Showing posts with label Vietnam. Show all posts
Showing posts with label Vietnam. Show all posts

Saturday, June 24, 2023

Fleeing Vietnam, human rights lawyers arrive in U.S. following police summons

Friends back home react to their departure with mixed feelings.
By RFA Vietnamese

2023.06.23 

Fleeing Vietnam, human rights lawyers arrive in U.S. following police summonsVietnamese lawyers Nguyen Van Mien and Dang Dinh Manh stand in front of a photo of the U.S. Capitol at Dulles International Airport after their arrival on June 16, 2023


Three of the five lawyers who defended a Buddhist organization in a case in Vietnam last year – and who were later summoned for police questioning after publicly discussing the case – have fled the country and arrived safely in the United States.

Dang Dinh Manh and Nguyen Van Mieng flew into Washington’s Dulles International Airport last week. A third lawyer, Dao Kim Lan, told Voice of America that he was in “a very safe place” and was arranging his new life.

“When the plane landed, I felt really relieved after 100 days of being hunted down,” Mieng told Radio Free Asia. “With my visa, it took me only around 30 minutes to go through customs. I was so ecstatic that I almost forgot to pick up my luggage.”

The lawyers defended six members of the Peng Lei Buddhist House who were found guilty in July 2022 and sentenced to a combined 23 years and six months for incest and fraud. 

While they were providing legal support to the Peng Lei members, the three lawyers, as well as two others – Ngo Thi Hoang Anh and Trinh Vinh Phuc – also used the YouTube account Nhật ký Luật sư (Lawyer's Diary) to frequently post information about the case. The account no longer has any video content.

The public discussion of the case could be a violation of Vietnam’s Article 331 – a statute in the penal code widely criticized by international communities as being vague. Vietnamese authorities routinely use it to attack those speaking out in defense of human rights.

Public search notice 

Authorities in the southern province of Long An issued a summons to the five lawyers in March that required them to report to the police for questioning. When the lawyers didn’t appear, police 

followed up with several more summonses. 

Provincial Police on June 11 posted a search notice on its website, saying that Mieng, Lan and Manh had neither attended the meetings nor provided excuses for their absence. 

“The police at their wards of residence confirmed they were not at their places of residence and there was no information about their whereabouts, what they were doing, and they could not be contacted,” the police notice said.

The notice also said that investigators had begun searching for the lawyers and requested that anyone who sees them “immediately report to Long An Provincial Police’s Investigation Agency.” 

The whereabouts and status of the other two lawyers in the Peng Lei case – Anh and Phuc – was unknown.

In an interview with RFA after his arrival in the United States, Manh said that he was aware of the police decision to actively search for him. 

“However, I don’t think I have the responsibility to abide by this decision as it is not aligned with the regulations on criminal procedures,” he said.

Leaving Vietnam was within his rights as a citizen under Vietnam’s Constitution, he said.

“It’s my right to leave the country, travel and choose a place to reside and work,” he said. “I don’t know much about the U.S., but so far, I’ve been fascinated and overwhelmed. I have some projects to do here and have just kicked them off.”

‘Will critical voices still exist?’

The news about the lawyers’ arrival in the United States generated mixed feelings from friends and acquaintances in Vietnam.

“I am happy for my friends but worried for those who still remain,” Hanoi lawyer Ngo Anh Tuan, who has worked as a defense attorney in many political cases, wrote on Facebook.

“The total number of lawyers nationwide who dare to defend clients in political cases was less than the number of our fingers,” Tuan wrote. “Now nearly half have left. The quantity has decreased. I am not sure how the quality has been affected but the spirit of the remaining people has obviously gone down.”

“Will this trend stop, or will people continue to leave the country? Will critical voices still exist or gradually disappear over time?”

Over the last 15 years, Manh defended more than 50 clients, many of whom were human rights and democracy activists and independent journalists.

Manh and Mieng stood out among the modest number of lawyers who dared to work in political cases, according to a young attorney from the Hanoi Bar Association who wished to remain anonymous for security reasons.

It’s now more likely that prosecuting agencies will designate government-aligned lawyers to participate in political cases as defense lawyers, he said.

