Vietnam will become an attractive destination for franchising businesses after the pandemic ends, experts have said.
The RCEP agreement is expected to come into effect soon and improve market access for Vietnamese exports. However, the reality of Vietnam's trade deficit with the RCEP region in recent years and consequences of supply chain disruption due to the Covid-19 pandemic in 2020 also make some Vietnamese experts concerned about the benefits Vietnam can derive from the RCEP, especially in a more recent dimension of the degree of economic autonomy.
The new Law on Investment, which took effect on January 1, aims to ease the doing of business in Vietnam and will have a positive impact on the attraction of foreign investment and improvement of Vietnam’s business environment.
The concept of an easy market will be removed when all join the same community and are committed to commercial agreements with the same standards. Accordingly, methodical investment to bring high quality and stability for products is the only way for businesses to sell their products in the global market.
As global laptop manufacturers are shifting production out of China, Southeast Asian countries like Vietnam are repositioning to benefit, although some hurdles will have to be addressed for Vietnam to become a new laptop manufacturing hub.
Despite the extremely challenging environment in 2020, the momentum of Southeast Asia’s digital economy has clearly not been derailed. Google, along with Temasek and Bain, recently reported that Southeast Asians spent, on average, an hour more a day on the internet during pandemic-imposed lockdowns, accessing essential goods, healthcare, education, and entertainment. The region also added 40 million new internet users in 2020.
Looking at Vietnam's economic prospects in 2021, many experts believe there are some risks. They include the accessibility of the Covid-19 vaccine; uneven economic recovery in partner markets; the trend of monetary easing and devaluation of the domestic currency in many Asian countries; and increasing trade remedies in importing countries.
On January 19, the Vietnam Economic Institute (Vietnam Academy of Social Sciences) held a seminar on "Vietnam's Economy in 2020 - Promoting growth based on innovation".
On January 12, the Vietnamese German Joint Economic Committee (JEC) was officially launched in Hanoi and Berlin. Due to the COVID-19 pandemic, the meeting took place virtually, with the participation of many officials and representatives from the Vietnamese and German government and businesses. The Vietnamese Minister of Industry and Trade, Mr. Tran Tuan Anh, and the German Minister of Economic Affairs and Energy, Mr. Peter Altmaier jointly chaired the inaugural meeting.
Exporters face many difficulties due to the lack of empty containers, as well as the increase in shipping charges. Le DuyHiep (photo), Chairman of the Logistics Business Association (VLA), gave an interview to Customs Newspaper around this issue.
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