Vietnam has strong and bettering economic fundamentals: journal hinh anh 1

Financial website thearmchairtrader.com has run a story which commented that the economic fundamentals underpinning Vietnam were strong and just going to get better.

According to the article, Vietnam is one of the Southeast Asian nations with a good grip on the pandemic and also stands to benefit from the transition of the value chains in the region.

It cited the view of Vietnam Holding, a London-listed investment company which invests in high growth companies based in Vietnam, which considers Vietnam one of the best emerging markets in the world. The country’s stock market has been one of the best performing in Asia, up over 23 percent this year.

The fund’s manager, Dynam Capital Management, was quoted as saying that despite many bigger foreign investors getting out of Vietnamese stocks in 2020-21, retail investor participation has supported prices considerably. Vietnam now has over 4 million trading accounts, which equates to around 3 percent of the population of the country.

Dynam Capital expressed optimism about Vietnam’s financial services, holding that the country remains a fast-evolving Asian economy and has not been saddled with the same pandemic issues. GDP growth looks solid and the population is big, giving it the sort of people power that will allow it to compete effectively in manufacturing and heavy industry, it stated./.

Food exporters to China asked to make urgent registration

The Vietnam Sanitary and Phytosanitary Notification Authority and Enquiry Point (SPS Vietnam Office) on October 21 sent a document to People’s Committees of centrally-run cities and provinces, the Vietnam Food Administration and the Ministry of Industry and Trade’s Department of Science and Technology requesting urgent registration of food producers and exporters to China.

The registration is required to comply with the General Administration of China Customs of China (GACC)’s Decree 248 on the Registration and Administration of Overseas Producers of Imported Food, which will take effect on January 1, 2022, and the GACC Bureau of Import and Export Food Safety’s Decree 353/2021 on guidelines for registration of foreign firms.

Accordingly, food producers and exporters to China must submit registration dossiers to State management agencies on food safety before October 26.

The Ministry of Agriculture and Rural Development’s Plant Protection Department, Animal Health Department, and National Agro-Forestry-Fisheries Quality Assurance Department are responsible for guiding enterprises, receiving and checking registration dossiers, and conducting the registration of eligible enterprises with the GACC before October 30./.

Vietnam seeks to bolster economic, trade partnership with Algerian province

A working delegation from the Vietnamese Embassy in Algeria led by Ambassador Nguyen Thanh Vinh paid a working trip to Constantine province, the third largest economic hub of the African country that has advantages in tourism, farming, breeding and pharmaceuticals.

During the visit from October 20-21, the delegation had a working session with Constantine Governor Messaoud Djari, during which Vinh underlined that Vietnam and Algeria have shared sound traditional ties and many similarities.

Algeria is one of the most important partners of Vietnam in Africa, he said, noting that the two sides have working together to promote their relations in various fields such as politics, economy, trade, investment and labour export.

The diplomat said that he was impressed by high development potential of Constantine province and affirmed that the embassy is willing to help connect businesses of the province and Vietnamese partners.

For his part, Djari said that the province is ready to coordinate with the Vietnamese side to foster collaboration in areas of shared interest.

Briefing the guest on the economic development strategy of Algeria and Constantine in particular, he underlined that economic recovery is the current top priority, adding that the country aims to develop a diverse economy which is less independent on oil.

He suggested that the province and Vietnam should cooperate in areas where Constantine has strengths and potential such as tourism, agriculture and pharmaceutical industry.

During the trip, Vinh also had a working session with President of the Constantine Chamber of Commerce and Industry Souici Larbi, during which the two sides briefed each other on their economic situation and potential, and discussed measures to promote bilateral ties in all fields, especially economy and trade.

Larbi said that the pharmaceutical industry, agriculture and construction are among major development focuses of Constantine, adding that the locality is constructing a number of industrial parks to promote its strengths.

He hoped that Vietnam will share experience in socio-economic development with Algeria and Constantine.

On the occasion, the ambassador also attended the opening of the real estate exhibition “Bâti-Est-Expo 2021,” during which he introduced to local firms a handbook on Vietnamese prestigious businesses in different areas./.