“Their departure creates a gap in political cases,” he said. “Lawyers now tend to avoid political cases.”

Evidence of a weak judiciary

But another lawyer from Hanoi who did not want to be named said that the three lawyers’ departure wouldn’t significantly affect the situation in Vietnam. 

“Escaping has never been a step forward, nor does it create any impact,” he wrote in a text message to RFA on Wednesday. “It’s simply a way to ensure the safety of those who left.”

However, their departure is more evidence of the weak position of lawyers in Vietnam’s judiciary, he said.

Lawyer Ngo Anh Tuan said that the Vietnamese government should change its treatment of lawyers.

“I asked myself many times: Instead of pushing political dissidents to the corner so that they have to make extremist choices, why doesn’t the government listen to them and have a dialogue with them so that conflicts will be settled and their knowledge can be utilized to make our country more democratic and advanced?”

RFA contacted Long An Provincial Police for comment on the search notice for the three lawyers. A message left with a staff member wasn’t immediately returned. 

Translated by Anna Vu. Edited by Matt Reed and Malcolm Foster.

https://www.rfa.org/english/news/vietnam/lawyers-flee-06232023144453.html

Even the lawyers have to flee, to run ....!!!


Vietnam to prosecute 84 for alleged involvement in Dak Lak attacks

https://www.rfa.org/english/news/vietnam/prosecute-06232023145504.html

Hundreds of police descend on Dong Tam in an attempt to quash land protests

https://www.rfa.org/english/news/vietnam/dong-tam-land-row-11082022010143.html


Sunday, June 18, 2023

Exclusive: Vietnam's No Va Land in talks with Credit Suisse, others to restructure debt -source

By Phuong Nguyen and Francesco Guarascio

May 23, 2023   5:02 PM GMT+7  



A motorbike drives past Vietnam's property giant No Va Land gallery in Hanoi, Vietnam May 23, 2023. REUTERS/Francesco Guarascio

HANOI, May 23 (Reuters) - Vietnamese property giant No Va Land Investment Group Corp (NVL.HM) is in talks with creditors to restructure part of its $1 billion foreign debt, according to two people familiar with the matter, amid turmoil in one of the country's top industries.

Those creditors include Credit Suisse (CSGN.S), according to one of the people.

The country's fifth-largest developer by market value has been badly hit with the real estate sector wracked by a government crackdown on corruption and stricter rules on corporate bond issuance and refinancing. That has led to a credit crunch while firms have also had to grapple with a surplus of high-end property.

So far this year, No Va Land has missed payments on three of its domestic bonds and faces further repayment obligations worth roughly 14 trillion dong ($597 million) on more than 30 bond tranches. Last month, its auditor, PwC, expressed "significant doubt" about its ability to "operate continuously".

To reduce repayment pressure, the company is trying to negotiate deals with foreign creditors, according to the people. They declined to be identified because the information was not public.

No Va Land's total exposure to foreign creditors was worth about $1 billion at the end of last year, comprising bonds as well as loans with short and long-term maturities, according to one of the sources.

The company has reached deals with some creditors and is considering options to restructure other parts of its foreign debt, the source said.

The second person said talks were underway with Credit Suisse and at least one other creditor.

Credit Suisse, which has arranged some of No Va Land's bond issuance, has committed to loans worth about $55 million, according to the Vietnamese company's financial statements. The bank has also co-arranged a syndicated loan worth about $81 million with a credit facility of $250 million.

Credit Suisse declined to comment. No Va Land, currently valued at around $1.1 billion after an 83% plunge in its shares in the last 12 months, did not respond to a Reuters request for comment.

Among its main foreign creditors is Warburg Pincus, which invested $250 million last June. Nova Land has agreed to convert $200 million of that into shares of its subsidiaries, according to one of the sources.

Warburg declined to comment.

Another large creditor is financial firm Seatown, controlled by Singapore's investment giant Temasek, which has extended about $100 million in loans, according to No Va Land's financial statements.

Seatown did not reply to a request for comment.

