News Bulletin 68 - Week 3, June 2021

The past week saw Vietnam continues to battle the fourth wave of the pandemic and HCMC remains the country’s hot spot outbreak. Amid growing coronavirus cases from the latest outbreak in the country, the Vietnamese government is taking measures to speed up the vaccine rollout for its population.

The government has approved the establishment of a COVID-19 vaccine fund, which will receive, manage, and use voluntary financial and vaccine donations and assistance from domestic and foreign organizations and individuals, for vaccine procurement and import, research and production in Vietnam, and distribution of vaccines for the people.

Vietnam is also taking measures that the current outbreak is not affecting its global supply chain, especially for big blue-chip companies. Pegatron, a major Apple manufacturer with facilities across the globe, last Monday got the nod from Taiwanese leaders to inject an additional $101 million into Vietnam. The group had already announced plans to invest up to $1 billion into the country.

The Taiwanese company will fund three high-tech production factories in the northern port city of Haiphong. Pegatron secured an investment certificate for the $19 million facility in March last year.

The past week spotlight

Vietnamese policy for emergency vaccine imports

The government encourages all localities and businesses to seek proper vaccine resources and negotiate with vaccine manufacturers for the purpose of import into Vietnam. Of course, there are rules and policies to follow for import and distribution of such vaccines in Vietnam.

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

1. 2021 economic outlook remains positive despite COVID-19 resurgence

Despite the complexity of the fourth COVID-19 wave, Vietnam’s GDP growth is forecast to exceed 6.5 percent this year on the back of surging industrial production and global economic recovery, according to Assoc. Prof. and PhD Dinh Trong Thinh, a senior economist from the Academy of Finance.

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2. Foreign investors eye VN banking stocks

The stock market of Vietnam is bustling with banking and securities stocks as the backbone, as the potential of banking stocks is attracting the attention of foreign investors.

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3. Vietnam attaches importance to cooperation with Singapore

Vo Van Thuong, Politburo member and permanent member of the Party Central Committee’s Secretariat, has affirmed the Communist Party of Vietnam (CPV)’s foreign policy of attaching importance to relations with neighbours, regional countries and strategic partners, including Singapore.

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4. Demand for industrial land frozen amid Covid

The industrial property market has slumped as a result of the latest Covid-19 outbreak, but industry insiders expect a strong recovery as soon as the pandemic is contained.

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5. E-commerce platforms unwilling to pay taxes on sellers’ behalf

Experts said e-commerce platforms are afraid that making tax statements and paying taxes on behalf of business individuals will create excessive costs and personnel burdens.

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6. Apple shores up Vietnam supply chain

Apple suppliers in Vietnam, already on the increase since the US-China trade war kicked off, are continuing to bulk up operations here with added funding and heightened relocation efforts.

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7. Garment and textile exports soar 15% to reach US$12.2 billion in five months

Vietnam’s garment and textile exports were estimated to have reached US$12.2 billion in the first five months of 2021, up 15% over the same period last year, according to the Ministry of Industry and Trade (MOIT).

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8.  Singapore committed to cooperating closely with Vietnam for post-pandemic recovery

Singapore is committed to cooperating closely with Vietnam so that both countries can emerge stronger post-pandemic, Singaporean Foreign Minister Vivian Balakrishnan said ahead of his trip to Vietnam to attend the Asia-Europe Meeting (ASEM) High Level Policy Dialogue from June 20-23.

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9. Ho Chi Minh City requires over US$42 billion for transport infrastructure upgrades

The Ho Chi Minh City People’s Committee has issued a plan to implement the city's transport infrastructure upgrade project in the 2021-2030 period, which will require investment of VND970.6 trillion (US$42.3 billion).

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10. Vietnam’s agricultural exports soar over 30 percent in first five months despite COVID-19

Vietnam earned US$22.58 billion in exports of agricultural products in the first five months of this year, up 30.1 percent year on year, despite the impacts of the COVID-19 pandemic.

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