A slowdown in export growth of the foreign-invested sector could have a negative impact on Vietnam’s economy in 2020, according to SSI Securities Corporation, Vietnam’s largest brokerage house. As exports from foreign direct investment (FDI) firms currently account for 69% of Vietnam’s export turnover, the sector plays a decisive role to the country’s exports, stated SSI report. “Export growth of the FDI sector is slowing down at an alarming rate of 5% in the first nine months of 2019, much lower than that of the domestic sector at 16.2%. A number of key export products witnessed low growth rate, or even decline,” said the report. Specifically, phone and parts recorded are the largest export staple but only expanded by 2% during the January – September period, slower than the 16% growth recorded in the same period of last year. Similarly, exports of electronic products only grew 11.7% year-on-year against the 14% of the comparable period … [Read more...] about Slowdown in FDI’s export growth to impact Vietnam’s economy in 2020
The workshop of the Ba Ria - Vung Tau Seafood Processing and Import-Export JSC in Ba Ria - Vung Tau province (Photo: VNA) Hanoi (VNA) – Provinces in the southeastern region posted impressive economic figures in 2018, proving themselves an important growth engine of the whole country. The Binh Duong People’s Committee reported that the local gross regional domestic product (GRDP) rose 9.01 percent, with a 9.79-percent increase in the industrial production. The province attracted nearly 1.4 billion USD of foreign direct investment (FDI) and 5.2 trillion VND (222.8 million USD) of domestic capital. Last year, its export revenue increased by 15.6 percent from 2017. Exports by foreign invested businesses rose 17.5 percent to account for 80.5 percent of the total overseas shipments. As a result, Binh Duong recorded a trade surplus of over 4.8 billion USD, up more than 100 million USD from the previous year. The exports included wood, textile-garment, footwear, rubber, and … [Read more...] about Southeastern provinces’ economy performs well in 2018
Since it normalized relations with the powers like China in 1991 and the USA in 1995, Vietnam has begun to integrate into the global economy. Throughout this process of integration, Vietnam has signed numerous free trade agreements (FTAs) with countries and groups of countries. Vietnam's earliest FTA was the agreement signed with the Association of Southeast Asian Nations (ASEAN) in 1996, just one year after Vietnam joined ASEAN. Then, in 2007, Vietnam officially became a member of the World Trade Organization (WTO). After that, Vietnam signed many more FTAs, especially the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) at the end of 2018 and most recently the EU-Vietnam Free Trade Agreement (EVFTA) in June 2019. So far, Vietnam has signed 13 trade agreements, of which 12 have entered into force. Vietnam is also negotiating three other agreements. Economic powers such as the US, China, Japan and South Korea have inked trade agreements with Vietnam. These … [Read more...] about Who will lead Vietnam’s economy?
WB forecasts Vietnam's economic growth to stabilise around 6.5 percent this year - Illustrative image (Source: VNA) Hanoi (VNA) – The World Bank (WB) forecasts Vietnam’s economic growth to stabilise around 6.5 percent in 2018 in its East Asia-Pacific Economic Update released on April 12. The growth is projected to rise further in the short run, if the global recovery remains intact, the bank said. According to the report, while inflation is predicted to remain moderate thanks to a benign global price environment, strong wage growth may ultimately lift core inflation. External balances are projected to benefit from robust exports and FDI inflows. However, the report stressed that there are significant challenges, despite the generally favourable medium-term outlook. “Domestically, a slowdown in structural reforms could weaken the ongoing recovery and weigh on Vietnam’s medium-term potential growth. There is also a risk that fiscal consolidation may erode … [Read more...] about Vietnam’s economy to grow by 6.5 percent in 2018: WB report