Investment

The resettlement area for Long Thanh Airport is coming along slowly The Long Thanh International Airport project is one of the most important transport projects in southern Vietnam for the local and regional socioeconomic development, promoting tourism, and facilitating trade activities. However, since 2018, only 47 per cent of the VND22.85 trillion ($993.7 million) allocated for the airport’s resettlement project has been disbursed and land clearance work has only reached 50.7 per cent of the plan, with nearly 1,250 hectares remaining for handover within 2021. At last week’s online conferences on socioeconomic development and public investment in 2022 between the Ministry of Planning and Investment (MPI) and the country’s three regions, the People’s Committee of Dong Nai, where the project is located, proposed several measures for the MPI to accelerate the project. In particular, Chairman of Dong Nai People’s Committee Cao Tien Dung proposed cutting two sub-projects on building …

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The private sector will be integral in Vietnam's recovery from COVID-19. Photo: baodautu.vn The Vietnam Country Private Sector Diagnostic (CPSD) report, by the International Finance Corporation (IFC) and the World Bank, says while the private sector has played a frontline role in Vietnam’s outstanding development in recent years, it is now time to fully exploit the potential of the private sector to boost productivity growth so Vietnam can achieve its goal of becoming a high-income country by 2045. “The private sector has helped propel Vietnam to join the ranks of middle-income economies in just one generation, and the country was preparing for its next economic transformation when the COVID-19 hit,” said Kim-See Lim, IFC regional director for East Asia and the Pacific. “With another wave, it’s all the more imperative for Vietnam to help develop a dynamic, diversified, and innovative private sector for the post-COVID 19 recovery phase, as public resources become scarce.” The …

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Minister of Planning and Investment Nguyen Chi Dung. In the process of building planning, ministries, branches and localities have abolished plans on specific goods, products and services to simplify business conditions and create a fair investment environment. After more than two years of implementing the Planning Law effective from January 1, 2019, ministries, sectors and localities need to strengthen cooperation and share information among them to further improve the investment and business environment. Minister of Planning and Investment Nguyen Chi Dung spoke to the local media about this issue. After two years of implementing the Law on Planning, what positive changes have been made by ministries, sectors and localities in this field? Ministries, sectors and localities have actively implemented the Law on Planning and achieved many positive results. Regarding institutional improvement, documents guiding the implementation of the Law on Planning as well as laws and …

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By 2025, Hanoi envisions becoming a highly competitive city in the region by restructuring the growth model based on technological advancement and innovation. Despite the severe Covid-19 situation, Hanoi continues to set a high gross regional domestic product (GRDP) growth of up to 7.5% during the 2021-2025 period. Hanoi from above. Photo: Pham Hung Given the city’s estimated GRDP growth at around 3.97-4.54% in 2021, this would require Hanoi to achieve an average growth rate of 8.25-8.4% for the 2022-2025 period. This was among two growth scenarios in Hanoi’s socio-economic development plan for the 2021-2025 period, which have been signed off by Secretary of the Hanoi's Party Committee Dinh Tien Dung. In a less optimistic scenario, the city is expected to average economic growth of 6.5-7% during the period. This case is based on the fact that Vietnam could only contain the pandemic in the fourth quarter of 2021 and achieve herd immunity by the second half …

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Illustrative image (Photo: VNA) Hanoi (VNA) - The ADB has revised down Vietnam's 2021 GDP growth forecast from 6.7 percent to 3.8 percent due to a resurgence of the COVID-19 pandemic that has tightened the labour market, lowered industrial output, and disrupted agricultural value chains, according to a report released by the bank on September 22. At a virtual press conference, ADB country director Andrew Jeffries said the prolonged COVID-19 pandemic and extended lockdowns have weakened consumption and investment, hampering Vietnam’s growth prospects. “But the Vietnamese economy will bounce back if the COVID-19 pandemic is brought under control by the end of 2021 and 70 percent of the country’s population are vaccinated by the second quarter of 2022," he said. ADB remains bullish on the country’s prospects in the medium and long term. Growth could be aided by a revival of domestic demand, an acceleration in the disbursement of public investment, and an expansion to new export …

