TRADEWINDS
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VIETNAM
Vietnam Cuts Tax on Imported Cars |
The Vietnamese Ministry of Finance lowered taxes on imported automobiles, the second reduction this year. The tariffs on brand-new automobiles were reduced to 70 per cent from 80 per cent, effective from August 8, 2007. Passenger cars with less than eight seats, cars with more than 10 seats, diesel cars and cars with internal combustion engines from less than 1,800 cc to over 4,000 cc, golf cars and other vehicles are subject to the tax cut.
The Ministry also decreased 5 per cent of import duties on used cars. The import tariff on this kind of vehicles is absolute tax, a fixed amount of tax for vehicles of the same category, regardless of origin and price. The existing absolute tax ranges between US$3,000 and US$26,000 a unit. The tax cut is expected to drive down the prices. In early 2007, Vietnam had reduced taxes on foreign cars to 80 per cent from 90 per cent. According to the General Statistics Office (GSO), Vietnam imported US$193 million worth of automobiles in the first seven months this year, up 55 per cent and 33.9 per cent on year.
Animal Feed Import rises by 59 per cent in 8 Months
Vietnamese enterprises were estimated to import US$120 million worth of animal feed and feed materials in August alone, raising their total import in eight months of 2007 to US$783 million, up 58.6 percent on year, according to the General Statistics Office. In Jan-Jul period, the enterprises imported US$663 million worth of the products from 30 countries and territories worldwide, a year-on-year rise of 76.3 per cent from that of 2006. Among them, India remained it as the biggest exporters of animal feed to Vietnam, selling US$266.4 million, followed by Argentina with US$108.2 million. Thailand and China were the third and fourth biggest suppliers, exporting $37.8 million and $37.6 million animal feed to Vietnam in the first seven months of 2007, respectively. Local animal feed producers raised product’s price eight times due to increasing price of imported animal feed in Jan-Jul period. The price of animal feed increased by VND15,000-20,000 to surpass VND200,000 per 25kilo bag on average late Jul while price of aquatic animal feed staying at high level at VND150,000-180,000 per bag. According to the Animal Husbandry Department, local sources of materials can satisfy 70 per cent of the demand.
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UNITED ARAB EMIRATES
UAE bans animal products from UK |
UAE imposed a temporary ban on import of all live cloven-hoofed animals and their products from the UK on August 6 following appearance of cases of the foot and mouth disease (FMD). The resolution was taken according to reports received from the UK’s Department for Environment, Food and Rural Affairs which confirmed infection of animals with the FMD in UK.
Ashwani Kumar visits Dubai
Mr. Ashwani Kumar, MoS (C&I) visited Dubai on August 7. Speaking at an event organised by the Indian Business and Professional Council (Dubai), he said opportunities offered by India’s fast economic growth must be seized by investors in this part of the world. He stressed "outstanding resilience" of his country’s economy, saying Government is thinking of investing $300 billion in major infrastructure projects in the near future to support growth and further development. He added that Government also has three new initiatives that include investments in petrochemicals, manufacturing facilities in the country’s different regions, and railroads to connect seven states.
Emirates lists of commodities subject to export-import control
President Sheikh Khalifa Bin Zayed Al Nahyan on August 31 issued Federal Law No. 13 of 2007 on commodities that are subject to import and export control procedures. The new federal law seeks to standardise such procedures throughout the UAE. The new law directs the cabinet to order the establishment of a new control body to be known as the National Commission for Commodities Subject to Import, Export and Re-export Control.
A representative of the Ministry of Economy (MoE) shall head the new commission, whose membership will include representatives of other concerned federal ministries and bodies and the private sector. It will be tasked with co-operating and co-ordinating with relevant authorities on the rules introduced to control imports and exports in compliance with the new law. Accordingly, any local body or department that has reasons to ban or restrict a certain commodity will recommend the commission to do the same nationwide. The said commission will also inspect the procedures that are currently in place in the country and which form the base for any possible bans or restrictions on any commodities. The Commission’s membership will include representatives of the relevant federal ministries, bodies and departments as well as representatives of the Federation of UAE Chambers of Commerce & Industry (FCCI).
