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Policy implementation capacity needs improvement to support businesses

April 19, 2021 by vietnamnews.vn

Chairman of the Vietnam Chamber of Commerce and Industry Vũ Tiến Lộc. — Photo qdnd.vn

Chairman of the Vietnam Chamber of Commerce and Industry Vũ Tiến Lộc talks to Quân đội Nhân dân (People’s Army) newspaper about solutions to help businesses overcome difficulties caused by the COVID-19 pandemic

The Vietnam Chamber of Commerce and Industry (VCCI) and the World Bank have recently announced a report on the impacts of the COVID-19 pandemic on Vietnamese businesses. What are key points of this report?

This report was built based on a survey of more than 10,000 businesses in 63 cities and provinces in 2020, providing specific perspectives on the impacts of the COVID-19 pandemic. The survey showed that the year 2020 was a year full of difficulties when nearly 90 per cent of surveyed firms were adversely affected by the pandemic with many consequences such as influencing firms’ access to customers, imbalance of cash flow and interruption of supply chains. Many businesses had to reduce their workforce, stop operations or go bankrupt.

Small- and super small-size businesses and young businesses of less than three years old suffered the most. The pandemic seriously affected turnover of businesses in 2020. 65 per cent of private enterprises and 62 per cent of Foreign Direct Investment (FDI) businesses said their revenue dropped in comparison with 2019. Due to COVID-19, the year 2020 witnessed a record number of businesses withdrawing from the market, exceeding 100,000 firms.

However, the year 2020 also recorded the efforts of the business community in overcoming difficulties. Many businesses have changed their strategies, carried out restructuring, retrained human resources, paid more attention to the domestic market and diversifying the consumption market and supply sources. The digital transformation process has gradually been implemented.

These are valuable lessons and experience that the COVID-19 pandemic has offered Vietnamese businesses.

How do you valuate the resilience of Vietnamese businesses in the current context?

In the serious medical crisis caused by the COVID-19 pandemic, businesses have suffered great losses and the resilience of the business community is facing limits.

How have Government support packages helped businesses?

Businesses highly valued Government support packages, particularly fiscal policies such as relaxation or deferment of value added taxes, corporate income tax and land hiring fees.

Seventy five per cent of businesses said Government support policies are helpful.

In the current context, what support do businesses need?

If solutions about tax, fees and support relating to access to finance and credits are limited due to limited State budget, measures relating to administrative procedures are easier to implement and have been promoted in recent years but still need to be accelerated. And that is the basic foundation for the recovery and development of businesses.

But it needs to be noted that implementation is often the weakest step. I still say that the earlier policies are put into practice, the better it would support businesses. So it is necessary to give priority to improve the implementation capacity.

Relevant ministries, agencies and authorities of localities need to increase information dissemination about support policies to create conditions for businesses to get access to support packages. It requires specific, detailed and full guidance about implementation procedures and processes to make it simple and easy for businesses to implement.

It also needs policies to create favourable conditions for private enterprises to help them stand firm and able to recover after the pandemic, particularly policies relating to innovation and qualified human resources training to be ready for a new competition.

Businesses must change, so what do State management agencies need to do?

Relevant ministries and agencies need to study and give recommendations to the Government to issue support packages to help businesses recover and expand investment and operation for the new period of 2021-2025.

The COVID-19 pandemic is forecast to continue having adverse impacts across the globe and it could only be completely eliminated in the next four to five years. So in the future, it is essential to have long-term policies.

Finally, it needs to spread or multiple models that effectively cope with COVID-19. For ministries, agencies and localities, that is experience in effectively implementing support packages for businesses. For enterprise associations, that is the sharing of ways to cope with COVID-19 effectively from those firms that have existed and developed in the context of COVID-19, particularly lessons about choosing markets, partners, business relationship and about investing in building core internal driving force of businesses to increase their resilience to deal with shocks. — VNS

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Hamilton, Bottas living ‘like hermits’ after Mercedes virus outbreak

October 10, 2020 by www.vir.com.vn

hamilton bottas living like hermits after mercedes virus outbreak
Mercedes’ Finnish driver Valtteri Bottas holds an umbrella at the Mercedes area after the practice session was cancelled due to bad weather conditions at the Nuerburgring circuit in Nuerburg, western Germany, on October 9, 2020, ahead of the German Formula One Eifel Grand Prix.(WOLFGANG RATTAY / POOL / AFP)

Talking to reporters at the Eifel Grand Prix Wolff said both drivers were confined to their rooms after rain and fog forced the cancellation of opening practice.

