Economically less developed country

The General Statistics Office of Vietnam (GSO) launched the 2021 Economic Census across the nation on March 1.

The Hanoitimes – Many businesses are in shortage of workforce after a long-break Tet holiday, as travel remains restricted between different localities.

A prolonged Covid-19 in a number of provinces and cities is putting local businesses under serious stress to avoid disruption of operations.

A Covid-19 checkpoint at An Duong district, Hai Phong city. Source: Phapluatxahoi.vn

The Private Economic Development Research Board (Board IV) revealed the information following its quick survey with 12 business associations from February 19-22.

In the survey, the majority of respondents said they forecast the Covid-19 pandemic to stay in long-term and have adjusted their operations to better cope with the situation.

However, businesses are facing some common problems, including shortage of workers after a long-break Tet holiday as travel remains restricted between different localities.

The Covid-19 pandemic also causes severe impacts on the transportation sector, in which many transport companies are operating at 20-30% of their capacity.

In recent days, movements of goods from and out of Hai Duong province, the country’s pandemic hotspot, to other localities have been stalled, impacting supply and production chains of various industrial parks.

This came at the fact that drivers from Hai Duong are not allowed to leave the province, while those from outside do not want to enter on fear of Covid-19, or some Covid-19 checkpoints stop drivers from Hai Duong to go through.

Strict anti-Covid-19 measures adopted by Hai Duong’s neighboring cities/provinces, especially in Hai Phong, have led to a stagnation of sale and distribution of farm produce from Hai Duong, including the transportation of such products to Hai Phong port for exports.

A report from Hai Duong Automobile Transportation Association noted in case hurdles for transportation of Hai Duong farm produce are not removed until early March 2021, the financial damage would be around VND400 billion (US$17.3 million).

“Transportation firms not allowed to enter Hai Phong are forced to seek different routes and thus it incurs additional costs, making it harder for enterprises as they are still struggling with Covid-19 impacts,” noted the Board IV.

Chairman of Prime Minister Nguyen Xuan Phuc’s Advisory Council for Administrative Procedure Reform Truong Gia Binh said while social distancing and other safety measures have affected demand for farm produce, the lack of empty containers for exports remain the biggest concern for local traders.

“The business community seeks greater support from local authorities in working with shipping  firms to resolve the situation and prevent unreasonable surge of container shipping rates,” Binh added.

To resolves these issues, Board IV cited recommendations from business associations calling for authorities in Hai Phong and Hai Duong to set up a “buffer zone” to apply safety measures for drivers, trucks and goods; change truck drivers upon entering certain province/city.

“Regarding the transportation of goods from Hai Duong to Hai Phong port, the government could set up a specialized transport corridor to avoid disruption of supply chains,” Board IV stated.

According to Board IV, the government could consider lowering transportation fees on expressways as transport firms are forced to change their routes.

The Hanoitimes – The two countries keen on trade and energy cooperation.

Vietnam and the United Kingdom will tighten co-operation to implement the UK-Vietnam Free Trade Agreement (UKVFTA) effectively, promoting the import and export of goods and increasing bilateral trade value between the two countries.

A tra (catfish) processing line. Tra products are entitled to a zero % tax rate when exported to the UK.

The co-operation plan was a key content discussed by Deputy Minister of Industry and Trade Dang Hoang An and British Ambassador to Vietnam Gareth Ward at a meeting held recently in Hanoi.

At the meeting, the two leaders agreed that the UKVKTA, which took place on December 31, 2020 and being temporarily applied from January 1, 2021, will be a new driving force to take off the good relations on trade and investment in Vietnam and the UK.

Despite extremely negative impacts from the Covid-19 pandemic in 2020, the trade exchange between the two sides still reached US$5.6 billion, in which Vietnam gained export value of $4.95 billion and import value of $687 million from and to the UK.

The UK continues to be the third largest export market of Vietnam in the European region.

From the first days of January 2021, the Vietnam’s shipment of 60 tons of fragrant rice exported to the UK has enjoyed tariff preferences under the agreement, opening up new opportunities for the two countries’ business community.

The two sides agreed to give priority to the organization of the 12th Joint Economics and Trade Committee in the UK (JETCO 12) meeting this year when the Covid-19 pandemic is under control. Before the meeting, the two sides will hold online meetings, seminars and dialogues to discuss solutions to removing problems in every specific fields.

Mr. Gareth Ward said the UK wanted to coordinate with the Ministry of Industry and Trade to organize online dialogues in the field of energy development, including a dialogue on renewable energy that will focus on solutions to strengthen the investors’ confidence and another on energy transition in Vietnam in the framework of the 26th United Nations Climate Change Conference (COP26), which will be held in the UK on November 1-12 this year.

Deputy Minister An highly appreciated the UK’s commitment to host the COP26 in Glasgow, Scotland. He emphasized that the renewable energy development plan is an important content in the Vietnam Politburo’s Resolution No.55-NQ/TW dated February 11, 2020 on the orientation of the National Energy Development Strategy of Vietnam to 2030, with a vision to 2045.

“The Vietnam’s goal is to ensure an adequate energy supply for socio-economic development, in parallel with the task of gradually increasing the proportion of clean energy use,” Mr. An said.

In 2020, a number of Vietnam’s commodities exported to the UK have a good growth, including seafood, vegetables, rubber products, and iron and steel products. Meanwhile, the country’s import products from the UK, comprising animal feed and raw materials, materials of textile, garment and footwear, mobile phones and components, and chemical products, were seen increased sharply.

The Hanoitimes – The trade deal is expected to spark new opportunities for Vietnam as one of the few Asian countries to secure an exclusive FTA with the UK.

