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Dear AmCham,

Finally there are clear signs that the US economy is slowing down, reinforcing expectations of a rate cut by the Fed in September. Yields on U.S. 10-year Treasury dipped late last week for the first time since March and small-cap stocks gained ground in the U.S.

A business confidence survey of European companies in Vietnam showed a decrease in its main index. EuroCham Vietnam’s Business Confidence Index (BCI) dropped for the first time in three quarters, with business leaders expressing greater caution for the short term. According to the survey, businesses’ main challenges still revolve around regulatory and administrative issues. Medium to long term expectations continue to be strong.

According to Prime Minister Pham Minh Chinh, Vietnam is targeting GDP growth of 6.5% - 7.0% in Q3 and keeping inflation below 4.5% this year. He said Vietnam will focus on improving its investment environment and pursue a widening fiscal policy. Vietnamese banks are increasing their charter capital to support growth.

Last Friday I met with officials from the Department of Industry and Trade (DoIT) to express my gratitude for the agency’s partnership & support, and to discuss closer cooperation on conferences and events planned till the end of the year. Department heads commended AmCham and its members for their commitment to HCMC and its development, and invited closer cooperation in the future.

The summer break is upon us. I wish those of you heading out for some time off or travel, a fantastic and reenergizing break over the next few weeks.

RamC

We thank all members who recently shared their comments on draft legislation currently being discussed.

• Draft Corporate Income Tax Law: comments received from members will be compiled and shared with the Tax & Customs Committee, our Advocacy Panel, and the Hanoi chapter, before being submitted to the Ministry of Finance (MoF).
• Draft Excise Tax Law (Amended): comments from HCMC and Hanoi members were compiled, reviewed by the Tax & Customs and Food & Beverage Committees, Advocacy Panel, and submitted last week to the Ministry of Finance (MoF).

Members are encouraged to bring forward any advocacy needs or related questions to the relevant Committees, or by email to advocacyaction@amchamvietnam.com.

Similarly, we invite members experiencing instances of administrative delays and challenges to share details via email to Communications@amchamvietnam.com. We are compiling this information on behalf of our members.

Members are welcome to join, in-person or virtually:

• Tax & Customs Committee Meeting, Thursday, July 18, 2024 – 5:00 pm

Draft CIT and SCT law advocacy update and overview; Proposed customs dialogue with HCMC Customs Authority;

Major customs issues

• Manufacturing Committee Meeting, Friday, July 19, 2024 – 3:00 pm

UPS sharing on Supply Chain Resilience

[Reuters] HSBC raises Vietnam 2024 GDP growth forecast to 6.5%. HSBC Bank on Friday raised its forecast for Vietnam's gross domestic product growth for this year to 6.5% from its previous forecast of 6.0%, after second-quarter growth beats consensus.

[Nikkei Asia] Vietnam opens cloud, data center market to foreign companies. Telco law allows 100% foreign ownership after contentious storage rules.

[Reuters] Vietnam to buy excess rooftop solar power from homes and offices. Vietnam's national power grid operator EVN plans to buy excess power generated by solar panels on homes and offices to feed into its own supply, state media reported on Friday.

[VOV] Exports to US likely to enjoy constant growth in second half. With US$54.3 billion in export earnings, the US represented Vietnam's largest export market in the first half of 2024, and exports to the highly lucrative market are forecast to see continued growth in the time ahead.

[The Investor] EuroCham Vietnam’s business confidence index falls, DPPA offers hope. The EuroCham’s Business Confidence Index (BCI) for Vietnam fell to 51.3 in the second quarter of 2024 from 52.8 in Q1/2024, despite the country’s strong economic growth of 6.93% in Q2/2024.

[Business Times] US plans up to US$1.6 billion in funding for packaging computer chips. THE Biden administration said on Tuesday (Jul 9) that it would direct up to US$1.6 billion in funding towards developing new technology for packaging computer chips, a major thrust in United States efforts to stay ahead of China in creating components needed for applications such as artificial intelligence (AI).

[The Investor] Intel seeks simplified rules, lesser restrictions for Vietnam investment support fund. U.S. chip maker Intel has proposed simpler rules related to administative procedures and employment for Vietnam’s draft decree for the to-be-launched Vietnam Fund for Investment Support.

[Vietnam Investment Review] MSD Animal Health acquires Elanco’s aqua business. The completion of this acquisition bolsters MSD Animal Health’s position in the aqua industry with a comprehensive approach to promoting fish health, conservation, and the welfare and sustainability of aquaculture and fisheries.

[The Investor] Suntory Pepsico to facilitate sustainable forest development in Vietnam. An agreement signed under the National Park Passport initiative will see the Vietnam's Forestry Department and beverage maker Suntory PepsiCo collaborate on sustainable forestry development in the country.

We would also like to extend our warmest welcome to our newest members for July: