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Vietnam warned easing monetary policy to cause asset price bubble: Experts

April 21, 2021 by hanoitimes.vn

Credit has not been effectively channeled into fields that contribute directly to economic growth and ultimately social prosperity, but to risky fields such as real estate, stock market or cryptocurrencies.

The current low-interest rate environment as a result of monetary easing policy adopted by the Vietnamese government is channeling social capital into risky fields of real estate or stock market, instead of production and business activities.

Anh Khanh urban residential area in Hoai Duc district. Photo: Pham Hung

Pham The Anh, chief economist at the Vietnam Institute for Economic and Policy Research (VEPR), told Hanoitimes in reference to the overheating of asset markets in recent months.

“With a cheap money policy from the central bank, investors tend to stay away from business and production expansion, which seems to be riskier than betting on real estate or stock markets,” Anh noted.

At present, Vietnam’s ratio of M2 money supply (covering cash in circulation and all deposits) to GDP is at nearly 200% and the credit-to-GDP ratio 140%, the highest among five major economies in ASEAN, said Anh, pointing out similar ratios of 60-70% in Thailand, Indonesia and Malaysia.

Last year, Vietnam registered a credit expansion of 12,13%, while the nominal GDP growth stood at  2.91%. “This indicated credit has not been effectively channeled into fields that contribute directly for economic growth, and eventually for social prosperity,” he added.

For the past five years, credit into real estate rose eight-fold and currently makes up 20% of total outstanding loans.

“Taking into account an addition of 20% in total outstanding loans from consumer credit, which also includes loans for home purchases, the dependent level of the economy into banks’ credit is growing at a rapid rate,” stated Anh.

Anh added idle money from the people and enterprises pouring into asset markets could also increase social inequality as real estate properties are becoming more expensive and thus making it harder for low- to middle-income groups to purchase.

On this issue, economist Can Van Luc said asset bubble price would become not sustainable and   burst eventually, leading to severe consequences for the society.

“It is especially risky for those that are using financial leverage to invest in real estate, stock market or cryptocurrencies,” he noted, saying this is also a major issue for the global economy as global debt has now reached US$277 trillion, or 365% of world GDP.

Luc called for the government to act drastically in addressing hikes in land prices in many provinces/cities which have doubled or tripled in the past months in Vietnam by providing more transparent information on land planning, while working on measures to promote professionalism and transparency in the stock market.

In a recent meeting, Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong stressed the importance of tightening credit into risky fields and meeting growing capital needs for priority fields [agriculture, industry, small and medium enterprises], adding the move is in line with Vietnam’s ongoing restructuring process to ensure sustainable development and maintain stability in the banking sector.

In the first quarter of 2021, credit channeled into real estate was estimated at VND1,850 trillion (US$80.35 billion) up 3% against late 2020 and higher than the overall credit expansion rate of 2.93% for the period.

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Complete security screening at HCMC airport in 45 seconds: deputy minister

April 21, 2021 by e.vnexpress.net

Tuan issued this directive at a Tuesday meeting with Airports Corporation of Vietnam (ACV) and the airport’s management board in Ho Chi Minh City.

He said the agencies must prepare to cope with the influx of air passengers and take steps to avoid congestion in the security screening area.

“The airport’s security area must increase its maximum capacity and mobilize more employees to serve passengers to avoid overcrowding that recently happened in the area,” Tuan said.

The domestic terminal at the country’s largest airport has seen frequent overcrowding over the past week, forcing passengers to queue up for hours at the security screening area . Between April 14 and 19, the airport saw up to 80,000 passengers a day.

Tuan also asked the Civil Aviation Administration of Vietnam (CAAV) to check the number of hourly flights at major airports as the passenger congestion was also triggered by carriers accumulating or canceling flights.

Passengers’ medical declarations was another reason. Tuan agreed that security forces are not tasked with checking passengers’ medical declaration as has been done so far. Instead, this should be the responsibility of the airline staff.

Nguyen Duc Hung, deputy general director of ACV, explained that the recent overcrowding at Tan Son Nhat was related to the limited capacity in the security screening area.

In the A and B lobbies, the airport is equipped to handle over 3,300 passengers an hour. However, from 6 a.m. to 7 a.m. last Saturday, the number of passengers waiting for security checks in the two lobbies was more than 5,100, exceeding the capacity by 25-35 percent.

Another factor in the recent overcrowding was a policy to random check 10 percent of passengers. Dinh Viet Thang, head of CAAV, said the random checks were meant as an additional security and safety measure.

To resolve the issue, ACV has been operating the security screening system to their maximum capacity and moved five security scanners from the international terminal to the domestic terminal. Airport authorities have also adjusted the number of flights during the peak hours to reduce congestion at the airport.

The Tan Son Nhat airport has been serving 36 million passengers a year since 2017, well above its capacity. Construction of a third terminal will begin this October.

