Only 1% of American businesses plan to withdraw from Vietnam

Only 1% of American businesses plan to withdraw from Vietnam, according to the latest survey of the American Chamber of Commerce in Vietnam (AmCham Vietnam).

Only 1% of American businesses plan to withdraw from Vietnam
Employees are at work at a U.S.-invested company in Vietnam. - Photo: VNA

Meanwhile, 29% said they were planning expansion and 49% said they would stay and increase investment, AmCham Vietnam’s “Prospects for Reopening, Recovery, and Rebound” survey showed.

Besides, 18% of American businesses in Vietnam said they would stay but may target new investments elsewhere, and 3% will stay but will shift some production elsewhere.

Some 25% of enterprises expect to get back to normal by the end of this year. Meanwhile, 37%, 29% and 6% expect to resume their normal operations in the first quarter of 2022, the second quarter of 2022 and the second half of 2022, respectively.

Only 3% believed their operations would not return to normal until 2023.

International travel restrictions, supply chain disruptions, domestic travel restrictions, Government policies over the treatment of Covid patients and labor shortages are the key factors limiting the operations of American businesses in Vietnam.

The businesses said they are facing labor shortages, as many workers have returned to their hometowns, schools have closed and parents are struggling with managing work and online learning.

Complicated procedures for foreign experts and the hesitation of workers to return to the workplace are the other reasons for the labor shortage.

Approximately 80% of American businesses are offering flexible work schedules and work-from-home options to attract workers and retain them.

Assurances of vaccine access, cash incentives, transportation back from home provinces and assistance with childcare and housing are other incentives on offer.

 

They suggested that the central or provincial governments streamline procedures for the travel of foreign experts, reopen schools and offer transportation for workers back from their home provinces.

Up to 79% of American businesses said inconsistency among provinces is their biggest concern over the anti-pandemic policies.

They also expressed concerns over the requirement that Covid patients, even those who are fully vaccinated and asymptomatic, would be sent to centralized quarantine facilities.

Some 33% said decreased revenue due to a lack of customers is their greatest financial challenge related to Covid.

Other financial challenges include decreased revenues since they could not meet the demand for sales due to lockdowns, the cost of testing, the cost of paying employees in isolation, the cost to pay incentives to attract or retain staff and higher logistics/freight costs.

Up to 67% of American businesses operating in Vietnam have 100% of their workforce fully vaccinated, while 24% said over 80% had been fully vaccinated. Only 2% said less than 40% of their workforce had been fully vaccinated. 

Most American businesses think consistent policies throughout the country and herd immunity would be the key elements of a roadmap for a rebound in Vietnam.

They also proposed streamlined procedures for foreign expert approvals and travel, assistance for affected businesses, including reduced taxes and utilities and low-interest loans, and assistance to affected individuals, including food and housing.

Source: SGT

Over 60% of US firms will not consider shifting production out of Vietnam

Over 60% of US firms will not consider shifting production out of Vietnam

A flash survey by the American Chamber of Commerce in Vietnam revealed that while many US companies' operations in Vietnam have been affected significantly by the pandemic, the majority do not want to shift production out of Vietnam.

 
 

Other News

.
HAGL sells over 48 million shares to pay debts
HAGL sells over 48 million shares to pay debts
BUSINESSicon  14/01/2022 

Hoang Anh Gia Lai Joint Stock Company will sell more than 48.1 million shares of its subsidiary HAGL Agrico (HNG) from January 17 to February 15 to pay debt.

WB forecasts Vietnam’s growth at 5.5 percent in 2022
WB forecasts Vietnam’s growth at 5.5 percent in 2022
BUSINESSicon  14/01/2022 

The World Bank (WB) has forecast that Vietnam’s economic recovery is likely to accelerate in 2022 as GDP growth is expected to rise to 5.5 percent from 2.6 percent in the year just ended.

Vietnam reconsiders electricity sources after making international energy commitments
Vietnam reconsiders electricity sources after making international energy commitments
FEATUREicon  14/01/2022 

Vietnam’s commitments at 26th United Nations Climate Change Conference of the Parties (COP 26) will have a big impact on the country’s energy system. 

Vietnam’s economic growth forecast to rebound strongly in 2022
Vietnam’s economic growth forecast to rebound strongly in 2022
BUSINESSicon  13/01/2022 

Some foreign financial organisations have issued relatively positive predictions for Vietnam’s economy this year, with growth expected at 6.5 - 6.7 percent.

