh City before and after September 2, 1945, which marked the independence of the country from French colonial rule.

Photos collected by Zing.vn.

On August 19, 1945, Viet Minh forces staged a grand meeting in the square in front of the Hanoi Opera House, which directly led to the general uprisings against French rule throughout the country.

The Hanoi Opera House now

Tens of thousands of people gather in Rue Paul Bert (currently Trang Tien Street) in Hanoi on August 19, 1945.

Trang Tien Street now

Viet Minh forces surround the Tonkin governor’s palace (currently the Government Guesthouse) in Hanoi on August 19, 1945.

The Government Guesthouse now

St. Joseph’s Cathedral in Hanoi on August 19, 1945

The cathedral now

Dong Xuan Market in Hanoi in 1945

Dong Xuan Market now

Saigon Notre-Dame Basilica before 1945

Saigon Notre-Dame Cathedral now

Nha Rong Wharf in Saigon before 1945

Nha Rong Wharf now

Ben Thanh Market in Saigon before 1945

Ben Thanh Market now

The building on the right is the former French Colonial Railway Office

The building now

Tan Dinh Market in Saigon before 1945

Tan Dinh Market now

The Saigon Zoo and Botanical Garden before 1945

Saigon Zoo now

Mong Bridge over Ben Nghe Canal linking Saigon’s Districts 1 and 4 was built in 1893-94.

The bridge now

Source: thanhniennews.com

National Day flashback: Vietnam’s famous spots then and now

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Registrspantion of nspantionspanlity spannd rights for spanircrspanft required

Aircraft will be registered as Vietnamese to operate in Viet Nam from October 1. — Photo nld.com.vn

HA NOI (Biz Hub) – Aircraft owned by Vietnamese organisations or individuals and those lease-purchased or leased without crews for 24 months or longer must be registered as Vietnamese to operate in Viet Nam.

This rule will go into effect on October 1. The registration must be made within six months of importing the aircraft into Viet Nam.

These requirements were noted in the recently released Government Decree No. 68 on the registration of nationality of and rights to aircraft.

The Decree prescribes the registration and deregistration of nationality of and rights to aircraft; grant of codes for registration and deregistration of international interests for Vietnamese nationality aircraft; and irrevocable deregistration and export request authorization.

The new regulations do not apply to military aircraft, special-use aircraft for customs and public security forces and other aircraft used for performing state tasks, except those used for civil purposes.

Under the Decree, to be eligible for the registration of Vietnamese nationality, the aircraft must not bear the nationality of any other country or have had the nationality of a foreign country deregistered. It must also have all the valid paperwork to prove aircraft ownership or the right to possession of the aircraft under lease or lease-purchase terms. In addition, it must meet the requirements on age of the used aircraft (if any) and must satisfy the law-prescribed conditions and requirements related to ensuring national defense and security, aviation safety and security and environmental protection.

This Decree will replace Government Decrees No. 70/2007/ND-CP of April 20, 2007, and No. 50/2012/ND-CP of June 11, 2012.- VNS

Registrspantion of nspantionspanlity spannd rights for spanircrspanft required

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Vietnam economy to undergo sea changes after EU trade spanact takes effect

Vietnam has agreed to drastically change its economic structure, including the elimination of uncompetitive firms and the refinement of a new generation of businesses, when choosing to enter a free trade agreement (FTA) with the EU, a German expert has said.

Some people are concerned about the fate of Vietnam’s small- and medium-size enterprises as cheaper European goods may be imported into the Southeast Asian country in huge amounts after the Vietnam-EU trade pact takes effect, Erwin Schweisshelm, chief representative of Germany’s Friedrich Ebert Stiftung Institute in Vietnam, said at a seminar in Ho Chi Minh City last week.

As a side effect of the economic integration game, only firms with ample capital resources and quality products or services can survive, whereas incompetent companies will have to exit the market, Schweisshelm remarked at the seminar on the legal perspective of the Vietnam-EU FTA on August 27.

Meat imports from the EU into Vietnam will compete with the local livestock industry so enterprises operating in the sector must try to survive, or they will be forced to go bankrupt in trying to do so, leaving only the fittest to make it through, he said.

The Vietnam-EU pact is the first such agreement that the union has ever signed with any Asian countries, and it is seen as the benchmark for other FTAs the bloc will clinch with other trade partners in the future, according to Schweisshelm.

Vietnam and the EU on August 4 reached agreement in principle for a free trade pact after concluding many sessions of negotiations from June 2012 to August 2015, with a view to ensuring an effective environment for trade and investment relations.

The in-principle trade deal includes the elimination of nearly all tariffs, at over 99 percent, for the two sides, in which Vietnam will liberalize the tariffs over a 10-year period and the EU will do so over a 7-year period.