One of the sources said No Va Land was seeking to sell assets to service its debt, but a third source familiar with the matter said the company has struggled for months to find buyers.

No Va Land's total debt, including domestic loans and bonds, is about $2.7 billion, equivalent to 24% of its assets.

($1 = 23,443.0000 dong)

Reporting by Phuong Nguyen and Francesco Guarascio @fraguarascio; Editing by Sumeet Chatterjee and Edwina Gibbs

https://www.reuters.com/markets/asia/vietnams-no-va-land-talks-with-credit-suisse-others-restructure-debt-source-2023-05-23/ 

MAY 22, 2023 4:23 PMUPDATED A MONTH AGO

Vietnam property developer No Va Land delays bond payments

By Reuters Staff


HANOI, May 22 (Reuters) - Vietnam’s leading property developer No Va Land has delayed payments on a 1 trillion dong ($42.66 million) bond that matured on May 18, as the company faces a credit crunch amid difficult market conditions.

No Va Land is among the hardest-hit by turmoil in Vietnam’s real estate sector, which has been caused by high debt, a surplus of high-end property, and has been exacerbated by tighter credit rules adopted last year and the arrest of high-profile businesspeople.

The company’s shares on Monday were trading at a value 83% lower than a year ago, as it struggles to make repayments and scrambles to sell assets.

The company said it was in talks with bondholders to extend the maturity of the bond, according to a disclosure made to the Hanoi Stock Exchange on Monday. It needs to pay back the principal and nearly 64 billion dong in interest.

No Va Land, which has 31 active bonds maturing this year worth roughly 14 trillion dong according to Refinitiv data, in February missed principal and interest payments on another two lots of bonds due to liquidity issues.

Access to credit for property developers has been eased by the government recently but the sector remains on edge.

No Va Land, which was founded in 2007 and is active mostly in residential property and luxury resorts, did not immediately respond to a request for comment. ($1 = 23,443 dong) (Reporting by Phuong Nguyen; Editing by Kanupriya Kapoor)

Our Standards: The Thomson Reuters Trust Principles.

https://www.reuters.com/article/vietnam-novaland-idUSL4N37J1SP


APRIL 18, 2023  5:27 PMUPDATED 2 MONTHS AGO

Auditor PwC raises concerns over Vietnamese property developer No Va Land

By Reuters Staff

2 MIN READ

HANOI, April 18 (Reuters) - Auditor PricewaterhouseCoopers (PwC) on Tuesday cast doubt on the financial viability of one of Vietnam’s top listed property developers, No Va Land, which faces large bond paybacks this year amid difficult market conditions.

The company is among the hardest-hit by widespread turmoil in Vietnam’s real estate sector, which has been struggling for months because of a surplus of high-end property, high debt, stricter rules on bond issuance and refinancing, and arrests of high-profile business executives.

No Va Land, which has 34 active bonds maturing this year worth roughly 16 trillion dong ($683.88 million) according to Refinitiv data, said in its financial statements released on Tuesday that it had “enough resources to meet due obligations in the next 12 months”.

PwC approved the financial statements but expressed “significant doubt about (No Va Land’s) ability to operate continuously”.

“No Va Land’s businesses were significantly affected by the real estate market and the corporate bond liquidity,” the auditor said in a report.

The company recorded revenues of 11.15 trillion dong ($474.47 million) and a net profit of 2.181 trillion dong ($92.81 million) for 2022, down 26% and 37% respectively from the previous year.

In response to the auditor’s concerns, No Va Land said in a statement to the securities commission on Tuesday the group faced obstacles but was able to meet its debt obligations, thanks to the government’s support.

Vietnam last month softened rules on bond paybacks and access to credit for property developers.

The company, one of the biggest issuers of corporate bonds among Vietnam’s property firms last year, has said it is in talks with bondholders to reschedule payments or swap bonds for real estate products owned or developed by No Va Land.

