Optimistic business signals fuel expectations of stable and rapid recovery

Vietnam’s economy has recently received many optimistic signals from the business community, which are fuelling expectations of a stable and rapid recovery after a long disruption due to the COVID-19 pandemic.

Optimistic business signals fuel expectations of stable and rapid recovery hinh anh 1

Packing line at Trieu Phu Loc Furniture Co in Binh Duong province. The Government, localities and businesses are rushing to put the economy back on track. (Photo: VNA)

Vietnam’s economy has recently received many optimistic signals from the business community, which are fuelling expectations of a stable and rapid recovery after a long disruption due to the COVID-19 pandemic.

At a press conference on October 18, Nguyen Van Lam, Deputy Director of Ho Chi Minh City's Department of Labour, Invalids and Social Affairs, said nearly 135,000 workers had returned to work at export processing zones and high-tech zones, and 5,000 workers resumed work at enterprises outside industrial zones.

Last week, the Dong Nai Industrial Zone Authority announced nearly 1,400 enterprises, or more than 80 percent of those operating in 31 industrial parks in the province, have resumed operations, drawing more than 334,000 workers back to work which represents 54 percent of total number of labourers at the local industrial parks.

In Binh Duong, the local authority said it was striving to have 90 percent of enterprises resume operations by the end of this month and 100 percent by the end of this year. The management board of provincial IPs is stepping up vaccinations for experts and workers towards the goal of returning to normal by early 2022.

Secretary of the provincial Party Committee Nguyen Van Loi committed all possible support to firms to return to work in safe conditions.

In the capital city, after easing many restriction measures, Hanoi’s businesses are speeding up production to secure new orders and restore production. In nine industrial parks in the city, the number of businesses operating normally has reached over 95 percent.

These numbers have partly shown great efforts of the Government, localities and businesses themselves in putting the economy back on track.

The prolonged lockdowns due to the spread of the virus, especially in the southern region which is home to the country’s production hubs, has disrupted most economic activities in the past two months.

Vietnam’s gross domestic product (GDP) increased by only 1.42 percent in the first nine months after recording a decline of 6.17 percent in the third quarter. It is also the first quarterly decline recorded since 2000.

Income and employment are also seriously affected, especially for workers in industrial zones and people who depend on services. The unemployment rate in the third quarter was 3.72 percent and the underemployment rate among people of working age was 4.39 percent, the highest since the first quarter of 2020.

Quick response

Despite some early confusion in containing the disease in some provinces, with the great efforts, solidarity and determination of the Government and the entire society, the pandemic has been gradually put under control in hotspots such as HCM City, Binh Duong, Dong Nai and Long An, paving the way for loosening measures to recover the economy.

Many policies have been adjusted to adapt to the new context and are introduced, giving hope to businesses and pulling them through this hard time.

During an online meeting on October 17, Prime Minister Pham Minh Chinh reaffirmed pandemic prevention and control policies must be unified nationwide, facilitating the implementation of measures to allow enterprises to resume operation and get workers back to work.

Resolution 128 recently issued by the Government on "Safe adaptation, flexibility and effective control of the COVID-19 pandemic” which sets out criteria to assess the level of pandemic risk and specifies response measures in a unified application to all localities, agencies and businesses, is good news for enterprises.

According to businesses, this resolution helps them define more clearly the risk levels which let them know when they can continue operation or when they need to temporarily halt operation (“on” or “off”) or “off” to any degree. Unified regulations will also prevent local authorities from creating or applying regulations of their own will, facilitating companies in building and implementing their business plans.

Earlier this month, the Ministry of Labour, Invalids and Social Affairs (MOLISA) announced that from October 8, new regulations in Resolution 68 will loosen conditions and add more workers and businesses to the list eligible to receive funds from the support package worth 26 trillion VND (1.1 billion USD).

Since adoption in July, authorities in provinces and cities across the country have been quickly implementing measures to help people and businesses.