Three factors behind FDI attraction in Vietnam
Three factors behind FDI attraction in Vietnam
BUSINESSicon  13/01/2022 

Low labour costs, a geographical location close to Asian supply chains, and Japan and the Republic of Korea (RoK)'s efforts to promote greater overseas investment are considered as three factors in boosting Vietnamese foreign direct investment (FDI).

Live streaming attracts young people to earn money
Live streaming attracts young people to earn money
BUSINESSicon  13/01/2022 

Making money on online platforms and social networks is increasingly popular in the labor market, streamer jobs have become popular keywords for many young people.

Power Development Plan VIII under revision again
Power Development Plan VIII under revision again
BUSINESSicon  13/01/2022 

The draft Power Development Plan VIII is being revised again and expected to be submitted to the Prime Minister for approval in the first quarter of 2022.

VIETNAM BUSINESS NEWS JANUARY 13
VIETNAM BUSINESS NEWS JANUARY 13
BUSINESSicon  13/01/2022 

SSC carries out sanctioning procedures of FLC Chairman's huge share sale

VN banks expect to sell more shares to foreign investors in 2022
VN banks expect to sell more shares to foreign investors in 2022
BUSINESSicon  14/01/2022 

A number of Vietnamese banks plan to sell more shares to foreign investors in 2022 as part of set strategies.

Southern key economic region receives large inflow of foreign investment in 2021
Southern key economic region receives large inflow of foreign investment in 2021
BUSINESSicon  14/01/2022 

 Although the fourth wave of the pandemic negatively affected local production and businesses, the inflow of foreign investment to the southern key economic region increased significantly in 2021.

M&A in technology booms during pandemic
M&A in technology booms during pandemic
BUSINESSicon  13/01/2022 

The Mergers and Acquisitions (M&A) market in Viet Nam has been going through a downturn due to the pandemic, but the technology sector is bucking the trend.

Auction mechanism for sustainable development of renewable energy market under scrutiny
Auction mechanism for sustainable development of renewable energy market under scrutiny
BUSINESSicon  13/01/2022 

A Policy Dialogue on “Auction Mechanism for Sustainable Development of the Renewable Energy Market” was held via an online format on January 11 by independent think tank Vietnam Initiative for Energy Transition (VIETSE).

Transport Ministry proposes allowing private firms to invest in airport projects
Transport Ministry proposes allowing private firms to invest in airport projects
BUSINESSicon  13/01/2022 

The Ministry of Transport has proposed mobilizing private resources under the public-private partnership model for new airport projects, such as Quang Tri, Sa Pa and Cao Bang.

Land fever disturbs rural areas, housing dreams squashed
Land fever disturbs rural areas, housing dreams squashed
BUSINESSicon  13/01/2022 

Land fever has attacked not only large cities but also rural areas, leaving young people without hope of buying a house.

Trinh Van Quyet’s transaction canceled, securities accounts blocked
Trinh Van Quyet’s transaction canceled, securities accounts blocked
BUSINESSicon  12/01/2022 

An unreported transaction made by Trinh Van Quyet, Chair of FLC Group, worth VND1.6-1.8 trillion on January 10 has been canceled as he did not report the deal.

Tan Hoang Minh Group withdraws from Thu Thiem land auction, accepts loss of deposit
Tan Hoang Minh Group withdraws from Thu Thiem land auction, accepts loss of deposit
FEATUREicon  12/01/2022 

Tan Hoang Minh Group has sent a letter to the Party, State and Government leaders, and HCM City People’s Committee about its decision to withdraw from Thu Thiem land purchase that it won at auction in mid-December.

Banks criticized for sky-high interest rates, burdening businesses
Banks criticized for sky-high interest rates, burdening businesses
FEATUREicon  13/01/2022 

Many banks made a high profit in 2021 thanks to high lending interest rates. However, they have been warned of ‘making a rod for their own back’.

Land prices soar amid fear for Omicron
Land prices soar amid fear for Omicron
FEATUREicon  13/01/2022 

While affordable apartments are no longer seen in Hanoi and HCM City, apartments priced at hundreds of billions of dong are becoming popular.

Bad debts need to be curbed
Bad debts need to be curbed
BUSINESSicon  13/01/2022 

After the Circular issued by the State Bank of Vietnam on debt restructuring, many bad debts of commercial banks have become non-bad debts because they do not have to change the debt groups.

Vietnam ranks third worldwide in terms of rubber export value
Vietnam ranks third worldwide in terms of rubber export value
BUSINESSicon  12/01/2022 

Vietnam ranked third in the world in terms of rubber export value, with 3.24 billion USD in 2021, up 36.2 percent from the previous year, the Ministry of Agriculture and Rural Development (MARD) said.

 
 
 
Leave your comment on an article

OR QUICK LOGIN