Trade and investment

Since last month the average daily trading on Vietnam’s stock bourses have dropped to around VND16 trillion ($690.70 million), down 61.5 percent from the first quarter. Trading declined for the sixth session in a row to VND12.46 trillion on Friday, before increasing 7 percent to VND13.33 trillion on Monday. Le Chi Phuc, CEO of investment fund SGI Capital, said at a recent forum that many new investors who had only been trading for several months had left the market due to lack of knowledge and experience. This means there are more room for long-term investors and organizations to buy, he added. Analysts of RongViet Securities Corporation said in a note that in the last two years, Vietnam’s stocks have been surging thanks to "easy" money, referring to speculators’ investment in stocks that rise and fall rapidly. But starting this year, only stocks with real value, shown by the company’s profit growth and increased capital, can continue to rise, with some winning sectors … [Read more...] about Falling trade likely caused by withdrawing speculators

In his speech at the event, which took place in both face-to-face and virtual forms in Bangkok, Thailand, on May 21-22, the deputy minister affirmed that Vietnam is ready to coordinate with WTO members to promote and approve key contents at the WTO’s 12 ministerial conference slated for June this year. Regarding measures in APEC to reconnect the region after the COVID-19 pandemic, the Vietnamese official spoke highly of initiatives and efforts to remove barriers, contributing to the resumption of safe and seamless travel, and economic recovery. Vietnam supports the promotion of regional cooperation towards facilitating mutual recognition of vaccine passports, Khanh said, stressing that Vietnam will continue to closely coordinate with APEC member economies to develop and implement viable initiatives. As an open economy that signed and implemented 15 free trade agreements (FTAs) with more than 60 partners, Vietnam has been working with APEC member economies to promote regional … [Read more...] about Vietnam backs rules-based multilateral trading system: official

The Government is committed to taking timely measures to ensure macroeconomic stability. The high inflationary pressure amid the recovery of domestic demand is putting Vietnam’s GDP growth target of 6-6.5% for this year at risk. Overview of the session. Source: quochoi.vn Deputy Prime Minister Le Van Thanh gave the remarks at the third session of the 15 th National Assembly held today [May 23]. According to Thanh, the Vietnamese economy has been on a positive recovery track in the first months of 2022 under the new normal. Total budget revenue for the first four months grew by 15.4% year-on-year to VND657.4 trillion ($28.4 billion), while the consumer price index (CPI) expanded by 2.64%, the lowest four-month period growth in the past five years. As of mid-May, credit growth stood at 7.2% against late 2021 and up 17% year-on-year, which showcases the recovery of economic activities, along with greater efforts from the Government to restore discipline … [Read more...] about High inflationary pressure put GDP 6.5% growth target at risk: Gov’t

Deputy Prime Minister Le Van Thanh addresses the 15th NA's third session on May 23. (Photo: VNA) Hanoi (VNA) – The targets set for 2022, including the growth target of 6-6.5 percent, remain a huge challenge given the domestic and international situation, Deputy Prime Minister Le Van Thanh said at the third session of the 15th National Assembly in Hanoi on May 23. The Deputy PM reported that the macro economy has been maintained, major economic balances ensured, and inflation brought under control, with the consumer price index ( CPI ) in the first four months of this year up 2.1 percent. The monetary market and interest rates have also remained stable, he said, adding that the credit balance by the end of April has increased by 7.18 percent compared to late 2021. In the four-month period, State budget revenue hit 657.4 trillion VND (28.37 billion USD), equivalent to 46.6 percent of the estimate and up 15.4 percent year-on-year. Export turnover reached 122.4 … [Read more...] about Growth target of 6.5 percent remains big challenge: Deputy PM

Besides, a sequence of events in the “One Commune, One Product” (OCOP) Vietnam Fruit and Product Festival will be opened at Tay Bac Square, Son La City, the Northern province of Son La on May 28, and will last until June 1. The OCOP Vietnam Fruit and Product Festival includes a conference to connect and promote mango and Son La-based agricultural products export and consumption, the “Road of Agricultural Products” exhibition, the cultural and culinary space of the mountainous areas, online fairs, agricultural and OCOP products trading on the e-commerce platforms, flowers and fruits carving contest and so on. On the occasion, Prime Minister Pham Minh Chinh will attend a groundbreaking ceremony of the Moc Chau Milk Paradise project, an inauguration ceremony of the Moc Chau glass bridge; pay a visit to a model of typical agricultural production; survey the construction progress and investment of Doveco Son La fruit and vegetable processing complex, which is the largest fruit and … [Read more...] about Prime Minister to host dialogue with farmers on May 29

