Netherlands-Vietnam Chamber of Commerce (NVCC)

Events October 2018

Can your company benefit from the FTA’s with Vietnam that are expected in 2019?

Source: PWC

In this news alert we will elaborate on recent developments with respect to trade agreements between the EU and Vietnam.

EU – Vietnam

On 17 October 2018 the European Commission adopted the EU-Vietnam trade and investment agreements. Next steps will be the signature and conclusion of these agreements.

Consequences

The EU-Vietnam trade agreement will ultimately eliminate over 99% of customs duties on goods traded between the two sides. Vietnam will remove 65% of import duties on EU exports as of the moment the agreement will enter into force, with the remainder of duties being gradually eliminated over a 10-year period. EU duties on imports from Vietnam will be eliminated from entering into force of the agreement or progressively over a 7-year period.

To be able to apply reduced import duty rates the products need to be of EU or Vietnamese preferential origin. Products can benefit from preferential tariff treatment of this agreement upon submission of an origin declaration or a EUR.1 certificate. In the future, the EU may move to a system of registered exporters (REX), which could stipulate that the use of an origin declaration or a EUR.1 certificate will be replaced by a statement on a commercial document.

 

Currently Vietnam has trade preferences with the EU under the Generalised Scheme of Preferences (GSP). Vietnam will be removed from the list of GSP beneficiary countries two years after the date that the EU-Vietnam FTA enters into force. From the moment of entry into force of this FTA, companies can benefit from both agreements for two years (e.g. if the rules of origin under the GSP are less strict than under the EU-Vietnam FTA, however likely the preferential rate under the FTA will be lower than under GSP).

Way forward

The Commission is now submitting the proposals for signature and conclusion of the agreements to the Council. Once authorised by the Council, the agreements will be signed and presented to the European Parliament for consent. After the European Parliament has given its consent, the trade agreement can be concluded by the Council and enter into force.

Take away

We advise companies to assess whether they have flows of goods that can benefit from one of these FTAs. Whether they have goods that qualify so that they can benefit from the reduced or removed import duty rates and whether they fulfill the formal criteria to issue origin declarations, EUR.1 certificates or origin statements.

Since it will take a couple of months before the agreements enter into force there is sufficient time if the goods do not yet comply, to make adjustments to the supply chain or sourcing in order to be able to benefit once the FTA’s will enter into force.

If you have any questions regarding on of these FTAs or require any assistance, please do not hesitate to contact Claudia Buysing Damsté (claudia.buysing.damste@pwc.com / +31 (0)88 792 3811), Suzanne Bras (suzanne.bras@pwc.com / +31 (0)88 792 4267) or Stan Vullers (stan.vullers@pwc.com/ +31 (0)88 792 1490).

Luncheon with the Ambassador, 8 November

The board of the Netherlands Vietnam Chamber of Commerce has the pleasure of inviting you to a special luncheon meeting with and hosted by H.E. Mme Ngo Thi Hoa, Ambassador Extraordinary and Plenipotentiary to the Netherlands.

During the luncheon, Mme Ngo will answer questions from her guests on the developments in the Socialist Republic of Vietnam and the Vietnamese – Dutch relations.

Mr. Nguyen Hai Tinh, Commercial Counsellor of the Embassy, will give a briefing on the effects of the European- Vietnamese

The meeting will be moderated by NVCC Chairman Mr. Joost Vrancken Peeters.

The number of seats at the luncheon is limited, priority will be given to members of the Netherlands Vietnam Chamber of Commerce.

Participation is free of charge.

Date: 8 November

Time: 11:00 – 13:15 hrs

Venue: Vietnamese Embassy, Javastraat 1, The Hague

Please register on or before Friday 2 November.

