Topic: 2022

Decree No. 35/2022/ND-CP stipulating the management of industrial parks and economic zones and issued on May 28, 2022, is an important policy directing the development of industrial park infrastructure in Vietnam. However, though it is considered a breakthrough measure and removes cumbersome administrative procedures, its implementation still has drawbacks that need to be dealt with.

The CPI in August increased just 0.005 per cent over July, 3.6 per cent compared to December 2021, and 2.89 per cent year-on-year. According to the General Statistics Office, increases are due to rising prices for essential consumer goods and services. Domestic gasoline prices have, however, been cut since July.

According to FiinGroup, credit increased strongly in the first half of the year but the average completion of annual profit plans for 2022 in the banking industry stands at just 51.5 per cent. Twenty-six of the 27 listed banks have set a target of after-tax profits growing more than 33 per cent, but their ability to complete plans is relatively low without additional credit lines.

The Business Registration Administration at the Ministry of Planning and Investment has said that business registrations continue to reach new milestones. In August, there were 11,918 newly-registered enterprises with total capital of VND130.198 trillion ($5.5 billion), an increase of 106.9 per cent in number and 91.6 per cent in capital year-on-year.

As of August 22, Hanoi had disbursed only 27.1 per cent of the public investment capital set aside in the annual plan, or lower than the national average. At a meeting with city leaders on August 26, Deputy Prime Minister Le Van Thanh asked that an additional 9 per cent of the annual plan be disbursed by December 31.

Vietnam welcomed 71.8 million visitors in the first seven months of 2022, exceeding the annual target. There were only 954,600 international arrivals, however, or just 15 per cent of the targeted 5 million for the year. One solution to increase international tourist numbers is to apply multiple entry and exit visas valid for 30 days, instead of 15 days as currently.

Da Nang’s tourism industry has recorded many breakthroughs in spending in the first seven months of 2022 and been looking for more innovative ideas to boost it further. The central city has recently welcomed a new type of project - an apartment with a regenerative medicine center called Shizen Nami. This is considered a breath of fresh air for the city’s tourism market, which is recovering strongly after Covid-19.

The Vietnam Cashew Association (VINACAS) has said that cashew exporters are facing many difficulties and challenges from high inflation in export markets and new technical standards on safety controls. Cashew exports are forecast to decline to the end of the fourth quarter.

The Ministry of Finance has forecast that CPI will increase 3.37-3.87 per cent in 2022; higher than the forecast of 3.4-3.7 per cent from the General Statistics Office. The State Bank of Vietnam, meanwhile, has put inflation in the range of 3.7 per cent, ± 0.3 per cent.

Boasting the largest land area in the country and known in the north-central region for its beautiful beaches, analysts on urban and real estate believe that Nghe An province still holds a great deal of potential. With nearly VND100 trillion ($4.25 billion) invested in infrastructure, deep-water ports, and airports this year, Nghe An’s real estate market will see more large-scale projects.