Vietnam Today

The Prime Minister has issued Decision No. 22/2021/QD-TTg on allowing flexibility in the innovative re-organization of State-owned enterprises (SOEs). The Decision contains two new points. Firstly, it provides criteria for the classification of SOEs, and changes in the rate of charter capital held by the State, in which some important industries will see 100 per cent held by the State, such as high-tech applications, major investments, the field of prospecting, exploration, and development, and oil and gas exploitation. Secondly, the parent company, the representative of State capital, and the owner’s representative agency will be able to proactively classify SOEs according to announced criteria, and at the same time develop a restructuring plan based on an evaluation of business performance.

The Ministry of Transport (MoT) plans to simplify documents and procedures to facilitate cross-border road transport between Vietnam and its neighbors.

The 15th National Assembly (NA) opened its first session in Hanoi on July 20, where it will discuss matters such as personnel work, socio-economic reviews, law and legislation drafting and adjustment, and various directional programs in the 2021-2025 period.

The My Thuan Project Management Board has asked the Ministry of Transport (MoT) to review a proposal to build the Can Tho - Ca Mau Highway, which has total investment of VND41.9 trillion ($1.82 billion). The highway will stretch 124.8 km and pass through six provinces. Construction will be completed in two phases, between now and 2025.

In a report forecasting Vietnam’s economic development, HSBC has lowered its growth projection from 6.6 per cent to 6.1 per cent due to the ongoing Covid-19 outbreak. It also predicted that the Vietnam dong (VND) exchange rate will fluctuate widely in the second half of this year.

According to a forecast from the Central Institute for Economic Management (CIEM) in cooperation with an Australia Supports Economic Reform in Vietnam (Aus4Reform) program, if Vietnam can control Covid-19 by August its 2021 GDP growth will be 6.2 per cent. If it brings it under control by October, growth will be 5.9 per cent.