Professional Documents
Culture Documents
Issue 21
I am pleased to say that our 2nd edition of GreenBiz held in HCMC on the 15-16th September 2011 has been a great success! It has been the largest green initiative in the country 2011, and has attracted more than 2000 visitors during its two-day exhibition and conference. A wide range of topics, ranging from sustainable cities over green manufacturing to energy efficiency have been discussed at the conference, with the participation of leading international and domestic experts. The conference presentations have reflected Vietnams most current challenges and opportunities for sustainable green solutions. The exhibition has attracted many Vietnamese companies and initiated fruitful B2B discussions between our European exhibitors and the Vietnamese guests. I am also happy to announce that in late November, EuroCham will issue the 4th Edition of our WhiteBook of Trade / Investment Issues and Recommendations: The WhiteBook 2012, in both Vietnamese and English, will specify again for more than 15 areas the main business issues our member companies are facing. The Whitebook 2012 will offer practical recommendations on how the local and national authorities in Vietnam can tackle the numerous challenges to doing business in Vietnam. Once again, I am convinced that the Whitebook 2012 will be a useful reference tool for both the Vietnamese government and the business community in Vietnam. It will also help to raise with one strong voice our European business concerns at national and regional events such as the Vietnam Business Forum. The next Vietnam Business Forum (VBF) is scheduled for early December in Hanoi, and will give EuroCham and its members another opportunity to express our views and issues to the Vietnamese government. On 1st September 2011, EuroCham has met with Vice Minister Nguyen Thanh Hoa and his cabinet at the MOLISA in Hanoi to discuss Decree 46 on the employment and administration of foreigners working in Vietnam. At the meeting, we have made clear that the foreign business community remains concerned that the new Decree 46 will discourage investment in Vietnam, and we have offered to seek solutions that satisfy both Vietnams need to control the labour market as well as foreigners freedom to hire their preferred staff without additional administrative burdens. EuroCham will continue recommending that employers should be allowed to select the right candidate based on their own discretion and internal processes. I would also like to express my support and encouragement to the European Chamber of Commerce and Industry in Lao PDR that was officially launched in Vientiane on September 30th. It is a very encouraging sign that the European business community in Lao has decided to form a chamber of commerce to assist the economic development of the country and to represent the common interests of European businesses. Read more about Laos on page 9. On behalf of the EuroCham Executive Board, I thank you for your continuous support and look forward to welcoming you at our coming events and activities! With kind regards,
Alain Cany
The European Chamber of Commerce in Vietnam in partnership with VCCI and ITPC presents
Green-Biz 2011 opens up opportunities for sustainable green solutions and technologies in Vietnam
HCMC - The second comprehensive European event on sustainable business development: GREEN-BIZ 2011 European Green Business Solutions for Vietnam in Ho Chi Minh City ended with businesses and Government officials calling it a major success for the development of a green business industry in Vietnam. According to industry observers, the event not only has opened up new opportunities for Vietnam in various areas of sustainable green solutions and technologies, it also has raised the awareness that Vietnam will attach high importance to sustainable development in particular with regards to climate change, sustainable cities, environmentally friendly technologies, green investments and sustainable strategies for transportation and manufacturing. To encourage sustainable green solutions for Vietnam, the Government will need to implement a system of incentives such as favourable laws, regulations and procedures to ensure that more and more companies invest in green technologies. With this event, we hope to encourage sustainable green solutions for Vietnam, the Vietnamese Government will need to continue their already good work on a system of incentives. This includes better enforcement of laws, regulations and procedures and giving more incentives for SMEs, to ensure that more and more companies invest in green technologies. said Alain Cany, Chairman of the European Chamber of Commerce in Vietnam the main organiser. GREEN-BIZ 2011, organised by the European Chamber of Commerce in Vietnam (EuroCham) partnership with the Ministry of Industry and Trade (MoIT), the Vietnam Chamber of Commerce and Industry (VCCI) and the Investment & Trade Promotion Centre in HCMC (ITPC) has attracted thousands of visitors during its two-day exhibition and conferences. A wide range of topics, ranging from climate change, sustainable cities and environmentally friendly technologies to green investments and sustainable strategies for transportation and manufacturing have been discussed in HCMC with the participation of leading international and domestic experts. The presentations reflected Vietnams most current challenges and opportunities for cleaner solutions. GREEN BIZ 2011 attracted 69 exhibitors, 16 sponsors and more than 2,000 specialized visitors. 50 experts from business, government and academia discussed the most pressing environmental challenges and suitable business solutions in the conference part over two days, and the conversations continued in the breaks as well as the exhibition hall. I am particularly happy to say that GreenBiz 2011 has been warmly received by both Vietnamese and the international community: It has initiated and intensified the awareness and environmental concerns and offered solutions to the challenges that lie ahead and how to address climate change and sustainable cities as the most pressing issues for Vietnam. EuroCham Chairman Alain Cany said in his closing remarks. He especially thanked Deputy Prime Minister Nhan for attending GreenBiz 2011 opening ceremony via video link from Hanoi: There could not be a stronger signal of how interested the Vietnamese Government is in ensuring as sustainable green future for this country. The presence of four Vice Ministers from MOIT, MONRE, MOF and MOC has reconfirmed this strong commitment! Cany also expressed his high appreciation of European and Vietnamese companies that took part in the exhibition, the events partners namely: Ubifrance, CCIFV, Embassy and Consulate of the Kingdom of the Netherlands to Vietnam, the Embassy of Ireland in Vietnam and the Embassy of Poland in Vietnam. The event sponsors including: Diamond Sponsor, Siemens; Gold Sponsors, AkzoNobel, Jardines, Philips, Schneider Electric and Shell. Air France and Vietnam Airlines as Gold Airline Sponsor. Airbus, Alstom, Ariston, Dragon Capital, Gyproc Vietnam, Holcim, PetroVietnam Gas and Rhodia as Silver Sponsors.
