VietNamNet Bridge - The Ministry of Finance’s warning about the lack of VND32 trillion for state budget expenditures this year has raised concerns among businesses, as the ministry could try to raise domestic taxes and fees to ease the deficit. Being a member of many free trade agreements, Vietnam will have to gradually cut many tax categories to zero percent, which will lead to a decrease in state budget revenue. Since April 1, 2015, the import tariffs on 3,200 products from Japan have been cut to zero percent within the framework of the Vietnam-Japan Economic Partnership Agreement. The zero percent tax rate will be applied to many more products from the country in the time to come. Since March 30, 2015, Vietnam has begun applying preferential tariffs on South Korean sourced imports within the framework of the ASEAN-South Korea Free Trade Agreement (AKFTA) with a tax rate of zero percent applied to many product items. A survey on the possible impact of the AEC on … [Read more...] about Will taxes and fees be raised to pay for “integration costs”?
Capital raising fees
By Thu Thuy - The Saigon Times Daily A customer withdraws money at an ATM. Banks are seeking the central bank’s approval to collect a fee from customers withdrawing money from their own banks’ ATMs - Photo: Le Toan HCMC – The Vietnam Bank Card Association said most of its members had agreed to increase cash withdrawal fees at a rival bank’s ATM from VND3,300 to VND5,500 per transaction. The new fees are expected to come online early next month. In addition, the association has asked the central bank for approval for the fourth time to collect a fee from customers withdrawing money at their own banks’ ATMs. The three previous bids were refused. Nguyen Thu Ha, chairwoman of the association, told a local newspaper that raising cash withdrawal fees at a rival bank’s ATM was to recoup investment capital in the ATM system as the central bank won’t allow banks to collect fees from cash withdrawals for customers at their own banks’ ATMs. … [Read more...] about Banks want higher ATM cash withdrawal fees
In the first six months of this year, Hanoi's gross domestic product grew 10.9 per cent more than it did in the first half of 2007, a Government website reports. The figure was achieved despite adverse weather that affected the agricultural sector and global and domestic price inflation. Measured in the same way, the value of industrial production increased by 15.6 per cent and export turnover, bringing in US$2.6 billion, was up 23.3 per cent.The first six months of 2008 saw licences granted to 160 foreign direct investment (FDI) projects, which brought total registered capital to $1.2 billion, up 20 per cent against the first half of last year.To stabilise consumer prices and ensure social welfare, the municipal People's Committee has postponed increases in public transportation prices, health care charges and education fees.Hanoi authorities have also created more than 45,000 new jobs, provided professional skills training for over 40,000 people and dragged 2,000 households out of … [Read more...] about Capital’s H1 GDP up 10.9% on 2007
VietNamNet Bridge - This is the first time a transport project of Vietnam is to be promoted overseas. To seek $1 billion to build the Dau Giay - Phan Thiet highway, the Ministry of Transportation and the World Bank will jointly promote the project in a number of Asian countries. It is expected that international competitive bidding will help find the second investor for the project, besides Bitexco, which has agreed to contribute 60 percent of the capital. The Dau Giay - Phan Thiet Highway is one of the first transport projects that will be implemented in the form of public - private partnership (PPP). "This project is very important so the government and related provinces are interested in its success," stressed Minister of Planning and Investment - Mr. Bui Quang Vinh. According to the website of the Ministry of Planning and Investment, Minister Vinh said that the Vietnamese Government would create favorable conditions for investors, including assistance for the site clearance, … [Read more...] about Vietnam seeks foreign capital for Dau Giay – Phan Thiet highway
VietNamNet Bridge - Travel firms are planning to raise inbound tour fees since the fees of all other services have increased. However, they well understand that overly high tour fees will make it impossible to attract foreign travelers. Managers of travel firms are very busy these days attending constant meetings to discuss the tour fee policies. The transport fee has increased by 50 percent, while hotels have quoted new hotel room rates that are 30 percent higher, which has forced travel firm managers to think about raising tour fees. However, the biggest worry for them is that if they raise tour fees too sharply, they will lose clients. According to Nguyen Minh Thu, Deputy Director of Mekong Travel Firm, with the 50 percent transport fee increase and hotel room rate increase of 30 percent, the tour fees should be raised by 30 percent in order to help travel firms cover expenses. However, Thu admitted that travel firms would not be able to raise the tour fee by 30 percent. "A 10 … [Read more...] about Travel firms warned overly high tour fees will keep foreign travelers away
