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In new normal, businesses are afraid of ‘sub-licenses’



Most enterprises can now resume usual operations as Vietnam has entered the new normal period. However, their production and business have been obstructed by ‘sub-licenses’, or new regulations set by agencies.

In new normal, businesses are afraid of ‘sub-licenses’


At the Government’s September regular meeting, Deputy Minister of Planning and Investment Tran Quoc Phuong estimated that Vietnam may obtain a GDP growth rate of 3-3.5 percent this year.

Vietnam’s GDP growth rate in the first nine months of the year was modest, just 1.42 percent. To obtain the goal, the country needs to grow by 7.06-8.84 percent in the last three months of the year.

Quarterly growth rates of 7 percent and higher were the figures Vietnam once obtained in the past. However, analysts said in the current conditions, the growth would partially depend on safe adaptation to the pandemic.

Vietnam needs to have conditions to obtain a growth rate of 7.06-8.84 percent in Q4. Workers must be allowed to travel between localities and goods, both input and output, must be put into circulation.

Phuong stressed that only when the conditions can be satisfied will the economy be able to develop. Businesses now both have to restore production and ensure safety during the pandemic, so it would be a success if they can restore 80 percent of their performance.

However, businesses complained that sub-licenses may make it impossible for them to resume normal operation. The business community in Tien Giang has sent a petition to the province’s Chair after the plan on restoring production designed by the provincial authorities was released.

Under the plan, the production resumption period would include three stages, from October 1 to October 31, from November 1 to December 31, and from January 2022 afterwards.

In stage 1, enterprises would have to apply the ‘three on-the-site’ production mode. They must be the producers of essential goods and they have to PCR test all of their workers once every seven days, and test the workers receiving belongings from outside once every three days.

Enterprises can only use workers who have had at least one vaccination jab at least 14 days prior and the workers must show negative PCR test results before entering factories.

The business community commented that the plan is difficult to implement in stage 1, because most workers are still within barricades set up to protect ‘green zones’. To date, only 50-60 percent of workers have had first shots and less than 1 percent have the second shot. Meanwhile, specialists at foreign invested enterprises (FIEs) still cannot come back to work.

Businesses are worried about the requirements for stage 2, when only fully vaccinated workers can go to work. If vaccinations cannot be accelerated, it will be very difficult to satisfy the requirement to restore production.

Some large associations of enterprises in HCM City, including food and foodstuff, textile and garment, mechanical engineering, fine arts and woodwork have asked the HCM City People’s Committee to amend Document 3252 because of unreasonable provisions in the document, which will increase production costs.

The associations also pointed out that the document isn’t in line with the Ministry of Health’s (MOH) instructions on testing.

Under the document, workers and specialists who go to production facilities in HCM City and vice versa will have to show negative testing results once every seven days, though they have been fully vaccinated or fully recovered from Covid-19 for six months.

Meanwhile, MOH’s Document 8228 says that cities/provinces with very high risks, workers with high risks, or those who provide direct services to enterprises don’t have to test periodically if they have been fully vaccinated or have recovered from Covid-19 within the last six months. Testing is encouraged, and is not compulsory.

The member companies of these associations all have factories located in Binh Duong, Long An, Dong Nai and Tay Ninh, which means the number of workers and specialists traveling regularly between HCM City and the provinces is very high. Enterprises fear that the new regulation will be an obstacle to their operation.

No sub-license: experts

A VASEP (Vietnam Association of Seafood Exporters and Producers( survey found that only 30-40 percent of member companies will be able to restore production when the lockdown is removed, while it will take other enterprises a long time to do this.

The material supply chain has been disrupted, so it will be not easy to resume production. In such circumstances, if localities continue applying regulations that cause difficulties, enterprises won’t be able to come back to normal.

The material supply chain has been disrupted, so it will be not easy to resume production. In such circumstances, if localities continue applying regulations that cause difficulties, enterprises won’t be able to come back to normal.

