Shortage in supply and demand curve

Answers arrive to salvage construction, illustration photo/ freepik.com Earlier this month, a handful of domestic construction contractors including Delta Group, Vinaconex Corporation, CIENCO4, Eurowindow, and Phuc Hung Holdings proposed to the Vietnam Association of Construction Contractors (VACC) and the government to urge for a swift response from local authorities to address their problems. The VACC, likewise, also expressed its concerns over the skyrocketing prices of construction materials. “These difficulties are paralysing the construction sector, particularly in the south of Vietnam, where most localities are severely affected by the pandemic,” the association noted. According to Delta Group, the number of workers involved in projects is insufficient, affecting construction output and the progress of projects. In addition, the price increase and scarcity of input materials, such as the price of construction materials, increased by 25 per cent compared to the beginning …

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A private sector-led low-carbon economic growth model can enable Vietnam’s goal of becoming a high-income country by 2045. As Vietnam fights another wave of Covid-19, accelerating the pace of reforms, upgrading workforce skills and infrastructure will strengthen the private sector to help the country recover from the pandemic and unlock its potential, according to a new World Bank Group report. A manufacturing facility in Hanoi. Photo: Nguyen Viet The Vietnam Country Private Sector Diagnostic (CPSD) report, by IFC and the World Bank, says while the private sector has played a frontline role in Vietnam’s outstanding development in recent years, it’s now time to fully exploit the potential of the private sector to boost productivity growth so Vietnam can achieve its goal of becoming a high-income country by 2045. “The private sector has helped propel Vietnam to join the ranks of middle-income economies in just one generation, and the country was preparing for …

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Many smaller companies are struggling to keep up with insurance payments while halting production. Photo: Le Toan Nguyen Khanh Trinh, chairman of digital advertising service provider CleverGroup, has voiced his impatience about insurance expenses. “CleverGroup has branches in Hanoi, Danang, and Ho Chi Minh City but despite all employees having to suspend work, the company still pays full premiums of social insurance, health insurance, and unemployment insurance for them," Trinh said. These premiums cost CleverGroup thousands of US dollars. "If a small- or medium-sized group like us cannot arrange the cash flow for at least three months in advance, they may go bankrupt,” Trinh said. “The problem is that businesses have to pay full fees for insurance, and they will be fined for delays in payment, while employees having to temporarily stop work due to the pandemic are not receiving unemployment insurance,” he added. CleverGroup is just one example. Last week, 11 business …

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Ho Chi Minh City. Photo: VNA According to economist Ta Van Thanh, information transparency is necessary in data digitalisation activities. The barriers that real estate businesses face today are mainly in the accuracy and clarity of data. “Currently, it is very difficult for us to find suitable planning maps integrated on digital platforms. Among 63 cities and provinces, only Ho Chi Minh City has done this, creating favourable conditions for businesses,” said Thanh. Meanwhile, real estate businesses must look for information via relationships and other ways to gain access to maps of other localities. Information like these maps, according to Thanh, needs to be digitalised and centrally managed at the national level instead of individually at real estate companies or localities. The pandemic has raised awareness about the role of digital transformation and data storage in real estate projects. Recently, digital technology has proven its advantages in promotion, connection, …

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Dien made the statement at a working session with leaders of the U.S.'s AES Corporation in New York on September 21 (local time) to discuss the group's investment and business activities in Vietnam. At the meeting, the leaders of AES Corporation informed that a joint venture agreement has been completed for the Son My LNG port warehouse project on the basis of the main terms of the joint venture contract of Son My LNG (liquefied gas) port warehouse project signed in October 2020. This is an important milestone in the development of the entire project, obtained thanks to the approval and direction of the Government, the Ministry of Industry and Trade, the Commission for the Management of State Capital at Enterprises, the Vietnam National Oil and Gas Group (PetroVietnam) and relevant agencies of Vietnam. Minister Dien said leading U.S. firms’ success in Vietnam not only holds economic significance but also promotes Vietnam as a trustworthy investment destination for U.S. investors …

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Cars have been selling very slowly in amid Covid-19 and social distancing. A gloomy future has been predicted for the automobile industry. The Vietnam Automobile Manufacturers’ Association (VAMA) reported that its member companies sold 8,884 cars in August, a sharp fall of 45 percent compared with July and 57 percent with August 2020. This was the fifth consecutive month the market saw sales decrease. August saw the lowest sales since 2015. The decline has also been reported by TC Motor, not a member of VAMA, with 2,182 cars sold in August, down by 54 percent compared with July and 60 percent with August 2020. Meanwhile, VinFast sold 2,310 cars, a decrease from the 3,782 cars in July, but it was still 1,494 cars higher than August 2020. August coincided with the seven month of the lunar year, the month of forsaken spirits, and people do not make important purchases in that month. This, plus social distancing applied in many cities and provinces, had a strong impact on the …

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According to a new decision by the HCMC People's Committee, from Sept. 24- 30, delivery businesses using technology applications will have to carry out rapid Covid-19 tests for shippers, collecting samples of three persons at random every three days, and then update the results onto the city's general database. The decision offers two options. In the first option, the Department of Health will provide free testing kits and businesses will have people trained to do the testing of their drivers. The second one will be a paid service contract between businesses and medical facilities providing the service. On the evening of Sept. 21, Be was the first platform to confirm their plan. Its shippers would go to contracted testing points and access rapid testing provided flexibly during the day. The test would take one minute per person and results would be available in 30 minutes. Other platforms said they were still preparing their plans. Grab and ShopeeFood said they were working …

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Inside a Ford’s plant in the northern province of Hai Duong. — VNA/VNS Photo Tran Viet There is plenty of room for Viet Nam to lure investment from the United States especially after the visit of US Vice President Kamala Harris to Ha Noi in late August, said Nguyen Van Toan, Vice Chairman of the Association of Foreign Investment Enterprises. Online newspaper congthuong.vn cited Toan as saying that during her visit, Vice President Kamala Harris said that the US Government would continue to promote bilateral co-operation with Viet Nam on economy, trade and science and technology. Over recent years, many US investors visited Viet Nam to learn about the country's investment environment, Toan said, mentioning a large amount of US investment into Viet Nam via a third country. According to the Ministry of Planning and Investment's Foreign Investment Agency (FIA), there remained untapped opportunities for Viet Nam and the US to cement and then foster two-way co-operation. The …

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The PetroVietnam Gas Joint Stock Corporation (PV GAS) and US-based AES Corporation signed a joint venture agreement on the establishment and operation of Son My LNG port warehouse limited company in New York on September 22 (local time). PV GAS, AES exchange joint venture agreement on the establishment and operation of Son My LNG port warehouse limited company (Photo: VNA) The signing ceremony was witnessed by President Nguyen Xuan Phuc who is on New York to attend the general debate of the 76th session of the United Nations General Assembly (UNGA). The joint venture agreement was based on the main terms of the joint venture contract of Son My LNG (liquefied gas) port warehouse project signed in October 2020. The Son My LNG port warehouse is one among a series of LNG power projects in the south central province of Binh Thuan, with an estimated total investment of 1.31 billion USD, and a capacity of 3.6 million tonnes a year in the first phase …

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