Vietnam, Canada seek to expand partnership in clean energy development

A workshop on cooperation opportunities in clean and renewable energy development between Vietnam and Quebec of Canada took place on October 21 in both online and face-to-face forms, attracting the participation of Canadian scholars and  representatives from  businesses of the two countries.

The event was organized by the Vietnamese Embassy in Canada, in coordination with the Ministry of International Relations and La Francophonie and the investment promotion agency of Quebec.

Addressing the event, Vietnamese Ambassador to Canada Pham Cao Phong emphasized that Vietnam - one of the countries hardest hit by climate change - has realized the importance of transitioning to a new energy structure, where green energy sources play an increasingly important role.

Vietnam commits to increasing the ratio of renewable energy sources in the total primary energy supply to 20 percent by 2030 and 30 percent by 2045, he said, adding that the transformation in the energy sector requires not only large capital investment in infrastructure, but also technical expertise and technologies - an area where cooperation between Vietnam and Canada can play an important role.

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) that Vietnam and Canada are founding members, not only promotes trade but also facilitates closer cooperation in other areas between the two countries, including energy, he noted.

The diplomat suggested foreign investors come to the Vietnamese market to explore new potentials, saying that Vietnam always creates favourable conditions for foreign investors to do business and invest in the country, including clean and renewable energy development.

For his part, Eric Marquis, Assistant Deputy Minister of the Ministry of International Relations and La Francophonie, said the workshop is part of Quebec’s Indo-Pacific strategy, which is expected to be announced soon.

This strategy marks a step forward in bilateral relations, affirming the importance of the Indo-Pacific to Quebec, he stressed.

Marquis affirmed that Vietnam is an important emerging market for Quebec, keeping the position of Quebec's largest partner in Southeast Asia in 2020, with two-way trade increasing by over 440 percent from 2011 to 2020.

Vietnam is also part of the process of reshaping global value chains, especially in Asia, he added.

The Quebec side expressed its hope that this workshop will not only mark the start of the building of a closer relationship between Vietnam and Quebec, but also launch a dynamic partnership in the energy field in the context that Vietnam is one of the most efficient electricity markets in Southeast Asia./.

Vinh Long's leaders hold dialogue with Taiwanese investors

The Mekong Delta province of Vinh Long on October 21 held an online dialogue with investors from Taiwan (China).

Speaking at the event, Chairman of the provincial People's Committee Lu Quang Ngoi said that as of September 20, Taiwanese investors had ranked 4th out of 141 countries and territories pouring capital into Vietnam, with 2,831 valid projects worth 35.03 billion USD.

In Vinh Long, there are currently 67 valid FDI projects worth 779 million USD, coming from 18 countries and territories. Taiwanese investors are running seven projects, with a total investment of 237.31 million USD, mainly in processing and manufacturing.

Ngoi said that one of Vinh Long’s top priorities now is to focus on calling for investments in infrastructure projects in industrial zones and clusters, and high-tech agricultural projects in order to bring into full play the province’s strengths.

He affirmed that, coming to Vinh Long, investors will find a stable, open and transparent business and investment environment with a dynamic, creative and friendly administration apparatus.

Vinh Long is willing to listen to enterprises’ ideas and recommendations, and is stepping up administrative procedure reform, and taking measures to better the business and investment environment, he added.

Chang Wen Chung, Head of the Economic Division under the Taipei Economic and Cultural Office in Ho Chi Minh City, said that the COVID-19 pandemic has not yet affected the desire of Taiwanese businesses to invest in Vietnam. If Vietnamese provinces and cities can provide cleared land, have investment incentives, and ensure infrastructure for electricity, water, roads and labour, many Taiwanese businesses will surely invest in projects in the country, he added.

Particularly in Vinh Long, investment projects of Taiwanese enterprises remain modest, which shows that there is still large room for investment, according to the official.

In the coming time, the office is ready to coordinate with the province's authorities to organise investment workshops, and fact-finding trips in Vinh Long and encourage businesses to invest in the locality, he added./.