The signing of the UK – Vietnam Free Trade Agreement (UKVFTA) has ensured continuity of mutual trade after the end of Brexit’s transitional period on December 31, 2020.

Vietnam’s Minister of Industry and Trade Tran Tuan Anh and UK International Trade Secretary Liz Truss at the signing of the free trade agreement in Hanoi on December 11. Photo: Nhac Nguyen/AFP/Getty Images

The UKVFTA, which was signed in Hanoi last week, will reproduce similar effects from the EU – Vietnam Free Trade Agreement (EVFTA) as the UK will be out of the EU by the end of 2020, according to Savills Vietnam.

For Vietnam, the UKVFTA will primarily boost exports, while for the UK, it is considered an essential first step in gaining access to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), said Savills Vietnam, one of the largest real estate practice in the country.

Under the UKVFTA, the UK will first eliminate 65% of tariffs moving up to 99% after seven years to boost bilateral trade. Vietnam will first remove 48.5% of tariffs from UK imports, which after six years, will rise to around 91.8% or 97.1%. The tariff rate quotas provided in the EVFTA have been agreed to guide those in the UKVFTA, after the UK reviews their actual trade value with Vietnam.

In addition, UKVFTA will spark new opportunities for Vietnam as one of the few Asian countries to secure an exclusive FTA with the UK, Savills Vietnam said.

As the representative of a leading UK company in Vietnam, Mr Matthew Powell, Director of Savills Hanoi, who attended the UKVFTA signing ceremony last week, shared his outlook for Vietnam and the economic development.

The agreement will facilitate extensive benefits and opportunities for both sides. The UK has been Vietnam’s third largest trading partner in Europe, with 400 ongoing projects worth over US$3.6 billion as of August 2020. With the FTA, more investment capital, technology transfer, and transactions are expected from the UK.

Mr. Matthew Powell said both business communities have developed mutually strong and lasting relationships and he hopes to see more UK investments into services, products, and more business expansions as the agreement comes into effect.

“The UK is known for its consultancy expertise, particularly in real estate. Besides being the sector of choice for local investors, property remains the safest and most effective investment channel. Our 25 years in Vietnam has given us a greater understanding of the culture and business environment which will add value to strengthening and developing even greater business ties between the two countries,” Mr. Powell added.

The Hanoitimes – The old yellow-painting apartment buildings in Hanoi, apart from their own charms and characteristics, has also contributed to the development of the city.

Apart from Turtle Tower, Hoan Kiem Lake, or One Pillar Pagoda – the eternal symbols of Hanoi , old yellow-painted apartment buildings with caged balconies characterize the post-war Hanoi. They are a part to the landscape of the capital both yesterday and today.

The old apartment building inside Hanoi University in Thanh Xuan district., Hanoi. Photo: Dinh Quyen.

Built in the 1960s-1980s in the four central districts of Hanoi, old apartment buildings, usually with five storeys, remarked the first stage of the construction of the new socialist country, becoming not only a witness of history and architecture of a period but also a symbol of neighborhood and community culture and life.

As those buildings were firstly given to state cadres, residents here were not only neighbors but also co-workers and even friends.

Many generations have lived in those buildings and everyone knows each other as well as each other’s family members. In addition, as they share several parts in the building such as the gate, the balcony, the hall, the playground, the garden, among others, their relationship is close.

The Kim Lien old apartment building in Dong Da district., Hanoi. Photo: Nguyen Anh Tuan.

To many people born during the 1960-1980s, these buildings reminisce their childhood . It was where they chased and played games with other kids next door along the hall and the playground every day. When they grew up, the narrow stair could be a romantic dating place at night.

To women, it was unforgettable days washing dishes and clothes under the public tap with others, drying them on the balcony, or preparing a big pot to together cook banh chung (traditional rice cake) in the public space in front of the building on the occasion of Tet (Lunar New Year Festival).

There they were both doing their work, talking about their day, work, children, price at local markets, or sharing a new cooking recipe or the experience of making iron caged-balcony in the back of the apartment to expand the small space or breeding pigs at home as almost everyone did at that time.

Old apartment buildings are a special part in the life of many people. Photo: Dinh Quyen

Meanwhile, the garden was the favorite place of the elders where they looked after their vegetables and bonsai or had some tea in the afternoon with neighbors.

Particular, the notice board was an important part of their life. Every time when it informed some news, activities and parties in the holidays and festival seasons, all the residents were eager to talk about it and participate in it. In the age without internet and high-end technology, it was the “delicious spiritual food” for them.

Moreover, it also helped tighten the relationship among family members and neighbors. It is very different today in new modern buildings where neighbors do not usually know much about and even barelymeet.

A bodyguard of Thanh Xuan old building apartment. Photo: Dinh Quyen

Old apartment buildings are a special part in the life of many people, including writers, poets and painters who have brought them into their works with a lot of memories, feelings and love.

These buildings and the residents together passed through the tough time of the war, the post-war penury as well as a lot of changes from the period of economic subsidy to the renovation and the development today.

In the current rapid urbanization of Hanoi, there are plenty of new resident areas providing better living conditions so that many people have moved in and out from these old apartment buildings.

Photo: Dinh Quyen

The residents and the neighbors of the same place, however, behave differently among themselves now and the new rhythm of modern life also changes the relationships among them.

Nonetheless, some typical lifestyle of the place still remains. If you visit one of them in areas such as Giang Vo, Thanh Cong, Nguyen Cong Tru, Kim Lien, Trung Tu, Van Chuong, Thuy Loi, among others you can catch some kids sliding on old stairs, lines of clothes hanging on the balcony, plant and flower pots appearing behind bars of iron cages or elders playing chess in the public ground, to explore another part of Hanoi which is full of interesting surprises hidden in its small and modest appearance.