Page 7 - Layout 1

Congratulations on Europe Day AT A GLANCE

SUSTAINABILITY TO DRIVE SECTOR’S DEVELOPMENT REAL ESTATE
It was noted at a workshop held in Meanwhile, Mr. Nguyen Cong Thinh, Deputy Director of the Science
Ho Chi Minh City on April 7 that - Technology and Environment Department at the Ministry of Con-
trends in sustainability will continue struction, said the country is committed to cutting greenhouse gas
to drive Vietnam’s real estate sector. emissions by 9 per cent through domestic efforts, while reductions
Participants discussed the development of green, energy-efficient, could reach 27 per cent with support from international organizations
and resource-saving buildings, which are currently among the priorities through nationally-determined contributions. He added that such
in the global construction sector. Mr. Paul Fisher, Country Head of commitments are being realized through the implementation of a
real estate services firm JLL Vietnam, said Vietnam is now highly- host of policies, including the national green growth strategy and the
attractive to investors, adding that sustainability will push development. national energy efficiency program for 2019-2030.

SOVEREIGN CREDIT RATING IMPROVEMENTS SOUGHT UNDER PROJECT
According to the Sovereign Credit Rating Improvement Project current prices reaching about $7,500
to 2030, approved by the Prime Minister on March 31, as part of by 2030, while total social investment
efforts to make Vietnam a developing and upper-middle-income will account for some 33-35 per cent
country with modern industry, heightening the country’s inter- of GDP. Vietnam will also better
national reputation and reducing credit risks, the country aims control State budget overspending, aiming to reduce overspending
to raise its credit rating to “Baa3” or better from Moody’s and to around 3 per cent of GDP and ensure that public and
“BBB-” or better from Standard & Poor’s and Fitch by 2030, government debt do not exceed 60 per cent and 50 per cent of
which are considered “investment-grade”. Annual GDP growth GDP, respectively. Vietnam’s current credit rating is “Ba3” with
during the period will average 7 per cent, with per capita GDP at Moody’s and “BB” with Standard & Poor’s and Fitch.

50 MLN PEOPLE EMPLOYED IN Q1 LABOR MARKET
The General Statistics Office (GSO) quarter. However, the market remains unstable, as rising employment
told a press conference in Hanoi was mainly seen in the informal sector and the jobless rate is still
on April 12 that Vietnam’s labor relatively high. Given this, the GSO recommended rolling out
market is bouncing back, with 50 concerted solutions to improve the business environment, supporting
million people having jobs in the employees and employers and accelerating the socio-economic
first quarter of this year. Thanks to the government’s socio-economic recovery and development program. It suggested the government
recovery and development program, the unemployment rate came implement suitable training policies and programs to improve
in at 2.46 per cent, down 1.1 percentage point from the previous workforce quality and the competitiveness of the national economy.

SUSPECTED ECONOMIC CRIME TWO MORE BUSINESS LEADERS DETAINED
The Police Investigation Agency at the Ministry of Public Security three subsidiaries to distribute
detained Do Anh Dung, Chairman of the Tan Hoang Minh unlawful bonds nine times, totaling
Group, in early April on charges of “obtaining property by fraud”. VND10.3 trillion ($450 million).
Six other people involved in the case were also arrested, including Earlier, on March 29, the Police
Do Hoang Viet, Dung’s son and Deputy General Manager of the Investigation Agency arrested Trinh Van Quyet, Chairman of
Group. Authorities announced on April 5 they had investigated a the FLC Group, pending investigation into suspicions of stock
series of violations relating to bond distribution and capital market manipulation. On January 10, Quyet sold 74.8 million
raising at the Tan Hoang Minh Group and its subsidiaries. The FLC shares without reports and notifications in advance, as stip-
investigations revealed that from July 2021 to March 2022, ulated in regulations, triggering public concern and creating
Dung, 61, and others in the Group committed fraud by using chaos in the stock market.

STANDARD CHARTERED TIPS Q2 SURGE 2022 GROWTH
According to its latest macro- tourism, which accounts for close to 10 per cent of GDP, is the key
economic report on Vietnam, development to watch in the second quarter.” According to
entitled “Vietnam - Recovery to Standard Chartered economists, Vietnam remains a manufacturing
Gain Momentum in Quarter 2”, hub and a key link in global supply chains despite the geopolitical
Standard Chartered Bank has and pandemic-related challenges. FDI has resumed growth this
maintained its 2022 GDP growth forecast for Vietnam at 6.7 per year after contracting in 2021, and the bank expects this to
cent as the recent bounce in economic indicators has become continue, especially in sectors such as manufacturing and electricity,
more broad-based. The recovery is likely to accelerate markedly gas, and air conditioner supply. “Foreign investors remain the key
late in the second quarter of the year as domestic demand and driver of Vietnam’s contribution to the global supply chain,” Mr.
tourism recover. Short-term uncertainty prevails, however, par- Leelahaphan added. “Several major global tech companies have
ticularly around tourism recovery and pandemic risks. “The gov- shifted (or made plans to shift) production to Vietnam from
ernment lifted its quarantine requirement for international arrivals China in recent years, to diversify their supply chains. Vietnam
in mid-March,” said Mr. Tim Leelahaphan, Economist for Thailand remains attractive as a regional manufacturing hub for sectors
and Vietnam at Standard Chartered. “We think the reopening of including electronics and textiles, garments and footwear.”

www.en.vneconomy.vn MAY 2022 | VIETNAM ECONOMIC TIMES | 5