New generation to generation

While global supply chains continue to adjust to current restrictions, what can be done to mobilise high-quality investment? Deputy Minister of Planning and Investment Tran Duy Dong Trade conflicts among major economies worldwide and the severe consequences of the pandemic since last year have been accelerating the relocation of big corporations to avoid high tariffs and reduce risks. Of these, numerous countries have also promulgated attractive policies for foreign direct investment (FDI), while Vietnam has got its own advantages to welcome investment, as well as carried out some outstanding solutions and innovative measures to meet the demand of potential investors. Vietnam has been ready to welcome new investors based on huge clean land areas, power sources for production, high-quality human resources, supporting industries, and simplified administrative procedures. For large-scale projects which apply high technologies, generate a lot of added value, and maintain close links with local enterprises, special incentives have already been built, and the Ministry of Planning and Investment (MPI) in collaboration with other ministries has drafted and submitted to the government. Despite the pandemic, some online meetings, dialogues, and investment promotion conferences between Vietnamese authorities and overseas investors have been organised to update new policies, incentives, and feedback for their concerns, including some of largest technology corporations in the world. Besides this, the MPI proactively works with diplomatic agencies, business associations, consultancies, banks, and investment funds to approach more investors that are already interested in this destination. Meanwhile, a task force responsible for FDI attraction led by Deputy Prime Minister Pham Binh Minh and supported by MPI Minister Nguyen Chi Dung has been established to call for as many foreign-invested projects as possible. The MPI has also created more favourable …

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Digital transformation is an indispensable way for businesses to grow Pandemic boosts digital progress The past year was a difficult and challenging one for the Vietnamese business community. The global impact of the Covid-19 pandemic disrupted supply and reduced demand, heavily undermining the Vietnamese economy dependent on export markets and major trade and investment partners. With strenuous efforts in pandemic control and economic growth restoration by the government, ministries, sectors and businesses, Vietnam’s GDP grew almost three percent in 2020, making it one of the few countries in the world to record net positive GDP growth. Phan Xuan Dung, Chair of the National Assembly’s Committee for Science, Technology and Environment, said that despite the impressive GDP achievement compared to other countries, Vietnamese businesses need to double or triple their efforts, cooperation and connectivity if they are to recover and develop. World Bank Lead Economist and Program Leader for Vietnam Dr. Jacques Morisset said Vietnam was likely to achieve a high growth rate thanks to its success in pandemic control, and while global trade declined seriously in 2020, Vietnam endeavored to export more than the rest of the world did. In the past, Vietnam was inefficient in digital transformation, but since the pandemic, two-thirds of companies in Vietnam have shifted to digital platforms, he said. Expressing his optimistic outlook for Vietnam’s economy, Morisset said that although the world economy is still unpredictable, Vietnam’s economy will certainly accelerate strongly, possibly growing more than six percent in 2021. Vu Tien Loc, Chair of the Vietnam Chamber of Commerce and Industry (VCCI), said Vietnam still has huge room for development, making the six-percent growth target for 2021 feasible. The processing and manufacturing industries achieved high growth in 2020 Easing business environment problems According to Loc, Vietnam …

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NESCAFÉ Plan of Nestlé Vietnam, one of the Swiss invested corporates in Việt Nam  has made significant contributions to local coffee industry in the past 10 years — Photo courtesy of Nestlé HÀ NỘI — Việt Nam is a highly attractive destination for investment because of its unique position to capitalise on the global chain shift, said Vietnamese Ambassador to Switzerland Lê Linh Lan. Lan told the webinar “Market Focus Việt Nam” on Tuesday: “In the pandemic, Việt Nam’s economy has proved resilient with a positive growth of 2.91 per cent in 2020 while the rest of the world plunged into a deep recession.” The webinar was organised by Swiss Việt Namese Business Gateway (SVBG) and the Geneva Chamber of Commerce, Industry and Services (CCIG) was also the first official launch of SVBG with Swiss partners and Việt Namese representatives. Lan mentioned the Government’s successful control of the pandemic and effective measures for economic recovery and international economic integration last year contributed to the attraction. Last year, Việt Nam completed the EU-Việt Nam Free Trade Agreement (EVFTA), concluded bilateral FTA negotiations with the UK (UKVFTA), and agreed to the Regional Comprehensive Economic Partnership (RCEP). Lan said: “With new-generation FTAs such as CPTPP, EVFTA, RCEP, Việt Nam has become one of the region’s fastest-growing and internationally engaged economies, at the centre of a network of 17 FTAs and economic and trade cooperation frameworks with the world’s leading economic hubs.” According to the Economist Intelligence Unit's recent report, Việt Nam has emerged as an attractive foreign direct investment destination in Asia ahead of China and India. The report suggests factors that make Việt Nam more attractive destinations are the incentives for international firms for setting up units to manufacture hi-tech products, the pool of low-cost workers, and the proliferation of free trade agreements, said Lan. She added: “The …

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