“They are the most restricted of the whole group, of the whole team,” said Wolff, who confirmed that Mercedes had flown six replacement staff to Germany on Thursday after the team was re-tested, resulting in six team members going into isolation.

“It’s certainly not a great situation for them because you need almost to live like a hermit – and that is what they are doing.

“They are at home, they are not going out for dinners and they are not meeting other people. When we do de-briefs, by Zoom or Microsoft Teams, they are not sitting their engineers in the room.

“They are in their own rooms and we are all avoiding as much as possible any personal contact. It’s just literally stepping into the car and then driving the car and keeping distance.”

Wolff said he believed Mercedes had the outbreak under control.

“Every loss of an important member in the garage affects the race, but I think we’ve got it under control,” he said.

The team had announced on Thursday that one person from their travelling race team had record a positive test ahead of this weekend’s race at Nurburgring.

As a result, the team re-tested everyone at the circuit, an exercise that resulted in another positive test and one that was inconclusive.

Both of those team members were immediately put into isolation along with four others.

The team flew six reserve staff to Germany on Thursday, a decision that maintained the numbers at the track, but has thrown the champions’ race preparations into difficulty.

Six-time world champion Hamilton who is making a second attempt to equal Michael Schumacher’s record of 91 Grand Prix victories, described the events as “a concern”.

Speaking on Thursday, he said: “It’s sad to hear, for the guys that work so hard. We obviously had this week in between [races] and those guys work so hard to stay safe and be here on the weekends.”

Mercedes said they are following strictly all of the protocols laid down by the sport’s ruling body the International Motoring Federation (FIA), adding that they are not releasing any further information.

AFP

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Investor committed to start construction of Long Thành International Airport’s terminal in early 2022

April 19, 2021 by vietnamnews.vn

Tiling of pavements in a residential neighbourhood meant for the households having to relocate to make room for the Long Thành International Airport in the southern province of Đồng Nai. — VNA/VNS Photo Công Phong

HÀ NỘI — The State-run Airports Corporation of Việt Nam (ACV) said it is committed to start construction of Long Thành International Airport’s passenger terminal early next year.

ACV, which is the investor of the expensive and ambitious transport hub project in the southern province of Đồng Nai, told the transport ministry in a meeting held on Monday that the first component of the project – demining – is ongoing, while walls surrounding the land intended for the project (1,810ha of priority area) are being simultaneously carried out.

The whole thing is expected to be complete by September this year.

ACV asked Đồng Nai Province’s authorities to continue supporting the contractors in ensuring security and protecting the boundary markers during the entire project.

Ground levelling, water drainage, and other essential works, will then follow so that the construction of the passenger terminal of the airport can begin in early 2022.

At the meeting, ACV also requested the authorities to soon finish land acquisition for land clearance at the two roads connecting to the airport, with an “appropriate compensation scheme” for the affected households.

Cao Tiến Dũng, Chairman of Đồng Nai Province People’s Committee, said that a compensation scheme has already been approved by the Government and used in thousands of cases of affected households.

However, recently the State Audit Office of Việt Nam after review has recommended some changes to this approved scheme, but if the province is to follow through and cut down on the compensation level for the remaining households that have not moved yet would certainly lead to complaints and hinder land clearance progress.

Therefore, Đồng Nai has asked the Government to maintain the compensation scheme originally approved, to create “uniformity” in the policy.

Dũng said the province is set to hand over the entire 5,000ha allocated for the project to the investor in June, and soon finish the temporary rehousing plans to move the affected households in the priority area of the project.

3,000ha of this total area involves the land of households and individuals.