Italian firms interested in renewable energy in Vietnam, ASEAN

The Vietnamese Embassy in Italy and the Festival della Diplomazia (Diplomacy Festival) jointly held a conference on renewable energy and sustainable development in ASEAN in Rome on October 20, which drew a large number of Italian and European firms.

Addressing the event, Vietnamese Ambassador to Italy Nguyen Thi Bich Hue said that renewable energy is a priority of many countries, aiming to serve sustainable development goals and the reduction of global climate change impacts.

She noted that Italy has proved its important role in the field through positive initiatives while performing the role of the President of G20 and co-host of the COP26.

Renewable energy has received great attention and investment from ASEAN countries, she said, noting that in Vietnam, the Government has defined climate changes as a top issue. Vietnam aims to raise the ratio of renewable energy in the country’s energy structure to 30 percent in 2030 and 40 percent in 2045, she stated.

She held that this is a good chance for businesses in Italy and ASEAN to strengthen partnership in this field.

Vice President of the Italy-ASEAN Association Romeo Orlandi stressed that investment in renewable energy is a practical orientation that is suitable to the goal of sustainable development.

For his part, Nguyen Duc Thanh, Vietnamese Trade Councilor in Italy briefed participants on Vietnam’s achievements and major policy orientations in energy.

He underlined that the Italian business community has the potential and strength to realise cooperation and investment opportunities in Vietnam in the field.

Representatives from Italian and European firms expressed interest in the areas of renewable energy and sustainable development in Vietnam and other ASEAN countries and voiced their hope to expand cooperation and investment in the relevant fields in the time to come./.

Forum discuses Vietnam-UK trade, investment, climate change response cooperation

A Vietnam – UK economy and trade forum took place in Hanoi on October 21, discussing the nations’ economic, trade and investment ties as well as the issues of climate change and low-carbon economy.

The event was co-organised by the Vietnam National University, Hanoi – University of Economics and Business (VNU-UEB), the Ministry of Natural Resources and Environment’s Department of Climate Change, and the Center for International Forestry Research (CIFOR) and World Agroforestry (ICRAF).

According to VNU-UEB Rector Nguyen Truc Le, the forum aimed at connecting Vietnamese and UK partners in trade, services and investment, and at promoting the sides’ bilateral cooperation in education, training, and science-technology.

Presentations at the forum focused on some key features of the UK-Vietnam Free Trade Agreement (UKVFTA); the impact of the COVID-19 pandemic on bilateral trade; policies to reduce greenhouse gas emissions towards a low-carbon economy in Vietnam; and the potential, opportunities, and challenges for the development of a forest carbon market, among other matters.

The event also opened up new collaboration in research between universities under the Vietnam National University, Hanoi, and research agencies, development organizations, and state management agencies of Vietnam and the UK. Such collaboration will contribute to solving major issues of sustainable socio-economic growth and climate change response of the sides involved.

At the forum, the VNU-UEB introduced its publication on the Vietnam – UK economic and commercial relations toward a low-carbon economy and sustainable development./.

Ministry asks localities to increase inter-provincial passenger transport

The Ministry of Transport has recently issued a document asking People’s Committees of cities and provinces to coordinate in instructing the implementation of temporary guidelines on transport activities so as to ensure safe and flexible adaptation to and effective control of COVID-19 pandemic.

The Government has issued Resolution No.128/NQ-CP dated October 11 on temporary regulations on safe and flexible adaptation to and effective control of COVID-19. To implement the resolution, the Health Ministry has promulgated temporary medical guidance and the Transport Ministry has also released temporary guidelines on transport activities in the five areas of land, inland waterway, maritime, railway and aviation. 

Therefore, to ensure smooth and concerted transport activities, People’s Committees of cities and provinces were asked to direct local agencies and units to follow the ministry’s guidelines, and instruct departments of transport to increase passenger volume on fixed intra-provincial and inter-provincial routes licensed by the provincial authorities.

