Weekly News Bulletin - No. 03, August 2022

The UK – Vietnam Free Trade Agreement (UKFTA) is opening significant opportunities for enterprises from both sides to enhance cooperation in green energy transition and digital transformation as Vietnam strives to achieve net zero emissions by 2050 and embrace new drivers for economic growth. The country was making strong efforts towards the goal of becoming a high-income country by 2045, to which digital transformation and energy transition are considered launch pads for the economy.

Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan also called on the UK to provide support to Vietnam in technology transferring and management policies and models to promote industrial development in the era of digital transformation and Industry 4.0 whilst being in the process of transition toward renewable energy.

Latest news on Vietnam’s FDI: FDI enterprises continue to increase investment capital in Vietnam, expand existing projects and show their confidence in the economy and current investment environment. Vietnam's FDI inflows acceleration is forecast to persist, indicating a prosperous future, thanks to the wave of investment and shifting the global supply chain.

Accordingly, realized FDI increased and reached USD 11 billion, the highest value for the same period in the past 5 years. Whilst adjusted capital continued to rise sharply, series of projects have been awarded investment registration certificates in Vinh Phuc, Hai Phong, and Quang Ninh. Nonetheless, foreign enterprises still face many challenges when applying for investment licenses.

Last week highlight

Foxconn, a major enterprise in the production and supply chain of Apple, has decided to invest US 300 million in building a new factory in Bac Giang Province, northern Vietnam. When the facility is put into operation, the technology group is expected to hire about 30,000 workers. To diversify the production and supply chain and avoid dependence on a certain market, many companies in Apple's supply and production chain have moved part of their production from China to Vietnam since early 2020. Among them, Foxconn moved part of its production of iPad and AirPods to Quang Chau Industrial Park in Bac Giang Province.

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

1. Not only "broken" due to inflation, the global economy faces a series of turbulences

According to the IMF, the global economy has had a negative quarter since the Covid-19 pandemic broke out two years ago...

This decline of the global economy took place in the context of a series of ups and downs, from escalating inflation in the West to the Zero-Covid epidemic prevention policy in China.

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2. FDI accelerates inflows into Vietnam: Welcoming a new wave of investment

Doanh nghiệp (DN) FDI tiếp tục tăng vốn đầu tư vào Việt Nam, mở rộng dự án hiện hữu cho thấy niềm tin của họ vào nền kinh tế, môi trường đầu tư hiện nay. Diện mạo tích cực của dòng vốn ngoại được dự báo còn kéo dài trong thời gian tới, nhờ làn sóng đầu tư, chuyển dịch chuỗi sản xuất toàn cầu.

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3. Two thirds of Southeast Asian firms face ransomware attacks: survey

Enterprises in Southeast Asia are on the radar of cybercriminals with 67 percent of them confirming that they have become victims of ransomware attacks, according to the latest survey by cybersecurity firm Kaspersky.

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4. UKVFTA promotes cooperation in digital transformation, energy transition

Deputy Minister of Industry and Trade Nguyễn Sinh Nhật Tân also called on the UK to provide support to Việt Nam in technology transferring and working out appropriate management policies and models to promote industrial development in the era of digital transformation and Industry 4.0 and in the process of transition toward renewable energy.

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5. Vietnam emerges as focus of Japan’s post-pandemic supply chain diversification

Japan will give post-COVID-19 support to over 100 overseas Japanese-invested projects, including more than 40 in Vietnam, but the Southeast Asian country needs to overcome certain challenges facing them, a Japanese trade official said.

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6. Vietnam ready for talks with US on tax evasion investigation into Vietnamese steel pipes

Vietnam is willing to hold trade talks with the United States to timely solve arising problems regarding a U.S. anti-circumvention investigation into steel pipe products imported from the Southeast Asian country.

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7. Vietnam to cut 23,390 tonnes of CO2 emissions per year with French solar power project

French oil company TotalEnergies will provide industrial property developer KCN Vietnam with solar panels which are expected to help the Southeast Asian country cut 23,390 metric tons of carbon dioxide emissions per year, according to Nikkei Asia.

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8. Milk tea a 'craze' in Southeast Asia

Singapore’s The Straits Times recently published research showing that milk tea has become a “craze” in Southeast Asia over recent years. Indonesia, Thailand, and Vietnam top the list of regional countries consuming the beverage. Vietnamese people spend about $362 million on milk tea every year.

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