Renewable Vietnam:
The eight-fold path to economic freedom and real independence through true green business
by Peter Droege, Professor, University of Liechtenstein and President of Eurosolar, European Association for Renewable Energy
Vietnam has the capacity to become completely independent in energy. It can be free of rising energy import costs and unsustainable, expensive and dangerous foreign systems. Not nuclear power or coal plants are needed but a national renewable energy capacity assessment and development strategy. Vietnam has biomass, solar, wave, tidal, geothermal and wind resources and could be master of its own energy destiny within twenty years instead of becoming enslaved in old-fashioned foreign systems and source imports. This can generate new jobs, innovation and technology-led domestic and export industries. This can generate a central signal in a new world we call true Green Business TruGreenBiz TBG, or Golden Green Business business that entirely relies on the renewable power.
To follow this path to a Vietnamese Green Economy the ultimate realisation of a Green Business Environment, eight fundemantal truths about green biz need to be remembered, for Vietnamese and European business, and for Vietnamese and European policymakers: 1. Area : Business is not a new or special sector. The transformation operates across sectors or themes: finance, Green energy, water, manufacturing, biotechnology, forestry, agriculture ... this is nothing less than a new industrial revolution. 2. It is not (only) about being green, that is about caring for the environment: it speaks to an inexorable change, an inevitable future. This is about essential innovation and economic change - hence not a special collusion among warm and well-meaning folks doing good. 3. Green Business does not create a cost or funding problem. Rather, it means that existing economic and policy sensitive capital streams require redirection to the more for more advanced renewable energy systems, rather than the outmoded fossil and nuclear models. 4. It is not (only) about carbon saving. Carbon is one of the most common elements in the universe it cant be saved. Important however, is to focus on cutting out fossil energy use through a combination of focused transformation to a renewable energy based economy with simultaneous efficiency, sufficiency and demand management measures 5. It is not about certification. Performance certification (efficiency, toxicity, other environmental performance) 6. It is not (only) about government leadership. Government sets the market signals but unlike with fossil fuel and nuclear policy is not the primary driver. This is truly a business and industry revolution, since everyone can be a producer and consumer of energy the Green Prosumer Revolution is here. 7. Europe has not only good and green things to offer. Some European and other countries do export products and services that can be harmful to the future of Vietnamese economy and people. Fossil and nuclear energy can be part of this. Europe is the source of the vas majority of green business inputs worldwide but it is important to be selective. 8. 100% renewable energy base is not only possible it is inevitable. The sooner expensive distractions and hurdles to a swift and smooth rise of the renewable economy are removed the better. One such great illusion and misleading distraction is carbon capture and storage (CCS) both a technical impossibility and huge waste of time only designed to prolong the life of the harmful fossil fuel industries. These precious funds should be used wisely for creating permanent and growing prosperity for the Vietnamese people and their business base, educational foundation and livelihood by building national security and trade strength through a powerful and efficient domestic renewable energy infrastructure.
