News Bulletin 58 - Week 2, April 2021

There were more chatters last week regarding reopening Vietnam's skies to normal air travelers. This is obviously the hope of many businesses in the tourism and travel industries in Vietnam. Indications are that by September, vaccinated foreign passengers and who have tested negative before their travel to Vietnam will be allowed into the country without quarantine requirements.

It was reported in the news last week that Vietnam was looking to ease restrictions in order to attract more foreign investments in the high-tech industry, an area that the government committed to attract more foreign investments. One of the restrictions under consideration to be eliminated is the requirement to have 1% of revenue must be allocated to research and development.

The past week spotlight

Thousands of hectares of industrial zones approved in first quarter

As of the end of February 2021, there were 370 IZs across the country, covering an area of 115,200ha, according to the Ministry of Planning and Investment. 328 of these are operating outside economic zones (EZs), 24 are in coastal EZs, and eight are in border EZs. They create around 3.65 million direct jobs in total.

Dozens of industrial zone projects in 13 cities and provinces covering have been approved in the first quarter, promising thousands of hectares of new space for investors over the coming years.

See full details here

Let’s look at some other related financial and business news during the past week:

1. A comparison of Vietnam, China and U.S. economic structures

The percentage of Vietnam’s exports to the United States against her total exports increased from 19.7% in 2010 to 23.2% in 2019, and to China from 10.7% in 2010 to 15.7% in 2019. Meanwhile, the percentage of Vietnam’s imports from the United States against her total imports rose from 4.4% in 2010 to 5.7% in 2019 and from China from 23.8% in 2010 to 29.8% in 2019.

See full details here

2. Danang to invest over VND15 trillion to improve environment

To rationally and economically exploit natural resources, minerals, water sources and forests; ensure an ecological balance and proactively respond to climate change, the municipal People’s Committee of Danang has approved the project “Make Danang become the environment city” in 2021 – 2030” with a total budget of VND15,546 billion.

See full details here

3. Binh Phuoc to expand IP space

Binh Phuoc Province will build four new industrial parks and expand three existing ones by 2030. Three of the new ones will come up in the Hoa Lư Border Gate Economic Zone, a 28,000ha investment magnet situated in Lộc Ninh District along the Cambodia border. They will range in size from 300ha to 425ha.

See full details here

4. HCMC bourse temporarily suspends listing of new stocks

In recent months, with investors flocking to trade in humongous numbers, the 20-year-old system used by the country’s main bourse has been unable to cope. The Ho Chi Minh Stock Exchange has suspended new listings from April 8 to fix its overloaded trading system.

All approved listings will temporarily go to the Hanoi Stock Exchange and return to HoSE after the system is upgraded.

See full details here

5. Vietnamese carriers are eagerly awaiting the government's green light to take to the skies again

Tourism companies see a proposed plan to gradually resume international flights as a necessary first step for their sector to recover from the pandemic-inflicted slump.

See full details here

6. Competitive capacity key to gaining benefits from CPTPP and FTAs: experts

Two years since the CPTPP came into effect, Việt Nam had seen strong growth in exports to some CPTPP member countries, but not all. Many businesses affirmed that their poor competitiveness was hindering them from gaining opportunities from the CPTPP and new agreements.

See full details here

7. Vietnam to attract more foreign investment in high-tech industry

Vietnam’s high-tech industry has seen a new investment wave. Last week, the northern coastal province of Quang Ninh held a ceremony to grant a licence for Jinko Solar Technology Ltd of Hong Kong to invest in a photovoltaic cell technology project worth 500 million USD.

See full details here

8. Autumn bloom forecast for reopening of Vietnam’s skies

The business community has shown warm appreciation to the phased scheme to reopen regular international flights for Vietnamese nationals and foreigners from July. The scheme was submitted by the Civil Aviation Authority of Vietnam (CAAV) last week to the Ministry of Transport

See full details here

9. Vietnam unveils tools for taxing and tracking Big Tech

Vietnam is proposing a pair of regulations that would compel global tech players such as Alibaba and Google to hand over more taxes and data, in a move to increase government oversight in one of the world's fastest-growing digital markets.

See full details here

10. Tourism recovery can take off alongside flights resumption

Tourism companies see a proposed plan to gradually resume international flights as a necessary first step for their sector to recover from the pandemic-inflicted slump.

See full details here