Vietnam Introduces New Labor Code for 2021

ASEAN Briefing, 27 Jan 2021

 

Key provisions of the labor code

Working hours

While the working hour limit remains the same as 48 hours per week, the new code states that normal working hours cannot exceed eight hours a day or 48 hours per week. However, if the employer and employee agree on an overtime deal, the overtime cannot exceed 12 hours a day, 40 hours a month, and 200 hours a year. For industries such as textile and clothing, footwear and electronics in which seasonal orders during certain times of the year require an extensive workload, an overtime cap of 300 hours has been specified.

Labor contracts

The amended labor code now lists only two types of labor contracts as compared to three earlier. Definite-term contracts, which cannot have a term longer than three years, and indefinite-term contracts. The definite contract can only be renewed once. Foreigners who have work permits (valid for two years) will also be able to renew only once. Seasonal contracts will no longer be permitted from 2021.

Termination

In a boost to employees, employees will be able to immediately terminate a contract for mistreatment, pregnancy, and if the employer fails to pay salary on time. As per the current labor policy employees are subject to minimum notice requirements (30 days for a definite term, 45 days for the indefinite term).

Unions

Vietnam will now allow independent trade unions to operate as opposed to currently being supervised by the state-run Vietnam General Confederation of Labor (VGCL). The independent union will still be required to get permission from state authorities to operate. This is partly seen as Vietnam enters into free trade agreements that require the opening of trade union rights. Nevertheless, further guidance will be required on how this will happen practically.

Retirement age

Vietnam will also increase the retirement age for men to 62 from the current 60 and increase the same for women to 55 from the current 50. However, workers may retire later or sooner depending on the situation. For example, employees working in dangerous environments or involved in heavy lifting can retire sooner, while those who work in the private sector or in high skilled jobs can retire later. The maximum extension for this will be five years. However, the increase in retirement age will be done gradually for men and women by 2028 and 2035 respectively. The increase in retirement has been done to avoid a labor shortage from 2040 and to address social insurance deficits.

Discrimination

The new code has safeguards protecting employees from discrimination at the workplace. This includes protection from sexual harassment and discrimination based on skin color, race, nationality, ethnic group, gender, marital status, pregnancy, political views, disability, HIV status or if in a trade group. The amended labor code also enhances protections for younger workers.

In full: https://www.aseanbriefing.com/news/vietnam-introduces-new-labor-code-for-2021/

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Hansae Viet Nam: Resolving grievances and moving towards sustainable development

 BW, 14 Oct. 2020

he grievance handling systems in garment and apparel factories are seen as one of the key factors that may affect employee health and wellbeing, leaving a significant impact on the business revenue and output of the employers. According to a recent publication of the International Labour Organization (ILO), “grievance handling is a key element in ensuring sound collective labour relations in the workplace”, which lays a solid foundation for strong employer-employee relationships, thus leads to increased productivity and profits for the business. Hence, the establishment and encouragement of a solid grievance handling system is crucial and it should be seriously taken in a coherent and coordinated manner, especially for the Better Work Viet Nam (BWV) participating factories. 

Hansae Viet Nam Co., Ltd (Hansae), a factory located in Cu Chi district, Ho Chi Minh City specializing in knitted and woven garments, is pioneering a new way to address grievances. Hansae joined ILO Better Work Viet Nam since 2009. Being a part of the programme, Hansae has gone though many yearly assessments to evaluate to what degree the factory meets legal requirements on labour compliance issues. In the first few years, Hansae Viet Nam didn’t have much awareness of the importance of developing a strong grievance handling system, therefore, the company went through a phase of trial and error.

Through advisory and assessment sessions working with BWV Enterprise Advisors, Hansae Management has realized the importance of establishing a formal grievance procedure, and the factory has gradually built a new Grievance Handling unit to ensure that the grievances of the employees are being seriously taken.

The idea started with the establishment of an Grievance Handling Unit and recruitment of full-time Grievance Handling staff members. More interestingly, Grievance Handling staff is also part of a program that manages bipartite dialogue between management and workers. Thus, the grievance handling will also be facilitated in this way. As a member of Hansae Grievances Handling Unit, Thuan Tran quickly understood the positive impact and significant changes when a strong grievances handling system was introduced at the factory.

