What will happen for VN if Samsung lowers export turnover goal by $5.8 billion

In Vietnam, Samsung has been making a great contribution to the country’s GDP over the last many years.

A ministry report to the Prime Minister about the possible impact that Covid-19 may have on key industries shows that electronics manufacturing will bear serious impact in the following quarters of the year because of decline in demand from the American and European markets.

What will happen for VN if Samsung lowers export turnover goal by $5.8 billion



The ministry said Samsung’s global revenue and output is predicted to decrease by $5.8 billion to $45.5 billion this year.

In Vietnam, Samsung has been making a great contribution to the country’s GDP over the last many years. Of the GDP value of $220 billion in 2017, $60 billion came from Samsung.

Nguyen Van Nam, former director of the Trade Research Institute, said the decrease is foreseeable, and not only Samsung but the whole economy will be affected by Covid-19.

A ministry report to the Prime Minister about the possible impact that Covid-19 may have on key industries shows that electronics manufacturing will bear serious impact in the following quarters of the year because of decline in demand from the American and European markets.

In the most optimistic scenario, Vietnam’s GDP will grow by 4.8 percent in 2020, far below the target of 6.8 percent.


Asked what Vietnam should do now to minimize the adverse impact, Nam said state agencies need to identify products that have haf the sharpest decrease in production output and exports, and thr reasons behind the decreases (lack of input materials, lack of capital, or low demand).

The analyses will help the government understand which products Vietnam should focus on to obtain the highest possible growth rate.

Rice, for instance, is one of a few products which still can sell well. Some other countries have cut export volumes for their food security policy.

 

Rice production is a great advantage of Vietnam, which hasn’t had severe impacts from the epidemic. Vietnam can gather strength on producing and exporting rice to offset the decreases in other sectors.

Vietnam, which has gained initial encouraging results in the fight against Covid-19, can provide products needed all over the world. Textile and garment companies, for example, can shift to make face masks that meet international standards.

Nam emphasisef the cooperation between the state and enterprises. The state, in addition to support in capital, tax reduction and debt rescheduling, also needs to help businesses survey markets.

Samsung Vietnam’s decision to lower the targeted export turnover in 2020 will affect Vietnam’s export targets and GDP growth. Nam stressed the task of easing reliance on foreign invested enterprises. However, he said this is a long-term strategy and cannot be obtained overnight.

Thoi Bao Kinh Te Sai Gon reported that Vietnam’s foreign trade in the first two months of the year picked up by 2.4 percent year-on-year to reach $74 billion. 

Kim Chi

Over 300 Samsung experts quarantined after landing in Vietnam

Over 300 Samsung experts quarantined after landing in Vietnam

Asiana Airlines flight OZ7737 landed at Vietnam’s Van Don International Airport in Quang Ninh province on April 17, bringing 308 experts from the Republic of Korea to Vietnam.

Part of Samsung Vietnam isolated after COVID-19 case detected

Part of Samsung Vietnam isolated after COVID-19 case detected

A production unit of Samsung Display Vietnam which produces LCD & AMOLED screens in the northern province of Bac Ninh has been cordoned off after one of its workers was confirmed to contract the coronavirus.

 
 

Other News

.
Nine more expressway contractors suspected of construction violations
Nine more expressway contractors suspected of construction violations
BUSINESSicon  05/07/2020 

Nine more former contractors have been accused of irregularities in the construction of a 139-kilometer-long expressway whose severe deteriotion was reported shortly after its opening in central Vietnam.

VASEP decries taxes on semi-processed and processed seafood
VASEP decries taxes on semi-processed and processed seafood
BUSINESSicon  05/07/2020 

Tax agencies have slapped many firms with a corporate income tax on semi-processed seafood products at 20%, while their products for exports or domestic consumption that are mainly processed, 

Domestic property market faces uncertainty
Domestic property market faces uncertainty
BUSINESSicon  05/07/2020 

The domestic real estate market is hoped to have growth in the fourth quarter of this year and before the Lunar New Year 2021 if, by this year-end, the domestic economy is restored to levels from before the COVID-19 pandemic.

Hanoi moves towards approving construction of third Aeon Mall
Hanoi moves towards approving construction of third Aeon Mall
BUSINESSicon  05/07/2020 

The proposed construction of a parking lot and the Aeon Mall Hoang Mai Trade centre will soon be decided upon by the Hanoi People's Committee as Prime Minister Nguyen Xuan Phuc has approved the adjustment of the city's construction planning.

Pork and oil prices key to keeping inflation in VN under control: experts
Pork and oil prices key to keeping inflation in VN under control: experts
BUSINESSicon  05/07/2020 

With huge inflation pressure on the way in the remaining months of this year, a close watch must be kept on the prices of key products like oil and pork to hit the goal of keeping inflation below 4 per cent, experts have said.

