[Round-up] Vietnam Sees Slower GDP Growth, Higher Business Confidence

Tuan Minh

20:42 28/06/2016

BizLIVE - Vietnam’s economic growth slowed to 5.52% in the first half of this year from 6.32% a year ago while the number of new businesses and investments increased.

[Round-up] Vietnam Sees Slower GDP Growth, Higher Business Confidence

Vietnam's GDP growth slowed to 5.52% in the first half of this year.

HCM City Asks for Particular Mechanism to Facilitate Development
Ho Chi Minh City needs a particular mechanism in order to fulfill its role as an economic locomotive of the country, Politburo member and Secretary of the municipal Party Committee Dinh La Thang said at a working session with PM Nguyen Xuan Phuc on June 27.
Such a mechanism should be implemented on a trial basis and improved during the process, Thang added.
Vietnam Garment Industry Moves to Weather Possible Brexit Influence
Vietnam’s garment-textile industry has already taken possible Brexit influence into account while conjuring up measures to weather its possible negative impacts, the Vietnam News Agency (VNA) reported.
Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association (Vinatas), said Brexit will definitely have impacts on garment and textile exporters due to the devaluation of the pound and the euro, which influence prices.
Business Confidence on the Rise after Laws Passed
Significant increases in the number of new businesses and investments this year indicate improvements in confidence, driven by the government’s efforts to improve the business climate and promote entrepreneurship, according to VNA.
According to Bui Anh Tuan, deputy director of the Business Registration Department under the Ministry of Planning and Investment, more than 54,500 new firms were established in the first six months of this year, with total registered capital of 427.7 trillion dong ($19.1 billion), rising by 20% and 51% over the same period last year, respectively.
Quality Improvement Key for Farm Produce Exporters to EU
Meeting the EU’s quality standards and demands in corporate social responsibility is key for Vietnamese exporters of agricultural products to succeed in the European market, experts said at a conference held by the Vietnam Chamber of Commerce and Industry (VCCI) in Hanoi on June 28.
Many economists at the event agreed that so far, domestic firms have yet to make good preparation to tap all benefits from the EU-Vietnam free trade agreement (EVFTA), including advantages in tariff.
PetroVietnam Earns $2.4 Billion in H1
Vietnam National Oil and Gas Group (PetroVietnam) garnered more than $2.4 billion from selling 8.68 million tons of crude oil and condensate in the first half of this year, fulfilling 37.15% of the year’s target.
During the reviewed period, the group provided an estimated 3.73 million tons of crude oil for the Dung Quat Oil Refinery, raking in $1.58 billion, equivalent to 38.13% of the target set for the whole year.
Vinh Phuc Rakes in $802 Million in Export Revenue
The northern province of Vinh Phuc, home to factories of Honda and Piaggio, grossed $802 million in export revenue in the first six months of 2016, a year-on-year rise of 10.1%, VNA reported, citing the provincial Department of Industry and Trade.
Domestic businesses recorded $27.2 million in export turnover, rising 22.1% year-on-year, while foreign invested firms raked in $775 million, up 9.7%.
Vietnam Fetches $15 Billion from Agri-Forestry-Fishery Exports
Vietnam earned $15.05 billion from shipping agriculture-forestry-fishery products in the first six months of 2016, up 5.4% from a year earlier, data of the Ministry of Agriculture and Rural Development showed.
Of which, farm produce exports increased 5.1% year-on-year to $7.32 billion while fishery exports rose 3.8% to $3.07 billion.
Liaison Board Set up to Link Vietnamese Businesses in New Zealand
The liaison board of the Vietnamese business association in New Zealand was officially established during a meeting with Vietnamese businesses operating in the country jointly held by the Vietnamese Embassy in New Zealand and the Ministry of Industry and Trade, according to VNA.
The five-member board will give support and share business opportunities among Vietnamese enterprises in the host country while serving as a bridge to connect those businesses with local firms. It also works to bring New Zealand businesses to Vietnam.
Vietnam’s gross domestic product (GDP) has grown 5.52% on an annual basis in the first six months of this year to 1,879.87 trillion dong ($83.55 billion), slowing from a 6.32% expansion in the same period of last year, according to data of the General Statistics Office (GSO).
The local economy expanded 5.48% in the first quarter of this year and 5.55% in the next three months, the government-run office said in a statement on Tuesday.
Singapore-headquartered flour miller Interflour has started the construction of a malting plant in Vietnam, in a bid to capitalize on Vietnamese people’s beer drinking habit, according to the Weekly Times.  
The malting plant will be the first in Vietnam as well as in Southeast Asia, as traditionally it has been difficult to malt in the tropics.
Vietnam finds it hard to attain an economic expansion of 6.7% targeted for 2016 as its economy faces a large number of destabilizing factors, said senior economist Truong Dinh Tuyen at a workshop on June 26.
Among the troubles Vietnam is confronting are budget imbalances, swelling public debt and rising fiscal deficit, added Mr. Tuyen, who headed the Vietnamese negotiation teams for the entry into the World Trade Organization (WTO) and Trans-Pacific Partnership (TPP).