The ministry also suggested localities resume other routes depending on the local level of pandemic risks, while striving to maintain from 10 percent to a maximum 50 percent of licensed trips per month in line with requirements in the temporary guidelines.

In a report reviewing passenger transport activities on fixed routes during one week of resumption from October 13-18, the ministry said authorities of 48 provinces and cities had allowed the resumption of inter-provincial routes, while in 15 other localities, the transport departments had submitted plans to resume routes to the municipal/provincial authorities./. 

Top 50 prestigious public companies in 2021 announced

Vinhomes JSC, Hoa Phat Group JSC, Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), Military Commercial Joint Stock Bank and Vietnam Dairy Products Joint Stock Company (Vinamilk) are among the top 50 public companies in 2021 announced by Vietnam Report.

The list honours public firms that have tried their best to overcome difficulties caused by the COVID-19 pandemic, seizing new opportunities and achieving remarkable achievements in providing products and services to customers.

Selection was based on assessing the prestige and operational efficiency of the firms through investors, experts and market, as well as their communications prestige.

According to Vu Dang Vinh, general director of Vietnam Report, over the past two years, the world in general and Vietnam, in particular, have faced difficulties and challenges due to the COVID-19. The pandemic has affected most businesses, but there are still some that growing strongly.

This showed that the role of building a reputation for the business is one of the key factors, opening up the prosperous and stable development and being a solid foundation of the business in the hearts of customers, especially in the context of a new type of globalisation in post-COVID-19 era, he said./.

Vietnam, Uruguay look to expand economic cooperation

Deputy Minister of Industry and Trade Do Thang Hai and Uruguayan Deputy Minister of Foreign Relations Carolina Ache Batlle on October 21 co-chaired the second meeting of the Vietnam-Uruguay Joint Committee on economic, trade and investment cooperation.

During the online event, the two sides reviewed cooperation between the two nations across fields from economy, trade, investment, finance to agriculture and science and technology since the first meeting held in October 2018 in Uruguay's Montevideo capital city. They discussed and proposed plans to further promote bilateral cooperation in the coming time.

They agreed that bilateral trade relations still remains modest and has yet to match the potential. They underlined the need to promote cooperation in bilateral and multilateral frameworks, and diversify import and export products.

The two sides should focus on promoting trade promotion and connection activities, and supporting the business community in seeking markets and business opportunities towards gradually recovering post-COVID-19 bilateral trade.

Data from the General Department of Vietnam Customs show that the total import-export turnover between Vietnam and Uruguay in 2020 reached 70.76 million USD, down 6.89 percent year-on-year.

For agricultural cooperation, the two sides welcomed the establishment of direct contacts to continue to exchange technical issues in the process of licensing for potential agricultural products to be exported to each other's markets.

They also suggested cooperation in food safety, customs, science and technology, software, and wood exploitation and processing.

The successful organisation of the meeting is a clear proof of the fruitful relationship and determination to promote all-around cooperation between the two countries./.

Most prestigious food, beverage firms announced

Winners of the Vietnam Top 10 Reputation Award 2021 in the food and beverage industry were unveiled by the Vietnam Report JSC on October 20.

They include the lists of the 10 most prestigious food companies in terms of milk and dairy products; sugar, confectionery, and other nutritious foods; packaged food, spices, and cooking oil; and fresh and frozen food.

The lists of the top 10 beverage firms in terms of alcoholic and non-alcoholic drinks were also released.

The rankings were compiled basing on the businesses’ financial reports in the most recent year, their prestige on the media, and surveys of the companies and relevant sides such as consumers and experts conducted in August this year.

Vietnam Report said the country’s economy grew steadily, by 5.6 percent, in the first half of 2021 with positive and stable macro-economic indexes. However, the situation became worse in the third quarter, when the COVID-19 pandemic got complicated with the spread of the Delta variant, forcing the Government to take more drastic response measures.

 

As an important sector, the food and beverage industry has also been hit hard. Prolonged impacts of the pandemic have become clearer since the start of the fourth wave of COVID-19 infections in April, especially since July, severely affecting more than 91 percent of businesses in this sector.

