[Round-up] FDI Flow to Dong Nai Triples, WB to Cut Preferential ODA for Vietnam in 2017

Tuan Minh

10:39 24/03/2016

BizLIVE - FDI flow to Dong Nai province more than tripled year-on-year to $448 million in the first quarter of 2016. The World Bank will halt preferential ODA for Vietnam starting July next year.

[Round-up] FDI Flow to Dong Nai Triples, WB to Cut Preferential ODA for Vietnam in 2017

The World Bank will halt preferential ODA for Vietnam starting July next year. (Photo: enternews.vn)

Vietnam Ranks 4th in “Well-Being” Study
Vietnam ranks fourth out of 149 countries assessed on how well they convert national wealth into well-being of its population, according to a report by business strategy advisor Boston Consulting Group (BCG).
The report finds that Vietnam, with gross domestic product (GDP) per capita based on purchasing-power parity (PPP) of $5,200, has well-being levels that would be expected of a country with GDP per capita of more than $10,000. Vietnam is also above average in converting economic growth into well-being improvements.
Binh Duong to Host Smart City Summit
More than 500 industry leaders, government officials, academics and business professionals will take part in a seminar on smart cities in the southern province of Binh Duong next week.
Jointly organized by the province administration and the Dutch consulate in HCM City, the summit will discuss how to tackle urban challenges, forge new partnerships, explore new ideas and share insights and expertise in developing smart cities.
WB to Cut Preferential ODA Loans for Vietnam Starting July 2017
The World Bank (WB) has announced it would stop offering preferential official development assistance (ODA) to Vietnam from July 2017, said Truong Hung Long, head of the Ministry of Finance’s Debt Management and External Finance Department as saying.
Since 2010 Vietnam has turned to lower middle income status, thus the concession level among ODA loans for Vietnam has remarkably decreased, said official.
Interest rates on existing ODA would be increased to between 2% and 3.5% per year, from less than 1% per year currently.
Massive Foreign Firms Attend Propak Vietnam
A large number of foreign companies participated in Propak Vietnam 2016, Vietnam and Indochina’s premier trade event for food, drink and pharmaceutical processing and packaging industries, held earlier this month in HCM City.
The firms were not only from FMCG and pharmaceutical establishments in Vietnam, but also from elsewhere in Asia and other regions like Australia, Germany, Italy, Spain, the United Arab Emirates, and the U.S.
They included 208 buyer delegations from companies like Acecook Vietnam JSC, Ajinomoto Vietnam, Vifon, Masan Consumer, Sapporo Vietnam, Vietnam Brewery LTD, New Viet Dairy, NH Foods Vietnam, SHISEIDO Vietnam, and others.
Vietnam’s Growing Market for Pharma and Medical Devices
A range of companies from South Korea are queuing up to do business in the pharmaceutical and medical device markets of Vietnam where they believe genuinely high economic growth is achievable, VOV reported.
Speakers at a workshop on March 23 in Hanoi organized by the Ministry of Science and Technology said the opportunities in the marketplace are good for multinational and pharmaceutical companies seeking new sources of growth.
Vietnam Airlines Raises Alert Level of Flights to Europe
National flag carrier Vietnam Airlines said it will intensify security measures to ensure safety for flights to Europe as well as protect people and properties following bomb attacks in Brussels on March 22.
Currently, Vietnam Airlines is operating 29 weekly flights to Europe including 11 flights to Paris, eight to Frankfurt, five to London and five to Moscow.
Australia Firm Invests in Hi-Tech Agriculture in Kon Tum
Vietnam’s KPA and Australia’s 4 Ways companies have kicked off an agricultural project to transfer techniques for hi-tech seed production in the Central Highlands province of Kon Tum, according to VOV.
Vice Chairman of the provincial People’s Committee Nguyen Huu Hai said Kon Tum welcomed the investors and pledged to create the best possible conditions for them to carry out their project.
FDI Attraction in Dong Nai Triples in Q1
The southern province of Dong Nai attracted $448 million of foreign direct investment (FDI) in the first three months of this year, an increase of 311% against the same period last year and accounting for 48.8% of the yearly plan, the Vietnam News Agency reported.
Of the figure, over $190.5 million was registered to 21 new projects and the remaining $297.4 million went into 21 existing projects, according to the provincial Department of Industry and Trade.
Vietnam has been ranked second, only after Myanmar, in the Southeast Asian region regarding the level of investment attractiveness, according to Grant Thornton’s “Vietnam Private Equity Report 2016.”
Up to 86% respondents forecast that the level of investments will increase in the next 12 month.
Although the results were unchanged in comparison to that of Q2-2015, the number of participants citing “Significant increase” has risen from 7% to 11%.
The State Bank of Vietnam (SBV), the country’s central bank, should further loosen the monetary policy to cool down interest rates which have been on the rise since the end of 2015, experts have said.
Disbursements of foreign direct investment in Vietnam reached $60.5 billion in the 2011-2015 period, rising 35.6% from the previous five-year period. FDI approvals for fresh and operational projects slid to $99 billion.