Business

The department has asked businesses to charge normal delivery fees and not take undue advantage of the travel restrictions on residents to make more profit. The request follows complaints from many residents and shop owners, particularly eateries, that shipping fees are sometimes higher than the value of the order, inhibiting business. The People's Committee of Ho Chi Minh City lifted an inter-district delivery ban and offered free Covid-19 testing to shippers starting September 15. Starting September 7, the city has also allowed food and beverage businesses to reopen, only taking takeaway orders. Ho Chi Minh City is set to have 92,000 registered shippers resume work, which could overwhelm local testing facilities. As of Sunday, 82,000 shippers have registered to resume work, tripling from two days before, said Nguyen Nguyen Phuong, deputy director of the Department of Industry and Trade. …

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About 67 per cent of surveyed banks believe they will lose market share within two years if they fail to digitally transform, according to a new... Some 58 per cent of global respondents predict that they will completely cease to exist in the next five to ten years unless they change their business models. — Photo bnews.vn About 67 per cent of surveyed banks believe they will lose market share within two years if they fail to digitally transform, according to a new report from cloud banking platform Mambu and The Financial Times Focus (FT Focus). The ‘Evolve or be extinct’ report was conducted by FT Focus and surveyed over 500 senior banking executives globally to gain insights into their perception of the banking industry, now and in the future. The results illustrate the urgent need for banks to modernise their offerings, with 58 per cent of global respondents predicting they will completely cease to exist in the next five to ten years unless they change …

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Foreign invested enterprises (FIEs) have suggested a strategy on controlling the pandemic in every area so as to safely restore production and business activities. A number of associations of enterprises, including AmCham Vietnam, the US-ASEAN Business Council, EuroCham and KoCham have made proposals related to the PM. They believe Vietnam needs to act promptly to maintain its competitiveness in the region and the globe, while avoiding lagging behind in economic recovery. The enterprises said they want to join forces with the PM, Government and localities’ leaders, especially HCMC, the southern economic zone and Da Nang, to reopen the economy in a safe way and establish the new normal status. They need to know clearly the roadmap for the reopening of the economy. Some surveys conducted by the associations found that 20 percent of their members have relocated some production activities to other countries. Believing that Vietnam is missing investment opportunities, the …

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Many businesses in the southern region are unable to resume operations due to lack of human and financial resources. — Photo vov.vn Many businesses in the south have been allowed to reopen a few days ago but a worker shortage is preventing them from doing so. The owner of an organic rice production business in District 7, Tran Huu Tin, was happy when the city began to loosen social distancing requirements and allow businesses to resume. But after two weeks of trying to recruit and posting messages, he has not received any job applications, and he is now very worried. At the end of June four of his employees first tested positive for COVID-19, and a week later the number jumped 10-fold, and his business lost nearly half its workforce. Hiring has not been easy with the epidemic still raging. "People are very reluctant to go to work since they have to live on the premises and also fear the risk of COVID-19 infection," he said. Le Xuan Tan, a director of Hanh Phuc Wood Co., …

[Read more...] about Lack of human resources, funds prevents businesses from reopening

Foreign businesses in Vietnam have expressed their concerns over the prolonged social distancing measures applied throughout the country to stall the coronavirus spread, warning that it would miss many investment opportunities given slow economic reopening. Foreign business associations including AmCham Vietnam, the U.S.-ASEAN Business Council, EuroCham, and KoCham recently sent a joint letter to the central government to propose a strategy on ‘localized pandemic prevention and control,’ aimed at restoring safe production and business activities in a 'new normal.' It is important that Vietnam take action now to maintain its regional and global competitiveness, and not to lag in economic recovery, the letter wrote. The business associations said they support the strategy to adapt to living with the virus safely and wish to joint hands with the government and localities to reopen the economy safely and enable economic recovery. Businesses need a clear road map and an exact date …

[Read more...] about Vietnam to waste investment opportunites due to slow reopening: foreign associations

Since August, Vietnam’s export sector has started to feel the devastating effects of the pandemic and strict social distancing measures in many localities nationwide plus the disruption of supply chains and production. According to a report by the Ministry of Industry and Trade (MIT), Vietnam’s export sales in August 2021 were estimated at US$26.2 billion, a decline of 6% from July. Of this, the domestic sector gained US$6.94 billion, down by 9.7% from the previous month, while the foreign investment sector—including crude oil—reached US$19.26 billion, down by 4.5%. Compared with the same period of last year, August export value fell by 5.4%, of which the domestic sector saw a drop of 13.9% and the foreign investment sector, including crude oil, suffered a slight decline of 1.9%. During the Jan. – Aug. period, goods export sales reached US$212.55 billion, a rise of 21.2% year on year. Also in August, the annualized revenues of the three key export groups all dropped, of …

