News Bulletin 61 - Week 1, May 2021

ADB last week reported that Vietnam's economic growth may expand to 6.7% for the year 2021. This increase figure is consistent with forecasts from other sources and maintains Vietnam's steady and significant economic increase over the past decade. Meanwhile disbursement of foreign direct investment to Vietnam rose by 7% year on year in the first four months of 2021 to US$5.5 billion according to a report from the Ministry of Planning and Investment.

Vietnam's trade statistics showed trade turnover in the first four months of the year at US$104billion, a 10-year high. Industries showing the highest growth were industry and mining, light and craft industries, agricultural and forestry.

Related to Covid-19, there were fresh outbreaks in the northern region of Vietnam just before the long weekend holidays last week.  Quarantine for travelers arriving in Vietnam has been extended to 21 days from 14 days.

The past week spotlight

Viet Nam’s economic growth likely to expand 6.7 pct in 2021: ADB

Viet Nam’s economic growth is expected to rebound to 6.7 per cent this year despite the recent resurgence of the COVID-19 pandemic in nearby countries, and rise to 7 per cent in 2022, according to the Asian Development Bank (ADB).

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

1. Actual FDI to Vietnam rises nearly 7% in four-month period

Vietnam’s success in containing Covid-19 and applying Investment Law, which was passed in January 2021, are expected to further attract foreign investment.

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2. Vietnam records US$1.4 billion in trade surplus in first four months

Vietnam exported US$103.9 billion worth of goods in the first four months of 2021 while importing US$102.61 billion, registering a trade surplus of US$1.4 billion, according to the General Statistics Office.

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3. VN businesses pour money into advertising on social networks

Businesses are still spending a lot on advertising on social media and search engines. This trend has yet to change as many Vietnamese companies consider these the main channels to reach customers.

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4. Vietnam-UK FTA takes effect, protects intellectual property, grants access to public procurement

A free trade pact between Vietnam and the UK came into effect on Saturday, paving the way for 99 percent of tariffs to be eliminated after six years and for the kingdom to join a separate Trans-Pacific deal.

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5. Export-import turnover hits 10-year record

Vietnam's trade turnover in the first four months of 2021 reached $103.9 billion, a 10-year record high, according to statistics published by the General Statistics Office (GSO).

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6. Vietnam’s digital economy to hit US$52 billion by 2025

Vietnam’s digital economy will likely reach US$52 billion in value by 2025, according to the e-Conomy SEA 2019 report by Google, Temasek and Bain & Company.

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7. Multinational supply chain evades small industry

Foreign investments in Vietnam have the ability to change the economics of many of the country’s support industries, who are continually struggling to be part of the larger supply network.

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8. Cat Linh – Ha Dong metro line to begin commercial operation from May 1

Hanoi’s first metro service running from Cat Linh to Ha Dong will start commercial operation from May 1 as directed by the Prime Minister.

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9. HCM City’s CPI slightly up in April

The consumer price index (CPI) in Ho Chi Minh City inched up 0.001 percent in April against March, according to the city’s Statistics Office.

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10. Foreign partners help to lay foundations for Vietnam’s rise

In the 46 years since national reunification, Vietnam’s development has witnessed great strides with major contributions from foreign investment, which has been targeted to continue being an important driver of the domestic economy.

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