US firms create record 4.8 million jobs in June
US firms create record 4.8 million jobs in June
BUSINESSicon  03/07/2020 

The reopening of businesses has spurred job growth but a rise in Covid-19 cases may hamper recovery.

Chubb Life Vietnam honored “Best Companies to Work for in Asia 2020”
Chubb Life Vietnam honored “Best Companies to Work for in Asia 2020”
BUSINESSicon  03/07/2020 

Chubb Life Vietnam has been recognized as one of the “Best Companies to Work for in Asia 2020” by HR Asia, the continent’s leading publication for Human Resources professionals.

VN government to sell stake in country’s biggest brewery
VN government to sell stake in country’s biggest brewery
BUSINESSicon  03/07/2020 

The Government will sell its 36% stake, equivalent to 230.8 million shares worth some VND37.6 trillion (US$1.6 billion), in the Saigon Beer-Alcohol-Beverage Corporation (Sabeco), the country’s biggest brewery, this year.

Fabric production an issue for Vietnam's textile industry
Fabric production an issue for Vietnam's textile industry
BUSINESSicon  03/07/2020 

Fabric production is a challenge for Vietnam's textile and garment industry when it comes to free trade agreements (FTAs) requirements on product origin.

Vietnam's FDI inflows to increase
Vietnam's FDI inflows to increase
BUSINESSicon  03/07/2020 

A new wave of foreign direct investment driven by global uncertainty such as the US-China trade war and the COVID-19 pandemic is imminent in Vietnam, 

Predatory debt collectors hustling on borrowed time
Predatory debt collectors hustling on borrowed time
BUSINESSicon  02/07/2020 

Debt-collecting businesses are to be banned in Vietnam as part of local government action to protect customers’ rights, with the upsurge of predatory lending services triggering heated debate and eroding public trust.

Vietnam draws up roadmap to eliminate monopoly in power sector
Vietnam draws up roadmap to eliminate monopoly in power sector
BUSINESSicon  06/07/2020 

A solution for the power industry has been put into discussion: selling entire power plants to investors after they are put into operation.

Proposal steers sports betting to starting line
Proposal steers sports betting to starting line
BUSINESSicon  03/07/2020 

A proposed national steering committee is expected to help Vietnam build clearer prize-winning entertainment rules and set up closer connections between government authorities and investors 

State Audit of VN notes high pay for foreign specialists in ODA projects
State Audit of VN notes high pay for foreign specialists in ODA projects
BUSINESSicon  05/07/2020 

A foreign specialist in an ODA (Official Development Assistance) project can receive VND500-700 million a month, while pay for a Vietnamese specialist is just tens of millions of VND.

EVFTA will broaden skies for aviation across Vietnam
EVFTA will broaden skies for aviation across Vietnam
BUSINESSicon  03/07/2020 

Never-before-seen activities in Vietnam’s aviation sphere are expected to come to EU businesses soon on the back of the landmark EU-Vietnam Free Trade Agreement.

RCEP benefits on horizon for ASEAN
RCEP benefits on horizon for ASEAN
FEATUREicon  02/07/2020 

With the Regional Comprehensive Economic Partnership scheduled to be signed this November, doors will soon open to attract more investment and swell Vietnam’s trade with international partners.

An abundance of advantages to diversify ops into Vietnam
An abundance of advantages to diversify ops into Vietnam
BUSINESSicon  02/07/2020 

Amidst the new wave of foreign investment and relocation after the pandemic, director general of the Foreign Investment Agency Do Nhat Hoang explained Vietnam’s outstanding advantages and how it can seize arising opportunities.

Vietnam closes in on tech app tax avoiders
Vietnam closes in on tech app tax avoiders
BUSINESSicon  02/07/2020 

Apple and Google are once again under fire over tax avoidance in Vietnam, with none of their revenues from their app markets being retained in the country. However, a new law could soon enable local authorities to take their cut.

Drugmakers fight to attain approval
Drugmakers fight to attain approval
BUSINESSicon  02/07/2020 

Switzerland’s drug maker Novartis Pharma Services AG has announced a GMP qualification for Lek Pharmaceuticals d.d. within the scope of certification for medicines in Vietnam,

PouYuen lays off thousands  due to Covid-19 difficulties
PouYuen lays off thousands due to Covid-19 difficulties
BUSINESSicon  02/07/2020 

More than 6,000 workers of the Taiwanese company, PouYuen, in HCM City have been laid off due to the company's business difficulties during the Covid-19 pandemic.

 
 
 
Leave your comment on an article

OR QUICK LOGIN