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Continuously expanding foreign businesses and the wave of foreign investors relocating from China may make the chronic shortage of skilled workers more dire in Vietnam.   Hiring skilled workers remains a significant challenge for recruiters in Vietnam This concern was expressed in Navigos Group’s latest report on middle- and high-level personnel demand in 2018’s fourth quarter. Accordingly, the Vietnamese labour market has seen significant impacts from free trade agreements (FTAs) and foreign investment capital in late 2018. The report also revealed that along with the wave of investment movement from China, the expansion of business-scale of foreign-invested enterprises (FIEs) in northern Haiphong city and Bac Ninh provinces are increasing demand on local midde- and high-level personnel for positions like factory managers, office managers, and assistants. In fact, the shortage of high-end personnel is not a new thing in Vietnam. According to the General … [Read more...] about Foreign investors double crossed by labour shortage in Vietnam?

PwC latest survey shows a sharp rise iof CEOs with falling confidence in growth prospect Accordingly, nearly 30 per cent of business leaders believe that global economic growth will decline in the next 12 months, approximately six times the level of 5 per cent last year- a record jump in pessimism. This is one of the key findings of PwC’s 22nd annual survey of 1,300 plus CEOs around the world which was launched yesterday at the World Economic Forum Annual Meeting in Davos. This is in vivid contrast to last year’s record jump, 29 per cent to 57 per cent, in optimism about global economic growth prospects. Although, all is not doom and gloom: 42 per cent still see an improved economic outlook, though this is down significantly from a high of 57 per cent in 2018. Overall, CEOs’ views on global economic growth are more polarised this year but trending downward. The most pronounced shift was among CEOs in North America, where optimism dropped from 63 per cent in 2018 … [Read more...] about PwC latest survey shows declining CEO confidence in growth prospect

The Ministry of Planning and Investment (MPI) has affirmed its position as the pioneer in innovation through providing advice and crafting policies, contributing to socioeconomic development and the improvement of the country’s business climate. The MPI evaluated its past year spent in the spirit of "pioneering innovation” Pioneering innovation At the 2018 review meeting of the MPI held on January 16, Minister of Planning and Investment Nguyen Chi Dung said: “Renovation and innovation, which have been the Party and the government’s policy for more than 30 years, are essential for development. The MPI, the agency providing general advice on strategies, master plans, plans for national socioeconomic development, asks all of the ministry’s officers to innovate and reform by providing advice on policy drafts.” At last year’s review meeting of the ministry, Prime Minister Nguyen Xuan Phuc recognised the officers of the planning and … [Read more...] about A year pioneering and innovation

Today the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, CPTPP, enters into force in Vietnam after going live on December 30, 2018 for six Pacific Basin countries, including Australia, Canada, Japan, Mexico, New Zealand and Singapore.   CPTPP aims to liberalise trade and investment in 11 member countries The deal is a sweeping accord that liberalises trade and investment in 11 economies in the Pacific Basin including Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. “While awaiting the outcome of the current trade truce, the CPTPP’s entry into force proves that the Vietnamese government determines to opt for the open, liberal and rules-based trading system,” said Pham Hong Hai, CEO of HSBC Bank (Vietnam) Limited. According to Hai, the CPTPP is indeed comprehensive and progressive in how it facilitates trade and investment in the 21st century, as it tackles issues such as … [Read more...] about CPTPP goes live in Vietnam

Vietnam is an important production link in the global manufacturing chain of Samsung, thus the group commits to invest more into long-term operations in Vietnam. Prime Minister Nguyen Xuan Phuc (right) and Samsung group chairman Shim Won Hwan met to discuss expansion plans On January 11, Shim Won Hwan, chairman cum general director of Samsung group, attended a meeting with Prime Minister Nguyen Xuan Phuc. The PM encouraged Samsung to implement its plan to expand operations in Vietnam, while simultaneously committing that Vietnam will provide favourable conditions and support the group to achieve further success in the country. Hwan, who used to be general director of Samsung Vietnam, expressed his admiration for Vietnam’s socioeconomic growth and was proud about Samsung’s contributions to this growth. The PM promised full support for Samsung success in Vietnam Samsung Vietnam reported the fastest growth in comparison among all of Samsung’s … [Read more...] about Samsung commits to continue expanding operations in Vietnam