The agreement, which is expected to take effect from the end of next year, also covers non-tariff barriers to trade and other trade-related aspects such as public procurement, regulatory issues, competition, services, investment, intellectual property rights, and sustainable development.

Accordingly, 99 percent of import tariffs between Vietnam and the EU will be abolished and about 65 percent of Vietnamese goods exported to the union will be entitled to tax exemption rights after the agreement enters into force, Schweisshelm said.

Agricultural and aquatic products, garment-textile and footwear shipments from Vietnam will be the biggest beneficiaries, as their exporters will be exempt from all import taxes within the maximum time frame of seven years.

But what the EU really wants when giving such incentives to Vietnamese goods is the real improvement in the production of those products, the increment of Vietnamese firms’ capacity, and their higher position in the global supply chain, the German representative added.

One of the measures introduced via the FTA to accelerate the progress is the strict rule of origin, he said.

"For example, for garment and textile products, the rule of origin consists of two phases, including that the sewing process must be done in Vietnam,” he said.

“But this is easier to meet than the ‘yarn forward rule of origin’ that the U.S. requests in its FTA negotiations with Vietnam,” he said.

The textile and dyeing sector of Vietnam has not developed so the country has to import materials from other countries in the region such as China.

So as to get rid of the dependence on imports from China, Vietnamese firms must roll up sleeves and begin to engage in the making of those materials so that the final products will be entitled to tax cuts when entering the EU, Schweisshelm said.

Establishing joint ventures with foreign companies, like the way local textile companies are working with Chinese or Hong Kong investors on building material production areas in Vietnam, in order to meet the provisions of the FTA is a feasible solution, Dr. Truong Minh Huy Vu, director of the Center for International Studies under the Ho Chi Minh City University of Social Sciences and Humanities, said at the seminar.

In 2014, the EU constituted one of the most important overseas markets for Vietnam after the U.S., closely overtaken by the U.S. by only US$500 million.

With $27.9 billion, the EU purchased as much as 18.6 percent of Vietnam"s global exports last year, according to official figures.

In particular, the continuous surplus of $19 billion that Vietnam enjoys in its bilateral commercial links with the EU has significantly helped offset the country"s huge trade deficit with China, leading to an estimated global trade surplus of about $2 billion for the Southeast Asian nation.

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Vietnam economy to undergo sea changes after EU trade spanact takes effect

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Vietnam Embassy presents cultural show in Malaysia

“Through the exchange we hope to create a better sense of ASEAN as a regional identity for tourism, trade and investment,” said Van Thi Le Hien, wife of the Vietnam Ambassador to Malaysia, an emcee at the event.

The president of the association, Phongsamouth Anlavan, in turn said meaningful exchanges like these help to bridge the cultural gap that exists between the countries of ASEAN, thereby contributing to a healthier regional identity.

In addition, Anlavan applauded those in attendance for their active support in raising funds and other relief efforts to help victims of the massive flood in Malaysia and those who suffered as a result of Nepal’s earthquake.

Vietnam Embassy presents cultural show in Malaysia

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Vietnam Culture Week 2015 starts in Laos

(illustravie image)

The opening ceremony hosted Lao Deputy Prime Minister Somsavath Lengsavat and Minister of Culture, Information and Tourism Bosengkham Vongdala, and Vietnamese Deputy Minister of Culture, Sports and Tourism Vuong Duy Bien, and Vietnamese ambassador to Laos Nguyen Manh Hung.

Addressing the ceremony, Deputy Minister Vuong Duy Bien said the event helps promote cooperation in culture and tourism between Vietnam and Laos while improving mutual understanding and solidarity between the two peoples and honouring major anniversaries of the two countries.

Lao Deputy Minister of Culture, Information and Tourism Buangan Saphuvong lauded the significant role of the event in helping Lao nationals to gain a deeper understanding of Vietnam’s country and people while consolidating the special friendship between the two sides.

The week will feature a photo exhibition portraying the cultural life of Vietnam’s ethnic groups; the country’s landscapes, sea and islands; and the special ties between Vietnam and Laos; alongside art performances by Vietnamese artists.

Vietnam Culture Week 2015 starts in Laos

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UK site lists Mekong Delta one of 10 best destinations

Vendors sell fruits on the Cai Rang floating market in the Mekong Delta city of Can Tho (Photo: VNA)

"At the end of its epic journey through the heart of Indochina, the coffee-brown Mekong River splits, sloshing seawards through Vietnam. A pocketful of dong still goes a very long way in this delta region, and although the fertile plains and waterways are a riot of vivid colours and flavours, with endless opportunities for exploring by motorbike and boat, the area still sees surprisingly few foreign tourists," the guide said.

Others include Thailand, Egypt, South Africa, Uruguay, Cuba, Gambia, Prague in the Czech Republic, Greece and Guatemala.

UK site lists Mekong Delta one of 10 best destinations

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