The Department of Thanh Hoa Culture, Sports and Tourism has recently proposed raising fees in cultural, tourism and sports activities, including hiking entrance fees to local tourist attractions, such as the world heritage site Ho Dynasty Citadel and Lam Kinh Special National Relic. Specifically, for the Ho Dynasty Citadel and Lam Kinh relic, adults will be charged VND30,000 (US$1.4) instead of the current rate of VND10,000, and kids' rates will also jump from VND5,000 to 10,000 each visit. It's also proposed that tickets to other local cultural sites rise to VND20,000 an adult for national relics and VND15,000 for provincial relics. The Ho Dynasty Citadel was officially recognized as the world's latest heritage site in June, 2012. The citadel, an awe-inspiring feat of architecture, was the capital of Vietnam from 1397 to 1407. The citadel consists of three sections: a bamboo hedge, a moat and a citadel wall, plus a palace complex with marble-paved roads connecting each palace. … [Read more...] about Thanh Hoa to raise entrance fees to tourist attractions
Vietnam Expressway Corporation (VEC) is the first State-owned enterprise to apply a model that self-raises capital, collects fees and commercialises services to refund investment capital. While the capital for expressway investment is always very large and takes time to recover, VEC constantly seeks partners which are capable of and committed to long-term investments. By borrowing capital from domestic and international credit institutions, after only four years, VEC has built relationships with major Vietnamese and international partners like the Asian Development Bank (ADB), the Japan International Cooperation Agency (JICA), the World Bank (WB), Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank), Maritime Commercial Joint Stock Bank (Maritime Bank), and Global Petro Joint Stock Commercial Bank (GP Bank). Notably, with the finance from ADB, VEC has created its own position and strength and opened arteries for the Vietnamese economy. Mixed blessings In 2009, the … [Read more...] about Vietnam Expressway Development: Better Access to Capital Sources Needed
The capital rise by Vietnamese commercial joint stock banks to VND1,000 billion as of December 31, 2009 as stipulated by the Decree 141/2006/ND-CP was not fully accomplished the deadline for hiking the compulsory capital to VND3,000 billion is coming nearer. With positive developments like better earnings results in the first half of 2009 and stock market recovery, many banks hope to finish the capital rise before the deadline on December 31, 2009. Banks plan capital rise on reviving stock market In 2008, when the stock market slumped and global financial crisis worsened, bank shares lost most of their values but investors still ignored. However, when the stock market revived, investors turned their interest to bank shares and they always pinned high hopes on banks which will be the first sector to recover from the crisis. Bank shares increased their values since March and some even doubled their values in a short period. Reports released by banks showed that their business results … [Read more...] about Can Charter Capital Rise Hit Deadline?
Transport enterprises oppose the Ministry of Transport's decision to raise fees on the HCM City–Trung Luong Highway by 50 per cent from June 1. Two flyovers on the highway have not been built due to a lack of capital. One flyover would run from provincial road No 10B and another from Tran Dai Nghia road to Tan Tao–Cho Dem. The new fees would be applied from June 1 to August 31, 2018. Fees for cars with less than 12 seats will increase from VND40,000 (US$2) to VND60,000 ($2.5). For 12-seat to 30-seat buses, the fee will rise from VND60,000 ($3) – VND90,000 ($4.5). Fees for trucks over 18 tonnes with 40-feet containers will increase from VND240,000 ($12) to VND360,000 ($18). According to estimates from the Ministry of Transport, the increased fee would bring VND620 billion ($30 million), along with VND325 billion ($15.5 million) from selling fee collection rights to the Yen Khanh Trade–Production–Service Ltd company. That would be enough to pay for … [Read more...] about Road fee hike raises complaints
VietNamNet Bridge - The low fiber-optical cable rates and continued departure of subscribers have contributed to a decline in profits for internet service providers (ISPs). VNPT’s CEO Tran Manh Hung has voiced his concern about the dumping in fixed broadband services, warning that the low service fee will lead telcos having no money for reinvestment to expand optical cable systems. Hung said telcos tried to force the service fee down in order to attract subscribers for 3G service. Later, as they incurred heavy losses, they had to raise the service fees and then face opposition from users. According to Hung, VNPT’s broadband service has increased by 20 times in number of subscribers since 2013, but the service fee has decreased sharply. The stiff competition among network operators has led to a dramatic service fee decrease from 600,000 to VND300,000. Hoang Trung Kien, deputy CEO of FPT Telecom, said while fiber optical cable service fee is on the decrease, the terminal … [Read more...] about ISP profits drop as fiber optical cable fees fall