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/ March 7, 2021

To quit or not: a Covid-19 dilemma for Vietnamese workers

When his roommates turn the lights off to go to bed at 10 p.m., Hoang Minh is just starting his eight-hour shift at work. Sitting with a laptop on his bunk bed, the 21-year-old enters information about overseas orders his company has received into the system. "This job just needs hands and eyes," he says. Because of the Covid-19 outbreak, Minh was allowed to work from his room in Hanoi's Cau Giay District. But within two days the company required him to return to office since his output had been lower than normal. His salary has remained at VND6 million ($260) a month since he began working here since 2019. Hoang Minh doing his data entry work in his room in Hanoi's Cau Giay District. Photo courtesy of Minh. After dropping out of college, the young man from central Vietnam had been dreaming of working in the technology field, a job he perceived as "computer-related." But instead he ended up with a data entry job. After two months of working through the night and going home to sleep in the morning, he quit just after the 2020 Lunar New Year ( Tet ) just as Covid-19 first appeared in Vietnam. He began to apply for all sorts of jobs. However, the pandemic was causing a huge number of layoffs. According to the General Statistics Office, the employment rate in the first quarter of 2020 was the lowest in 10 years. Minh got a job as a bank credit officer, who had to persuade individuals and businesses to borrow. But there was no salary and instead employees got paid based on performance. This time he quit after just one month. He then worked as a real estate agent and quit again when he could not find a single client in three months. During that time he had to borrow money just to eat. Around this time a former colleague and friend also wanted to quit his data entry job, and Minh texted him saying: "Don't be foolish to quit your job at this critical time. I really regret my action now." Luckily for him, his old company again …

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/ December 29, 2020

Business formations in Vietnam down 2.3% in 2020 amid Covid-19 pandemic

The Hanoitimes - A survey found that 81% of manufacturing and processing enterprises expected stability and even improvements in performance in the first quarter of 2021. New business formations in December decreased by 18.4% month-on-month to 10,700, but the total number in 2020 remained encouraging at 134,900 amid the Covid-19 impacts, a slightly down of 2.3% year-on-year, according to the General Statistics Office. Business registration process at Hanoi's Department of Planning and Investment. Photo: Pham Hung. This month witnessed a surge of 25.3% month-on-month in combined registered capital to VND356.8 trillion (US$15.45 billion) and a fall of 39% in the number of workers hired by new enterprises to 73,000. The number of newly-established enterprises in Vietnam in 2020 was 134,900 with registered capital of a combined VND2,235.6 trillion (US$96.8 billion), down 2.3% in number but up 29.2% in registered capital year-on-year. Average registered capital per newborn enterprise was VND16.6 billion (US$719,000) during this period, up 32.3% year-on-year. Taking into account VND3,341.9 trillion (US$144.7 billion) of additional capital pumped by active enterprises, total registered capital injected into the economy in 2020 was VND5,577.6 trillion (US$241.52 billion), up 39.3% year-on-year. The government-run office informed that 44,100 enterprises resumed operations in the period, an increase of 11.9% inter-annually, bringing the total number of newly-registered and reinstated enterprises in 2020 to 179,000, up 0.8%. During this period, the number of enterprises temporarily ceasing operations surged 62.2% year-on-year to 46,600. Moreover, the number of enterprises which completed procedures for bankruptcy was up 3.7% to 17,500. A survey on the business sentiment in the manufacturing and processing sector in the fourth quarter showed 40.6% of enterprises saw improvements in business performance compared to the previous …

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/ March 8, 2021

Mobile devices and components lead Vietnamese exports

Mobile devices and components made up almost one-fifth of the country's export turnover in the first two months The latest data published by the General Statistics Office (GSO) showed that as one of the nine export articles with an export turnover of more than $1 billion, which made up 73.8 per cent of the total export turnover during the first two months, mobile devices and components made up the largest portion. In particular, the export value of mobile devices and components hit $9.3 billion, or 19.2 per cent of the turnover, up 22.8 per cent on-year. Contributing to this was the 21.2 per cent increase on-year in the electronics and computer manufacturing index. Of this, media equipment production (including mobile devices and components) soared 22.9 per cent on-year. Specifically, the output of mobile devices reached 35 million, up 1.2 per cent on-year. The revenue from mobile component production hit VND95.4 trillion($4.15 billion), up 55.7 per cent on-year. The EU, the US, and China remained the largest export markets for Vietnamese articles with nearly $2.5 billion of turnover from China, up 103.9 per cent on-year. The portion of mobile devices and components in exports has constantly expanded over the years, from 3.2 per cent in 2010 to the current 20 per cent. According to the GSO, the recent US-China tensions will facilitate local mobile and electronic production as plenty of overseas tech giants have landed in Vietnam. By Van Anh …

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