KTFA: Vietnam
Henig: The President of Vietnam resigns from office
2023-01-17
The President of Vietnam, Nguyen Xuan Phuc, submitted his resignation from his post, while the Central Committee of the ruling party approved his decision to suspend his work as a member of the political bureau of the party.
Phuoc was a major leader of the party and the state. He was trusted and entrusted with many important posts by the commission and the Politburo. As prime minister during the period 2016-2021, Phuk led and managed the efforts in combating the COVID-19 pandemic,” said a statement issued after a meeting of the commission.
He added, “However, the president was responsible for allowing a number of officials, including two deputy prime ministers and three ministers, to commit abuses that caused serious consequences. Two deputy prime ministers resigned from their posts, while two ministers and many other officials face criminal charges. Phuk decided to put up with it.” Responsibility, resignation from office and retirement from political work.
“In consideration of the Party’s regulations and his personal request, the Party Central Committee has agreed to allow Fuk to resign as State and Party Leader and as Chairman of the National Defense and Security Council from 2021-2026,” the commission announced.
Fuk, 69, has been a member of the Party’s Central Committee, Politburo and National Assembly for multiple terms.
From 1997 to 2006, he was Chairman of the Quang Nam Provincial People’s Committee. He was appointed head of the government bureau in 2006 and deputy prime minister in 2011, before becoming prime minister five years later.
He was elected president in April 2021 LINK
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Henig: Electronic firms continue to shift investment to Việt Nam
January, 17/2023 – 09:17
In continuation of moving their production hubs, this year many of the giants in the world of technology and electronics have announced business expansion plans in Việt Nam.
HÀ NỘI — In continuation of moving their production hubs, this year many of the giants in the world of technology and electronics have announced business expansion plans in Việt Nam.
Recently, Apple revealed that it will move its MacBook production chain to Việt Nam in 2023. It has asked Foxconn, its biggest supplier, to launch a MacBook production chain in Việt Nam from May this year, while making plans to produce Macbook Pros in Việt Nam.
In 2025, about 20 per cent of the total number of iPads and Apple Watches will be produced in Việt Nam, along with 5 per cent of the MacBooks and 65 per cent of AirPods. Currently, 25 out of the 190 partners of Apple are running their factories in Việt Nam.
Foxconn, after investing US$1.5 billion in Việt Nam, plans to invest an additional $300 million in the Fukang factory in Quang Châu Industrial Park in northern Bắc Giang Province.
Another Apple supplier, Goertek has announced its additional $300 million investment in Bắc Giang Province. Meanwhile, Lxshare, which will assemble iPhone 15 Pro Max, is running six factories in Việt Nam with a total of 40,000 labourers.
At the same time, computer producer Dell is striving to make sure all of its chips are produced outside China.
Electronics firm Pegatron is also building a factory worth about $481 million in Hải Phòng, while considering moving its R&D centre from China to Việt Nam at a suitable time.
Many other big companies such as OPPO, HP and Bose are also considering the relocation of production plants to Việt Nam, while others, including Xiaomi, Bosch, Panasonic, Amkor, Sharp and Compal, also plan to expand their business presence in the country.
Particularly, Korean firm Samsung, after pouring $18 billion and launching Southeast Asia’s largest R&D centre in Việt Nam, also plans to raise its investment in Việt Nam to $20 billion.
Another Korean electronics company, LG, is also making plans to inject additional $4 billion in Việt Nam.
Dr. Hồ Quốc Tuấn, a lecturer at Bristol University, commented that Việt Nam is benefiting from the diversification of production locations of international businesses.
Experts attributed the phenomenon to Việt Nam’s advantages such as low-cost workforce, and the country’s engagement in 15 free trade agreements covering more than 50 countries, as well as Việt Nam’s political stability.
— VNS LINK
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Henig: Việt Nam remains top 5 global investment sites for EU firms despite sentiment slide
January, 17/2023 – 08:32
The confidence of European enterprises in Việt Nam’s economy declined for a second quarter but the country still remains in the top five global investment destinations for their companies.
HÀ NỘI — The confidence of European enterprises in Việt Nam’s economy declined for a second quarter but the S-shaped country still remains in the top five global investment destinations for their companies, the latest Business Climate Index (BCI) published by the European Chamber of Commerce in Việt Nam (EuroCham) showed last week.
The BCI dropped below the baseline to 48.0 in Q4 2022, a drop of 14.2 points compared to three months ago and 25 points from the first quarter of the year.