Read full article

 

Better Work Vietnam launches new app to support their local garment sector

 BW

11 Oct 2020

From June to September 2020, Better Work Vietnam (BWV) has successfully piloted a new, interactive mobile application in 51 factories in Vietnam. This app will be launched shortly across BWV participating factories as a scaling strategy to upgrade its performance and efficiency, bring the programme and its key stakeholders closer to the workers during the COVID-19 pandemic, and to increase their knowledge of work-related and global issues.

Better Work Vietnam sees the implementation of tech solutions across the sector as a key ally to further scale up its engagement with local factories in the future. That’s why, in collaboration with Vietnam’s health and labour ministries, the Vietnam General Confederation of Labour and employer groups, Better Work Vietnam has developed a chat and learning application called “Gopy.”

The app is available in Vietnamese and English and is accompanied by a web portal, as a part of its sustainability road map.

“Gopy was not only meant to support workers during the COVID-19 pandemic, but was especially thought to help us deliver our services and even go beyond them in the future,” says Pham Quoc Thuan, Better Work Vietnam Enterprise Advisor Team Leader.

“The app includes information about Better Work, its signature Performance Improvement Consultative Committee (PICC) — an enterprise-level advisory committee made of an equal number of management and worker representatives — and our local stakeholders. Through this app, we aim to further empower the workers, factories and the PICC members by giving them the chance to self-assess their work situation, monitor the risks they face and the conditions of their premises compliance.”

Read more

ប្រជាជនវៀតណាម ១២ម៉ឺននាក់ បាត់បង់ការងារ អំឡុងពេលផ្ទុះការឆ្លងឡើងវិញ នៃមេរោគកូវីដ១៩

 DAP, 15 Aug. 2020

បរទេស៖ និយោជិកប្រហែល ១២០ ០០០ នាក់ នៃអាជីវកម្មប្រហែល ៤០០០ អាជីវកម្មនៅក្នុងទីក្រុង ហូជីមិញ ទំនងជាត្រូវបាត់បង់ការពារ ចាប់ពីពេលនេះរហូតដល់ខែកញ្ញា ជាមួយនឹងការលេចចេញជាថ្មី នៃការចម្លងមេរោគ នៅក្នុងសហគមន៍ ។

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High-level Swiss delegation visits garment factory in Dong Nai

By Better Work
July 12, 2019

HANOI – A high-level Swiss delegation toured a garment factory in the southern province of Dong Nai on 12 July to witness positive changes in working conditions and competitiveness of the country’s leading export industry and the fruits of the partnership between the Swiss government, Better Work programme and Vietnamese industry.

Swiss Federal Councillor, Guy Parmelin, Head of the Federal Department of Economic Affairs, Education and Research, led the delegation.

Read full article https://betterwork.org/blog/2019/07/12/high-level-swiss-delegation-visits-garment-factory-in-dong-nai/

Vietnam looks for reform and investment boost from TPP deal

Vietnam looks for reform and investment boost from TPP deal

Financial Times

“Vietnam has already made huge gains in garment and footwear production, and these deals will help boost its comparative advantage as factories look to relocate from China, promoting more job creation and technology transfer,” said Johanna Chua, an

Vietnam downwardly revises 2012 garment export target

Source: Fibre2Fashion
August 18, 2012 (Vietnam)
Fibre2fashion News Desk - India

Vietnam Textile and Apparel Association (VITAS) has reduced the garment and textile export-value target for the current year from US$ 19 billion to US$ 17-17.5 billion, mainly due to sluggish export growth and a drop in orders.

Although Vietnam’s garment and textile exports grew at a year-on-year rate of 7.5 percent to reach US$ 9.2 billion during the first seven months of the year, the export growth rate was far below the 30 percent growth achieved during the same period last year.

Garment enterprises face obstacles after relocation from city

Source: Saigon GP Daily
Thursday, Aug 23, 2012
By My Hanh - Translated by Uyen Phuong

While the idea of relocating enterprises causing pollution, or employing a huge work force, outside of Ho Chi Minh City limits seems like a healthy policy, actually transferring them to the suburbs or outlying provinces has many obstacles.

Government of the Socialist Republic of Vietnam : Garment and textile industry seeks to boost export

4-traders
07/03/2012

VGP - Vietnam's garment and textile sector has seen fast and sustainable growth over the past years, playing an important role in national socio-economic development.

Vietnam is one of the top 10 countries that have highest export turnover of garment and textile in the world. The sector aims to earn an export turnover of US$15 billion by the end of 2012, US$22.5 billion ny 2015 and US$31 billion by 2020, maintaining its leading position in exports.