With Vietnam having contained its latest Covid-19 outbreak, domestic air travel has returned to normal. The latest outbreak occurred in late January, just a few weeks before the Lunar New Year holiday, forcing many people to cancel travel plans.

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RCS recognizes Viet-Duc Hospital as global training center

April 21, 2021 by hanoitimes.vn

The hospital will attract the cooperation of international hospitals and medical facilities as well as foreign experts.

Vietnam-German (Viet-Duc) Friendship Hospital has been recognized as a training center, which

meets global standards by the UK Royal College of Surgeons (RCS).

The certification will expire in February 2024.

Vietnam-German Friendship Hospital is a referral hospital able to perform specialized surgery such as neurosurgery, thoracic cardiomyopathy, hepatopancreatic surgery, digestive surgery, orthopedic surgery, among others.

Doctors at Vietnam-German Friendship Hospital perform surgery on patients. Photo: Vietnam-German Friendship Hospital

This is also the leading hospital in Vietnam that has successfully implemented multi-organ transplant, liver transplant, heart transplant, kidney transplant, lung transplant, and others.

With nearly 2,500 employees, more than 1,500 beds and over 50 modern operating rooms, Vietnam-German Friendship Hospital is the country’s largest surgical center, performing about 70,000 surgeries each year.

Professor, Dr. Tran Binh Giang, director of Vietnam-German Friendship Hospital said that the RCS is an independent body, dealing with numerous fields including surgical assessment, ratings and issuance of global certifications under strict criteria.

Training facilities related to surgery not only in the UK but also in many other countries wish to be certified by the RCS to promote their ranking and prestige regarding the training and quality of their surgeons, the director added.

“With the RCS’s certificate, Vietnam-German Friendship Hospital will attract the cooperation of international hospitals and medical facilities as well as foreign experts,” Giang said.

“The hospital’s doctors train thousands of students every year and cooperated with major hospitals in the world, including those in France, the US, Japan, the UK, South Korea, Australia, Taiwan (China), among others.”

To help people in remote and mountainous areas access modern medical care, the hospital has officially launched the Telemedicine system, which is donated by the German government.

The RCS held an online assessment on December 11, 2020 which lauded the training at the hospital.

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Cash-strapped Africa overwhelmed by COVID-19 vaccine challenge

April 21, 2021 by tuoitrenews.vn

DAKAR, April 21 – When Ghana received 50,000 COVID-19 vaccine doses from India last month, it hit a frustrating roadblock: it had not trained enough staff to distribute them.

The country was still rolling out shots received in late February from the global vaccine-sharing scheme COVAX, and didn’t have the capacity to expand that operation, according to the head of Ghana’s immunisation programme.

Rather than going straight into the arms of health workers, the additional doses were put in cold storage in the capital Accra, Kwame Amponsa-Achiano told Reuters, adding that his team had received two days’ notice about the shipment.

“We were in the middle of the first campaign,” Amponsa-Achiano said. “How do you plan for 50,000 when you already are doing another campaign?”

The problems faced by Ghana, one of sub-Saharan Africa’s more economically developed nations, illustrate how a continent with experience in battling deadly infectious diseases has found itself ill-prepared to inoculate people against this pandemic.

Many African countries, already facing a shortage of affordable vaccines, are being stunned by the unprecedented scale of the distribution challenge when doses do arrive.

Authorities do not have enough equipment like masks and cotton wool because of funding shortfalls that could total billions of dollars, according to more than a dozen health experts and some internal government documents seen by Reuters.

They also lack sufficient personnel and training to distribute vaccines at short notice.

While Africa has thus far been relatively unscathed by COVID-19, some experts fear stuttering rollouts could draw out the outbreak in the region, potentially leading to more deaths and economically damaging restrictions in a continent that is already the poorest in the world.

Benjamin Schreiber, COVAX coordinator at the U.N. children’s agency UNICEF, said logistical problems could mount in the coming weeks and months as countries tried to get vaccines to their general populations.

“As we start rolling out bigger quantities, we are going to start seeing more issues,” Schreiber said.

“The gaps in the healthcare systems will be the gaps that hinder the rollouts,” he added. “My worry is that we miss complete communities.”

Needed: millions of dollars

Ghana, where the novel coronavirus has infected more than 91,000 and killed over 750, is considered one of the better-prepared countries in Africa to carry out a mass vaccination drive because of its political stability and economic development.

The government aims to initially inoculate 17.6 million people – about half of its population – at a cost of $51.7 million, according to a national plan seen by Reuters.

It hopes to cover $7.9 million of that money with a World Bank loan but is short of $43.8 million, described as a “funding gap” in the internal government document.

Immunisation chief Amponsa-Achiano said he was not aware that the situation had changed since the plan was formulated in February.