Vu Dang Vinh, General Director of Vietnam Report, said most of enterprises have become more prudent, with 78 percent predicting more business difficulties in the remaining months, doubling the rate of 37 percent one year ago.

However, he added, up to 80 percent of food and beverage firms believed that the country will recover quickly after the pandemic. About 47 percent expect that it will take them about six months to recover, 33 percent others seven - 12 months, and 13 percent more than 12 months./. 

VinFast recalls nearly 2,900 Chevrolet Spark cars

Vietnamese automaker VinFast will start recalling 2,853 units of Chevrolet Spark Van model in Vietnam from October 25 for checking and replacing details floor mats that may be corroded (oxidized) due to high Bromine content in the mats.

The scheme will last until October 25, 2025, and applies to Chevrolet Spark units assembled by General Motors (GM) Vietnam between March 2013 and December 2015. VinFast has acquired the operation of the GM since 2018.

The checking and replacement will last 8-32 hours for each unit with free of charge.

According to Vietnam Register, floor mats containing Bromine and details under the car such as the seat frame, seat rails, seat belt racks, fuel tank cap levers can be corroded under conditions of high temperature and humidity of the climate in Vietnam. This is not a big problem because the natural corrosion process is slow, every car is the same.

If bromine comes into contact with metal parts under the carpet, it can cause the corrosion process to take place faster, causing damage to components and affecting vehicle safety.

So far, the agency has received no report related to incidents caused by the error.

However, it advised owners of cars in Chevrolet Spark model to promptly take their cars to VinFast service centres and dealers for checking and replacing floor panels and other details if necessary./.

Nearly VND7 trillion to be poured into Sa Pa airport project

Deputy Prime Minister Le Van Thanh on October 21 approved a project to build an airport in Sa Pa tourist township of the northern province of Lao Cai with a total investment of approximately VND7 trillion.

The project, which is to be invested in the form of a public-private partnership (PPP), will be divided into two separate phases, with the first phase to get off the ground this year and to meet Class 4C standards set by the International Civil Aviation Organization (ICAO).

The airport will have one runway and one terminal in the first phase, and is expected to have one more terminal after 2030, with its design specifically to receive aircraft such as Airbus A320 and Boeing 737.

It is designed to serve 1.5 million passengers annually in the first phase and 3 million passengers in the second phase that will start in 2028.

The 50-year project will have an estimated investment of VND6.95 trillion, of which roughly VND2.7 trillion is sourced from the State budget for site clearance, compensation and infrastructure construction, while the remainder comes from private financiers.

The Government has assigned the Lao Cai provincial administration to take full responsibility for making a pre-feasibility study report, as well as for selecting qualified investors to implement the project.

Vietnam Airlines operates first flight to Con Dao after social distancing period

Vietnam Airlines on October 22 morning launched its first flight to Con Dao island offshore Ba Ria-Vung Tau southern province after a social distancing period to curb the spread of COVID-19.

The flight departing from Ho Chi Minh City was operated by its affiliate Vasco.

Meanwhile, the first flight from Con Dao to HCM City was set to take off later the same day with nearly full seat occupancy. Stringent COVID-19 prevention measures were strictly carried out during the flight.

At present, Vasco is carrying out two roundtrips per day on the HCM City-Con Dao air route and one per day on the Can Tho-Con Dao route, meeting people’s travel demand and fostering tourism, trade and socio-economic development of the island in particular and Ba Ria-Vung Tau at large./.

VIB’s profit increases 32 per cent in Jan-Sep

The Vietnam International Bank (VIB) posted a growth rate of 32 per cent in both total operating income and pre-tax profit in January-September at VND10.3 trillion (US$442 million) and VND5.3 trillion ($228 million) respectively, following its business results announced on Friday.

During the period, the bank maintained its leading position in the industry in terms of operational efficiency with return on equity (ROE) reaching over 29 per cent, the main driving force came from the retail segment and digital channels.

