News Bulletin 06 - Week 4 March, 2020
Although the COVID-19 crisis is deepening globally, Vietnam continues to manage the economy as best possible. Vietnam’s now integrated economy with the world ensures that Vietnam also felt the stock market meltdown and reduced trade and investments with other countries during the first quarter of 2020.
Let’s look at some of the latest and related financial and business news in Vietnam during the past week:
1. Vietnam attracts $4 billion FDI capital despite COVID-19 crisis
Although the COVID-19 crisis is deepening across the globe, Vietnam managed to woo $4 billion in FDI capital in the first quarter.
2. HCMC enterprises own tax debt of more than VND27,000 billion.
At the end of February 2020, total tax debt at Ho Chi Minh City (HCMC) was more than VND27,000 billion, up more than VND3,000 billion from the end of 2019.
3. EVFTA remains guiding light in mitigating trade depletion
The European Union entry ban on its wide borders, which came into effect last week, comes in a crucial year for Vietnamese exporters to the EU, leading to the EU-Vietnam Free Trade Agreement to become ever more important for both sides in the year to come.
4. FDI pledges contract as pandemic spreads havoc
FDI pledges for new projects, capital supplements and stake acquisitions in Vietnam in Q1 fell 20.9 percent year-on-year due to the new coronavirus impact.
The figure hit $8.55 billion, with $4 billion coming from the Bac Lieu liquefied natural gas power project in southern Bac Lieu Province, which received its investment certificate in January, according to the Ministry of Planning and Investment.
5. Why foreign investors are dumping Vietnamese stock
Foreign investors have been net-sellers on Vietnam’s stock exchanges for a month, indicating a withdrawal amidst the Covid-19 pandemic.
6. Corporate bond issuance plummets over Covid-19 pandemic
Corporate bond issuance value in February fell 44 percent from January as the coronavirus pandemic interfered with companies’ financial plans.
The value of bond issuance on the Hanoi Stock Exchange (HNX) fell 44 percent to VND6.8 trillion ($292 million) in February, although January had less working days due to the seven-day Lunar New Year holiday (Tet).
7. Decrease in tax payments of financial and real estate enterprises
Many enterprises that pay tax have been paying a sharply dropping amount in the financial and real estate enterprises.
8. Covid-19 crisis leads to opportunity to expand markets
2020 is a special year for Vietnam because of the 4.0 industry revolution and Covid-19 outbreak.
There are three things Vietnam needs to focus on – institutional reform, transport infrastructure upgrading and the heightening of the role of the private sector, according to Tran Dinh Thien, former Head of the Vietnam Economics Institute.