Vietnam Market Watch: Russian Investment, US Trade, and the Rise of Innovation
Vietnam / EAEU FTA Produces US$10 Billion In Russian Investments
The Free Trade Agreement signed between Vietnam and the Eurasian Economic Union (EAEU) has resulted in Russia announcing US$10 billion worth of deals with Vietnam. The EAEU is a trade bloc between Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia, and has a GDP of US$2.2 trillion.
Russian President Vladimir Putin has announced that Russia and Vietnam have agreed on more than 20 high-profile joint investment programs, following a bilateral meeting with Vietnamese counterpart Tran Dai Quang in Moscow.
Vietnam – US Increasing Trade Relations
In May 2017, Vietnam and the US signed business deals worth US$8 billion. The majority of the deals were for aircraft engines and development of power generation capabilities, along with hospitality, science and technology, academia and energy. The deals are predicted to create more than 23,000 American jobs and help in reducing the US trade deficit with Vietnam, which stood at almost US$32 billion in 2016. To sustain its export-driven economy and minimize the effects of US withdrawal from the TPP, Vietnam is pushing for increased trade relations with the US, its largest export market.
Vietnam Climbs 12 Places in Global Innovation Index
In the recent Global Innovation Index 2017, Vietnam jumped 12 places to 47th among 127 economies, its highest ranking in the last 10 years. The index aims to capture different factors of innovation by providing a rich database of detailed metrics for 127 economies. Among the Southeast Asian countries, only Singapore and Malaysia outranked Vietnam. The country’s impressive growth is being attributed to its improved business environment and competitiveness. Vietnam also leads the group amongst the 27 lower-middle income economies. Over the last five years, Vietnam has recorded an impressive growth in rankings from 76th place in 2013 to 71st in 2014, 52nd in 2015, 59th in 2016 and 47th in 2017.
HCMC City Attracts US$ 2.15 billion FDI in Six Months
In the first half of 2017, the city has attracted US$2.15 billion in foreign direct investment (FDI), double the amount from the same period last year. Major sectors that attracted investments include the processing and manufacturing sector, followed closely by wholesale and retail. Other sectors include automobile and motorbike maintenance businesses along with the information and communications industry. Looking forward, investment into the city will continue to surpass previous levels, driven by growing working age population, investor friendly policies, and slow but steady transition to high-value manufacturing.
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An Introduction to Doing Business in Vietnam 2017
An Introduction to Doing Business in Vietnam 2017 will provide readers with an overview of the fundamentals of investing and conducting business in Vietnam. Compiled by Dezan Shira & Associates, a specialist foreign direct investment practice, this guide explains the basics of company establishment, annual compliance, taxation, human resources, payroll, and social insurance in this dynamic country.
Managing Contracts and Severance in Vietnam
In this issue of Vietnam Briefing, we discuss the prevailing state of labor pools in Vietnam and outline key considerations for those seeking to staff and retain workers in the country. We highlight the increasing demand for skilled labor, provide in depth coverage of existing contract options, and showcase severance liabilities that may arise if workers or employers choose to terminate their contracts.