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Vietnam Declares Six Pillars for Economic Recovery

Vietnam Declares Six Pillars for Economic Recovery

In his speech to the World Economic Forum Country Strategic Dialogue on Vietnam, Prime Minister of Vietnam, Pham Minh Chinh, indicated that post-pandemic economic recovery will depend on six pillars:

1. Restoration of Supply Chains
2. Promotion of Manufacturing Growth
3. National Investment into Transportation Infrastructure, Digital Infrastructure, and Green Energy
4. Address Difficulties Businesses (Including Foreign) Face in Vietnam
5. Reform Institutions to International Standards
6. Development of Human Resources-- Particularly Economic Restructuring and Improving Productivity

All of these areas are indeed key opportunities for development and growth in Vietnam.  We believe that especially pillars 4-6 are important areas of focus for the Government of Vietnam, as they depend on fundamental changes in government policy and are less likely to be independently driven by the private sector.  Improving circumstances for business, whether considering "ease of doing business," streamlining investment and the establishment of legal entities, or the simplification/modernization of various bureaucratic operations, is critical to maintaining or improving Vietnam's competitiveness in the investment market.  Likewise, supporting the development of talent, especially in junior professional and middle management areas, will not only improve productivity in the Vietnamese market but also help Vietnam avoid the "Middle Income Trap."

More information and commentary is available in this Vietnam Express article.
Still Time to Join SCTech 2021!

Still Time to Join SCTech 2021!

There is still a chance to register for the virtual SCTech 2021 show at https://www.sctechshow.com/registration

Sponsored by ISCEA, SCTech is an annual trade show aimed at supply chain professionals who embrace the impact that technology can bring to the field.  This year's 4-day show includes topics including digital transformation and cybersecurity, risk management and resiliency, blockchain and industry 4.0, and the relationship between transportation and sustainability.  Click here to see the full agenda.  Having attended last year's show, Peregrine's leadership team can highly recommend this year's.
Bloomberg: Vietnam post-COVID supply chain outlook is strong

Bloomberg: Vietnam post-COVID supply chain outlook is strong

In this article, Bloomberg discusses Vietnam's international supply chain outlook beyond the immediate disruptions caused by COVID.  After a strong start in preventing the spread of the virus, Vietnam has struggled with quickly spreading outbreaks of the Delta variant.  In attempting to arrest the spread, Vietnam enacted strict lockdowns to prevent an overwhelming of the health sector.  Unfortunately, this has caused a lot of major disruptions to industry and supply chains.  However, the underlying factors that make Vietnam an attractive place to invest and do business remain.  Once the COVID disruptions have subsided, Vietnam is well positioned for a strong recovery as an important member of international supply chains.
2020 Edition of Vietnam Provincial Competitiveness Index Published

2020 Edition of Vietnam Provincial Competitiveness Index Published

The 2020 Edition of the Provincial Competitiveness Index has been published. It is a very useful and informative report that has been prepared annually since 2005 as a collaboration between VCCI (Vietnam Chamber of Commerce and Industry) and USAID (United Stated Agency for International Development).  It gathers survey data on all 63 provinces and cities in Vietnam, calculates 10 sub indicies (entry costs & informal payments being examples), and then ranks each province by a weighted average of those sub indicies.  Quang Ninh province maintained its top rank for the fourth year running and Vietnam’s major cities all ranked in the top 14: Danang (5), Hanoi (9), Can Tho (12), and HCMC (14).  Vietnam executes law and regulation in a decentralized systems, so a company’s relationship with their host province can have a major impact on operations and success.  The report is also full of other interesting items including an Infrastructure Index, a foreign investment survey, a chapter on the impact of COVID, and a chapter on environmentalism in Vietnam.  It’s a great read for anyone interested in learning more about Vietnam. The full version is available.
Rapid First Quarter Expansion of Industrial Zones in Vietnam

Rapid First Quarter Expansion of Industrial Zones in Vietnam

Dozens of new industrial zones across 13 provinces representing thousands of new hectares of industrial space have been approved in Vietnam during the first quarter of 2021.  Bac Ninh Province (near Hanoi), with its booming high tech sector approved the most projects, with Quang Tri(Central Vietnam) and Vinh Phuc (near Hanoi) Provinces also approving large expansions of industrial space.  Industrial real estate in Vietnam did not slow much with the outbreak of COVID in 2020, and is absolutely booming now.  What is particularly interesting about this news, is the distribution of the approvals—mostly in North and Central Vietnam.  Only one province in the southern part of the country, Ving Long in the Mekong Delta northeast of Can Tho, is mentioned.  A Vietnam net article here has more details.
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