Vietnam’s economy is heavily affected by Covid-19

The aviation and livestock industries both reported heavy losses due to COVID-19, in need of a support package from the Government of Vietnam

Every month, nearly 10,000 enterprises suspend business for a definite time, stop operating, wait for dissolution procedures, and complete dissolution procedures. That is the number announced by Vietnam’s General Statistics Office and announced by the state-controlled media on October 29.

Specifically, out of the total number of enterprises withdrawing from the market in the past 10 months, the number of enterprises temporarily suspending business was 48,500 thousand, up 16% over the same period last year; 35,000 enterprises stopped operating and waited for dissolution procedures, up 15.7% and 13,600 enterprises completed dissolution procedures, up 0.8%.

Thus, an average of 9,700 enterprises withdraws from the market every month.

Meanwhile, there were 8,233 newly-established enterprises in October and 4,304 enterprises returned to operation. Generally, in the first 10 months of 2021, there are 93,700 thousand newly registered enterprises with a total registered capital of nearly VND1.3 trillion.

The General Statistics Office also said that the total foreign investment capital registered in Vietnam as of October 20, 2021, includes newly registered capital, adjusted registered capital, and the value of capital contribution and share purchase of foreign investors. reached $23.74 billion, up 1.1% over the same period last year.

The report of the General Statistics Office shows that the prolonged COVID-19 epidemic has caused many businesses to face the risk of bankruptcy, disrupted domestic and international supply chains due to consecutive distances and the number of newly-established enterprises had a serious decrease.

Earlier, on October 12, also according to a report by the General Statistics Office, more than 28.2 million workers were affected by the 4th outbreak of the COVID-19 pandemic in Vietnam. Pham Hoai Nam, director of the Department of Population and Labor Statistics, said the drop in the labor force participation rate in the third quarter is considered the lowest level not seen in the past 10 years.

The livestock industry lost VND80 trillion because of the COVID-19 epidemic

Leaders of Vietnam’s Ministry of Agriculture and Rural Development are classifying losses in the livestock industry to request the Government to grant a support package when the COVID-19 epidemic causes the livestock industry to lose an estimated VND80 trillion.

vov.vn announced the above information on October 29, and quoted Minister of Agriculture and Rural Development Le Minh Hoan as saying that the ministry is making recommendations and classifying damages to request the Government to grant VND30 trillion support packages for Vietnam Airlines.

Although the amount of damage caused by the pandemic is very large, according to Minister Hoan, in the process of aggregating the damage, the ministry encountered many difficulties. Because the livestock industry is difficult to quantify, he explained. Because each household has a different quantity of farming, selling at different times of up and down prices. Vietnamese farmers still mainly farm in the form of households, in small numbers. The number of concentrated, large-scale, and managed farms accounts for a very small percentage.

Since 2018, Vietnam has had Decree 58 on agricultural insurance, but so far it has not come to life.

Mr. Le Minh Hoan added that because farmers are not familiar with buying insurance, for other industries, such as Vietnam Airlines, because it is an enterprise, the statistics are always clear, complete, and can be reported immediately to the Government extent of damage to plan support. Therefore, Mr. Hoan suggested that livestock households must register their businesses, in order to make credit support and risk support more favorable.

As early as June, leaders of Vietnam Airlines called for help, if the government does not “pour money” to support, by August the airline will run out of money to operate. Recently, the aviation industry wants to borrow an additional VND 30 trillion to rescue private airlines affected by the COVID-19 epidemic.

At the end of September 2021, leaders of the State Bank asked credit institutions to try to reduce lending interest rates and unsecured loans for aviation enterprises. As for the proposed credit package of VND30 trillion-plus VND24 trillion of the current outstanding debt of the aviation industry, Deputy Governor of the State Bank Dao Minh Tu said it is not too big.

Thoibao.de (Translated)

Source: https://www.rfa.org/vietnamese/news/vietnamnews/nearly-10000-businesses-withdraw-from-market-each-month-10292021081731.html

https://www.rfa.org/vietnamese/news/vietnamnews/livestock-industry-loses-vnd-80-trillion-due-to-covid-19-epidemic-10292021082105.html

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