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ASEAN Telecommunication 2020/07/08 (Vol.631)

ASEAN Telecommunication Japan-Southeast Asia Economic Exchange Magazine
2020/07/08(Vol.631)

 

<Hot news>

➤Vietnam:Resolutions on highway projects, corporate income tax cut approved

➤Myanmar:Vietnam to deepen ties with Myanmar

➤Cambodia:New Siem Reap airport 30% complete despite pandemic


Vietnam:Resolutions on highway projects, corporate income tax cut approved


Under another resolution passed by the deputies on Friday, local firms with total 2020 revenue of maximum VNĐ200 billion will enjoy a 30 per cent cut in corporate income tax.

Most of those firms operate in the fields of agriculture, forestry, aquaculture, industrials, construction and services.

Subject to the decision are companies, co-operatives, public non-business agencies and other organisations, which produce and trade goods and services.

The decision will take place in 45 days from the signing date.

The resolution would benefit small and medium enterprises (SMEs) that are impacted by the COVID-19 pandemic and are likely to suffer a prolonged downtrend in business performance, NA’s finance and budget committee chairman Nguyễn Đức Hải said.

“Those companies often lack capital accessibility and technological background, and have low earnings, tepid market shares and small staff,” he said.

If all four proposed criteria regarding the number of employees, earnings, capital and sector are applied to address the beneficiaries, it would take a long time for the firms to enjoy the tax exemption, he added.

In addition, if only firms reporting annual earnings declines are subject to the policy, it would be unfair for those that have started operating since the beginning of the year, Hải said.

“The tax exemption is forecast to raise the State budget loss in 2020 to VNĐ23 trillion from the expected VNĐ15.84 trillion,” the chairman said.

“If the Vietnamese economy is still struggling at year-end and early next year, the NA Standing Committee will propose deputies extend the validity of the resolution,” he added.



Myanmar:Vietnam to deepen ties with Myanmar

A recent Vietnamese delegation to Nay Pyi Taw led by the country's Deputy Prime Minister Mr. Vuong Dinh Hue is hoping to boost investment and trade ties with Myanmar.

The delegation, which was in the Union capital on June 16 and June 17 to promote economic cooperation between the two countries, was met by Vice President U MyintSwe, Union ministers as well as the Central Bank of Myanmar Govenor and Vice Governor.

Vuong hopes to implement more investment and trade activities in Myanmar through the Bank for Investment and Development of Vietnam(BIDV), which opened a branch in the country in March 2016 with a charter capital of US$85 million. Prior to the branch opening, BIDV had a representative office, which opened in April 2010.

BIDV, which has partnerships with CB Bank, Ayeyarwady Bank and KBZ Bank, mainly provides service to Vietnamese investors but has also given out loans to local small and medium enterprises (SMEs). As at May 31,2019, BIDV has total assets in Myanmar of US$130 million with mobilized capital of US$46.5 million and loans valued at US$20 million. Compared to 2018, corporate customers have increased by 27pc.

BIDV chair My. Phan Duc Tu said there should be longer-term economic ties between the two countries and that the bank will continue to receive the support of the Vietnamese government for these ties.

BIDV Deputy Chief Executive Officer Daw Khin khin Cho said the bank has become profitable, although the profit, from january to June of this year, was near 1 million US$.

"The bank's profits are minimal but we are starting to see it," she said, adding that the bank was planning to give out loans to local corporations but will study the risks first since Myanmar does not have a rating for companies' risk profile.

She added that the bank, in partnership with local banks, have extended loans to local SMEs and have been supporting 30 SMEs with their trading and remittance needs.

Total trade with Vietnam in 2018 was valued at US$860 million, with Vietnam having a trade surplus of US$544 million. The country ranked seventh out of 49 as an investor in Myanmar, with US$2.2 billion and over 200 Vietnamese companies with Myanmar-related business.



Cambodia:New Siem Reap airport 30% complete despite pandemic


Construction on the new $880 million Siem Reap-Angkor International Airport (AIA) is nearly 30 per cent on schedule and on track to be finished in March 2023, the developer said.

Sin Chansereyvutha, a spokesman for the State Secretariat for Civil Aviation (SSCA) told The Post on Sunday that after an onsite visit by SSCA secretary of state Mao Havannall on June 15, the first phase was deemed 25 per cent complete.

Construction of the foundation for the passenger terminal is 98 per cent complete and the 3.3km runway is almost finished.

“Although the developer has faced some challenges because of Covid-19, they remain committed to the progress,” he said.

Sin said the pandemic interrupted work in April as some experts could not travel from China to Cambodia. However, the company has implemented night shifts to meet the schedule.

“According to plan, [the airport] will be completed in March 2023,” he said.

The new airport is being built on a 750ha property in Sotr Nikom district on the outskirts of Siem Reap City and will be built in three phases.

The company will invest $500 million for the first and second phases, which will allow medium-sized passenger aircraft like the Boeing 737 and Airbus A320 to land. Another $300 million will be allocated for the third phase.

The agreement to build the airport was signed between the Cambodian government and China’s state-run Yunnan Investment Holdings Ltd in 2017.

It gives the Chinese firm exclusive rights to run and manage the airport concession for 55 years under a build-operate-transfer (BOT) scheme.

Mao handed over the master plan to Lu Wei, Chairman of the board of AIA, on Friday.

Lu said with the support of SSCA, the construction project will be fully completed on March 14, 2023. The company is now working closely with the technical team of the SSCA to focus on the installation of the technical facilities and the design of the airport.

Sin said the airport can handle seven million passengers in the first phase of development – 3.3km of runway, 10 million passengers by 2030 with runway capacity of 3.6km and 20 million by 2050 with runway capacity of 4km.

 

発行元:Green Sun Japan Corporation

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Green Sun Viet Nam Corporation

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Tel:+84-28-3526-0250


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