Unique solutions needed for economic recovery

After the fourth Covid-19 wave, only 2 to 3 percent of households indicate that they are doing well. The well-off also tighten their belly and prioritize healthcare and employment.

Ms. Phuong Thuy (District 1, HCM City) has difficulty remembering a time when Bui Vien Street was crowded. The noise from surrounding bars which had once irritated her has now vanished.

Bui Vien Street, a nightlife tourist attraction in HCM City, used to be an ideal venue for Western guests and young Saigonese to come to eat and hang out every time they go down the street. It is so-called “Western Street” (Pho Tay) referring to its Western culture-orientated features. Before the pandemic, Bui Vien street was crowded with backpackers coming here to have fun, try unfamiliar cuisines and explore a new place during their trip to Saigon.

Due to social distancing, many famous bars and restaurants have been closed for a long time. Other businesses along the street have been forced to close or have begun to sell food.

“I have not observed a scenario like this, even though I have been living here for more than 10 years. The pandemic has badly affected the street,” Mr. Hai Thanh (District 1) said.

A manager of a restaurant on Bui Vien Street believes there are three reasons why the street has not been able to recover from the pandemic. Firstly, many businesses are closed because of the pandemic. Secondly, the fact that people’s fear of crowds can discourage them from going out more frequently. Finally, citizens are attempting to be economical and find other cost-effective forms of entertainment.

Phan Xich Long Street (Phu Nhuan District), a street of restaurants, is in a similar situation. Although several bistros allow takeout, it is reported that few customers buy food from their shops.

“Instead of making profits, we reopen so that people will not forget our brand. There were many days when staff opened the restaurant and just chatted with each other until they closed it without having a single customer,” the owner of a restaurant told VietNamNet.

Negative mindset

Tình huống lịch sử: Con số lo sợ và cảnh báo 'sự trừng phạt'

YOLO pub in 2019.
Tình huống lịch sử: Con số lo sợ và cảnh báo 'sự trừng phạt'

YOLO pub at present. The pub has been abandoned for months..

Tình huống lịch sử: Con số lo sợ và cảnh báo 'sự trừng phạt'
Bui Vien Street lost its special features because of the pandemic.

Ms. Nguyen Phuong Nga, senior account manager of Kantar Vietnam, said that this is the first time the company has noticed negative thought among people in its 20 years studying shopping behavior of people in rural and urban areas.

Kantar surveyed the level of people’s fear during the first pandemic wave in Vietnam when social distancing took place in April 2020. At that time, more than 30 percent of surveyed households said they felt insecure. In the latest survey in 2021, up to 54 percent of inquired families said that they did not feel secure. Even families with high monthly income also were anxious and started saving money to cope with any difficulties in the future.

 

“In the past, people paid more attention to health and food safety than to income. Now, they prioritize keeping up to date with the latest news on the pandemic, working and the cost of living. I have never encountered this situation before,” Nga said.

The consequences of the Covid-19 pandemic have greatly affected human behavior. The above worries make specific change to the consumption behavior and spending decisions of people. This partly explains why bars and restaurants on Bui Vien Street (District 1) and Phan Xich Long Street (Phu Nhuan District) would be very difficult to get up, which has urged many people to close their businesses and return retail space.

According to President of the Association of Vietnam High-Quality Goods Vu Kim Hanh, when people are not optimistic about their financial status and spend less, it is a “punishment” for businesses.

Tình huống lịch sử: Con số lo sợ và cảnh báo 'sự trừng phạt'

A restaurant that has been closed for months.

Tình huống lịch sử: Con số lo sợ và cảnh báo 'sự trừng phạt'

People and businesses in HCM City will have hard days after the fourth Covid-19 wave.

Prof. Nguyen Thien Nhan, former HCM City’s Party Secretary, said that as HCM city is facing an unprecedented situation so it needs unprecedented solutions. As its businesses do not operate, then workers lost their job and did not have income.

As a National Assembly deputy of HCM City, Prof. Nhan suggested that the Government provides support packages worth at least 6.5 percent of the country’s GDP, equivalent to US$18 billion for businesses and workers, to stimulate demands, through which stimulating production and business.

Tran Chung

Negative growth rate: unusual situation requires extraordinary solutions

Negative growth rate: unusual situation requires extraordinary solutions

Commenting on the negative growth rate in Q3, Tran Dinh Thien noted that this reflects the real situation of the economy but there is a foundation for a strong recovery in the future.

 
 

Other News

.
Farm exports on the rise despite Covid-19
Farm exports on the rise despite Covid-19
FEATUREicon  06/11/2021 

Vietnam’s farm exports continue growing, serving as the pillar of the economy. Exporters are sprinting to export more produce for the year-end sale season.

Virtual currency: a new game for Vietnam
Virtual currency: a new game for Vietnam
FEATUREicon  05/11/2021 

It is likely that the piloting of virtual currency will be the second sandbox in Vietnam after Mobile Money to offer the market a new and convenient means of payment in the digital economy.

