News Bulletin 76 - Week 3, August 2021

The Vietnamese government extended is social distancing (lockdown) for another 30 days until September 15, 2021. The additional 30 days lockdown will consist of two phases to control the pandemic. Covid-19 numbers appear to have plateaued over the past week but the number remains high.

Not surprisingly, Vietnam’s supply chain is under tremendous stress. Supply chains in HCM City and the southern provinces are at great risk of snapping because many businesses have been forced to stop operating or sharply reduce production to comply with the COVID-19 prevention regime.

According to the Ministry of Planning and Investment, in July the city’s index of industrial production (IIP) dropped by nearly 20 per cent, Long An Province’s by 14.5 per cent and Ca Mau Province’s by 13.7 per cent. Dong Thap, Tra Vinh and Ba Ria-Vung Tau all saw declines of 2-6 per cent.

The past week highlight:

Vietnam government sets up working group on vaccine diplomacy

Prime Minister Pham Minh Chinh on August 13 signed Decision No.1399/QD-TTg on establishing the government’s working group on vaccine diplomacy in an effort to increase the country’s vaccine supply.

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

1. Give Vietnam more vaccine, American CEOs tell Biden

90 CEOs of leading U.S. companies have urged President Joe Biden to accelerate donation of vaccines to Vietnam as it battles its most serious Covid-19 outbreak yet.

In a letter sent to the U.S. President, the CEOs of companies like Adidas, Coach, Gap, Hanesbrands, Nike, VF and Under Amour have emphasized that Vietnam is an important economic and supply chain partner of the U.S.

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2. Ho Chi Minh City stock exchange continues trading after finding COVID-19 cluster in-house

Vietnam’s Ho Chi Minh Stock Exchange (HOSE) has decided to close its office while still keeping the trading operations running after a slew of COVID-19 cases were detected among its stay-in staffers.

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3. Many export orders await Vietnamese enterprises

According to the Trade Promotion Agency under the Ministry of Industry and Trade (MoIT), many orders from foreign enterprises have been sent to domestic exporters. However, the disruption of circulation, especially the circulation of goods at seaports, along with the reduction in production capacity of enterprises has caused many domestic enterprises to hesitate to receive orders.

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4. Vietnam vows to place 5 million farming households on e-commerce sites

Deputy Minister of Information and Communications Pham Anh Tuan has urged creating detailed plans on putting farming households on e-commerce sites.

Tuan recently presided over an online conference on Plan 1034 on bringing agricultural production households to e-commerce sites, promoting the development of the digital economy in agriculture and rural areas.

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5. COVID-19 threatens to break supply chains in the south

Supply chains in HCM City and the southern provinces are at great risk of snapping because many businesses have been forced to stop operating or sharply reduce production to comply with the COVID-19 prevention regime.

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6. Vietnam ranks third in world in instant noodle consumption

With 7.03 billion packages of instant noodles consumed in 2020, Vietnam ranks third in the world for instant noodle consumption, behind only China/Hong Kong and Indonesia, according to a report by the World Instant Noodles Association (WINA).

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7. Loship aims to file for IPO on New York Stock Exchange by 2024

BAce Capital-backed Loship, Vietnam’s leading one-hour delivery e-commerce startup, targets to become the first Vietnamese delivery to list on the New York Stock Exchange by 2024.

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 8. Vietnam aims digital economy to represent 20 pct of GDP

Vietnam is in a hurry to catch up with the world in terms of digital economy in general and e-commerce in particular, according to Bloomberg.

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9. Left out of Covid-19 support policies, bank debtors suffer

Many people who have taken bank loans are waiting to become eligible for interest discounts after being left out of policy support for Covid-19 impacts.

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10. Industrial property sees rising FDI despite new pandemic outbreak

Despite a new outbreak of COVID-19 in Vietnam, the industrial property sector saw positive signs with new industrial zones established and key industrial projects beginning operations, according to Savills Vietnam.

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