News Bulletin 62 - Week 2, May 2021

Vietnamese companies are now looking to expand their businesses overseas. As their businesses in the country mature, overseas markets represent tremendous potential for these companies to grow and attract more investments, particularly professional institutional investors.

An interesting news last week was the revelation that Japanese TV brands are pulling out of Vietnam, apparently unable to compete with South Korean brands.  That just shows how dominant Samsung and LG have become and the size and success of their investments in Vietnam.

The past week spotlight

SBV allows rescheduling of debt repayments for borrowers

Under Circular No 03/2021/TT-NHNN dated April 2, 2021, the central bank gives permission to financial institutions to reschedule debts with repayment obligations incurred from January 23, 2020 to the end of this year.

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

1. Vietnam businesses under pressure from Chinese goods on e-commerce platforms

Under pressure from foreign goods on e-commerce sites, Vietnamese businesses should take advantage of their internal strengths to compete.

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2. Vietnamese buyers cross the ocean for M&A transactions

A recent significant jump in Vietnam’s investment abroad, raising direct funds, and mergers and acquisitions are slated to help local companies quench the thirst for high-quality capital, improving their international status, and expanding their customer bases.

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3. Vingroup steps up overseas investment to realise global ambitions

Vingroup will pour an additional $300 million into the US market, to prepare for the sale of its new electric car models and smartphones.

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4. Right time to reform for future success

Since last year, Vietnam has been weathering difficulties caused by the health crisis to reach positive growth, with a safe environment for people and enterprises to perform in. Andrew Jeffries, country director for Vietnam of the Asian Development Bank, writes about the country’s steady journey amid the COVID-19 pandemic, with a need to further apply digital solutions in the economy.

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5. Local enterprises must deal with challenges in FTA implementation

Vietnamese enterprises need to be proactive in terms of gaining knowledge of incentives, whilst simultaneously managing themselves in order to deal with gaps and weaknesses occurring in the implementation of FTAs, according to economic experts.

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6. International IPOs help boost Vietnamese enterprises' positions

IPOs (Initial Public Offering) or being listed on foreign markets not only helps Vietnamese companies attract investments, but also strengthens their positions and the country’s position in the world.

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7. Major Japanese TV brands bow out of Vietnam market

Major Japanese brands have all but disappeared from Vietnam’s television market, unable to compete with South Korean and Chinese brands in terms of technology and price.

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8. Vietnam looks to go big on transport infrastructure

Investment in infrastructure is vital if Vietnam is to remain on the path to eventual high-income status.

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9. Energy projects suffer as developers struggle to get tax refunds

Energy project developers in Vietnam are struggling to get tax refunds for their billion dollar investments over legal tangles and confusion.

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10. Vietnam’s production rises at fastest pace since Nov 2018

Vietnam’s production in April 2021 rose at the fastest pace since November 2018 amid sharp new order growth, according to a report released by IHS Markit on May 4.

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