Vu Tien Loc, Chair of the Vietnam International Arbitration Center, said the last three months of the year is the golden time for Vietnam to recover the economy.

Loc thinks the Government needs to give general guidance about safe and flexible adaptation to the pandemic. The guidance needs to concretize the principle mentioned by Prime Minister Pham Minh Chinh that no new business condition, no new licensing procedure and no new sub-license will be set.

Ly Kim Chi, Chair of the HCM City Food and Foodstuff Association, said businesses will collapse completely if another blow is dealt on them. The Government needs to release guidance on how to safely adapt to the new circumstances, so that businesses can take the initiative in arranging their plans.

Chi stressed that the regulations must be consistent from the central to grassroots levels, while local authorities must not be extreme and set ‘sublicenses’ causing difficulties for enterprises.

Cao Ngoc Lan, Deputy Chair of the Vietnam Tourism Association (VTA), also stressed that the policies must be transparent and the support needs to be enough to help revive travel firms, 90 percent of which have not been operating. 

Tran Thuy



IT giant FPT reports high profits over first nine months of 2021



FPT’s new headquarters on Phạm Văn Bạch Street in Hà Nội. —

HÀ NỘI – Information technology giant FPT has recorded VNĐ24.95 trillion (over US$1 billion) in sales and VNĐ4.57 trillion ($198 million) in pre-tax profits over the first nine months of 2021, up by 17.9 per cent and 20 per cent respectively.

Both revenue and profit enjoyed positive growth, with the technology and telecommunications sectors providing the primary impetus.

FPT’s technology sector accounted for 22.1 per cent of its revenue and 30.4 per cent of its pre-tax profit.

Overseas, sales increased in all of the major markets, especially in the US and Europe, due to high COVID-19 vaccination rates and steady economic recovery. FPT has consistently received substantial orders.

Revenue from digital transformation reached VNĐ3.94 trillion over the nine months, up by 59.6 per cent, thanks to growth in key technologies such as cloud computing (Cloud), Artificial Intelligence (AI), and low-code.

FPT secured 16 projects totalling more than $5 million by the end of the third quarter this year.

After three quarters of 2021, the group has achieved 72 per cent of its revenue target and 74 per cent of its profit target for this year, indicating that it is on track to meet its full-year targets.

FPT’s telecommunications sector has generated revenue of VNĐ9.23 trillion, an increase of 11 per cent with a pre-tax profit of VNĐ1.78 trillion, a 21.9 per cent increase over the same period last year.

Due to increased profits from PayTV, combined with the postponement of infrastructure investment due to the pandemic, the pre-tax profit margin of telecommunications services, including broadband and other services, continued to improve in the first nine months of 2021, reaching 20.8 per cent and 14 per cent, respectively. —


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Vietnam to build $305mn airport in northern resort town



Prime Minister Pham Minh Chinh issued a decision on Thursday to approve the construction of an airport in Sa Pa, a famous resort town in the northern Vietnamese province of Lao Cai, at an estimated cost of almost VND7 trillion (US$305 million).

The project, developed under the public-private partnership (PPP) format, is located on a 371-hectare plot in Cam Con Commune, Bao Yen District.

The first phase of the construction will start this year and will build the airport to a capacity of 1.5 million passengers a year before doubling it to three million passengers following the second stage in 2028.

The government will be charged with site clearance while private companies will undertake construction of the project. 

The government will contribute VND2.73 trillion ($119.8 million), or 39 percent of the funds, and private investors will cover the rest. 

Construction is expected to last four years and the investors are forecast to break even after 46 years. 

Sa Pa Airport is one of six new airports approved for construction by 2030.

Vietnam has 22 airports at present.

In the first six months of 2021, Lao Cai welcomed 1.1 million tourists, up 21 percent year on year, according to the Ministry of Culture, Sports, and Tourism.