$1 = 23,500.0000 dong Reporting by Phuong Nguyen; Editing by Kanupriya Kapoor

Our Standards: The Thomson Reuters Trust Principles.

https://www.reuters.com/article/vietnam-novaland-idUKL4N36L267

NOVEMBER 7, 2022   12:02 PMUPDATED 7 MONTHS AGO

Vietnam's second-biggest property developer faces cash crunch -sources

By Reuters Staff

3 MIN READ

HANOI, Nov 7 (Reuters) - Vietnam’s second-biggest listed developer, No Va Land, is firing staff and seeking urgent asset sales, company and industry sources said, as it struggles to pay creditors in the latest sign of distress in the country’s real estate sector.

The company’s stock price was down by nearly 7% on Monday at 0400 GMT and has lost nearly 40% since the beginning of this year, reaching its lowest level since April 2021.

Two sources with direct knowledge of the matter told Reuters the company was trying to sell distressed assets, including hotels and resorts, to raise cash to pay back loans and fund its operations. The sources declined to be named because of the sensitivity of the matter.

No Va Land did not immediately respond to an emailed request for comment.

The liquidity squeeze is the result of the authorities’ crackdown on the market for privately placed corporate bonds, which have been widely used as an alternative source of cash by real estate firms after a tightening in lending conditions since the middle of this year.

“Debts are coming due this year-end and, with the current tightening regulations on loans given to real estate firms, it’s hard for the company to have cash,” one of the sources said.

The company has been asked by Vietnam’s central bank to redeem some of its corporate bonds because they had been missold to investors without proper information about the risks, a third source said, aggravating its liquidity woes.

Founded in 2007, No Va Land is active mostly in residential property and luxury resorts. It is Vietnam’s second-biggest listed property firm, with a market capitalisation of $4.7 billion, after Vingroup’s real estate unit Vinhomes.

No Va Land last month posted a net profit of about 2 trillion dong, down 19% against the same period last year because of higher expenses caused by the stronger dollar, according to the company filings.

Demand in Vietnam’s real estate market is expected to stay strong through 2023, Moody’s said in a report in late August.

A fourth source, a supplier for one of No Va Land’s projects, said his 200 billion dong ($8 million) worth of raw materials were stuck as the project was being put on hold.

During the past month, the company has laid off about half of its workforce, and most of its ongoing construction has been put on halt, three sources said.

On Monday, No Va Land chairman Bui Xuan Huy told state-run newspaper Tuoi Tre that market developments were unfavourable, and the company had been forced to cut staff.

$1 = 24,860.0000 dong

Our Standards: The Thomson Reuters Trust Principles.

https://www.reuters.com/article/vietnam-markets-housing-idUSL4N3230P1

SEPTEMBER 11, 20202:39 PMUPDATED 3 YEARS AGO

Exclusive: Vingroup weighs selling school, health units as Vietnam's biggest firm refocuses

https://www.reuters.com/article/vietnam-vingroup-idINKBN2620VN


Exclusive: Singapore's CapitaLand in talks to buy Vietnam property assets from Vinhomes

By Yantoultra NguiPhuong Nguyen and Anshuman Daga

March 20, 2023   6:00 AM GMT+7   Updated 3 months ago




SINGAPORE/HANOI, March 17 (Reuters) - Asian real estate giant CapitaLand Group is in talks to acquire assets worth roughly $1.5 billion from Vietnam's biggest listed property firm Vinhomes JSC (VHM.HM), two sources familiar with the matter told Reuters.

A deal of that size would mark one of the largest real estate transactions in Southeast Asia in the last few years.

The talks come as Vietnam's property sector is struggling with a cash crunch following an anti-graft campaign launched by the government last year.

Discussions between CapitaLand, majority owned by Singapore state investor Temasek Holdings, and Vinhomes, which has a market value of $8 billion - have taken place for some projects owned by Vinhomes, four sources told Reuters.

Vinhomes, Vietnam's biggest real estate developer by market capitalization, is part of Vingroup (VIC.HM), the country's largest conglomerate.

One of the sources said CapitaLand is considering buying part of Vinhomes' Ocean Park 3 project, a 294-hectare resort city style development near the Vietnamese capital city of Hanoi, or another project in the northern city of Haiphong.

The value of the deal was still being negotiated, the person said, adding the talks reached advanced stage.