7
Regional Update
Lao PDR The Unknown Tiger
To most non-Laotians Laos is some rather obscure, enigmatic country which rarely dominates the headlines of international media. Quite some people not only outside the region are not even sure about the precise location of the former Land of a Million Elephants. The present-day Peoples Democratic Republic is not very easy to access there is only one (short) international railway, there is not direct access to the sea, and its major river, the Mekong, is over long distances not navigable for major ships. Often spectacularly rugged terrain, jungle covered mountains and the existence of a wide-meshed network of roads per sq km of land there are less than 13 km of roads (compared with about 35 km in Thailand and almost 50 km in Viet Nam) makes the country also difficult to penetrate. It does not help that only 14% of its roads are paved. Laos is sparsely populated (23 people per sq km) and with about 6 million its inhabitants number about half the population of Greater Bangkok. And with a GDP of about 1000 USD per head they are much poorer than their Thai brethren. So why bother? Perhaps one reason to take a closer look is the strategic location of the country and its economic development over the recent year which has been impressive by many standards. Being increasingly land linked by bridges and (plans of additional) railways to neighbouring countries Laos commands a crucial area between the emerging economy of Thailand, the densely populated coastal lowlands of Viet Nam and factory agglomerations of Southern China. With an estimated GDP growth of about 8%, the Economist Intelligence Unit ranks Laos under the 10 fastest growing economies of the world for 2011. The World Bank estimates the growth figure Landmark of traditional Vientiane - That Luang even at 8.6%. About half of this impressive growth rate can be attributed to the resource sector, in particular to hydropower generation and mining which means predominantly unearthing copper and gold ore. Lao is a net exporter of electricity, frequently labeled the battery of South East Asia. But there is more to the Lao economy than its wealth of minerals, abundance of forests and huge untapped hydropower potential. Construction is booming, the garment industry, with about 28,000 employees the biggest manufacturing industry of the country, is expected to see an export growth of about 15 to 20% this year. In the service sector tourism, transport and retailing are expected to expand considerably. Lao exports amounted to about 2 billion USD in 2010 and are expected to grow by almost 30% this year, largely due to increasing electricity exports and strong prices for copper. While Laos benefits from an almost unrestricted access to the EU market it is the only ASEAN nation which is not yet member of the WTO. But this is expected to change in the not too distant future since the country is in the final stages of the negotiation process for the accession. The results will be far reaching, boost trade facilitation and improve conditions for investment. Already now the Peoples Democratic Republic welcomes foreign investment in almost any sector, allows the full repatriation of profits, gives tax incentives etc. The investment conditions will most likely improve further with the setting up of an impressive number of Special Economic Zones which are currently in different stages of planning and approval. Currently, most foreign direct investments in the country come from China, Viet Nam, and Thailand. But recent developments show that there is also a good business potential for European companies. Hydropower, tourism, garment industry, environmentally friendly CDM projects, food technology are just a few examples of successful European business activities.
9
Regional Update
ECCIL The organization of the European Business Community in Lao PDR
Lao PDR is a country with one of the highest economic growth rates in the world. It is rich in natural resources, has numerous business opportunities and welcomes foreign investment. But so far, mainly Chinese, Thai and Vietnamese investors have seized the chance and set up a business in the land locked country. For European companies access to Laos sometimes turned out to be difficult economic information is hard to get, facilitating contacts are difficult to identify and potential business partners are not easy to find for an outsider. This situation has changed now. In early May 2011 the European Chamber of Commerce and Industry in Lao PDR (ECCIL) has been founded not only to promote the interest of the European business community in the PDR but also to support members and non-members in setting up their operations and in doing business in the country. ECCIL is in a certain aspect the successor of the now dissolved French Chamber of Commerce in Laos and stands to support a considerably larger business community. Its members operate in a wide variety of industries, from manufacturing and tourism industry to insurance, banking and consulting, thus assuring a broad base of experience and industry specific as well as country specific knowledge and a good network. The president of the chamber, Mr. Guy Apovy, has extensive professional experience in Laos, not only as the CEO of one of the leading service companies of the country, but also as long standing president of the former French chamber of commerce. The managing director, Dr. Ramon Bruesseler, looks back on a successful career as executive manager of an international strategy consulting company and was since 2007 advisor to the board of the Lao National Chamber of Commerce and Industry (LNCCI). One of the main strategic tasks of ECCIL is the promotion of the interests of its members. ECCIL engages in constructive dialogue with the Lao ministries and other Lao authorities to raise issues and voice opinions on behalf of its members. ECCIL actively supports the Lao Business Forum and writes position papers on issues, developments and law initiatives which are of concern to our members. ECCIL will closely cooperate with LNCCI, thus ensuring direct access to the Lao business community, its national chamber network and its associations. By providing substantiated analysis of and giving feedback on government initiatives, ECCIL wants to promote the economic development of Laos and thus support the Lao people.
(from left) ECCIL Executive Director Dr. Ramon Bruesseler and Chairman Guy Apovy with EuroCham Vietnam Vice-Chairman Erdal Elver and Executive Director Dr. Matthias Duehn at the ECCIL grand opening ceremony held in Vientiane on 30. September 2011.
Although ECCIL is quite young, it offers (and, in fact, implements) already a variety of services such as:
Giving economic, business and legal information, Organizing workshops and business matching, Support of company foundation, Individual services on request, Promotion of the interests of its members towards the government.
