Vietnam Economic News: 27.7 - 3.8.2024
Summary of Vietnam Economic News: 27.7 - 3.8.2024
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Summary of Vietnam Economic News: 27.7 - 3.8.2024 ---
VIETNAM'S PRESIDENT TAKES TOP JOB AS COMMUNIST PARTY CHIEF
Reuters News – 3 August 2024
Vietnamese President To Lam was named on Saturday to the nation's top position, general secretary of the ruling Communist Party of Vietnam, replacing Nguyen Phu Trong, who died two weeks ago. Lam, 67, had temporarily taken on the party chief's duties on July 18, a day before Trong's death, as his health deteriorated. Party delegates unanimously supported Lam's nomination. Addressing the delegates, he vowed to inherit and promote Trong's legacy, make no changes to the nation's foreign policy, focus on achieving its socioeconomic development goals and continue a campaign against graft. "In the coming time, the work on anti-corruption will be continued fiercely," according to Lam. "Personally, I feel fortunate that I have much experience in handling anti-graft campaign during the time I worked at the police ministry." Vietnam, a major destination for manufacturing investment, has long been favoured by multinational corporations for its political stability, but experienced major turbulence in recent months that officials said was fuelled by the anti-graft effort. Lam, a career security officer, had been seen as long aiming to become party chief, with experts calling the presidency a stepping stone for the top job. Lam was elected president in May after leading the sweeping campaign of high-profile investigations against corruption as police minister. He replaced Vo Van Thuong, who had been in the job about a year when he quit amid accusations of unspecified wrongdoing.
U.S. KEEPS VIETNAM AS NON-MARKET ECONOMY, DESPITE EFFORTS TO WOO HANOI
Reuters News – 2 August 2024
The U.S. Commerce Department announced on Friday it will continue to classify Vietnam as a non-market economy country, a decision disappointing to Hanoi, which the U.S. has been wooing in its efforts to push back against China. Vietnam has long sought an upgrade, which would have reduced the punitive anti-dumping duties levied on non-market economies marked by heavy state influence. A change in status has been opposed by U.S. steelmakers, Gulf Coast shrimpers and honey farmers and members of the U.S. Congress representing them but backed by retailers and some other business groups. This means that the methodology used in calculating U.S. antidumping duties on imports from Vietnam remains the same. Vietnam's Ministry of Industry and Trade said upgrading Vietnam would have been an objective and fair move. "Vietnam regrets that despite several positive improvements in the Vietnamese economy recently, the U.S. Department of Commerce still has not recognized Vietnam as a market economy country," it said in a statement. Vietnam has long argued it should be freed of the non-market label because of recent economic reforms, and it has said that retaining the moniker is bad for increasingly close two-way ties that Washington sees as a counterbalance to China. Opponents of an upgrade have countered that Hanoi's policy commitments have not been matched by concrete actions and it operates as a planned economy governed by the ruling Communist Party. They say Vietnam is increasingly being used as a manufacturing hub by Chinese firms to circumvent U.S. curbs on imports from China.
INDIA'S ADANI GROUP CONSIDERS INVESTING IN VIETNAM'S AIRPORTS
Reuters News – 31 July 2024
India's Adani Group is considering investing in two airports in Vietnam, the Vietnamese government said on Wednesday, weeks after the company revealed it had permission to build a seaport in the country. The government statement comes after a meeting in Delhi on the same day between Vietnamese Prime Minister Pham Minh Chinh and Gautam Adani, head of conglomerate Adani Group, during Chinh's official visit to India. "Adani is planning to strengthen cooperation with Vietnamese partners in the fields of aviation and logistics, via the construction of Long Thanh airport and Chu Lai airport," the statement said, referring to two major airports in the south and central regions. Last year, Karan Adani, the elder son of Gautam Adani, announced a plan to invest up to $3 billion in seaport and renewable energy projects in Vietnam. He also said that the investment could reach $10 billion over the longer term.
VIETNAM POSTS STRONG GROWTH IN EXPORTS AND INDUSTRIAL PRODUCTION
Reuters News – 29 July 2024
Vietnam's goods exports and industrial production in July rose strongly from a year earlier, government data showed on Monday, adding to signs of an acceleration in the country's economic growth. Exports in July are estimated to have risen 19.1% in July from a year earlier to $35.92 billion, the General Statistics Office (GSO) said in a report. The industrial production index rose 11.2% in July from a year earlier, the GSO said. Vietnam has been seeking to lift economic growth to meet this year's GDP growth target of 6.0%-6.5%, with the government keeping policy settings accommodative and boosting public investment. "We believe the ongoing upturn in the global electronics cycle will continue to support both exports and industrial production for the rest of the year," Oxford Economics said in a note. The country recorded annual GDP growth of 6.93% in the second quarter, up from 5.87% in the first quarter. Oxford Economics expects GDP growth to come in at 5.9% this year, with the central bank's discount rate remaining 3.0%. Imports in July rose 24.7% from a year earlier to $33.80 billion, resulting in a trade surplus of $2.12 billion for the month, the GSO said. A sharp rise in imports could be a signal of future strength in industrial production if firms import more materials and equipment for their operations. The GSO said consumer prices in July rose 4.36% from a year earlier. The government has said it wants to keep inflation below 4.5% this year. Oxford Economics said it doesn't expect full-year inflation to move above the target ceiling, "though there are upside risks in the near-term from the sudden surge of credit in June".