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Participants at the event. Photo by the New Zealand Embassy

The New Zealand Embassy and ActionAid Vietnam today launched a partnership to “Leave No One Behind in the Struggle Against COVID–19”. The project will assist female workers in informal sectors of the economy in Da Nang and Hue. Leaders of the Department of Foreign Affairs (DOFA) of Thua Thien Hue Province, the Department of Labour, Invalids and Social Affairs (DOLISA) of Da Nang City and the Centre for Community Development and Social Work – CODES participated the launch. The New Zealand Embassy will provide NZD 50,000 (approx. VND 790,000,000) to the project, which aims to reach more than 350 women workers in informal employment as street vendors, junk collectors, or housemaids, over the coming 3 months.

Underscoring the importance of this project in the larger programme of support by New Zealand to Vietnam, New Zealand Chargé d’Affaires Joseph Mayhew said, “This is a practical initiative to help ease the economic impacts of COVID-19 and strengthen the resilience of more than 350 women workers, and their families, in Da Nang and Hue’s informal sectors. I believe that supporting women workers in sectors that are hardest hit by the pandemic is a vital component of robust, inclusive, and equitable recovery.”

The COVID-19 pandemic has disrupted Vietnam’s tourism industry, with Da Nang and Thua Thien Hue, the two major international tourism hubs particularly affected. The project includes training on household economic literacy and management, women’s rights and child nutrition. The financial support can be used to purchase food, living essentials or small livelihood options.

According to ActionAid Vietnam’s recent research, more than 90% of tourism sector workers lost employment and income due to COVID. In Da Nang and Thua Thien Hue, almost 90,000 people either became unemployed or suffered from greatly reduced income. Only 22% of the (ActionAid’s) surveyed workers currently have access to the VND-62-trillion support package.

“This project is one way to help women workers become more visible in the public eye, and at the same time trying to set up a practical model where support can be delivered to the target groups and individuals in an efficient and transparent manner. We want to contribute to the commitments of Vietnam and New Zealand, of Leaving No One Behind in the struggles to overcome COVID-19.” said Ms. Hoang Phuong Thao, Country Director of ActionAid Vietnam.

Leaders of the European Union (EU) are hoping that trans-Atlantic relations will “turn to a new page” during Joe Biden’s presidential term.

Over recent decades, the EU and the US have fostered close ties in terms of culture, history, business and defence, but during his tenure, former US President Donald Trump introduced policies “standing outside of the EU” on many international issues, as well as supporting the United Kingdom’s departure from the “European common roof”. Accordingly, the trans-Atlantic relationship between the EU and the US was quite cold and even saw contradictions and tensions at times. However, bilateral ties currently have the prospect of “turning to a new page” with Joe Biden having been sworn in as the 46 ^th US President.

US media reported that as soon as taking over the “hot seat” at the White House, President Joe Biden signed 15 decrees aimed at dealing with existing problems such as the COVID-19 pandemic, climate change and ethnic inequality. The new US President has overturned some of his predecessor’s policies, including those that had once led to US-EU tensions such as the US withdrawal from the Paris Agreement on climate change. Therefore, Biden’s move is seen as a start of a process of bringing the US back to the accord. In addition, his decision to revoke a presidential permit for the Keystone XL oil pipeline also received applause from European leaders. EU officials have expressed hope and confidence that the trans-Atlantic relationship will recover again in the near future.

Immediately after the presidential inauguration, EU leaders extended many “positive words” to the new US President enclosed with a belief in a brighter trans-Atlantic relationship in the time ahead. In his video message, German President Frank-Walter Steinmeier emphasised: “We look forward to having the US as a vital partner at our side again on many fronts: as we fight the COVID-19 pandemic together in a spirit of solidarity, tackle climate change at the global level, and address security issues, including arms control and disarmament, as well as many conflicts that require urgent attention.” German Chancellor Angela Merkel also extended her congratulations to the new US leader, expressing her hope for “a new chapter of Germany-US friendship and cooperation.”

Meanwhile, some European leaders have welcomed the US return to the Paris climate accord and hope that Washington will stand side by side with the EU in the fight against climate change. French President Emmanuel Macron emphasised: “We are together. We will be stronger to face the challenges of our time. Stronger to build our future. Stronger to protect our planet. Welcome back to the Paris Agreement!” Belgian Prime Minister Alexander De Croo congratulated Joe Biden upon his inauguration as the 46 ^th US President, stating that climate change, COVID-19 and the fight against terrorism are at the top of a long list of global challenges that “can only be successfully tackled by working together.” Not only the leaders of EU member states, but UK Prime Minister Boris Johnson, while addressing the UK Parliament, also expressed his desire to work with President Biden’s administration on the two countries’ common priorities and his hope that the new US President will join the UK in committing to achieving greenhouse gas (GHG) emissions neutrality by 2050.

From diplomatic signals conveyed by European officials, it can be seen that the presidential inauguration of Joe Biden marks the “beginning of a new and better chapter” for the trans-Atlantic relationship. European Commission President Ursula von der Leyen on January 20 also hailed President Biden’s inauguration as a “new dawn” for both Europe and the US. However, in order to “heat up” the above-mentioned relationship, undoubtedly the two sides still have a lot of work to do in the time ahead to resolve major disagreements on trade, climate change, and the Iranian nuclear issue.

According to the management board of Moc Chau National Tourism Zone, Moc Chau Night Market and Moc Chau Pedestrian Street will cover an area of 2.3 hectares, located in Moc Chau Farm Town, Son La province. The project takes the current Pha Luong Light Park as its core area, radiating from there in all directions.