Membership is open to companies as well as individuals who have a relationship to any EU member state, no matter whether they have a presence in Laos or not. Further details are available on ECCILs website www.eccil.org, or email: contact@eccil.org. * Source: Lao PDR Economic Monitor 2011 - World Bank
In Focus
Development 5% Vnh Phc province is located in the Red River Delta in close proximity to the 0% capital Hanoi and has 7 districts with 2006 2007 2008 2009 Prel.2010 20 industrial parks over a total area of Source : Vinh Phuc Statistical Yearbook 6,038 ha have been approved by the Prime Minister. Top priority will be given to key industries such as engineering and manufacturing and electronics and environmentally friendly projects to turn Vnh Phc into an industrialized province by 2020, says Nguyen Cong Loc, Head of Industrial Zones Management Board. The provinces industry and services sector are expected to make up almost 90 percent of provincial GDP by 2015. The rate of urban residents in Vnh Phc is estimated to reach more than 50 percent of total provincial population by 2020. Growth In 2010, GDP grew 15.1 per cent on-year to hit $1,630 per capita, ranking Vnh Phc third in the northern key economic zone, just behind Hanoi ($2,059) and Haiphong ($1,800-$1,900). Vnh Phcs industrial production value in 2010 reached $2.12 billion, a rise of 20.4 per cent against the previous year. The foreign-invested sectors industrial production value grew the strongest, at 23.6 per cent on-year, followed by the state-owned sector, at 13 per cent, and the private sector 2.7 per cent. Human Resources Vnh Phc has abundant labor resources, accounting for 66% of the total population. The province has educational facilities to train more than 35,000 students annually with nearly 20,000 graduates to meet the needs of the labor market. The local government has created regulations and incentives to upgrade human resources to meet the requirements and growing demand for qualified labor of foreign investors and local businesses including the establishment of labor market information systems, trans-provincial and regional linkages to respond to growing labor demand and demand-based vocational training. Infrastructure Vnh Phc features a road, rail and waterway network and is located merely 8km from Noi Bai International Airport. There are 4 national highways running through the province including the important Hanoi Lao Cai railway route linking northern Vietnam to Yunnan province in China. The Government is planning to upgrade the Hanoi - Lao Cai, Vnh Phc Cai Lan - Hai Phong Port rail link to high speed rail. The Lo, Pho Day and Red rivers are running through the province Chu Phan, Vinh Thinh and Nhu Thuy Ports are being constructed for transportation of materials, goods, equipment, facilities between Hai Phong and Quang Ninh seaports to Vnh Phc province. However, Power outages are still frequent in the Red River Delta, where the median operation in Vnh Phc and Hai Duong claimed more than 130 stoppages according to the 2010 PCI report. With an emerging technology and automotive industry, investors are seemingly attracted to the effect of being near investors in their own industry, which bodes well for the development of an organic business cluster in these industries in the future.
11
Area: Population (ppl.): Total workforce: Industrial Land: Industrial Zones: GDP growth: Investors include:
1,231.8 Km 1.020.000 ~700,000 5,913 ha 20 19.1% (2010) Piaggio, Foxconn, Compal, Fullpower, GoMax, Honda ,Kumho, Lotte, YCH $ 2.32 Bn in 120 Projects
Foreign investment:
Piaggio has recently reinforced its production capacities in Vietnam by building a new facility on its site in the Vinh Phuc province. With this new 20.000 square meter industrial structure, implementing the best of Piaggios technologies and processes, the Group will be able to raise the production capacity from 100 000 units per year to 300 000 within mid 2012.
On 21st July, after many requests from the Belgian community, BeluxCham held the first time special event for the celebration of the Belgian national day. The beautiful pool garden of the fine-dining restaurant Le Toit Gourmand in District 2 was enriched with the Belgium atmosphere and flavor. More than 30 Beluxcham members and valued friends came and joined. With the hope to keep this success, Beluxcham decided to put this on the calendar as one of official annual events of Social Club. Up-coming events On 18th and 19th Oct 2011, the new Belgium Ambassador, Mr Bruno Angelet, will make his first official visit to HCM. On this occasion, Beluxcham has arranged an exclusive meeting to welcome his visit and provide Beluxcham members an opportunity to introduce themselves to their new Ambassador. The meeting will be held on 19th Oct at EuroCentre in HCMC. As usual, on this coming mid-Nov Beluxcham is going to mark the Kings Day with a special Drinks & Lunch. All Belgians will be invited. Particularly, Beluxcham members will enjoy the special discount. This Feast day also promises to bring an interesting and unfogetable time.
