Economic factors can influence your sales scenario

High pedestal to reach for 2023’s growth ambitions Vietnam’s economic growth is projected to ease to 6.3 per cent in 2023 from a robust 8.02 per cent last year, as services growth moderates and higher prices and interest rates weigh on households and investors, according to the World Bank’s latest Taking Stock report released last week. Growth is expected to pick up to 6.5 per cent in 2024 as the economies of Vietnam’s main export markets gain strength, the report said. The outlook for Vietnam reflects heightened uncertainty in the global economy. Downside risks include weaker-than-expected growth in Vietnam’s major export markets, which include the United States, China, and the Eurozone, tightening financial conditions, higher domestic inflation, weaknesses in the balance sheets of corporate, banking and household sectors, and financial sector vulnerabilities. The Vietnamese government has set a target that GDP will increase 5.6 per cent in Q1, 6.7 per cent in Q2, 6.5 per … [Read more...] about High pedestal to reach for 2023’s growth ambitions

Land law adjustments aim to protect entities as well as the real estate market, photo Le Toan In a seminar to collect opinions from enterprises and experts regarding amendments to the Law on Land held last week in Ho Chi Minh City, Seck Yee Chung, a representative of the Vietnam Business Forum’s Trade and Investment Working Group, said that Article 35.d of the draft law provided that domestic companies only have the right to mortgages with their land and properties attached to the land at credit institutions licensed to operate in Vietnam. “This means that companies in Vietnam cannot mortgage their factory or land through foreign lenders, which creates great challenges for them to access competitive financing resources outside the country,” Chung said at the seminar, which was organised by the International Finance Corporation (IFC) and Ministry of Natural Resources and Environment (MoNRE). “Foreign lenders will look for security assets of Vietnamese companies to secure their … [Read more...] about Land law points further scrutinised

The energy transition in Vietnam is tied to the rapid growth of the economy, urbanisation, and industrialisation. We have seen the strong aspiration of the government to speed up the energy transition while meeting the requirements of economic development and the goal of becoming a high-income country by 2045. Energy transition is more seen as a potential engine for employment, and this trend will likely grow, helping to build support for renewables. John Rockhold, head of the Power and Energy Working Group under the Vietnam Business Forum Fossil energy sources are gradually being replaced by green and clean energy sources, reducing greenhouse gas emissions and combating climate change, while Vietnam is one of the first countries to renew its nationally determined contribution to the United Nations Framework Convention on Climate Change in 2020. The roadmap for the country’s transition process towards green and sustainable development will not only need to ensure … [Read more...] about Displaying readiness for the energy transition in Vietnam

Some branches are taking care of the registration fee for car buyers, but sales are still not being boosted, photo Le Toan In a document sent to the prime minister last week, the Vietnam Automobile Manufacturers Association (VAMA) along with other associations asked the government to extend the payment of special consumption tax and reduce the registration fee of domestically manufactured and assembled cars by a half this year, in order to stimulate demand. A VAMA representative said that the domestic car sales market is in a gloomy situation, and has been struggling like many other industries since 2020. “In order to stimulate market demand, we need strong enough policies like extending the payment of excise tax in 2023 and taking 50 per cent off the registration fee. These should be applied as soon as possible,” emphasised the representative. To combat the effects of the pandemic, the government chopped the registration fee in half for domestically manufactured and assembled … [Read more...] about Auto makers project bumpy years ahead

Over the past 35 years of development, the Vietnam Bank for Agriculture and Rural Development, better known as Agribank, always proves its position and role as a leading commercial bank in Vietnam. It has pioneered monetary policies, contributing to stabilizing the macro-economy, curbing inflation and supporting the country’s economic growth. The bank has cemented its key role in developing the agriculture sector and rural areas and offering credit and services to serve the country’s socio-economic development. Agribank was proud to receive the Vietnam National Brand award for the third consecutive year in 2022 and was among the top 10 Vietnamese strong banking and financial brands the same year. The lender has obtained impressive achievements in digital and green transformation and made substantial contributions to community development. Despite the negative impact of the COVID-19 pandemic, Agribank, with its initiative and flexibility, has employed multiple … [Read more...] about Vietnam’s Agribank wins many local prestigious prizes

