[Round-up] Vietnam GDP Growth Seen at 6.3% in 2016-2018, Japan Eyes Investment in Agriculture

Tuan Minh

17:57 09/06/2016

BizLIVE - Vietnam’s economy is projected to grow 6.3% in the coming three years. Dozens of Japanese firms operating in the areas of agriculture, farm produce processing, and agricultural machinery manufacturers have shown interest in investment opportunities in Vietnam.

[Round-up] Vietnam GDP Growth Seen at 6.3% in 2016-2018, Japan Eyes Investment in Agriculture

Vietnam’s economy is projected to grow 6.3% in the coming three years.

Vietnam, South Korea Hold Policy Dialogue on ODA
A policy dialogue on official development assistance (ODA) between Vietnam and South Korea was held in Hanoi on June 8, according to the Vietnam News Agency.
Vietnam’s 2016-2020 socio-economic development plan, medium-term public investment plans, and several laws were introduced at the event, along with the South Korea’s new regulations and policies on development cooperation and ODA.
Hanoi Stops Issuance of $178 Million in Bonds
Hanoi has stopped the issuance of bonds worth four trillion dong ($177.8 million), which were to be used for municipal development in 2016.
Hanoi State Treasury Director Dao Thai Phuc said although the local People’s Council had adopted the issuance of the five-year bonds, it was then stopped to save costs, reduce public debts and avoid capital dispersal in capital construction.
Air Route Linking Vinh to Bangkok Launched
A new air route linking Vinh city in the central province of Nghe An to Thailand’s capital city of Bangkok was launched on June 8, with three to four flights each day to be operated, VNA reported.
The route will promote links among Nghe An, Thanh Hoa and Ha Tinh provinces in building local and international tourism products and marks a new step of development in localizing Thailand-bound tours via direct flights from the province to Bangkok.
Japanese Businesses Eye Investment in Vietnam Agriculture
A workshop on opportunities in agriculture and investment cooperation between Vietnam and Japan was held by the Consulate General of Vietnam in coordination with Japan’s Kokorozashi Network in Osaka, Japan on June 7.
Participants to the event were representatives of 45 Japanese enterprises, operating in the areas of agriculture, farm produce processing, and agricultural machinery manufacturers who are eager to learn about investment opportunities in Vietnam.
According to Japan’s leading bank Sumitomo Mitsui (SMBC), Japanese and Vietnamese enterprises should form business affiliations in accordance with food value chains from production to processing, sales and exports.
Three Int’l Trade Expos Kick off Together in HCM City
The Vietnam International Retail and Franchise Show (VIETRF), the 2016 Korea Sourcing Fair and the 2016 Vietnam International Coffee & Dessert Fair were kicked off together at the Saigon Exhibition & Convention Center (SECC) in Ho Chi Minh City on June 8.
VIETRF has attracted more than 250 exhibitors from 14 countries and territories worldwide who are franchisers and retailers in different fields, such as food & beverage, education & training, beauty & health, fashion & accessories, home products, electronics and gifts & toys.
Credit in Vietnam Predicted to Grow at Faster Pace
Credit would increase faster in the next few months thanks to new regulations on lending, VNA cited experts as forecasting.
This year, the government is targeting a credit growth between 18% and 20%. However, lending rose only 4% by the end of April and then slipped back to about 3.8% by the middle of May.
However, after the issuance of new lending regulations recently, Bao Viet Securities Company forecast that lending in both the dong and the U.S. dollar would receive a boost in the next few months.
Vietnam Wood Exports Likely to Hit $7 Billion This Year
Vietnam is expected to rake in over $7 billion from exporting wood furniture this year as it has raw materials of legal origin and skilled and low-cost labor force, said Huynh Van Hanh, vice chairman of the Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA).
Wood and wood-based product exports increased 2.08% year-on-year to $2.68 billion the first five months of this year, according to data from the Ministry of Industry and Trade.
VietJet Air CEO Named among World’s 100 Most Powerful Women
Nguyen Thi Phuong Thao, which runs low-cost airline VietJet Air and holds a majority stake in Sovico Holdings, has been listed by Forbes among the 100 most powerful women.
The government of Vietnam’s central province of Binh Dinh has asked Thailand’s PTT Group and Saudi Aramco to finish details of a plan to invest in a $22-billion petrochemical complex by the end of this month.
If they fail to meet the deadline, they will have to quit from the project and hand over the land already allocated to them, local website Zing News cited Nguyen Ngoc Toan, deputy director of the Nhon Hoi Economic Zone Management Board.
Vietnam’s gross domestic product (GDP) is projected to expand an average of 6.3% in the coming three years, the World Bank (WB) has said in the latest update of its “Global Economic Prospects” report.
All categories of demand will be buoyed by strong foreign direct investment, growing exports of manufactures, and solid labor markets, the report says, noting that Vietnam and the Philippines have the strongest growth prospects among the large developing ASEAN economies.
Foreign investors have put a combined $147.6 billion in 7,450 projects in industrial parks (IPs) and economic zones (EZs) in Vietnam as of the end of May 2016, according to data from the EZ Management Department under the Ministry of Planning and Investment.
Domestic companies have registered to invest a total of 1,180 trillion dong ($52.5 billion) in IPs and EZs.
Vietnamese people’s popular drinking culture has made the country the second most profitable market for Heineken, only after Mexico on profitability, according to the company's Asia Pacific President Frans Eusman.
With such potential, the Dutch beverage giant has identified Vietnam as the next key driver for its growing Asia-Pacific business, as it becomes more difficult to squeeze profits from Africa, the Middle East and parts of Europe.