Why Vietnam Has Become a Promising Alternative for US Businesses in Asia

Following four decades since the end of the Vietnam War, Vietnam’s relationship with the US has changed significantly.

After the Vietnam War in 1975, the US and Vietnam announced normal diplomatic relations on July 11, 1995.

Vietnam and the United States celebrated 25 years of diplomatic relations in July this year – a testament to improving bilateral and economic ties since the Vietnam War.Vietnam has emerged as an ideal alternative manufacturing destination to China for US businesses, in part due to the US-China trade war and disrupted supply chains due to the coronavirus pandemic.Vietnam Briefing discusses trends in the Vietnam-US relationship, growing economic ties, and how US businesses can leverage and benefit from moving their production to Vietnam. US and Vietnam commemorate 25 years of diplomatic relations

This year in July, the US and Vietnam commemorated 25 years of diplomatic relations – with the US congratulating Vietnam on its ASE…

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Asian refiners EBITDA will decline by around 30% says Moody’s

Moody’s Investors Service says in a new report that the aggregate EBITDA of Asian refiners will decline by around 30%

Aggregate EBITDA will decline around 30% in 2020 on steep inventory losses and weak marginsA gradual economic recovery will improve margins in 2021, but risks are tilted to the downside

“EBITDA and margin will improve in 2021 as a gradual economic recovery results in higher refining margins and the absence of inventory losses leads to higher earnings. But risks to margin recovery are firmly tilted to the downside.”

Hui Ting Sim, a Moody’s Analyst.

“Margin recovery will be delayed if a resurgence in infections leads to renewed lockdowns. We’re also seeing higher market imbalance, with a surge in refining capacity continuing through 2022 driven by investments in Asia and the Middle East, which will further weigh on the extent of margin recovery,” adds Sim.

Among rated Asian refiners…

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Thailand Voted Best Place for Starting Business

Thailand was voted to be the world’s best place to start business for the second consecutive year, according to the Department of Business Development. 

Wuthikrai Leeviraphan, director-general of the department, said that recently U.S.News & World Report posted its list of “Best Countries to Start a Business 2020” and Thailand ranked first for the second year in a row because it took only six days and five procedures to start a business in the country. 

Last year the same agency also ranked Thailand in the first place. 

“This year the department will further improve services for operators to start business. Time and procedures for the process will be shortened. It will cooperate with other organizations and apply artificial intelligence to serve businesses and people. This is for Thailand to attract more foreign investors,” Mr Wuthikrai said. (TNA)

The 2020 Best Countries to Start a Business ranking draws from the re…

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State of emergency likely to be extended for another month

General Natapol Nakpanich, the deputy army chief and deputy head of an ad hoc committee on the relaxation of COVID-19 control measures, said the extension of the state of emergency would rarely impact society because people could continue with their normal life and rallies or anti-government protests could be organized.

The Center for COVID-19 Situation Administration (CCSA) needed the executive decree on public administration in emergency situations because the disease control act could not be applied in some situations while the decree could be exercised to integrate efforts by various governmental organizations to swiftly respond to COVID-related situations, he said.

According to M.Natapol the decree is needed to ensure people arriving from other countries are quarantined and to quickly mobilise organisations to respond to any fresh Covid-19 outbreak.

“The panel of CCSA recommends the decree be imposed for another month. It will propose …

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COVID-19 to Boost Thai Medical Industry

BANGKOK (NNT) – Though COVID-19 has badly impacted many industries, some such as medical science and technological advancement may benefit from aspects of the crisis.

The University of the Thai Chamber of Commerce, has suggested Thai entrepreneurs grab the opportunity to develop innovations, and some Chinese medical equipment companies are preparing to move their production bases to Thailand.

Mr. Aat Pisanwanich, Director, Center for International Trade Studies (CITS), University of the Thai Chamber of Commerce, said today a major factor affecting the thinking of foreign entrepreneurs especially Chinese businesses to open branches and production bases in Thailand, is the COVID-19 pandemic.

As it has affected the whole business cycle, business operators must consider the rise in capital costs and other risks.

