Higher ceiling for foreign homeownership?By Le Anh Estate projects in districts 2 and 7 are favored by foreign homebuyers - PHOTO: THANH HOA The foreign ownership ceilings of some real estate projects in HCMC, especially those in districts 2 and 7, have been reached as the demand from foreign homebuyers is rising. In this context, should the foreign homeownership limit be raised? Nguyen Duc Tai, a real estate broker in District 2, just received another request a short while ago. Two South Korean customers contacted Tai asking him to search for an apartment in the district that they could own. Current regulations set the ceiling of foreign ownership in realty projects at 30% of the total number of houses or apartments. The problem was that limit in all the projects which meet the Korean house seekers’ requirements offered by Tai’s firms had been crossed. “I’ve tried to search for other projects but I’ve failed to find one that suits the need … [Read more...] about Higher ceiling for foreign homeownership?
Why foreign direct investment is important
Ho Chi Minh City and Japan’s Yokohama are working to establish a direct air link that serves the increase number of business travellers. The expected flights will add to already operating Vietnam Airlines direct flights from Ho Chi Minh City to Tokyo, Osaka and Fukuoka. “At Tan Son Nhat Airport, the busiest international routes are flights to Japanese cities. The Ho Chi Minh City/Yokohama route would make it easier for more Japanese investors to come to Vietnam,” said Ho Chi Minh City chairman Le Hoang Quan at Japanese Investors Day in the southern hub on February 14. He explained that the city attached great importance to Japanese investors in its efforts to attract foreign direct investment, and that is why he joined the event – to listen to Japanese investors. Quan added that 25 Japanese companies already registered as tenants in the Vie-Pan Techno Park in Hiep Phuoc Industrial Park in Nha Be district. Work started on February 17 on the $31 million … [Read more...] about Ho Chi Minh City eyes direct flights to Yokohama
Investment attraction is difficult despite advantages In general, Vietnam is an agricultural country with more than 70 percent of its population living by agriculture. While industries and services have seen rapid growth in recent years, agriculture remained a ‘lifebuoy’ for the economy, especially in crisis periods from 1997-1999 and 2011-2014. Owning a long coastline, dense rivers and streams and a tropical monsoon climate, Vietnam has many advantages for agricultural development. A large population with working-age people accounting for a majority offers another advantage for Vietnamese agriculture. Apart from these advantages, Vietnam has put in place appropriate policies to attract investment into agriculture. The government promulgated Decree 61/2010/ND-CP in 2010 and Decree 210/2013/ND-CP in 2013 regarding the policy of encouraging businesses to invest in agriculture and rural development. On September 3, 2014, the Ministry of Planning and Investment (MPI) issued … [Read more...] about Investment in agriculture: Reasons for difficulties
The auto industry needs consistent policies to developLow local content Vietnam’s automotive industry first appeared in 1990, initially and basically based on the motorcycle manufacturing and assembly industry. This is why the domestic automotive industry developed slowly for a long time. This is reflected with the sector’s local content that is much lower than the target of 40 percent set for 2005 and 60 percent set for 2010 for such popular vehicles as trucks, buses and cars. Nguyen Thi Xuan Thuy from the Ministry of Industry and Trade’s Industrial Policy and Strategy Institute, said that the cost to make automobiles in Vietnam is about 20 percent higher than in other ASEAN countries. Support industries remain less developed in Vietnam so many parts are imported for auto assembly. This makes the price of domestically manufactured automobiles less competitive than that of product of the same kind from other ASEAN countries. Most of support industry enterprises in … [Read more...] about Automotive industry development: Increasing local content is crucial
Toyota Việt Nam has asked the Vĩnh Phúc Province People’s Committee to lease 9.1 hectares of land in Phúc Yên city to expand its plant and increase its annual capacity from the current 50,000 units to 90,000 by 2023. — Photo vietnamfinance.vn Toyota Việt Nam has asked the Vĩnh Phúc Province People’s Committee to lease 9.1 hectares of land in Phúc Yên city to expand its plant and increase its annual capacity from the current 50,000 units to 90,000 by 2023. It plans to invest around US$40 million. Earlier Hyundai announced it would build a second plant in Việt Nam in the northern province of Ninh Bình. Mitsubishi Motors expects its second factory in the country to start production later this year. The sharp increase in foreign direct investment in the automobile industry has also been indicated in the latest report by the Ministry of Planning and Investment’s Foreign Investment Department. It … [Read more...] about Foreign auto makers’ U-turn: not just not quitting VN, expanding