Different registration fees applied on same pick-up auto line

Cities and provinces in Vietnam have imposed different registration fees for the same models of pick-up vehicles due to a disagreement over their use, according to the Vietnam Automobile Manufacturers' Association (VAMA). Different registration fees applied on same pick-up auto line Some localities consider vehicles including the Ford Ranger, Mitsubishi Triton and Toyota Hilux as passenger cars, while others classify them as commercial vehicles. Hanoi imposes registration fees of 2% for these models, while the rate ranges between 10% and 20% in HCM City and other provinces. For example, in Binh Duong Province it's 10%, Son La Province 12% and Danang City 15%. The fee can even vary in the same province or city. In Binh Duong Province, the fee is 2% in Bien Hoa City, while it is 10% in Nhon Trach District, VAMA said. On March 5 this year, the General Department of Taxation issued a circular on registration fees for pick-up cars, saying that a fee of 10-20% will be valid for pick-up autos and vans used to transport passengers which have from 4-10 seats. Manufacturers such as Toyota and Mitsubishi have asked the Ministry of Finance to apply a 2% fee for these models. According to VAMA, the Vietnam Register recognises these models as commercial vehicles on their import certificates. Therefore, it is violation of the ministry's regulations for cities and province to impose fees of 10-20% that are usually applied to passenger vehicles. This is not only affecting customers' rights, but also causing difficulties for auto businesses. The Saigon Times said that VAMA has sent documents to tax departments, the General Department of Taxation and the Ministry of Finance to explain the problem and clarify that the cars should be classed as commercial vehicles. VAMA has persuaded tax agencies in some localities, including Hanoi, Haiphong, Quang Ninh, Danang and Di An Town in Binh Duong to apply fees of 2% for these cars. However, many cities and provinces nationwide have maintained levels of 10-20%. The association is waiting for a specific instruction from the General Department of Taxation for local tax agencies to ensure the correct registration fee rate of 2% Tourist Vietnam
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Vietnam affirms sovereignty over Truong Sa, Hoang Sa

A representative from the Foreign Ministry's National Border Committee has said Vietnam has sufficient legal and historical evidence to affirm its sovereignty over Truong Sa (Spratly) and Hoang Sa (Paracel) archipelagos. The statement was given on July 18 in the context that on July 15, Taiwan's Liberty Times website reported that Taiwan is considering extending a runway an additional 500m on Ba Binh island in Vietnam's Truong Sa archipelago. The same day, the Taiwan Central News Agency (CNA) reported that Taiwan sent a delegation of young scholars of Cheng Gong University to visit the island. "Activities of parties in Truong Sa archipelago without Vietnam's permission violate Vietnam's sovereignty and international laws, especially the 1982 UN Convention on the Law of the Sea, go against the spirit of the Declaration on the Conduct of Parties in the East Sea (DOC) and cause tension in the East Sea," the representative stressed. The representative also asked Taiwan to stop similar activities and plans. Earlier, in an article dated July 11 on the Feng Huang website (Hong Kong), member of Taiwan Kuomingtang Party Central Committee Qiu Yi said the waters around Tai Ping island (which is called Ba Binh by Vietnam ) belong to Taiwan. Responding to reporters' queries, the Foreign Ministry's National Border Committee representative rejected the "wrong statement". Tourist Vietnam
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Annan delays UN Council vote on Syria sanctions

