Leaves vector

A young man in central Vietnam has helped his family escape poverty by chicken breeding and planting peach trees.

The Hanoitimes – One third of provinces bordering with Cambodia have tightened entry procedures on people coming from this country.

Vietnam has toughened up control over unlawful immigration in the region bordering with Cambodia after people returning from the neighboring country found infected with Covid-19.

Authorities in Dong Thap raise warning alert against Covid-19 following imported threat. Photo: VGP

A number of southern provinces bordering with Cambodia like Dong Thap, An Giang, and Kien Giang have asked its border guards to keep vigilance on the movements in boundary areas after Dong Thap detected two cases between February 26 and 28.

The southern provinces are under threat of local transmission as Vietnamese nationals attempt to return their home country after the pandemic has broken out in Cambodia since February 20, according to Doan Tan Buu, deputy chairman of the Dong Thap People’s Committee.

It means that the region is in danger of imported coronavirus infections, leaving the localities under high alert and requiring them to closely follow the 5K (in Vietnamese) measures namely masking, disinfection, distance, no gathering, and health declaration.

Following the community transmission, local governments require all returnees from Cambodia to go to concentrated quarantine centers, make health declaration, and be available for testing.

After the local authorities confirmed two people who are Vietnamese nationals returning from Cambodia, Dong Thap has suspended entertainment activities and festivals and closed schools in some districts.

An Giang’s forces boost border patrols. Photo: Tran Ngoc/Thanh Nien

Meanwhile, An Giang has raised its coronavirus alert to the highest level, setting up 176 checkpoints and 11 mobile teams against Covid-19 and intensifying border patrols.

The Military Command in Kien Giang has toughened management in quarantine centers that accommodate Vietnamese people coming from Cambodia.

Given threat of imported Covid infection, different localities across Vietnam have laid a close eye on illegal immigrants. As a result, police in Nghe An, Danang, Binh Duong, Binh Phuoc, Soc Trang, and Tra Vinh have arrested dozens of Chinese outlawed immigrants.

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 – A trade deal in place will help ensure continuity in trade relations between the UK and Vietnam after Brexit’s transitional period ends on December 31, 2020.

Vietnam and the UK today [December 11] officially concluded the negotiation process for the UK – Vietnam Free Trade Agreement (UKVFTA).

Overview of the signing ceremony. Source: MoIT.

The agreed minutes on the conclusion of the free trade agreement negotiation were signed by Vietnam’s Minister of Industry and Trade Tran Tuan Anh and the UK International Trade Secretary Liz Truss in Hanoi.

“The agreed minutes signed today is a first major step towards the signing of the UKVFTA in the coming time,” stated Mr. Anh.

The Vietnam minister said both sides started the negotiation process for the deal since August 2018.

As the UK is set to leave the EU-Vietnam Free Trade Agreement (EVFTA) after the Brexit’s transitional period ends on December 31, 2020, a new FTA between Vietnam and the UK will help ensure the continuity in bilateral trade relations.

On her part, UK International Trade Secretary Liz Truss said the UKVFTA is a milestone for the country to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which remains a priority for the UK government next year.

The fact that most of the clauses stipulated in the UKVFTA are similar to those in the EVFTA, significantly shortening the negotiation process for the two sides.

Mr. Anh suggested with the UKVFTA, Vietnam will hold advantages compared to regional countries such as China, India, Thailand, or Malaysia, those do not have a similar deal in place with the UK.

Vietnam is set to have more opportunities in attracting investment capital, technology transfer, and tourists from the UK once the Covid-19 is rolled back, while the deal presages positive outlook for the Vietnam – UK relations on the occasion of 10 ^th anniversary of the establishment of strategic partnership.

Under the UKFTA commitments, six years since the coming into effect of the deal, the UK will remove import tariffs for 99.2% of goods imported from Vietnam, or 99.7% of Vietnam’s exports to the country.

The EU in its EVFTA with Vietnam provides the tariff rate quotas (TRQs) with 0% tariff rate for certain imported products. The UK, meanwhile, is set to review actual trade figure with Vietnam during the 2014-16 period to make a similar decision.

