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Dear AmCham,

Following last week’s encouraging GDP and FDI reports for Q2, the Vietnamese government announced a significant increase in salaries for public employees, while maintaining its inflation target for Q3 at 4.5%. It also approved a long-awaited decree regarding direct power purchase agreements (DPPAs) between renewable energy generators and large electricity users. This decree will help boost the country's renewable energy sector by enabling market-driven procurement of green electricity.

Last week brought election results in the UK and France – the former as predicted and ushering a new era of stability, the latter getting a hung parliament that will constrain policy-making. In the meantime, both the Nasdaq and S&P 500 achieved record levels. There are early signs of the US economy moderating, so rate cuts are expected from September.

On behalf of the Board of Governors and all our members, I would like to extend our sincere gratitude to Governor and Treasurer Ace Wilson (Intel) and Honorary Member Alex Tatsis (U.S. Consulate General in HCMC) for their contributions to our Board and our Chamber over the last few years. Their leadership and commitment have been invaluable to our organization. As they relocate to their new assignments overseas, we wish them the very best in their future endeavors and continued success in their new roles.

On Friday July 5th, the Ministry of Industry and Trade (MoIT) hosted a hybrid DPPA Implementation Conference in Hanoi, attended by leaders of government agencies, provinces, cities, and foreign representatives. U.S. Ambassador to Vietnam Mark E. Knapper delivered remarks and Legal Committee Vice-Chair Nguyen Thanh Hai (Baker McKenzie) attended the event.

That same day, our ESG Committee hosted a Field Trip: Circular Manufacturing Model @ Saitex Fabrics. Twenty-six member representatives toured the company’s advanced fabric mill in Nhon Trach, Dong Nai, where they also learned about its circular manufacturing system, sustainable manufacturing, and stakeholder engagement practices. Joining the event was ESG Committee Co-Chair Van Ly (Raise Partners).

Also last Friday, in partnership with AVPN, we hosted a seminar titled Climate Change and Public Health: Addressing Dengue and Neglected Tropical Diseases (NTDs) centered on examples to address dengue, and opportunities for collaboration in mitigation and prevention. Healthcare Committee Vice-Chair Thien Le (Pharmacity) attended the event along with over 25 other member representatives.

Lastly, we are pleased to introduce a new section this week called Member Spotlight. Dedicated to highlighting the strength and diversity of the AmCham community and the benefits members derive, it also celebrates their contributions and achievements.

RamC

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

• Draft Corporate Income Tax Law: members are asked to submit their comments to the Tax & Customs Committee by COB Friday July 12th. These will be reviewed by the Advocacy Panel, the Hanoi chapter, and submitted 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:

• Legal & VBF Liaison Committee Meeting, Wednesday, July 10, 2024 – 5:00 pm

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

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

UPS sharing on Supply Chain Resilience

Latest offers for our members!

15% off

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on total bill for dine-in menu

Simply present your AmCham membership card to enjoy these and many other benefits.

Give your business the exposure and reach you are looking for by joining our Partner Discount Program. We welcome requests from all interested businesses looking to promote to over 2,000 representatives of over 500 corporate members.

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

[The Investor] Vietnam sets 7% growth, 4.5% inflation targets for Q3. Vietnam will strive to achieve a GDP growth of 6.5-7% in the third quarter of 2024, Prime Minister Pham Minh Chinh said at a regular cabinet meeting Saturday.

[VOV] Vietnam’s FDI capital likely to hit US$40 billion this year. Vietnam expects to attract about US$39-40 billion in foreign direct investment (FDI) capital this year, a figure which is equivalent or higher than the same period in 2023, said Deputy Minister of Planning and Investment Tran Quoc Phuong.

[VN Express International] HCMC leader says economic growth must top 7% in H2 to hit target. HCMC’s economy must expand by more than 7% in both the third and fourth quarters to meet the full-year growth target of 7.5-8%, its chairman has said.

[Vietnam Investment Review] Vietnam authorises DPPA for rooftop solar and biomass projects. A recently issued government decree permits rooftop solar, waste-to-energy, and biomass projects to engage in direct power purchase agreements (DPPA) without routing through Vietnam Electricity (EVN).

[VN Express International] Why global tech giants consider Vietnam but choose to invest elsewhere. Vietnam’s refusal to subsidize the global minimum tax companies have to pay is causing many large foreign investors to go elsewhere, according to the Ministry of Planning and Investment.

[Vietnam Investment Review] US applauds Vietnam for approving DPPA decree. The United States Mission to Vietnam has applauded the government for approving a decree on the direct power purchase agreement.

[Nikkei Asia] ASEAN wage hikes worry industries benefiting from supply chain shift. Vietnam implements 6% nationwide raise; Thailand plans 'unrealistic' 14% increase.

[VietnamNet Global] Ample space for Vietnam to boost exports to the US, experts. In the first half of this year, Vietnam exported about US$55 billion worth of goods to the US, up 26 per cent year-on-year, ranking first in terms of turnover growth, far surpassing other markets such as the EU, ASEAN and South Korea.

[CNBC] This is the most affordable country for expats in 2024, according to a new report. For the fourth consecutive year, Vietnam is the most affordable country in the world for expats, ranking first out of 53 destinations when it comes to personal finances, according to a 2024 InterNations study.