CCIFV organized together with the AFV (Amicale des Francophones du Vietnam), its yearly Cocktail de rentre. More than 400 people attended the event and enjoyed food and drinks together, at the Sofitel Plaza Saigon. Green & Intelligent Building: The CCIFV organized a workshop during the Eurochams GreenBiz Event. The attendees were introduced to Green Building solutions by experts from VGBC, Archetype, Bouygues, Gyproc and Legrand. Missions: In the last couple of months, our delegation visited the cities and economic regions of Vung Tau and Nha Trang. These missions, organized with Ubifrance and the French Embassy, were exceptional opportunities for our members and for the companies who joined us to get introduced to the local authorities of these promising regions. In HCMC, the CCIFV organizes a networking event every last Thursday of the month. In September our After Summer Break networking event with over 130 people was co-hosted by the Eurocham. In Hanoi, the CCIFV organizes networking every 2nd Thursday of the month, co-hosted by the Eurocham and other chambers. The last networking event, focused on Finance, banking and Insurance professional with over 100 persons. Upcoming Events HCMC: 27th of October: European Networking, at the Vascos, from 6:30pm Hanoi: 13rd of December: Breakfast debate with the Deputy General Inspector of the Vietnamese Public Service: Understand the Public Service Log on to www.ccifv.org for more information on upcoming events.
www.dbavietnam.net
The main upcoming event is the 3rd edition of the Dutch Open Golf tournament which will take place on 18 November in Long Thanh. A good opportunity to combine pleasure with (net) working and it promises to be to another great day for all participates with good prizes to be won. Please register as early as possible at infodbav@gmail.com On 10th November, the DBAV will organize a business lunch presentation from 12 to 2pm in which the current status of the Vietnamese economy will be discussed. 3rd Friday of the month Dutch Networking Drinks in Ho Chi Minh city will be held on Friday 21 October and in Hanoi on Thursday 13 October. Note: before the Drinks in Ho Chi Minh city on 21/10 a short presentation will be held about the first private orphanage in Vietnam. For further events and information please check our website www.dbavietnam.net
GBA Monthly Business Meeting: every first Monday in June, July, and September. There were more than 50 GBA members attending this monthly business meeting to be updated business information and to have a chance of getting together during the net-working dinner afterward. GBA HKBAV Joint Business Networking Evening: 10th August. GBA Chairman, Mr. Elmar Dutt, delivered the presentation with the topic: Decree 46 - New law on work-permits for foreigners - The Good, The Bad and The Ugly! GBA Nordcham Joint Networking Evening: 18th August. GBA together with Nordcham co-hosted business networking event in which Mr. Andy Lopata one of Europes Leading Business Networking Strategists, discussed why networking is so important, why so many people get it wrong and how strategic and focused approach can ensure that it works for participants. GBA - EuroCham Joint Networking Evening: 21st September, see page 15 for photos. Oktoberfest Saigon 2011: 7th & 8th, 11th 15th October: With more than 15.000 participants during seven evenings, the Oktoberfest 2011 marks not only one of the largest social events and parties in town this year, but the biggest Oktoberfest in Vietnam and South East Asia. Once again, everybody go loud with authentic German music from the Germans number-one band Trenkwalder and go low with all - you - can - eat cuisine and all - you - can - drink German Oktoberfest beer!
July 1st, Serafina Boeddu is ICHAM new Secretary General. She is coming from the Italian Chamber of Commerce in Korea. Furthermore, Michele DErcole is the new Vice Chairman and Paolo Fornari is a new Councillor. July 14th, on the occasion of ICHAM Extraordinary General Assembly, suggested amendments to ICHAM Statute have been approved. August 19th, ICHAM, in collaboration with Nordcham, organized a luncheon where an expert of KPMG explained new regulations of Transfer Pricing. August 22nd, Michele DErcole, ICHAM Vice President, held an interview for the program Sharing Vietnam at VTC10 studio, talking about ICHAMs activities, members, the Italian Business community and about his experience in Vietnam. September 9th, Massimiliano Guelfo, ICHAM President, held an interview on VTC8 channel about the decree 46 new regulations for the employment of foreigners in Vietnam. September 13th, in HCMC, 15th in Hanoi - on the occasion of the 150th anniversary of the unification of Italy- the Italian Embassy with the sponsorship of ICHAM, presented Andrea Centazzo Multimedia Concerts inspired on History of the Unification of Italy. September 23rd, ICHAM organized a round table where Mr Paolo Fornari, Viet Y Trading Service, talked about decree 46.
