NEWSLETTER FROM VIETNAM

December 2014

Happy New Year 2015

A warm welcome to all our readers

Information in this newsletter is presented on a synthetic basis with a reference number. On
request, our offices will be pleased to assist any Brussels company who wishes to receive further
information on any of the topics exposed hereunder. Please return by e-mail the topic with its
official heading, mentioning the issue and the reference number.
You may also find our newsletters on the website of: http://www.invest-export.irisnet.be

In this issue:

Ship import rule

Revised laws make it easier for business, investment

Hanoi to host Vietnamese exhibition on Belgian cartoon character

Vietnam wrapped up FTA negotiations with Korea and Customs Union

Power tariff seen rising

Belgium helps Vietnam improve manpower quality
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Foreign investment IT system ready

Automobile imports near record high

Agriculture exports approach US$ 31 bil

Insurance market highlight in 2014

New PPP decree out soon

More positive signs for economy

Vietnam to develop five major pharmaceutical centers

World Bank okays US$ 450m in loans for city sanitation

FAIRS AND EXHIBITION IN JANUARY-MARCH 2015

Vietnam Consumer Digital World Expo VCW 2015

Light and wire Vietnam

VIFA 2015 - Vietnam International & Home Accessories Fair

INMEX Vietnam 2015- Maritime Expo Vietnam and Indochina

HVACR VIETNAM 2015

Security world 2015

4G Summit

Vietbuild Hanoi 2015

Propak Vietnam 2015

Ship import rule

Vietnam authorities will not license the import of tourist ships, and floating hotels and
restaurants with wooden frame and covers from Jan 2015. According to a government decree
on the lifespan of vessels used on domestic waterways and imported ships issued in December,
imported passenger ships must be less than 10 years old and other vessels no more than 15
years. The import of vessels without clear information will not be licensed. The age of imported
vessels is calculated from the year they were built to the year they are registered for customs
clearance in Vietnam. (Saigon Times Weekly, 06/12/2014)
Revised laws make it easier for business, investment
The National Assembly (NA) has approved the revised Enterprise Law and the revised
Investment Law which are expected to create a more liberal and transparent environment for
investment and business in Vietnam. The NA also approved amendments to some tax laws,
notably the abolishment of the 15% cap on advertising cost for businesses. It agreed with the
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Governments roadmap for raising the special consumption tax for liquor, beer and cigarette.
Accordingly, the tax for liquor of over 20 proof will be 55% from 2016 and raised to 60% from
2017 and 65% from 2018. The rate of liquor of under 20 proof will be 30% from 2016 and raised
to 35% from 2018. Beer will be taxed 55% from 2016, 60% from 2017 and 65% from 2018. The
tax for cigarettes will be 70% from 2016 and 75% from 2019. (Saigon Times Weekly,
06/12/2014)
Hanoi to host Vietnamese exhibition on Belgian cartoon character
A 10-day exhibition entitled Martine, a Friend from Europe was open in Hanoi in December, on
the occasion of publishing the comic series Martion (20 episodes) in Vietnamese. The exhibition
was organized by the Wallonie-Bruxelles Delegation in Vietnam and Kim Dong Publishing
House. (Vietnam News, 16/12/2014)
Vietnam wrapped up FTA negotiations with Korea and Customs Union
In December, Vietnam concluded negotiations on free trade agreement with South Korea and
the Customs Union including Russia, Belarus, Kazakhstan, which will help lift trade and
investment ties with these countries. It is hoped that the FTA with EU will be concluded soon.
(Vietnam Investment Review, 15-21/12/2014 and 22-28/12/2014)
Power tariff seen rising
Despite stable input costs, the Ministry of Industry and Trade has asked for a price adjustment
plan for submission to the Prime Minister. A news source cited that EVN had proposed
increasing the average electricity price 9.5% this year, from VND 1,508.85 per kWh to VND
1,652.19. (Saigon Times Daily, 17/12/2014)
Belgium helps Vietnam improve manpower quality
Belgium has pledged more than EUR 6 mil in ODA for Vietnam to enhance manpower quality
through the project called Facility for Capacity Building. The project aim s to support Vietnam
to sustain development and become a knowledge-based industrialized country by 2020. The
project will be implemented within 4.5 years. The Ministry of Education and Training will be
responsible for the implementation and management of the project. Vietnams
competitiveness index ranked 70th out of 148 countries in 2013, dropping by 5 places compared
to 2006, according to the WB. (Saigon Times Daily, 17/12/2014)
Foreign investment IT system ready
Foreign investors who apply online for permission to invest in Vietnam will be able to receive
investment certificate online as of 2015. The move is part of the national foreign investment
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information system, and is part of the plan to create more favourable conditions for foreign
investors. (Vietnam Investment Review, 22-28/12/2014)
Automobile imports near record high
The total import turnover of CBU automobiles in Vietnam this year reaches US$ 1.446 bil, which
nearly matched the record level of US$ 1.5 bil. The country imported 66,025 vehicles as of 15
Dec. (Vietnam News, 26/12/2014)
Agriculture exports approach US$ 31 bil
The agriculture sector has recorded an export turnover of nearly US$ 31 bil this year, a year-onyear increase of 11.2%. Farm produce topping the US$1bil export mark include rice, coffee,
rubber, fruits and vegetable, shrimps, tra fish and forest products. However, the application of
science and technology in agriculture production still lagged behind. The agriculture sector
needs to continue its restructuring process, increase output and quality of produce and become
more competitiveness. Focus will be on research to produce better crop varieties, apply
modern technology in processing and preservation as well as reducing post-harvest losses.
(Vietnam News, 26/12/2014)
Insurance market highlight in 2014

