News Bulletin 65 - Week 5, May 2021

Last week saw a significant surge in Covid19 infections in Vietnam, with the country’s biggest commercial city Ho Chi Minh City (formerly Saigon) especially hit hard. Outbreak clusters have broken out in several districts and the city is now under two weeks social distancing restrictions.

Amidst the latest outbreaks, private and foreign invested companies have stepped up calls for their companies having the ability to procure and vaccinate their staff; whether this is feasible is unlikely as the Vietnamese government wants equitable disbursement of vaccines, with front line workers prioritized.

In other news, the United States imposed anti-dumping duties on Vietnamese tires last week.  With North America and European countries starting to return to normal as vaccinations are ramped up in these countries, Vietnam’s exports should be positive for the rest of the year to meet increasing consumer demands from countries returning to normal.

The past week spotlight

Vietnam May trade deficit seen at $2 billion; CPI up 2.9%

Vietnam estimated a trade deficit of $2 billion for May, while consumer prices in the month rose 2.9% from a year earlier, government data showed on Saturday.

See full details

Let’s look at some other related financial and business news during the past week:

1. E-commerce vital to help local firms boost exports

The COVID-19 pandemic has created tremendous pressure for change and new ways of doing business for firms, even small ones. The need for support from major e-commerce platforms that operate on a global scale is vital for local firms to overcome the difficulties of the pandemic.

See full details

2. Foreign enterprises place trust, raise investment in Dong Nai

The trust of investors in the local business climate and support from authorities for enterprises are among the main factors that have helped the southern province of Dong Nai almost reach its foreign direct investment (FDI) target for the year.

See full details

3. US imposes anti-dumping duties on Vietnamese tires

The U.S. Department of Commerce (DOC) has slapped anti-dumping and countervailing duties on some passenger vehicle tires originating in Vietnam.

See full details

4. Vietnam to earmark $124 billion for 5-year public investment

Medium-term public investment projects in Vietnam from now until 2025 will be funded with an estimated budget of VND2,870 trillion (US$124 billion), according to information released at a recent government meeting.

See full details

5. Vietnam's industrial production grows despite pandemic

The production of key industrial products, except mining activities, have continued to maintain good growth momentum in the first five months of this year despite the COVID-19 pandemic’s hit to industrial parks in the provinces of Bac Giang and Bac Ninh.

See full details

6. Vietnam streamlines anti-pandemic measures across factories

Epicenter Bac Giang Province, which is in the process of reopening four industrial parks, has sent teams to evaluate the risks of Covid-19 contagion in 237 companies. Authorities in northern Covid-19 hotspots are streamlining measures to ensure worker safety as industrial parks gradually resume operations.

See full details

7. Vietnam ministry proposes suspension pay for workers quarantined during COVID-19 spread

As the fourth wave of COVID-19 ravages industrial zones in Vietnam, the Ministry of Labor, Invalids and Social Affairs has proposed a benefit equivalent to sick pay for workers who are sent to quarantine to curb the spread of the epidemic.

See full details

8. Exports bounce back strongly thanks to global economy reopening

Vietnam is expected to continue witnessing a bright future for its exports in the second half of this year thanks to many of its key export markets recovering from a decline in consumption, with a rise in demand for imports.

See full details

9. Ho Chi Minh City industrial production to maintain recovery momentum

The efforts of the government and businesses to fight against the COVID-19 pandemic and maintain production is expected to keep industrial production in Ho Chi Minh City on the rise.

See full details

10. European, US business executives in VN urge faster COVID vaccination

The Government needs to allow companies to vaccinate staff at their own cost, members of the European Chamber of Commerce in Việt Nam (EuroCham) have said. The business group said it asked the members how private companies can support the Government’s vaccination drive and it is impacting their business operations.

See full details