News Bulletin 69 - Week 4, June 2021

Vietnam’s COVID-19 restriction for HCMC, under Directive 10, was extended this week for another two weeks. The current fourth wave is no doubt impacting the country’s economy, especially the tourism and hospitality sector which was hoping the summer break will spurn increased domestic travel.

Meanwhile in news related to foreign investments and the economy, Singaporean lender United Overseas Bank (UOB) forecast Vietnam’s GDP would grow by 6.7 percent this year.  It said Vietnam’s economic growth trajectory remained on track, with exports in the first five months growing 35.5 percent year-on-year, while imports rose 54 percent.  Danang continues to attract foreign investments into the city.  The central city has attracted 11 investment projects into its industrial and hi-tech parks since the beginning of this year, including three FDI projects worth 145.3 million USD and eight domestic-invested ones totaling 188.4 billion VND (8.2 million USD).

The past week spotlight

Fees for Covid-hit sectors reduced by US$43 million

The Ministry of Finance on June 25 issued Circular No. 47/2021/TT-BTC to omit 30 items of business fees and charges worth around VND1,000 billion (US$43 million) for those affected by the Covid-19 pandemic, effective from July 1 to December 31, 2021.

See full details

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

1. Windows flaw opens door to cyberattacks on Vietnamese firms

A serious flaw in the Windows operating system makes Vietnamese firms vulnerable to large-scale cyberattacks by hackers, the National Cyber Security Center (NCSC) has warned.

See full details

2. Vietnam's aviation sector bears US$1.6 billion short term, due debts

According to the Vietnam Aviation Business Association (VABA), Vietnamese airlines have beared short-term debts and due debts up to VND36 trillion (US$1.6 billion) since the Covid-19 outbreak in the country. Of the total debts, state-owned carrier Vietnam Airlines has accounted for VND20 trillion (US$867 million).

See full details

3. Da Nang draws 11 more investment projects in industrial, hi-tech parks

The central city of Da Nang has attracted 11 investment projects into its industrial and hi-tech parks since the beginning of this year, including three FDI projects worth 145.3 million USD and eight domestic-invested ones totaling 188.4 billion VND (8.2 million USD).

See full details

4. Vietnamese firms’ overseas investment rises nearly 2.5-fold in H1

Overseas investment by Vietnamese firms neared 547 million USD in the first half of 2021, rising close to 2.5 folds against the same period last year, according to the Foreign Investment Agency under the Ministry of Planning and Investment.

See full details

5. EuroCham supports Vietname to improve competitiveness

The European Chamber of Commerce in Vietnam, better known as EuroCham, has proposed the Ministry of Planning and Investment to organise an online conference gathering European businesses over the world to find opportunities in Vietnam.

See full details

6. Deposit interest rate proposed to gradually lower to 0%

The Vietnam Association of Financial Investors (VAFI) on Tuesday proposed gradually lowering the Vietnamese dong deposit interest rate to zero per cent.

See full details

7. Vietnam lures over $15 million of foreign capital in first half

Foreign investment capital registered in Vietnam decreased while disbursed capital increased significantly over the same period last year.

See full details

8. Real estate FDI surges 35 pct

Foreign direct investment in real estate during the first six months rose 35 percent year-on-year to $1.15 billion, ranking third in all sectors.

See full details

9. Vietnam economy to expand 6.7 pct in 2021: UOB

Singaporean lender United Overseas Bank (UOB) forecast Vietnam’s GDP would grow by 6.7 percent this year. It said Vietnam’s economic growth trajectory remained on track, with exports in the first five months growing 35.5 percent year-on-year, while imports rose 54 percent.

See full details

10. Vietnam’s first cargo airline likely to debut in 2022

Vietnam is likely to have its first cargo airline soon as the establishment of such a carrier, worth over US$100 million, may be approved next year when the aviation market is projected to recover from the current COVID-19 outbreak.

See full details