The article said the leaders of the Communist Party of Vietnam (CPV) earmarking 119 billion USD for infrastructure and committing to increasing the private sector’s contribution to the gross domestic product from 42 percent to 55 percent by 2025 have attracted foreign investors and resulted in upbeat signals in the finnancial market.
It cited an example of the VanEck Vectors Vietnam exchange-traded fund, saying it is up 9 percent since the Congress wrapped on February 2. In addition, Dragon’s United Kingdom–listed Vietnam Enterprise Investments fund has gained 17 percent this year.
Pouring cash into improvements should enable the government to achieve its 6.5 percent to 7 percent annual growth targets while boosting profits for appropriately positioned companies, said Bill Stoops, chief investment officer at Dragon Capital in Ho Chi Minh City, as quoted by the article.
On the country’s property potential, Nick Niziolek, head of global strategies at Calamos Investments, was quoted as saying that “New household formation in Vietnam is running at 80,000 to 90,000 a year, and supply at 60,000 to 70,000.” “That’s an exciting long-term opportunity,” he added.
Regarding commercial and digital infrastructure, it quoted Sean Fieler, chief investment officer at Equinox Partners as saying that “Vietnamese engineers cost less than in India, and thousands of them are learning Japanese.” According to him, FPT Vietnam, a diversified IT provider with a burgeoning outsourcing business in Japan, saw its shares jumping by a third this year and can run further.
With all the country’s positives, U.S. investors might have reason to edge back into Vietnam anyway, the article concluded.
Bac Giang province has been gathering strength to fight the Covid-19 outbreak for one month, vowing to stamp out the outbreak by the end of June.
Le Anh Duong, Chair of Bac Giang provincial People’s Committee
Commenting about the outbreak, Le Anh Duong, Chairman of Bac Giang provincial People’s Committee said that local people had never faced such an incident.
“Covid-19 has caused industrial production stagnation and affected the entire socio-economic life. It has coincided with the farm produce harvesting season and general elections. It has caused foreign investment momentum to slow down,” Duong said.
“This is an unprecedented big challenge. Local people for the first time feel a threat to their safety and health,” he said.
How can Bac Giang persuade the ‘eagles’ (‘eagle’ referred to big foreign investors and manufacturers) such as Apple, Samsung and Foxconn to halt their production?
When the pandemic began attacking industrial zones, what worried us the most was that it would affect production and investment, and Bac Giang’s position in the global supply chain as well.
Fighting the pandemic has been a top priority in our strategy. We decided to close the industrial zones (IZs), but not to just stamp out the outbreak.
Before closing the IZs, we had a meeting with all enterprises. Investors who were overseas at that moment also attended the online meeting.
Some said it was necessary to close IZs immediately, while others disagreed, fearing they would lose orders and clients, or would be fined for slow delivery and lose competitiveness.
I told them that it was necessary to suspend production to gather strength to fight the pandemic, to deal with the urgent problem first. During the closure time, we will join forces to design new production models. I said it would be impossible to maintain stable production amid the threatening outbreak. Investors all agreed with the solution.
No enterprise had a negative response on the night the official decision was released (May 18, 2021). Investors told international press agencies that they agreed with the solution put forward by the local government.
Foxconn, for example, issued a press release, affirming its support for the Bac Giang authorities’ solution and said that production capacity would not be affected by the temporary production suspension.
Bac Giang has been implementing its commitments that it made to investors It established a taskforce that joined forces with them to examine and check production scale, and Covid prevention capability of each enterprise in accordance with certain classification criteria.
The classification allows them to adjust the production model and restore production. Soon after the decision on resuming production in accordance with Plan 213, the provincial authorities set up a unit that defined the requirements for people going to work, and picking up workers going to work.
We give support to what businesses need. All enterprises answered our call and were unanimous in implementing the solution. This is unprecedented, if noting that the foreign investors in Bac Giang provinces have different nationalities, and different cultures and personalities.