 

 

 

 

 

Vietnam cherishes investment from EU

Source Viêt Nam News

Update: October, 18/2018 – 09:00

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Prime Minister Nguyễn Xuân Phúc meets with European business leaders who participate in the Việt Nam EU-Belgium Business Forum on October 17. — VNA/VNS Photo Thống Nhất

BRUSSELS — The Vietnamese Government is making concerted efforts to improve the business climate for both domestic and foreign enterprises, including those from the Europe, Prime Minister Nguyễn Xuân Phúc said on October 17.

Attending the Việt Nam EU-Belgium Business Forum jointly held by the Việt Nam Chamber of Commerce and Industry (VCCI), the Belgian Vietnamese Alliance, embassies and trade offices of Việt Nam and Belgium, PM Phúc said that the Government pledges favourable conditions to connect enterprises from both sides for the benefits of the firms and the people.

Two-way trade has increased tenfold over nearly a decade, he noted, adding that it is likely to rise to US$53 billion this year. Emphasising the Europe-Việt Nam free trade agreement (EVFTA) which is expected to open the door for the enterprises to capitalise on their cooperation potential when it takes effect, PM Phúc hoped that the European business association, especially Belgian firms, would raise their voices to push the signing of the deal.

Việt Nam will serve as a bridge for European enterprises to break into ASEAN market toward a free and fair trade, he said, underlining Việt Nam’s advantages for Belgian investments like stable socio-political and macro-economic conditions and well-developed port systems.

Together with the imminent signing of the EVFTA, Việt Nam has participated in 15 new-generation free trade agreements, which means that if Belgian firms enter Việt Nam, they will have access to a global market, he underlined. At the forum, PM Phúc and officials of both nations witnessed the signing of several cooperation documents between the VCCI and the Belgian Vietnamese Alliance, Việt Nam Post and Telecommunication Group and European mobile network business centre, and Việt Nam Project company and Sarens Group.

Speaking at the event, Chairman of the Belgium – Việt Nam Friendship Alliance Andries Gryffoy said Belgian firms are interested in seeking opportunities in health care, real estate, green energy, food, beverages, seaport infrastructure and other fields in Việt Nam, adding that they are promising investors. He said Belgium boasts a business-friendly government, dynamic research environment, and education system up to international standards and high labour productivity.

Lying in the heart of the EU with a population of 420 million and modern infrastructure, Belgium focuses on industries such as aerospace, chemicals, energy, waste and wastewater treatment, artificial intelligence and 4.0 technology, which are potential fields for partnership with Vietnamese firms, he said.

The same day, PM Phúc had working sessions with representatives from EU and Belgian leading firms operating in Việt Nam, during which they informed the Vietnamese leader on outcomes and investment and business plans in the Southeast Asian nation in such fields as oil and gas, renewable energy, agriculture, fertiliser and insecticide production, seaport infrastructure, rubber and tire production. They also made recommendations on how to accelerate cooperation between the business communities of Việt Nam and the EU, as well as between those of Việt Nam and Belgium in particular.

On October 16, Prime Minister Nguyễn Xuân Phúc received leaders of Solveigh and Nijhuis – the Dutch businesses with experience in anti-erosion, water exploitation and use, and carrying out a climate change adaptation project in central Việt Nam.

The PM hailed Solveigh and Nijhuis as well as other Dutch partners in conducting surveys, research and working solutions to minimise coastal erosion in Việt Nam. He described their work as a specific action to implement cooperation programmes within the framework of the strategic partnership on adaptation to climate change and water management between Việt Nam and the Netherlands.

Menno Holterman, managing director of Nijhuis, said the project’s partners inspected erosion in Hội An and agreed to carry out another project to address challenges in the area. It aims to improve safety and livelihood for locals, and protect and restore Hội An’s coast, while forming new eco-system tourist sites there. Investment for this will be arranged by European and Dutch organisations and businesses and Việt Nam’s T&T group.

Representatives of the two Dutch groups expressed their wish to continue receiving attention and facilitation from the Prime Minister and relevant agencies of Việt Nam during the project’s implementation.

