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Congratulations on Lao National Day AT A GLANCE

UK & FRANCE VISITS FRUITFUL PM IN EUROPE
During his working trip to proposals he put forth at COP26 in Glasgow were welcomed and
Europe from October 31 to supported by other countries, thus opening up many opportunities
November 5 to attend the United for Vietnam to strengthen cooperation with countries and partners
Nations Climate Change Con- in response to climate change. His visits to the UK and France
ference of the Parties (COP26) saw impressive results in trade and investment promotion, with
and visit the UK and France, the signing of nearly 60 MoUs on cooperation, with total pledged
Prime Minister Pham Minh Chinh reaffirmed Vietnam’s strong investment of over $30 billion. Cooperation focuses on renewable
message to international friends about its responsible and proactive energy, digital economy, digital transformation, the environment,
commitment to handling climate change and in creating a more infrastructure development, planning, aerospace, the prevention
favorable investment environment for foreign businesses. The and control of disease, agriculture, and tourism.

MACROECONOMIC UPDATE WB NOTES POSITIVE CHANGES
According to the World Bank (WB)’s Vietnam macroeconomic The country attracted $23.7 billion
update for November, released on November 12, the country’s worth of FDI in the first ten months
economy has made positive changes amid the protracted Covid- of the year, 1.1 per cent higher year-
19 outbreak. Industrial production and the total retail sales of on-year. Despite rising fuel prices,
consumer goods and services rebounded as economic activities inflation remained subdued due to falling food prices and weak
gradually resumed but have yet to recover to the levels recorded domestic demand for other consumer products. Credit growth
before the outbreak, which began in April. The goods trade was stable in October. State budget revenue and expenditure
balance was in surplus for the second month in a row, as import returned to surplus in the month, mainly driven by a sharp fall in
growth continued to slow. For the first ten months of the year, budget expenditure as revenues again fell for a third month in
Vietnam enjoyed a trade surplus of $160 million. Meanwhile, the succession. The budget surplus in the first ten months was a sign
volume of registered FDI declined after three months of increases. that tight fiscal policy will continue to be implemented.

LIST OF PROJECTS CALLING FOR INVESTMENT RELEASED FOREIGN INVESTMENT
Under Decision No. 1831/QD- structure, waste and wastewater treatment, education and
TTg dated November 1, 2021 health, culture-sports-tourism, agro-forestry-fishery, production,
from the Prime Minister, Viet- and services. Despite the impact of the Covid-19 pandemic,
nam is calling for foreign invest- foreign investors had still poured $23.74 billion into new and
ment in 157 projects in the existing projects and as capital contributions and share purchases
2021-2025 period. The projects this year as of October 20, up 1.1 per cent year-on-year, of
are in various fields, including transport infrastructure, industrial which the manufacturing and processing sector attracted the
and economic zone facilities, information technology infra- highest amount, of $12.74 billion, or 53.7 per cent of the total.

INTERNATIONAL FLIGHTS THREE-PHASE REOPENING PLANNED
The Ministry of Transport on November 8 proposed reopening third phase, more scheduled inter-
international flights to 15 countries and territories in three phases. national flights will be conducted,
The 15 targeted markets are China, Hong Kong (China), Japan, depending on demand and devel-
South Korea, Taiwan (China), Thailand, Singapore, Malaysia, opments in the pandemic and the
Laos, Cambodia, France, Germany, Russia, the UK, and Australia. vaccination rate in Vietnam and the world. Earlier, on October
In the first phase, from the first quarter of 2022, flights will not 31, Bamboo Airways announced plans for regular direct flights
need their passenger manifests approved by authorized agencies, linking Hanoi and Ho Chi Minh City to London, the first direct
excluding entry-exit and health control requirements. In the air route between Vietnam and the UK. Once the plan is approved
second phase, from the second quarter, international passengers by the two governments, the budget carrier will initially conduct
flying to Vietnam on scheduled flights and possessing a vaccine six commercial flights a week from the end of this year, and then
passport will not be required to undergo quarantine. Later, in the daily flights from 2022.

UPGRADE FOR LINE INTO CHINA RAILWAY LINKS
The Vietnam Railway Project gauge railway while China has switched to broad gauge, with
Management Board under the only short sections in some border provinces still using narrow
Ministry of Transport submit- gauge. This means that Vietnamese trains from Lao Cai Station
ted a project to the ministry in can only reach North Hekou Station at most in China. As a
late October with total invest- result, goods have to be unloaded from Vietnamese trains and
ment of over VND2.2 trillion ($95.88 million) to improve reloaded onto another train to be transported on China’s
railway links between Lao Cai Station and China’s North railway network. Chinese trains cannot run to Vietnam, either.
Hekou Station. According to the board, the Lao Cai - Hanoi - This problem has pushed up costs and prevented railways
Hai Phong railway line plays a significant role in transporting from meeting demand for goods transport from Lao Cai border
goods between China and northern localities in Vietnam and gate to Hai Phong, which is predicted to reach over 3 million
to Hai Phong Port. However, Vietnam has a narrow track tonnes per year in the time to come.

www.en.vneconomy.vn DECEMBER 2021 | VIETNAM ECONOMIC TIMES | 3