Major realty firms to be inspected

HANOI - The Ministry of Construction is going to inspect a dozen real estate companies, including major ones, a source told the Daily.

Through the periodical checks, inspectors of the ministry will clarify some issues concerning the operations of realty firms, such as their observance of law and policies on planning, quality management and real estate business in 2011-2016.

Reportedly, among the 12 property firms to be examined are those of significant scale such as Vingroup, Sun Group, FLC, Hoa Binh Group, Novaland, Muong Thanh Group, Tan Hoang Minh Group, Bitexco Group, Empire Group, Dai Quang Minh, Phu My Hung Corporation and Nam Thang Long (Cipurtra). Each of these enterprises will undergo a month-long inspection.

In particular, the ministry will look into projects of Muong Thanh Group in Hanoi and Khanh Hoa Province, Bitexco’s projects in HCMC, Cocobay Danang project of Empire, and Dai Quang Minh’s construction of four main roads in Thu Thiem New Urban Area in HCMC.

Such inspection is a regular activity of the Ministry of Construction. Nevertheless, this inspection plan has stoked public curiosity and attention since some real estate projects have recently stirred up public concerns. Particularly, Muong Thanh Group has just been examined, with a number of irregularities detected such as violating height limits.

Speaking at a review conference for 2016 last Friday, Deputy Minister of Construction Le Quang Hung said the Government had assigned his agency to review urban planning. The ministry has already ordered inspections into controversial projects in Hanoi this week.

Source The Saigon Times

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Foreign firms expand presence in retail market

HANOI – Foreign companies are establishing a stronger presence on the fast growing Vietnamese retail market, according to a report which the Ministry of Industry and Trade released last Friday.

Foreign direct investment enterprises now hold a 17% retail market share in the segment of shopping centers and supermarkets, 70% in convenience stores, 15% in minimarts, and around 50% in online, TV and phone shopping, said the report.

These percentages are not too high but the rising presence of foreign investors in the retail market can be seen in major cities. For instance, Thailand’s Central Group has taken over the entire stake of France’s Casino Group in Big C Vietnam, and another Thai conglomerate, TCC Holding, has acquired Metro Cash and Carry Vietnam.

Other foreign business groups such as South Korea’s Lotte and Japan’s Aeon have been steadily expanding, with plans to double or triple their stores in Vietnam in the coming years.

The swift expansion of foreign firms has piled pressure on local retailers. Domestic goods suppliers have also felt the pinch as foreign retailers are developing their own goods brands for sale at their stores.

According to the Ministry of Industry and Trade, total retail sales of goods and services last year rose 10.2% year-on-year to VND3,530 trillion (US$156.7 billion).

Business-to-customer (B2C) transactions were estimated to double from the US$2.2 billion recorded in 2013.

Source The Saigon Times

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Workshop discusses renewable energy development

HCMC – Experiences from developed countries have shown that renewable energy cannot be developed without a competitive electricity market in place, heard a workshop in Hanoi on Monday.

Experts attended a workshop to make policy recommendations for boosting the development of renewable energy in a competitive power market, the Vietnam News Agency reports.

Building a competitive power market is an important element of institutional reform, Nguyen Dinh Cung, head of the Central Institute for Economic Management (CIEM), told the event held by CIEM.

Pham Duc Trung, deputy head of CIEM’s Committee for Enterprise Reform and Development, said producers of renewable energy should be entitled to preferential treatment in terms of tax, land use fee and access to credit.

The domestic power market has not been made competitive while there are no independent agencies monitoring and regulating the market, making it unattractive to investors, he said.

To spur competitiveness, Trung stressed the need to reform State utility Vietnam Electricity Group (EVN) and guarantee a level playing field for electricity producers and distributors.

He suggested making the Electricity Regulatory Authority of Vietnam more independent, strengthening the capacity of the Vietnam Competition Authority at the Ministry of Industry and Trade, and applying a competitive pricing mechanism.

Nguyen Van Vy, vice chairman of the Vietnam Energy Association (VEA), said the Government should adopt incentive investment policy for projects generating and using renewable energy, and give financial assistance to renewable energy research projects.

Source:The Saigon Times Daily

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Contract Dispute in Vietnam

Disputes in contract performance and solutions

Disputes occur during contract performance are beyond the control of the entity entering contractual relations. In developed countries, lawyers always invited to advise customers to identify potential disputes, and provide solutions, support and provide legal advice and to accompany the enterprises solve disputes in accordance with the provisions of the law, which help businesses to focus on its business activities. Foreign companies when entering Vietnam mostly follow suit to engage dispute or litigation lawyers in Vietnam at early stage of the transactions.

Contract Dispute

Contractual disputes in Vietnam shall be construed as conflicts, disagreements, conflicts between the parties regarding the implementation or non-implementation of rights and obligations in the contract.Disputes could arise in failure to collect the payment from debtor in sales agreement, construction contract disputes between investor and contractor, labour dispute between employer and employee, insurance disputes between ship owner and insurance company.

Contract disputes must satisfy the following factors:

First, there is a contract between the parties. The contract would be in different for ms therefore, there is a need to clearly define if the contractual relationship has been formed or not.

