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Vietnam’s economy records positive growth: In the first half of 2017, Vietnam’s GDP growth was estimated at 5.7%, higher than the 5.5% in 1Q16, according to the General Statistics Office. In terms of econo​mic structure, the agriculture, forestry and fishery sector witnessed growth of 2.7% y-o-y despite the effects of harsh climatic and environmental disasters. The industrial and construction sector grew by 5.8% y-o-y, lower than the 7.1% in 2016 owing to a significant decline in the mining sector. Meanwhile, by end-2Q17, the service sector recorded record growth of more than 6.9% y-o-y, the highest figure since 2012.

Retail sales and international arrivals increase sharply: Vietnam’s retail sales and service turnover in the January-June period soared to 10.1% y-o-y. According to the Vietnam National Administration of Tourism, the number of international tourist arrivals to Vietnam sharply increased by 30.2% compared with the same period last year, reaching more than 6.2 million visitors, as of 2Q17. Amid countries and territories, China remained the leading source with nearly 1.9 million visitors, an impressive growth of 56.7% over the same period in 2016. Russia ranked second in the key source countries for international tourists to Vietnam, rising by 53.4% y-o-y. Recently, the Vietnam Government has extended a visa waiver programme for five European countries – the United Kingdom, Germany, France, Italy and Spain – along with implementing promotions in an attempt to attract more potential markets.

FDI continues upswing: Vietnam lured USD 19.2 billion of FDI in the 1H2017, representing a rise of 54.8% y-o-y. There were 1,183 newly licensed projects worth USD 11.8 billion. FDI disbursement reached USD 7.7 billion, an increase of 6.5% y-o-y. The processing and manufacturing sector attracted the highest capital at USD 9.5 billion, accounting for 49.3% of total FDI, followed by electricity, gas and air conditioning supply at USD 5.3 billion, mining at USD 1.3 billion and the wholesale and retail sector at more than USD 0.9 billion.

Meanwhile, real estate was in the fifth position with a total investment capital of USD 0.7 billion in which 39 project were newly registered, worth USD 0.5 billion. By country, Japan was the largest foreign investor in the period with USD 5.1 billion, followed by South Korea with more than USD 4.9 billion and Singapore with USD 3.5 billion. The largest-scale projects licensed include the USD 2.8 billion Nghi Son 2 power plant (Japan) in Thanh Hoa, Samsung Display Vietnam (South Korea) worth USD 2.5 billion in Bac Ninh and the USD 1.3 billion USD B-O Mon gas pipe project (Japan) in Kien Giang.

CPI to record slower growth in June: Vietnam’s CPI as at late June witnessed growth of 2.5% y-o-y, yet a minor decrease of 0.2% m-o-m. The overall CPI saw an average increase of 4.2% for the first six months in 2017 versus the same period in 2016. Among 11 groups of products and services, the medical and health service sector and the education sector continued to have the highest growth rates, of 47.9% and 10%, respectively, compared with 2016. The CPI in housing and construction materials in the 1H2017 showed an upturn of 4.1% y-o-y. Meanwhile, the remaining groups grew gradually, with the transportation sector and beverages and tobacco products up 8.8% and 1.6%, respectively, for six months of 2017 compared to the same period last year.

Vietnam trade deficit to reach more than USD 2.7 billion: According to the General Department of Vietnam Customs, the country recorded a trade deficit of USD 2.7 billion in the first half of 2017. The import value was USD 100.5 billion, up 24.1% over the same period in 2016, while export revenue was estimated at USD 97.8 billion, up just 18.9% y-o-y. With regard to the major markets, the United States was still the largest export market with USD 19.6 billion, up 9.5% y-o-y, followed by the EU with USD 18.2 billion (up 12.6%) and China with USD 13 billion (up 42.5%). The country’s Asian peers were the key import markets; China had an import value of USD 27.1 billion (up 16.8%), South Korea USD 22.5 billion (up 51.2%) and ASEAN USD 13.6 billion (up 17.6%).

The number of newly registered enterprises to grow: There were 61,276 newly registered enterprises recorded from the beginning of 2017 to end-June, up 12.4% in the number of enterprises and up 39.4% in registered capital compared with the same period in 2017. The capital of each newly established enterprise averaged about VND 9.7 billion, a rise of 24%. In addition, the real estate sector soared by 68.3% in the number of enterprises to more than 2.3 thousand firms, accounting for 3.7% of the total number of new enterprises. The number of enterprises that completed the process for dissolution decreased by 1.2% y-o-y to 5,443 and the number of enterprises that terminated business activity was 37,907 in the first six months of 2017, a marked increase of 21.8% from the same period of 2016.

Source: JLL

Hanoi wishes to learn from experience of Italy’s Milan city in urban construction and development for its programme to become a smart city, said Chairman of the municipal People’s Committee Nguyen Duc Chung at a working session with a EU delegation on June 13.

Hanoi will cooperate with Milan in urban development, focusing on high-tech applications and smart city building, under the World City network, according to Ambassador Bruno Angelet, head of the EU Delegation to Vietnam.

