News Bulletin 67 - Week 2, June 2021

Vietnam continues to deal with the fourth wave this week as social distancing continues in Ho Chi Minh City, the country’s biggest city and commercial hub. Amidst the lockdowns, the country continues to work hard trying to secure vaccines and start mass vaccinations, something that Vietnam is far behind other countries in the world. Vietnam last week approved Pfizer vaccines, paving the way for Vietnam to order millions of Pfizer vaccines.

In investments news, Taiwan's government on Monday approved a $101 million increase in the investment in Vietnam by Pegatron Corp, a major manufacturing partner of Apple, Microsoft and Sony.  With this additional investment by Pegatron Corp, Vietnam continues to develop its global supply chain capabilities, particularly for big tech and electronic giants such as Apple and Sony.

The past week spotlight

Global minimum corporate tax and its impact on Vietnam

This past week, finance officials from the US, Britain, Germany, Japan, France, Italy, and Canada – the G7 group comprising some of the richest countries in world – agreed on a worldwide minimum corporate tax on large international companies of at least 15 per cent. Jack Nguyen, partner from Mazars analysed the impacts of this policy on the e-commerce sector in Vietnam.

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

1. Taiwan approves $101 million Pegatron investment in Vietnam

Taiwan's government on Monday approved a $101 million increase in the investment in Vietnam by Pegatron Corp, a major manufacturing partner of Apple, Microsoft and Sony.

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2. Southern isolation policies draw protests from foreign business community

Recent policies to request people from Ho Chi Minh City to go into mandatory isolation by Dong Nai, Binh Duong, and other southern provinces have elicited protest from the foreign business community.

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3. Quality investment continues at pace for Thai Nguyen

As part of Vietnam’s northwest region, Thai Nguyen has been taking the lead among localities nationwide in foreign investment attraction in recent years, drawing in scores of domestic and foreign investors.

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4. HCMC's 800-worker factory exits lockdown

HCMC authorities have lifted lockdown orders on Vina Kitchenware where 800 people are employed after 15 days of isolation. This is the first factory in a Ho Chi Minh City industrial park to be closed when an employee contracted the novel coronavirus from the Christian missionary group cluster.

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5. Tourism businesses face risk of labour crisis

The latest wave of COVID-19 has dealt a demoralising blow to Vietnam’s tourism industry and continued to keep nearly five million tourism workers in unemployment. Tourism businesses are now looking for further support from the government and management agencies to promptly prevent an increase in the employment crisis.

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6. Vietnamese overseas investment triples

Vietnamese firms poured US$546.7 million into overseas projects in the first five months of 2021, more than triple the figure of the same period last year.

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7. FDI inflows remains spotlight of Vietnam's economy

The government has set up an FDI task force to support multinationals and foreign businesses grasping investment opportunities in Vietnam.

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8. Vietnam working to stabilise economy amid challenges from pandemic

Despite the complex developments of the COVID-19 pandemic, Vietnam’s overall macro-economy remains stable, with encouraging growth seen in industries and a low rise of average consumer price index (CPI).

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9. Vietnam International Travel Mart 2021 slated for July 29 – August 1

The Vietnam International Travel Mart (VITM) 2021 will take place in Hanoi from July 29 to August 1, announced the Vietnam Tourism Association (VTA) on June 11.

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10. Chinese port suspends import of frozen food from Vietnam to grapple with Covid

A port in China’s Guangdong Province has temporarily suspended frozen food imports from Vietnam and 10 other Asian countries since Covid-19 prevention measures have hit its loading capacity.

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