Weekly Vietnam Economy News (31/08 – 06/09, 2020)
Vietnam attracts FDI effectively
Vietnam has become one of the fastest-growing economies in the world since it first opened its doors to foreign trade and investment more than three decades ago, with a GDP higher than 12.5 last year. times compared with 2001 and average growth of 7.26 percent from 2001 to 2010.
It also plays an important role in boosting productivity and exports, he added that the foreign-invested sector contributes more than 70% of Vietnam’s total exports.
So far, the country has attracted more than US $ 370 billion in FDI, of which 58% has been disbursed since the Foreign Investment Law came into effect in December 1987, paving the way for FDI attraction. around the country.
FDI inflows exceeded $ 38 billion in 2019, the highest in 10 years and up 7.2% compared to 2018. FDI disbursement reached $ 20.38 billion, up 6.7% over the same period last year, and is a new record.
Due to COVID-19, FDI in the first eight months of this year stood at $ 19.54 billion, down 13.7 percent from the same period last year, a report from the Foreign Investment Agency of the Ministry of Planning and Investment (FIA) disclosure.
Meanwhile, committed FDI in newly licensed projects increased by nearly 7% to $ 9.73 billion. The FIA believes that the increase in new FDI commitments during this period for the liquefied natural gas (LNG) plant project in Bac Lieu province, the Mekong Delta with a capital of 4 billion USD, accounting for 41.1%.
Additional capital of USD 4.87 billion was awarded to 718 existing projects, an increase of 22.2% in the capital but a decrease of 21% in the number of projects.
According to the FIA, the additional investment of 1.38 billion USD in the petrochemical complex in the south of Ba Ria-Vung Tau province and 774 million USD in the project of West Lake Urban Area in Hanoi has contributed to increasing capital for existing projects.
The report showed that, in the first 8 months of the year, Singapore remained as the largest foreign investor in Vietnam, with 6.54 billion USD, followed by South Korea (2.97 billion USD, equivalent to 15). , 2%) and China ($ 1.75 billion., Or nearly 9 percent).
Foreign investors can enter Vietnam more easily
The Prime Minister approved the Ministry of Planning and Investment’s proposal to allow senior personnel of Korean businesses to stay in Vietnam for long periods and short-term business trips. In addition, the authorities will consider applications of investors wishing to enter Vietnam to seek investment opportunities.
Since the outbreak of the epidemic in Vietnam, about 8,500 foreign experts and staff have been waiting to enter Vietnam to continue working, of which 2,000 are working on key national projects.
As of March 15, based on local residents’ statistics, 8,459 foreign experts and employees came to Vietnam, of which 2,000 people were working on key projects such as the metro line. Cat Linh-Hadong (100 people), Vinh Tan. 1 thermal power plant (76 people), LG Display project in Hai Phong city (200 people), Samsung Display Vietnam in Bac Ninh province (700 people) and Texhong Company Limited (77 people). In addition, Samsung Electro-Mechanics Vietnam Co., Ltd. and its partners in Thai Nguyen province are waiting for 150 senior experts and staff.
Currently, professionals, skilled workers, business managers and officials are allowed to enter the country but they must comply with national quarantine regulations. Earlier, at the height of the pandemic in early April, 700 South Korean engineers at Samsung Display, a supplier of Samsung Electronics and Apple, were exempt from the mandatory quarantine requirement to allow emergency preparations for screen maker for new smartphones.
Vietnam reopened flight routes to Korea, Japan on September 15
The Civil Aviation Administration of Vietnam (CAAV) has developed a plan to resume international routes, in the immediate future, those connecting Korea and Japan on September 15.
Accordingly, a total of 8 flights per week, 4 flights to Japan and 4 flights with South Korea.
All passengers boarding those flights to Vietnam are subject to mandatory quarantine for 14 days to prevent transmission of COVID-19.
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