First dialogue between Ministry of Finance and insurances companies and brokerages
operating in Vietnam to seek their opinions on how to grow the market.

Authorities focus on facilitating insurance operation with new regulations.

Ministry of Finance unveils aquaculture insurance under Decree No.67.

Insurance for export credits on experimental basis.

Insurance continues to grow at double digit rate.

New players enter the market.

Non-life insurance companies create framework for motor vehicle insurance.

Workshops on mandatory explosion/fire insurance.

(Vietnam News, 25/02/2014)

New PPP decree out soon
The Government will soon issue a new decree on investments in transport infrastructure
projects under the public-private-partnership (PPP) format. The decree will serve as a new legal
framework for the implementation of the PPP investment form and clarify incentives for local
and foreign enterprises involved in infrastructure development. The new decree also stipulates
higher fiscal incentives for investment in PPP projects and cover relevant issues such as
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competitive bidding, policy publicity and price negotiation time frames. (Saigon Times Weekly,
27/12/2014)
More positive signs for economy
The countrys economy has regained strong growth momentum in 2014 and seen more positive
signs such as higher GDP growth, lower-than-projected inflation and recovery of major sectors.
GDP: 5.98% (up from 5.25% in 2012 and 5.42% in 2013 and higher than the 5.8% target set
earlier by the Government)
Industrial: 7.15%
Construction: 7.07% (compared to 5.87% in 2013)
Consumption: 6.2%
Money supply rises 15.99%, credit by 12.62% and capital mobilization by 15.76%
CPI goes up 4.09%- a quite low increase in the past decade.
Development investment increases 11.5% (equivalent to 31% of GDP)
Investment in the State, private and FDI sectors grow 10.1%, 13.6% and 10.5% respectively
Export: up 13.6% to US$ 150bil
Import: up 12.1% to US$ 148 bil. (Saigon Times Daily, 29/12/2014)
Vietnam to develop five major pharmaceutical centers
The Prime Minister has approved a master development plan for the pharmaceutical sector
until 2020 with a focus on setting up 5 large-scale pharmaceutical distribution centers in
different regions of the country. The distribution centers are aimed at preventing the trading of
pharmaceuticals via too many intermediates and uncontrolled price increases and to enhance
management of drug prices. Major pharmaceutical distributors on the local market are
enterprises which used to be run by the State, and import pharmaceuticals and provide storage
and forwarding services, as well as companies specializing in drug marketing and distribution.
The countrys drug distribution segment is also joined by foreign players, including Zuellig
Pharma, Mega Product and Diethelm. There are now 2,000 pharmaceutical trading and
distribution enterprises, 133 drug production factories meeting GMP, 177 firms with GSP and
over 1,900 enterprises with GDP and more than 39,000 drug retail facilities. (Saigon Times
Daily, 31/12/2014)
World Bank okays US$ 450m in loans for city sanitation
In late December, the WB approved US$ 450 mil in loans and credits to Vietnam for the second
Hochiminh City Environmental Sanitation Project to treat waste water, strengthen institutional