www.nordchamhn.org.vn
On June 18th, Nordcham Hanoi organized a business mixer event for Nordcham Hanoi members and guests. The event took place at the Southgate Bar and Restaurant. Following the summer holidays, Nordcham Hanoi kicked of with a lunch-on event on transfer pricing. The event was organized on August 19th, and Transfer Pricing Expert from KPMG presented the latest developments on the Governments enforcement of transfer pricing regulations. The event was organized in collaboration with the Italian Chamber of Commerce. On October 6th, Nordcham Hanoi organized another business mixer event for Nordcham Hanoi members and guests. The event took place at the Press Club. A Swedish comedy night was organized at the Cinemateque on October 8 th. Members of Juvenalorden conducted a special performance "Cupcakes & Marriage". The event also screened a number of Swedish comedy films. With a large part of the Nordic community showing up, the Cinemateque was packed to very last seat. For an update on coming events in October and November, please visit the Nordcham Hanoi website - www.nordchamhn.org.vn
HCMC 12th July - Business Luncheon on Energy and Power Supply in Vietnam
Over the past two to three years, enterprises in Vietnam have faced increasing power cuts and power quotas, especially in the South. The issue is not only the lack of power, but rather lack of advance information making it difficult for many enterprises to efficiently adapt and coordinate production plans in order to remain efficient. Many companies have therefore taken own actions: They boost production during low tariff hours, and stop or reduce production during peak-price. Even though this problem is not unique to Vietnam, many companies and their customers worry about the months to come and how much impact there will be. At this luncheon co-hosted with Vietrade, Mr. Trinh Ngoc Khanh - Head of Planning Department, Electricity Vietnam (EVN) elaborated how EVN could optimize coordination with enterprises on planning power quotas and other measures. Mr. Erdal Elver - Present and CEO, Siemens Ltd., Vietnam; Vice Chairman EuroCham shaed his thoughts on energy efficiency and solutions for green production as well as giving the perspective of foreign invested enterprises and how they cope with power shortages.
Ms. Nguyen Hong Ha - Deputy General Director, VCCI HCM and Mr. Oliver Massmann - Partner, Duane Morris Vietnam LLC assessed the potential impact of Decree 46 which amends and supplements a number of articles on the employment and administration of foreigners working in Vietnam (Decree 34). There is growing concerned that the new Decree 46 will discourage investment in Vietnam and a need to find solutions that satisfy both Vietnams need to control the labour market as well as foreigners freedom to hire their preferred staff without additional administrative burdens. EuroCham will continue recommending that employers should be allowed to select the right candidate based on their own discretion and internal processes.
HCMC 24th August - Update on Decree 46 - The Future of Work Permits for Foreigners
Amidst continuing concerns about inflation and current macroeconomic situation difficulties, how confident are Vietnamese consumers? What are the recent impacts of inflation, Vietnamese Goods Campaign, and promotions having on consumer behavior? What are the current/future trends and what are some of Vietnams business leaders thinking? At this EuroCham luncheon, Mr. Darin Williams - Managing Director, Nielsen Vietnam shared the insights from Nielsens Global Omnibus Survey, Business Barometer Study and other related consumer research studies.
HCMC 30 th August - Business Luncheon: Business Luncheon What is going on with Vietnamese consumers?
EuroCham joined a Finpro delegation with representatives from Danske Bank Group to visit the Mercedes Benz assembly factory in HCMC. A special thanks to Mercedes for their kind hosting and very informative tour of the facilities.
HCMC 8th September - Business Luncheon How to leverage market research and build your brand with impact
With a challenging economic outlook and fierce competition, only the strongest brands will survive across Vietnam placing a high degree of urgency on finding the right approach and positioning your brand here. Mr. Chris Elkin Managing Director, red brand builders and Mr. Colin Kinghorn - Country Head, Synovate Business Consulting shared tehir expertise on how will brands need to understand this changing consumer landscape and how they should react to outside pressures to retain existing and attract new customers? This Eurocham luncheon offered food for thought on the latest Vietnamese consumer trends and how-to steps to fully leverage your market research knowledge and build your brand for maximum impact.
Hanoi 9th September - Business Luncheon - Hanois Future towards 2020 and the Role of Business in Developing the Nations Capital
Hanoi has recently begun to overtake other cities and provinces of the country in terms of growth and development. The city is currently in urgent need of large-scale foreign investment and is doing all it can to open its doors to foreign investors. The special speaker Mr. Nguyen The Thao, Chairman of Hanoi Peoples Committee joined this unique luncheon to discuss with EuroCham members and guests on the future development of the city including a Master Plan for Hanoi socio-economic development until 2020 and the potential role of European business in the Citys development. There was a large turnout at Sofitel Metropole Hanoi.
HCMC 14th September - Networking Cocktail: GreenBiz 2011 Launch @ Moevenpick Hotel Saigon
Hanoi 29th September - MoF Annual Dialogue Tax and Custom Issues in Vietnam in 2011
This special half-day dialogue was moderated by senior experts from EuroCham Tax Working Group and multinational members with a panel discussion with Minister of Finances Vice Minister H.E. Mr. Do Hoang Anh Tuan and its cabinet with senior leaders from General Taxation Department and Vietnam Customs Department. The open dialogue focusing around EuroChams main tax and custom issues provided an important platform for European investors and local businesses to exchange ideas on tax and custom system in Vietnam. A large amount of audience was attracted in the conference room at the Sofitel Plaza Hanoi.
