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Vietnam's economy only grew by nearly 2% after the first six months of 2020

Vietnam's economy only grew by nearly 2% after the first six months of 2020

Monday 31, 08 2020
In the context of the worldwide economic recession caused by the COVID-19 pandemic, the Vietnamese economy still shows signs of growth but is still very slow.

     I. The growth in the second quarter of 2020 is assessed as the lowest in the past 30 years.

From the beginning of 2020, the Covid-19 pandemic has had a global impact. All countries launched a huge package of support, loosening fiscal policies. However, the world economic situation was still heavily affected.
Prime Minister of Vietnam - Nguyen Xuan Phuc stated clearly: under the leadership of the Party, Vietnam will be determined to both fights the pandemic effectively and restore the economy. However, in the second quarter of 2020, Vietnam's economy grew by only approximately 0.4% - the lowest level in the past 30 years. Although Vietnam has been rated as one of the best COVID-19 epidemic control countries in the world, in the first 6 months of 2020, Vietnam's economy grew only by 1.81%.
In addition, Prime Minister Nguyen Xuan Phu asked to clarify the difficulties, challenges, solutions to prevention and control of epidemics, recovery of socio-economic development by 2020, from there, adding lessons and experiences learned after the epidemic prevention period. It is necessary to review and adjust in accordance with socio-economic development targets in new normal conditions, especially indicators affected by diseases such as economic growth, GDP per capita.

  II. There is no "lubrication fee" required when registering a car in Hanoi.

The General Department of Taxation has just sent out an official letter rejecting the press information that people registering cars for the first time at the Dong Anh Tax Department, Hanoi has to spend "hand-to-hand money".
According to the General Department of Taxation, Dong Anh Tax Department affirmed that it does not cause difficulties to receive lubrication money, at the same time, extracting the camera does not show abnormal signs of giving or receiving money between the taxpayer and the public tax authorities.

 There is no
According to the report of the Hanoi Tax Department, the one-stop department of Dong Anh Tax Department is responsible for receiving tax administrative dossiers and procedures, paid directly by taxpayers at the tax office, including Registration fee payment dossiers for cars and motorcycles, dossiers for the fulfillment of financial obligations on land, and other documents.
At the one-door department, there are 2 surveillance cameras that directly transmit the images to the administrative department and monitor the leaders of the Tax Department. All administrative procedures, especially the processing of registration fee dossiers for cars and motorbikes are handled quickly and accurately.

III. Strictly handle all forms of multi-level marketing (MLM)

From October 15th, Decree 98 stipulates that sanctioning administrative violations in commercial activities, production, and trading of poor quality goods, banned goods & consumer protection will take effect.
In particular, the penalties for administrative violations of multi-level marketing are also specified:

  • Enterprises that require multi-level marketing participants to deposit, pay money, or buy goods to sign contracts will be fined from 80-100 million VND. The act of allowing a multi-level marketing participant to receive money or other economic benefits from the introduction of a participant, but not from the purchase or sale of goods, is also subject to an equivalent penalty.


  • In particular, if the violation is committed from two or more provinces / centrally-run cities, the fine amount will be twice as large. In addition, cases, where illicit profits are under 200 million VND or cause damage to less than 500 million VND, will be subject to a fine of 30-50 million VND.


IV. FDI in Vietnam is the lowest since 2017.

According to the report of the Ministry of Planning and Investment on the foreign direct investment (FDI) situation in Vietnam as of August 20, 2020, total newly registered FDI capital, adjusted and contributed capital, and purchased shares into Vietnam has decreased by nearly 15% over the same period last year, only reaching $19.54 billion. This is the lowest level of FDI in Vietnam from 2017 until now.
 FDI in Vietnam is the lowest since 2017

  • The number of new projects granted investment registration certificates also decreased more than 25% over the same period, with 1,797 projects and total registered capital reached $9.73 billion, up 7%.


  • The increase in investment capital is mainly due to the project of Bac Lieu Liquefied Natural Gas Power Plant (LNG) being granted a new investment registration certificate with a total capital of $4 billion, accounting for 41% of the total newly-registered capital.


  • Adjusted capital, although nearly 718 times of projects registered to adjust capital, down 20% over the same period last year, but the total registered capital reached nearly $5 billion, an increase of 22%.

Translated by Vietnam Credit


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