News Bulletin 75 - Week 2, August 2021

Vietnam is now into its fourth week of hard lockdown and the end is not in sight. Most of southern Vietnam and Hanoi are in lockdown and strict curfew with no one allowed outside from 6pm to 6am. Vaccinations efforts have been visibly ramped up, with close to 2million Saigonese have had their first shot of vaccines.

Unsurprisingly, the current ongoing Covid-19 pandemic has been relentless in damaging the whole economy, which is getting weaker and weaker as social distancing regulations continue to be implemented for longer and longer periods, and across almost all provinces and cities of the country. These social distancing regulations are in place in most major economic zones, industrial production areas, and centers of supply and value chains. This has caused havoc for all economic activities that have now been severely disrupted. This massive onslaught on core and essential businesses has also caused serious macro uncertainties which are only continuously increasing by the day.

The past week highlight:

Associations propose urgent vaccination for workers of export industries

The Government needs to create the fastest favorable conditions and the largest volume of vaccines to vaccinate workers at factories and industrial parks.

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

1. HCM City port stops receiving imports as containers pile up

Tân Cảng - Cát Lái Port in HCM City’s newly created Thủ Đức city will temporarily stop accepting imports by businesses that have suspended production so that it can clear a huge backlog of containers that have piled up.

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2. Will Vietnam's economy remain strong?

Vietnam's demographics and strong manufacturing base, developed over two decades, have put it in a favourable position to weather current challenges.

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3. Vietnam approves sustainable forestry development programme by 2025

The Vietnamese government on August 5 issued Resolution No.84/NQ-CP approving the programme on sustainable forestry development in 2021-2025.

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4. Vietnam premier demands support for medical firm to buy Sputnik V COVID-19 vaccine

Vietnam’s Prime Minister Pham Minh Chinh has ordered the Ministry of Health to assist a local enterprise in purchasing Sputnik V vaccine from the United Arab Emirates (UAE), amid the Southeast Asian country’s thirst for vaccine supply to curb the raging coronavirus pandemic.

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5. Adidas hit by China boycott, Vietnam factory closures

Adidas felt the impact of a Chinese boycott of Western brands on its second-quarter results and is also suffering from the closure of factories in Vietnam due to Covid-19 infections.

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6. HCMC continues to grapple with shipper shortage

The ongoing shortage of shippers caused by Covid-19 safety rules and restrictions has seen undelivered orders pile up with some retailers and delivery platforms.

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7. Millions of tons of rice in Mekong Delta seek ways for consumption

Hopeless and disappointed is the current feeling of thousands of Mekong Delta farmers when summer-autumn rice is being massively harvested because many households are waiting for traders, but they still have not come to buy paddy yet.

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8. Pandemic relentless in damaging economy

The current ongoing Covid-19 pandemic has been relentless in damaging the whole economy, which is getting weaker and weaker as social distancing regulations continue to be implemented for longer and longer periods, and across almost all provinces and cities of the country.

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9. HBA proposes setting up field hospitals in industrial parks

The HCMC Export Processing Zone and Industrial Park Authority Business Association (HBA) has proposed the HCMC government and relevant agencies establish field hospitals at industrial parks (IP) to treat Covid-19-infected workers and thus prevent manufacturing disruptions amid the on-going coronavirus outbreak in the city.

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10. Industrial production index up 7.9 percent

The national index of industrial production (IIP) increased 7.9 percent year-on-year in the first seven months of this year, according to the General Statistics Office.

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