Vietnam News Highlights for July 8, 2023

Standard Chartered forecasts Vietnam’s economic recovery in H2 

Standard Chartered forecasts Vietnam’s economic recovery in H2. Photo: Dinh Vu Port

Standard Chartered Bank has predicted that Vietnam's economy will rebound in the second half of the year, with growth expected to reach 7% year-on-year. According to the bank's latest macroeconomic updates, the sustained improvement in trade data since the beginning of the year point to a more pronounced recovery in the second half.

However, despite some slight improvements in macroeconomic indicators, the trade contraction remains deep, leading to subdued manufacturing and economic activity. As a result, the bank has lowered Vietnam's GDP growth forecast for 2023 to 5.4% and revised down the inflation forecast to 2.8%. The country needs to resume rapid GDP growth and develop its infrastructure to revive FDI inflows.

MOUs signed at 7th Singapore Regional Business Forum

Twelve Memoranda of Understanding (MOUs) were signed at the 7th Singapore Regional Business Forum held in Hanoi on July 7.

The signing ceremony was attended by over 800 business leaders and senior government officials from more than 420 companies and organizations. It covered topics such as sustainability, digitalization, financial services, and human resources development. The event marked the 50th anniversary of diplomatic relations and the 10th anniversary of the strategic partnership between Vietnam and Singapore. In 2022, bilateral trade turnover reached $9.2 billion, an increase of 11.6% year-on-year.

Japanese, Vietnamese companies partner on Long Thanh  Airport  project

The Airports Corporation of Vietnam (ACV) on July 7 partnered with contractors Japan Airport Consultants Inc. and Vietnamese firm Consultant and Inspection (Coninco) in the execution of Package 5.12 worth VND630 billion (US$26.6 million) to supervise the design and construction of passenger terminals in 33 months. The companies vowed to do their best to complete the work on time, and ACV promised to provide the best conditions for the two contractors.

Fresh Vietnamese lychees on Thai supermarket shelves

Fresh lychees from the northern province of Bac Giang will be sold in Gourmet Market supermarkets, part of The Mall Group, a leading supermarket chain specializing in food, groceries and household items in Thailand. VIFOCO Import-Export JSC officially exported its first batch of lychees to Thailand on July 7.

In addition to lychees, The Mall will sell Vietnamese mangoes in Thailand next year. Thailand currently allows importing four types of fruits from Vietnam, including dragon fruit, mangoes, longans, and lychees.

Vietnam imported 8.2 million tons of animal feed ingredients in H1

Vietnam imported 8.2 million tons of animal feed and ingredients worth US$3.4 billion in the first half of the year, down 3.3%, according to the Ministry of Agriculture and Rural Development. The decline was due to the increase in the price of imported feed ingredients, prompting local companies to seek domestic feed sources as substitutes. The prices of feed ingredients and finished feed will continue to decline until the end of 2023 and the beginning of 2024.

New trading accounts hit 10-month high of more than 145,800 in June

More than 145,800 new trading accounts were opened in June, the highest in 10 months and an increase of 45,000 accounts on a monthly basis, statistics from the Vietnam Securities Depository show. June was also the second month that the number of new trading accounts rose sharply after bottoming out in April. The sharp increase in new accounts came after the central bank cut interest rates for the fourth time this year, driving a huge amount of money from savings into the stock market.

Nine social housing projects started in H1: Ministry of Construction

According to the Ministry of Construction, only nine social housing projects were inaugurated in the first half of the year, providing nearly 18,800 apartments. The projects are located in Hanoi, Haiphong, and three provinces of Lam Dong, Bac Giang, and Binh Dinh. The Vietnam Bank for Social Policies has disbursed VND6.2 trillion (US$262 million) to some 15,000 borrowers to purchase affordable housing and renovate their homes.

As of June 18, Vietnam had completed 41 affordable housing projects, providing more than 19,500 units. The government aims to build one million affordable houses by 2030.

Over US$54.9 million to support district and commune mergers

The Ministry of Interior has proposed an estimated total expenditure of VND1.3 trillion (US$54.9 million) from the central budget to support localities undergoing district and commune mergers.

On July 6, Minister of Interior Pham Thi Thanh Tra submitted a proposal to the National Assembly Standing Committee on the territorial reorganization of district and commune administrative units until 2030. There are 33 districts and 1,327 communes nationwide that need to be merged. Funding will come from local budgets, and the central budget will only provide one-time support to localities.

Three Vietnam UNESCO heritage sites among top 16 worldwide

Phong Nha-Ke Bang National Park. Photo: Wanderlust

The British travel magazine Wanderlust has named Ha Long Bay, Hoi An Ancient City and Phong Nha-Ke Bang National Park among the top 16 UNESCO World Heritage Sites in Southeast Asia.

Wanderlust also named 13 other sites in Southeast Asia, such as Singapore Botanic Gardens, Luang Prabang (Laos) and Gunung Mulu National Park (Malaysia), among others.

Ban on US live-action film irrevocable: Vietnam authorities

Vietnam maintains its irrevocable ban on the American live-action film Barbie, despite the producer's assurances on July 6 that the dashed line in the trailer had nothing to do with national sovereignty. The ban was imposed on July 3 after dashed lines appeared in the movie's trailer. Vietnamese authorities said the dashed lines were related to China's nine-dash line map, which the Chinese government uses to illegally claim ownership of the East Sea (South China Sea).

International firefighting exhibition to showcase modern equipment, machinery

An international exhibition on firefighting will be held at the Friendship Palace in Hanoi on July 19-21. More than 350 safety and firefighting equipment manufacturers from 23 countries and territories will participate in the event, with about 400 booths. Modern fire engines, drones, robots and heat sensors will be displayed at the event. Vietnam will introduce the first national firefighting control center on the occasion. The exhibition will also feature a meeting between businesses, firefighters, and the Ministry of Construction on fire prevention and training for people. The event was held for the first time in 2008.