Garment, textile exports rise by 6%

Viet Nam News
21 June 2012


HA NOI — Viet Nam expected to earn about US$7.5 billion from exports of fibre, textile and garment in the first half of this year, up 6 per cent against the same period last year.

In reality, the quantity of garment products exported increased 12 per cent from the corresponding time because of lower prices on the global market.

"This reflected great efforts by the textile and apparel sector in the face of the global economic crisis," said Le Tien Truong, deputy director-general of the Viet Nam National Textile and Garment Group (Vinatex) in an online conference held by the group in Ha Noi, Da Nang and HCM City.

Garment, textile sector urged to restructure

Vietnam News, 15 May 2012
 
HA NOI — Viet Nam's garment and textile sector faces problems with its structure and production methods, said Nguyen Van Tuan, deputy general secretary of Viet Nam Garment and Textile Association.
Tuan said the country needed 400,000 tonnes of cotton per year, but domestic production could meet a tiny 0.75 per cent of the demand. The industry also supplied only 30 per cent of a yearly demand of 400,000 tonnes of man-made fibre.

He said the sector continues to import 100 per cent of its spare parts and 70 per cent of the materials, which, combined with a low production capacity, makes Viet Nam less competitive than other countries.
He added that one of the biggest challenges was that the sector last year imported 5.2 billion metres of fabric out of a total 6 billion metres needed.

Than Duc Viet, managing director of Garment 10 Company, agreed that garment and textile production had been determined by market.

In most of big markets including the US, Eastern Europe and Japan, retailers accounted for 70 to 90 per cent of the market share while 10 to 30 per cent belonged to commercial businesses and producers under the original brand manufacturer (OBM).

"This means that Vietnamese garment and textile producers do not have direct access to markets but have to operate through middlemen," Viet said.

Last year, the world's garment and textile turnover was US$480 billion. Viet Nam accounted for 3 per cent of that figure with a turnover of $14.5 billion, though it has been listed among the five leading exporters.
In addition, the sector has been lacking capital and mainly dependent on bank loans. Several businesses have not expanded their production or upgraded technologies because of high interest rates.

Pham Van Chat, a representative from the Ministry of Industry and Trade, said garment and textile enterprises have been experiencing a serious capital shortage even though the Government and commercial banks have provided solutions to help them access loans.

Dang Phuong Dung, the association's vice chairwoman cum general secretary, said the sector should focus on building and expanding its distribution system, building Vietnamese trademarks and increasing co-operation. 

Dung asked garment and textile businesses to develop their brand names in neighbouring markets such as Laos, Cambodia and Myanmar.

The association said the industry should develop, reduce imports and increase value for businesses. — VNS

Garment industry focuses on sustainable growth

Source: VietNamNet Bridge, 05 June 2011

VietNamNet Bridge - The textile and garment industry has become a key economic sector in Vietnam, as it has a sustainable growth and a focus on an ongoing investment in both labor and technology.

 

Though the global economy has faced many difficulties during the past two years, the export of Vietnamese textile and garment products has sustained growth.

While most of the countries exporting textile and garment products have seen a decrease in exports, Vietnam has retained an increase.

The textile and garment export value exceeded the target of US$11.2 billion in 2010. In the context of new changes in the global economy, the sector has set a moderate target of US$12.5-13 billion for this year.

To achieve the 2011 target, local enterprises have boost production and exports since early this year. The export turnover is estimated to reach an average of US$1 billion per month. The export value hit a record high of nearly US$1.5 in May.

In the first five months of the year, Vietnam exported textile and garment products worth US$5.1 billion, a year-on-year rise of approximately 36 percent.

After dizzying hikes in fabric prices, prices of cotton and polyester fabric have gone down in May. This has resulted in a reduction in clothing prices. Therefore, apparel companies expect more orders from importers due to the price decrease.

Japanese companies continue to import clothes from Vietnam, in spite of the recent tsunami tragedy, as they have been for the last two and a half years. The export of protection uniforms to Japan has even soared.

At a meeting with Vietnamese textile and apparel companies in early May, Fumio Koyama from the Japan International Cooperation Agency (JICA) said Japanese investors planned to move 30 percent of their textile and garment factories from China to other countries in the next five years, with Vietnam as a favorite destination.

