Why vietnam is an attractive destination for foreign investment

The Van Trung industrial park in Bac Giang province (Source: VNA) New Delhi (VNA) – Stable economic growth has made Vietnam an attractive destination for foreign investors particularly amid current changes in the global supply chain , according to a recent article published by The Economic Times . According to the article, a disruption of international trade, resulted from the US-China trade conflict and the COVID-19 pandemic, has necessitated a rethink on the supply chain. Earlier, supply chains were designed to keep costs low. In the post pandemic era, supply chains are being reworked to reduce the risks of future disruptions. The international community is looking to move towards relocating supply chains to India and Vietnam, it said. The article cited a recent Q2 Barometer report by QIMA, which showed that Vietnam and India came emerge as alternative sourcing locations. Accordingly, Vietnam’s reforms allow foreigners to own property as well as majority …

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Agriculture sector remains fairly resilient to COVID-19 While the COVID-19 pandemic has devastated the tourism industry and hit industrial production hard, agriculture and community-based agro-forest production have proven resilient in the tourism-intensive central region. Despite an average reduction at 30 per cent of revenue, farmers in suburban Đà Nẵng, Quảng Nam and Quảng Ngãi have maintained stable incomes compared to other sectors thanks to food chain distribution channels. Traditional fishing and self-sufficient farm production have helped residents in the Chàm Islands off the coast of Hội An, the Lý Sơn Islands off Quảng Ngãi Province and gardeners in rural areas of Cẩm Thanh Commune in Hội An and Hòa Ninh and Túy Loan villages in Đà Nẵng keep going throughout the pandemic. Restaurants, cafes and souvenir shops in Hội An – the most popular tourist destination in central Việt Nam – have closed, but farmers in organic gardens in Cẩm Thanh are still supplying people in …

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Over 1 million tonnes of goods channelled through Quang Ninh’s Mong Cai border gate A site for goods examination of the Mong Cai International Border Gate in Mong Cai city, Quang Ninh province. Despite serious impacts from the COVID-19 pandemic, border trade activities in Mong Cai city of northern Quang Ninh province, which borders China, have been well maintained with a surge in the volume of import and export goods compared to the figure in 2020. According to the Mong Cai International Border Gate Management Board, as of July 18, the total volume of commodities imported and exported through the border gate had reached more than 1 million tonnes, up 89.2 percent over the same period last year. The collected fees were totalled at more than 34 billion VND (1.47 million USD), up 58 percent year-on-year and equal to 62.7 percent of the yearly target. Specifically, the number of vehicles crossing Bac Luan bridge border gate reached 28,358, including 12,806 …

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Vietnamese economy records growth of 6.61% in second quarter The nation’s economy enjoyed annual growth of 6.61% in the second quarter of the year, with the country’s economic growth for the remainder of the year projected to reach between 4.5% and 5.1%, according to industry insiders. The event was co-hosted by the Vietnam Institute for Economic and Policy Research (VEPR) under VNU University of Economics and Business (UEB) and Konrad-Adenauer Stiftung (KAS) via online platform. According to details provided by the quarterly report, growth in the agro-forestry-fishery, service, and industrial sectors recorded an increase in the first half of the year with the FDI sector playing a crucial role in economic growth through exports. Furthermore, due to the impact of the COVID-19 pandemic, local businesses have been forced to bear additional production costs due to a rise in raw material prices coupled with land rental. Inflation during the course of the second quarter and the …

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Vietnam, EU review bilateral trade deal implementation Minister of Industry and Trade Nguyen Hong Dien and European Commission Vice-President and EU trade commissioner Valdis Dombrovskis have co-chaired the first meeting of the EU-Vietnam Free Trade Agreement (EVFTA)'s Trade Committee. The meeting, held in online format, aimed to review the implementation of the deal and discuss issues related to trade and investment in both bilateral and multilateral frameworks. Participants adopted Decision No. 01 of the committee on its operation mechanism, which comprises regulations on its function, membership, secretariat, decision-making procedure, and information transparency. Both sides agreed to coordinate closely to speed up the implementation of the deal and cope with matters that may pose negative impacts on the operation of businesses of both sides, thus maintaining and developing the supply chain amid COVID-19 pandemic. At the meeting, the two sides also mentioned a number of …