The Federal Reserve on Wednesday raised interest rates by a quarter of a percentage point, but indicated it was on the verge of pausing further increases in borrowing costs after the recent collapse of two U.S. banks. Fed Chair Jerome Powell sought to reassure investors about the soundness of the banking system, saying that the management of Silicon Valley Bank "failed badly," but that the bank's collapse did not indicate wider weaknesses in the banking system. "These are not weaknesses that are running broadly through the banking system," he said, adding that the takeover of Credit Suisse seemed to have been a positive outcome. The Federal Open Market Committee policy statement also said the U.S. banking system is "sound and resilient." Even so, Wall Street ended sharply lower after Powell told a news conference that officials were still intent on fighting inflation while also eying the extent to which recent bank failures had cooled demand and slowed lending. The … [Read more...] about U.S. Fed delivers small rate hike amid global banking turmoil

According to the World Tourism Organization (UNWTO), sports tourism contributes up to 30 per cent of tourism's total revenue in some countries. Many countries have changed their tourism images through major sporting events that considerably leveraged tourism development and economic growth. The linkage of sport-based tourism products and sporting events contributes to stimulating local tourism or reducing seasonality by attracting many tourists in the low season. In addition to the economic boost, sports tourism brings cultural connection between the local community and international tourists. Leading international sporting event centre of Southeast Asia In the heart of Central Vietnam, Danang–Hue–Hoi An plays a significant role in the economy, and tourism development nationwide, which is an important connecting point and the motivation for regional linkage development. In addition to the economic boost, sports tourism brings cultural connection between the local … [Read more...] about VGS Group accompanies central region in journey as international sports destination

The absence in adjustment of power rates, tuition, and hospital fees contributed to an extremely low growth rate of GDP in 2020–2021 or an excessively high one in 2022, as well as relatively moderate inflation throughout 2020–2022. In the first two months of 2023, average core inflation climbed to 5.08 per cent, outpacing the average consumer price index (CPI) growth of 4.6 per cent. Dr. Vu Dinh Anh - Market Price Research Institute Ministry of Finance For 2023, public investment is seen as an economic boost. Investment capital generated from the state budget in February 2023 was anticipated to be almost $1.3 billion, an increase of 36.9 per cent compared to the same month last year. The expected amount of newly registered foreign direct investment up to February 20 was $1.76 billion, which was 2.8 times more than that in the same period in 2022. Slowdown in industrial development and a lack in investment capital are barriers that must be resolved to prevent a downturn … [Read more...] about Focused spending can set a solid base for positive outcome

The sons of Hanoi held their heads high and persevered in the cause of national liberation in the face of brutality and harassment. The lethal and brutal treatment and torture in Phu Quoc jail could not weaken the determination of the sons of Hanoi to survive and fight for the freedom and independence of their homeland. Former Hanoi imprisoned veterans attend a ceremony on March 22 that honors their sacrifices for national unity and liberation. Photo: Thanh Hai/The Hanoi Times Phu Quoc Prison was built in 1949-1950 under French colonial rule to detain political dissidents and national patriots. From 1963 to 1973, more than 40,000 Vietnamese patriots, soldiers, and communist activists who fought for the liberation of their country were incarcerated in the prison, which was run by the South Vietnamese regime. Located some 90 kilometers from the Vietnamese mainland, Phu Quoc prison was the site of the deaths of some 4,000 people who gave their lives in the … [Read more...] about Hanoi patriots recount memories of captivity

A Coca Cola factory in Viet Nam. The beverage giant was among companies joining the mission. — Photo nld.com.vn Senior executives from 52 US companies in the 'biggest-ever' US business mission to Viet Nam are discussing investment and sales opportunities in the country. Chairman of the US-ASEAN Business Council (USABC) Ted Osius said the council was never as busy as it is now. Its services are in high demand because many US companies show great interest in the country. He also said USABC representatives from other countries told him that they must act quickly because they were competing with Viet Nam. That was a way of saying Viet Nam has become a destination for growth and opportunities. Rafael Frankel, Director of Public Policy at Meta, said the trip was the second time he had been to Viet Nam since the outbreak of the COVID-19 pandemic. He appreciates the diligence of the Vietnamese workforce and sees a bright prospect for growth in the country. As such, he revealed the … [Read more...] about US companies upbeat on investment opportunities in Viet Nam