[Round-up] Vietnam Aims at 7% GDP Growth This Year, PMI Dips in February

Tuan Minh

07:59 02/03/2016

BizLIVE - The Vietnamese government aims at reaching a 7% GDP growth rate this year, above the target of 6.7%. The country’s PMI slid to 50.3 in February from 51.5 in January.

[Round-up] Vietnam Aims at 7% GDP Growth This Year, PMI Dips in February

The Vietnamese government aims at reaching a 7% GDP growth rate this year, above the target of 6.7%.

Vietnam Govt Strives for 7% Economic Growth This Year
Vietnamese Prime Minister Nguyen Tan Dung has asked ministries to lift the national GDP growth target to over 7% this year from the National Assembly-approved 6.7%.
The prime minister also called for greater efforts to quicken official development assistance (ODA) disbursements to spur socio-economic growth as $22 billion in ODA committed by donors remains undisbursed.
Vinh Phuc Authorities License Five FDI Projects
The authorities of the northern province of Vinh Phuc granted investment licenses to five foreign direct investment (FDI) projects and approved two projects to increase capital with a total registered capital of $60 million in the first two months of this year.
Most of the new projects operate in the sectors of garments, export – import and electronic accessories.
The province aims to attract $200 million in FDI this year.
Vietnam Banks Raise Deposit Rates
A number of Vietnamese commercial banks have hiked its maximum deposit rates from 7.5% per year to a two-year high of 8% after injecting large quantities of cash into the economy last year.
According to the Vietnam News Agency, experts are concerned that this trend could initiate a rate hike race among banks to attract depositors. The deposit rate hike could also cause lending rates to rise.
Vietnam Finance Ministry Clarifies Tax Rate
The Ministry of Finance said a bad translation claiming that the tax-rate-to-profit ratio in Vietnam was high, accounting for nearly 40% of profit and undermining competitiveness, caused misunderstandings.
The clarification came out after local media said that firms in Vietnam had to spend nearly 40% of profit in paying taxes and fees.
The ministry cited statistics showing that the ratio of budget collection against GDP of Vietnam was 23.3% during the 2011-2015 period, in which collection from taxes and fees was 20.9%. If revenue from crude oil was excluded, Vietnam’s tax-to-GDP ratio would be 17.2%.
Vietnam Labor Productivity Gap Widens
The gap between Vietnam’s worker competitiveness and productivity with that of other nations’ has continued to widen throughout 2015, according to a recent report of the International Labor Organization (ILO).
Vietnam’s labor productivity is now among its lowest ranked tier in the ASEAN region, VOV cited the organization as saying.
Labor productivity in Vietnam is just one-fifteenth that of Singapore, one-fifth that of Malaysia and two-fifths that of Thailand, resulting in the workers being grouped in the lowest tier alongside three other nations.
HCM City Pledges Favorable Conditions for Investors: Party Leader
Ho Chi Minh City will speed up administrative reform to create optimal conditions for businesses, Secretary of the city’s Party Commission Dinh La Thang told representatives from Singapore’s Temasek Holdings on February 29.
HCM City wishes to receive feedback from investors and enterprises in order to improve local investment climate, he said, adding that businesses can call hotlines of the city or local departments and agencies if they have any concerns.
Tokyo Gas Plans Expansion in Ha Nam
Tokyo Gas Co., Japan’s largest gas company, plans to build a new industrial gas depot in Dong Van III Industrial Zone in Duy Tien district of the northern province of Ha Nam.
The firm’s representatives made the revelation on March 1 at a due diligence meeting with provincial leaders, discussing the specific details of the Japanese companies plan to expand its operations into Southeast Asia.
HCM City to Host Saigon Autotech & Accessories Show 2016
Nearly 700 local and foreign businesses will participate in the 12th Saigon International Autotech & Accessories, which is scheduled for May 26-29 at the Saigon Exhibition and Convention Center (SECC), HCM City.
The event is organized by the Asia Trade and Business Promotion (Holdings) and ChanChao International Co, Ltd under the sponsorship of the Vietnam Chamber of Commerce and Industry (VCCI).
Vietnam PMI Dips to 50.3 in February, vs. 51.5% in January
The headline Nikkei Vietnam Manufacturing Purchasing Managers’ Index (PMI), a measure of manufacturing performance, slid to 50.3 in February, down from 51.5 in January but remaining above the 50.0 neutral mark.
Vietnamese manufacturing output increased for the third month running, albeit only slightly and at a weaker pace than in January, Nikkei and Market said in a joint report on Tuesday, adding that inventories of both purchases and finished goods decreased solidly.
Vietnam’s state budget deficit was equivalent to 6.1% of gross domestic product in 2015, far exceeding the initial target of 5%, according to the Vietnamese government.
A plant in Dong Nai province operated by Taiwan’s Pou Chen Group returned to normal on Monday after the giant contract footwear manufacturer conceded some demands of its workers who went on strike during three days.
All workers were back at work after the company agreed to protesters’ requests to suspend the implementation of a new manpower management policy and pay them wages for the three days they were on strike, said Nguyen Minh Quang, head of the Pou Chen Vietnam Footwear Plant Workers’ Union.