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Shares to move sideways with low liquidity The market will continue to move sideways this week with low liquidity to gradually form a strong enough accumulation base before returning to the uptrend, analysts said. The VN-Index was maintaining the recovery span from the support area of ​​1,286-1,261 points with low liquidity, which was a typical sign for an accumulation period, said analysts from SSI Securities Joint Stock Company (SSI). “The current bottom-fishing demand is still weak, so it was likely that the VN-Index will continue to move sideways with low liquidity,” they said. “The VN-Index may return to the uptrend if the index surpasses the resistance area of ​​1,340 points with the volume rising to the 50-day average,” they said. The benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) inched 0.42 per cent higher to close last Friday at 1,299.31 points. The southern market index had lost 3.6 per cent last week. An average of 599.9 million shares were …

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Securities firms cautious on directionless stock market Viet Nam’s stock market struggled to find direction last week as liquidity fell continuously and foreign investors net sold a value of more than VND2.22 trillion (US$96.6 million), causing analysts from securities firms to have cautious views of the market this week. On the Ho Chi Minh Stock Exchange (HoSE), the market benchmark VN-Index inched down in the last trading session to 1,268.83 points, while the HNX-Index on the Ha Noi Stock Exchange (HNX) plunged to 301.77 points. For the week, the VN-Index lost 2.34 per cent and the HNX-Index plummeted 1.95 per cent. Both benchmarks had declined more than 4 per cent since the close of trade Monday. The liquidity on both exchanges declined compared to the previous week. It was lower than the recent 20-week average, with a value of VND20.5 trillion per session. The trading value on the HOSE decreased by 5.2 per cent to VND91.54 trillion, equivalent to a drop of 4 per cent in …

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Hai Duong to postpone receiving foreign employees and experts from August 1 Hai Duong will stop allowing foreign employees and experts to enter the province and register for isolation at hotels in the province, effective from August 1 until further notice. Foreign employees who enter the province before August 1 will still be able to go into isolation as per the regulations. They will also be allowed to register to isolate at hotels and resorts outside the province. This decision was issued on July 26 after the province has reported a new COVID-19 case after going 47 days without an infection. Hai Duong has 14 established industrial zones. 11 of these, covering 1,732 hectares of area, have had their infrastructure completed with an average occupancy rate of 82 per cent. The province is a manufacturing hub for numerous groups, including An Phat Holdings, Ford Hai Duong, printing machine manufacturer Brother Industries (Vietnam), Sumidenso Vietnam, and Hyundai Kefico Vietnam. …

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The US will not take any trade action against Vietnam The European-American Market Department under the Ministry of Industry and Trade (MoIT) announced that the Office of the United States Trade Representative (USTR) has issued a formal conclusion of the investigation under Section 301 of the 1974 Trade Act into the acts, policies and practices of Vietnam related to the valuation of Vietnam’s currency. Based on the agreement between the US Department of the Treasury and the State Bank of Vietnam which provides a satisfactory resolution of the matter subject to investigation, the USTR will not take any trade action against Vietnam. The MoIT welcomes and highly appreciates this decision of the USTR. It has particularly positive implications for bilateral economic-trade relations, business and investment environment in Vietnam, and multifaceted cooperation between the two countries, according to the ministry. This is also a positive step following the agreement …

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July retail sales plunges nearly 20% due to COVID-19 Total retail sales of goods and services shrank 8.3 percent month-on-month in July to 14.84 billion USD as a result of restrictions induced to stem the ongoing COVID-19 outbreak. Total retail sales of goods and services in the first seven months of this year exceeded 121 billion USD, up 0.7 percent year on year. The Ministry of Industry and Trade is formulating specific plans to stimulate consumption and sustainably develop the domestic market./. Vinamilk posts record high net revenue in Q2 2021 The Vietnam Dairy Products JSC – Vinamilk, the largest dairy company in Vietnam, posted a record high in net revenue of 15.71 trillion VND (682.57 million USD) in the second quarter of 2021, a year-on-year rise of 1.4 percent, according to its financial report. The figure also rose by 19.2 percent compared to the previous quarter. The company’s after-tax profit exceeded 2.86 trillion VND in the period, a year-on-year …

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