Weekly Vietnam Economy News (29/06 – 05/07, 2020)
Foreign investment exceeded $ 15 billion in the first half of 2020
Despite the impact of the COVID-19 pandemic, foreign investment in newly registered projects and adding capital to existing projects still increased in the first half.
According to statistics from the Foreign Investment Agency (FIA) of the Ministry of Planning and Investment, in the first six months of this year, there was a significant increase in both newly registered and additional capital, however, total foreign investment was only 15.67 billion USD, representing a decrease of 15.1% in the year.
Notably, foreign investors poured US $ 8.44 billion into 1,418 newly registered projects, up 13.8%. Meanwhile, 526 current projects are allowed to increase investment capital by more than 3.7 billion USD, up 26.8% per year.
Foreign investment through capital contribution or share purchase was US $ 3.51 billion, only 43.2% of last year.
According to the agency, $ 8.65 billion of this foreign investment was disbursed in the first five months, equivalent to 91.5% of last year.
Foreign investors committed to pouring capital into 18 sectors, in which manufacturing and processing led with nearly 8 billion USD, accounting for 51.1% of total capital. Next is electricity production and distribution ($ 3.95 billion), wholesale and retail ($ 1.08 billion) and real estate ($ 850 million).
Of the 54 localities that received foreign investment during this period, the southern province of Bac Lieu ranked first with 4 billion dollars. Ho Chi Minh City ranked second with 2 billion dollars and Ba Ria-Vung Tau ranked third with 1.95 billion dollars.
Singapore is still Vietnam’s largest foreign investor with a total capital of 5.3 billion USD, followed by Thailand and China with 1.6 billion USD.
FDI enterprises strive to promote a circulating economic model
The circulating economic model has been actively implemented by businesses, especially foreign direct investment (FDI) enterprises in Vietnam, recently.
According to economic experts, FDI enterprises are contributing to promoting and developing circulating economic trends in Vietnam.
With stable politics and fast economic growth, Vietnam has become one of the world’s biggest investment attractions. According to a report of the Ministry of Planning and Investment (MPI), Vietnam’s FDI inflows in the first 5 months reached 13.89 billion USD, equivalent to 83% of the value recorded in the same period last year.
The FDI sector provides an important additional source of capital for Vietnam’s development investment, accounting for about 23.7% of total social investment and contributing nearly 20% of GDP. FDI enterprises have created jobs and promoted technological innovation, while contributing to improving the legal framework, improving labor productivity and connecting global production networks and value chains.
With a strategic vision, many FDI enterprises have oriented production and business activities towards sustainable development and circulating economic development in the host countries in order to ensure long-term growth and enhance trade reputation. brand and competitive position.
Export revenue in June is estimated at 21 billion USD, up 9.5% compared to the previous month
The Ministry of Agriculture and Rural Development (MARD) on June 29, reviewed the activities of the first six months of the year and set out tasks to overcome difficulties, and accomplish industry goals. agriculture over the past six months.
Notably, in the second quarter, Vietnam’s agricultural sector regained its growth rate with production value increasing by 2.19%.
In particular, export turnover of agriculture and forestry in the first six months of the year was estimated at 18.81 billion USD, down only 3.4% compared to the same period last year.
Although the sector faces some difficulties this year, it still has a trade surplus of 4.5 billion dollars, an increase of 339 million dollars over the same period last year.
In the first six months of the year, nine projects of processing agricultural, forestry and fishery products with a total investment of more than VND 10 trillion have been started construction or put into operation.
MARD has changed its growth target this year to 2.5-3% and the total export value at 41 billion USD.
Nation’s economic forecast leads way
With the success of the COVID-19 war, Vietnam continues to be the best-performing country in Southeast Asia, creating a solid foundation for the country to attract more investment and boost production.
Despite being a developing country facing many difficulties, Vietnam has become a model for the whole world to effectively fight the pandemic. This will lay a solid foundation for Vietnam to gain greater trust from international investors and increase by 4.1% this year, a very good growth rate in the current context of COVID-19 and an increase in The fastest growth is expected in Southeast Asia (see chart). However, it is likely that this ratio will be higher.
According to ADB, the damage caused by COVID-19 to Vietnam’s economy could range from $ 675 million to $ 3.7 billion by 2020, depending on the extent of the pandemic’s expansion. 0.3-1.4% of GDP. Growth in Vietnam has dropped to 3.8% over the same period in the first quarter of 2020 but has regained some strength in May since closing the social gap in mid-April. The company announced a new addition to its leading economic publication, The Asian Development Outlook issued in April. Growth is expected to rebound to 6.8 percent by 2021.
According to the latest regional economic update, Vietnam’s economy has been very resilient. In stark contrast to trends observed around the world, many businesses in Vietnam have increased sales abroad, while potential investors are still coming in large numbers, he added. . Nearly $ 14 billion of foreign direct investment was registered in the first five months of this year, and this number is expected to continue to increase in the coming months.
Vietnam’s CPI increased 0.66% in June, Ho Chi Minh City increased 2.1% over the same period last year
Consumer price index in June (CPI) increased by 0.66% over the previous month and 3.17% over the same period but decreased by 0.59% compared to December 2019, the General Statistics Office reported on 29th. June.
The June CPI in Ho Chi Minh City has increased by 0.66% over the previous month and by 2.1% over the same month last year, the city statistics office said on June 30.
Compiled from many sources by LOOKOFFICE
To read more economy news for business and investment in Vietnam, you can click here: https://lookoffice.vn/economy-business-investment/news/
For Foreign companies want to start or expand businesses and look for an office in Vietnam:
We offer a free consultation to support you to find a suitable Office For Lease In Ho Chi Minh:
Phone: (+84) 398 716 459 – Available via Whatsapp/ Viber/ Zalo