Financing

Car manufacturers are planning to shift production chains elsewhere to Vietnam in case such tax incentives are extended. The current tax incentives for domestically-produced cars, set to expired on December 31, 2022, are expected to be extended beyond that timeline to continue supporting the local automobile and supporting industries. Thanh Cong Hyundai manufacturing plant. Photo: Viet Dung The Ministry of Finance (MoF) proposed this move as it plans to revise decree No.57/2020/ND-CP on amending import-export tariff schedules. Under the proposal, the MoF noted a number of automobile manufacturers are considering plans to expand production activities in Vietnam or shift part of their production chains elsewhere to the country in case such tax incentives are extended. Given the complicated procedures and large-scale investment required, car manufacturers are mapping out production plans for 2023 and onward, so policymakers should make decisions well in …

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Coca-Cola in Hanoi suspends operations after reporting one Covid-19 case Beverage manufacturer Coca-Cola in the outlying district of Thuong Tin in Hanoi has temporarily suspended its operations after a worker at the firm tested positive for Covid-19, reported Saigon Times. Kieu Xuan Huy, chairman of the district’s government, today, August 3, confirmed that the district has reported another coronavirus case, who is a worker at Coca-Cola. He resides in Tu Hiep Commune, Thanh Tri District, in the capital city, Nguoi Lao Dong newspaper reported. Earlier, the worker went to the Thang Long Hospital for a medical check-up after he developed symptoms of fever and a cough on August 1. He underwent a Covid-19 test at the hospital and the result came back positive. On being notified of the case, the district’s authorities at night on August 1 asked Coca-Cola to suspend production as Covid-19 preventive measures. The local competent forces discovered around 30 people of the firm were …

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Vietnam’s low labor productivity is attributed to workers’ limited capacity for innovation and creativity, according to experts. Prime Minister Nguyen Xuan Phuc is set to hold a direct dialogue with laborers from the Red River Delta province on May 5 to discuss ways to improve labor productivity, increase welfare for workers, and clear up queries about trade unions and employment. Reasons for low labor productivity According to the General Statistics Office (GSO), Vietnam’s labor productivity has seen remarkable improvement year by year. The country is one of ASEAN member states nations with the highest rates of labor productivity growth. In the 2007-2016 period, the Southeast Asian country’s overall labor productivity growth based on purchasing power parity in 2011, rose by 4.2 percent on average per year, higher than the average rates of Singapore, Malaysia, Thailand, Indonesia, and the Philippines. However, Vietnam’s labor productivity remains below that of other nations …

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