Vietnam economy

The report, which was released by the Vietnam Institute for Economic and Policy Research (VEPR), said the positive growth momentum in the latter half of 2017 seems to have helped fuel the growth in Q1 this year. Processing and manufacturing continued to be a key driving force for the economy with an expansion of up to 13.56%, it noted, adding that Samsung Vietnam remained the biggest contributor to the processing and manufacturing industry. The firm’s export of mobile phones and components reached US$12.3 billion in the three months, surging 58.8% year on year. The mining industry rebounded with a growth rate of 0.4% after two consecutive years of contracting. Industrial production output increased by 11.6% from a year earlier, much higher than the growth of the same period of recent years. VEPR Director Nguyen Duc Thanh said most of the added value in this sector came from foreign direct investment (FDI) companies, as the manufacturing industry received great contributions from … [Read more...] about Report reveals problems of Vietnam’s economy despite Q1 strong growth

Thailand has passed a plan to allocate its budget of 21.5 billion baht to help stabilize rice prices for Thai farmers. This subsidy program may affect rice exporters including Vietnam, according to local rice operators. Local farmers harvest rice. Thailand’s price subsidy program for rice may affect rice exporters including Vietnam The Thai Cabinet has agreed to extract 34.8 billion baht from the country’s budget for agricultural subsidy programs for rice and oil palm farmers, reported the Vietnam News Agency in Bangkok, Thailand. In particular, over 890,000 households that had registered their rice farming activities with the Thai Ministry of Agricultural and Cooperatives will be the beneficiaries of the rice subsidy program. The one-year program, which will take effect next month, will offer advantageous prices for rice farmers amid downward price volatility. According to the director of a rice exporting firm in the Mekong Delta, rice exporters may suffer negative … [Read more...] about Thailand’s rice subsidy program may affect Vietnam: rice operators

Tran Thi Binh, 60, who lives in Ha Noi, has no idea about the circular economy but now brings her canvas bag shopping instead of taking plastic bags from the supermarket. A 'No plastic bag day' campaign at a Saigon Co.op shop. The circular economy provides a golden opportunity for businesses. Vu Lan Anh, 35, from HCM City, likes to use glass juice bottles as flower vases. She is also willing to pay a slightly higher price for a recycled product to protect the environment. Consciously or unconsciously, these examples show that the application of circular principles and their behaviours present golden opportunities for businesses. The circular economy, or simply circularity, is a global trend, driven by scarcity of resources. It is an economic system of closed loops in which raw materials, components and products are put in use for longer, thus improving the productivity of resources. In this concept, all ‘waste’ should become ‘food’ for another production … [Read more...] about Firms shouldn’t let circular economy go to waste

The seafood industry must envision a long-term strategy to make full use of new trade pacts and prepare for problems that might arise when they take effect, Truong Dinh Hoe, VASEP general secretary, said. Shrimp processed at Cuu Long Seafood JSC in Trà Vinh province. Vietnam ranks second globally in shrimp exports, with a market share of 14 percent, only behind India (15 percent). Hoe was speaking at a conference in HCM City on July 17 on the challenges and opportunities faced by the seafood sector under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which took effect in January, and the EU-Vietnam Free Trade Agreement (EVFTA), which is expected to be approved by the EU Parliament late this year or early next year. “Two major trade agreements will result in lower tariffs imposed on Vietnamese goods, but domestic enterprises will also face competition with foreign rivals in addition to stringent regulations on product quality and … [Read more...] about Trade pacts bring opportunities for Vietnam seafood industry’s sustainable growth

Vietnam has the potential to become a leader in tax reform, said Johan Langerock, tax policy expert of Oxfam at the Vietnam Fiscal Policy and Development Forum 2019, which opened in Hanoi on November 13. Johan Langerock, tax policy expert of Oxfam Upon addressing the forum themed “Towards a Fair Tax System, Langerock noted that the country’s economic growth reached a 10-year high of 7.1 per cent last year, with this strong economic momentum expected to continue for the remainder of the year. The nation has been transformed from one of the world’s poorest countries that suffered from frequent food shortages, to a lower middle-income economy that is currently a leading exporter of rice, seafood, coffee, and other commodities. The official poverty rate has fallen from 58 per cent in the early 1990s to less than 10 per cent today. Despite this success, the country’s extraordinary economic track record has not been accompanied by a similar pathway in … [Read more...] about Vietnam can be a leader in tax reform: Oxfam