[Round-up] FDI Continues Flowing to Vietnam, WB Points out TPP Challenges

Tuan Minh

22:56 02/12/2015

BizLIVE - Foreign direct investment continued to grow in Vietnam in the first 11 months of this year. The World Bank updates developments of the Vietnamese economy.

[Round-up] FDI Continues Flowing to Vietnam, WB Points out TPP Challenges

Foreign investors continued to pour funds into Vietnam in the first 11 months of this year.

Vietnam FDI Attraction Jumps 17% to $20.22 Billion in Jan-Nov
Foreign investors pledged to pour $13.55 billion into newly-licensed projects in Vietnam in the 11 months through November, while the additional funds for existing projects were estimated at $6.67 billion in the period, bringing the total value to $20.22 billion, up 16.7% year-on-year, the Foreign Investment Authority said.
Disbursements of foreign direct investment (FDI) in the period rose 17.9% to a record high of $13.2 billion, beating a government forecast.
Uber Plans to Set up Company in Vietnam
Ride hailing app company Uber has reportedly said it will set up a legal entity in Vietnam to implement its pilot service in the country after the local transport ministry rejected the proposal.
The U.S. transport tech firm will revise its proposal to re-submit to the ministry within weeks, according to the Deal Street Asia business website.
Uber’s move in Vietnam comes a few weeks after it announced that it will set up a corporate entity in Indonesia as opposed to functioning through representative offices.
Five Vietnam Firms Enter Nikkei Asia 300
Nikkei Asian Review has put five Vietnamese companies namely FPT, Vietcombank, PetroVietnam Gas (PVGas), Vinamilk, and Vingroup on the Asia300 list, that features leading companies from eleven countries and regions, including China and members of ASEAN.
Vietnam Taxman to Probe Tax Evasion Allegations of Coca-Cola
The Ho Chi Minh City tax department has set up an anti-transfer pricing task force and is calling for a probe to be launched into alleged transfer pricing practices at Coca-Cola Vietnam, an official said on Monday.
“The city’s taxman had earlier inspected the beverage maker for its repeated losses, but no transfer pricing inspection has been made before,” the official said.
BIDV Borrows $105 Million Loan to Serve WB-Funded Agro Project
Vietnam’s Ministry of Finance and Bank for Investment and Development of Vietnam (BIDV) signed a $105 million sub-loan in Hanoi on November 30.
The Vietnam Sustainable Agriculture Transformation project (vnSAT) project, which borrowed the total capital of $238 million from the World Bank’s preferential loan, aims to support the implementation of the new agenda in two sub-sectors including high value rice production for export in the Mekong Delta and coffee in the Central Highlands.
Oil Crash Hits PetroVietnam
State-run energy firm PetroVietnam posted revenues of 511 trillion dong ($22.71 billion) in the first 11 months of this year, equivalent to just 74.2% of its yearly plan and contributed 108 trillion dong ($4.8 billion) to state coffers.
PetroVietnam Deputy General Director Do Chi Thanh said that the estimated average oil price in November this year fluctuated around $48 per barrel, down $2.7 per barrel compared to October. The average oil price in the first 11 months this year stood at around $55.6 per barrel, or down $50.4 per barrel over the same period last year.
Vietnam Rakes in $222 Million from State Share Sales in Jan-Nov
The Vietnamese government booked proceeds of 4.95 trillion dong ($222.22 million) from selling shares of state-owned enterprises through the Hanoi Stock Exchange between January and November this year.
Government agencies sold 311.6 million shares out of 896.9 million shares offered via 81 auctions, including 57 initial public offerings, in the period.
Vietnam Govt Sells $2 Billion in Bonds in November
The Vietnamese government raised a combined 44.91 trillion dong ($2 billion) from selling government- and government-guaranteed bonds in November, up 79.9% from October.
Yields of bonds having tenors of less than 10 years slid between five and 16 basis points while that of 15-year noted was flat.
Vietnam Sees Shortage of IT Workers
Vietnam could fall short of 500,000 information technology (IT) professionals by 2020 as the demand far outpaces the supply, said a recent by online recruitment company VietnamWorks.
The demand for IT employees has increased 47% annually on average over the past three years. However, the annual growth rate of the labor supply has been 8%.
The shortage of 500,000 skilled staff by 2020 would represent more than 78% of all IT professionals required by the market, the report said.
The impact of the inclusion of the Chinese renminbi in the SDR basket will exert limited impact on Vietnam’s economy at least in the short term, Sebastian Eckardt, senior economist at World Bank, said on Tuesday morning.
“I think the impact [of the move] on Vietnam’s economy at least in the short term is relatively limited. We don’t see any direct impact on the exchange rate or trade flows from that step,” he said.
The Trans-Pacific Partnership agreement is expected to anchor and accelerate domestic structural reforms in Vietnam, the World Bank has said.
“Many TPP chapters will stimulate institutional reforms to strengthen and standardize rules and transparency and support the creation of modern institutions in Vietnam,” the World Bank (WB) has said in a report themed “Taking Stock” released on December 2.