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Image : Lai Chau airport project raises controversy

Lai Chau airport project raises controversy

person Orange Themes access_time May 09,2016

Lai Chau, a poor province with more than a half of the residents listed as poor, plans to build an airport with total investment capital of VND8 trillion.

Image : Tycoon's model village woos Lithuanian voters

Tycoon's model village woos Lithuanian voters

person Orange Themes access_time Oct 27,2016

A peasants' party that scored a surprise victory in Lithuania's weekend election is the brainchild of a farming tycoon famous for transforming his village from a derelict Soviet-era state farm into a pastoral wonderland. Ramunas Karbauskis, 46, who

Image : Man's Death from 'Heartland Virus' Shows Wide-Ranging Effects on the Body

Man's Death from 'Heartland Virus' Shows Wide-Ranging Effects on the Body

person Orange Themes access_time Oct 31,2016

The death of a 68-year-old Tennessee man in 2015 sheds light on a rare tick-borne pathogen known as the Heartland virus, according to a new report of the man's case. The Heartland virus was first found in patients in Missouri in 2009. The

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Vietnam’s economy too reliant on FDI

access_time Mar 19,2017 chat_bubble_outline 48 views

Economists have warned that if Vietnam tries to attract as much foreign direct investment (FDI) as possible and is not selective in receiving capital flow, this will have negative consequences to Vietnam’s private enterprises.

Vietnam’s economy too reliant on FDI

A research study by the Party’s Economics Committee found that Vietnam’s industry has been too reliant on the foreign invested economic sector (FIE) while Vietnamese- owned businesses are in big difficulties.

FIE makes up 50 percent of Vietnam’s industrial output and 70 percent of industrial export turnover. 

The investment capital from the sector accounts for a very high proportion of the total investment capital (including the state’s investment in infrastructure), even compared with that in fifth-generation industrialization countries such as Malaysia, Thailand and China.

In 2015, the proportion was 25.5 percent, much higher than Malaysia’s 14.3 percent, China’s 3 percent and Thailand’s 11 percent.

Meanwhile, the countries with FDI in Vietnam are mostly fourth- and fifth-generation industrialization ones.

The companies from these countries mostly have a short history of development and limited resources and technologies.  

Economists have warned that if Vietnam tries to attract as much foreign direct investment (FDI) as possible and is not selective in receiving capital flow, this will have negative consequences to Vietnam’s private enterprises.

As they still cannot set up a global business culture with the promotion of social responsibility, their technology quality is not high, and likely to cause clash in destination countries. Eighty percent of them have mid-end technology, 14 percent outdated technology and only six percent high technology.

The concern is that the new technologies in foreign invested enterprises are mostly from holding companies and used in manufacturing just to control the market based on the technological advantages provided by holding companies

In most foreign invested projects (80.9 percent), foreign investors contribute 100 percent of capital, while there are few projects developed by joint ventures with Vietnamese investors (16.7 percent). 

A research study released during a workshop on Vietnam’s national policies on industrial development held in Hanoi on March 10 showed the link between foreign invested and Vietnamese owned enterprises is weak.

The efficiency of technology transfer from foreign invested enterprises in Vietnam is still low, at the 103rd position in 2014, a 46 grade-fall after five years, lower than other regional countries such as Malaysia (13th), Thailand (36th) and Indonesia (39th).

Most Vietnamese private industry enterprises are small and medium ones, accounting for 94 percent.

State-owned enterprises have net turnover growth rate of 9.1 percent, much lower than that of FIE (26 percent) and non-state economic sector (13.7 percent). 

The number of profitable enterprises is on the rise, while the number of unprofitable enterprises is on the decrease. 64.1 percent of enterprises made profits in 2010, while the figure dropped to 48.4 percent in 2014. Meanwhile, 25.1 percent took losses in 2010 and 45.3 percent in 2014.


Vietnam's 2017 FDI attraction sees bright prospect

Japanese projects freshening up Vietnam’s real estate market

Kim Chi

Central Bank of Vietnam sets credit growth at 18 percent for 2017

The State Bank of Viet Nam (SBV) has set a credit growth target of 18 per cent for this year, and it pledged to continue measures to keep credit growth suitable to the country’s economic development. Customers do transactions at VPBank Ha Thanh branch in the city’s Thanh Xuan District. The State Bank of Viet Nam targets credit growth in 2017 to reach 18 per cent while credit institutions expects it to be around 19 per cent.  At a conference to review the performance of the banking… chat_bubble_outline Read More...

Trump's UN pick brings limited foreign experience to job

COLUMBIA, S.C. (AP) — South Carolina Gov. Nikki Haley, the 44-year-old daughter of Indian immigrants, would bring limited international experience to one of the U.S. government's most important international assignments: U.N. ambassador.Haley is the first woman and first minority chosen by President-elect Donald Trump for his Cabinet. The Senate must confirm the nomination, which Trump announced in a statement Wednesday.The second-term governor was a Trump critic during the White House… chat_bubble_outline Read More...


Farming sector moves to regain growth amid climate change Drought kills crops in Mekong Delta region. Minister of Agriculture and Rural Development Cao Duc Phat asked for greater efforts to restore the growth of the agriculture sector which is suffering from El Nino and climate change impacts during a meeting with the media in Hanoi recently.In the remaining months of this year, the agriculture sector must focus on recovering from disasters and propose measures to maintain domestic and foreign… chat_bubble_outline Read More...

Da Nang houses best resort spa in Asia

Harnn Heritage Spa in the central city of Da Nang has been named as Asia’s Best Resort Spa and Vietnam’s Best Resort Spa by the World Spa Awards. The InterContinental Danang Sun Peninsula Resort’s spa, invested by Sun Group, surpassed nine outstanding rivals to claim the titles presented at the World Spa Awards’ 2016 award ceremony in Italy on September 5. It received the highest votes from leading experts and managing directors as well as travel agencies and customers. This is the… chat_bubble_outline Read More...

President Obama's Final Foreign Trip to Take on 'Sobering Tone' in Election Aftermath

President Obama’s final foreign trip as the United States' head of state was planned as a reassurance tour in the wake of a contentious presidential campaign. But with the surprise election of Donald Trump, the agenda of the trip has been significantly muddled.So, what will President Obama tell world leaders when he travels to Greece, Germany and the APEC Summit in Peru next week?“In some ways there’s nothing to say,” Heather Conley, the senior vice president of the Center for Strategic and… chat_bubble_outline Read More...

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