You signed two decisions related to production activities just within one week. The first was the one on closing six enterprises in Van Trung IZs, and the second was the closure of four IZs. Bac Giang has lost VND2 trillion for each day of closure. Did you have to think carefully before making such decisions?
|Bac Giang province has been gathering strength to fight the Covid-19 outbreak for one month, vowing to stamp out the outbreak by the end of June.|
All of these were extremely important decisions. I and the leadership had to discuss very thoroughly before making decisions. We even had to ask for the Prime Minister’s opinion and the National Steering Committee for Covid-19 Prevention and Control.
At first, the new hotspot only involved six small companies leasing workshops in Van Trung IZ. So, it was obviously necessary to close the enterprises, and there was no difficulty with the decision.
However, we had to carry out a large-scale testing campaign and screen all workers in the IZ. Our testing capability could not meet the high number of 90,000 workers in the IZ.
It was much more difficult to make the second decision – closing four IZs at the same time. At that time, the outbreak, after occurring in Van Trung and Quang Chau IZs, began spreading to nearby IZs. Meanwhile, infections were not found in Dinh Tram and Song Khe – Noi Hoang.
Before releasing the decision, we had to think about many things, including the benefits of investors and enterprises, the benefits of workers, and the benefits of the entire province. There were many things to weigh, but I put the safety of workers as a top priority and persuaded enterprises with that principle.
A Foxconn vendor in Hong Kong via Zoom said that businesses’ priorities were fighting against the pandemic and stabilizing the economic situation, while putting businesses’ benefits at a lower level of priority.
However, we anticipated that a lot of problems could arise after the decision was released. If 67,000 migrant workers had left Bac Giang province for their home villages after factories suspended operation, they could have brought the virus everywhere.
Therefore, just one day later, the provincial authorities called on workers to stay in Bac Giang. The province also sent a document to enterprises telling them to keep their workers there and cooperate with local authorities to have medical tests. The province promised to ensure their normal lives.
On the afternoon of the same day, we had a meeting with enterprises and reported to the Prime Minister at night. At 0 am, we declared isolation for the entire Viet Yen District and 4 IZs.
This was the most difficult decision.
So, the released Plan 213 on the resumption of the production activities after 10 days of closing four industrial zones can be seen as Bac Giang’s promise to investors?
Yes. When deciding to close four IZs, we did not say exactly when the IZs would become operational again. When investors asked about this, I said we aimed to reopen them after two weeks. And we kept the promise. After two weeks, the enterprises began operating again in accordance with a roadmap.
To be continued…
|SK Investment Vina purchased around 5 per cent of additional Imexpharm stocks|
Accordingly, two Vinacapital funds namely VOF Investment Ltd. and Vietnam Ventures Ltd. will transfer 5.18 per cent of its shares to SK Vina III, raising the latter’s ownership at IMP from 24.02 to 29.2 per cent.
Following the transfer, the foreign ownership limit at Imexpharm remains unchanged at 49 per cent.
SK Investment Vina III is a member fund of SK Group, which has investments in Masan and Vingroup.
Total net revenue and income in the first five months of 2021 of Imexpharm were VND508.2 billion($22.1 million), which made up 33.2 per cent of the annual plan and was up 11.6 per cent on-year. Net revenue in the first five months reached VND502.2 billion ($21.83 million) and increased by 11.2 per cent compared to the corresponding period of the previous year. Imexpharm products accounted for 97 per cent of its revenue structure. Besides this, revenue from franchising and sales from other products decreased rapidly compared to last year.
Pre-tax profit accumulated until the end of May was VND97.6 billion ($4.24 million) and met 33.7 per cent of the annual target. However, it was up an impressive 26.1 per cent on-year.
The company predicted that in the coming months, sales expenses would slowly increase due to the fourth wave of the pandemic in the northern provinces and Ho Chi Minh City. Therefore, Imexpharm has reviewed sales support and marketing activities to ensure that the company fully obeys the pandemic prevention measures issued by the Ministry of Health and provincial governments.