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Effective linkage chain of safe agricultural production in Hà Nội



Leaders of Hà Nội Department of Agriculture and Rural Development visited a linkage model of chicken raising for eggs with high economic efficiency in Liên Châu Commune, Thanh Oai District, Hà Nội. — Photo courtesy of Hà Nội Department of Agriculture and Rural Development

HÀ NỘI — Despite the complicated developments of the COVID-19 pandemic, thanks to agricultural production in the direction of safety, clear origin, and signing of product consumption contracts, agricultural product chains in Hà Nội are still promoting efficiency.

Director of An Phát General Agricultural Service Cooperative in Thanh Trì District Lưu Ngọc Nam said that in order to ensure a stable source of safe vegetables for supermarkets, convenience stores and collective kitchens, the cooperative has linked with 120 farming households in Yên Mỹ Commune, Thanh Trì District to produce more than 20ha of clean vegetables.

In addition, it also signed a contract to cover all vegetables produced in accordance with VietGAP standards in the communes of Yên Mỹ, Duyên Hà, and Vạn Phúc.

Director of Hoàng Long Cooperative in Thanh Oai District Nguyễn Trọng Long said that the cooperative supplied more than two tonnes of pork to the market every day.

Thanks to close links with the distribution system, the A-Z pork consumption chain of the cooperative has been maintained stably during the pandemic.

It is expected that people’s demand for food will increase by 15-20 per cent at the end of the year.

The cooperative was promoting re-herding and taking good care of the herd to supply the market at the end of the year with a possible output of more than 100 tonnes per month, said the director.

Production line of the Ba Vì Farm Milk Joint Stock Company. — Photo

The modern milk production line of the Ba Vì Farm Milk Joint Stock Company has an initial capacity of about 6 tonnes per day.

To ensure the source of raw milk, the company has co-operated with more than 20 dairy farming households in Ba Vì District, purchasing about 1.5-2 tonnes of milk per day for pasteurised milk production and other dairy products.

With a modern double-sealed technology platform, a processing capacity of approximately 2,000 tonnes per year, the company has now launched more than 20 types of products, with a wide consumption market across the country.

Not only bringing good revenue, the linkage model of cow milk production also brings stable income for dozens of livestock households and about 50 employees.

Assessing the effectiveness of the chain of agricultural product consumption, the director of the Hà Nội Agro – Forestry – Fisheries Quality Assurance Sub-Department Nguyễn Thị Thu Hằng said that 141 chain links from production to consumption in Hà Nội was currently showing good results. The production in the linked chain not only helped increase economic value but also contributed to raise income for workers.

Consumers also benefit from agricultural products with clear origin, safety and quality assurance.

Currently, in the context of the COVID-19 pandemic, measures to stabilise the supply of food are very important.

In order for the chains to continue to be effective in all situations, Vice Chairman of Thanh Oai District People’s Committee Nguyễn Trọng Khiển said that the district has a policy to support funding for communes to increase training courses, raise awareness and production techniques of typical local agricultural products, build brands, and connect with businesses to sign contracts to consume products.

Nguyễn Văn Chí, director of the Hà Nội Rural Development Sub-Department and deputy chief of the standing office of the co-ordination office of the Hà Nội New Rural Development Programme, said that to support agricultural production and consumption, Hà Nội was trying to implement the form of consuming agricultural products through online channels and social networks in order not to disrupt the production and supply chains of agricultural products in the area.

Deputy Director of Hà Nội Department of Agriculture and Rural Development Nguyễn Ngọc Sơn emphasised that in order to support entities participating in the chain, Hà Nội’s agriculture sector was creating favorable conditions for localities to promote the transformation of agricultural economic models in the direction of concentrated farming, thereby forming a large commodity supply chain.

At the same time, it also provided loans from the Hà Nội National Agriculture Extension Center (NAEC) for agricultural producers and developers to apply high technology to ensure a safe supply of agricultural products for consumers.


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