Moving factories from China to Vietnam will enable companies to benefit from the tax exemption regulated in the Vietnam-Japan Economic Partnership Agreement.

Pham Xuan Hong, general director of Saigon 3 Garment Joint Stock Company, which has exported 50 percent of its output to Japan, said Uniqlo - a Japanese fashion retail group and Saigon 3 Company’s long-term partner – has asked his company to gradually increase the quantity of clothes sold to Uniqlo and double the quantity by 2015 compared to now.

Besides targeting the regular importers in the US, EU and Japan, Vietnamese textile and garment products are making headway with Russian importers.

International economists said textile and garment production would move from Eastern European countries to Asian countries in 3-4 years. China is presently meeting 70 percent of the clothing demand of the world but is now reducing production.

Economists think this is a good time for Indian, Bangladeshi, Pakistani, Vietnamese and Cambodian clothing manufacturers to expand production and exports.

Taking care of labor

Vietnamese enterprises have now no need to look for importers but they are concerned about worker turnover.

Le Dong Trieu, general director of Gia Dinh Textile and Garment Corporation, said previously enterprises only focused on business growth but now they must focus on sustainable development.

They have agreed to cut profits to raise salaries for their staff and workers, he added.

In addition, they are investing in better technology and management to increase labor productivity.

Saigon Garment Production and Trading JS Company (Garmex) said thanks to good management, productivity of a worker has hiked by US$15 per day this year from US$11 per day last year.

The average monthly salary of a worker of Gia Dinh Corporation is currently VND4 million, while it was VND3.2 million in 2010.

The figure is VND4.5-5.5 million for workers of Saigon 3, Garmex and Legamex companies.

To maintain sustainable growth in textile and garment industry, enterprises are now taking good care of their workers and ensure them a stable income.

Source: SGGP
Desco 73881 Polyester Static Control Garment, Small, Blue 

Cambodian, Lao PMs meet on bilateral ties

Source: People's Daily Online, 7 March 2011

Lao Prime Minister Thongsing Thammavong (2nd L, front) and Cambodian Prime Minister Hun Sen (1st L, front) inspect the guard of honour in front of the Peace Palace in Phnom Penh, Cambodia, on March 7, 2011. Thongsing arrived here on Monday to pay a two-day official visit. (Xinhua/Sovannara)


Cambodian Prime Minister Hun Sen held a meeting with his visiting Lao counterpart Thongsing Thammavong on Monday.

During the meeting, the two leaders held talks on issues of strengthening and expanding bilateral cooperation on trade, investment, cross-border transportation, security, education, culture, border demarcation, electricity and air-service, the government's spokesman and Information Minister Khieu Kanharith told reporters after the meeting.

Prime Minister Hun Sen informed Thongsing about the border conflict between Cambodia and Thailand over the disputed 11th century Preah Vihear temple during the meeting, the spokesman said.


Lonely Planet Vietnam Cambodia Laos & the Greater Mekong (Multi Country Guide)
Jamais Sans Vous (Belgium, France, Morocco, Algeria, Cambodia, Vietnam, Laos, Thailand)
Vietnam, Laos & Cambodia Adventure Guide (Adventure Guides)
LAOS - Country Series - White Women's / Girls Camisole (Girlie / Babydoll) - size Medium 
Vista Point PHNOM PENH Cambodia

The Lao prime minister said that his government has been keeping close eyes on the border dispute between Cambodia and Thailand.

The Lao prime minister arrived here on Monday morning for a two- day official visit.

During the visit, he will also pay courtesy calls to Chea Sim, president of the Senate, Heng Samrin, president of the National Assembly, and will also be received at Royal Audience by King Norodom Sihamoni.

Source: Xinhua

230 companies show products at int’l textile, garments fair

BUSINESS

Thursday ,Oct 28,2010, Posted at: 11:36(GMT+7)