By Thanh Van
Jakarta (VNA) – The World Bank’s Board of Executive Directors on June 16 approved a 800-million-USD loan to support reforms of Indonesia’s investment and trade policies and to help accelerate the country’s economic recovery and transformation .
The loan is intended to aid Indonesia’s ambitious reform programme to attract investment and increase the country’s economic competitiveness, said Satu Kahkonen , WB Country Director for Indonesia and Timor-Leste.
“These reforms have the potential to support an economic transformation away from commodities and towards higher value-added sectors. This could provide a much-needed boost to the post-pandemic economic recovery.”
High barriers to investment and trade have limited Indonesia’s ability to attract export-oriented foreign direct investment, reduced its integration into the global economy, and increased the cost of food in the country. These limitations also have slowed the growth of manufacturing and non-commodity sectors. The lion’s share of jobs in the past decades have been created in the commodities and low-productivity service sectors, which often pay below middle-class wages.
As a result of the pandemic, Indonesia has entered its first recession in two decades. This has exacerbated the challenges the economy is facing in expanding to more sophisticated sectors to help create better-paying, higher-productivity jobs./.
Hanoi (VNA) – President Nguyen Xuan Phuc on June 16 held separate meetings with ambassadors of New Zealand, Argentina, Pakistan and Romania who came to present their credentials.
At a reception for Ambassador of New Zealand Tredene Cherie Dobson, the President said he hopes that the ambassador will raise initiatives to promote cooperation between the two countries in the time ahead, especially when the bilateral relationship is developing intensively and extensively in the spirit of the strategic partnership.
He called on New Zealand to share its experience in COVID-19 combat, and suggested the two sides step up high-level visits after the pandemic is put under control.
The two countries also should foster trade ties, particularly the export of fruits, Phuc said, suggesting New Zealand further assist Vietnam in education, especially English language teaching.
Vietnam wishes to tighten coordination with New Zealand and relevant parties in realising the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and accelerating the ratification and implementation of the Regional Comprehensive Economic Partnership (RCEP) in the coming time, he added.
The ambassador pledged to make every effort to contribute to strengthening the bilateral relations, and support Vietnamese firms to access the New Zealand market.
Meeting with Argentina’s Ambassador Luis Pablo Maria Beltramino, Phuc wished that the two countries will enhance all-level delegation exchanges and bring into full play dialogue and cooperation mechanisms to advance the bilateral comprehensive partnership to a new high.
The President called for joint efforts to press ahead with negotiations of a free trade agreement between Vietnam and the Southern Common Market (Mercosur), and suggested both sides maintain their mutual support and cooperation at multilateral forums.
The ambassador said he hopes to coordinate with Vietnamese agencies to elevate the bilateral ties to a new level.
At a meeting with Pakistani Ambassador Samina Mehtab, the State leader expressed his hope that the diplomat will have measures to forge economic and trade ties between the two sides.
Vietnam and Pakistan should optimise their strengths and beef up cooperation in trade, while tightening their collaboration at regional and multilateral forums, the President suggested.
Mehtab said she hopes that Vietnam would serve as a bridge between Pakistan and ASEAN, and the two countries will intensify tourism cooperation.
Receiving Romanian Ambassador Cristina Romila, Phuc said Vietnam always attaches importance to the traditional friendship with Romania, and bears in mind the country’s valuable support during Vietnam’s struggles for national independence and national development.
He also praised Romania for its efforts in pushing ahead with the signing of the EU-Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement (EVIPA) when Romania held the rotating presidency of the Council of the European Union.
Phuc asked the ambassador to convey his invitation to the Romanian President to visit Vietnam at an appropriate time.
Romila, in reply, affirmed that Vietnam remains Romania’s important partner, and congratulated the Southeast Asian nation on its achievements in the pandemic fight./.