Bright prospect for Vietnam’s economy in 2021: HSBC

Monday, 18/01/2021 17:46
HSBC believes that Vietnam can benefit from Free Trade Agreements (FTAs), stable FDI flows and technology to lead the recovery process.
Photo for illustration. (Source: baoquocte.vn)

The latest report released by the Global Economic Research Division of HSBC showed that Vietnam’s growth forecast this year remains at 7.6%. Inflationary pressure is likely to continue at a moderate level, around 3.3% on average, lower than the 4% ceiling of the State Bank of Vietnam.

HSBC said that in terms of foreign affairs, Vietnam’s commerce will benefit from many FTAs signed in 2020, including EVFTA, RCEP and UKVFTA. Lower tariffs and greater access to major markets will provide comparative advantage for Vietnamese exporters. At the same time, this helps to diversify export destinations of businesses, while FDI inflows into Vietnam continue because the country is an investment destination.

Vietnam has had a hard time with limited financial space for infrastructure, but the Public Private Partnership (PPP) Investment Law passed last year and coming into effect from January 1, 2021 can encourage private participation in large projects.

This month, Vietnam will host the 13th National Party Congress. HSBC is optimistic that, after the congress, economic policy will still be consistent.

Looking back to 2020, the bank affirmed that, thanks to effective disease prevention measures, “Vietnam becomes one of the countries with the highest GDP growth in the world”.

Over 141 trillion VND committed and memorandum investment in Quang Binh

More than 450 delegates from ministries, branches, diplomatic agencies, international organizations, experts, economists, and domestic and foreign businesses attended an investment promotion conference of Quang Binh province held on January 17, in Dong Hoi city.

Deputy Prime Minister (PM) Trinh Dinh Dung also attended and directed the conference.

Deputy Prime Minister Trinh Dinh Dung speaking at the event  (Photo: VNA)

In his speech at the event, Deputy PM Trinh Dinh Dung said that the conference offers good opportunities for Quang Binh to continue to promote and introduce potential and advantages of policies to boost investment attraction to the province.

Quang Binh should give greater attention to administrative reform, as well as e-government and smart city building, thus creating a transparent and open business environment to lure more investors, he stressed.

He reminded investors and businesses to speed up disbursement of investment capital and focus more on environmental protection and corporate social responsibility.

Mr. Tran Thang, Chairman of Quang Binh provincial People’s Committee, said that through the event, the central locality wishes to show determination to accompany and work side by side with investors with specific commitments to improve the investment environment and increase the competitiveness of the province.

Many investors and major brands have already appeared in Quang Binh, such as: Vingroup, FLC Group, Hanoi Tourist, Saigon Tourist, SCG Group (Thailand), CP Group (Thailand), Linfox Group (Australia), Vietnam Electricity Group, and B&T Wind Power. They pour investment in the fields of trade centers, hotels, resorts, real estate, golf courses, agriculture, building materials, thermal power, energy and logistics.

At the conference, under the witness of Deputy PM Trinh Dinh Dung, the Quang Binh provincial People’s Committee presented certificates of investment registration to 15 projects of 12 investors with a total capital of more than 71.15 trillion VND.

In addition, the People’s Committee presented MOUs (Memorandum of Understanding) for 22 projects of 17 investors with a total capital of nearly VND70 trillion.

Quang Binh is calling for investment in 62 projects in agriculture, industry, energy, trade, tourism and infrastructure development in the 2021-23 period./.

Foxconn invests in 270-million USD laptop plant in Bac Giang

Illustrative image (Photo: Internet)

Foxconn Singapore PTE Ltd will build a 270-million USD plant to produce laptops and tablets at Quang Chau industrial park in the northern province of Bac Giang, reported Vietnam News Agency.

The company was among four projects of Singaporean and Hong Kong investors with total capital of nearly 570 million USD awarded investment certificates at a ceremony on January 18.

Besides Foxconn, Risesun Investment Pte.Ltd (Singapore) will pour 75 million USD in a plant to produce plastic and composite products and 6 million USD into another factory to manufacture PVC decorative films at Hoa Phu industrial park.

Ja Solar Investment (Hong Kong) Limited invests 210 million USD in a photovoltaic manufacturing plant at Quang Chau industrial park.

Addressing the ceremony, Chairman of the provincial People’s Committee Le Anh Duong pledged to provide investors with the best technical infrastructure and services while facilitating administrative procedures for those landing investment in the locality.

He affirmed Bac Giang will organise regular dialogues with enterprises so as to remove bottlenecks for them in a timely manner.

The official took the occasion to ask the investors to carry out their projects in line with schedule, prioritise of high technologies in production, as well as work to balance benefits of their companies and the workers.

The investors should work with local authorities to receive timely support, and fully access preferential investment policies in the province, he added.

General Director of Foxconn in Vietnam Zhuo Xianhong, on behalf of the investors, pledged to abide by Vietnamese laws as well as implement the projects in line with registration.

He hoped to receive support from competent authorities in Bac Giang province./.

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