Weekly News Bulletin - No. 01, November 2023

Vietnam will remain the region’s fastest growing digital economy between 2023-2025, according to the 8th edition of the e-Conomy SEA Report published on November 7 by Google, Temasek and Bain & Company.

The main contributors to Vietnam’s digital economy include e-commerce which will grow 22% to reach 24 billion USD in 2025, online tourism (up 21% to 7 billion USD) and online media (up 15% to 7 billion USD). The country also records the fastest growth for digital financial services (DFS) in the region, the report said. Digital payments continue to grow in the country, driven by strong support from the Government, investment from commercial banks, and the popularity of QR codes.

Many enterprises from the US are planning to make or expand investments in Vietnam, showing their intention to turn the Southeast Asian country into one of their important bases. At their recent meetings with Prime Minister Pham Minh Chinh, Microsoft, Gates Foundation, SpaceX, Coca-Cola, and Pacifico Energy have revealed their investment and business plans in Vietnam.

SpaceX, a supplier of spacecraft, satellite launch and satellite communications services, is planning to invest about 500 million USD in Vietnam. It hopes to be licensed to provide the satellite internet service of Starlink in the country. Amkor Technology has poured 1.6 billion USD into a semiconductor factory in northern Bac Ninh province. This plant is the biggest and most modern of the company around the world. The firm will also invest 1.6 billion USD into another plant in Bac Ninh between now and 2035.

Last week highlight

An official circular on measuring greenhouse gas emissions (GHG) is expected to be released this November, taking Việt Nam a step closer to its target of net-zero emission in 2050. The circular, led by the Ministry of Industry and Trade (MoIT), will be followed by training courses for businesses to comply with GHG control, in order to limit the carbon footprints throughout the supply chain. The measurement, reporting and verification of GHG mitigation will be mandatory in 2025 for applicable industries including steel, cement, aluminium and fertiliser production.

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Let’s look at some other key financial and business headlines during the past week

  1. US Treasury maintains stance of not listing Việt Nam as currency manipulator
  2. Vietnam's digital economy grows fastest in Southeast Asia
  3. Vietnam attractive to Dutch semiconductor companies: Dutch vice-minister
  4. Vietnam sets 2024 GDP growth target at 6-6.5%
  5. Lawmakers propose higher state capital ratio in PPP projects
  6. US firms push ahead with investment plans in Vietnam
  7. Hanoi launches $4.2 billion smart city project
  8. Hai Phong’s Nam Dinh Vu industrial zone boasts special attraction
  9. 76% of Vietnamese consumers optimistic about their finances for next year
  10. Apple supplier Luxshare bumps up Vietnam investment by $330M