Welcoming proposals from Dutch organisations and businesses, PM Phúc said the Vietnamese Government hopes for experience-sharing and support on human resources and technology from the Dutch partners to solve urgent issues in Việt Nam, especially coastal and riverbank erosion and subsidence, climate change response, and helping local people’s sustainable socio-economic development.

The PM suggested Dutch and Vietnamese partners coordinate with the People’s Committee of Quảng Nam Province to accelerate the study and survey to have an optimal plan.

The two Dutch groups, T&T group and other partners were asked to work with Việt Nam’s Ministry of Agriculture and Rural Development and Quảng Nam authorities to reach an implementation plan. — VNS

Shopee becomes top e-commerce player by traffic in Q3

Source Viêt Nam News

Update: October, 19/2018 – 15:57

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A customer shops on the Shopee platform. — VNS Photo
HÀ NỘI – Shopee has beat Lazada to become the top e-commerce platform by traffic in the third quarter of this year, according to the Map of E-commerce in Việt Nam recently published by Iprice Insight.

Statistics showed that Shopee had a monthly average traffic of 34.5 million in the quarter.

It was closely followed by Lazada with a monthly average traffic of 30.2 million.

This is the first time Lazada has lost the top position since the second quarter of 2017.

Other players in the top five included Tiki with 29.4 million traffic per month, Sendo with 20.7 million and Adayroi with 5.3 million.

The top four, including Shopee, Lazada, Tiki and Sendo all received foreign funding.

The competition was growing fierce in Việt Nam’s e-commerce market, which is anticipated to reach US$10 billion by 2022.

The ranking was forecast to see significant changes in the last quarter of this year when e-commerce platforms would offer more promotion and discount programmes to stimulate shopping as the year-end approaches.

Iprice Insight is run by iPrime Group, a price comparison platform in seven markets, including Malaysia, Indonesia, Singapore, Hong Kong, Thailand, the Philippines and Việt Nam. — VNS

Vietcombank prepares for private placement to foreign investors

Source: Viêt Nam News

Update: October, 19/2018 – 15:44

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Vietcombank’s profit by the end of September is estimated to exceed VNĐ11 trillion. – Photo VCB
HÀ NỘI — Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) has come closer to a private placement of 579.7 million shares to foreign investors in a move to raise charter capital to VNĐ39.57 trillion (US$1.69 billion).

According to the largest Vietnamese lender by market value, the State Securities Commission (SSC) on Wednesday affirmed that it received Vietcombank’s application and other relevant documents for the private placement.

Under Vietcombank’s issue plan, the bank is expected to offer 53.9 million shares, or 1.36 per cent of the bank’s total shares after the offering, to its largest current foreign investor Mizuho Bank so that the Japanese bank will maintain its holding in Vietcombank at 15 per cent.

The 305.8 million remaining shares, or 7.73 per cent of the bank’s total shares after the offering, will be offered to other foreign investors.

After completing the sale, the shares will not be transferable for one year.

Vietcombank hasn’t so far released details about the private placement. However, according to the bank’s resolution of the annual general meeting of shareholders early this year, the offering price will not be lower than the price determined by an organisation providing corporate valuation services and the market price averaged in the 10 consecutive sessions before the date investors announce to buy the shares.

Additionally, the lender will favour foreign investors with strong financial status, possibly including one or several existing shareholders of Vietcombank.

With the sale, Vietcombank expects to increase its charter capital by VNĐ3.6 trillion to VNĐ39.57 trillion in a move to meet a capital adequacy ratio (CAR) of at least 8 per cent as per the State Bank of Việt Nam’s Basel II norms, starting in 2020.

Vietcombank’s profit by the end of September is estimated to exceed the VNĐ11 trillion that the bank gained in the entire 2017. The figure is up some 50 per cent against the same period last year.

With the rise, the bank is expected to soon surpass the VNĐ13 trillion profit target set for 2018 at the bank’s annual general meeting of shareholders.

Vietcombank shares (VCB) closed Friday’s morning session at VNĐ57,800 apiece, down 0.3 per cent against Thursday. — VNS