As of September 30, VIB’s total assets hit over VND285 trillion, surging 16 per cent compared to the beginning of the year. Of which, outstanding credit balance reached VND190 trillion, up 11 per cent, deposits from customers topped more than VND170 trillion, up 13 per cent while current account and saving account (CASA) saw impressive growth of nearly 20 per cent.

Over the nine months, VIB's retail segment continuously contributes over 85 per cent of the bank's loan portfolio, maintaining its position as the bank with the best retail ratio on the market.

As per the business results, the bank's capital adequacy ratio (CAR) under Basel II was managed optimally at 10.6 per cent, the loan-to-deposit ratio (LDR) was 73 per cent. Operating expenses in the third quarter were comparable to the second quarter of 2021, with the cost-to-income ratio (CIR) maintained at 39 per cent.

In the third quarter of 2021, VIB actively supported its customers to overcome the impact of the pandemic with various policies such as reducing loan interest rates, reducing transaction fees and supporting loan structure. Besides the direct interest and fee reduction packages, VIB continued to support the interest payment structure in the following quarters to help stabilise the actual cash flow of each customer.

Although this temporarily affected the Q3 business results, VIB said that this was a reasonable and timely policy that showed its commitment to support valued customers over the years. VIB’s proactive and well-timed support helped its customers adapt to the ‘new normal’ situation.

The majority of the supported and structured customers had a repayment plan earlier than the support plan, so it was expected to have a very positive impact on the bank's Q4 business results.

Pioneering in applying IFRS to increase shareholder value, attract foreign investors

On 30 June 2021, VIB became one of the first two banks in Viet Nam to complete the audit report following the International Financial Reporting Standards (IFRS) for 2020.

According to 2020 audited IFRS financial statement results, VIB's equity was assessed to increase by more than VND1 trillion compared to VAS standards application.

By pioneering in applying international standards Basel II, Basel III, IFRS, VIB is highly appreciated by domestic, foreign investors, and financial institutions for its transparency. They also express their interest in the bank's issuance, capital, bonds, and capital mobilisation activities.

Breakthrough in speed, leading in product and service quality through extensive digitalisation

As one of the leading digital banks and the digital customer experience in Viet Nam over the years, VIB has focused on applying high technology such as Big Data, AI and cloud computing into its transactions, bringing outstanding digital customer service to users.

Users can easily open payment and saving accounts, transfer money, spending management and other banking services with a few clicks on our app. Especially, VIB is the pioneering bank in applying 100 per cent digital card opening process for all credit cards available on VIB website.

September 2021 marked an important milestone in VIB's digital transformation journey. The bank teamed up with Microsoft through a strategic collaboration agreement to deploy the multi-cloud computing platform and became one of the first banks in Viet Nam to develop a multi-cloud strategy.

This was a crucial stage in applying outstanding technology from the world's leading technology partner into financial products and services and to improve the Vietnamese customer experience for the banking industry and for VIB as well. 

Vietnam Report announces top 10 prestigious retailers in 2021

The Vietnam Report JSC has announced a list of top 10 prestigious retailers in 2021.

Honourees in fast consumption and supermarket group include Central Retail Vietnam, Wincommerce, Saigon Coop, MM Mega Market, Aeon Vietnam, Lotte Vietnam, SATRA, SASCO, IPP Group and Hapro.

In electronics and jewelries, the list comprises MWG, DOJI, PNJ, FPT Retail, Saigon SJC, Cao Phong Co. Ltd, Mediamart Vietnam, Viettelimex, Fahasa and VHC.

The rankings are based on three criteria, including financial capability based on the latest financial reports, media prestige using media coding method, and results of surveys in August and September 2021.

General Director of Vietnam Report JSC Vu Dang Vinh said despite the COVID-19 pandemic, retail sector still expanded in early 2021.

According to General Statistics Office, retail revenue in nine months of this year was estimated at over 2.7 trillion VND (117.3 million USD), down 3.4 percent annually. In August alone, it went down 8 percent month-on-month and 25.3 percent year-on-year, but went up nearly 4.5 percent in September thanks to relaxed social distancing in many localities./. 