Second, there is a breach of obligations or duties that are in violation of a party in the contractual relationship.

Third, there is disagreement between the parties about the handling of infringement or the consequences of such violations.

It should be noted, the contract disputes arise from the breach. However, not all breaches of contract also lead to disputes.

How to settle the contract disputes in Vietnam

Contractual disputes can be resolved by the following methods:

• Negotiation is the process or behavior in which the two sides conduct exchanges, agreement on common interests and characteristics of disagreement and come to a unified agreement. The negotiation is without the presence of third parties. However, if the lawyers in Vietnam would be involved during the negotiation process, at the role of representing or advising, counseling, then the negotiations tend to be more effective and parties would reach agreement.
• Mediation is one of the options for disputing parties to end the conflict. Mediation is different from negotiating with the intervention of a third party. Mediator will help parties to achieve agreement and resolve conflict.
• Court or arbitration: The settlement of the dispute in court would take time. The court’s ruling can be appealed. It should be noted that, per Vietnam laws, only Vietnam litigation or dispute law firms could represent the client at court. Commercial arbitration is available only in commercial-business sector. The advantage of this method is fast and efficient. However, compare with disputing at court, this method of handling dispute would take higher costs.

Disputes and dispute resolution matters are natural and inevitablein any countries including Vietnam. It is important that parties involved need to identify, anticipate disputes can occur. When there is a dispute, the dispute lawyers will be able to help parties to with advice to reasonable solution to address the disputes effectively.

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Thailand issued the final determination in the antidumping investigation against imports of Certain stainless pipe and tube from certain countries including Vietnam

On 26 September 2016, Vietnam Competition Authority received the information from Vietnam Trade Office in Thailand that the Department of Foreign Trade (DFT) under Ministry of Commerce of Thailand published the final determination of the antidumping investigation against imports of Certain stainless pipe and tube from Korea, China, Taiwan and Vietnam

-  Date of initiation: 17 September 2015

- Subject product: stainless pipe and tube under HS: 7305.31.10.000; 7306.11.10.000; 7306.11.90.000; 7306.21.00.000; 7306.40.10.010; 7306.40.10.020; 7306.40.20.010; 7306.40.20.020; 7306.40.30.010; 7306.40.30.020; 7306.40.90.010; 7306.40.90.020; 7306.61.00.021 and 7306.61.00.022

In the final determination, the antidumping margin applicable to exporters of Vietnam is 310.74%.

Earlier, on 7 July 2016, DFT issued notice of essential facts and announced about holding a public hearing for the case.

Source Vietnam Competition Authority

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For Vietnam legal matters or services, the clients could reach ANT Lawyers, the exclusive Vietnam law firm members via email at ant@antlawyers.vn or call the telephone at +848 35202779.

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Australia Antidumping Commission (Department of Industry, Innovation and Science) initiation of an Investigation into Alleged Dumping and subsidisation on Zinc Coated (Galvanised) Steel Exported from the Republic of India, Malaysia and Vietnam

On October 7, according to the information received by Vietnam Competition Authority from Vietnam Trade Office in Sydney, Australia Anti-dumping Commission (Department of Industry, Innovation and Science) initiation of an Investigation into Alleged Dumping and subsidisation on Zinc Coated (Galvanised) Steel Exported from the Republic of India, Malaysia and Vietnam (Malaysia is subject to the anti-dumping investigation only).

Earlier, on 22 August 2016, an application was lodged by BlueScope Steel Ltd, a manufacturer of zinc coated (galvanised) steel (the goods) in Australia. The application seeks the publication of a dumping duty and a countervailing duty notice in respect of the goods exported to Australia from India, Malaysia and Vietnam.

Background:

1. Petitioner: BlueScope Steel Ltd.

2. Subject product:

- Zinc coated/ galvanized steel

- HS: 7210.49.00, 7212.30.00, 7225.92.00 and 7226.99.00.

3. Period of investigation of dumping and subsidisation: 01/7/2015 – 30/06/2016

4. Period of investigation of injury: từ 01/7/2012

5. Alleged dumping margin: 27,2%

6. Estimated subsidy margin: Above negligible level

7. Investigated subsidy programs: preferential import tariff rates, support for projects manufacturing priority industrial products; incentives contingent upon export performance; incentives for domestic businesses; incentives for foreign invested enterprises; export promotion; trade promotion; preferential credit; assistance for commercial development in mountainous, island and ethnic minority areas;assistance to enterprises facing difficulties due to objective reasons; incentives for investment projects in science and technology; incentives on corporate income tax; incentives on non-agricultural land.

8. Injury: The application alleges that the goods have been exported to Australia at prices less than their normal value and were in receipt of countervailable subsidies and that the dumping and subsidisation has caused material injury to the Australian industry through: price suppression, reduced sales revenue, reduced profit and profitability, reduced employment,  reduced return on investment

This is the 7th dual anti-dumping and anti-subsidy cases against exports of Vietnam in recent years since 2009, and the 2nd dual anti-dumping and anti-subsidy investigations by Australia against exports of Vietnam

Source Vietnam Competition Authority

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