Advocacy Update
EuroCham Sector Committee (SC) Activities Update
EuroCham Sector Committees provide an efficient forum for EuroCham members to network, advocate and meet to discuss matters of particular interest and relevance to their sector. In particular, EuroCham Sector Committees allow our members to write advocacy letters and arrange meetings with key government officials in Vietnam. Transportation and Logistics SC (Sep.): Development of a new SEZ deep sea port DAWEI (Myanmar) will open up transport and logistics opportunities for business that will positively impact Vietnams Southern Economic Corridor. In particular, Da Nang Port and My Thuy Port. For Q4/2011, EuroCham TL SC wants to further strengthen its cooperation with the Vietnam Marine Association advocating to review and to revise local port fees. Pharma Group SC (Sep.): EuroCham Pharma Group strongly support the white paper on access to medicines presented at the 8th round of negotiations of the TransPacific Partnership (TPP) that took place in early September 2011 (Chicago). It was recommended that Vietnam to allow access window that requires pharmaceutical companies to market newly developed medicines in TPP countries within a certain window of time and in exchange providing adequate intellectual property protections for medical products. CropLife SC (Sep.): EuroCham CropLife SC held a conference addressing the crisis of counterfeit and illegal pesticide (12th Sep. 2011, HCMC). Currently, The illegal and counterfeit pesticides are spreading uncontrollably which has adversely influenced to agricultural development, famers income and the evironment surround. CL SC supports police and customs that deal with criminal that are supplying counterfeit and illegal pesticides, registration of legal pesticides, identification of illegal pesticides, reporting illegal pesticides to the police, and how customs can stop the import of illegal pesticides entering Vietnam. Taxation & Transfer pricing SC (Sep.): At recent EuroCham Tax and Custom Conference (29th Sep. 2011, Hanoi), TT SC representatives presented several pending issues to MOF, including Heads of Tax Policy Department, Corporate Finance Department, the General Customs of Vietnam and the General Taxation Department. The authority promised to reorganize various recommendations made, e.g. CIT VAT project transfer and Foreign Contractor Withholding Tax enquiries. Wine & Spirits SC (Sep.): EuroCham WS SC team had met with the MOIT (28th Sep., Hanoi) to continue to address our industrys concerns on pre-export labeling, licensing conditions, etc., which are part of the main contents of the revised Decree 40. The newly revise Decree would is planned to be signed off by December this year, but take effect from 1 Jan 2013, to provide suitable timeframe for the businesses to have a good preparation. MOIT will organize another consultative meeting, which will engage more related departments within the MOIT (Legal/Domestic Market/Market Control/etc.), the related ministries (MOF/MOH), and wider industry players, tentatively in October, but exact time will be confirmed soon. A second draft will come out of this meeting. This may be a finalized document or not depends on how much alignment could be reach among the stakeholders. Human Resources SC (July/Aug/Sep): EuroCham sent letter / position paper to MOLISA, raising concern about some provisions of Decree No. 46/2011/N-CP (Decree 46) - issued by the Government on 17th June 2011 - that makes a number of major changes to Decree 34/2008/N-CP dated 25 March 2008 on Employment and Administration of Foreigners Working in Vietnam. Early September, EuroCham representatives have had a face-to-face meeting with VM Nguyen Thanh Hoa and his cabinet, whereat he invited EuroCham to communicate on a guideline draft for Decree 46. EuroCham HR finalized working permit position paper and is scheduled to meet MOLISA for consultation in October. Multinational SC (MNC SC): Organized high level private meetings / luncheons e.g. with H.E. Mr Nguyen The Thoa Mayor of Hanoi (Hanois Future towards 2020 and the role of the Business Community in developing the Nations Capital); MOF Vice Minister H.E. Do Hoang Tuan Anh in Hanoi exchanging on current tax and customs issues in Vietnam 2011. EuroCham is currently establishing the following new Sector Committees and we would like to see more members participate! 1. Manufacturing; 2. Small- and Medium Enterprises; 3. Mergers & Acquisitions (M&A); 4. Standardization; 5. Retail- and Consumer Goods. If you want to join one of the above new Sector Committees, please contact our Sector Committee coordinator at: sec.comms@eurochamvn.org or call the EuroCham Office in HCMC on (+84-8) 3827 2715
16
White Book on: Trade Policy Recommendations from Vietnamese Business Associations launched
As part of the Multiateral Trade Assisstant Project EU Vietnam Mutrap III (MUTRAP III), EuroCham has been assigned by the European Union a project on Capacity building on Trade policy for Vietnamese Business Associations. In August 2011, EuroCham has completed one of the most important activities of the project in helping Vietnamese business Associations to write a book on Trade Policy Recommendations from Vietnamese Business Associations. This book aims to summarize the key issues affecting the business climate for Vietnamese businesses for the Vietnamese Government and it covers the major issues or concern for member companies of local business association like e. g. tax, import and export, intellectual property rights, environmental issues, infrastructure and the quality of issuance of legal documents. Besides, the book comments on operations of business associations to improve the voice of Vietnamese Business Associations in the business community. Based on EuroChams experiences in writing our Whitebook on Trade/Investment Issues and Recommendations from 2008 to 2011, EuroCham has supported nine (9) Vietnamese Business Associations (VBA), including the Vietnam Textile and Apparel Association (VITAS), the Vietnam Leather and Footwear Association (LEFASO), the Vietnam Association of Seafood Exporters and Producers (VASEP), the Hanoi Small and Medium Enterprises Association (HASMEA), the Ho Chi Minh City Handicraft and Wood Industry Association (HAWA), the Young Business People Association of Ho Chi Minh City (YBA), VCCI Ho Chi Minh; Dong Nai Province's Exporters and Importers Club and the Can Tho Business Association (CBA). After printing this book, EuroCham has held a roundtable with related agencies from MOIT, NOIP, MOF, MONRE, Ministry of Justice and Ministry of Home Affairs on Mr. Jean-Jacques Bouflet, Head of Trade and Economic 17th August, 2011 in Hanoi. Through the roundtable, local assoAffairs at the Delegation of the European Union in Vietnam ciations have received direct feedback from related agencies, the speaking at the official launch of the White Book in Hanoi. feedback given was very positive and gave high appreciation from EuroChams initiative. On 19th August, EuroCham also held a workshop and lively discussion for the official launch of the book to the public and media channels.