The 10th Vietnam International Textile and Garments Industry Exhibition, the largest annual garment event for exporters, started Wednesday in Ho Chi Minh City with about 230 exhibiting companies. International brands from Australia, Belgium, China, France, German, Holland, India, Indonesia, Israel, Italy, Japan, Switzerland, Taiwan, Turkey and the US are taking part in the four-day exhibition, staged at the Saigon Exhibition and Convention Center in District 7. The exhibits at the event include machines and technologies for the textile and garments industry. Major exhibitors include Brother, Calmat, HASHIMA, Kornit, Kauo Heng, Luwa, Mitsuyin, Naomoto, Organ, Pegasus, Schenk, Siruba, SwissTex, and Viet Tien Tung Shing. Birla Cellulose, a first-time participant, introduces its new biodegradable and sustainable resources in the textile and garment industry. A fashion show is held during the first three show days for famous brand names such as CK, Diesel and Levi’s. Models perform in a fashion show in the opening day of the 10th Vietnam International Textile and Garments Industry Exhibition in Ho Chi Minh City on Oct. 27, 2010 (Photo: Thuy Hoa) The fair is organized by the Vietnam National Trade Fair & Advertising Company (Vinexad), Paper Communication Exhibition Service Co., and Yorkers Trade & Marketing Services Co. According to a report by the Vietnamese Ministry of Industry and Trade, Vietnam earned US$5.87 billion from textile and garment exports in between January and July, a year-on-year rise of 17.4 percent. The industry’s export revenue is expected to increase by 15 percent this year, and even reach US$20 billion by 2020.

Garment exports on target

Workers make clothes for export at a factory in the northern province of Ninh Binh. The textile and garment industry is on track to reach its annual export target of US$10.5 billion by November. — VNA/VNS Photo Tran Viet

Source: Vietnam News, October 5, 2010
HA NOI — The textile and garment industry will meet its annual export target of US$10.5 billion by November, said vice chairman and general secretary of the Viet Nam Textile and Apparel Association (Vitas) Le Van Dao.

Dao estimated that the industry would earn more than $1 billion each month in the fourth quarter.

September was the third consecutive month the industry fetched more than $1 billion from exports, bringing the sector's total export value in the first nine months of this year to more than $8 billion, a year-on-year increase of 20.6 per cent, according to the General Statistics Office.

Dao said many garment exporters had orders for the end of this year and even for the beginning of next year.

Over the past nine months, exports to the big markets have recorded high growth. Exports to the US increased 22.1 per cent to $3.94 billion while the rising figures to the EU and Japan were 6.7 per cent and 14.3 per cent to $1.18 billion and $691 million, respectively.

Exports to North Korea surged 64 per cent thanks to the impact of its Free Trade Agreement with ASEAN.

However, Pham Xuan Hong, Vitas deputy chairman, said the garment industry was facing a shortage of labour and an increase in the price of transport and power.

A surge in the price of cotton on the world market also had a negative impact on the industry. A tonne of cotton has risen 45 per cent since the same period last year to $1,900-2,000 while the industry has to import up to 95 per cent of its cotton. The industry imported 260,000 tonnes of cotton in the first nine months of the year and estimates that figure will reach roughly 370,000 tonnes by the end of the year.

Hong said garment exporters were seeking new sources from Japan and ASEAN countries in order to enjoy preferential taxes.

To fulfil the target of $19 billion from exports by 2015 and $25 billion by 2020, the garment sector is actively implementing programmes related to cotton cultivation to increase domestic supplies and develop human resources to meet the increasing demands of the sector.

The sector is also promoting its trademark and setting up distribution networks nationwide to take a firm foothold in the domestic market. — VNS

Apparel exporters to pass benchmark

Vietnam News

September, 28 2010

HA NOI — The textile and garment sector's export value is expected to earn US$7.5 billion during the first nine months, a 17-per -cent increase against the same period last year, reports the Viet Nam Textile and Apparel Association.

The industry is likely to surpass its scheduled $10.5 billion benchmark for the year.

The sector's solid performance is attributed to an increase in orders from foreign clients and the products' prices increased by 15-20 per cent.

Export growth to the European market keep stagnant, while other markets remain accelerating during the period.

The country's export to US market increases around 20 per cent and to Japan raises by 15 per cent and to ASEAN nations goes up by 17 per cent.

Especially, the trade agreement between ASEAN with South Korea has helped boost Vietnamese garments' export to the market with the sharp increase of 80 per cent.

The association reported that many garment makers had so far received enough orders for export this year, and signed contracts for export next year.

However, the association claimed that the early orders may shrink profit of the enterprises amid on-rising prices of input materials, accessories and higher salaries.

To satisfy increasing demand of international contracts, ten companies under the Viet Nam National Textile and Garment Group (Vinatex) have recently made production expansion investments to meet increasing orders from foreign partners as well as higher demand at the local market.

The Nha Be Garment Joint stock Co has approved a plan to inject thousands of billions of dong to implement tens of projects on textile, garment, washing and dyeing.

