News Bulletin 02 - Week 2 February, 2020
The Covid-19 epidemic continues to dominate headlines and this week is no different. The epidemic is forecast to continue causing severe damage to many industries and economies in Vietnam and around the world. Let’s take a look at some of the latest news on the business and economic impact in the context of Covid-19 for Vietnam!
Let's review some of the latest business and economic updates in Vietnam.
Vietnam's business community gauges 13.5 per cent fall in 2020 revenue
Though still positive, the Vietnamese business community has a more negative outlook for the year ahead. Around 84 per cent noted business being negatively impacted by the coronavirus with an estimated reduction of 13.5 per cent in revenue in 2020, according to the first Business and Consumer Confidence Index Post Coronavirus Outbreakreleased by Infocus Mekong Research.
Foreign investors still eye Vietnam amid coronavirus outbreak
Foreign investors still pay great attention to Vietnam albeit the complicated developments of the acute respiratory disease caused by SARS-CoV-2 which started to hit the world earlier this year.
In January, the total newly registered capital, capital contributed and shares purchased by foreign investors reached 5.33 billion USD, up 179.5 percent against the same period last year.
The investment disbursement was estimated at 1.6 billion USD, a year-on-year rise of 3.2 percent.
Company profit growth in VN to slow down in 2020: reports
Corporate earnings were forecast to slow in 2020 as the economy became more vulnerable to external factors, data firms and securities businesses forecast.
A number of companies have set lower earnings targets for 2020 compared to the previous year as the economy suffers from volatility in international markets.
Business production hit because of lack of materials from China
Vietnam's reliance on Chinese materials has been clearly exposed during the Covid-2019 crisis, as imports from China have declined.
A report of the General Department of Customs (GDC) showed that of the $253 billion worth of import turnover in 2019, $75 billion came from China.
Global Britain puts Vietnam at forefront of trade priorities
Upon the UK leaving the EU, trade and investment ties between the British and the Vietnamese are expected to witness alterations. Vietnamese Ambassador to the UK Tran Ngoc An talked with VIR’s Thanh Tung about how the relationship will develop further, with a bilateral free trade agreement on the horizon.
With no limitation on foreign ownership, Vietnam fintech market expects to boom
The State Bank of Vietnam (SBV) plans to set no limit on foreign ownership in fintechs.
The foreign ownership ratio limit of 49 percent was mentioned last year in the draft decree to replace Decree 101 on non-cash payment. However, the limitation is not included in the latest draft version.
Disease control must go in tandem with economic development: PM
Prime Minister Nguyen Xuan Phuc on February 25 highlighted the twin tasks of curbing the spread of COVID-19 and completing socio-economic targets set by the National Assembly.
Fresh policies to foster private health funding
Domestic and international private investors are expected to get the thumps-up to venture further into health initiatives in Vietnam on the back of new favourable rules that are expected to change the investment picture in the fairly-untapped but lucrative sector.
Vietnamese carriers suffer from COVID-19 outbreak
According to statistics from the Civil Aviation Authority of Việt Nam (CAAV), Vietnamese carriers transported a total 3.7 million passengers in February, representing a drop of 13.7 per cent against the same month of 2019. The number of international passengers saw a drop of 39.5 per cent to just 870,000, while domestic passengers slightly decreased by 0.7 per cent to 2.8 million.
Increased health consciousness among consumers impacts FMCG market
Vietnamese consumers prefer less physical contact with crowds amid the coronavirus outbreak, leading to a decline in shopping traffic with a larger basket size per trip, thus affecting the fast-moving consumer goods (FMCG) market.