Vietnam 20240201
Mekong Memo Vietnam Weekly: Business, politics, finance, trade & legal news.
Business stories from Southeast Asia directly to your inbox every weekday.
The Mekong Memo is proudly presented by:
Looking for the best people?
Horton International offers reliable, effective solutions to recruiting and resourcing challenges for a diverse range of organizations, from small, privately held start-ups to leading Global corporations. With offices and experience throughout Southeast Asia, Horton International is your first choice for executive search in the region.
Click here to learn how Horton can make your life easier.
Here is your Mekong Memo Vietnam for February 1, 2024.
If you like it, please share. If you love it, please subscribe. If you’re not sure, hit reply and let us know what’s on your mind. Of course, if it turns out that it’s not for you, tap that unsubscribe button down at the bottom. Thanks!
Headlines:
Philippines and Vietnam Forge Closer Ties
The Role of Trade Strategy on Growth
US Investments for Semis and Clean Energy
US Senators Challenging Market Economy Status
Regs on Foreign-Invested Projects Tightening
JETRO Report: Labor, Power, and Legal Issues
Transport Ministry Sets Big 2024 Goals
Online Food Delivery Booms with $1.4B in Sales
Firms Take Cautious Approach to Recruitment
Employment Regs for Foreign Workers Updated
Tourism Sector Positive on Revenue Growth
Real Estate Shaped by New Legislation and Trends
Course Mandated for Native English Teachers
International Arms Fair Set for December
Why haven’t you referred three friends to receive a full paid subscription to The Memo for one month absolutely FREE? Click here:
Philippines and Vietnam Forge Closer Ties
During Philippine President Ferdinand Romualdez Marcos Jr.'s recent state visit to Hanoi, Vietnam and the Philippines took every opportunity to tout their strengthened bilateral relations. The two nations signed agreements to prevent incidents in the South China Sea and facilitate improved cooperation between their coast guards, a development likely to be frowned upon by China. The two leaders also agreed to boost agricultural cooperation, beginning with a rice trading agreement, and to explore new areas of collaboration including the ever-popular fields of energy transition and digital transformation. Trade between the countries is hoped to grow from the current $6.18B to more than $10 over the coming years.
Read more: DTI News (State Visit), KOB (Maritime Cooperation), VnEconomy (Agricultural Cooperation), Philstar (Expanded Trade Ties)
The Role of Trade Strategy on Growth
Vietnam's involvement in major trade agreements like the CPTPP and RCEP, as well as its active participation in discussions around the Indo-Pacific Economic Framework (IPEF) have set the nation on a course for success. The country's focus on leveraging Free Trade Agreements and being attractive to Foreign Direct Investment has been crucial to the economic performance we’ve seen over the past several years (Covid excepted). In 2023, Vietnam reeled in $36.6 billion in FDI, a substantial increase over the previous year and all indications are for this year to see even better performance.
Read more: VnEconomy (Economic Performance), Vietnam Economic News (FDI Attraction), Vietnam Economic News (RCEP and E-commerce), VietnamPlus (Economic Framework), VietNamNet (IPEF Strategy), Vietnam News (Role of FTAs), Investment Monitor (January FDI Inflows)
US Investments for Semis and Clean Energy
Vietnam is set to receive substantial U.S. investments, with 15 American businesses, including semiconductor companies, planning $8 billion of investment in clean energy projects. The investment is hinging on Vietnam's progress in renewable energy regulations. Vietnam has been identified as a potential beneficiary of the U.S. CHIPS and Science Act, which will allocate $500 million globally for semiconductor training, cybersecurity, and business climate improvements. These projects and investments are part of the U.S. strategy to diversify supply chains and hedge on the global sources of semiconductor manufacturing, potentially giving Vietnam a huge leg-up in these sectors.
Read more: Voice of America (Clean Energy), Electronics Weekly (CHIPS Act), Tuoi Tre News (Science Aid Funds), VietNamNet (Semiconductor Industry Support)
US Senators Challenging Market Economy Status
Bernie Sanders and seven other U.S. senators have voiced concerns about granting market economy status to Vietnam, citing non-compliance with Congress-established legal requirements. As the U.S. Department of Commerce reviews Vietnam's non-market economy status, these senators are claiming a need for an objective review based on data, not politics. They especially take issue with specific aspects of Vietnam's economy, including exchange rates, labor bargaining rules, government control of foreign investment, and the nation’s close economic ties with China. The review's outcome could significantly impact jobs and producers on both sides of the Pacific.
Read more: The Investor
The remainder of this post is for paid subscribers only, but remember, you can get a month of The Memo FREE by sharing it with others:
Keep reading with a 7-day free trial
Subscribe to The Mekong Memo to keep reading this post and get 7 days of free access to the full post archives.