The Dap Cau Garment Joint Stock Co invested nearly VND100 billion ($5.13 million) in a new factory in the northern province of Bac Ninh. It was put into operation in February and has the capacity to produce 9 million products annually.

Nguyen Dang Luan, chairman of Dap Cau Co said the new facility would help the firm meet the rising number of export contracts.

"When the factory was prepared to begin operating the first 16 production lines the firm had already signed export deals for the whole year with three partners, generating 1,800 jobs," Luan said. — VNS

Export solutions for 2010

VOV News
3:06 PM, 01/02/2010



Next year will see more barriers and new regulations from the market while the world economy is expected to regain its momentum for growth. What should Vietnamese businesses do to corner the market and boost exports in 2010?
In 2009, Vietnam’s export turnover is likely to drop by 10 percent over 2008 and the country is facing a trade deficit due to the impact of the global economic downturn.

Ass.Prof and Dr. Nguyen Tat Thang, a senior researcher from the Ministry of Industry and Trade has talked to the media on the issue.

Reporter: In the recent past, Vietnam’s falling export turnover has been attributed to a reduction in the price of export items. What should Vietnamese businesses do to increase export turnover?

Mr Thang: Vietnamese businesses need to explore all options to expand the existing markets and seek new markets without depending too much on traditional partners such as the US, the EU and Japan. Vietnamese businesses should pay attention to rapidly recovering markets in the Middle East, Oceania and Asia.

It is predicted that despite facing some ups and downs, the world economy will spurt back to life if businesses focus on exploring traditional markets

Rubber promises to be a lucrative export item next year as currently nearly 80 percent of natural rubber is used for the automobile industry, which is forecast to flourish in 2010. Rice exports will also be a bright spot next year but the crux of the matter is how to be flexible in bidding activities so that rice can be sold at the best price.

Reporter: What should be done to help Vietnamese businesses sharpen the competitive edge?

Mr Thang: It is imperative to prevent some businesses from unhealthy competition and lowering selling prices to make a quick buck. In addition, there will be stricter market regulations next year. In the garment and textile sector, the quality of products designed by businesses will be measured by their popularity among consumers. In fact, when it comes to importers that require specific type of designs, businesses often fail to meet their demands. In order to solve this problem, major businesses must play a key role in designing products and sharing orders for manufactured goods with small businesses.

The Ministry of Industry and Trade and the Ministry of Agriculture and Rural Development have informed businesses of the EU’s regulations on illegal, unreported and unregulated (IUU) fishing. Management agencies will have to strictly monitor the origin of products, enabling the seafood sector to secure its foothold in the EU market and increase its output.

Reporter: What has the Ministry of Industry and Trade done to support exporters in overcoming such barriers?

Mr Thang: In recent times, different ministries and sectors have conducted negotiations with other countries on the mutual recognition of quarantine regulations.

They have also provided businesses with information on barriers in different markets. Craft associations are trying their best to address issues related to capital provision for exporters. In addition, the State will help businesses carry out new projects by supporting them in applying new technologies and building their trademarks. Sectors and associations need to work more closely to create the best possible conditions for businesses to further develop while people should set up closer relations with them to tap the community’s strengths.

Reporter: How to ensure sufficient supply of materials for domestic production has been brought up for discussion but no progress has been made so far. Why so?

Mr Thang: Recently, more attention has been paid to developing the supporting industry to serve exports. However, the result is far from expected due to the different levels of technology and different standards of input-materials. Yet, the Ministry of Industry and Trade has asked businesses to produce new materials to reduce their dependence on the foreign market and raise the competitiveness of Vietnamese products.

Reporter: The recovery of the world economy in 2010 will be a good opportunity for exporters to maintain previous orders and place new ones. What is your assessment of the export market next year?

Mr Thang: According to economic experts, the export market will see positive signs next year as the traditional markets such as the US, the EU, Japan and Russia will also bounce back. Aside from this, China has decided to reduce tax rates on products imported from ASEAN nations, therefore, making a stronger market for Vietnam.

Meanwhile, Thai investors will reduce their investment in Laos and Cambodia thus creating opportunities for Vietnamese products to enter these markets. Currently, regional countries are taking full advantage of the ASEAN Free Trade Agreement (AFTA) on the reduction of tax rates on some items to help businesses achieve greater penetration of regional markets. Therefore, Vietnamese businesses should be more active in expanding regional markets thanks to preferential duties.