Though Việt Nam’s economy grew over 8 per cent for the whole of 2022, this data comes amid continued global economic volatility resulting from a storms of factors including a slowdown in global growth, interest rate hikes, sustained inflation and bruised consumer confidence.
The number of companies expecting economic stabilisation or improvement in Q4 dropped to 27 per cent from 42 per cent in Q3, while the number of firms with growing sense of pessimism doubled from 19 per cent in Q3 to 38 per cent in Q4.
“Things were definitely less positive in the fourth quarter of 2022 than they were earlier in the year,” said EuroCham Chairman Alain Cany.
However, according to him, this should not be viewed as a cause for concern.
“In fact, Việt Nam’s economic opportunities continue to exceed those of its regional and international peers. This is evident from the fact that so many of EuroCham’s members consider Việt Nam central to their global investment strategies,” Cany said.
The report said 41 per cent of respondents stated their company is shifting operations from China to Việt Nam, up from 13 per cent in the third quarter, while nearly 35 per cent of firms ranked Việt Nam among the top five global investment destinations for their company, with 12 per cent stating that Việt Nam was their firm’s top investment site globally.
However, the report also pointed out three most significant regulatory barriers to foreign companies operating in Việt Nam including a lack of clarity regarding rules and regulations (51 per cent), administrative issues (41 per cent) and visa and work permit difficulties (30 per cent).
Despite that, 58 per cent were satisfied with the attention of policymakers paid to business needs when setting relevant policies.
In addition, BCI participants reported that the EU-Việt Nam Free Trade Agreement (EVFTA) had a positive effect on the growth of their businesses, their financial health through tariff reductions and the strength of their supply chains.
— VNS LINK
Henig: Strong recovery of capital’s economy
06:00 | 17/01/2023
(VEN) – According to a report by the Hanoi People’s Committee, the capital experienced a strong economic recovery in 2022 and maintained its leading position among the provinces and cities nationwide in attracting foreign direct investment (FDI).
Hanoi achieved a gross regional domestic product (GRDP) growth of 8.89 percent, with the city’s service sector increasing 10.06 percent, industry and construction improving 7.74 percent, and agriculture, forestry and fishery 2.58 percent. The capital earned export revenue of an estimated US$17.34 billion (up 11.9 percent from 2021), imported goods worth an estimated US$40.26 billion (up 15 percent), and reached retail sales of goods and service revenues of VND615.96 trillion (up 10.9 percent) and an index of industrial production (IIP) of about eight percent. Agricultural production was stable, with crops growing well, and pig, cattle and poultry herds all increasing. Development investment capital reached VND468 trillion in 2022, up 13.8 percent from 2021 and accounted for about 39 percent of the city’s GRDP.
Nguyen Ngoc Tu, Deputy Director of the Hanoi Department of Planning and Investment, assessed that in 2022, the city effectively implemented solutions to overcome difficulties and restore growth, and enterprises quickly restored and boosted production and trading, Tu said.
Hanoi has approved a plan to establish 2-5 industrial parks in the capital from 2021-2025 to attract more domestic and foreign investment.
According to Nguyen Manh Quyen, Vice Chair of the Hanoi People’s Committee, in addition to industrial zone infrastructure development, the city has simplified administrative procedures, and offered tax and land-related incentives, which helped it attract investment by large corporations and enterprises.
Hanoi has set a target of attracting US$30-40 billion of foreign investment capital and disbursing US$20-30 billion in the 2021-2025 period. It plans to prioritize high-quality projects and competitive products with a high added value, as well as urban infrastructure and smart city development, support industries using modern and environmentally friendly technologies, information technology (IT) projects, research and development, tourism, financial and banking services, human resource training, high-tech agriculture, and safe, clean food.
Plans also call for continued economic restructuring and development of new economic models, as well as building and/or licensing more markets, trade centers, supermarkets and convenience stores and promoting+ supply-demand connections with provinces and cities nationwide. Development will also focus on e-commerce, online and non-cash payment, and target growth of 10 percent in total retail sales of goods and service revenues. The capital will pilot development of tourism, including community tourism, pertaining to development of agriculture and new-style rural areas, craft villages and tourist attractions associated with traditional cultural values of Vietnamese ethnic minorities.
