Shortage power supply

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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The fourth outbreak of the COVID-19 pandemic starting from late April has had more negative impacts on daily life as well as socio-economic development than the previous waves in the country. However, Vietnam attracted 14 billion USD in foreign direct investment (FDI) in the first eight months of this year, only two percent lower than the same period last year, showing foreign investors’ confidence in the country’s economic scenario in the mid-and long terms. Choi Joo Ho, President of Samsung Vietnam (Photo courtesy of the company) Vietnam News reporters talked with Choi Joo Ho, President of Samsung Vietnam; Mohammad Mudasser, Director, Advisory Services, PwC Vietnam; and Nguyen Thi Ngoc Hue, Corporate Communications & External Affairs General Manager of AEON Vietnam about investors’ confidence in Vietnam's investment environment and its fight against the pandemic. How has the fourth outbreak of the coronavirus in Vietnam and the ongoing social distancing …

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There is only one container placed next to the power station to keep the goods inside cold at Hoc Mon Wholesale Market. (Photo: SGGP) Goods not plentiful After reopening for three nights, Hoc Mon Wholesale Market faces the risk of closing again as traders gradually withdraw because they cannot sell goods. Around midnight on September 22, the journalist of SGGP Newspaper presented papers and went through strict medical checks before entering the market. Inside the market, unlike the usual bustling scene, there was not a shadow of traders or vehicles. There was only one container placed next to the power station to keep the goods inside cold. "This container is about 30 tons. It belongs to a trader and has arrived at the market for two days. However, because the trader cannot sell goods yet, the container is temporarily left here, and the market provides it free electricity," said Phong, a night guard of Hoc Mon Wholesale Market. The market imported about 132 tons of goods …

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For the first time last year Vietnam was among the world’s top 20 economies in attracting FDI as $16 billion poured in though globally the figures fell by double digits. The country was hailed as a success story in controlling Covid, which helped it attract companies shifting out of China. However, the Delta variant and the restrictions imposed for the last several months have caused the situation to sour for many foreign companies, making them reconsider their plans. Twenty percent of American companies had shifted part of their production out of Vietnam as of mid-August, a survey by the American Chamber of Commerce in Vietnam (AmCham Vietnam) has found. Besides, half the respondents were operating at less than 50 percent capacity and 13 percent had temporarily closed down. The European Chamber of Commerce in Vietnam also said 20 percent of its members had shifted part of their production overseas. BritCham Vietnam chairman Chris Jeffery said: "British manufacturing firms, …

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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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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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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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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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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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