The sources declined to be identified due to the sensitivity of the matter.

When contacted by Reuters, CapitaLand Development did not directly comment on any potential deal with Vinhomes but said: "Vietnam is one of CapitaLand Development's core markets. We constantly evaluate investment opportunities to grow our presence in the country."

CapitaLand Development, part of CapitaLand Group - which has a presence in 40 countries - develops retail, office, residential, business parks and data centres among other businesses. It already has a portfolio of residential projects, including luxury condominiums, in four cities in Vietnam.

Vingroup declined to comment on any discussions with CapitaLand, but said that as a listed company it would disclose information if any transactions happen.

Vingroup, which is involved in real estate, automobiles and retail, is investing billions of dollars to develop VinFast (VFS.O), its fledgling electric vehicle car maker.

Vinhomes develops and owns residential and commercial real estate projects in Vietnam, a country which has a population of 100 million and was Asia's fastest growing economy last year.

The economy expanded by 8% last year, the fastest pace in 25 years, backed by strong retail sales and exports, but is facing headwinds from a global slowdown.

A property crisis that started last year, sparked by problems at one of the country's largest property groups No Va Land (NVL.HM), has battered investor confidence as authorities arrested high-level individuals and overhauled the country's bond sector.

Vinhomes was spun off and listed on the local stock exchange in 2018.

Vinhomes' net profit dropped 26% to 29 trillion dong ($1.23 billion) in 2022 from a year earlier, while total revenue declined 27% to 62 trillion dong.

Shares of Vinhomes have lost 10% so far this year, after tumbling 40% in 2022 as the property crisis deepened.

($1 = 1.3489 Singapore dollars)

($1 = 23,580 dong)

Reporting by Phuong Nguyen in Hanoi, Yantoultra Ngui and Anshuman Daga in Singapore; Editing by Kim Coghill

 

https://www.reuters.com/markets/deals/singapores-capitaland-talks-buy-vietnam-property-assets-vinhomes-sources-2023-03-17/ 

VinFast posts deeper loss in Q1, eyes July completion of SPAC merger

Reuters

June 16, 2023  4:01 PM GMT+7  



VinFast electric vehicles are parked before delivery to their first customers at a store in Los Angeles, California, U.S., March 1, 2023. REUTERS/Lisa Baertlein/File Photo

HANOI, June 16 (Reuters) - Vietnamese electric vehicle (EV) maker VinFast has reported a drop in first-quarter revenue by 49%, with a net loss deepening to $598 million in the first full reporting period since it started exporting to the United States.

VinFast made the disclosure in a filing late on Thursday with U.S. securities regulators as it looks to complete a merger with a blank-check company next month that will value the automaker at $23 billion.

The quarterly net loss compared with a loss of $411 million in the same period a year earlier. In 2022, VinFast lost $2.1 billion.

It attributed the quarterly revenue decline, to almost $84 million, to lower selling prices and its phase-out of internal combustion vehicles as it pivoted to become a dedicated EV maker.

The automaker, which had filed earlier for a U.S. initial public offering, announced last month it would go public through a merger with special purpose acquisition company (SPAC) Black Spade Acquisition Co .

VinFast and Black Spade target completion of the merger by July 20, they said in Thursday's filing.

The VinFast valuation was based on Black Spade's determination that VinFast was comparable with EV maker Lucid (LCID.O) "given their similarity in revenue scale and shared global target market with a near-term emphasis on U.S. sales."

Lucid went public in 2021 via SPAC, the filing said. Its market capitalisation, which was $23 billion at the time of its listing, was worth $13 billion as of Thursday's close.

VinFast faces competition from established rivals led by Tesla (TSLA.O) that have been bringing a range of new EVs to market amid a weakening global economy.

VinFast founder Pham Nhat Vuong, Vietnam's richest man, last month told Vingroup (VIC.HM) shareholders VinFast could break even as soon as the end of 2024.

He said it expects to sell as many as 50,000 units this year, an almost seven-fold increase over 2022 as it ramps up exports to North America and starts shipping to Europe.

