Dec. 4 – The World Bank (WB) released its bi-annual assessment of Vietnam’s economy Monday, projecting that the country’s macroeconomic stability will continue to improve considerably in the medium-term.
The report entitled The Taking Stock estimates that Vietnam’s GDP will continue to grow 5.5 percent by 2015. If the country continues to move forward with planned structural reforms aimed at strengthening its market economy, however, Vietnam’s economy can expect even larger gains. Continue reading
Oct. 25 – According to the International Air Transport Association, over the next year Vietnam should become the world’s third-fastest growing market for international passengers and freight. It will also be the second-fastest growing market for domestic passengers.
In addition, Vietnam’s Department of Aviation has predicted that the country will see an increase of 15 percent in domestic passengers in 2013 (over double last year’s 7 percent growth rate).
The Vietnamese airline industry is currently quite small, but it is poised for massive growth with the domestic airlines planning to either double or even triple their fleets as they seek to service the country’s 90 million plus citizens over the next few years. Further, the fast growing tourist industry has been increasing at a 20 percent rate year-on-year. Continue reading
Oct. 14 – Vietnamese garment makers are further intensifying their competition with Bangladesh as it seeks to take an even larger portion of the global clothing market thanks to being on the cusp of being placed within the U.S.-based generalized system of preferences (GSP).
Specifically, the GSP is a trade privilege scheme which has been described by the Office of the United States Trade Representative as “a program designed to promote economic growth in the developing world by providing preferential duty-free entry for up to 5,000 products when imported from one of 127 designated beneficiary countries and territories.” Continue reading
Sept. 26 – The new issue of Vietnam Briefing Magazine, titled Manufacturing in Vietnam to Sell to ASEAN and China, is out now and will be temporarily available as a complimentary PDF download on the Asia Briefing Bookstore for a limited time only.
As many international manufacturing enterprises are now looking to expand or relocate their China operations into alternative markets to capture new opportunities or hedge their China risk, the search is currently on to find Asia’s new emerging market darling for foreign investment. In this area, one of the most talked-about regions offering promising prospects is the Association of Southeast Asian Nations (ASEAN). And what better place to start than Vietnam – an already booming Southeast Asian nation. Continue reading
Sept. 4 – A number of Asian firms have begun to eye Vietnam as a potential “Blue Ocean” market thanks to the country’s emerging retail sector and the annual growth rate of its consumer goods trade (which hovers around 23 percent).
Vietnam’s growth is much higher in comparison to the growth rates throughout the rest of the Asia-Pacific region, which currently top out at around 12-15 percent.
Vietnam, a relatively large market of around 90 million people – the majority of which is made up of young consumers – currently has no major players in the retail sector. The largest retail chain in the country is called Shop & Go, which only has a total of 70 stores throughout the entire country. Continue reading
Aug. 13 – Vietnam’s Ministry of Construction has recently proposed to relax its real estate laws in order to allow a greater amount of foreigners and foreign organizations to buy property in the country as part of an effort to reduce real estate inventory.
Specifically, the Ministry proposed that organizations such as foreign investment funds, banks, Vietnamese branches and representative offices of overseas companies, in addition to foreigners with valid Vietnamese visas, be allowed to buy homes (i.e., apartments, independent houses and town houses/villas that are no bigger than 500 square meters).
Furthermore, the proposal pushes to allow such foreign buyers to lease their properties to other individuals or sell their properties 12 months after obtaining an ownership certification – something that is currently not allowed. Continue reading
May 10 – The residents of Phan Thiet City in Vietnam’s central Binh Thuan province can soon expect an influx of tourists as a new airport is built in the area, scheduled for opening in 2017. Plans for the airport have already been submitted to the central government for approval.
The airport, which reportedly will cost over VND5.6 trillion (US$265 million) to build, and which will span around 500 hectares (1235 acres), will be located in Thien Nghiep – a coastal area near Mui Ne Beach.
Initially, its facilities and landing areas will only be able to accommodate smaller planes and helicopters, providing services to over 500,000 passengers annually. Also, it is expected to offer 12 air routes of distances under 800 kilometers (500 miles) on top of 12 services of distances below 2,000 kilometers (1,200 miles). Continue reading
May 10 – The new issue of Asia Briefing Magazine, titled An Introduction to Development Zones Across Asia, is out now and will be temporarily available as a complimentary PDF download on the Asia Briefing Bookstore throughout the months of May and June.
The use of development zones in their different guises has been an effective model essentially brought to prominence by China over the past 25 years to help both foreign investors and domestic companies meet in a relationship that provides tax advantages to both. Development zones typically permit the foreign investor to bring component parts into a country for assembly without having to pay import duties. Investors may then add in locally-sourced components, assemble the final product, and warehouse it all duty free before then having the option of exporting the finished product (collecting some VAT rebates on the locally sourced portion) or entering the domestic market with a product assembled at local labor costs. Continue reading
May 9 – After a 15-month hiatus, Vietnamese produce exporters are now allowed to resume shipments of fruits and vegetables to the European Union (EU) after Vietnam’s plant protection department agreed to re-issue quarantine certificates.
Exports will resume as normal starting June 30.
Vietnam’s plant protection department stopped issuing certificates in March 2012 in an effort to prevent certain exported fruit (such as blue dragon or grapefruit) from being added to the EU’s blacklist after Vietnamese basil, sweet pepper, celery, bitter gourd and coriander failed to meet the EU’s food hygiene and safety regulations. The EU threatened to ban all Vietnamese produce if they found five more batches that were in violation of their regulations. Continue reading
May. 3 – Following the relevant customs procedures when importing or exporting goods from Vietnam is one of the most vital aspects of doing business in a country where manufacturing costs are leveraged to its favor. Goods to be imported or exported are subject to the relevant customs clearance standards, which effectively check the quality, specifications, quantity and volume of the goods.
Following the standards set by the Vietnamese government, certain imported goods are subject to inspection. For example, imported pharmaceuticals must undergo testing and also include documents detailing product use, dosage and expiration dates (written in Vietnamese), which must also be included in or on the product packaging. Continue reading