Long-term prospects outlast supply chain concerns. Illustration photo - freepik.com The latest survey by the German Chamber of Industry and Commerce (AHK) found that 60 per cent of German companies in Vietnam were complaining about price increases or supply chain bottlenecks for raw materials, intermediate products, and other goods. The main reasons for raw material shortages as claimed are increased demand, low production capacity, and transport problems that continue through the COVID-19 pandemic worldwide. The bottlenecks in the supply chain are causing numerous difficulties in terms of production activities for the surveyed companies such as higher input prices, longer waiting times, and even production interruption and operation halts. The survey covered 3,000 German companies in various countries across all sectors. It pointed out that 90 per cent of German companies in Vietnam said seeking new or additional suppliers in Asia-Pacific and raising inventory levels are … [Read more...] about Long-term prospects outlast supply chain concerns
Long term disability
Receipts from taxes are on the decrease, which show that goods consumption and production of enterprises have been hit hard by the Covid-19 crisis. EuroCham’s newly released report on business index during social distancing periods showed that 18 percent of businesses in the manufacturing industry have transferred a part of their orders or production demand to other countries, while 16 percent are considering doing this. EuroCham’s Chair Alain Cany said this was just a temporary decision. However, if social distancing lasts two or three more months, the situation will become more serious. Meanwhile, a survey by the Association of German Chambers of Industry and Commerce (DIHK) of German investors in Vietnam found that 60 percent of businesses confirmed the disruption of supply chains, which has caused serious consequences. Up to 83 percent of businesses said they have suffered from production disruption because goods transport, circulation and consumption have been … [Read more...] about How long will social distancing last?
The office market in Hanoi is experiencing many changes amid the COVID-19 pandemic in terms of rental prices, occupational profile and new demands for office spaces, according to Savills Vietnam. Rents on the Hanoi office market are expected to also remain stable as there are limited prime projects coming until 2023. — Photo baotintuc.vn Grade A rents in Hanoi are predicted to be stable in the upcoming year. With the Capital Place project in the secondary area entering the market, total grade A supply in Hanoi reached about 90,000 sq.m in the first half of this year, up 24 per cent year on year while the average rent was up 7 per cent year on year. As take up has been stable over the past three years, it will take some time for this volume of space to be absorbed. Rents are expected to also remain stable as there are limited prime projects coming until 2023. In 2021, the Information and Communication Technology (ICT) sector as well as industries such as … [Read more...] about Hanoi office market will see large changes after pandemic
Thanks to the EVFTA, more European goods can find themselves on store shelves in Vietnam now. Photo Le Toan The EU-Vietnam Free Trade Agreement (EVFTA) is helping businesses in member countries to enjoy many tariff benefits. Alain Cany, chairman of the European Chamber of Commerce in Vietnam (EuroCham), on August 28 said that 65 per cent of EU exports to Vietnam and 71 per cent of the latter’s exports to the EU are duty-free since last August, when the EVFTA came into effect. Cany believed that a decade from now, this number will grow to nearly 99 per cent, which will make Vietnam a more attractive destination for European investors. The possibility of the EU signing an FTA with another country in the region, besides Vietnam and Singapore, is also becoming likely. Nevertheless, Vietnam is holding the first-mover advantage to assert itself against competitors in the European market. By signing the EVFTA, Vietnam hopes to boost trade with its Western partners and also import … [Read more...] about Better coordination for optimal results from EVFTA
Two investors at the trading floor of TVSI Securities Co. The number of new accounts opened in August soared to 120,500, many of which were individual investors. — Photo tinnhanhchungkhoan.vn The stock market is becoming a favoured and profitable investment channel for investors amid the COVID-19 pandemic but it also poses many challenges for regulators and market members. Money flowing into the stock market comes from many different channels and mainly from domestic investors. The stock market has lured massive participation of "F0" investors (people participating in the market for the first time) entering the market from early 2020, when the COVID-19 pandemic first spread. The number of new accounts opened in August soared to 120,500, many of which were individual investors. The strong cash flow flooding the stock market in August has spurred market liquidity. In August, the average trading value per session on HOSE via matching transactions reached VND21.7 trillion (US$954 … [Read more...] about Stock market a favoured investment channel for local investors
Vietnam is a key supplier of the world’s coffee, so disruption here ripples into all walks of global life The UK media finally picked up on the troubles surrounding COVID-19 in Southeast Asia at the start of September, but not to cover tightened restrictions and snowballing case numbers - rather, it was concern for how it would damage the British population’s ability to enjoy a coffee before commuting to work each day. The tough anti-pandemic measures induced in Ho Chi Minh City, its surrounding areas, and also in the Central Highlands region have disrupted supply chains after Vietnam, the world’s second-biggest exporter of coffee, continued to battle increasing infections since the latest and biggest wave emerged in June. Vietnam is the leading exporter of Robusta coffee, used for instant coffee as well as for some espresso blends. The sharp rise in coronavirus cases and a shortage of vaccines have caused the government to impose travel curbs in producing areas. British … [Read more...] about Coffee chaos highlights supply risks