Reporter: Thank you so much.

Power supplies a common interest

VietName Net Bridge
26/12/2009


VietNamNet Bridge - Power generation is set to be a main plank for future Vietnam and Cambodia bilateral cooperation.

Under the cooperation agreements signed between the two countries on the occasion of Vietnamese Party General Secretary Nong Duc Manh’s visit to Cambodia last week, Vietnam committed to continue giving its support to Cambodia in power generation, and exploration and exploitation of natural resources, particularly focusing on power supplies and bauxite exploitation.

In May 2009, the state-run Electricity of Vietnam (EVN) signed a contract with Electricite Du Cambodge (EDC) to provide between 900 million and 1.4 billion kilowatt hours of power each year from 2010 to help ease Cambodia’s power shortages.

Strengthening ties in marine transportation, trade and investment are also areas to be focused on. Vietnam and Cambodia have targeted to bring two-way trade revenue to $2 billion in 2010 from more than $1 billion this year.

According Vietnam’s Ministry of Industry and Trade (MoIT), Cambodia is seen as having a large market for Vietnamese firms to accelerate exports, particularly garment and textiles, processed food, plastic products, fertiliser, home electrical appliances and mechanical products.

Last week, the MoIT and 12 Vietnamese enterprises participated in the Cambodian import-export goods fair opened on December 15 in Phnom Penh.

The MoIT and Ho Chi Minh City, Dong Nai and Binh Duong province authorities prepared for a trade conference between Vietnam and Cambodia scheduled to be held in Phnom Penh in December.

“Cambodia is considered a priority for Vietnam to accelerate bilateral trade and we will make an overall plan for trade promotion with the country in the time to come,” said Dao Tran Nhan, general director of the MoIT’s Department for Asia-Pacific Market.

According to MoIT data, Vietnam exported $910.5 million worth of goods to Cambodia in the first 10 months of this year and imported $136.1 million worth of Cambodian products.

As of September 2009, Vietnamese businesses had invested about $650 million in Cambodia, including $400 million committed in August, 2009 alone for production of fertiliser, rice, sugar, ethanol, thermal power and construction stone.

Vietnam’s Vietel is the largest telecommunication service provider in Cambodia that accounts for a 60 per cent market share for ADSL services and a 50 per cent market share for fixed telephones. Vietnam’s other large-scale investment projects include Vietnam Rubber Group’s 100,000 hectare rubber tree plantation and the construction of the Se San hydro power plants by EVN.

This is the second official visit made by Party General Secretary Manh to Cambodia since March, 2005.

VietNamNet/VIR

Clothing sector targets $10 bn exports in 2010

Fibre 2 Fashion
December 25, 2009 (Vietnam)


Textile and garment sector of Vietnam has targeted to generate over US $10 billion through its exports in 2010, around 12 percent more than that of current year, said Mr. Le Quoc An, Chairman of the Vietnam Garment and Textile Group (Vinatex).

The industry entrepreneurs are optimistic about achieving this target as it has witnessed demand surge from two of its major markets, US and EU. Almost every enterprise in the clothing sector has signed orders for upcoming two quarters of next year.

Export turnover of the industry has reached to $9.1 billion, which is almost equivalent to that of previous year, said Mr. An.


Fibre2fashion News Desk - India

Vietnamese garment and textile industry grows despite global crisis

Dec 23, 2009,
Monsters and Critics


Hanoi - Vietnam's garment and textile industry kept growing despite the global crisis, an official said Wednesday.

'We will certainly meet the annual target by the end of this year because companies are exporting big orders this month,' Le Quoc An, chairman of the Vietnam Textile and Apparel Association, said. 'We expect to grow at least 1 per cent compared with last year.'

An said the country planned to earn 9.1 billion dollars from garment and textile exports this year.

The state-run An Ninh Thu Do newspaper said the country's garment exporters faced declining markets and a slump in prices, resulting in a sharp decline in earnings in the early months of the year. Vietnam's garment industry earned 8.2 billion dollars in the first eleven months of 2009.

'Export growth will recover sharply next year so we plan to export [goods worth] about 10.5 billion dollars next year, a 12-per-cent increase compared with this year,' An said.

The biggest importers of Vietnamese garments and textiles are the United States (57 per cent), followed by the European Union (18 per cent) and Japan (9 per cent).