This week’s Vietnam news roundup covers the latest tourism and industrial production numbers, the increase to the minimum wage that kicked in Monday, the new start dates for several key laws, approval of a Value-Added Tax reduction to the end of the year, foreign trader stock market transactions, and more…

Vietnam issues a decree on direct power purchase agreements

the-shiv July 4, 2024

Vietnam has issued a decree on Direct Power Purchase Agreements–or DPPAs– clearing the way for businesses to buy power directly from power generators. The decree has been a long time coming and has been touted as a critical component to developing Vietnam’s electricity network. Per the decree, high volume power

Japanese conglomerate-developed industrial park plan approved in central Vietnam

the-shiv July 4, 2024

Notably, Thanh Hoa is located in northern central Vietnam, close to major economic hubs like Hanoi, Hai Phong, and Hung Yen. This proximity provides easy access to key markets and transportation networks. It also has a well-developed infrastructure network, including highways, railways, deep-sea ports, and airports…

Supply of slot machines in Vietnam close to outstripping demand: Gaming exec

the-shiv July 4, 2024

As a result, the gaming executive says that border closures and the subsequent reduction in tourists visiting Vietnam saw the market become oversaturated as the number of players fell significantly. He says the market has still not fully recovered and that many gaming clubs that took a financial hit during the pandemic are in need of further investment to get moving again…

‘Limited investment support’ in Vietnam sees big name FDI go elsewhere: MPI

the-shiv July 4, 2024

This stems from the introduction of the Global Minimum Tax which has seen corporate tax incentives significantly diminished for firms operating in Vietnam. An alternative ‘investment support fund’ has been proposed, however, this is yet to be legislated. A December 2023 draft included financial support for training and reimbursements for research and development conducted in Vietnam…

Chinese tech insurance Huize to acquire Vietnam-based Global Care

the-shiv July 4, 2024

Of note, Vietnam’s insurance industry is expected to grow by an estimated 8.5 percent from VND 60.15 trillion or US$2.6 billion in 2021 to VND 90.24 trillion or US$3.5 billion in 2026. This growth is expected to be supported by Vietnam’s rapid economic growth and regulatory policies, for example new compulsory insurance for construction contractors and mandatory fire and explosion insurance…