The Ghanaian finance and health ministries did not respond to requests for comment.

Ghana was the first country in the world to receive a shipment from COVAX, taking delivery of 600,000 doses of the AstraZeneca/Oxford University vaccine, manufactured in India, on Feb. 24.

It started its vaccine drive on March 1, and had vaccinated 599,000 people by April 7.

While that vaccination rate is better than many of its African peers – Ivory Coast vaccinated just over 53,000 people between March 1 and April 6 – it is far behind the fastest countries globally. Britain, for example, administered doses to about 2 million people in roughly the first month of its drive.

Needed: fridges, cotton wool

The Ghanaian national plan shows how even relatively prosperous African nations lack vital equipment.

Money is needed across the board, including $1.5 million for 11 walk-in cold rooms and over 650 fridges to keep vaccines at between 2 and 8 degrees Celsius.

About $25 million is needed for supplies and waste management, including 33,600 boxes of face masks, 240,000 bottles of hand sanitizer, and nearly 55,000 rolls of cotton wool, the plan says. About $21 million is needed to train over 171,000 health workers and volunteers.

To add to Ghana’s challenge, its next COVAX shipments, expected in April and May, have been delayed until June, because India suspended major exports of vaccines manufactured there.

In its 2021 budget, outlined in mid-March, the Ghanaian government allotted 929,296,610 cedis ($160 million) for vaccine acquisition and deployment.

Amponsa-Achiano said, though, it was not clear how much would go towards distribution, or when the funds would materialise.

It is a common problem in Africa, UNICEF’s Schreiber said.

“The question is at what point will this funding hit the ground? Will it be in time?”

Congo Ebola outbreaks

Some African authorities are familiar with deadly contagions. Since 2018, Congo has contained four Ebola outbreaks with a vaccine which must be stored at between -60 and -80 degrees Celsius.

But the scale of the COVID-19 vaccination drive is new.

COVAX – the donor scheme co-led by the World Health Organisation (WHO) – has delivered over 18 million doses to 41 African countries, according to Reuters data.

That’s the first wave in a drive expected to deliver 600 million doses to Africa this year, enough to vaccinate 20% of their populations. Russia, China and India have also donated some of their vaccines.

Funding is only one issue delaying vaccine rollouts.

Another is patchy record-keeping in many public health systems, which experts say make it difficult to identify people who should be prioritised because of age or co-morbidities.

Demand for shots is also weak in some countries due to mistrust of health authorities, lack of education about the vaccines and worries about potential side effects.

Spotty electricity and poor transport links in some places add to the challenge, while medical teams will have to negotiate safe passage across parts of Democratic Republic of Congo, Mali, Somalia and other places where insurgencies rage.

Vaccinating until end-2022?

John Nkengasong, who heads the Africa Centres for Disease Control and Prevention, says it could take until the end of 2022 to vaccinate 60% of the continent’s 1.3 billion people.

Take the task facing Mali, an impoverished country fighting an Islamist insurgency. It needs $14.7 million to deploy vaccines, including for gasoline, vaccine storage and training, according to an internal government vaccination plan seen by Reuters.

The government will need funding support from the WHO, UNICEF, the GAVI vaccine alliance and the World Bank, the plan says. Those organisations are all looking to provide funding to African nations facing shortfalls.

South Sudan, still racked by violence after a civil war ended in 2018, has seen COVID-19 infect at least 10,300 people and kill more than 100.

It began distributing 132,000 vaccine doses from COVAX on April 7. However, authorities won’t start administering shots outside the capital Juba and its surrounding county until May at the earliest, said Kawa Tong, a member of a COVID-19 steering committee that advises the government.

“The key reason is the lack of funds for a rollout outside Juba. The transport of vaccines, training of health workers, community outreach – all these are tied to funding,” Tong told Reuters.

Adding to the difficulties, by May the rainy season will be well underway, cutting off transport links to large parts of the country, she said. The vast majority of the 11 million-strong population live outside Juba county.

Atem Riek Anyom, director general for primary healthcare at South Sudan’s health ministry, said the government had requested World Bank funding, adding that vaccines would soon be deployed across the country.

“There’s no challenge in regards to the vaccine rollout,” he added.

The World Bank, which has a $12 billion fund to help developing countries around the world buy and distribute vaccines, said it was reviewing requests from Mali and South Sudan.

The bank said it has approved $2 billion to 17 countries, including seven in Africa: Ethiopia, Cape Verde, Ivory Coast, Eswatini, Tunisia, Rwanda and Gambia.

Filed Under: Uncategorized Vietnam Life - Cash-strapped Africa overwhelmed by COVID-19 vaccine challenge, TTNTAG, africa cash and carry, africa enterprise challenge fund, africa vaccinations, environmental challenges in africa, 9 challenges facing south africa

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