Changes in Vietnam
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Vietnam’s foreign exchange regulator has warned the government that its tightening of Covid-19 regulations in the south has forced some companies to relocate and create more markets.
The message and the four business chambers were presented as one of the biggest challenges in the world in Ho Chi Minh City which is based on one of the largest production sites in Asia.
“Businesses need a clear map and a guaranteed date to reopen it,” the US, EU and South Korea business in Vietnam and the US-Asean Business Council wrote a letter to Pham Minh Chinh, Vietnam’s Prime Minister.
“Studies conducted by our agencies show that at least 20% of our production members have already transferred certain items to another country, and discussed more,” the groups wrote, which was posted last week.
He also said many of their members were “calling every night with the regional and international headquarters thinking of which customers to respect, to turn to, and what they want to change”.
After that you have The first pandemic last year, Vietnam was hit by a disease that causes the Delta to change. As a result, the government hasten to buy vaccines.
Officials in Ho Chi Minh City, who were in the middle of the epidemic, banned many routes and imposed stricter factory regulations since early July, forcing companies to choose between sleeping and feeding workers “by foaming” or closing.
Some restrictions have been reduced recently but the city remains closed.
Vietnam is one of the leading manufacturing centers in Asia, with attractive taxes and other incentives to work for foreign companies © Nguyen Huy Kham / Reuters
These restrictions have severely limited performance. Companies whose suppliers or conferences have been diverted from Intel by Toyota carmaker maker to home-based Ikea retailers and Nike and Adidas sportswear brands.
In addition to the travel restrictions around Ho Chi Minh City, where the main town is spreading to neighboring areas with different laws, businesses have expressed frustration with restrictions on Vietnam’s entry into foreign countries.
“Policies aimed at curbing the spread of the virus have caused a lot of work-related problems in Vietnam, especially with the recent legislative changes and regulations,” Adam Sitkoff, executive director of the American Chamber of Commerce in Hanoi, told the Financial Times.
“The economic downturn is unstable, and after months of intense bans and operations, I am happy to see the economic situation resume here,” he added.
Business disruption poses a problem for the Chinh government, which came to power in April five years after the ruling communist party in Vietnam.
Prior to the epidemic, Vietnam had one of the fastest growing economies in Asia, thanks to favorable economic and other taxes, as well as its trade ties. The country is a member of the Transformed and Advanced Partnership Agreement between the Trans-Pacific and has trade agreements with the EU.
Vietnam, which before the plague was direction leading for foreign companies looking to diversify jobs far away from China, “they were missing out on business opportunities that would not return”, the groups warned.
“Money can’t go up without a clear plan to reopen and recover,” he said. “Even pre-existing businesses have many financial plans, due to the current crisis.”
Chinh in recent weeks held online meetings with US, Europeans, Japanese and others, some of whom took several hours, when they expressed their frustrations.
Follow John Reed on Twitter: @JohnReedwrites
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