Mekong Monitor: Vietnam to increase rice exports to EU under EVFTA

Photo Credit: VN

 

TRADE, ECONOMY, AND INVESTMENT

 

VIETNAM

Vietnam to increase rice exports to EU under EVFTA
(8 July 2020) Vietnam’s rice quotas under the Vietnam-EU Free Trade Agreement (EVFTA) are expected to increase the country’s rice exports from the second half of 2020, said its Ministry of Industry and Trade (MoIT). Under the EVTA, which is expected to come into force from 1 August, the European Union (EU) has pledged to provide an annual rice quota of 80,000 tonnes to Vietnam. According to Tran Thanh Hai, deputy director of MoIT’s Import and Export Department, Vietnam had a modest value at US$10.7 million from rice exports to the EU because of high import tariffs in this market. By 2025, Vietnam’s agriculture sector expects to increase its rice exports by up to 65% due to the EVFTA.
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THAILAND

Thai National Shippers’ Council cut 2020 export outlook from -8% to -10%
(7 July 2020) Thailand’s exports are expected to shrink by 10% in 2020, deeper than the previous forecast of an 8% drop, due to the COVID-19 pandemic and the strength of the baht currency, the Thai National Shippers’ Council said on 7 July. Commerce Ministry data showed that during the January-March period, the value of annual exports fell 3.7% in dollar terms and declined 5.2% in baht terms. The council will send a letter to the Prime Minister Prayut Chan-ocha in a bid to help keep the baht at 34 baht per US dollar.
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THAILAND

“Travel bubbles” plan may be delayed due to rise in COVID-19 cases in prospective countries
(8 July 2020) Thailand’s plan to implement “travel bubbles” are likely to be delayed after several countries shortlisted for the scheme have seen a resurgence of COVID-19 cases, according to the Civil Aviation Authority of Thailand (CAAT). CAAT director-general Chula Sukmanop said even though talks about travel bubble arrangements are being discussed with a number of countries including China, Japan and South Korea, the scheme will be put on hold due to the rise in infections. He added that Thailand will be closely monitoring the COVID-19 situation this month. The Thai government had earlier come up with a plan to launch travel bubbles with several countries with low coronavirus risk and the initial arrangements were to be adopted with the first group of international tourists in August at the earliest.
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VIETNAM

Central bank to consider stronger money policies to aid economic growth
(7 July 2020) The State Bank of Viet Nam (SBV) could increase credit growth limits for credit institutions in 2020 or even launch stronger monetary policies to aid the country’s post-pandemic growth, said SBV governor Le Minh Hung at a government meeting last week. Hung said the central bank was asking credit institutions to cut costs and lower profit targets so lending rates could be decreased to support businesses while the banking system’s operation quality and safety are enhanced. According to SBV statistics, loan payment deadlines were restructured for nearly 260,000 customers with outstanding loans worth nearly US$775.8 million (VND18 trillion). Banks also provided new loans worth US$47.2 billion (VND1.1 quadrillion) to 240,000 customers at rates that were 0.5-2.5 percentage points lower than pre-pandemic rates.
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CAMBODIA

Investment in construction sector in first half of 2020 exceeds US$3.8 billion
(7 July 2020) Capital investment in Cambodia’s construction sector increased 13.3% year-on-year to more than US$3.8 billion in the first half of 2020, the Ministry of Land Management, Urban Planning and Construction said in a report. The Ministry received 2,522 applications for construction projects during the period, up 23.2% from the 2,047 applications received in the first half of 2019. According to the Cambodian Valuers and Estate Agents Association (CVEA), the strong growth in capital investment, however, may not necessarily reflect actual construction activities. A local housing advisory firm said that the COVID-19 pandemic has stifled construction activity and housing sales in the first half of 2020 notwithstanding the increase in capital investment. He said around 68% of high-rise condominium projects were suspended during the period, while the remainder experienced delays.
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