Vietnam advised to rebalance its sci-tech development policy
Vietnam advised to rebalance its sci-tech development policy
FEATUREicon  05/11/2021 

The recommendation was made by domestic and foreign experts in the recently published "Vietnam Science, Technology and Innovation" report.

Running tourism firms now is as risky as trading in stocks: company director
Running tourism firms now is as risky as trading in stocks: company director
FEATUREicon  05/11/2021 

The complicated pandemic developments, plus the inconsistency in anti-pandemic policies in localities, have made travel firms feel as if they are walking a tightrope.

PCA decision to set up rep office shows Vietnam’s position internationally: expert
PCA decision to set up rep office shows Vietnam’s position internationally: expert
FEATUREicon  05/11/2021 

The opening of a representative office in Hanoi by the Permanent Court of Arbitration (PCA) marks important progress in Vietnam’s integration with the world and its attitude toward international laws.

Businesses resume production, gear up towards the finish line
Businesses resume production, gear up towards the finish line
FEATUREicon  05/11/2021 

“I could not believe my eyes,” said Tran Thanh Son, head of the human resources department of Song Ngoc Garment Company when talking about the current busy production lines at his company.

Sharing of infrastructure investments will speed up deployment of 5G network
Sharing of infrastructure investments will speed up deployment of 5G network
FEATUREicon  04/11/2021 

Vietnam is expected to quickly develop the 5G network through an infrastructure sharing model.

What is an acceptable clean-power price?
What is an acceptable clean-power price?
FEATUREicon  05/11/2021 

Vietnam wants to develop clean energy but the development needs to be reasonable to ensure that retail prices are affordable for most people.

The qualitative transformation of Vietnam’s rice
The qualitative transformation of Vietnam’s rice
FEATUREicon  04/11/2021 

The structure of Vietnam's rice for exports has shifted towards increasing the proportion of high-value-added rice varieties and reducing the rate of low-grade rice products.

Fake messages on social networks pose threats to individuals and businesses
Fake messages on social networks pose threats to individuals and businesses
FEATUREicon  04/11/2021 

Fake messages can spread rapidly on social networks, becoming dangerous tools that harm individuals and businesses.

Businesses have orders but lack workers
Businesses have orders but lack workers
FEATUREicon  04/11/2021 

Many businesses are running three production shifts a day to fulfill orders from Europe and the US. Some of them have enough orders for production until April 2022.

Will Vietnam face a recession?
Will Vietnam face a recession?
FEATUREicon  05/11/2021 

After crises in the past, Vietnam’s economic growth became sluggish and it took many years to achieve full recovery. Economists have warned that this may occur again in the post-Covid period.

Business activity in the post-pandemic period
Business activity in the post-pandemic period
FEATUREicon  03/11/2021 

Although most business resumed after the lockdown was lifted, The Coffee House Signature, a trendy destination of many young Saigonese, has announced its closure.

Farmers make modest profits and merchants pocket big money, so who’s to blame?
Farmers make modest profits and merchants pocket big money, so who’s to blame?
FEATUREicon  02/11/2021 

Experts have pointed out that the distribution of benefits in the livestock production chain has become unreasonable. Farmers who make products only earn a modest profit, while most of the money goes to merchants’ pockets.

Domestic violence during the pandemic
Domestic violence during the pandemic
FEATUREicon  01/11/2021 

According to the Center for Research and Scientific Application on Gender-Family-Women- Adolescents, during social distancing, violence against women and girls not only increased in the number of cases but also changed in some aspects.

High taxes and fees cause jump in petrol prices
High taxes and fees cause jump in petrol prices
FEATUREicon  02/11/2021 

Taxes and fees make up nearly 40 percent of the petrol price. The environmental protection tax is now at the ceiling level.

Car importers’ request for lower registration tax worries domestic manufacturers
Car importers’ request for lower registration tax worries domestic manufacturers
FEATUREicon  02/11/2021 

The request for a registration tax cut, if approved, will mostly benefit luxury car buyers.

Hanoi’s proposal to collect fees from cars entering inner city raises concerns
Hanoi’s proposal to collect fees from cars entering inner city raises concerns
FEATUREicon  02/11/2021 

Hanoi is considering setting up 87 toll collection stations in an effort to restrict the number of cars entering the inner city.

PM Pham Minh Chinh's trip to Europe and Vietnam’s responsibility for global issues
PM Pham Minh Chinh's trip to Europe and Vietnam’s responsibility for global issues
FEATUREicon  01/11/2021 

Attendance at COP26 has been a good opportunity for Vietnam to express its views on climate change, and to affirm its determination to contribute responsibly to global efforts.

Vietnamese paintings at international auctions reach milestones
Vietnamese paintings at international auctions reach milestones
FEATUREicon  31/10/2021 

Vietnamese paintings, especially the artworks created by those who studied from the Indochina Fine Arts College, have attracted the attention of the world’s art collectors.

 
 
 
Leave your comment on an article

OR QUICK LOGIN