News Bulletin 77 - Week 4, August 2021

Ho Chi Minh City has implemented the strictest lockdown to date this week, requiring residents to strictly stay in their homes for the next 15 days. The government has set 15 September as the target date to control the Covid outbreaks that are spreading throughout southern Vietnam.

Vietnam has mobilized the military to help it contain the Covid outbreak in Saigon and the surrounding areas.  Both military and public security forces from Hanoi have been deployed in Vietnam’s epicenter of Ho Chi Minh City and the second most affected area of Binh Duong to assist the pandemic fight.

Foreign direct investment (FDI) in Ho Chi Minh City might dwindle after Sept. 15 if the city continues to prolong its social distancing period, multinationals say.

The past week highlight:

Room remains for Vietnam economy to end 2021 at high note

Public investment, exports, and domestic consumption continue would be the three key factors for Vietnam’s economy this year.

While the current Covid-19 outbreak has brought both ups and downs in the economy during the first seven months of this year, experts suggested there remains room for the economy to end 2021 on a high note.

See full details

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

1. Vietnamese Gov’t targets 1 million businesses to access credit support package

No efforts would be spared to prevent a public health crisis and subsequent socio-economic crisis, for the country to return to its normalcy as soon as possible.

See full details

2. China reopens border gate with Vietnam

China has reopened one of its border gates in Guangxi with Vietnam after closing it for several days due to Covid-19 fears.

Trade resumed Wednesday at Tan Thanh Border Gate in the northern province of Lang Son after customs officials of both countries agreed on Covid-19 safety measures.

See full details

3. Vietnam beats Bangladesh as world’s second-biggest clothing exporter: WTO

Vietnam has overtaken Bangladesh as the second-biggest garment exporter in the world, according to the latest data released by the World Trade Organization (WTO).

See full details

4. Vietnam’s exports to UAE surge over 40% in Jan-Jul

Vietnam exported goods worth US$2.8 billion to the United Arab Emirates (UAE) from January to July 2021, surging 40.8% compared with the same period last year.

On the other hand, the country spent US$286 million on imports from the UAE, increasing 13.3% year-on-year. This led to a trade surplus of US$2.514 billion with the UAE in the seven-month period.

See full details

5. High global demand opens up opportunities for Vietnamese producers

Vietnamese producers have been put under pressure because of the complex developments of the pandemic, but, in risks, opportunities always exist.

See full details

6. Vietnam leads globally in cryptocurrency adoption

Vietnam leads globally in cryptocurrency adoption with 41 percent of respondents claiming to have bought Bitcoin and the like, according to a recent survey.

Twenty percent of Vietnamese said they had purchased Bitcoin, the highest among 27 countries polled with 42,000 respondents, according to the survey by U.S. based financial consultancy Finder.

See full details

7. Labor shortages may impede companies’ recovery

Adversely affected by the Covid-19 pandemic, the economic growth of Vietnam’s key cities, such as Hanoi and HCMC, has been slower. The exodus of migrant workers leaving HCMC may make the path of recovery planned by enterprises more bumpy.

See full details

 8. HCMC FDI could suffer from prolonged social distancing

Foreign direct investment (FDI) in Ho Chi Minh City might dwindle after Sept. 15 if the city continues to prolong its social distancing period, multinationals say.

Intel Vietnam has seen its Covid-19 costs totaling VND140 billion ($6.13 million) between July 15 and Aug. 15, and another month of social distancing could double the figure.

See full details

 9. Apple, Google product shift to Vietnam slows due to Covid-19

Covid-19 resurgence has delayed the shift of Apple, Google and Amazon manufacturing from China to Vietnam due to tightened border control and mobility restrictions.

Google's upcoming Pixel 6 smartphone range will be made in China even though the company had planned to move production of the handsets to northern Vietnam early last year, four people familiar with the matter told Nikkei.

See full details

10. Today’s Covid News: Vietnam deploys armed forces to Ho Chi Minh City

The armed force will deliver food to residents at home, promote vaccination and enforce the shelter-in-place order.

Both military and public security forces from Hanoi have been deployed in Vietnam’s epicenter of Ho Chi Minh City and the second most affected area of Binh Duong to assist the pandemic fight.

See full details