Steel demand

In some industrial parks in the southern provinces of Dong Nai and Binh Duong, hundreds of companies have put up hiring notices this week. South Korean textile firm Taekwang Vina in Dong Nai is looking for 3,000 workers as it plans to establish four more production chains this year. The company offers a minimum monthly salary of minimum VND7 million ($304). Anyone with basic literacy can apply. Another South Korean textile firm in the province, the Chang Shin Vietnam Company, which has 35,000 workers, is also recruiting an unspecified number of new workers as the number of orders received by the end of this year has already exceeded capacity, prompting it to build two new workshops. In Binh Duong, official data shows local companies are looking for nearly 40,000 workers in several sectors including textiles, wood processing and household products manufacturing. Companies are sending recruiters to sit near main roads to increase chances of contacting candidates. "Businesses are struggling to find workers even though they are offering high salaries of VND7-13 million a month plus benefits," Nguyen Kim Loan, chairwoman of the Binh Duong Labor Federation, told local media. In the northern province of Bac Ninh, where many multinational manufacturers have set up plants, the demand for workers is estimated at 15,000. Foxconn, a major supplier for Apple, is hiring 1,000 workers in Bac Ninh and the neighboring province of Bac Giang. It received a license in January to build a $270-million plant produce laptops and tablets in Bac Giang. Nguyen The Quyet, chairman of the union of workers at industrial parks in Bac Ninh, said that many companies were unable to complete orders last year due to disruptions caused by the Covid-19 pandemic and were seeking to make up now. Another reason is a surge in new orders this year from many countries, pushing factories to expand production and employ more people, he added. Recruitment demand was highest among …

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VNO Development and Investment Corporation, a company that transforms houses into office space for rent, said for instance that the number of businesses renting its offices for three to six months increased by 20 – 25 percent from last quarter. Its offices with rentals of VND368,000 ($16) per square meter are attracting small local businesses, especially in the construction, land survey, market research, and online selling sectors, which are recovering after a year of suffering due to the pandemic. The landlord of a grade B office building in Da Kao Ward in District 1 said the number of firms renting offices was up 15 percent compared to the end of 2020. The majority of tenants are companies moving from grade A buildings that cost $40-50 to cut costs. The CEO of VNO, Nguyen Hong Hai, said companies’ need to continue doing business but cut costs have increased the demand for office space with low rents. According to a note by real estate firm Colliers International Vietnam, since the first and second outbreaks of Covid-19 last year, a number of companies have relocated from grade A to grade B buildings to reduce costs. This trend is expected to continue in 2021, it said. …

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In its article, the leading financial newspaper of Japanese media giants Nikkei Inc., said Vietnam is targeting a growth rate of 6.5% this year. The agency stated Vietnam’s exports will likely continue to be supported by US tariffs on Chinese goods and that in order to avoid US tariffs, importers have shifted demand from China to alternative suppliers, with this trend likely to continue. According to the agency, before the pandemic, Southeast Asia achieved collective annual growth of about 5% for many years, making it one of the world's best-performing regions. The region also became an attractive investment destination, with a relatively young population driving demand and providing plenty of labour. These advantages remain in place, but first the region needs to stamp out COVID-19. Nikkei also reported that Southeast Asian economies are aiming to this year regain the growth momentum they had before the COVID-19 pandemic caused historic declines in 2020. A look at early forecasts around the region, however, shows a wide range of scenarios as risk continues to lurk. The agency said that Singapore hopes to achieve its forecast of gross domestic product growth of 4% to 6% for 2021, Indonesia expects GDP to grow by between 4.5% and 5.5% this year, the Philippines projects a growth range of 6.5% to 7.5%, while Thailand has lowered its targets, revising its 2021 forecast down to between 2.5% to 3.5% growth. …

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