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/ February 26, 2021

Pre-Tet Covid wave takes heavy toll on bus companies

These days Sao Viet Company’s from Hanoi to Lao Cai Province on the China border carry only 5-10 passengers per trip. Since the Covid reemerged in late January people who had booked tickets have been canceling them en masse, Do Van Bang, the company director, said. Sao Viet has reduced its services by half to around 20 a day, but still gets few passengers. "We hoped for an increase in the number of passengers during the peak Lunar New Year (Tet) season (in February), but all hopes were dashed by the latest outbreak," Bang said. "We are facing increasing losses, and the pressure to pay off debts after two consecutive years of suffering due to Covid-19 made me want to sell all my buses but no one dares buy at this time." Other transport companies face the same dilemma. Dat Cang Transport and Service Joint Stock Company of Hai Phong City has 65 buses plying on the route to Hanoi. Though it has cut down the number of trips by 80 percent, some buses still carry only two or three passengers, Khuc Huu Thanh, its director, said, adding if the situation lasts much longer, the company has to suspend operations. Transport firms said they had managed to hold on last year despite the pandemic thanks to Tet revenues. But this year Tet revenues took a huge hit due to the travel restrictions, lockdowns and quarantine requirements, and many transport companies have been unable to cope. Nguyen Cong Hung, vice chairman of the Vietnam Automobile Transport Association, said the revenues of many transport firms are down 70 percent. The association plans to ask the government for a 50 percent cut in taxes and delaying repayment of debts. Since January 28, there have been 827 cases of Covid in 13 localities, including Hanoi and Ho Chi Minh City. …

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/ February 25, 2021

Vietnam attracts US$5.46 billion in foreign investment

As many as 126 foreign projects were granted investment licences with a total registered capital of US$ 3.31 billion, a year-on-year fall of 33.9%. Meanwhile, 115 existing projects adjusted their investment capital with a total additional sum of US$1.61 billion, 2.5 times higher than during the same time period last year. Capital contributions and share purchases by foreign investors stood at US$543.1 million, down 34.4%. Foreign investors pumped capital into 17 sectors, with processing and manufacturing holding the lead with over US$3 billion or 55.7%, followed by power production and distribution with US$1.44 billion (26.5%), real estate US$485 million, and the science-technology sector at nearly US$153 million. Japan topped the list of 46 countries and territories landing investment in Vietnam, with US$ 1.64 billion, equivalent to almost 30% of the total. Singapore came second with US$ 1.07 billion (19.6%), and the Republic of Korea third with US$ 1.05 billion (19.3%). The ministry said the southern province of Can Tho attracted the lion’s share of FDI with US$ 1.31 billion, accounting for 24.2% of the total. Hai Phong city was the runner-up since it attracted nearly US$918 million, or 16.8%. Bac Giang came third with nearly US$ 573 million (10.5%). So far this year, the foreign-invested sector has earned US$38.07 billion from exports, up 34% year-on-year, and making up 76.1% of the nation’s total export turnover. At the same time, it spent US$31.6 billion on imports, up 31.2% year-on-year, and accounting for 66.6% of the country’s total import value. This resulted in a trade surplus of nearly US$6.5 billion. …

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/ February 26, 2021

Vietnam moves up three places in Global Soft Power Index

Vietnam was the only country in ASEAN to be upgraded in the global soft power rankings. Vietnam is considered a bright spot thanks to the increasing value of Vietnam's national brand and the socio-economic results achieved over the past year. According to Brand Finance, Vietnam has brought into play all aspects of soft power relatively well, especially the integration of its leading product brands. Vietnam's national reputation in the past year has increased in large part thanks to the Government's quick policy responses especially its close direction in supporting businesses to build and promote their brands locally and abroad as well as the dynamism and efforts of Vietnamese businesses. In order to publish the Global Soft Power Index 2021, Brand Finance held the "2021 Global Soft Power Summit" from 7:00 pm to 11:00 pm on February 25, 2021 (Vietnam time). Samir Dixit, Managing Director of Brand Finance Asia Pacific, said that Vietnam seems to have managed all aspects of its reputation quite well, in particular the integration and alignment of its national brand and the brands from around the country. Prime Minister Nguyen Xuan Phuc approved the Vietnam National Brand Programme from 2020 to 2030, which aims to increase the value and rankings of the national brand while hoping to make over 1,000 products national brands. These are managed through the specific efforts of and initiatives undertaken by Vietrade, under their national mark program “Vietnam Value”, Samir Dixit said. According to Vu Ba Phu, Director General of the Vietnam Trade Promotion Agency, Ministry of Industry and Trade of Vietnam, Vietnam is one of the most open economies in the world, with its ratio of trade to GDP increasing from 136% in 2010 to approximately 200% in 2019. Amid the COVID-19 shutdowns, which caused outputs to slump in early 2020, Vietnam was among only a small few countries able to achieve positive GDP growth – at nearly 3%. Thanks to the support of the Vietnam …

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