News Bulletin 70 - Week 1, July 2021

Mass Covid-19 testing is currently taking place in Saigon, Vietnam’s largest city and the commercial hub of the country. It is hoped that mass Covid-19 will identify those with positive Covid-19 can be found and isolated in order to contain the rapid rise of infections in Saigon. Amidst the current fourth wave, the Vietnamese government is forecasting a GDP growth of 6-6.5 percent in the second half this year depending on the Covid-19 situation. In the first scenario, the economy would expand by 6 percent if the current Covid-19 wave is contained by July and no major outbreak occurs in industrial parks and big cities, Deputy Minister of Planning and Investment told reporters Thursday evening.

The continued Covid-19 pandemic in 2021 has significantly hurt Vietnam’s foreign direct investment mobilisation so far this year, however the remarkable increase of the average size of ventures that are going ahead is reflecting an improvement in quality of selection.  Bright spots for foreign direct investment (FDI) mobilisation in the first half of the year mainly come from new and additionally-registered investment, according to the latest announcement from the Ministry of Planning and Investment’s Foreign Investment Agency (FIA). Of these, 804 projects – down 43.3 per cent on-year – received new investment certificates, with the total registered capital of nearly $9.55 billion, a rise of 13.2 per cent on-year.

The past week highlight:

How Covid-19 impacts Vietnam’s economy

Vietnam’s economy is recovering from a low base last year, but the number of businesses leaving the market remains high amid growth prospects narrowed by several outbreaks.

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

1. Facebook sues Vietnamese group for account takeover, unauthorized ads worth $36 mln

Facebook has sued four people in Vietnam for compromising accounts and running unauthorized advertisements worth $36 million, it announced Tuesday. Them Huu Nguyen, Le Khang, Nguyen Quoc Bao and Pham Huu Dung need to be exposed for their conduct and held accountable for their actions, the social media giant said in a blog post.

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2. Vietnam's growth potential lies in the digital economy

The digital economy in Vietnam accounts for about 8.2% of GDP. The development potential of the Internet and digital economy components is still quite large.

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3. Vietnam’s construction sector faces huge int’l opportunities

In Season 2 of the ‘Nguy - Co’ talkshow , Le Viet Hai, chairman of BoD at Hoa Binh Construction Group JSC (HBC), explained how to take the construction value chain to the world by focusing on labor, science and technology.

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4. Vietnam forecasts 6-6.5 pct H2 GDP growth

The government forecasts a GDP growth of 6-6.5 percent in the second half this year depending on the Covid-19 situation.

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5. Further FDI incentives forecast to spur on high-value inflows

While 2021’s difficulties have significantly hurt Vietnam’s foreign direct investment mobilisation so far this year, the remarkable increase of the average size of ventures that are going ahead is reflecting an improvement in quality of selection.

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6. Foreigners in Vietnam face settlement headache

The foreigner community has high expectations for quality apartments with synchronized amenities and a favorable location, though good housing options remain limited.

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7. The U.S. Risks Losing Out From Its Own Trade Push in Vietnam

The Trump administration pressured the country to award big LNG projects to American companies. Some of them may not materialize.

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8. Vietnam welcomes third FDI wave

Vietnam is committed to developing its role in the production value chain through FDI and has been preparing for many years to improve the qualifications of its workers.

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9. Digital banking boom in Vietnam during coronavirus pandemic

The novel coronavirus pandemic could act as a catalyst for digital banking adoption changing the consumption behavior of customers who do not want to go to banks for transactions in order to limit exposure. Therefore, the banking industry is increasingly promoting the digitalization of banking services via apps to attract more consumers.

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10. Six-month CPI up 1.47 percent

The Consumer Price Index (CPI) rose 1.47 percent year-on-year in the first half of this year, the lowest since 2016, according to the General Statistics Office.

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