[Round-up] Vietnam Aims GDP Growth of 7%, Rules for Establishing VC Funds Eased

Tuan Minh

17:00 12/04/2016

BizLIVE - Vietnam aims its economy to expand 6.5%-7% on average in the coming five years. The Ministry of Planning and Investment is drafting a regulation that will shorten the time needed to set up a venture capital fund to three days.

[Round-up] Vietnam Aims GDP Growth of 7%, Rules for Establishing VC Funds Eased

The Vietnamese Ministry of Planning and Investment is drafting a regulation that will shorten the time needed to set up a venture capital fund to three days. (Photo: www.indiafilings.com)

Vietnam Aims at GDP Growth of 6.5%-7% in Next 5 Years
Vietnam’s economic growth is targeted at 6.5%-7% in the upcoming five years and GDP per capita at $3,200-$3,500 by 2020, according to a National Assembly resolution approved on Tuesday morning.
The fiscal deficit will be brought down to 4% of GDP by 2020 while total investment should be equivalent to 32%-34% of GDP on average, says the resolution.
Italy Firms Learn about Vietnam’s Market Potential
Italy will benefit most from the EU-Vietnam Free Trade Agreement (EVFTA), former Italian Prime Minister Enrico Letta commented at a seminar held recently in the northern Italian city of Milan.
He suggested Italian firms change their business approach by not only focusing on manufacture in Vietnam for export to Europe but also gearing towards consumption in the country, the Vietnam News Agency (VNA) reported.
At the event, the Association of Vietnamese Entrepreneurs in Italy and the Italy –Vietnam Chamber of Commerce signed a cooperation agreement under which both sides will serve as a bridge for Vietnamese and Italian firms via information update, legal assistance and market survey.
Remittances to HCM City Reach $1.15 Billion in Q1
Inward remittances to Ho Chi Minh City are estimated to have reached $1.15 billion in the first quarter of this year, little changed from the same period of 2015, local media cited Deputy Director of the State Bank of Vietnam (SBV)’s HCM City branch Nguyen Hoang Minh as saying.
The remittances to the city in the period did not see a jump because dollar holders were still waiting to see the effect of the SBV’s recent policies before deciding on channels to invest in, he explained.
Vietnam’s South Takes Lead in Attracting FDI
Vietnam’s southern region has received $1.7 billion worth of foreign direct investment (FDI) in the first quarter of 2016, VNA cited the Ministry of Planning and Investment’s Foreign Investment Agency as saying.
The sum accounted for 51.6% of the total FDI registered in the country, making the region the biggest drawer of FDI attraction as investors bet on the region’s huge potential in developing industries such as hi-tech, IT, oil and gas, in addition to several services in banking, finance and tourism sectors.
Vietnam Firms Want Clear Transport Fees
Businesses in Vietnam appreciated the Ministry of Transport’s move to build a decree to regulate charges of marine transport and port services, said Truong Dinh Hoe, general secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP).
The decree is necessary to boost transparency in seaway transport. It will make it easier for importers and exporters to select shipping companies with quality services, and better control their production and business activities, he added.
Four Edtech Teams Win $90,000 from Topica, Google & Facebook
A total grant of $90,000 from a Google and Facebook-sponsored edtech competition was given to four Vietnamese education startups at the first Edtech Asia Hackathon 2016, held by Topica Edtech Group, according to Deal Street Asia.
Social and emotional learning app Kid REC, developed by Eezy team, won the $80,000 FbStart prize from social network giant Facebook for the best mobile app category.
Music learning platform Muzikator, bedtime technology Somia, and 3D learning app VirtualBook, won $6,000 from Google and Topica, and will have access to Facebook’s Accelerator Track programmer as well as the tickets to Edtech Asia Summit in Bangkok.
Vietnam Eases Rules for Establishing VC Funds
Vietnam’s Ministry of Planning and Investment is drafting a regulation that will shorten the time needed to set up a venture capital (VC) fund to three days, in a bid to boost the startup investment ecosystem.
VC fund must not comply with the regulations for securities investment funds, according to the draft regulation.
VinaCapital Group, the largest fund manager in Vietnam, and Hong Kong-based Chow Tai Fook will jointly kick off the construction of a $4-billion casino complex in the central coastal province of Quang Nam on April 23, according to the Dau Tu (Investment) newspaper.
The first phase of the Nam Hoi An project will be built on an area of 160 hectares and cost some $500 million. It will comprise of facilities for lottery games, a golf course, villas and high-end apartments.
Taiwan-based E-United Group has shown interest in returning to a multi-billion-USD steel project in the central province of Quang Ngai that it abandoned last year due to a lack of financial capability, the Dau Tu (Investment) newspaper reported.
The newspaper cited a source familiar with the issue as saying that the Dung Quat Economic Zone Authority and E-United Group had a meeting last week, but nothing has been decided yet as the Guang Lian project is under scrutiny.
An estimated 66.54 trillion dong ($2.97 billion) will be disbursed this year for transport projects in Vietnam, of which 32 trillion dong will come from non-state sources, according to the Ministry of Transport.
Consumer Awareness Puts Pressure on Businesses in Vietnam: Swedish Ambassador
Consumer awareness is, among other factors, putting a pressure on businesses in Vietnam and elsewhere to strengthen their efforts to comply with international corporate social responsibility (CSR) standards to stay attractive from a consumer’s point of view, said Swedish Ambassador in Vietnam Camilla Mellander.
“We should ensure that trade does not happen at the cost of the environment or of people’s rights. Businesses in Vietnam should be aware of the importance of CSR compliance, as committed by the Vietnamese government in the EVFTA. Money isn’t blind anymore,” the ambassador said at a workshop on the EVFTA in HCM City today [April 12].