In the latest update from 63 provinces and cities, more than 15 trillion VND has been disbursed under Resolution 68 by the end of September, of which receivers include 376,610 employers and nearly 18.6 million people.

In 25 southern provinces and cities, total support value reached more than 11.7 trillion VND, accounting for 75 percent of the whole country.

However, enterprises are still facing many challenges, including the shortage of workers after a huge number returned to their hometowns during the lockdown period, rising costs of input materials and the lack of capital for production.

Vo Tri Thanh, Director of the Institute of Branding and Competition Strategy, said support policies need to be implemented synchronously and quickly to help businesses recover and catch up with the global trend, avoid letting them lose business opportunities which may be hard to find again.

“The most important thing for businesses now is a support package which is big enough (in value), large enough (in volume) to comprise of necessary entities in need of support and be implemented quickly enough,” Thanh told Vietnam News.

The pandemic remains complicated and unpredictable and the country is facing a wide range of heavy consequences in all aspects of socio-economic life.

The Ministry of Planning and Investment is working with other Governmental agencies, local authorities, business associations and industry experts to build a comprehensive programme to steer Vietnam's economic recovery in 2022-2023, to connect supply and demand and to support businesses and the public, especially vulnerable groups in the post-pandemic period./.

Source: VNA
en.vietnamplus.vn

Related News

Quang Ninh Customs: Many activities to develop Customs-Business partnership

Quang Ninh Customs: Many activities to develop Customs-Business partnership

VCN - Developing the Customs-Enterprises (DN) partnership continues to be identified by the Quang Ninh Customs Department as one of the key tasks to be implemented in 2024.
Enterprises accelerate production and business activities after Tet holiday

Enterprises accelerate production and business activities after Tet holiday

VCN - Following the Tet holiday in the year of the Wood Dragon 2024, numerous enterprises have resumed their production and business operations, swiftly ramping up with a plethora of orders from the very start of the year.
Deploy business support programs at the Customs unit with a turnover of "hundreds of billions of dollars"

Deploy business support programs at the Customs unit with a turnover of "hundreds of billions of dollars"

VCN - The spirit of considering businesses as partners, always "side by side" with the business community through dialogue, troubleshooting, and timely support activities has widely immersed by the Department's leaders to each unit leader of the Bac Ninh Customs Department, thereby maintaining the leading position in turnover of "hundreds of billions of dollars".
Trade promotion focuses on market development

Trade promotion focuses on market development

VCN - In 2024, trade promotion activities will continue with the goal of expanding new export markets and exploiting FTAs; Digital transformation is associated with green transformation in trade promotion to develop sustainable foreign trade.

Latest News

ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN member states and the Republic of Korea (RoK) have reached a consensus on the transposition of ASEAN-RoK Free Trade Agreement (AKFTA) Product Specific Rules from the Harmonised System Codes HS 2017 to HS 2022.
Opportunities for digital technology businesses to go global

Opportunities for digital technology businesses to go global

Finding solutions and directions to promote and develop Vietnamese digital technology enterprises is an important task, which will promote the stability and sustainability of the country's economy, heard a recent conference.
Vietnam, China eye stronger border trade

Vietnam, China eye stronger border trade

Border provinces of Vietnam and China should continue close coordination and enhance trade promotion between the two sides, stressed the recent talks between the management boards of the economic zone of the northern province of Ha Giang and the Malypo border economic cooperation zone of China’s Yunnan province.
Improve competitiveness and sustainable development of the seafood industry

Improve competitiveness and sustainable development of the seafood industry

VCN - In early 2024, seafood exports have prospered. This is the driving force that helps seafood businesses hope for a stronger recovery this year. Ms. Nguyen Thi Thu Sac, Chairwoman of the Vietnam Association of Seafood Exporters and Producers (VASEP) shared with Customs Magazine.