VinFast began operations in 2019 and has a plant in Vietnam and plans for a second one in North Carolina.

It has shipped about 3,000 EVs to North America and expects to deliver the longer-range of its VF 8 SUV to customers this month.

Reporting by Phuong Nguyen; Editing by Martin Petty

https://www.reuters.com/technology/vinfast-posts-deeper-loss-q1-eyes-july-completion-spac-merger-2023-06-16/ 

SEPTEMBER 11, 2020  2:39 PMUPDATED 3 YEARS AGO

Exclusive: Vingroup weighs selling school, health units as Vietnam's biggest firm refocuses

 


 

HANOI (Reuters) - Vietnam’s Vingroup is considering selling controlling stakes in its medical and education units, two sources with direct knowledge said, as the conglomerate exits non-core businesses and fortifies its balance sheet amid a profit slump.

Vingroup, Vietnam’s largest listed firm, could look for buyers for Vinschool, a private school business, and Vinmec, a chain of private hospitals, the sources told Reuters.

The conglomerate has not appointed any advisers for the stake sales so far, but in its informal talks two buyers have shown interest in the two businesses, the sources said.

A third source aware of the matter said Vingroup has received preliminary interest, and the controlling stakes could fetch roughly $1.5 billion. The source said the interest was rejected.

It is also planning to raise as much as $1.1 billion in debt before the year-end for refinancing existing debt, one of the sources said.

The company did not respond to a request for comment. The sources declined to be named because they were not authorised to speak to the media.

Vinschool runs 27 educational facilities and Vinmec operates seven hospitals in Vietnam.

The plans are part of moves by Vingroup, which has a market value of $13 billion and posted half-year revenue of $1.7 billion, to stem losses in some of its units that have been compounded by the COVID-19 pandemic.

Founded by Vietnam’s richest man, billionaire Pham Nhat Vuong, Vingroup is omnipresent in the Southeast Asian country.

Just a year ago, one could be born in a Vinmec hospital, go to Vinschool, live in a Vinhomes apartment and drive to Vinmart in a Vinfast car.

But the group sold Vinmart last year, and with the potential stake sales of Vinschool and Vinmec, Vingroup is quickly scaling back its ambitions.

The expansion over the years, though, has pushed up Vingroup’s debt, and the losses at some of the ventures have squeezed its cash flow.

S&P Global and Fitch cut their ratings outlook on Vingroup to negative from stable last year, citing concerns about its over-reliance on cash-rich property unit Vinhomes to fund its new ventures.

Slideshow ( 2 images )

Vingroup’s first-half net profit tumbled 60% to 1.35 trillion dong ($58.26 million). Its shares on the Ho Chi Minh Stock Exchange have underperformed this year, falling 21% compared to the benchmark index’s 7.6% drop.

Its interest coverage ratio, which indicates the company’s ability to pay off debt, dropped to 3.8 times in the first half of this year from 5.0 in 2019, according to a copy of an earnings presentation prepared by Vingroup for potential investors that was seen by Reuters.

AUTOMOBILE GAMBLE

Vingroup scrapped plans to launch Vietnam’s sixth airline, “Vinpearl Air” in January.

Late last year, the group also abandoned moves to form a new unit from its sports, entertainment and hospitality business due to “profitability concerns” of some of the assets, a source with direct knowledge of the plans told Reuters.

It has made real estate, technology and automobiles its key growth focus, but it remains to be seen how the plan shapes up, especially its big bet on cars.

In 2017, Vingroup earmarked $3.5 billion to create its Vinfast car unit with plans to produce around 250,000 cars annually within the next five years, a period when it does not expect the venture to be profitable.

Last year, Vinfast sold 19,400 cars and 50,000 e-scooters, according to company data. Its net loss ballooned to 6.6 trillion dong in the first half of 2020 from 1.6 trillion dong in the year-ago period.

Vinfast’s latest offering, a gold-trimmed limited edition luxury SUV only available in Vietnam and billed as “the most powerful commercial vehicle in the world” is, at over $160,000, priced out of reach of most Vietnamese car owners. And its entry-level “Fadil” model is around 13% more expensive than competing models from Kia and Hyundai.