Chakola Ayurvedics to market products in UAE
According to a report in "Gulf Today" of August 13, NMC Trading has tied-up with Chakola Ayurvedics to market and distribute Chakola’s range of ayurvedic products in the UAE market. Chakola Ayurvedics, an ayurvedic FMCG manufacturing company based in Kerala, is the leading manufacturer of beautycare products which enjoy a formidable presence in the Indian FMCG sector.
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FRANCE
Renault Nissan to open new business centre in Chennai |
French automaker Renault and its Japanese partner Nissan Motor announced plans to open a R&D centre in Chennai, India next year that will employ more than 1,500 workers by 2010. The centre, which will be a 50-50 joint venture between the two partners, will support the two automakers’ global engineering, purchasing, design, cost management and information systems operations. Renault, Nissan and Mahindra & Mahindra are also building a 902-million-dollar factory together in the southern Indian city of Chennai. Nissan and Renault are also considering launching a low-cost 3,000-dollar car in India.
Louis Vuitton to build shoe plant in India
Louis Vuitton, the French luxury goods label, plans to construct its first factory outside Europe and the US near the Indian city of Pondicherry. The factory would attach soles to the uppers of Louis Vuitton shoes. The shoes would carry the "Made in Italy" label because most of the work involved would continue to be carried out in Italy. The Indian company, Feedback Ventures, was chosen to build the factory which will be operational in December 2008. The architect chosen is the Frenchman Jean-Marc Sandrolini. This decision by LVMH confirms that there is no longer a taboo on relocations in the field of luxury goods as was shown in a recent study carried out by Précepta, company of the Xerfi group.
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SINGAPORE
Singapore gears up to check money laundering in real estate |
The Legal Profession (Professional Conduct) (Amendment) Rules 2007 came into effect from Aug 15, 2007 to check money laundering in real estate through funds managed by legal firms which typically handle 90% of real estate transactions in Singapore. Till recently, real estate transactions used anonymous accounts which have now been banned. The legal firms are required to know a client’s business and keep records for at least five years.
PSA to cap operations at India port due to tariff cuts
PSA International announced on 9 July 2007 that it would rationalise its operations at TCT, which it has operated through its joint venture PSA Sical since 1998, following a decision by Tariff Authority for Major Ports (TAMP) in Sept 2006 to halve tariffs at its Tuticorin Container Terminal (TCT), which PSA termed as commercially unviable. The terminal will put a cap on operations, fulfilling only the minimum annual throughput of 300,000 TEUs (20-foot containers) specified in its concession agreement. This represents a cut in handling of almost 25% from last year’s throughput of 377,000 TEUs and is expected to result in delays at the terminal. From July 15, TCT, which can handle 450,000 TEUs per year with four quay cranes, will operate with only three cranes. Some ships will likely experience a longer port stay as a consequence, PSA Sical said. PSA said the reduced revenue per box caused by the tariff cuts is not enough to cover operating expenses and the royalty payment per box that it has to pay the Indian government under the terms of the concession.
PSA was recently awarded concessions for two new terminals in India, both due on stream by 2009. The first is on the north-western coast in Gujarat at the Hazira port and the second on the east coast at Chennai.
CapitaLand sets up US$ 600 m India property fund
Singapore’s Capitaland, South-east Asia’s biggest developer, is setting up a US$ 600 million CapitaRetail India Development Fund to invest in retail projects in India. CapitaLand is expected to hold about 40% equity of the fund and remaining to be held by insurance companies, pension funds and other corporations.
According to Capitaland CEO, the fund alongwith a similar sized Fund in China would allow the company to capture the tremendous retail investment opportunities in India and China. CapitaRetail India is the first CapitaLand-sponsored development fund set up to invest in retail malls in India. CapitaLand made its first foray into the India retail market in April 2006. With the new fund, the company hopes to grow its retail presence in India over time. The developer is trying to replicate its China retail mall strategy in India. CapitaLand now owns and/or manages over 70 malls in 28 cities across China.
SilkAir flights to Coimbatore from October
Singapore based SilkAir announced on 23 July that it plans to start thrice-weekly flights from Singapore to Coimbatore in Tamil Nadu from October 2007. The flights will be the first direct air service between both cities. SilkAir said the city’s buoyant economic growth offers favourable prospects for business traffic and commercial cargo. Coimbatore will be its third South Indian destination after Kochi and Thiruvananth-apuram in Kerala. It is also looking to launch thrice-weekly flights to Kathmandu this yearn
(Maps from worldatlas.com)
