TNT Vietnam and Indonisia News Posted by Harambe at TNT 4-15-2023



Harambe: IMF expert considers Vietnam bright spot in world economy | Vietnam+




Vietnam’s 8% growth in 2022 was a bright spot of the region and the world, said Daniel Leigh, head of the World Economic Studies division in the International Monetary Fund (IMF)’s Research Department, which produces the World Economic Outlook (WEO).


In an interview granted for the Vietnam News Agency during the week of Spring Meetings of the IMF and the WB in Washington DC, Leigh said the IMF have just revised up the growth forecast for Vietnam, adding that this is partly due to the rebound from COVID-19 and trade diversion. Some of the investment is shifting to Vietnam, giving the country a lift, said the expert.


Although the IMF expected a slowdown in Vietnam’s growth, the projected rate is still high, at 5.8% in 2023 and 6.9% in 2024, he said.


He also noted that inflation in Vietnam is relatively low, at over 3% in 2022. It is coming up – partly because of the dynamic economy – and is expected to be back to the world inflation target, at around 4.3% in 2024.


For Vietnam to continue to grow strongly in the remaining quarters of this year and the next five years, Leigh recommended that the country’s monetary policy continue to focus on bringing down inflation as it happens, and fiscal policy continue giving the targeted support to the vulnerable households.


Regarding financial stability, a priority should be given to helping stabilise the real estate and corporate bond markets with specific tools, but this should not distract from the overall move toward inflation stability, he suggested.




Harambe:  Groundbreaking ceremony held for new US Embassy in Hanoi | Vietnam+




Vietnamese Minister of Foreign Affairs Bui Thanh Son and United States Secretary of State Antony Blinken on April 15 broke ground on the construction of the new US Embassy in Cau Giay district, Hanoi.


The new embassy represents “another significant step towards strengthening the vital partnership between our nations and peoples,” US State Secretary Blinken said in his address.


The US Embassy campus has a total investment of 1.2 billion USD, built on 39,000sq.m, on a land area of 3.2 hectares, featuring plenty of greenery.


The design of the US Embassy complex will combine the modern urban landscape with the natural beauty of Hanoi as well as inspiration from the UNESCO World Heritage of Ha Long Bay.


Most of the construction will be done with recycled materials and the embassy’s design will be energy-efficient and flood-resistant. The foundation of the building will be built with basalt stone, available both in Vietnam and the US,


The architecture of the campus will stand for the shared commitments of the two countries in sustainability and climate change resilience.


Blinken said this is the day he has been waiting for a long time, adding he first heard about this project when he was still Deputy Secretary of State.


He expressed his gratitude to the Vietnamese Government and the US Embassy’s staff for their efforts to make this historic day into reality.


Over the past 27 years, since the normalisation of ties in 1995, the relationship between Vietnam and the US has been continually strengthened. This year marks the 10th anniversary of the Comprehensive Partnership between the two countries. The two countries have cooperated in all aspects, from improving public health to expanding all-encompassing economic opportunities to accelerating the transition to clean energy, Blinken noted.


The new embassy building will be eight stories tall and large enough to accommodate all personnel, according to the US diplomat.


The embassy will also be able to increase the number of consular service windows by four times the current capacity, allowing for more efficient and faster processing of visas and passports for a larger number of people, he noted.


It is estimated that over the course of six years of construction, the project will provide employment for approximately 1,800 local workers and contribute an additional 350 million USD to the Vietnamese economy.


At the event, Vice Chairman of the Hanoi People’s Committee Duong Duc Tuan said that the project is the result of many years of efforts by both countries with the active participation of many agencies.


Just before the US Secretary of State’s visit, Hanoi authorities approved the detailed planning for the remaining part of the new Cau Giay urban area at a ratio of 1/500 in the planning area with the code D30, which is an important condition for carrying out procedures related to the construction of the embassy.


The Hanoi People’s Committee will continue to closely coordinate with central agencies and the US Embassy in the construction process, supporting the project to achieve its goals and timeline.




Harambe:  United States Signs Rupiah 10.2 Trillion Infrastructure, Finance Deal with Indonesia – News (4/15/23)


US Secretary of the Treasury Janet Yellen and Indonesian Minister of Finance Sri Mulyani Indrawati signed the Rp10.2 trillion (US$698 million) Indonesia Infrastructure and Finance Compact. This is a five-year compact between the U.S. government’s Millennium Challenge Corporation (MCC) and the Government of Indonesia


The US government contributes Rp9.5 trillion (US$649 million) while the Indonesian government accounts for Rp718 billion (US$49 million).


MCC CEO Alice Albright joined the signing ceremony at the International Monetary Fund in Washington DC on Thursday, April 13, with representatives from the US and Indonesian governments.


“This partnership represents the United States’ and Indonesia’s shared belief in democracy and innovation-driven economic growth,” said Secretary Yellen, who is Vice Chair of MCC’s Board of Directors.


According to Yellen, the deal is expected to Indonesia’s Just Energy Transition Partnership, and the development of climate-resilient infrastructure that meets the standards under the Partnership for Global Infrastructure and Investment (PGII) – jointly announced by our presidents at the G20 Leaders’ Summit.


The Indonesia Infrastructure and Finance Compact aims to improve access to finance for the country’s transport and logistics infrastructure and MSMEs, especially those owned by women.


“Indonesia is taking crucial action to build a robust financial environment, promoting economic growth that benefits everyone. I am excited to see how our joint efforts will continue to strengthen economic security for current and future generations of Indonesians,” Finance Minister Sri Mulyani said.


The Indonesia Infrastructure and Finance Compact consists of three projects. The first is ‘The Advancing Transport and Logistics Accessibility (ATLAS) Project’—working with the provincial governments of South Sumatra, North Sulawesi, Riau, Riau Islands and Bali.


The second is ‘The Access to Finance for women-owned/MSME Project’, and the third is the ‘Financial Markets Development (FMD) Project’, which aims to provide technical assistance and blended finance grants to increase the participation of private sector or commercially oriented finance in infrastructure investments.