Vinfast equipment, real estate and inventory have all been put up as security for loans with international banks, as have 20 million shares that the company received from Vinhomes, according to its 2019 draft earnings report seen by Reuters.

($1 = 23,172.5000 dong)

Reporting by Phuong Nguyen and James Pearson; Additional reporting by Anshuman Daga in Singapore and Khanh Vu in Hanoi; Editing by Muralikumar Anantharaman

 

https://www.reuters.com/article/vietnam-vingroup-idINKBN2620VN


Thursday, June 15, 2023

EU: Press Vietnam to End Rights Abuses

Set Benchmarks for Progress at Bilateral Rights Dialogue




Twelve Vietnamese rights activists and bloggers currently detained for exercising their basic rights. Top row from left to right: Bui Tuan Lam, Le Manh Ha, Dinh Van Hai, Bui Van Thuan. Center row:  Pham Doan Trang, Trinh Ba Phuong, Nguyen Thi Tam, Truong Van Dung. Bottom row: Nguyen Lan Thang, Mai Phan Loi, Dang Dinh Bach, Tran Van Bang.  © 2023 Human Rights Watch

(Bangkok) – The European Union should make use of a bilateral dialogue on June 9, 2023 in Hanoi to press the Vietnamese government to end its systemic violations of human rights, Human Rights Watch said today. Vietnam has disregarded the human rights commitments made when signing the EU-Vietnam Free Trade Agreement in 2020 and intensified its repression by wrongfully sentencing activists to long prison terms, restricting civil and political liberties, and violating the freedom of religion and belief.

“The EU claimed its 2020 Free Trade Agreement would encourage Vietnam to improve its human rights record, but just the opposite has happened,” said Phil Robertson, deputy Asia director at Human Rights Watch. “Hanoi’s disregard for rights has already made it clear that the EU needs to consider actions that go beyond simply issuing statements and hoping for the best.”

Through the creation of a Domestic Advisory Group, the EU-Vietnam Free Trade Agreement was also supposed to promote the participation of independent civil society groups to help oversee the implementation of the trade and sustainable development chapter of the agreement. However, on July 2, 2021, Vietnamese police arrested Mai Phan Loi and Dang Dinh Bach, two active leaders of the nongovernmental organization trade agreement network that civil society groups created to promote their participation in the Domestic Advisory Group. On July 14, the EU group published a letter protesting the arrests of Loi and Bach. In January 2022, they were convicted on baseless charges of tax evasion and sentenced to three years and nine months, and five years in prison, respectively.

Of the Domestic Advisory Group’s seven members approved by the Vietnamese government, at least four organizations are closely linked to the ruling Communist Party of Vietnam and chaired by senior party members.

On May 31, Vietnamese authorities arrested Hoang Thi Minh Hong, another prominent environmentalist and climate change campaigner, also on wrongful tax evasion charges.

Human Rights Watch in May made a submission to the EU on the human rights situation in Vietnam, and urged the bloc to press the Vietnamese authorities to immediately release all political prisoners and detainees. Specifically, Human Rights Watch raised the cases of Le Manh HaDinh Van HaiBui Van ThuanPham Doan TrangTrinh Ba PhuongNguyen Thi TamTruong Van DungNguyen Lan ThangTran Van BangBui Tuan LamMai Phan Loi, and Dang Dinh Bach. Currently, Vietnam holds more than 150 political prisoners.

On June 6, three days before the human rights dialogue, Vietnam sentenced yet another human rights campaigner, the music teacher Dang Dang Phuoc, to eight years in prison and four years’ probation for expressing his critical views on social, environmental, and political issues.

Human Rights Watch also urged the EU to press the Vietnamese government to amend or repeal the penal code articles 109, 116, 117, 118, and 331, which the authorities frequently use to repress civil and political rights. The government should also repeal or amend articles 14(2) and 15(4) of the constitution, which allow for restrictions on human rights for reasons of national security that go beyond what is permissible under international human rights law.

