Business highlights – April 4-10
VGP - Economic outlook still bright despite growth slowdown, FDI attraction up 125.2% in Q1, exports to China up 10.38% and new wave of Japanese investment to arrive in Viet Nam are economic highlights from April 4-10.
Economic outlook still bright despite growth slowdown
Some foreign economic and financial organizations have maintained an optimistic outlook for Viet Nam’s economy in 2016, in spite of the recent slower than expected GDP expansion.
HSBC said the country’s manufacturing sector grew by 10.6% last year and contributed 1.6 percentage points to GDP growth of 6.7%. The industry will remain stable and develop by 10.7% in 2016.
However, the bank revised their GDP forecast down to 6.3% for this year and 6.6% for 2017, it said on April 7.
FDI attraction up 125.2% in Q1
As of March 20, 473 new Foreign Direct Investment (FDI) projects were granted with investment certificates with a total registered capital of US$2.74 billion, a year-on-year increase of 125.2%.
Meanwhile, 203 operating FDI projects were added US$1.285 billion, up 107%. These figures brought the total newly-registered and additional capital to US$4.026 billion in the first quarter of 2016, up 119.1%.
In the first quarter, US$3.5 billion in FDI were disbursed, up 14.8% against the same period last year.
Exports to China up 10.38%
Viet Nam gained US$1.1 billion from exporting to China in February, bringing the total export turnover in the first two months of the year to US$2.4 billion, a year-on-year increase of 10.38%.
Computers and electronics were key export items of Viet Nam to China with US$337.5 million, up 4.8%. It was followed by vegetables and fiber with US$236.6 million and US$191.4 million, up 184.76% and 10.22%, respectively.
New wave of Japanese investment to arrive in VN
A new wave of Japanese investment is expected to arrive in VietNam in the near future thanks to the Trans-Pacific Partnership (TPP) Agreement.
According to Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc, Ha Noi as an economic and trade hub in the north, is likely to be an attractive destination to foreign investors.
He suggested domestic business players proactively take this opportunity to make use of the preferential tariff as committed under TPP.
Workshop organized to facilitate trade in VN
The Viet Nam Chamber of Commerce and Industry (VCCI) coordinated with the Ho Chi Minh People’s Committee, the American Chamber of Commerce (Amcham) in Viet Nam and the Viet Nam Trade Facilitation Alliance (VTFA) to jointly organize a workshop on April 6 to facilitate trade in Viet Nam.
Experts at the workshop emphasized that local authorities in Viet Nam need to establish a trade information database of FDI businesses and domestic suppliers, to help Vietnamese enterprises become FDI businesses’ suppliers.
HN hosts CEO Forum 2016
Representatives of more than 300 Vietnamese enterprises participated in Viet Nam CEO Forum 2016, entitled “Boosting Strengths for Businesses in global integration” held recently in Ha Noi.
The event brought together the CEOs of numerous local and foreign firms, economic experts and policymakers, who shared their practical experience in cross-border business and penetrating new markets.
Key issues discussed during the forum included identifying businesses’ strengths and weaknesses, updating businesses on integration opportunities and challenges, and helping them learn from domestic and foreign firms so they could enter overseas markets after establishing a strong position in their local markets.
By Thuy Dung