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The resilience in spring

2021 posed a great challenge to all businesses with 2 waves of the COVID-19 pandemic. However, Vietnam's macro indicators have grown relatively steadily, affirming Vietnam's strategic vision and correct direction.

Another New Year is approaching. Epidemic and economic worries have gradually faded. Everywhere, peach and apricot blossoms are blooming in the air, followed by green sprouts emerging from the rough trunk full of life spirit, as if merging our souls with nature, heaven and earth. All create a peaceful, idyllic and gentle spring sky.

At this moment of seasons changing, we are looking back at the past year when Vietnam experienced the fourth wave of COVID-19 pandemic with painful losses, heavy damage to the economy which seemed difficult to resist. However, from challenging times, by taking sober steps coupled with quick and timely actions, the Vietnamese economy has been recently recovered and developing strongly, making up for the 3rd quarter of the year where it was stagnated.

Happiness from the miracles

Although hundreds of thousands of businesses postponed operating in 2021, Vietnam's stock market still peaked spectacularly in terms of scores and liquidity. The main driving force comes from the cash flow of domestic investors into the exchanges, leading to a sharp increase in the number of securities investment accounts, setting a record in attracting investors to participate in the market. Until the end of November 2021, the total number of securities accounts is 4.08 million while at the end of 2020 it is only 2.77 million accounts. Thus, only in 11 months of 2021, there were more than 1.31 million new accounts opened, of which domestic individual investors opened 1.306 million new accounts, 3.3 times higher than the number of the whole 2020. Accordingly, the VNIndex surpassed the historic peak of 1,200 points in April 2021 (the previous one was in 2007 and then went down), then a new peak around the threshold of 1,500 points at the end of 2021.

The decision of open skies is a strong proof for Vietnamese culture which is always connected, close and friendly with friends.

The size of the stock market has increased sharply, reaching 122.2% of GDP on November 12, 2021 (compared to GDP in 2020). According to the Scheme on Restructuring the stock market and insurance market 2020 - 2025, the Government set a target by 2025, the capitalization of securities would be 120% of GDP; however, this goal has been completed 4 years earlier.

The good news is that after all accumulated difficulties in 2021, the country's GDP has regained its rise and promptly grew by 2.58%, creating a stable macro environment, earning the faith of businesses, partners and investors in the economic development potential of Vietnam.

Despite being severely affected by the pandemic, Vietnam's import-export turnover in 2021 reached a record figure of 668.5 billion, up 22.6% yearon-year. In which, exports increased by 19%, in December 2021, reaching 34.5 billion USD, up 8.3% over the previous month and 24.8% over the same period last year.

The highlighted model in export can be said from the textile industry. From being not confident with the ability to achieve the target of 10% growth while output decreased continuously in July, August, September 2021, but only in 2 months after the economy reopened, the textile and garment industry has miraculously accelerated with export revenue of the whole year estimated at 39 billion USD, increasing 11.2% compared to 2020. This figure is even higher than the export revenue of 2019 when there was no COVID-19 epidemic.

This spring, the spring of bonding and recovery. After 2 years of shutdown, the tourism industry will also integrate with the joy of development.

To achieve the mentioned results, Vietnam has implemented effective solutions which are all to focus on implementing free trade agreements (FTAs) such as CPTPP, EVFTA, UKVFTA, etc., to effectively promote the agreements' preferences, thereby making the most of opportunities and limiting challenges from these agreements.

At the same time, Vietnam solutions on the economy prioritize the implementation of export promotion activities and export markets where have been recovering after the COVID-19 pandemic. Along with continuing to innovate, they also organized trade promotion programs, virtually connected domestic and foreign supply and demand via digital platforms. Another highlighted achievement is that for the first time, iron and steel exports exceeded 10 billion USD, estimated at 12 billion USD. With a “speedy” growth, in the first 11 months of 2021, steel exports reached 10.8 billion USD and are the commodity with the highest growth rate over the same period, reaching 129.8%. It is forecasted that steel export in the first months of 2022 still has good prospects because of the temporary shortage of steel - cement supply from China caused by the shortage of electricity supply in this country.

