Weekly News Bulletin - No. 03, October 2023

The move by the German Government aims to ensure that its country’s economy is not dependent on a single market. A paper from the Federal Ministry for Economic Affairs and Climate Actions stated that the German Government has decided to improve the conditions of investment guarantees for selected countries and territories. If companies invest in one of the 34 listed countries, the deductible for the firms in the event of a loss will be halved. In addition, the warranty fees will also be reduced.

Amkor Technology, established in both the U.S. and South Korea in 1968 and headquartered in the U.S., inaugurated a semiconductor factory in Bac Ninh Province in northern Vietnam which carried a price tag of US$1.6 billion. This is the second semiconductor factory in northern Vietnam, following one developed by South Korea’s Hana Micron in Bac Giang Province. Amkor Technology’s factory covers an area of 23 hectares in the Yen Phong 2 Industrial Park. The factory has created jobs for some 2,000 local laborers and will increase the number of its local employees to 10,000 by 2035.

Last week highlight

The Q3 Business Confidence Index (BCI) report of the European Chamber of Commerce in Vietnam (EuroCham) released in mid-October showed that more than two years after its implementation, the European Union -Vietnam Free Trade Agreement (EVFTA) is continuing to have a positive impact on Vietnam's business landscape. More than 60% of businesses think the deal is beneficial, with the top benefit being tax cuts, followed by improved competitiveness, reduced trade barriers, and expanded partnerships with local firms and increased access to the Vietnamese market. There were 2,508 FDI projects of EU countries in Vietnam as of June, with total registered capital of 28.91 billion USD. The figure represents a significant increase compared to 18 billion USD in 1,623 projects in 2016.

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Let’s look at some other key financial and business headlines during the past week

1. USD 1.6bn semiconductor factory opened in northern Vietnam
2. Workers at FDI enterprises continuing upwards
3. Vietnam among destinations with better investment guarantees from Germany
4. Vietnam plans to extend VAT cut until end-June 2024: govt
5. FDI seems set to beat last year’s $27.7B
6. Promoting personal digital signatures for electronic payment transactions
7. Exports via e-commerce platforms become rising trend
8. Canadian firms look into opportunities in Vietnam
9. PM chairs conference with FDI firms