Business Beat

Business Beat

One person, one motorbike. This simple new regulation allowing a citizen to only register one motorbike has resulted in a drop in the number of new registrations. However, there are some special cases which it needs to address. For instance, companies that rely on the use of motorbikes to do business, like delivery companies, are frustrated by the law – they too are unable to register more than one bike. As are people winning motorbikes in promotion campaigns.

Dealers selling two-wheelers under hire purchase are unable to complete registration. Buyers must wait until they’ve paid the last instalment to register the bike in their names. Ironically, even those whose motorbikes are stolen are unable to purchase replacements, as their old motorbikes are still officially registered in their names.

Officials have come up with a kind of a solution. People owning motorbikes so battered that they can’t be resold, may relinquish ownership to buy a new one. To do so, the owner must file an application and turn over all the bike’s documents before registering a new one.

***

An amendment to the Ordinance on Private Medical Practice will prohibit health workers at State-owned institutions from running private health practices from 2008. Until then, they must acquire permission from their bosses before practising at private clinics.

This means doctors who now work for State-owned hospitals and simultaneously run a private practice must make a choice in the next few years – either quit their job or close down the private practice. There are thousands of young doctors unemployed while experienced doctors hold positions in Government hospitals, not for the income but for prestige. But the latter often do not do justice to their jobs either. Their time and energy are reserved for their private practices. Some even refer their patients at State hospitals to their clinics.

However, it might not be an unmixed blessing. The ordinance could affect rural areas where there is a shortage of medical staff. Young doctors may not have the incentive to move to the countryside if they are not allowed to operate their own clinics.

Officials explain that the change means doctors and nurses can retain their positions at Government hospitals while working after-hours at private hospitals, so long as they don’t own the establishment.

***

Businesses expect the Southeast Asian Games, to be held in Viet Nam in December, to provide a rash of opportunities and the chance to promote their goods and services. However, most are still scratching their heads when it comes to how to use the opportunity. They do not know how to apply for the right to use the Games logo and mascot, while organisers have yet to commission anybody to produce memorabilia for the event, which should have been available for tourists and fans by now.

Local companies say they want to use the logo and mascot on their products as soon as possible to fully utilise the chance to promote their business. A few brazen ones have decided not to wait for the official nod. Items like T-shirts are already on sale in HCM City carrying the golden buffalo logo without permission.

***

Local banks are introducing new services and products hoping to lure idle money into their vaults. Last week, the Viet Nam Bank for Investment and Development issued certificates of deposit for the first time in the country. The bank hopes to garner VND3,000 billion US$200 million, and at least a third of this by the end of next month. Incombank is also hoping to issue securities worth VND3,000 billion.

At Eximbank Viet Nam, foreign currency depositors can tell the bank to shift their savings from one currency to another, with the exception of Vietnamese dong amateur currency dealers must be licking their chops. Depositors can also choose to appoint the bank as their money manager. They will be guaranteed a basic interest rate by the bank which will invest their money in the way it thinks most profitable. Profits will be split evenly between the two.

Other banks are pushing ahead with the launch of debit cards. Most Vietnamese are uncomfortable with the idea of running up debts on credit cards.

VNS