Vietnam 20240613: Momentous, Expansive, Unwavering

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Headlines:

Truong My Lan Legal Troubles Mount

Island Building Efforts on the Rise

Robust Economic Growth and Positive Outlook

Minister Acknowledges Weak Industrial Development Policy

Factories Struggle to Recruit Labor

Power Generation Up, Renewables in the Spotlight

Tourism Thai-up, Hanoi Visitor Targets

Aviation Sector Seeing Mixed Signals

Real Estate Market Shows Signs of Recovery

International Co-op: TH, NZ, VN, CH, KR, SI, MK, DO

Export Growth Sees Healthy Rise

Hanoi to Host Dialogue with Foreign-Invested Businesses

First Vietnamese Film to Premiere on Three Continents

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Truong My Lan Legal Troubles Mount

As previously reported, Truong My Lan, a prominent Vietnamese tycoon, has been sentenced to death for her involvement in a massive fraud scheme. Lan and her associates are accused of illegally transferring enormous sums of money across borders. The legal issues surrounding Lan have revealed some of the methods she used to short-circuit the law, including issuing blank bonds and falsifying financial documents. Lan may face additional charges as investigations continue.

Read more: US News (Illegal Transfers), The Investor (Frozen Assets), VN Express (Niece's Involvement), Al Jazeera(Death Sentence), VN Express (Seized Assets), The Investor (Circumventing Laws)

Island Building Efforts on the Rise

Vietnam has accelerated its island-building efforts in the South China Sea, creating 692 new acres of land in the first half of 2024, matching the combined total of the previous two years. The expansion is primarily on the Spratly Islands, with significant development at Barque Canada Reef. Newly elected leader To Lam has spoken on the importance of respecting maritime rights and interests during a meeting with China's ambassador. Both countries say they want to control and resolve sea-related disagreements through diplomatic engagement and international law, but actions may speak louder than words.

Read more: Eurasia Review (Island Building Record), Asia Maritime Transparency Initiative (Spratly Expansion), Yahoo Finance (Diplomatic Tensions)

Robust Economic Growth and Positive Outlook

The economy is set for continued healthy growth, with several reports showing a positive outlook. HSBC predicts Vietnam to be one of the fastest-growing economies in Asia due to strong industrial performance and export growth. The World Bank is keeping its forecast of 5.5% growth for 2024, rising to 6% in 2025, with HCMC and Hanoi recognized among the world's fastest-developing cities. Singaporean banks and newspapers this week also are seeing a gradual recovery, projecting 6% GDP growth in Q2. The central bank is likely to maintain policy rates steady through 2024, focused on credit growth and economic stability.

Read more: Vietnam Economic News (HSBC Forecast), The Investor (World Bank Forecast), Vietnam Briefing (Development), Vietnam News (Recovery), Tuoi Tre News (Singaporean Bank Forecast), The Investor (Central Bank Policy)

Minister Acknowledges Weak Industrial Development Policy

Minister of Industry and Trade, Nguyễn Hồng Diên, acknowledged the absence of a suitably comprehensive industrial development policy for the country. Locally-produced components meet local needs in most industries but fall short in the high-tech and electronics sectors. The government wants to improve support for industries, including textiles, garments, and high-tech sectors, through better policy synchronization and investment incentives. Developing a healthy ecosystem linking FDI and domestic enterprises remains a challenge that needs better policy coordination and investment in workforce training and technology transfer.

Read more: Vietnam Economic News