capacity to manage sanitation and wastewater and increase public awareness of the benefits of
improved sanitation. (Vietnam News, 25/12/2014)

EXCHANGE RATE
1US$ = 21,405.00 VND
1EUR = 26,151.25 VND (Vietcombank rates on 30/12/2014)

FAIRS AND EXHIBITIONS

Vietnam Consumer Digital World Expo VCW 2015
Time :

January 7-8, 2015

Venue :

Ho Chi Minh City International Exhibition & Convention Center, 446 Hoang Van Thu

str., Tan Binh dist., HCMC

Website :

www.vcw.org.vn

Organizer :

IDG

Light and wire Vietnam

Time:

January 16-19, 2015

Venue:

Vietnam Exhibition and Fair Center, 148 Giang Vo Road, Ha Noi

Website:

http://www.lightviet.com/

Organizer:

Century Expo Group

VIFA 2015 - Vietnam International & Home Accessories Fair

Time :

March 11-14, 2015

Venue :

Saigon Exhibition & Convention Center (SECC), 799 Nguyen Van Linh St.,

Tan Hung W., Dist. 7, HCMC

Website :

http://www.vifafair.com/

Organizer :

HAWA CORPORATION - HANDICRAFT & WOOD INDUSTRY ASSOCIATION OF HCMC

INMEX Vietnam 2015- Maritime Expo Vietnam and Indochina

Time :

March 18-20, 2015

Venue :

Tan Binh Exhibition & Convention Centre (TBECC)

Website :

http://www.maritimeshows.com/vietnam/

Organizer :

Informa exhibitions

HVACR VIETNAM 2015 - International Exhibition on Heating, Ventilation, Air-Conditioning,

Refrigeration, Air Filtration & Purification and Building Automation & Controls in Vietnam
Time :

March 18-20, 2015

Venue :

Tan Binh Exhibition & Convention Centre (TBECC), 446 Hoang Van Thu str., Tan Binh
dist., Ho Chi Minh City

Website :

http://www.hvacrseries.com/vietnam/

Security world 2015

Time :

March 25-26, 2015

Venue :

Melia Hanoi Hotel

Website :

www.security.org.vn

Organizer :

IDG Vietnam

4G Summit
Time :

March 25-26, 2015

Venue :

Melia Hanoi Hotel

Website :

www.security.org.vn

Organizer :

IDG Vietnam

Vietbuild Hanoi 2015

Time :

March 25-29, 2015

Venue :

Vietnam Exhibition and Fair Center, 148 Giang Vo Road, Ha Noi

Exhibit :

Construction Building Materials House & Furniture Decoration

Website :

www.vietbuildafc.com

Propak Vietnam 2015 The 10th International Handling, Processing and Packaging Exhibition and
Conference for Vietnam
Time :

March 31 April 2, 2015

Venue :

Saigon Exhibition & Convention Center (SECC), 799 Nguyen Van Linh St.,
Tan Hung W., Dist. 7, HCMC

Website :

www.propakvietnam.com

CONTACT US
Mrs. Tran Thi Hien| Economic and Commercial Attache
Brussels invest & export Vietnam | Royal Embassy of Belgium
9th fl, Hanoi Tower, 49 Hai Ba Trung, Hanoi, Vietnam
T: 84-4-3 934 61 82 | F: 84-4-3 934 61 85
E: hanoi@brusselsinvestexport.com
W: www.brussels-in-vietnam.be

THANK YOU AND SEE YOU IN VIETNAM !