On the other hand, Vietnam will immediately remove tariff for 48.5% of goods from UK, or 64.5% of import turnover. The figure is set to rise to 91.8% or 97.1% of UK exports to Vietnam in six years.

The UK is Vietnam’s third largest trade partner in Europe, behind Germany and the Netherlands.

In 2019, Vietnam’s exports to the UK reached US$6.1 billion, the country imported nearly US$800 million worth of goods and products in return.

As of August 2020, the UK has 400 valid projects in Vietnam with total investment capital of US$3.6 billion, ranking 16 ^th among countries and territories having investment projects in Vietnam.

The Hanoitimes – Hanoi hopes trade link will support its export-driven economy while London is trying to secure trade deals ahead of the transition period after Brexit.

Vietnam and the UK have agreed refresh and strengthen their strategic partnership and set the framework for forging ahead in the next decade.

Vietnam and the UK look to forge ahead the partnership in the next decade. Photo: MOFA

The two sides adopted a joint declaration at a meeting between Vietnamese Deputy Prime Minister and Minister of Foreign Affairs Pham Binh Minh and UK Foreign Secretary Dominic Raab on September 30 during the British diplomat’s visit to Hanoi, the first by a European politician to Vietnam since the start of the Covid-19 pandemic.

The declaration, which marks a milestone of 10 years of the Vietnam-UK Strategic Partnership, outlines the UK and Vietnam’s commitment to further strengthening the bilateral partnership.

It includes (1) deepening bilateral trade and investment, and pursuing more open trade through global and regional economic integration; (2) co-operating to support sustainable economic growth, and to combat the urgent challenges presented by climate change; (3) working together on shared security challenges through peace-keeping operations, military healthcare and training and maritime security; (4) enhancing ties in education, vocational training, higher education, particularly in the field of science and technology; (5) enhancing bilateral cooperation in defense and security and to combat serious and organized crime; (6) promoting people-to-people links, equal rights, including promoting gender equality and tackling modern slavery; and (7) committing to a closer coordination through multilateral fora, including the United Nations and within the framework of ASEAN.

Trade deal dominates the visit

To prepare for partnership in the next 10 years, the two sides highlighted the importance of a bilateral trade agreement that dominates the talks between UK Foreign Secretary Dominic Raab and his counterpart Pham Binh Minh, and between the UK Foreign Secretary and Vietnamese Prime Minister Nguyen Xuan Phuc on September 30.

Mr. Phuc said “Vietnam considers the UK a major trading partner in Europe and in the world”. He noted that a free trade deal with Britain, once it takes effect, would “help both countries boost economic recovery in post Covid-19 period.”

In reality, both sides are looking to strengthen trade ties. The EU-Vietnam Free Trade Agreement (EVFTA) took effect in August, but Brexit leaves the UK out of that agreement.

“We have secured Vietnam’s public support for the UK joining the Comprehensive and Progressive Trans-Pacific Partnership,” Mr. Raab wrote on Twitter. “This is a significant step in taking the UK-Vietnam economic relationship to the next level, and demonstrating the U.K.’s commitment and value to the region.”

The UK attempts to secure trade deals ahead of the ending of a transition period in December for Brexit from the European Union, its closest trading partner, while Vietnam hopes the trade link will help its post-pandemic economic recovery.

In 2019, the two-way trade hit US$6.6 billion while British investment in Vietnam reached US$3.7 billion.

Mr. Raab stressed the importance of Vietnam in the Asia-Pacific and Southeast Asia.

Vietnam, the only country in Southeast Asia to post economic growth this year as forecast by ADB, has signed more than a dozen free trade agreements, including one with the European Union and an 11-country CPTPP deal that slashes tariffs across much of the Asia-Pacific.

During the Vietnam visit, Mr. Raab said his country is committed to working with the region on issues like maritime security — a likely reference to the disputed South China Sea. He also held a conference call with ASEAN foreign ministers while in Hanoi.