Vietnam 20240704: Flourishing, Propitious, Effervescent

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Headlines:

Trade Surplus Hits $11.63 Billion in H1 2024

Two-Year Tax Exemption for Small Biz

Tourism Sector Sees 8.8 Million Foreign Visitors

Economic and Industrial Growth Booms in H1 2024

Addressing Low Labor Productivity

AI Driving Renewable Energy Innovation

Fund Planned to Boost Foreign Investment

AirAsia Explores Fifth Attempt to Enter Market

Inflation Under Control

US Companies Eye VN for Investment

More Money Needed for Logistics Investments

PM Says Power Supply Adequate Despite Demand

Rising Prices, Demand for Luxury Real Estate

Bank Warns on Exploitation of Biometric Updates

Diabetes Doubles in VN Over the Last Decade

Michelin Stars Elevate the Culinary Scene

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Trade Surplus Hits $11.63 Billion in H1 2024

The nation’s trade surplus reached $11.63 billion in the first half of 2024, driven by a 62.4% push in agro-forestry-fishery exports. Mainstay products include timber, wood products, coffee, and seafood. Vietnam-China trade approached $100 billion, with Vietnam carrying a $39.2 billion deficit. Exports to the EU increased, particularly in seafood. Vietnam and South Korea are shooting for $100 billion in bilateral trade by 2025. Despite strong exports, Vietnam spent over $1.5 billion on imported cars in the past year.

Read more: Nhan Dan (agro-forestry-fishery), Undercurrent News (EU exports), Vietnam News (trade surplus), VietnamNet (Imported Cars), DTiNews (Vietnam-RoK trade), VnExpress (Vietnam-China trade), VnExpress (forestry exports)

Two-Year Tax Exemption for Small Biz

The Ministry of Finance has proposed a two-year corporate income tax exemption for newly established micro and small enterprises transitioning from household firms. This measure is hoped to encourage formalization of the roughly 5.5 million household businesses nationwide. The proposal is a subset of other amendments to the Law on Corporate Income Tax, supporting small businesses in developing production and trade.

Read more: VnEconomy

Tourism Sector Sees 8.8 Million Foreign Visitors

Tourism saw strong recovery in the first half of 2024, pulling in 8.8 million international visitors. Dining reportedly accounts for 40% of tourist expenditures. South Korea emerged as the largest source market, followed by China. Tourism revenue is expected to reach $13.5 billion. Dien Bien Phu became the most searched tourist destination, an emerging hotspot to keep an eye on.

Read more: VnExpress (visitor statistics), VietnamPlus (tourism revenue), Vietnam Insider (tourist spending), VnEconomy (South Korean tourists), Vietnam Insider (most searched destination), Cong Thuong (celebrity appeal)

Economic and Industrial Growth Booms in H1 2024

The economy grew by nearly 7% in Q2 2024, driven by big expansions in agriculture, industry, and services sectors. Industrial production increased by 7.54%, with particular growth in processing, manufacturing, and electricity production. The Purchasing Managers' Index (PMI) also saw a sharp rise to 54.7 in June, indicating healthy manufacturing activity. A total of 72% of construction firms expect stable or improved business in Q3 2024, despite rising material costs and contract shortages.

Read more: VnEconomy (PMI rise), Vietnam News (economic growth), VnEconomy (industrial production), VnExpress (growth), VnEconomy (construction outlook)