GENEVA — The World Economic Forum’s Community of Chief Economists expects lower economic activity, higher inflation, lower real wages and greater food insecurity globally in 2022, pointing to the devastating human consequences of the fragmentation of the global economy. Reversing previous expectations for recovery, the majority of respondents to the latest survey expect only a moderate economic outlook in the United States, China, Latin America, South Asia and Pacific, East Asia, sub-Saharan Africa and the Middle East and North Africa in 2022. In Europe, the majority expect the economic outlook to be weak. The choices of both business and government are expected to lead to greater fragmentation in the global economy and unprecedented shifts in supply chains, creating a perfect storm of volatility and uncertainty. These patterns are expected to create further difficult trade-offs and choices for policy-makers, and – without greater coordination – shocking human costs. These are the … [Read more...] about Chief economists outlook warns of dire human consequences from the fragmentation of the global economy

Improved productivity, lower error rates According to the Vietnam Industry Agency under the Ministry of Industry and Trade (MoIT), the MoIT, the People's Committee of Hai Duong Province and Samsung Vietnam are implementing a February 2020 Memorandum of Understanding on improving production and quality of 15 local enterprises. Feedback from the business community points to improved productivity and reduced error rates. The program also helped change staff perceptions of the importance of meeting customer requirements not only in terms of price, quality, delivery but also in social responsibility through environmental protection and occupational safety. Improving capacity of supporting industry enterprises Another MOU between the MoIT, the People's Committee of Bac Ninh Province and Samsung Vietnam was also signed in 2020 on a six year sustainable development project for the local business community comprising enterprise improvement consultancy and supplier … [Read more...] about Coordination model proves effective in improving support industries

Germany-invested Framas Group has rented a 20,000-square-metre ready-built factory in KTG Industrial Nhon Trach 2, in the southern province of Dong Nai. Framas Group specialises in manufacturing high-quality plastic parts with customers including Nike and Adidas. Fabian Urban, director of footwear technology at Framas Vietnam, said that the reason for choosing Vietnam to open a factory is that the facilities are superior to other locations. “The establishment of this new factory is part of the group’s wider strategy to develop the footwear sector in the Vietnamese market,” said Urban. Meanwhile, Danish jewellery brand Pandora on May 12 signed an MoU to build a new jewellery crafting facility in Vietnam-Singapore Industrial Park III (VSIP) in the southern province of Binh Duong, 40km north of Ho Chi Minh City. According to Jeerasage Puranasamriddhi, chief supply officer at Pandora Production Co., Ltd., the new factory will be the company’s third manufacturing site and its first … [Read more...] about Key localities stepping up industrial real estate moves

Alain Cany, chairman of the European Chamber of Commerce in Vietnam What is the current status of capital flow from European enterprises into the Vietnamese market recently? I am pleased with the continued strengthening of Europe-Vietnam economic ties. European groups are not only increasing overall inbound foreign investment but are also focusing on high-quality projects that will further develop Vietnam into a magnet for world-class investment. Vietnam remains one of the most exciting, dynamic markets in the world. This is seen in our Vietnam Business Climate Index, our regular barometer of European business leaders and investors. For the first quarter of 2022, the index reached 73 out of a possible 100, its highest point following Vietnam’s peak of pandemic restrictions last year. Similarly, more than two-thirds of respondents expect the Vietnamese economy to improve in the second quarter. Hopes remain high. After big groups like Samsung and LG built factory systems … [Read more...] about Europeans getting taste for Vietnamese intentions

Local farmers process raw rattan furniture and craft businesses nationwide. Some bankable projects have been developing in Quảng Nam Province in creating sustainable development and value chain for rattan. Photo courtesy of Lục Đông company Công Thành Since starting a rattan and bamboo processing business in 2008, Trần Trung Hiếu has built a sustainable value chain for providing environment-friendly materials for crafts production by growing 152ha of rattan forest in the disadvantaged Nam Giang and Tây Giang districts in the central Quảng Nam Province in 2019-20. Hiếu, who is deputy director of Lục Đông company which specialises in processing rattan for furniture and crafts enterprises nationwide, said he had been cooperating with local ethnic groups in the two districts in building a sustainable chain of rattan that improved income for local people and protected biodiversity from exploitation. In 2019, Hiếu, with the technical assistance of WWF-Việt Nam, developed a … [Read more...] about Bankable projects offer sustainable development for local people