Experts are once again warning that if the monopoly of the economy via poorly-performing and loss-making enterprises owned by the state continues, the country’s competitiveness and investment climate will continue being affected as a result.
Demand for labor in Vietnam’s manufacturing sector is rising sharply due to strong foreign direct investment (FDI) inflows as a result of the transfer of orders and China-based facilities into Vietnam during the ongoing U.S.-China trade war.
In the wake of the United States-China trade tensions, German investors are rushing to pour money into industry, construction, trade, and services in Vietnam to benefit from growth potential following the country’s landmark free trade agreements.
Foreign investors registered to pour US$1.73 billion into Viet Nam in June, bringing the total amount of foreign direct investment (FDI) committed to the country in the first six months of the year to $18.47 billion, down 9.2 per cent year on year. Experts have said the decline is due mainly to a number of large-scale projects that received licences in June last year.
The State Audit Office of Viet Nam (SAV) would give priority to new audit areas such as information technology, tax and environmental protection in its development strategy from 2020 to 2030, said the SAV’s Auditor General Ho Duc Phoc.
Singapore's market is considered to have a huge potential for Vietnamese enterprises, with advantages such as cultural similarities, consumption trends suited to Vietnamese goods, low costs for market researching, and easy export transaction procedures, experts have said.
Vietnamese exporters have been urged to prepare for any trade-related lawsuits and disputes arising from the escalating US-China trade war amid concerns that the two major powers will not reach an agreement at a meeting in Japan this month.
The European Council announced on Tuesday that it had approved the European Union-Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement (EVIPA), paving the way for the EU to sign the two deals with Vietnam in Hanoi on June 30.
Chinese and U.S. investments are increasing in Vietnam due to escalating trade frictions between the two largest economies. However, this is likely to prompt the United States to impose tariffs on Vietnamese goods if shipments from Vietnam are found to be actually transferred from China, said experts at a workshop in HCMC today, June 25.
Many individuals and organizations have urged the Ministry of Planning and Investment to only employ the public-private partnership (PPP) model for large-scale projects.