International envoy Kofi Annan on Wednesday pleaded with the UN Security Council to take "decisive" action on the Syria conflict after persuading the divided major powers to postpone a vote on a sanctions resolution. International envoy Kofi Annan on Wednesday pleaded with the UN Security Council to take "decisive" action on the Syria conflict after persuading the divided major powers to postpone a vote on a sanctions resolution. Annan intervened a few hours before the scheduled vote on the western-backed resolution which Russia has vowed to veto. But with no new diplomatic proposals emerging, a new vote was called for Thursday. The UN-Arab League envoy spoke to key governments and "urged members of the Security Council to unite and take concerted and strong action that would help stem the bloodshed in Syria and build momentum for a political transition," said Annan's spokesman Ahmad Fawzi. Annan believes the latest violence "only underscores the urgency of decisive council action." A Damascus bomb attack on Wednesday killed at least three members of President Bashar al-Assad's inner circle. The appeal by Annan and the Damascus attack however did little to ease tensions on the 15-member Security Council. Russia maintained a threat to veto any resolution under Chapter VII of the UN Charter, which allows for the toughest action. Russia's President Vladimir Putin and US President Barack Obama spoke by telephone but a Kremlin spokesman Dmitry Peskov told Russian news agencies that "differences in approaches remain" over the Syria conflict. While acknowledging the differences, the White House said the two leaders had agreed to "continue to work towards a solution." The British resolution, backed by the United States, France, Germany and Portugal, calls for non-military sanctions to be ordered against Assad if he does not withdraw heavy weapons from Syrian cities. "We will be voting tomorrow morning," said Britain's UN Ambassador Mark Lyall Grant. The western envoys said they had agreed to Annan's request for a delay but there had been no new talks as Russia had made no new proposal. "We cannot accept Chapter VII and the section about sanctions," Russia's Foreign Minister Sergei Lavrov said in Moscow on Wednesday. Russia and China, using their powers as permanent council members, have twice vetoed previous resolutions hinting at sanctions against Damascus. "We have very clearly said to our Russian and Chinese friends, we are ready to negotiate," said France's UN Ambassador Gerard Araud. "The framework is well-defined. It is a Chapter VII resolution with a threat of sanctions. We consider the situation is serious enough in Damascus and in Syria that we move towards this goal," he told reporters. "We want to give diplomacy a chance but there has to be meaningful engagement on the side of Russia and China with our resolution," Germany's UN envoy Peter Wittig told reporters. "We just don't want business as usual. We want a strong signal with that resolution and the events in Damascus today of course dramatically highlight the need for the council to act at long last," Wittig added. "Syria is sliding into chaos," said the German envoy. The mandate of the UN Supervision Mission in Syria (UNSMIS) ends on Friday and without a resolution, the UN may have to hurriedly withdraw the nearly 300 unarmed observers now in Damascus. More than 17,000 people have been killed since an uprising against Assad began 16 months ago, activists say. Tourist Vietnam
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Artists swim in the pools of TV game shows

Vietnamese artists are becoming busier than ever thanks to a boom in TV films, game shows and reality shows. Minh Hang became more famous after taking part in Dancing with the Stars Comedian Hoang Map said that he was taking part in several reality and game shows, a TV film project and numerous other shows. "There are months when I take part in so many shows that I rarely see my family," Hoang said. Thuy Diem used to be a model, but now she just appears in TV films. She said, "Most of my time is spent in film studios. I don't even have enough time to spend the money I earn." Young artists now seem to believe that if they feature in as many films, game shows, and reality shows as possible, then they will become more and more famous. Film and TV game show producers often invite young models, singers, and actors to join in their shows to attract more TV viewers. These young artists want to become household names, so they accept the invitations. That's the vicious circle both producers and young artists are running in. Consequently, many young artists become well-known not because of their voice or their roles in a film, but due to the fact that they appear on TV so often, and audiences become familiar with their faces. Due to their busy timetables, they are unable to put enough time into studying their characters, and may work on several different films in the same day. As a result, their work is below par and domestic viewers are losing faith in the Vietnamese film industry. One director said, "The salaries for actors and actresses aren't very high, so we have to accept that they will work on other film projects and TV shows at the same time. We just hope that they read the scripts before they start." An actor's career should be remembered by the characters they play, which can be timeless. If artists run after illusive fame by featuring in many TV shows and film projects, they can earn a lot of money, but never the respect of audiences. Tourist Vietnam
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Hanoi proposes removal of apartment service price cap

The Hanoi People's Committee has asked the Ministry of Construction to issue a price list for apartment service fees to replace the existing regulation on the service price cap. Hanoi proposes removal of apartment service price cap According to the committee, the price list will be a base for apartment investors, managers and people to discuss and decide the application of their own apartment service prices. In September 2011, the municipal People's Committee approved the regulation for apartment service fees. The lowest of VND2,400 (USD0.11) per square metre per month is applied for apartments without elevators, and those with elevators can have the fees ranging from VND3,100 to VND4,000 per square metre. However, due to the diversification of the apartment segment and characteristics of each development, the ceiling price regulation is unrealistic. Besides, taking advantage of the regulation, many apartment managers try to misinterpret it on purpose to impose the highest fees for households. This has been the main cause of disputes in apartment use in the city recently. Last year, hundreds of residents at Hanoi Keangnam Landmark Tower, Vietnam's highest building, demonstrated against new service fees imposed by the management board, which they refused to pay, and were subsequently banned from using the lifts. The development's management board has enforced a service fee of VND18,843 per square metre per month, but the residents claim they were only required to pay VND4,000 per square metre, according to regulations set by the city's People's Committee. Service fee-related disputes have also occurred at other buildings in Hanoi such as The Manor, Golden Westlake, and Sky City. Tourist Vietnam
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State-owned groups trim staff salaries

