A recent study shows that Vietnam is in the top 16 most successful emerging economies in the world, with many prospects to narrow the gap with developed countries amidst the COVID-19 epidemic, according to the Economist.
Regarding recovery of the economy caused by COVID-19, last week, Prime Minister Nguyen Xuan Phuc chaired a meeting of the Government’s permanent members to discuss draft development plans for coming years, asking for effective and feasible solutions to minimise COVID-19-caused losses.
The past week spotlight
PM requests effective solutions for economic recovery in coming years
Prime Minister Nguyen Xuan Phuc (standing) chairs the meeting of the Government’s permanent members on August 19 (Photo: NDO/ Tran Hai)
Prime Minister Nguyen Xuan Phuc on August 19 chaired a meeting of the Government’s permanent members to discuss draft development plans for coming years, asking for effective and feasible solutions to minimise COVID-19-caused losses and recover the economy in both short and medium terms.
The event looked into the draft socio-economic development plan and State budget estimates for 2021, the draft financial-State budget plan for 2021-2023, along with the draft medium-term socio-economic development plan and public investment plan for 2021-2025.
PM Phuc stressed that economic development must be ensured amid the COVID-19 pandemic so as to provide jobs and guarantee people’s livelihoods.
Let’s look at some other related financial and business news during the past week:
1. 80,000 tonnes of duty-free rice to enter the EU market each year
Vietnam will export 80,000 tonnes of rice to the EU each year including 20,000 tonnes of not-yet-de-husked rice, 30,000 tonnes of de-husked rice and 30,000 tonnes of fragrant rice.
According to the European Commission (EC), thanks to the effectiveness of the EU-Vietnam Free Trade Agreement (EVFTA), Vietnam has a tariff-free quota of 80,000 tonnes of rice to export to the EU per year.
More concerted efforts are being made to lure new high-quality investments from Japan and turn Vietnam into a real hub for manufacturers as investors are looking to relocate their factories to avoid risks and diversify markets.
3. Vietnamese coffee industry seeking growth through EU trading pact
Despite being one of the world’s leading coffee exporting countries, Vietnam has not delved deep into processing to raise the added value of the popular product. Nguyen Trung Kien from the Institute for Policy and Strategy for Agriculture and Rural Development discussed with VIR’s Song Anh how Vietnam can develop and add value to coffee to benefit from the opportunities stemming from the EU-Vietnam Free Trade Agreement.
4. Vietnam takes the lead in ASEAN’s digital evolution
With its great potential in IT, Vietnam as ASEAN chair has been making efforts together with other member states in boosting the application of high technologies to adapt to the Fourth Industrial Revolution, which is sweeping regionwide.
6. Taxes lost from e-commerce sector during COVID-19
The COVID-19 pandemic has become a golden opportunity for e-commerce trading floors, as well as social networks such as Facebook. However, the country has lost billions of dong in tax revenue due to e-commerce, as there are no specific regulations on the sector.
7. FDI inflows from Europe yet to shift into Vietnam
Foreign direct investment (FDI) inflows from Europe will initially be slow to move into Vietnam following the implementation of the EU-Vietnam Free Trade Agreement (EVFTA) which entered into force on August 1.
10. Vietnam among top 16 most successful emerging economies in the world
A new study shows that Vietnam is in the top 16 most successful emerging economies in the world, with many prospects to narrow the gap with developed countries amidst the COVID-19 epidemic, according to the Economist.
Few emerging markets will grow at all – perhaps China, Egypt and Vietnam. But because advanced economies will probably retreat even faster, the gap between them will narrow.
Following the Government's Resolution No. 178/NQ-CP dated 12/12/2020, on 23/02/2021 the General Department of Customs (“GDC)” issued Official Letter No. 879/TCHQ-TXNK guiding the tax treatment for imports being materials used for export-production in which part of the production process is being outsourced to 3rd party vendor.
On 30 December 2020, The Government promulgated Decree No. 152/2020/ND-CP regarding foreign employees working in Vietnam (“Decree 152”). Decree 152 is effective from 15 February 2021 and replaces Decree No. 11/2016/ND-CP (as amended by Decree No. 140/2018/ND-CP).
On 25/01/2021, the Ministry of Finance issued Circular no. 07/2021/TT-BTC ("Circular 07") providing guidance on the deadline to submit Certificate of Origin (“C/O”)(1) for goods imported into Vietnam under EU-Vietnam Free Trade Agreement (“EVFTA”).