Firms face challenges as only 70% of workers return to work amid COVID-19

The impact of the COVID-19 pandemic, especially the fourth wave of the outbreak, as led to 1.3 million workers departing urban areas and moving to rural areas, from major economic hubs to provinces, in which over 600,000 migrant workers have returned home from various southern provinces.

The number of workers returning to work has only reached 60% to 70% of demand from local businesses.
Currently, the number of workers returning to work has only hit 60% to 70% of demand from local businesses. In order to restore the broken labour chain, the Ministry of Labour, Invalids and Social Affairs (MoLISA) is devising two plans aimed at supplying trained workers as a means of ensuring the continued production and business activities of local enterprises in the post-COVID-19 period.

The risk of a labour shortage in some regions, sectors, and fields is posing a problem for businesses as they strive to restore production and business activities. According to figures given by the MoLISA, approximately 17.8% of enterprises face a labour shortage, with those involved in electronics at 55.6%, leather and footwear at 51.7%, garments at 49.2%, electrical equipment manufacturing at 44.5%, and textiles at 39.5%.

According to details given by Do Thi Thuy Huong, vice president of the Vietnam Supporting Industry Association, the nation is attracting many large enterprises in the electronics industry globally, with six of the biggest electronics firms having a presence within the country.

However, similar to other industrial enterprises, the electronics industry is facing up to the prospect of a labour shortage.

"More than 30% of local businesses are facing the labor shortage. This shows that the COVID-19 pandemic, especially the fourth pandemic wave, has greatly affected production activities of the electronics industry, particularly in 19 southern localities.

According to a report provided by enterprises in southern Vietnam, about 60 to 70% of workers have returned to production and they are seriously short of workers as they had returned to their hometowns and have not yet come back. Even the largest Samsung company in the high-tech zone in District 9, Ho Chi Minh City less than 70% of their workers have resumed work and the figure is expected to hit 100% by November, but for the time being, Samsung is also in a difficult position due to labor shortage,” Huong said.

Nguyen Van Be, chairman of the Association of Industrial Park Enterprises in Ho Chi Minh City, said the COVID-19 pandemic has caused 800 factories in various industrial parks to close. As a result of this, 700 factories run by most FDI enterprises have performed three on-site operations in a bid to avoid disruption in production, thereby resulting in their places being lost in the global supply chain.

Currently, businesses in Ho Chi Minh City have started to restore production, with numerous business in need of recruiting approximately 9,000 workers across various industries.

Enterprises operating in the processing and manufacturing industries have a significant need to recruit workers in order to meet orders ahead during the remaining months of the year. In a bid to restore the broken labour chain, Nguyen Van Be put forward the suggestion that there should be proper policies enforced aimed at bringing workers back to work as soon as possible.

Ho Chi Minh City features 18 export processing zones, industrial parks and high-tech zones, with more than 320,000 employees and 1,500 factories. At present 91% of businesses across 18 zones have since resumed operations in the new normal, which means living with the pandemic, while 70% or 200,000 employees have now returned to work.

Furthermore, an additional 100,000 are still in neighbouring or remote provinces. This comes amid all workers returning to Ho Chi Minh City being fully vaccinated and required to adapt themselves to new technology and digital transformation. However, plenty of businesses are facing financial difficulty and thereby require the support of the State.

It is therefore necessary to restore the labour market once the pandemic is fully brought under control, believes Vu Xuan Hung, director of the Training Department of the General Department of Vocational Education and Training under the MoLISA. He stated that to help enterprises gain access to labour resources in a timely manner, the General Department of Vocational Education and Training has devised plans to support firms in ensuring human resources.

“Currently, we have come up with two options to mobilise students’ participation in production and business activities of enterprises if there is a need. It also helps enhance the connection between schools and businesses, while creating conditions for students to become involved in production and business activities,” said Hung.

According to numerous experts, managers, and businesses, encouraging workers to return is a matter of policy. In order for enterprises to resume production, there should be a range of policies implemented specifically for migrant workers, social security, health care, pandemic prevention measures, adaptation, training, and retraining of human resources.

