Chủ đề: Vietnam

State budget revenue in 2019 reached VND1.5 quadrillion (about $65.1 billion), some 10.1 per cent over the estimate, according to the National Assembly (NA) Finance and Budget Committee. Regarding the settlement of State budget expenditures, there are still some limitations and inadequacies, such as a high proportion of recurrent expenditures in total expenditure, many important recurrent expenditures not meeting estimates, and spending not being in accordance with regulations, standards, and limitations.

Africa is considered a diverse new export market of potential for Vietnam’s key products. Local businesses need to carefully study the market and legal regulations to avoid risks, however, and also adapt to the tastes and cultures of African consumers, who are primarily Moslems. Other difficulties include high import taxes in some African countries and the common occurrence of fraud.

Industry associations have proposed delaying increases to land rentals, extending grace periods, deferring payments of taxes and fees, and reducing registration fees to assist production and business during the Covid-19 pandemic. They have also suggested dedicated places at factories for eating and resting, and that employees be limited to traveling on the same route to and from work. Other measures may be necessary, depending on the characteristics of each locality.

State budget revenue in 2019 reached VND1.5 quadrillion (about $65.1 billion), an increase of 10.1% compared to the estimate, according to the Finance and Budget Committee of the National Assembly. Regarding the settlement of state budget expenditures, there are still some limitations and inadequacies such as high proportion of recurrent expenditure in the total expenditure; many important recurrent expenditures not meeting the estimate; spending not being in accordance with regulations, standards, limitations...

The top 5 most popular automobile brands in Vietnam in the first half of 2021 are Hyundai, Toyota, Kia, VinFast, and Mitsubishi, which have all posted increased sales. This is a positive result amid the difficulties the industry has had to face.

The Association for Information Systems (AIS) has established a Vietnam branch (VAIS) in order to boost the digitalization of the country’s economy by promoting cooperation in researching, teaching, and applying information systems. One of the main missions of VAIS is connecting associations and enterprises with academia through practical research on information systems and technology management systems. VAIS will also boost cooperation in management information systems (MIS) between Vietnamese and foreign universities.

Vietnam’s stock market is one of the fastest growing in the world, but the high proportion of stocks in major industries makes retail investors cautious. The banking sector accounts for 34.55 per cent and real estate 21.39 per cent, for a total of 55.94 per cent; a ratio rarely found elsewhere. To enhance the durability of the market, it is important to diversify sectors. Production and business sectors associated with science and technology should be among those driving the market.

Vietnam greatly increased its importation of scrap iron and steel in the first half of 2021, reaching nearly 3.5 million tons worth $1.4 billion, up 32 per cent and 2.2-fold, respectively, compared to the first half of last year. Sources included Japan, the US, Australia, and Hong Kong (China).

A report from the research team at the United Nations Development Program (UNDP) in Vietnam pointed out that Covid-19 has not directly impacted the country’s car industry but instead presented it with more opportunities. They suggest that Vietnam quickly issue suitable policies so that its car industry can focus on a transfer to electric cars in the time to come. Electric cars are the future of Vietnam’s car industry, the report noted, and will mark the country’s position in the global market.

Vietnam’s wooden kitchen furniture is gaining in popularity in the US, the EU, the UK, and Canada thanks to beautiful designs and high quality. In the first half of this year, export turnover of such products was $480 million, up 67 per cent compared to the same period of 2020. The biggest export item was kitchen cabinets, with turnover of $287.5 million, up 78.9 per cent year-on-year and accounting for 73.5 per cent of the total. Kitchen tables followed, with $47.6 million, up 37.5 per cent, while wooden trolley exports rose 563.3 per cent to $2.6 million. Some 76.3 per cent of export turnover came from the US, up 85.9 per cent year-on-year. Exports to the EU rose 68.1 per cent and to Canada by 188.3 per cent.

Vietnam’s auto imports have been substantially influenced by the ASEAN Trade in Goods Agreement (ATIGA). Since import taxes on completely built-up (CBU) vehicles were cut to zero from January 1, 2018 under the agreement, vehicles from Southeast Asia have continuously grown in terms of market share. In the first half of this year, Vietnam imported 79,353 CBU vehicles worth $1.73 billion. Those originating from Southeast Asian countries (mainly Thailand and Indonesia) dominated in terms of volume, accounting for 80 per cent.

Peru has recently approved the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), under which the country commits to eliminating 81 per cent of tariff lines once the agreement takes effect, equivalent to 62 per cent of import turnover from Vietnam, and eliminating 99.4 per cent of tariff lines within 17 years. After the effective date, goods exported to Peru with a tariff of 0 per cent will include outdoor furniture, agricultural products such as cashew nuts, tea, pepper, vegetables, and certain types of coffee, among others. Rates on textiles, garments and footwear will be cut to 0 per cent in the 16th year under a roadmap. Key export items include phones and electronic components, computers and electronic products, footwear, clinker and cement, textiles, and fisheries.

As the restructuring of State-owned enterprises (SOEs) is one of the priorities of the government, the Prime Minister has issued Decision No. 22/2021/QD-TTg, which stimulates the speed of SOE restructuring by promulgating classification criteria and emphasizing decentralization. It is expected that some 1,500 SOEs will be restructured to 2025. Vietnam should take note of China’s approach to such restructuring, towards “grasping the large, letting go of the small”. The reason for this is the similarities in governance, with Vietnam’s Commission for the Management of State Capital at Enterprises (CMSC) and State Capital Investment Corporation (SCIC) being similar to China’s State-owned Assets Supervision and Administration Commission (SASAC). SOE restructuring in China has been quite successful in recent times thanks to the application of core strategies, including the merging of large enterprises into corporations.

The Prime Minister has issued Decision No. 22/2021/QD-TTg on allowing flexibility in the innovative re-organization of State-owned enterprises (SOEs). The Decision contains two new points. Firstly, it provides criteria for the classification of SOEs, and changes in the rate of charter capital held by the State, in which some important industries will see 100 per cent held by the State, such as high-tech applications, major investments, the field of prospecting, exploration, and development, and oil and gas exploitation. Secondly, the parent company, the representative of State capital, and the owner’s representative agency will be able to proactively classify SOEs according to announced criteria, and at the same time develop a restructuring plan based on an evaluation of business performance.

Global and local events call for new thinking on Vietnam's economic future.

The turnover of Vietnamese fruit and vegetables exported to the US reached $57.4 million in the first four months of 2021, a 16.6 per cent increase year-on-year, according to the Ministry of Agriculture and Rural Development. The US Department of Agriculture has predicted that the total value of Vietnamese fruit and vegetables exported to the US this year may total $15.1 billion.

The 15th National Assembly (NA) opened its first session in Hanoi on July 20, where it will discuss matters such as personnel work, socio-economic reviews, law and legislation drafting and adjustment, and various directional programs in the 2021-2025 period.

Under Document No. 243/BC-CP from the Ministry of Planning and Investment, total State budget capital for public investment in the 2021-2025 period will be nearly VND2.9 quadrillion ($125.9 billion), focusing primarily on key national projects.

Completely-built-unit (CBU) motor cars imported into Vietnam in the first half of this year doubled the figure posted in the same period last year, according to the General Department of Vietnam Customs. The country imported 81,107 CBUs in the period, with turnover reaching more than $1.838 billion, up 100.5 per cent in volume and 100.3 per cent in value compared to the first half of 2020.

In a report forecasting Vietnam’s economic development, HSBC has lowered its growth projection from 6.6 per cent to 6.1 per cent due to the ongoing Covid-19 outbreak. It also predicted that the Vietnam dong (VND) exchange rate will fluctuate widely in the second half of this year.