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Large-scale testing is carried out at Việt Hưng Ward, Long Biên District on Sunday to trace positive cases. — VNA/VNS Photo HÀ NỘI — Hà Nội will remove travel permits for inner city commuters and not divide the city into three-coloured zones from September 21, Chử Xuân Dũng, vice chairman of the city People’s Committee, announced on Monday. Lockdown will still be applied but on a reduced scale. The city’s authorities will apply technology to supervise mobility of residents and trace positive cases, he said. The capital will loosen social distancing restrictions but continue to ensure strict COVID-19 protocols because the city still has some clusters in narrow alleys and densely-populated areas. The priority target is to protect public health and strive to vaccinate all residents with a second dose, Dũng said. Dũng asked the people, local organisations and businesses to uphold their responsibilities in observing COVID protocols. Trần Ngọc Dương, deputy director …

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A representative of HCM City's Youth Union wears the costume of Hằng Nga, a traditional character of the Mid-Autumn Festival, as she presents gifts for children of migrant workers in dormitories in HCM City. VNA/VNS Photo HCM CITY – Many children in HCM City, the country’s coronavirus epicentre, have enjoyed a special Mid-Autumn Festival this year despite social distancing regulations thanks to joint efforts of authorities, organisations and volunteers. In the past three days, the dormitories of migrant workers in Sơn Kỳ, Tây Thạnh wards in Tân Phú District; Tân Nhựt, An Phú Tây wards in Bình Chánh District; and Hiệp Phước Industrial Zone in Nhà Bè District have been full of the sounds of happiness with children’s laughter. Youngsters celebrated their Mid-Autumn Festival with mooncakes, milk, small boxes of candy and biscuits, as well colourful paper lanterns. These are in gift packages for the full-moon festival local authorities, youth unions and benefactors, in the …

[Read more...] about Efforts made to bring a special Mid-Autumn Festival for kids amid COVID-19 pandemic

Illustrative image (Photo: VNA) Hanoi (VNA) – The State Bank of Vietnam set the daily reference exchange rate on September 20 at 23,132 VND/USD, up 13 VND from the last working day of previous week (September 17). With the current trading band of +/- 3 percent, the ceiling rate applicable to commercial banks during the day is 23,825 VND/USD and the floor rate 22,438 VND/USD. The opening hour at commercial banks stayed stable. At 8:25 am, Vietcombank listed the buying rate at 22,640 VND/USD  and the selling rate at 22,870 VND/USD, unchanged from September 17. BIDV also kept both rates unchanged at 22,670 VND/USD (buying) and  22,870 VND/USD (selling). Similarly Vietinbank maintained both rates at the same level as on September 17 at 22,650 VND/USD  (buying) and 22,870 VND/USD (selling). The reference exchange rate fluctuated variably during the week from September 13-17, ending up 6 VND from the rate on the beginning of the week./. VNA …

[Read more...] about Reference exchange rate up 13 VND at week’s beginning

Thailand's SCG Packaging Pcl (SCGP) on Monday announced an 11.8 billion baht ($353.93 million) expansion in its packaging paper business in Vietnam, anticipating growth in demand. A new facility will be built in Vinh Phuc province in northern Vietnam, to begin operations in early 2024, which will raise total production capacity to 870,000 tonnes of packaging paper per year, up from 500,000, SCGP said in a statement. It will be run by Vina Kraft Paper, a joint venture between SCG Packaging and Japan's Rengo Company, of which SCGP holds 70%. "Vietnam has strong domestic consumption and is an important export base in the region, a big draw for multinational companies to invest their operations there," chief executive Wichan Jitpukdee said. Wichan anticipated Vietnamese demand growth of 6% to 7% annually until 2025. SCGP, a unit of Thailand's largest industrial conglomerate, Siam Cement Pcl, said it would use cash and debt to finance the expansion. The facility is the latest …

[Read more...] about Thailand’s SCG Packaging plans $353 mln Vietnam expansion