Foreign entrepreneurs have also noted that Thailand has shown an ability to cope with the pandemic, while the Thai…

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Thailand’s COVID-19 response: an example of resilience and solidarity

In January, Thailand became the second country to confirm a COVID-19 case but, since then, the country has shown remarkable resilience and, as of late July, there had not been any recorded cases of domestic transmission for nearly two months.

Gita Sabharwal, the UN Resident Coordinator in Thailand, explains that this success is thanks to a combination of government action, social responsibility and community solidarity. 

Thailand’s overall response, and ability to curb infections, has led the World Health Organization (WHO) to identify Thailand, alongside New Zealand, as a success story in dealing with the pandemic.

Of course, that success entirely depends on continued vigilance, a whole-of-society approach, and ramped up testing to prevent a second wave as borders open and full economic activities are resumed. 

The economic impact of the pandemic has been serious, with predictions of an 8.1 per cent contraction of the economy i…

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Thailand Ranks First in the Global COVID-19 Recovery Index

Thailand ranks first among the countries with the highest COVID-19 recovery index, according to a report issued by the Global COVID-19 Index (GCI).

The GCI report, published on 28 July 2020, gave Thailand an index score of 82.06 from 100 points, putting it on top of the countries that have made the most progress in curtailing the spread of the pandemic and can be used as examples of best practices.

In the ranking of countries by recovery index, South Korea comes second, receiving 81.09 points. Coming third is Latvia (80.81), followed by Malaysia (79.37), Taiwan (78.94), New Zealand (78.55), Lithuania (77.54), Australia (77.18), Canada (75.87), and Malta (75.79).

Among the 20 countries with the highest recovery index, five are in Asia. They include Thailand, South Korea, Malaysia, Taiwan, and Vietnam.

The GCI bases 70 percent of its calculation on big data and daily analysis, ranking 184 countries on how well they are coping with t…

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Thailand to extend Emergency Decree for one more month

Thailand’s Prime Minister Prayut Chan-o-cha approved an extension of the state of emergency for another month, maintaining that such an extension has nothing to do with anti-government protests.

The state of emergency is due to expire at the end July, but the CCSA’s subcommittee agreed at a meeting yesterday to propose extending the state of emergency until the end of August.

Government officials insist the emergency measures are for guarding against the resurgence of the coronavirus and unrelated to the ongoing protests.

A large anti-government protest on Saturday drew 2,500 people around the Democracy monument in Bangkok. Student activists announced that more rallies will take place from this week through August. 

 With the COVID-19 pandemic having devastating effects on the economy, the University of the Thai Chamber of Commerce (UTCC) has warned that recent protests by youth movements could increase the risks to the economy, w…

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Thailand’s post-Covid-19 economy and the most vulnerable

Thailand has earned international praise for its containment of the Covid-19 pandemic, with very modest levels of infections and less than 60 deaths as of July 1.

In response to its sweeping lockdown measures, the government launched an unprecedented emergency spending package of 2.2 trillion baht, amounting to nearly 13% of GDP.

Yet, the economic impact of the pandemic has been particularly harsh for Thailand, particularly on the country’s most vulnerable communities — those relying on the informal economy, migrant workers, farmers and others including women, children and the elderly.

“New Normal” outlook remains bleak

As life in the cities and countryside settles into a “new normal,” the outlook remains bleak. A range of forecasts suggests the Thai economy could contract by an annual 5% to as much as 10% in 2020 — among the sharpest projected declines in the East Asia and Pacific Region.

This is due partly to t…

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Thailand’s financial system more vulnerable, says BoT

The Thai financial system has become more vulnerable due to the more-than-expected contraction of the economic outlook in light of the COVID-19 situation, said Bank of Thailand’s (BoT) monetary policy committee’s latest update.

The Committee assessed that the Thai economy would contract by 8.1 percent in 2020 but would expand at 5.0 percent in 2021 in tandem with a gradual improvement in both domestic and external demand.

However, the Bank of Thailand warned that the Thai economy would contract this year more than the previous assessment due to the more-severe-than-expected COVID-19 pandemic which could lead to (1) sharp correction of asset prices in global financial markets, (2) defaults by businesses and households in many countries including Thailand, and (3) corporate bonds being downgraded to non-investment grade.

Additionally, the Committee deemed it important to prepare financial measures to continuously alleviate impact…

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