By mid-April, the compensation scheme was approved for 4,000 households and individuals (out of the total 4,800), with 2,300 already receiving a total of VNĐ5.4 trillion (US$234.8 million) for a total of 1,100ha.

Next week, Long Thành District’s authorities would pay compensation worth VNĐ1.2 trillion for 811 households with 284ha.

Deputy transport minister Lê Anh Tuấn said Long Thành is one of the breakthrough project of the national transport sector in the 2021-25 period, urging all parties to coordinate and facilitate the progress of all components of the project and disburse the allocated State capital.

ACV and Đồng Nai should work together to see which compensation level is appropriate, Anh Tuấn said.

The transport official also urged careful consideration and preparations to deal with problems arising from the airport’s surrounding walls, including potential waterlogging issues in the adjacent residential households.

Long Thành International Airport will be built in three phases over three decades, and is expected to become the country’s largest airport.

In the first phase, one runway with a length of 4,000m, taxiways, an apron, and a passenger terminal with other auxiliary works sprawling 373,000 sq.m will be built to serve 25 million passengers and 1.2 million tonnes of cargo each year.

The airport is designed to have four runways, four passenger terminals, and other auxiliary facilities to ensure a capacity of 100 million passengers and 5 million tonnes of cargo a year by 2040.

It is expected to cost VNĐ336.63 trillion ($14.5 billion), with the first phase needing over VNĐ109 trillion. — VNS

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Firms to get help to expand rice export markets

April 19, 2021 by bizhub.vn

Rice loaded for export. — VNA/VNS Photo Dinh Hue

In order to take advantage of FTAs ​​and increase the Vietnamese rice export market share at more competitive prices, the Ministry of Industry and Trade will continue to co-ordinate with ministries, branches and the Viet Nam Food Association to help businesses effectively implement the deals and make the most of markets such as South Korea and the EU.

The ministry would implement solutions on mechanisms and policies to remove technical and trade barriers, internalise international commitments, customs procedures, logistics and credit as well as building and developing brands to create a premise for rice export enterprises to exploit the markets, said Tran Quoc Toan, deputy director of the Import and Export Department under the Ministry of Industry and Trade.

For rice exporters as well as farmers, Toan noted the need to be more proactive in improving the competitiveness of products through quality and price as well as building and protecting trade to diversify markets towards sustainable exports.

The Ministry of Agriculture and Rural Development reported the volume of rice exported reached 450,000 tonnes with a value of US$246 million last month.

The cumulative amount of rice exported in the first three months of this year rose 1.1 million tonnes, while the value hit $606 million, down 30.4 per cent in volume and 17.4 per cent in value over the same period last year.

Nguyen Van Don, director of Viet Hung Co., Ltd in the Cuu Long (Mekong) Delta province of Tien Giang, said that the reason for the decline in rice exports was partly as the first quarter of this year coincided with the Lunar New Year holiday.

In addition, the first two months of the year were between-crop periods when the rice supply was limited while the price was high, so it was difficult for businesses to negotiate export contracts.

Although the company’s rice export volume declined by more than 30 per cent over the same period for the first three months of the year, the export rice price rose by about 20 per cent. The two largest import markets are still the Philippines and China.

Meanwhile, Pham Thai Binh, general director of Trung An High-Tech Farming JSC in the Cuu Long (Mekong) Delta city of Can Tho, said that the first quarter’s rice export dropped significantly in volume due to a shortage of empty containers and soaring freight rates.

“Customers still need to import, but enterprises cannot order containers to pack their goods, the shortage of empty containers has pushed freight rates up 600-700 per cent, from $1,000 to $6,000-7,000 per container. With this rate, not only rice exporters but also other firms are facing difficulties. This situation means the importer had to consider delaying the time of receiving the goods or looking for closer sources to reduce costs,” said Binh.

Commenting on this issue, Toan said that although the amount of rice exported in the first quarter of this year declined compared to the same period last year, the price of rice for export grew due to high demand for food reserves around the world, which has pushed up the general level of world rice prices.

Thai and Indian rice prices have also hit record highs in recent years.