The SWITCH project Helping Vietnamese SMEs adapt and adopt corporate social responsibility (CSR) for improved linkages with global supply chains in sustainable production aims to improve the environmental and social performance of Vietnamese SMEs and enhance their international competitiveness through better understanding of corporate social and environmental standards and strengthened cooperation between Europe and Asia. The lead partner is UNIDO and there are 8 partners in this project including VCCI, EUROCHAM, LEFASO, VITAS, VEIA, ILLSA (Institute of Labour science and social affairs), STAMEQ (Directorate for standards and quality), MTEC (National Metal and Materials Technology Center - Thailand) and SEQUA (German). On 23rd and 25th August, 2011, CSR Calendar Forum on Labour Practice were held in Ho Chi Minh City and Hanoi. Under the theme Promoting sound labour relations for better competitiveness of enterprise in textile and garment and leather and footwear industries in Vietnam, the forum has focused on measures to develop sound industrial relations at workplace and other levels and to set up an active dialogue among employers, workers and other stakeholders like trade union and buyers. Key speaker is Mr. Vu Huu Tuyen with more than 20 years experiences on labor policies and laws, international laws and administrative reform. He is now Deputy Chief of Party of an USAID funded project on Supporting Implementation of Labour Laws and Promotion of Sound Industrial Relations in Vietnam. Speakers have shared experiences on possible agreements and procedures as well as the formalization of the dialogue process in order to keep it trustful and transparent.
17
Law on PCR intends to be a progressive step in protecting the interests of consumers, and a transitional step for a new period of a fairer marketplace for consumers and traders alike.
In recent times, violations of consumer rights have been increasing in both their number and severity, whilst the relevant regulations still contained many inadequacies and entanglements, thus obstructing the process of detecting and dealing with violations of consumer rights. In practice, there have been a growing amount of cases in which consumers are subject to losses and damages. In light of this, on 17 November 2010, the National Assembly promulgated Law No. 59/2010/QH12 on the protection of consumers rights (Law on PCR), which has been in force from the beginning of July 2011. The Law on PCR replaces preceding legislation, Ordinance No. 13/1999/PL-UBTVQH10 on the protection of consumer rights (Ordinance on PCR). In general, the Law on PCR contains certain noteworthy regulations on consumer protection as follows:
New Members
Welcome to our new Corporate Members
Bamboo y Bambu
PT Bonna Indonesia
A Worldwide Independent Financial Advisory Group The deVere Group The Rep. Office of Grohe Pacific Pte. Ltd in HCMC Schindler Vietnam Ltd Turner & Townsend Co., ltd.
Individual Member
Mr. Sebastiaan Weyler Viet Ma Aluminium Corporation
The above are new paid members who provided their full profiles in time for printing. Further details of these and other new members can be found in our online membership directory: www.eurochamvn.org/Directory
21
EuroCham will launch the 4th Edition of the Trade / Investment Issues and Recommendations book (White Book) at the end of November.
Compiled from position papers drafted by the chairs of our Sector Committees, the booklet identifies problems inhibiting business in Vietnam, between Vietnam and the EU and other relevant areas such as WTO commitments and compliance. The booklet offers holistic and realistic recommendations to the relevant authorities, be they local, national, regional, and European that could be pursued. Each chapter will provide a concise overview of a particular issue affecting the various business sectors in Vietnam.
This is the key annual advocacy publication of EuroCham. Dont miss it!
EuroCham will organize 2011 Year End Party for members in mid-December in HCMC and in Hanoi. Please see our website www.eurochamvn.org for details.
22