News Bulletin 85 - Week 3, October 2021

Following many months of restrictive lockdown in many parts of the country, normal activities are starting to resume in the country’s biggest cities.

Manufacturers, however, now face post lockdown difficulties, with retaining and recalling workers the biggest challenge.  Manufacturing enterprises in industrial zones (IZs) and export processing zones (EPZs) are facing numerous difficulties due to the Covid-19 resurgence.  Deputy Minister of Planning and Investment Nguyen Thi Bich Ngoc said challenges facing enterprises in IZs, economic zones and high-tech zones include rising costs of input materials, transportation and Covid-19 testing, as well as investment in infrastructure to meet pandemic control conditions.

The resurgence of Covid-19 in Vietnam and similar developments in other countries have hampered trade and production activities. Covid-19 prevention and control measures applied in Vietnam’s provinces and cities have not been unified, while supply chains have been disrupted due to extended social distancing measures and obstacles to the circulation and transportation of goods. In addition, policies to support pandemic-hit businesses have not proven effective.

The past week highlight:

HCMC companies hit by labor shortage

Many industries, especially labor-intensive ones like textile and garment and leather, are likely to face a labor shortage when they resume post-Covid-19.

See full details

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

1. Trading activities resumed at markets, supermarkets in HCMC

Up to now, 69 out of 234 traditional markets have been allowed to reopen trading activities of fresh, dried foods and essential goods between small traders and customers, said the Ho Chi Minh City Department of Industry and Trade.

See full details

2. Vietnam’s 500 most profitable enterprises in 2021 announced

The Vietnam Report and online newspaper VietNamNet have just announced the Profit 500 list, featuring the top 500 most profitable enterprises in Vietnam this year.

See full details

3. EU-Vietnam bilateral rises $480 million in first year of EVFTA

As of the end of September, EU corporations have invested about $22 billion in Vietnam, half a billion dollar more than a year ago, despite the pandemic.

See full details

4. M&A, the way for local players to grow after COVID-19

Vietnam is witnessing big changes in its mergers and acquisitions (M&A) landscape, with domestic firms rising to secure firm niches in the market.

See full details

5. Will interest rates continue falling until year-end?

Both deposit and lending rates have fallen sharply compared to the period prior to the onset of COVID-19. But the question that many are asking is whether the rates will continue dropping until the end of 2021?

See full details

6. Vietnam's coal-fired power may double by 2030 under draft energy plan

Vietnam may double the amount of coal-fired electric generation it installs by 2030 under a draft power development plan submitted to the prime minister for approval this week.

See full details

7. Vietnamese startups flourish

Since the beginning of the year, the Covid-19 pandemic has caused many difficulties, but many Vietnamese startups have successfully raised tens of millions of dollars from large investment funds. It is good news for the startup community.

See full details

8. Vietnam set to keep public debt under control

Vietnam is set to keep its public debt under control this year at 43.7 percent of GDP, against the cap of 60 percent.

See full details

9. Ho Chi Minh City aims to resume interprovincial bus operations next month

Interprovincial passenger bus routes between Ho Chi Minh City and other localities are expected to be reopened on November 1 after months of suspension due to COVID-19, according to local transport authorities.

See full details

10. Covid-19 resurgence challenges industrial zone enterprises

Manufacturing enterprises in industrial zones (IZs) and export processing zones (EPZs) are facing numerous difficulties due to the Covid-19 resurgence.

See full details