With the gross domestic product (GDP) in 2020 increasing by 2.91% over the previous year, Vietnam is in the group of countries with the highest growth in the world. In the context that the COVID-19 epidemic had a negative impact on all socio-economic fields, this was a great success.

Also according to the General Statistics Office, GDP in quarter 4-2020 increased 4.48% over the same period last year. This flourishing growth was achieved due to the tight control of the COVID-19 epidemic, the economy gradually resumed working under new normal conditions.

Regarding the quality of economic growth, the productivity of the whole economy at current prices by 2020 is estimated at 117.9 million VND/employee, equivalent to 5,081 USD/employee, an increase of 290 USD (equivalent to an increase of 5.4%) compared to 2019. This shows that the labor productivity of Vietnamese people is improving in a positive direction, labor skills are improved.

In 2020, the whole country has 134.9 thousand newly registered enterprises, reduce 2.3% from the previous year but with the average registered capital per enterprise reaching 16.6 billion VND, up 32.3 %. Business trends of enterprises in processing and manufacturing industries show that enterprises are optimistic about their production and business situation.

Compared to the fourth quarter of 2020, 42.8% of enterprises rated that the trend would be better in the first quarter of 2021, 19% of businesses forecasted it would be more difficult and 38.2% of businesses said that the production and business will be stable.

In the coming time, Vietnam’s outlook is considered positive as the economy is forecast to grow at around 6.8% in 2021 and will stabilize around 6.5% in the following years.

Source: baodautu.vn

Ben Rung Bridge has a total length of about 4.5 km with total estimated investment of about 2,220 billion VND.

According to Quang Ninh website, the Standing Committee of the Quang Ninh Provincial Party Committee recently had a meeting to comment on the investment in the construction of Ben Rung bridge connecting Thuy Nguyen district (Hai Phong city) with Quang Yen town (Quang Ninh province).

Previously, in October 2020, the People’s Committee of Hai Phong City sent a proposal to Ministry of Planning and Investment to consider, and reported to the Prime Minister to support budget to implement Ben Rung Bridge investment project.

Accordingly, the project has an area of about 14.5 hectares of land (of which Hai Phong 5.17 hectares; Quang Ninh 9.42 hectares). The total investment of the project is more than 2,280 billion VND.

The investment in the construction of Ben Rung bridge to replace Pha Rung now is very necessary, creating a system connecting inter-regional traffic, meeting the needs of travelling of local people and transportation of enterprises; connecting Dong Mai Industrial Park (located in Quang Yen town, Quang Ninh province) with economic zones (EZs), coastal industrial zones (IZs) in Hai Phong city and the international gateway port in Lach Huyen to promote trade in goods with the region and the world, contributing to the increase on export turnover and attracting domestic and foreign investment, creating a driving force for the socio-economic development of Hai Phong city and Quang Ninh province in particular and the northern key economy and delta area in general.

Source: vietnambiz.vn

It is expected that the Vietnam – UK Free Trade Agreement (UKVFTA) will take effect in early 2021.

Right after the conclusion of the negotiations on Vietnam-UK Free Trade Agreement (UKVFTA) was signed, there have been some positive forecasts about the movement of capital flows from the UK to Vietnam as and when the Agreement entered its enforcement.

(The UK is the 15th largest investment country in Vietnam in terms of investment accumulation and the 13th largest investment country in 2019)

UKVFTA push

With the history of relations between the two countries and in the context of economic recovery after the Covid-19 pandemic, Vietnam still has plenty of room to attract more investment capital from the UK. UKVFTA will be a big driver for export activities, attracting FDI and calling UK businesses to participate in efforts to improve Vietnam’s value chain. “Certainly, when the UKVFTA is signed and put into effect, it will help Vietnam attract more FDI from the UK”, said Mr. Tim Evans, General Director of HSBC Bank Vietnam.

Present at the signing ceremony of the conclusion of the UKVFTA negotiation, UK International Trade Minister Elizabeth Truss said that UK investors attach great importance to the Vietnamese market. Trade, opening-up integration and attracted FDI have changed Vietnam towards a better direction, creating more jobs, and becoming a dynamic economy. British investors want to improve the supply chain by increasing investment deals, shifting capital flows to Vietnam, thereby accessing markets in ASEAN.

Source: baodautu.vn

Vietnam has made efforts to improve the investment climate. The Government has committed to “creating the best investment environment”, which is transparent and favorable.

Previously, early December is the time when annual Vietnam Business Forum (VBF) is organised, this is a forum for Government to listen to the voices of the business community and investors. This year, Prime Minister Nguyen Xuan Phuc had a private meeting with business associations to listen to and remove off difficulties and problems for businesses and investors during a challenging year.

ABB in Vietnam. Photo: Duc Thanh

In order to have the best investment environment, the Prime Minister also emphasized the need to further improve the business investment environment; pay attention to handling infrastructure, energy, reduce logistics costs; set up clearer and more favorable markets; step up the application of technology, especially e-government and digital technology in the development process.

According to the Prime Minister’s assertion, the Government will listen and remove all difficulties for businesses, especially review unreasonable points to adjust for better performance. It does not only focused on facilitating, towards a competitive environment in the top ASEAN group, the Prime Minister also emphasized the element of “everything must be transparent”.

This is exactly what foreign investors, especially investors from the US and Europe expect.

Source: baodautu.vn