News Bulletin 03 - Week 1 March, 2020
With the coronavirus epidemic continuing to negatively impact businesses and slowing local manufacturing, the government has taken steps to improve the situation by launching support packages to spur on businesses’ performance and continuous economic growth.
Let’s look at some of the latest news to see how the economic and business situation was impacted in the last week.
1. Foreign investors penetrate deep into Vietnam’s e-commerce market
The few e-commerce players which survive the stiff competition in the market are all backed by big foreign firms in the region.
2019 witnessed the departure of a series of shopping websites, including Robins.vn, Adayroi.vn and Lotte.vn. Prior to that, The Gioi Di Dong closed vuivui.com, the website that its manager once put high expectations on. After Adayroi.com, Lotte.vn and vuivui.vn gave up the game, the Vietnamese e-commerce market has four best-known names – Lazada.vn, Sendo.vn, Tiki.vn and Shopee.vn.
2. Enterprise support around the corner
With the coronavirus epidemic badly damaging business performance and undermining local production, Vietnam will officially launch a major support package to spur on businesses’ performance and ensure economic growth.
3. EVFTA, EVIPA offer prospect of high quality FDI to Vietnam
The recent ratification of the EU-Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement (EVIPA) by the European Parliament is expected to create a change in the flow of FDI from the EU into Vietnam.
4. PM instructs giving maximum assistance to production, business amid COVID-19
Prime Minister Nguyen Xuan Phuc has instructed the Government to provide the maximum possible assistance to production and business activities in the context of complicated impacts of the COVID-19 epidemic.
5. Vietnam Finance Ministry plans relief for taxpayers
A higher disposable income as a result from the adjustment would boost household spending and economic growth, said the Ministry of Finance.
Vietnam’s Ministry of Finance (MoF) is proposing increasing the family circumstance-based deduction for each dependent of taxpayers from VND3.6 million (US$155.42) per month to VND4.4 million (US$189.96) per month.
6. Vietnam announces $1.16bln stimulus package to help virus-hit firms: state media
Vietnam plans to spend 27 trillion dong ($1.16 billion) to help businesses cope with the coronavirus epidemic and help the economy stick to its 6.8% growth target this year, state media said on Tuesday.
The plan includes tax breaks, delayed tax payments and a reduction in land lease fees, Vietnam Television (VTV) quoted Prime Minister Nguyen Xuan Phuc as saying.
7. Vietnam’s fintech explosion: investment capital soars from 0% to 36% in SE Asia
The investment capital poured into Vietnam’s fintechs in 2019 accounted for 36 percent of total capital into Southeast Asia. The figure was zero percent in 2018.
In 2015, fintechs began developing in Vietnam and the fintech community has been developing strongly since then, especially in Hanoi and HCM City. However, the number of fintechs in Vietnam remains modest if compared with other regional countries.
8. Infrastructure investors to hit full throttle in Vietnam
Global Infrastructure Hub estimated that Vietnam needs to invest US$110 billion between 2021 and 2025 for infrastructure.
Investors are seeing big opportunities to take part in Vietnam’s infrastructure developments as the government has announced plans to boost the construction of many mega infrastructure projects in tandem with streamlining policies to make it more attractive.
9. Vietnam's rice exports in spotlight despite decrease in acreage
In February, Vietnam's rice exports increased by 32.6 per cent compared to the same time last year, despite troubles from the COVID-19 epidemic and natural catastrophes.
10. Economic health at stake
Outcries from enterprises across the board are striking all ears far and wide as Covid-19, a highly-contagious disease caused by the new coronavirus originating in China, has been ruining businesses. Many find themselves in the hot water since their financial obligations that are otherwise normal business have become unbearable burdens as revenue streams are stonewalled. Visions for the business circle are darkened, with many feared to be moving to the brink of bankruptcy in no time if the right cures are not prescribed soon.