News Bulletin 08 - Week 2 April, 2020

The Covid-19 pandemic continues to rage around the world while in Vietnam the number of new infections have slowed to a trickle the past few days. Vietnam is continuing into its second week of near country wide lockdown and social distancing requirements. The government continues to roll out additional guidelines to help businesses struggling from the pandemic. Specifically, this week, the Prime Minister approved the extension of deadlines for tax and land use fee payments to support businesses.

The past week spotlight

Deadlines for tax and land use fee payments extended

Photo: Vietnamnet

Prime Minister Nguyen Xuan Phuc on April 8th approved Decree No 41/2020/ND-CP on the extension of deadlines for tax and land use fee payments to support businesses suffering from the COVID-19 pandemic.

Accordingly, businesses operating in the agro-forestry-fishery, food processing, textile, garment and construction industries would enjoy the extension, besides those operating in transportation, warehouse, accommodation and catering, education, medical services and part-supply sectors. Others subject included small and micro-sized enterprises and credit institutions and branches of foreign banks which provided support to their customers who were hit by the COVID-19 pandemic following the requirements of the State Bank of Vietnam (SBV).

The decree took effect immediately and the extension would be five months from the deadline for payments.

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

1. PM requests preparing scenarios for second wave of coronavirus infections

Prime Minister Nguyen Xuan Phuc has requested preparing scenarios between now and April 15 for the second wave of SARS-CoV-2 infections.

During a teleconference with permanent Government members on April 6, the PM highlighted the need to continue implementing the Directives No.15 and 16 on COVID-19 prevention and control, as well as stay alert as reinfection has been seen in some parts of the world.

See the full article here

2. European enterprises welcome Vietnam's COVID-19 action despite blow to business

While COVID-19 has had a significant negative impact on European business in Vietnam, many European companies have welcomed the government’s actions and measures to keep the economy afloat, according to the latest Business Climate Index (BCI) from the European Chamber of Commerce (EuroCham).

See the full article here

3. First 8 groups of export goods earn billions of USD

According to the latest information from the General Department of Vietnam Customs, the country's total export turnover from the beginning of the year to March 15th reached USD50.3 billion, a year-on-year increase of 6.8% over the same period in 2019.

See the full article here

4. Coronavirus: Worst economic crisis since 1930s depression, IMF says

Global economic growth will turn "sharply negative" this year due to the pandemic, the IMF warns.

The coronavirus pandemic will turn global economic growth "sharply negative" this year, the head of the International Monetary Fund (IMF) has warned.

See the full article here

5. Supply chains in Vietnam disrupted by Covid-19

Eighty-three per cent of companies in the physical value chain in Vietnam have been suffering from supply issues over the past two months due to the impact of the COVID-19 pandemic, a recent survey by CEL Vietnam, a supply chain consulting and training firm, has found.

See the full article here

6. Record number of businesses stop operations in Q1

The number of businesses which stopped operation in Vietnam hit a record number of nearly 35,000 in the first quarter of this year, according to the Vietnam Chamber of Commerce and Industry (VCCI).

See the full article here

7. COVID-19 ravages economy of central Vietnam

Da Nang City and Quang Nam Province – two key economic driving forces for the central region – have both suffered sharp reductions in growth in the first quarter due to the impacts of the COVID-19 pandemic.

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8. German firms optimistic about VN economy’s recovery in the medium-term

German enterprises were optimitic about the medium-term recovery of the Vietnamese economy, according to the AHK World Business Outlook 2020 released by the Association of German Chambers of Commerce and Industry (DIHK) on Tuesday.

See the full article here

9. Fitch revises outlook on Việt Nam to Stable; affirms at 'BB'

Fitch Ratings has revised the outlook on Việt Nam's long-term foreign-currency issuer default rating (IDR) to stable, from positive, and has affirmed the rating at 'BB'.

“The outlook revision reflects the impact of the escalating COVID-19 pandemic on Việt Nam's economy through its tourism and export sectors, and weakening domestic demand,” the international rating agency explained in a report released on Thursday.

See the full article here