Latest blog articles
Vietnam will not retain Japanese automakers at any cost: economists
At a Vietnam-Japan cooperation forum, Japanese enterprises proposed to have more investment incentives to stay in Vietnam instead of leaving for other regional countries.
Meanwhile, Vietnamese economists said that these are excessive claims, and that incentives should not be given just to develop assembling-based industries in Vietnam.
“Automobile industry is a typical example for the unsuccessful cooperation between Vietnam and Japan. Vietnam failed to develop the automobile industry despite a lot of preferences offered to manufacturers. Should Vietnam still try to make cars?” Vo Tri Thanh from CIEM said.
The renowned economist pointed out that Vietnam and Japan have been very successful in developing the motorbike industry. Japanese brands cannot be replaced in the Vietnamese market. However, Vietnam has failed in the automobile industry.
Though appreciating Japanese support to Vietnam’s industries, economists say that Japanese automobile manufacturers’ claims for investment incentives are unreasonable.
Analyzing the failure, Thanh blamed the wrong policies.
“Japan does not consider Vietnam a key market. The technology transfer is limited,” he said.
Pham Chi Lan, a respected economist, commented that new automobile products are introduced globally, while products in Vietnam are still old models.
“What if we continue offering incentives? Will the old models still be used after 15-20 years?” she asked.
She commented that Japanese enterprises, from the beginning, chose Thailand, Indonesia and China, so is necessary to think about whether to continue offering incentives to attract investments.
Recalling the claims worth a total of $2 billion made by Toyota two years ago to the Vietnamese government in exchange for its stay in Vietnam, she questioned the high price, as Toyota only does assembling and does not transfer technology to Vietnam.
“Why should we give incentives to enterprises which bring components and accessories from Thailand and Malaysia to Vietnam to assemble domestically?” she asked.
Lan went on to say that instead of giving incentives worth $2 billion to foreign enterprises, it would be better to reserve $1 billion for Vietnamese enterprises to help them improve production capability and join global value chains.
“Vietnam followed the wrong development strategy. Vietnam wants ‘made in Vietnam’ cars, but it only has an ‘assembling industry’ and that’s all,” she said.
Nearly all well-known car brands are present in Vietnam. Deputy Minister of Industry and Trade Do Thang Hai commented that Vietnam, with nearly 100 million people and increasingly high GDP per capita and more middle-class income earners, is a promising market for any automobile manufacturer.
Car prices projected to change from July
Car prices blamed for sluggish automobile industry growth
Macedonia to hold early vote after corruption allegations
SKOPJE, Macedonia (AP) — Macedonia is holding an early general election after a nearly two-year political crisis that has roiled the government and threatens the Balkan nation's ambitions of joining NATO and the European Union.Sunday's vote was called as part of a deal to address the crisis, which was sparked by opposition reports that the government was behind a large-scale illegal wiretapping operation that targeted 20,000 people, including politicians, judges, journalists, police and… chat_bubble_outline Read More...
Dutch market regulator bans T-Mobile's 'free' streaming music service
AMSTERDAM (Reuters) - The Dutch Consumer and Markets regulator (AFM) on Friday ordered T-Mobile to stop offering a streaming music product which did not count toward customers' data usage.The AFM said the practice, often called "zero rating" is a violation of Dutch net neutrality rules, because it puts rival services such as Spotify at a competitive disadvantage.Deutsche Telekom subsidiary T-Mobile Netherlands, which had introduced the product on Oct. 10, must stop offering it or face penalty… chat_bubble_outline Read More...
Trump calls Obama, Clinton Islamic State 'co-founders', draws rebuke
"Is there something wrong with saying that?" Trump told CNBC. "All I do is tell the truth, I'm a truth teller." Republican Donald Trump called President Barack Obama and Democratic rival Hillary Clinton the "co-founders" of Islamic State, ratcheting up his assertion that they are responsible for the rise of the militant group and sparking renewed criticism of his leadership ability. Clinton's White House campaign on Thursday called the remarks a "false claim," in Clinton's latest response to a… chat_bubble_outline Read More...
New York Times and Washington Post loom large in the age of Trump
Michael Flynn, the general who served as national security adviser to the president, was forced to step down after the Washington Post revealed he had misled Vice President Mike Pence about his communications with the Russian embassy. The New York Times revealed that Trump had asked former FBI director James Comey to halt his investigation into Flynn. The president boasting to Russian diplomats about firing Comey? The talks between those same diplomats and Trump's son-in-law or his attorney… chat_bubble_outline Read More...
BUSINESS IN BRIEF 11/5
Orange, tangerine, grapefruit best selling in Mekong deltaFarmers in the Mekong delta regretted because they have no more fruits such as orange, tangerine, and grapefruit to sell while the price of these fruits hiked and they have become best selling.Farmer Pham Van Lanh in Dong Thap Province’s Lai Vung District is unexpected that prices of tangerine increase because in the end of April he sold over two tons of the fruit at VND28,000 per kilogram which he thought that the price was high but a… chat_bubble_outline Read More...