economy
The Economy category covers macroeconomic trends, fiscal policies, trade performance, and financial markets. It explores GDP growth, inflation, employment, investment flows, and regulatory changes, providing insights into economic stability, global trade relations, and policy impacts. This section serves as a resource for businesses, investors, and analysts monitoring economic developments.
European insurance firm predicts Vietnam top-up tax to have minimal impact on FDI
Vietnam’s recently passed top-up tax, a response to the Global Minimum Tax, should not impact how attractive Vietnam is to foreign firms, according to Raphaël Cecchi, an analyst with European credit insurer, Credendo. It may, however, “slightly hit Vietnam’s reputation” as a low-tax jurisdiction for foreign firms, he says. He
Chinese president rumoured to be headed to Vietnam next week
The Chinese President, Xi Jinping, could be in Hanoi next week for two days, Bloomberg is reporting. This has been on the cards for sometime and likely a response to a visit from the President of the United States to the Vietnamese capital in September. Politically tied to China, economically
Car sales decline sees budget revenues slashed in northern Vietnam province
Last year, Vietnam’s Quang Nam province recorded tax revenue of VND 31,781 billion (US$1.3 billion), however, this year it is expected to record tax revenue of just VND 23,951 (US$986 million), Tuoi Tre is reporting. This has been attributed to a substantially reduced contribution from automaker Truong Hai Group, which
Vietnamese eager to sell goods immediately agreeing to sub-par trade terms
Vietnamese firms are at ‘high risk of scams and disputes’ but lack the knowledge necessary to successfully engage commercial dispute resolution mechanisms, Vietnam News is reporting. The article references Vu Chien Thang, Trade Counsellor of Vietnam in Spain, who essentially says Vietnamese firms are being scammed because they are looking
Government procurement floated as means to grow Vietnam supporting industries
VN Express is carrying an article about Vietnam’s supporting industries, or lack thereof, amid booming exports. Of interest, is one particular solution put forward by Pham Chanh Truc, former head of the Saigon Hi-tech Park. “The government has to create a market by ordering goods from domestic businesses. After some
Claims for unemployment benefits in HCMC fall in November
Only 13,300 people were registered to receive unemployment benefits in HCMC in November, a drop of nearly 25 percent from June, VN Express is reporting. The publication is saying that this is a sign that the wave of layoffs that have plagued the manufacturing sector may have slowed this year.
Vietnam’s Economy, November 2023: Snapshot
Vietnam started November with state media boasting that the country had overtaken South Korea to become the 6th biggest trading partner of the US by import value. This was, however, on closer inspection, old news with the jump actually taking place in 2022. That’s not to say this report was
Foreign-invested exporters leave Vietnamese firms in dust in 2023
From January 1 to November 15 this year foreign invested enterprises recorded a trade surplus of US$43.49 billion whereas Vietnamese firms recorded a deficit of US$19.05 billion, The Investor is reporting. This speaks to Vietnam’s dependence on foreign firms in its export sector but also the vastly different operating environments
Vietnam’s value-added tax reduction extended
A 2 percent reduction in Vietnam’s value-added tax has been extended to June next year, VTV is reporting. The stimulus measure first introduced during COVID has been extended multiple times as Vietnam’s economy first struggled to recover from the pandemic and is now battling a greater global economic downturn.