Singapore firms share experience with VN in sustainable energy development

Vietnamese energy companies need to revise their strategies to adapt to changes in the global energy structure as well as to post-pandemic conditions, experts have said.

Speaking at the Viet Nam - Singapore Board Forum held online last week, Associate Professor Vu Minh Khuong of the National University of Singapore said, “The global energy trend will focus on sustainable and renewable energy, the use new technologies in photovoltaic solar power, digital transformation, and creating hybrid systems by mixing floating solar energy and hydroelectricity.”

The energy structure would change in the next 10 years due to the impact of the pandemic as well as policy adjustments by many countries to achieve sustainability after the pandemic, he said.

According to speakers, the fourth wave of the pandemic in the country has severely hit all industries, including energy, and requires businesses to quickly adapt to the situation.

Khuong said Viet Nam’s energy sector should have appropriate strategies for sustainability and green transition to deepen global integration, and digital transformation.

They could learn from Singapore's experience in energy development and how its businesses navigated the pandemic, he added.

Singapore ranks high in the COVID-19 recovery index

To do so, Douglas Foo, chairman of the Federation of Singapore Manufacturing, said businesses have adjusted to adapt to the new reality, regularly evaluating and revising crisis management plans to prepare for various risk scenarios, and looking at how to mitigate the impacts of potential sales declines and poor forecasts in the new normal.

They have taken digital transformation strategy as the backbone to break through, and diversified their supply chains by taking advantage of new generation trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership, he added.

Wong Kim Yin, group president & CEO of Sembcorp Industries, who has over 20 years of leadership experience in energy and investment management, said his company has turned its portfolio “from brown to green" and transformed many aspects such as administration, capital sources, human resources, partners, and stakeholders.

“We hope to be able to join hands with Viet Nam to accelerate energy transition through improving the efficiency of the power system, co-operation in renewable energy and technology and capacity transfer.”

Sembcorp's experiences are expected to be useful to Viet Nam's energy sector in the future, he added.

Fadah Alsagoff, management team member and head of enterprise development at Temasek Holdings, said his company’s top priority is to protect the community from the pandemic.

Temasek is increasingly shaping its portfolio in line with four structural trends, “digitisation, sustainable living, future of consumption, and longer lifespans,” he added.

Organised by the VIETSTAR Training and Consulting JSC and Paris Graduate School of Management, the forum, titled ‘Enhancing Resilience, Strategy Formulation and Execution in the New Normal: Singapore Experience for Energy Industry,’ had the participation of over 50 executives of leading Singaporean and Vietnamese corporations. 

Vietnam Specialty Coffee Competition 2022 launched

The Vietnam Specialty Coffee Competition 2022 has been launched, with registration available for participants between February 15 and March 25 next year.

Accordingly, eligible contestants are organisations and individuals that own coffee farms or directly cooperate with farmers producing and processing specialty coffee in the territory of Vietnam, including foreign enterprises.

The award ceremony for the 2022 edition is scheduled for April 30.

Chairman of the Buon Ma Thuot Coffee Association and head of the organising board of the competition Trinh Duc Minh said the contest, after three editions, have brought about benefits, particularly economic ones, for farmers, cooperatives, and exporters.

The 2022 edition sees the number of judges increasing and an independent technical board support the organising board established, he said.

The launch took place at a virtual ceremony on October 22, which also awarded six winners of the Vietnam Specialty Coffee Competition 2021, including the Eatu Fair Agricultural Service Co-operative, Mori Coffee Company Limited, and Pun Coffee limited company.

This year’s contest had 41 participants from Ho Chi Minh City, Hanoi and the provinces of Son La, Quang Tri, Dak Nong, Gia Lai, Lam Dong and Dak Lak, who submitted 74 coffee samples, an increase of 34 percent compared to the previous edition./.

Source: VNA/VNS/VOV/VIR/SGT/SGGP/Nhan Dan

VIETNAM BUSINESS NEWS OCTOBER 22

VIETNAM BUSINESS NEWS OCTOBER 22

Economic recovery may require non-traditional solutions