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Vietnam GDP growth forecast in 2020 remains highest in Asia: IMF

The International Monetary Fund (IMF) maintains its forecast for Vietnam’s GDP growth at 2.7% in 2020, the highest in Asia, and the pace is expected to speed up to 7% in 2021.

Vietnam’s consumer price index is set at 3.2%, lower than the estimation of 4% this year. The economy could be subject to a strong rebound of 7% GDP growth rate in 2021.

Notably, in the IMF’s latest World Economic Outlook update, Thailand’s economic growth forecast has been revised down to -7.7%, one percentage point lower than the organization’s previous forecast in April, the largest contraction among Asian economies.

 Global growth is projected at -4.9% in 2020, 1.9 percentage points below IMF’s previous forecast.

The average growth forecast for ASEAN–5 (Indonesia, Malaysia, the Philippines and Vietnam) would record a contraction of 2% in 2020, before rebounding to 6.2% in 2021.

As the Covid-19 pandemic has had a more negative impact on activity in the first half of 2020 than anticipated, global growth is projected at -4.9% in 2020, 1.9 percentage points below IMF’s previous forecast.

Major economies, including the US, China and Japan have all received a lower forecast in this update outlook, in which the US is predicted to shrink 8% (previously -5.9%), China with a positive growth of 1% (previously 1.2%), and Japan with -5.8% (previously -5.2%).

The outlook is even more gloomy for European countries, as Italy and Spain are subject to the deepest contraction of 12.8%, followed by France with -12.5% and Germany with -7.8%.

In 2021 global growth is projected at 5.4%. Overall, this would leave 2021 GDP some 6½ percentage points lower than in the pre-COVID-19 projections of January 2020. The adverse impact on low-income households is particularly acute, imperiling the significant progress made in reducing extreme poverty in the world since the 1990s, stated the IMF. Hanoitimes

Ngoc Mai



Corporate bonds increasingly attractive to investors due to high yield

A person holds packets of Vietnamese banknotes. Corporate bonds have attracted a huge cash flow from other investment channels, including depositors – PHOTO: THANH HOA

HCMC – Corporate bonds have attracted a huge cash flow from other investment channels, including depositors, even though the Ministry of Finance has repeatedly advised investors to exercise caution before purchasing these bonds.

Customers can earn big returns on corporate bonds, 0.8 to 1.7 percentage points higher than those on savings, according to a report released by SSI Securities Corporation.

Bonds worth some VND159 trillion have been issued by enterprises since the beginning of the year, soaring by 50% year-on-year.

Since early 2020, individual investors have directly bought corporate bonds worth some VND22.7 trillion on the primary market, equivalent to 15% of the total issued bonds.

As of March 31, non-credit institutions and individuals were holding bonds worth some VND385 trillion.

Corporate bonds worth VND91.6 trillion were issued through private placement over the first five months of 2020, up 15% year-on-year, according to the Hanoi Stock Exchange.

During the five-month period, property firms issued bonds to ramp up their capital, while retail investors continued the trend of purchasing corporate bonds. Many securities firms and commercial banks were rushing to distribute corporate bonds to individual investors, Nguoi Lao Dong Online reported.

As such, the Ministry of Finance has recommended that bond issuers ensure their repayment capacity, while advising investors, mainly individuals, to seek out all information on bond issuers and fully assess risks before purchasing bonds.


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Vietnam’s labour export market expected to recover soon

Vietnam’s labour export activities are showing signs of recovery from COVID-19.

Vietnamese labourers at Noi Bai International Airport heading to South Korea before the COVID-19. — Photo Department of Overseas Labour

Vietnamese labourers who have been working in Malaysia have been told they can return to work, but not until the end of August.

And moves are being made to allow workers to return to both South Korea and Taiwan in the near future.

The Department of Overseas Labour under the Ministry of Labour, Invalids and Social Affairs (MOLISA) has said the Malaysian Government officially announced to end the valid restricted movement order.

In a recent meeting, Prime Minister Nguyen Xuan Phuc assigned the ministry make arrangements to send labourers to countries which are safe and in need of workers.

Nguyen Gia Liem, the department’s deputy director, said the three markets received more than 90 per cent of the total of Vietnamese labourers in foreign countries.

Employers in South Korea and Taiwan wanted Vietnamese labourers to come back to resume their production as soon as possible. The Human Resource Development Services of Korea last month organised the Korean language proficiency tests in Ha Noi, HCM City and Da Nang, showing that this market would be soon re-openned.

Liem said the labour demand in Japan was also very high, especially in sectors of agriculture, taking care of the elderly and food processing. The two countries have been under negotiations to resume their labour market hopefully by the end of this month or the beginning of August.

Pham Do Nhat Tan, vice chairman of Viet Nam Association of Manpower Supply (VAMAS), said the labour export market has seen signs of recovery. It was expected that Japan would soon re-open. Local firms operating in the sector should prepare workers to meet the demand as soon as the country resume the market.

In addition, the Government should negotiate with Japan to have flexible solutions to bring workers to safe areas without COVID-19, he said.

In mid-June, Hoang Long CMS Company brought 29 workers to Taiwan following an order of Kymco Group for its electronic motorbike assembly factory.

Nghiem Quoc Hung, the company’s chairman cum general director, said labourers were provided with accommodation and isolated for 14 days before starting work.

Vu Thanh Hai, director of international investment and service company, Interserco, also said they have started to complete procedures for labourers to move to Taiwan this month. Workers in production sectors would be given priorities. Some Taiwanese companies have already arranged quarantine areas for Vietnamese labourers.

Viet Nam aims to send 130,000 labourers to work overseas this year. However, the country has so far only sent 33,500 people to foreign markets in the first half of the year due to the pandemic, reducing 40 per cent from the same period last year. In May only, local businesses sent just 126 workers abroad.

In the last six months, more than 5,000 Vietnamese labourers in overseas markets returned home because of COVID-19. — VNS


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Bến Tre urged to step up public investment disbursement

Prime Minister Nguyễn Xuân Phúc works with leaders of the Mekong Delta’s Bến Tre Province on Thursday in Hà Nội. — VNA/ Photo

HÀ NỘI — Prime Minister Nguyễn Xuân Phúc on Thursday urged the Mekong Delta province of Bến Tre to work hard to complete yearly targets and tasks, with the local public investment disbursement rate set at at least 90 per cent.

He pointed out difficulties caused by the COVID-19 pandemic and drought facing the locality, and its low disbursement rate.

Bến Tre should utilise opportunities from international integration, especially free trade agreements (FTAs) to which Việt Nam is a member like the EU-Vietnam Free Trade Agreement (EVFTA), he said.

The PM praised Bến Tre for its high provincial competitiveness index and other indices, and asked the locality to step up administrative reform and improve the local business environment.

More attention should be paid to management of climate change projects, he said, stressing that Bến Tre needs to take a step ahead in digital transformation to pave the way for digital economic development.

PM Phúc agreed in principle on Bến Tre’s mobilisation of resources from different economic sectors in building a transmission line system connected to renewable energy projects in the province.

It was reported that Bến Tre’s socio-economic development has been impacted by COVID-19 and drought.

The pandemic has forced 55 businesses to dissolve and more than 130 others to suspend their operations. As of mid-June, the province had received 6,200 applications for unemployment benefits.

Meanwhile, drought has affected 5,300ha of rice, 28,00ha of fruit trees and 2,000ha of giant river prawns, with total economic losses amounting to VNĐ1.66 trillion (US$71.65 million). —


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