The project is being implemented by the People’s Committee of Moc Chau district and Pha Luong Tourism Joint Stock Company.

Moc Chau pedestrian street includes a showroom introducing the Thai cultural identity, which is also a centre organisingcultural performances; a dining complex, a range of kiosks selling ethnic handicrafts; snack and fast food areas and a space for Moc Chau’s farm produce.

Each item will have its own functions, bearing the imprint of the Northwestern region. The products will showcase the cultural diversity of all ethnic groups in Moc Chau. This is not only aplace for evening entertainment but also a cultural performance space of the Moc Chau National Tourism Zone, with the cuisine, culture, arts, and traditional crafts of 12 ethnic groups.

The project is expected to be completed by September 2, 2021.

Much of Vietnam Airlines’ fleet has been grounded due to the pandemic

According to Le Hong Ha, deputy general director of Vietnam Airlines, the carrier has been fully aware of its responsibility to preserve and develop its products and services to both maintain the economic vein of the country and promote its golden lotus logo to bolster Vietnamese aviation and promote the nation’s culture and tourism across the world.

As a bridge between regions and the world, Vietnam Airlines is committed to maximising its potentials to support domestic businesses in delivering their products to not only customers all over the country but also to numerous international friends.

In 2020, Vietnam Airlines has been reaffirming its position as the top-quality airline of the nation and continuously maintained its 4-star services according to international standards. At the emergence of the pandemic, the carrier immediately applied distinct solutions to ensure safety for passengers, such as limiting reusable items, disinfecting aircraft, and providing sterile towels on flights.

However, Vietnam Airlines has not been able to avoid business risks caused by the pandemic. After successfully reducing the spread of the disease, in the second quarter customers began to again pay for air services, while the company sought to generate crucial revenue from inland services. Hopes were high that the third quarter would be the time to make up for the initial losses of the year, but as the next wave of new infections hit, any expectations of recouping revenue had been diminished.

As a result, half of the 217 aircraft flying under the five brands under Vietnam Airlines’ patronage were grounded as nobody wanted to fly anymore. Ticket prices decreased by more than 50 per cent compared to last year. Dang Ngoc Hoa, chairman of Vietnam Airlines, also noticed that “a lot of complications arose from the airline’s status as a state-owned enterprise and the state’s intervention in the aviation market.”

According to Hoa, methods of managing domestic ticket prices, among others, are outdated and not suitable for Vietnam’s air transport market. Currently, airfares are being adjusted according to the Ministry of Transport’s Circular No. 17/2019/TT-BGTVT on issuing prices for passenger transport services on domestic air routes issued in 2019, with regulations for ceiling prices for domestic routes presenting hurdles and leading to a decreasing diversity of the market and deviations in competition.

This regulation, Hoa said, is affecting the “business efficiency of airlines and reducing their motivation during peak times.” Air services are strongly influenced by seasonal factors, with domestic flights during holidays like the Lunar New Year always seeing low-load flights in one direction. Thus, airlines complain that the application of ceiling prices makes them unable to adjust prices and balance out their revenue.

“Ceiling prices alter the flexibility of the market and lead to additional cost for the airlines,” Hoa said. Vietnam Airlines has invested in new generation aircraft, such as the A350 and Boeing 787, and its 4-star services are aiming to compete in the region and the world. But the governmental price ceilings limit the carrier’s efforts to attract those customers willing to pay higher fares, ultimately affecting service quality – an important factor in the sustainable development of airlines.

“Rarely does a country manage domestic airfares with ceilings like they are applied here in Vietnam,” Hoa explained.

Vietnam has been deeply integrating itself into the global economy, so it may be necessary to minimise the participation of state management in enterprises’ business activities. “The state should only manage flight fares for monopolistic airlines but should not apply these measures for competitive domestic routes. Let the market self-regulate,” Hoa suggested.

“The domestic market is oversupplied, but international airlines are still entering the domestic market,” he said, adding that in his opinion, Vietnamese airlines have not received “equal treatment” in foreign markets, where even technical barriers are imposed to restrict the operation of in- and outbound flights. For instance, Vietnam Airlines has opened flights to Beijing for many years, with a frequency of five flights per week. “We have proposed to increase these by two per week, but the Chinese side only allows flights at midnight, when no passengers are willing to fly,” Hoa added.

In the context of extensive international integration, maintaining an airline’s brand seems vital for the competitive edge of domestic carriers. Vietnam Airlines has been creative and sought new directions to maintain production and business.

As nearly all passenger flights had been suspended during the social distancing period, the airline quickly made full use of its wide-body fleet and removed seats for the first time to increase cargo capacity in both the aircraft’s dedicated cargo and passenger compartments.

Vietnam Airlines has also been coordinating with the Vietnam National Administration of Tourism, the Vietnam Tourism Association, and tour operators to build stimulus packages across the country. In a short time, the airline added 22 domestic routes to meet and boost travel local demand and developed new products and services such as the Flight Pass offering customers bundled tickets with discounts to several domestic destinations.

Along with the over 120 other national brands, Vietnam Airlines has not only maintained production and business activities amid difficult circumstances but also participated in community activities.

Up to now, the airline has carried out nearly 150 flights to safely repatriate 50,000 people from other countries, transported more than 60 tonnes of goods to support pandemic prevention measures, and nearly 150 tonnes of cargo to aid people in the central region affected by storms and floods.

By Van Nguyen