More News

Business environment reform needs further promotion: expert

Business environment reform needs further promotion: expert

Resolution 02 issued by the Government creates pressure for the ministries, sectors and localities to make changes for the business community as well as the socio-economic development.
Singapore is the largest foreign investor in VN in Q1

Singapore is the largest foreign investor in VN in Q1

The disbursed FDI rose by 7.1 per cent in the first quarter to reach $4.63 billion, a signal that the disbursement will continue the positive trend, the agency said.
Thai Binh boosts investment, trade cooperation with Germany

Thai Binh boosts investment, trade cooperation with Germany

A delegation from the northern province of Thai Binh, led by Deputy Secretary of the provincial Party Committee Nguyen Khac Than, visited several localities and business organisations in Germany from March 25 to 27, in a bid to enhance trade cooperation with and attract direct investment from the European nation.
Lifting obstacles to develop industrial parks

Lifting obstacles to develop industrial parks

VCN - Attracting investment and developing industrial zones (IZs) and economic zones (EZs) is one of the important contents to implement the policy of developing a multi-component, open, attract investment and resources from all economic sectors to develop the country. In addition to the results achieved, there still limitations that need to be removed to draw investments to develop industrial parks and economic zones, including financial problems for industrial parks.
Unlock capital flows and create favorable conditions for investors

Unlock capital flows and create favorable conditions for investors

VCN - Talking with the press, Dr. Ngo Cong Thanh (Photo), Provisional Executive Committee member of the Vietnam Industrial Park Finance Association (VIPFA), said that it is necessary to open up capital flows and create conditions for investors to access key factors. Facilitate production and business factors and innovate investment promotion activities to more effectively develop industrial parks.
More than 300 businesses, manufacturers to attend VGMF 2024

More than 300 businesses, manufacturers to attend VGMF 2024

More than 300 domestic and foreign businesses and manufacturers will attend the Vietnam Global Manufacturing Forum 2024 (VGMF2024) to explore investment and business cooperation opportunities.
Connecting with FDI firms helps boost wood exports: insiders

Connecting with FDI firms helps boost wood exports: insiders

Strengthening linkages and cooperation between foreign-invested and domestic enterprises will contribute to promoting the sustainable development of the Vietnamese wood industry, according to insiders.
Doosan Vina exports nearly 2,000 tonnes of modules to US

Doosan Vina exports nearly 2,000 tonnes of modules to US

The Doosan Enerbility Vietnam (Doosan Vina) specialising in heavy industries announced on March 26 that it has just exported a batch of nine modules weighing nearly 2,000 tonnes to the Golden Triangle Polymers company in Texas, the US.
Wood processing enterprises strive to increase the proportion of individually designed goods

Wood processing enterprises strive to increase the proportion of individually designed goods

VCN - Many wood and furniture processing enterprises are promoting investment in design activities, helping to increase the proportion of individually designed products (ODM) in exports, thereby affirming the industry's capacity Vietnamese wood in segments with higher added value.
Read More

Your care

Latest Most read
ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN member states and the Republic of Korea (RoK) have reached a consensus on the transposition of ASEAN-RoK Free Trade Agreement (AKFTA) Product Specific Rules from the Harmonised System Codes HS 2017 to HS 2022.
Opportunities for digital technology businesses to go global

Opportunities for digital technology businesses to go global

Finding solutions and directions to promote and develop Vietnamese digital technology enterprises is an important task, which will promote the stability and sustainability of the country's economy, heard a recent conference.
Vietnam, China eye stronger border trade

Vietnam, China eye stronger border trade

Border provinces of Vietnam and China should continue close coordination and enhance trade promotion between the two sides, stressed the recent talks between the management boards of the economic zone of the northern province of Ha Giang and the Malypo border economic cooperation zone of China’s Yunnan province.
Improve competitiveness and sustainable development of the seafood industry

Improve competitiveness and sustainable development of the seafood industry

In early 2024, seafood exports have prospered. This is the driving force that helps seafood businesses hope for a stronger recovery this year.
Business environment reform needs further promotion: expert

Business environment reform needs further promotion: expert

Resolution 02 issued by the Government creates pressure for the ministries, sectors and localities to make changes for the business community as well as the socio-economic development.
Mobile Version