Agriculture: new engine for growth Two weeks ago, Minister of Agriculture and Rural Development Nguyen Xuan Cuong worked with Paul Jansen, Belgium’s Ambassador to Vietnam, and Marc Stordiau, chairman of Asian Infrastructure Engineering and Investment, a sister company of the investment group Rent-A-Port, on a project to produce and export safe fruit and vegetables to Europe and the Middle East. Stordiau suggested co-operation with the Ministry of Agriculture and Rural Development (MARD) to establish a team to undertake the task. High-tech production would be the responsibility of the Vietnamese side, whilst the Belgian side would be in charge of buying products, transportation, and logistics. Rent-A-Port currently has two partners from Belgium and the Netherlands who are interested in joining the project. Stordiau also asked Cuong to allow his group to study a venture to transport fruit and vegetables from the Mekong Delta region to Europe and the Middle East. The minister … [Read more...] about Agriculture: new engine for growth

Local telcos are set to being testing 5G services in the first quarter of 2019, whereas associated infrastructure and terminal equipment providers stand ready for 5G commercialisation starting from 2020. At a recent workshop on innovations in the telecommunications field, Vietnamese Minister of Information and Communications Nguyen Manh Hung unveiled that the ministry (MIC) will allow 5G test runs in major metropolises in 2019, primarily Ho Chi Minh City and Hanoi. “We are planning to grant 5G frequency for test runs in 2019. In 2020, when 5G starts to be rolled out in the world, Vietnam will be one of the first to deploy the service,” Hung said. According to Tao Duc Thang, deputy general director at military-run telecom giant Viettel, the company will engage in the test drive launched by the MIC, which involves intensive preparations in network infrastructure, and expect the related information about frequency requirements could be soon released to allow design work and … [Read more...] about Telcos eager for 5G deployment

The latest announcement of the Ministry of Information and Communications' (MIC) Authority of Broadcasting and Electronic Information (ABEI) stated that Facebook has been seriously violating Vietnamese laws related to information management, tax, and advertising. The Vietnamese authority has made an official accusation against Facebook. Source: dantri.com.vn According to deputy director of ABEI Le Quang Tu Do, Facebook has allowed its advertisers to run a large number of illegal advertisements, including anti-state propaganda, prostitution, and illegal alcohol trading, among others. Facebook currently allows users to buy advertisements on its platform to bring their messages to target customers, for diverse purposes. Of course, the terms of the advertising contracts do not include obeying Vietnamese laws. While it remains unclear what action will follow, this is the first official announcement to this effect. An official announcement by a government agency will likely be … [Read more...] about Facebook is accused of violating Vietnamese laws

With the CPTPP deal set to come into effect, Vietnamese limber businesses are anticipating an increase in exports to foreign partners, Photo: Le Toan Though theoretically the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) officially took effect on December 30, 2018, it is not until January 14, 2019 that the deal will come into force for Vietnam. Experts believe this will be a big opportunity for the nation to boost exports across the board, including wooden products to the 10 CPTPP markets, which together account for nearly 13.5 per cent of global GDP, and a $10 trillion comprehensive market size. Nguyen Ton Quyen, vice chairman of the Vietnam Timber and Forest Product Association (Vifores), told VIR, “The enforcement of the CPTPP will impact many stakeholders including those in the wood businesses, forest planters, wood traders, transport, and manufacturers.” In recent years, such CPTPP member countries as Japan, New Zealand, Australia, … [Read more...] about Vietnam’s wood exports set to boom

By Dr. Oliver Massmann, General director of Duane Morris Vietnam LLC However, there remains great potential due to the variety of unexploited mineral resources. The discovery and mining of new minerals can be significantly facilitated with foreign direct investment (FDI). This provides the opportunity to use international, modern, efficient, sustainable, and secure technologies for the procedure. This would have a huge impact on the nation’s economic growth and would lead to a reduction in public debt. For most countries in the world, mining has been the cornerstone of economic growth and infrastructural development. It has been estimated that only about 10 per cent of Vietnam’s base metal and precious metal resources have so far been discovered. This is because the country has so far never methodically researched how to find deeper, richer or larger deposits with modern technologies. The focus of the Vietnamese mining industry has been almost exclusively on less … [Read more...] about New path for mining industry