BUSINESS FOCUS
your reliable assistant in every business decision
Business Focus is an internal information channel of Asia Trust Investment and Management Corporation (ATIM), with aim is to furnish our Clients and business partners with useful and most updated information about changes, tendency and forecast on legal and business environment in Vietnam in different aspects. Business Focus will be released on monthly basis and with a depth study each quarter.
We are moving in turbulent time in between the danger in food, energy and currency security, the key factors affecting to high ratio of inflation. The more awareness among the members of organization the more caution should be addressed in business decision making at all levels and the better results would be delivered. We believe that the recent Government action will be a good medicine to help recovering the economy which severely suffers from the inflation and trade deficit. The shocking treatment approach may not produce the result as expected but put the deceases heavier in the long run. The well preparation for today will be a good future for tomorrow.
The previous newsletter >>>
Download the full version: 
MINISTRY PROPOSES SOLUTIONS TO CURB TRADE DEFICIT
In a move to address the country’s growing trade deficit, the
Ministry of Industry and Trade (MoIT) is calling for tough
control on foreign currency sources reserved for imports.
Driven by an upsurge in imports of capital goods for
production, Vietnam’s trade deficit in the first quarter soared to
7.36 billion USD 3.8 times higher than the same time last year.
During a meeting between the Government and leaders of
ministries, sectors and localities in Hanoi, MoIT asked the
State Bank of Vietnam to help curb the trade deficit by quickly
working out regulations to tighten importers’ access to foreign
currency sources, including limiting their purchase of foreign
currencies. Those regulations are particularly suggested to
apply to importers of consumer goods, fully-assembled
vehicles, auto parts, and motorbike components.
MoIT also outlined the need to improve the quality of price and
market forecasting services to help market regulators employ
effective measures for balancing supply and demand. In
addition to those proposals, it will screen the effectiveness of
investments in order to halt any unproductive projects. It will
also assess the demand of imports of goods and domestic
producers’ production capability and will introduce specific
solutions for each imported line.