Speakers at last week’s conference noted that dozens upon dozens of multinationals are interested in the healthcare PPP model in Vietnam. Photo: Chi Cuong At last week’s conference on the issue, hosted by VIR , Deputy Minister of Planning and Investment Tran Duy Dong said that Vietnam’s healthcare sector is facing a number of big issues, including rising infectious and non-communicable disease figures, hospital overload, and an ageing population. The pandemic has also revealed some weaknesses in the sector. “To further improve healthcare service quality and meet demand, mobilising financial resources for new development of infrastructure and medical equipment is a key requirement,” he noted. For the past five years, the government has looked to strengthen the implementation of a model for public-private partnerships (PPPs) for the public sector, including in healthcare services. However, according to VIR’s editor-in-chief Le Trong Minh, the picture of such investment in … [Read more...] about More favourable rule system urged for healthcare PPPs
Tax expenditure
This year’s economic growth target of 6 percent-6.5 percent huge challenge
Deputy Prime Minister Le Van Thanh speaks at the third session of the 15th National Assembly On the morning of May 23, at the opening session of the third session of the 15th National Assembly, Deputy Prime Minister Le Van Thanh delivered a report on an additional assessment of the results of the implementation of the socio-economic development plan and the state budget in 2021 and that in the first months of 2022. Regarding additional results in 2021, the Government stated that 5/12 targets failed to meet the set goal. For instance, the gross domestic product growth rate reached 2.58 percent compared to the target of about 6 percent. Plus, GDP per capita reached US$3,680 against the target of $3,700, the contribution of total factor productivity to growth is about 37 percent compared with the target of 45 percent-47 percent, and the percentage of poor households with a multidimensional approach decreased by 0.52 percentage points compared to the target of 1-1.5 percentage … [Read more...] about This year’s economic growth target of 6 percent-6.5 percent huge challenge
Gasoline prices surpass $1.3 for the first time
The price of popular gasoline RON 95 and biofuel E5 RON 92 both rose 2.3 percent to VND30,650 and VND29,630, respectively. ($1 = VND23,165) But diesel, kerosene and mazut cost 3.1-4.7 percent less. This is the first time ever gasoline prices in Vietnam surpassed the VND30,000-mark. Monday's was the fifth hike since April 12 without a downward adjustment in between. Compared to the beginning of 2022, a liter of gasoline now costs 28 percent more, despite the government's environmental tax cut. The tax, a flat VND4,000 a liter, has been halved since April 1. The Ministry of Industry and Trade and the Ministry of Finance, which are responsible for regulating gas prices, have attributed the increase in domestic prices to limited supply on the global market following Western embargoes on Russian oil and the U.S.' declining oil reserves. On the global market, oil prices surged by 0.4 percent to $110.28 a barrel Friday. At the time of writing, its prices are hovering above … [Read more...] about Gasoline prices surpass $1.3 for the first time
SCIC posts lower profits due to affiliated company losses
Passengers board a Vietnam Airlines jet. The airline's loss has contributed to the contraction of SCIC's consolidated profit in 2021. — Photo nld.com.vn The State Capital Investment Corporation (SCIC) has recently published its financial report for 2021, announcing consolidated revenue of around VND10.1 trillion (US$438 million), 50 per cent higher than the figure for 2020. Of the amount, VND4.3 trillion came from dividends and distributed profits, VND1.9 trillion from capital sales and VND1.4 trillion from banking deposit and bond interests. The returned provision for devaluation in investments also contributed VND3.4 trillion to the figure. Despite high revenue, SCIC earned a consolidated after-tax profit of just VND3.6 trillion last year, a 10-year low, due to losses from its affiliated companies. Notably, SCIC held 31.14 per cent ownership of the national flag carrier Vietnam Airlines. By late Q3/2021, Vietnam Airlines equity fell to about VND1.5 trillion, leading to a … [Read more...] about SCIC posts lower profits due to affiliated company losses
Việt Nam joins US-led Indo-Pacific Economic Framework for Prosperity
Vietnamese Prime Minister Phạm Minh Chính gave the speech at the launch of the Indo-Pacific Economic Framework for Prosperity on Monday. — VNS Photo HÀ NỘI — Việt Nam will join 12 countries in the region in the Indo-Pacific Economic Framework for Prosperity (IPEF) as US President Joe Biden launches the initiative on Monday during his visit to long-term ally Japan. The formal rollout of the IPEF was held in a hybrid format in Tokyo – with US President, Japanese Prime Minister Fumio Kishida, and Indian Prime Minister Narendra Modi taking part in person, and leaders from Australia, Brunei, Indonesia, Malaysia, New Zealand, Philippines, Singapore, South Korea, and Thailand joining remotely. The White House said this economic framework with an initial 13 countries represents 40 per cent of global GDP. The future of the global economy will be largely written in the Indo-Pacific, which covers half the population of the world and more than 60 per cent of the global GDP, US President … [Read more...] about Việt Nam joins US-led Indo-Pacific Economic Framework for Prosperity
Vietnam Airlines revenue recovers in Q1
