Competitive wages

Peter Ryder - CEO, Indochina Capital For almost a year, Vietnam’s tourism industry has witnessed a recovery but is still behind other Southeast Asian neighbours. Vietnam welcomed 2.95 million foreign visitors in January-November 2022 while Thailand, Singapore, and Malaysia welcomed 10 million, 5.3 million, 6.2 million international tourists respectively during the same period. Many observers attribute the lack in foreign arrivals in 2022 to Vietnam’s restrictive tourist visa policies. More competitive and friendly tourism policies for international tourists such as 3-month multiple-entry visas, e-visa issuance, or granting visas-on-arrival at the airports will be suitable solutions to boost the tourism sector. Vietnam is one of the most open economies within Asia-Pacific, thanks to a series of economic reforms undertaken by the country’s government to create a fair and attractive business environment for foreign investors. The disbursement of foreign direct investment in … [Read more...] about Vietnam’s tourism sector has witnessed a recovery

Marko Walde - Chief representative Delegation of German Industry and Commerce in Vietnam (AHK Vietnam) Germany is Vietnam’s largest trading partner in the EU, and Vietnam has also become one of Germany’s largest trading partners in Southeast Asia. The European Union-Vietnam Free Trade Agreement (EVFTA), along with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, form part of a new generation of FTAs with a high level of trade and investment liberalisation. We expect German investors to increase investments based on the improved conditions and favourable environment in Vietnam. There will be many foreign direct investments flows for high-valued projects in Vietnam. With the EVFTA, Vietnam will benefit significantly from well-known German technology in management and training, more value-added production, and less material and resource waste. The EVFTA has shown Vietnam’s commitment to protecting people’s basic rights at work and in the environment. It … [Read more...] about Fresh German milestones to come

Price increases were large in sectors such as automobiles and transportation services, where pent-up demand picked up after reopening from the pandemic. On the supply side, shortages of key commodities, exacerbated by the Russia-Ukraine conflict, contributed substantially to higher energy and food prices. Andrea Coppola, Lead economist, World Bank The higher share of food in consumer spending has caused inflation to accelerate more in low-income countries compared to other emerging markets and developing economies. Many countries experienced large currency depreciations that passed through into higher import, producer, and consumer prices. In contrast, long-term inflation expectations have been more stable, edging up only slightly in both advanced economies and emerging markets and developing economies since the onset of the pandemic – by around 0.15 percentage points. This greater stability possibly reflects the credibility of the commitment of most central banks to … [Read more...] about The implications of global uncertainty

The company currently enjoys an export turnover of $4 million per year. On the days leading up to the Lunar New Year, Lap Phuc Co.'s factory of more than 10,000 square meters in Ho Chi Minh City was still busy with the final stages of an automobile mold order for export to the United States. Factory worker Vo Nhut Han stared intently at the control panel, a satisfied look on his face as the machine operated smoothly. Operating the machine together with Han was Nguyen Van Tri, the factory's general director. "Each working day, I only spend an hour on management work, and the rest of the day is spent down on the factory floor working alongside my fellow workers," said Tri, who is now in his 60s. For him, it's as if being a worker runs in his blood. Factory worker Vo Nhut Han (L) works on a machine at Lap Phuc Company in HCMC as its general director Nguyen Van Tri observes, January 2023. Photo by VnExpress/Le Tuyet Tri is the eldest son in a family of 10 children. … [Read more...] about From zero to hero: A downsized worker who owns a million-dollar factory

The keys to economic momentum. Photo: Shutterstock Michele Wee, CEO of Standard Chartered Vietnam “Maintaining macroeconomic stability” We expect the global economy to slow in 2023 as central banks around the world maintain restrictive monetary policies. We forecast modest global GDP growth of 2.5 per cent in 2023, slowing from an expected 3.4 per cent in 2022. The headwinds that have faced most economies in 2022 are likely to persist in the months ahead, however, we anticipate a recovery to take hold in the second half. Our recent global research report on Vietnam indicates that GDP growth is likely to remain strong in 2023. We still have a conviction about Vietnam’s high-growth potential over the medium term, expecting the growth rate to be 7.2 per cent in 2023 and 6.7 per cent in 2024. While macro indicators moderated somewhat in Q4/2022, they remain largely robust. Retail sales posted solid growth in the second half of 2022, implying improved … [Read more...] about The keys to economic momentum