Vietnam should also end its abusive restrictions on the right to freedom of movement. Human rights and pro-democracy activists frequently face restrictions on leaving their homes or neighborhood, are confronted with intimidation and violence by officials or government-connected thugs, and are prevented from leaving the country. In May, police at Noi Bai airport in Hanoi prohibited the prominent rights defender Nguyen Quang A from leaving for a trip to Europe.

“The EU should get serious about pressing the Vietnamese government to convert rights pledges into genuine reform,” Robertson said. “It’s not much of a rights dialogue if Vietnam officials are just going through the motions, expressing platitudes, and waiting for the meeting to end.”

https://www.hrw.org

Wednesday, May 31, 2023

Exclusive: Vietnam eyes multi-million-dollar handouts to Samsung, others to offset global tax

By Francesco Guarascio and Khanh Vu

May 30, 2023 3:31 PM GMT+7  



Samsung centre building is seen in Hanoi Vietnam May 29, 2023. REUTERS/Francesco Guarascio

HANOI, May 30 (Reuters) - Samsung and other foreign companies are pushing Vietnam to introduce a multi-million-dollar reform that would compensate them for higher levies they face from next year under a global overhaul of tax rules, a source involved in the talks said.

The discussions precede the introduction from January of a minimum tax rate of 15% for large multinationals under a landmark global reform led by the Organisation for Economic Cooperation and Development (OECD).

Vietnam has committed to comply with the OECD rule, effectively raising the tax rate to 15% for many of the multinationals operating in the country and who are currently taxed at a much lower rate thanks to various sweeteners.

The global rule requires companies paying less in a low-tax jurisdiction to face a top-up levy in their home country.

A top-up levy means foreign companies could pull out precious foreign exchange from Vietnam to comply with the rule, and Hanoi's decision to implement the higher 15% tax rate and plans for compensation are aimed at preventing this from happening.

The Southeast Asian nation, which heavily relies on foreign investment to pump prime its economy, fears the cross-border rule could make it less attractive to large multinationals.

"If this is not fully resolved, Vietnam's competitiveness will fade," said Hong Sun, chairman of Korea Chamber of Business in Vietnam, noting that South Korean investors were particularly sensitive to those changes.

In a meeting with government officials in April, Korean tech giants Samsung Electronics (005930.KS) and LG Electronics (066570.KS), U.S. chipmaker Intel (INTC.O) and Germany's Bosch (ROBG.UL) were among half a dozen large investors who pushed for compensations, the source who attended the meeting said.

Under pressure, the government is preparing a draft resolution that could be approved by the Parliament in October offering partial compensations to big firms, the source said, declining to be named because the discussions were internal.

None of the companies replied to requests for comments.

The firms have invested tens of billions of dollars in the country and are major employers. Samsung, for example, is the biggest single foreign investor in Vietnam, employs 160,000 people and produces half of its smartphones in the country, accounting for nearly one fifth of the nation's total exports.

Samsung's tax rate varies by district, and ranged between 5.1% and 6.2% in 2019 in the two northern provinces where it produces smartphones, according to government data cited by local media.

Under the proposed compensation resolution, still subject to changes, companies with large investments in Vietnam would be allowed to receive after-tax cash handouts or refundable tax credits to support their manufacturing or research outlays.

The total cost of the planned measure is estimated at several hundreds millions of dollars a year, the source said, noting that the bill for Vietnam would amount to at least $200 million annually.

However, the costs should roughly match the extra revenues that Vietnam is expected to raise from the higher taxes it will be imposing on big multinationals under the new global rules, the source said.

Smaller companies that are not within the scope of the new global rules may also receive handouts, the source said. This is expected to reduce potential frictions with OECD rules.

Vietnam's ministry for planning and investment and the OECD did not reply to requests for comment.

Reporting by Francesco Guarascio @fraguarascio; additional reporting by Khanh Vu and Phuong Nguyen in Hanoi and Leight Thomas in Paris; Editing by Miyoung Kim and Shri Navaratnam

 

https://www.reuters.com/world/asia-pacific/vietnam-eyes-multi-million-dollar-handouts-samsung-others-offset-global-tax-2023-05-30/