Global Minimum Tax legislation passed in Vietnam, to start Jan 2024
A top-up tax has been approved by Vietnam’s National Assembly and will see corporate income taxes raised to a minimum of 15 percent in the country, Reuters is reporting. This will take effect from January 1 next year. Legislation set to provide alternative benefits to corporate firms operating in the
Foreign direct investment approvals in Vietnam hit US$28.85 billion
A total of US$28.5 billion worth of foreign direct investment projects have been approved so far this year, a 14.8 percent increased on a year earlier, VN Express is reporting. Of note: When applying for an investment registration certificate foreign firms need to detail how much money they intend to
Vietnam football club fails to pay staff, players for months
The Ho Chi Minh City Football Club has failed to pay staff and players to the tune of US$1.23 million, VN Express is reporting. The publication is reporting that this sum is made up of salaries and bonuses and dates back as far as last year. Why it matters: This
Consumer spending in Vietnam’s biggest export market set to slow
Despite higher prices, consumer spending has remained high in the United States, however, this may be about the change, CNN is reporting. High housing costs, and huge levels of debt, along with COVID-era savings almost gone, are making it likely that US consumers will need to slow down spending-wise. Why
Vietnam has finalised US$15.5 billion just energy transition partnership roadmap
Vietnam has finalised the roadmap for the implementation of the Just Energy Transition Partnership (JETP) it agreed to last year, worth about US$15.5 billion split between public and private investment, CNN is reporting. No details of the agreement have been supplied, however, Reuters reported several weeks ago that it was
Vietnam’s record high trade surplus, not necessarily good news
Vietnam’s trade surplus up to the end of October this year was US$24.61 billion, two and a half times bigger than it was over the same period last year, VN Express is reporting. But overall trade is down and in this context, this isn’t great news. Key takeaways: It looks
Market demand, skilled labour shortages in Vietnam, key risks for German firms
A lack of skilled labour and relatively low global market demand are key concerns for German investors in Vietnam, Germany Trade and Invest (AHK) has said. In its World Business Outlook Fall 2023 it also found firms weary of risks to supply chain disruptions (37 percent), economic policy (24 percent),
Decrease in Vietnam’s personal income tax collection recorded
Vietnam’s personal income tax receipts in the first nine months of this year were down VND 7.2 trillion (US$299 million) over the same period last year, Tuoi Tre is reporting. The article goes on to say this is due to a reduction in real estate transfer taxes which are included
Global talent index ranks Vietnam No. 75
Vietnam has squeezed into the 2023 Global Talent Competitiveness Index in 75th place just behind Mexico in 74th place and ahead of Mongolia at 76, Vietnam Net is reporting. Vietnam, Global Talent Competitiveness Index 2023, key metrics table Metric Description Score Rank Enable Regulatory, market, business and labour landscape 46.78
Concerns Chinese electric bike makers evading EU trade remedies via Vietnam
The European Bicycle Manufacturers Association has raised concerns that Chinese electric bike makers are exporting their products through Vietnam to the EU to avoid antidumping duties, ASL is reporting. This could see the EU apply antidumping duties on electric bikes from Vietnam too. Using Vietnam to circumvent trade remedies has
Survey finds 2023 salary increase in Vietnam of 7.5 percent
Aon’s 2023 Salary Increase and Turnover Report has found that Vietnam has seen an actual salary increase of 7.5 percent this year, Human Resources Online is reporting. The report also found an expected increase in 2024 of 8 percent and says that tech sector wages in Vietnam are expected to
In today’s Vietnam news: Vietnam Airlines trading restrictions removed, Insurance payouts VSS, Car sales June, 23+ years prison term recommended counterfeit supplements, Counterfeit shoes
In today’s Vietnam news: Government to inject cash into Agribank, IMF growth forecast raised, German industrial gas plant investment, VN garment maker Amazon legal
In today’s Vietnam news: Construction labour demand impacting garment industry, ADB growth forecasts, Bloomberg survey GDP growth expectations, Starlink orders open, Seafood industry call
This is an interview with Chris Walker, a Vietnam Sourcing Expert with Vietnam Factory Tours how rising oil prices and the Middle East crisis are
This is an interview with John Gardner, CEO and Founding Partner, at Optimum Hospitality in Ho Chi Minh City. It covers fuel price impacts on:
This is an interview with Dr Nuno F. Ribeiro, Associate Professor, International Tourism & Hospitality Management at Copenhagen Business College, formerly of RMIT Vietnam. It