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Here is your Mekong Memo Vietnam for February 15, 2024.

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Headlines:

FDI Inflows Remain Strong

Boosting Agri-Exports With Infrastructure Upgrades

The Mekong Delta's Growth Dilemma

Appetite for Online Food Delivery Surges

Hi-Tech Park Incentives to Spark Investment Boom

Tourism Set for 2024 Boom

Market Economy Status Sought Ahead of US Elections

Record Export Growth in January

Consumers Set for Strong Recovery in 2024

Real Estate on the Cusp of Transformation

Economic Growth Path to Recovery Via Reform

Vietnam Can’t Follow Philippines on China Policy

Social Balancing Act at Home and Abroad

Shipping Costs Put Exporters Under Pressure

Bikes Abandoned Due to High Drunk Driving Fines

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FDI Inflows Remain Strong

Vietnam continues to solidify its position as a prime destination for foreign direct investment (FDI), with a healthy upsurge in registered capital and new projects early in 2024. The country's open and flexible investment policy, along with its improving business environment, has attracted $36.61 billion in FDI in 2023, a 32% increase from the year prior. Hanoi alone drew nearly $870 million in FDI in January. The influx was primarily targeted to the manufacturing and processing sectors.

Read more: Vietnam Economic News (Investment Climate), Dtinews (FDI Forecast), Nhan Dan Online (Hanoi)

Boosting Agri-Exports With Infrastructure Upgrades

PM Pham Minh Chinh has directed an upgrade in railway and logistics connectivity to support agricultural exports to China with a streamlined trade process. The upgrades will include railway and road capacity increases, as well as the establishment of an agricultural logistics hub to minimize costs and transit times. With agriculture exports totaling $11.5 billion to China last year, this move could substantially expand Vietnam's exports to the country and ensure the continued competitiveness of Vietnamese farm produce.

Read more: VnExpress International (Railway Upgrade), VietnamPlus (Logistics Connectivity)

The Mekong Delta's Growth Dilemma

Vietnam's transition from rice cultivation to shrimp farming in the Mekong Delta, driven by climate adaptation strategies, presents a picture of economic benefit overshadowed by long-term sustainability concerns. The Mekong Delta, vital for more than 70 million people, faces unprecedented threats from saltwater intrusion and land subsidence, compromising its historical role as Vietnam's "rice basket." The shift, while economically lucrative, raises alarms about the future health of the river and the communities dependent on its resources.

Read more: The Diplomat

Appetite for Online Food Delivery Surges

Vietnamese consumers spent $3.8 million daily on online food orders last year, a 30% increase from the previous year. The country's total online food order value reached $1.4 billion, a growth rate surpassing other Southeast Asian countries, despite trailing behind in gross merchandise value compared to Malaysia, the Philippines, Singapore, and Thailand. Grab and Shopee Food emerged as the strongest players.

Read more: VnExpress International

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