Vietnam Airlines had better net revenue in Q1. — Photo courtesy of the airline The national flag carrier Vietnam Airlines announced net revenue of VND11.6 trillion (US$504.3 million) in Q1, strong growth compared to the same period last year. The airline's revenue recovered, but its equity was still VND2.16 trillion as of March 31, 2022 In the revenue structure, domestic transportation revenue grew by 96.5 per cent and international transportation increased by 71 per cent. According to the financial report, the net revenue increased by 56 per cent over the same period last year, but Vietnam Airlines still suffered a gross loss of nearly VND1.6 trillion. Compared to the same period, gross losses decreased by 47 per cent. This year, the firm had a further income of VND121 billion dong from the liquidation of aircraft and the sale and leaseback of aircraft engines. Deducting expenses, Vietnam Airlines' net loss from business activities was VND2.7 trillion, the pre-tax loss … [Read more...] about Vietnam Airlines revenue recovers in Q1
High inflationary pressure put GDP 6.5% growth target at risk: Gov’t
The Government is committed to taking timely measures to ensure macroeconomic stability. The high inflationary pressure amid the recovery of domestic demand is putting Vietnam’s GDP growth target of 6-6.5% for this year at risk. Overview of the session. Source: quochoi.vn Deputy Prime Minister Le Van Thanh gave the remarks at the third session of the 15 th National Assembly held today [May 23]. According to Thanh, the Vietnamese economy has been on a positive recovery track in the first months of 2022 under the new normal. Total budget revenue for the first four months grew by 15.4% year-on-year to VND657.4 trillion ($28.4 billion), while the consumer price index (CPI) expanded by 2.64%, the lowest four-month period growth in the past five years. As of mid-May, credit growth stood at 7.2% against late 2021 and up 17% year-on-year, which showcases the recovery of economic activities, along with greater efforts from the Government to restore discipline … [Read more...] about High inflationary pressure put GDP 6.5% growth target at risk: Gov’t
Chief economists outlook warns of dire human consequences from the fragmentation of the global economy
GENEVA — The World Economic Forum’s Community of Chief Economists expects lower economic activity, higher inflation, lower real wages and greater food insecurity globally in 2022, pointing to the devastating human consequences of the fragmentation of the global economy. Reversing previous expectations for recovery, the majority of respondents to the latest survey expect only a moderate economic outlook in the United States, China, Latin America, South Asia and Pacific, East Asia, sub-Saharan Africa and the Middle East and North Africa in 2022. In Europe, the majority expect the economic outlook to be weak. The choices of both business and government are expected to lead to greater fragmentation in the global economy and unprecedented shifts in supply chains, creating a perfect storm of volatility and uncertainty. These patterns are expected to create further difficult trade-offs and choices for policy-makers, and – without greater coordination – shocking human costs. These are the … [Read more...] about Chief economists outlook warns of dire human consequences from the fragmentation of the global economy
Việt Nam joins Indo-Pacific Economic Framework for Prosperity
Vietnamese Prime Minister Phạm Minh Chính gave the speech at the launch of the Indo-Pacific Economic Framework for Prosperity on Monday. — VNS Photo HÀ NỘI — Việt Nam will join 12 countries in the region in the Indo-Pacific Economic Framework for Prosperity (IPEF) as US President Joe Biden launches the initiative on Monday during his visit to long-term ally Japan. The formal rollout of the IPEF was held in a hybrid format in Tokyo – with US President, Japanese Prime Minister Fumio Kishida, and Indian Prime Minister Narendra Modi taking part in person, and leaders from Australia, Brunei, Indonesia, Malaysia, New Zealand, Philippines, Singapore, South Korea, and Thailand joining remotely. The White House said this economic framework with an initial 13 countries represents 40 per cent of global GDP. The framework will focus on four key pillars – Connected Economy (including rules on digital economy, standards on cross-border data flows and data localisation, online privacy, … [Read more...] about Việt Nam joins Indo-Pacific Economic Framework for Prosperity
Agro-product providers and exporters defy impact of sharp increase in fertiliser prices
Agro-product providers and exporters defy the impact of a sharp increase in fertiliser prices Since early this year, fertiliser prices consecutively broke records with the latest price between VND16-18 million ($700-780) per tonne – the highest level in the past 50 years, according to the Department of Plant Protection under the Ministry of Agriculture and Rural Development (MARD). The selling price of URE Ninh Binh and Ha Bac climbed to VND17.5 million ($760) per tonne, while diammonium phosphate fertiliser registered the biggest rise to reach VND22 million ($950) per tonne. An MARD report showed that in 2021, Vietnam imported 5.1 million tonnes of fertilisers, and in the first four months of 2022, the figure was over 880,000 tonnes. Nguyen Tri Ngoc, vice chairman of the Vietnam Fertiliser Association said, “The fertiliser price hike is attributed to the inadequate supply of these products because of the Russia-Ukraine conflict. Russia and Belarus make up nearly half of the … [Read more...] about Agro-product providers and exporters defy impact of sharp increase in fertiliser prices