The World City network is an initiative launched by the EU aimed at promoting the exchange of experience and the best practice on regional and urban development policies between EU cities and non-EU peers. Chung said Hanoi prioritises transport infrastructure development, high-quality personnel training and administrative reform. IT will be the main tool used in the city construction and development, he said, adding that city is expected to complete a big data system by 2020.

However, the official said, Hanoi wants to partner with small-and medium-sized enterprises of Europe in general and those of Milan in particular as the city still faces difficulties in building a modern information system.

Hanoi stands ready to facilitate European investors and wants to cooperate with European architects in building roads and bridges, and upgrading ancient houses, he noted.

Italian Ambassador Cecilia Piccioni said Milan is the sixth largest city in the EU in terms of network infrastructure. Following President Tran Dai Quang’s visit to Italy in 2016, the World City network is the next step to advance relations between the two countries and their cities, the diplomat said. Italy and the EU in general hope for more cooperation opportunities with Vietnamese enterprises to build smart and modern cities, she noted.

The project aims to promote the sharing of information and experience in building urban and regional development policies among the participating cities. Addressing the launching ceremony, Ambassador Bruno Angelet, Head of the EU Delegation to Vietnam, said both EU and Vietnam have recognised that developing cities is an important factor in promoting sustainable development in the world.

The EU and its member nations pledged to cooperate with partners in the world to create cooperation opportunities among cities and boost experience exchanges as well as urban solutions to address challenges in sustainable development in partner countries. During the event, senior officials from the four cities of Vietnam, Italy and Slovakia discussed initiatives for smart and green cities.

The World Cities project, worth 700,000 EUR is funded by the European Commission’s Department for Regional and Urban Policy (DG REGIO) in Brussels. The project will be implemented in pilot cities with specific short-term cooperation agenda, including urban innovation (smart city), green technologies (energy efficiency, low carbon development). Concrete actions will be decided upon by participating cities and regions with strong support from the project’s staff and in cooperation with DG REGIO and the EU delegations to the participating nations.

The project is expected to promote market opportunities and create jobs along with pursuing sustainable economic development in the cities, thus strengthening bilateral cooperation for mutual benefits. The project has also been carried out in Australia, Indonesia, South Africa and the Republic of Korea.

Source：Vietnam+ , VietNamNet

Hanoi presented decisions approving investment proposals and investment licences for 48 projects with total registered capital of over 74 trillion VND (3.25 billion USD) on June 25 at the conference themed “Hanoi 2017 – Investment and Development Cooperation”.

At the conference, which attracted representatives from 50 countries and territories and more than 600 domestic and foreign investors, the city and investors also signed 15 memoranda of understanding worth nearly 135 trillion VND (5.94 billion USD).

Speaking at the event, Secretary of the municipal Party Committee Hoang Trung Hai affirmed that Hanoi leaders are aware that the key to the city’s development is to side with enterprises, while considering private economy is a driving force for its economic restructuring.

Chairman of the municipal People’s Committee Nguyen Duc Chung said that Hanoi will take the lead in implementing the Government’s instructions and in building a service administration.

Hanoi always welcomes and wants to cooperate with all investors, businesses, associations, and localities inside and outside Vietnam to boost sustainable development, Chung said.

He added that in the time ahead, Hanoi prioritises attracting investment projects using high and new technologies and clean energies, with a focus on such fields as satellite urban areas, urban railways, belt roads, and car parks.

To attract more investors and talent, Prime Minister Nguyen Xuan Phuc urged Hanoi to take effective action and carry out measures to connect businesses and attract the involvement of residents and both domestic and international enterprises in building the city.

He highlighted Hanoi’s efforts to improve its investment-business environment in the past years, with the city’s provincial competitiveness index (PCI) jumping 10 spots, ranking 14th out of 63 provinces and cities – its highest ever ranking, while its index of public administrative reform also climbed 6 spots.

In the year, nearly 440 trillion VND (19.36 billion USD) was poured into investment projects in the locality.

Source: Vietnam+

HCM City (VNA) – Ho Chi Minh City and US technology giant Microsoft need to boost collaboration in information technology (IT) application and development to improve life quality for citizens in the southern hub.

Secretary of the municipal Party Committee Nguyen Thien Nhan made the statement while receiving Vice President for Public Sector, Asia at Microsoft Stefan Sjostrom in Ho Chi Minh City on June 16.

The city’s top leader lauded Microsoft’s positive participation in developing technology and high-quality human resources in Vietnam and Ho Chi Minh City in particular over the past two decades.

He said that the city is always interested in promoting cooperation with enterprises, including Microsoft, for mutual development.

He pinned his hope that in the coming time, Microsoft will join hands with the city to enhance research and development activities and conduct IT application to protect traditional cultural values during the urban development process.

Impressed by the city’s vibrant development as well as steady foundation of IT human resources and infrastructure, Stefan Sjostrom said that Microsoft wants closer and more effective cooperation with Ho Chi Minh City in the field.

In the coming time, Microsoft will work with the city’s relevant agencies to devise a cooperation strategy by 2020, he affirmed, adding that the implementation of the strategy will help promote information technology transfer in all localities natiowide.

source:Vietnam+