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Vu Thu Hang, head of sales with TNI Holdings Vietnam, enumerated several problems with land clearance at a recent webinar on "Identifying new trends in Industrial Park development." She said infrastructure investors were forced to pay site clearance compensation in stages and the process was prolonged even further because of legal and procedural hassles. This, in turn, interferes with enterprises' planning process and reduces project duration for investors, she added. "Businesses have lost many opportunities, especially when there were many orders that could not be met because site clearance did not happen in time," Hang said. A wave of factory relocations from China has heated up Vietnam's industrial real estate market generating high demand and increasing rentals. While investors are willing pay a premium to sign leases, complete licensing procedures and begin operations, land clearance continued to be a bottleneck for industrial real estate investment enterprises, Hang …

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ADB has reduced its GDP forecast for Vietnam but remains optimistic on its post-pandemic prospects The country’s economy is expected to grow 3.8 per cent this year and 6.5 per cent in 2022, according to the Asian Development Outlook (ADO) 2021 Update . Growth picked up in the first half of 2021, largely because of higher trade volumes, but slowed down in the second half of the year as the fourth wave of the pandemic took a toll on business and the labor market. Inflation will be muted in 2021 and 2022 due to the slower growth. “The prolonged COVID-19 pandemic and extended lockdowns have weakened consumption and investment, hampering Vietnam’s growth prospects," said ADB’s country director for Vietnam Andrew Jeffries. “But the Vietnamese economy will bounce back if the COVID-19 pandemic is brought under control by the end of 2021 and 70 per cent of the country’s population are vaccinated by the second quarter of 2022.” The COVID-19 pandemic is expected to drag down 2021’s …

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Manufacturers spread thin trying to reach capacity, Illustration photo After almost 70 days of halting production, Trung Son Corporation’s factory in Tan Tao Industrial Zone based in Ho Chi Minh City’s Binh Tan district has resumed production at 10 per cent capacity. Deputy general director Le Minh Tam said that even if the pandemic is managed and the economy runs as usual, the factory’s capacity will be able to reach only about 50 per cent. “The number of available workers is not as abundant as before the pandemic started,” said Tam. “There were 900 workers in the factory but 300 of them were infected with coronavirus during July and August and the remaining had to be isolated, making them worried and upset.” After receiving treatment, many of them left the city to go back to their hometowns. Tam said that the prolonged problems mean the links between the factory and workers is gradually being fragmented, even though the corporation still pays minimum wage and supports …

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HCM City to implement third relief package worth 7.3 trillion VND Ho Chi Minh City will carry out the third relief package worth 7.3 trillion VND (around 320.7 million USD) sourced from the local budget to help more households and informal workers affected by the COVID-19 pandemic, said Vo Van Hoan, Vice Chairman of the municipal People’s Committee. Speaking at a press conference held by the city’s Steering Committee for COVID-19 Prevention and Control on September 20, Hoan said given complicated developments of the COVID-19 pandemic in the city and prolonged social distancing, people face more difficulties due to job loss and having no income. Therefore, in addition to the social security relief packages of the city's Vietnam Fatherland Front Committee and other organisations and individuals, the municipal People's Committee continues to implement the third relief package to help ease difficulties for local residents. According to reports from the People's Committees of …

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At the signing ceremony between firms of Vietnam and the US (Photo: VNA) Hanoi (VNA) – The T&T Group on September 21 signed several MoUs and contracts with US partners within the framework of President Nguyen Xuan Phuc’s working trip to the US. The Vietnamese firm inked an MoU with UPC Renewables on working together in offshore and nearshore wind and solar power projects in several provinces in Vietnam with a combined capacity of nearly 1,500 MW and total investment of about 2.5 billion USD. T&T Group also sealed two deals in buying animal feed materials totalling 525 million USD. Accordingly, its agricultural arm T&T Agri will import 1.25 million tonnes of materials worth 450 million USD from The Delong Company next year. The other is an agreement in principle valuing at 75 million USD per year also between T&T Agri and US firm Valero. Meanwhile, the group's pharmaceutical arm, T&T Pharma reached a deal worth 23 million USD to be the sole distributor of …

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