Viet Nam’s rice price continued to remain at a high level of $547 per tonne by the end of the first quarter of this year, up 18.6 per cent, equivalent to an increase of $86 per ton compared to the same period last year. The current price of rice has been and is benefiting the rice farmers.

Vietnamese rice was being purchased by importers at high prices due to the improved quality of Vietnamese rice, said Toan.

Vietnamese rice exporters were increasingly focusing on improving quality and traceability to meet the strict standards of export markets such as the EU, South Korea, and the US, Toan said.

In addition, Viet Nam has entered into many trade agreements with many strategic countries and regions such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU-Viet Nam Free Trade Agreement (EVFTA) and more recently the Regional Comprehensive Economic Partnership (RCEP) and the UK-Viet Nam Free Trade Agreement (UKVFTA). — VNS

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Top legislator mulls over deputies’ affairs for upcoming elections

April 19, 2021 by en.vietnamplus.vn

Top legislator mulls over deputies’ affairs for upcoming elections hinh anh 1 National Assembly Chairman Vuong Dinh Hue speaks at the meeting (Photo: VNA)

Hanoi (VNA) – National Assembly (NA) Chairman Vuong Dinh Hue chaired a meeting with the NA Standing Committee’s working commission for deputies’ affairs in Hanoi on April 19.

At the session, the commission suggested policies are needed to recruit a specific number of experts as full-time deputies when building personnel options and conducting the process of nominating candidates for the election of deputies to the NA.

The NA Chairman highlighted a large number of works to be done in preparation for the upcoming elections of deputies to the 15th legislature and all-level People’s Councils for the 2021 – 2026 tenure.

He asked the commission to work with the office of the National Election Council (NEC) to direct and provide guidance on the works.

Underscoring the preparation for the elections as the foremost task, Hue requested the commission collect results of provincial-level third consultative conferences to soon make a report to the NEC.

After the elections, the commission will have to conduct a series of works, including preparation for the summarisation of the elections and developing a training programme for elected deputies, among others.

Hue also asked the body to begin building a project on enhancing deputies’ working capacity right from now./.

VNA

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PM urges travel safety ahead of national holidays

April 20, 2021 by en.qdnd.vn

The directive was sent to the ministries of public securities, transport, information and communications, the National Committee for Traffic Safety, news agencies and provincial and municipal people’s committees.

Under the directive, the PM said efforts are needed to improve the capacity of public transport services to meet increasing demand for travel during the holidays.

Transport companies, stations, airports, railway stations, terminals and inland waterways were required to strictly comply with the traffic safety regulations; promote the application of electronic ticket sales; improve service quality; reduce traffic jams, delays and illegal price hikes and at the same time, strictly comply with regulations on prevention and control of the pandemic.

The PM asked the ministries and agencies to strengthen security and order at the major traffic routes, shopping centres, entertainment venues and major tourist and festival destinations. Illegal bus stations, vehicles that fail to meet technical safety standards and carry more than the prescribed number of people will be punished, the PM said.

Traffic infrastructure will be checked, including signals, warning signs and warning equipment in places that have a high risk of traffic accidents. Tollbooths will assign more workers to collect fees quickly to reduce traffic jams.

Drivers must ensure passenger safety by driving more carefully on steep roads and through level crossings, he added.

Increased inspections should be used to strictly punish traffic regulation violators, especially those who cause traffic accidents.

Public order disturbances, illegal racing and violations against public servants on duty should be strictly dealt with, at the same safety of COVID-19 prevention for enforcement forces and people need to be ensured.

Local departments of transport were also asked to remind people of the importance of wearing helmets and obeying regulations to minimise accidents and strictly comply with anti-virus protocols.

Hotlines to receive traffic complaints should be widely publicised, he added.

The PM also requested news agencies to regularly update traffic accidents, traffic jams, information to support travel guidance during the holidays and encourage citizens to strictly comply with traffic safety regulations.

Reports on these efforts will be sent to the National Committee for Traffic Safety before 3pm on May 3 to submit to the Prime Minister.

Source: VNA

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