Welcome to the 6th issue of BDG Asia’s Vietnam Weekly News Wrap-Up. Every week, we track major trends and issues unfolding in this fast-growing country. In this newsletter, we provide weekly overviews of the news stories that matter to us and our clients.
We start with a selection of general news, and then specific stories relating to the major industries we track: manufacturing, commerce and technology.
GENERAL NEWS
Economists balk at Vietnam’s ‘overly-generous’ FDI incentives
Ngan Anh, Thanh Nien, 02-August
– Many economists are concerned that Vietnam’s attractive FDI incentives allow “foreign companies to exploit cheap resources, while doing little to help Vietnam increase its technological capacity.” Although these concerns are reasonable, the article paints an overly negative picture and fails to account for the positive change brought about by the influx of foreign enterprise.
Foreign investment concerns addressed
Nhan Dan, 05-August
– The number of FDI projects registered has decreased but disbursement capital, industrial production and export revenue still keep stable.
Growing healthcare spending in Southeast Asia brings opportunity
Will Greene, BDG Asia, 07-August
– Fast-growing healthcare spending across Southeast Asia creates big opportunities for medical device, pharmaceutical and healthcare services companies.
GDP grows significantly: HSBC
Vietnam Investment Review, 07-August
– Increasing internal demand and recovering manufacturing sector will boost Vietnam’s economy.
MANUFACTURING
Ministry suggests unprecedented incentives for supporting industries in Vietnam
Thoai Tran, Tuoi Tre, 04–August
– To boost supporting industries in Vietnam, the ministry plans to offer tax exemption, land rent reduction, funding for training and other generous incentives.
Vietnam aquatic products stay strong in global market
Vietnam Plus, 05-August
– Vietnam aquatic product exports keeps growing thanks to high quality and enormous demand in US, EU.
Foreign breweries tap Vietnam’s draft beer market
VOV, 05-August
– To deal with heavy competition in the package beer market, foreign players decide to diversify their portfolio in Vietnam by entering the draft beer market.
COMMERCE
Soft drink dodges consumption tax
Vietnam News, 05-August
– After receiving strong objections, the suggestion of applying tax on fizzy soft drinks has been excluded in the final draft law.
Tourism property investors complain of risks
Vietnam Net, 06-August
– Complicated administrative process and fluctuations in market trend restrain tourism investors.
Vietnamese supermarkets restrained by bikie culture
Tareq Muhmood, cited by Sai Gon Giai Phong, 07-August
– The major use of motorbikes in Vietnam creates many idiosyncrasies that retailers should heed if they want to operate in this market.
TECHNOLOGY
Digital signature service market saturated, competition stiffer
Vietnam News, 03–August
– The oversupply in the digital signature market forces players to diversify and improve their services to increase market share. These services are especially interesting because they can facilitate online tax payments.
Vietnam to have 19 IT focus areas by 2020
Vietnam Plus, 05-August
– By planning more IT specialized zones, Vietnam wants to improve investment environment and move up the IT value chain.
Fluctuations in Vietnam’s e-commerce market
Twenty, 05-August
– Big investments from large companies are boosting and generating excitement in Vietnam’s e-commerce market.