Many state-owned corporations and groups have cut their staff salaries by 5-30% to meet their commitments to the Ministry of Finance and save operational costs this year. Representatives from Electricity of Vietnam (EVN) and the Vietnam National Coal and Mineral Industries Group (Vinacomin) reported they had been slashing salaries over the past few months. Many state-owned corporations and groups have cut their staff salaries by 5-30% Staff at a number of EVN affiliates have had their salaries cut by over 10%, and those at Northern Power Corporation have had to suffer a 30% wage cut. An official from the Hanoi Power Corporation said their staff's salaries were safe for the time being, but an allowance for some positions had been adjusted. The situation at EVN has partially been caused by affiliate EVN Telecom, that has failed to attract subscribers after starting operations more than seven years ago. EVN Telecom is now in debt to many of its partners, including Viettel and the Vietnam Post and Telecommunications Group (VNPT). "My salary was over VND8 million (USD380.9) per month, but now it has been cut to less than VND6 million (USD285.7). My wife and I have a combined salary of only VND10 million (USD476), so we're struggling with day to day expenses," said an EVN staff member. An EVN official said that the group targets to save VND1.8 trillion (USD85.7 million) in its business and production costs this year, including VND160 billion (USD7.6 million) in salary cuts. The firm targets to save 1% of electricity used for people's daily activities, equal to VND1.3 trillion (USD61.9 million). He, however, declined to comment on the pay cuts. At the Vietnam Oil and Gas Group (PetroVietnam) where the staff salaries are much higher than many other firms, cuts have also been made over the past few months. PetroVietnam Chairman Phung Dinh Thuc confirmed the salary reduction of 5-10% to save costs. However, to retain senior staff, PetroVietnam are still rewarding those it deems to be deserving. Leaders should cut their own salay Economist Pham Chi Lan said it is wrong for the companies to cut staff salaries to save costs. Meanwhile, a Government instruction also clearly stipulates that they are not allowed to do so. "In Vietnam, managers always receive the highest bonuses, but when firms face problems, their salaries aren't cut," she noted. Saving costs is mainly aimed at improving management systems to mitigate waste. The wage cut seems to be widespread, while companies ignore other factors that can also be attributed to high operational costs. She emphasised that corporations and groups needed to calculate what percentage of their operational costs could be attributed to salaries and productivity. She cited several experts as saying that for the same electricity output, Vietnam has to use more labourers than other countries, which shows the country's human resource waste, one cause of EVN's high operational costs. Salary cuts are necessary, but they should start with the management. "The Ministry of Finance has to tighten control of salary cuts to ensure efficiency," Lan said. According to the Ministry of Finance, early May this year, up to 83 groups and corporations and four banks had committed to save total VND13 trillion (USD619 million). Tourist Vietnam
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Building slump bad news for construction materials companies

Due to a slump in real estate market, the construction materials companies have been holding onto very large inventories. Construction materials companies have been holding onto very large inventories Thach Ban JSC, one of the companies that has historically been profitable, is considering cutting back on production. Deputy Director of Thach Ban JSC, Nguyen Trong Kien, said they currently have two months of inventory, demand has decreased by 30% compared to last year, while the input materials prices have increased. The company increased their prices by 4% in April but they had to lower them by 8% in June due to the slump. "We have no choice but to accept the losses. We expect some of the factories will lose as much as VND10 billion (USD478,000)," Kien said. To ensure the company's continued operation, they have been making cutbacks and focusing on advertising. "Even the CEOs, directors are taking part in marketing activities to better understand customers." Viglacera Ha Long has also seen its share of difficulties. In 2011, the company made VND70 billion (USD3.4 million), but in early 2012 they lost VND84 billion (USD4 million). Nguyen Van Sinh, Deputy Director of Viglacera, said they are only at 65% of production capacity but inventory is still high, with six months of inventory for glass and two months of tile. The steel industry also felt the impact. The Pomina Company has 40,000 tonnes of inventory. Do Duy Thai, a representative of Pomina, said the consumption decreased by 20% compared to the same period in 2011. And even with lower interest rates, only some big corporations are able to get loans and others only loans with high interest. According to Vietnam Steel Association, a 20% reduction in inventory is needed to get back to normal levels. The cement industry also has three million tonnes of inventory. Dinh Quang Huy, Chairman of Vietnam Building Ceramic Association, said that enterprises have only been able to sell 70-75% of their products. "The real estate market is in a slump and capital is hard to come by. The construction materials sector is also suffering," he said. Le Van Toi, head of Department of Construction Materials under the Ministry of Construction, said the main reason for the problem is companies' inability to balance their books. Most of their capital comes from loans, so when inflation rises and exchange rates go down these companies take a big hit, he said. Nguyen Tuan Duong, Vice Chairman of Hoa Phat Corporation, said in order to deal with the current situation the company will operate at 70% of its capacity in hopes of lowering inventory in the next 3-6 months. "This year prices will likely either stay where they are or rise slightly, but demand is not expected to increase," Aside from reducing their production, Viet Duc Steel Company will ask customers for immediate payment, or extend credit for only short periods. They are also seeking to expand exports. Tourist Vietnam
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