Some 25-30 businesses in the city are expected to create and develop 30-35 key industrial products on a sustainable basis in 2023. The city will improve industrial zones’ and industrial enterprises’ capacity and productivity, call for investment in infrastructure and production and trading activities in existing industrial parks.
Hanoi will accelerate administrative procedure simplification in 2023 to accommodate business activity, ease problems related to planning, investment, land, construction and site clearance procedures, and speed up the handling of 191 projects with the delayed use of land.
Nguyen Hanh LINK
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Henig: MoIT prioritises developing domestic supply chains and stabilising prices
January, 17/2023 – 10:10
Deputy Minister of Industry and Trade Đỗ Thắng Hải said at present, the MoIT is promoting the implementation of solutions to ensure the balance of supply and demand and stabilise the market of essential goods for the Lunar New Year of 2023.
HÀ NỘI — The Ministry of Industry and Trade (MoIT) this year will give priority to developing supply chains of domestic consumer goods and continue to stabilise commodity prices.
Deputy Minister of Industry and Trade Đỗ Thắng Hải said at present, the MoIT is promoting the implementation of solutions to ensure the balance of supply and demand and stabilise the market of essential goods for the Lunar New Year of 2023.
At the same time, it will coordinate with localities to implement market stabilisation programmes to meet people’s needs during the peak of the Lunar New Year (Tết).
For the development of the domestic market, Trần Duy Đông, director of MoIT’s Domestic Market Department, said that the draft on restructuring the industry and trade industry sets the target to restructure the domestic market towards fast and sustainable development.
In addition, the sector will maintain a seamless connection with import and export markets to ensure the smooth operation of domestic manufacturing activities.
Based on expanding the domestic consumption market, together with the development of Vietnamese brands, the sector will exploit the advantages of the rapid growth of the middle class and young and dynamic consumers.
Accordingly, the ministry will prioritise the development of new consumer economic models such as sharing economy, night-time economy, tourism economy, green economy, circular economy, digital economy, and e-commerce.
It expects that the added value of domestic trade will achieve an average growth rate of about 9-9.5 per cent each year.
In addition, the industry and trade sector will build and develop a synchronous and modern commercial infrastructure system and prioritise modernising the distribution system in rural and mountainous areas. It will encourage enterprises, commercial cooperatives and business households to innovate their operation methods according to modern and professional manners.
Đông said that the ministry has been coordinating with the Ministry of Agriculture and Rural Development to effectively connect production with the market under the supply chain model to ensure stability in supply, demand, price and origin of commodities.
The ministries will manage the quality of goods circulating on the domestic market under international regulations and standards, and implement product and goods traceability. In addition, they also coordinate with localities to develop domestic consumer goods supply chains, especially for agricultural products and food.
Economic expert Vũ Vinh Phú, former chairman of the Hà Nội Supermarket Association, said that to have sustainable development of the domestic market, it is necessary to promote linkages between enterprises and commodity associations in goods consumption, reducing dependence on exports.
Meanwhile, ministries, localities and associations must also link more closely with online fairs and cooperate with e-commerce platforms to promote the consumption of goods.
The MoIT sets a goal that by 2030, goods distributed via the modern retail system will account for about 38-42 per cent, while those sold via e-commerce channels account for about 10.5-11 per cent.
The domestic sector is targeted to account for 85 per cent of Việt Nam’s total retail sales of goods. In comparison, the foreign-invested sector will account for about 15 per cent.
According to MoIT, in 2022, Việt Nam controlled the COVID-19 pandemic, so production activities and people’s daily life gradually recovered, and the demand for goods increased again.
The domestic supply of goods met the demand, while commodity prices did not have large fluctuations.
Concerning petroleum products, the ministry has carried out many solutions to ensure supply, limiting the impact of fuel price hike.
The ministry reported the prices of many goods on the domestic market tended to increase from the end of the first quarter of 2022.
In the second quarter, the price of input materials rose due to the increase in the price of raw materials on the world market.
However, from the beginning of the third quarter, following the trend of world prices, prices of many commodities have gradually stabilised again.
The General Statistics Office reported that in 2022, the national retail sales of goods and services were estimated at VNĐ5.7 quadrillion, up 19.8 per cent over the previous year. This was a fairly high growth rate in recent years.
After two consecutive years of decline due to the impact of COVID-19, the country’s total retail sales this year rebounded sharply. That meant the State’s post-pandemic economic recovery policies have been effective, and people’s purchasing power has gradually restored to the pre-pandemic level.
— VNS LINK