7 export items of Vietnam in 2021 with over 10 billion USD are phones - components, computers - electronic products - components, machinery - equipment, tools - other spare components, textiles - garments, shoes of all kinds, wood and steel. Most impressively, the export of agriculture - forestry - fishery has set a new record with a value of more than 47 billion USD.

Challenges and hope

On December 16, 2021, the Bank of England (BoE) became the first major central bank in the world to raise interest rates since the COVID-19 pandemic weighed on the global economy. The BoE assessed that the pressure from rising inflation would pose more risks to the economy than the new variant Omicron. Policymakers said they will continue to raise interest rates slightly as inflation is approaching its peak, possibly reaching around 6% in April 2022. The decision to raise interest rates at this time is remarkable, as Britain is engulfed in a new wave of COVID-19 due to the more infectious variant - Omicron, bringing the number of daily cases in the UK to the new record high since the beginning of the pandemic.

The Government's timely promulgation and implementation of Resolution No. 128/NQ-CP dated October 11, 2021, on a national scale, has made an important contribution to restoring production and promoting the market, gradually building confidence for businesses in the market.

From the standpoint of many central bank officials, inflation is under pressure due to many unknowns about the Omicron variant. This variant has recently appeared in Vietnam, posing the possibility of inflation pressure for Vietnam in 2022 like other countries. Accordingly, Vietnam is facing challenges in economic recovery due to the restrictions related to international travel, trade and investment. On the other hand, Vietnam also faces many difficulties in promoting exports and at the same time protecting people from Omicron.

The main driving force of economic development is enterprises. However, the total number of enterprises entering and re-entering the market in 2021 is nearly 160,000, down 10.7% compared to 2020. Accordingly, up to 119.8 thousand enterprises withdrew from the market, an increase of 17.8%. This also contributed to the unemployment rate in Vietnam to another high level of 3.22%. It is forecasted that in 2022, the COVID-19 pandemic will continue to spread complicatedly across the country. Therefore, it is an arduous journey for businesses to stay and survive in the market.

The Government's timely promulgation and implementation of Resolution No. 128/NQ-CP dated October 11, 2021, on a national scale, has made an important contribution to restoring production and promoting the market, gradually building confidence for businesses in the market.

The survey results on business trends of enterprises in the processing and manufacturing industries show that enterprises are optimistic about the situation of production and business in the first quarter of 2022 with 81.7% of enterprises assessing it to be better and more stable than the last quarter of 2021.

COVID-19, which is the biggest driving force for the economy to recover from the pandemic. With the approval of the Governments of other countries and authorities, Vietnam Airlines and Vietjet announced to reopen and restore a series of regular international routes from January 1, 2022, helping international guests come to Vietnam and the Vietnamese travel abroad more easily. This is also an opportunity for the tourism industry to have a strong recovery, thereby stimulating the development of other service industries such as accommodation, catering, wholesale and retail, etc. Simultaneously with the expansion of other forms of transport (road and rail), the connection with international trade will be more flexible for both goods and passengers. The transportation industry is also expected to have high growth again.

Optimism about a future of living with COVID-19 is entirely possible and then, tourism demand will certainly increase sharply. HSBC believes that Vietnam's economy can regain its GDP growth momentum of 6.8% in 2022.

Gemadept Group ordered 6 more Panamax STS cranes from Doosan Vina to equip the seaport system in the North

Ngày 26/01/2022 lúc 07:10

Doosan Vina will continue to supply 6 Panamax STS cranes to the seaports of Gemadept customer with the first three units signed on September 8th, 2021, and the remaining three were signed on January 20th, 2022.

VLA: solidarity, recovery and development after the COVID-19 epidemic

Ngày 20/01/2022 lúc 14:23

2021- the second consecutive year that the Vietnamese economy in general and the logistics service industry in particular have been heavily affected by the COVID-19 pandemic. Last year, as a representative agency for the logistics business community, the Vietnam Logistics Business Association (VLA) has constantly made efforts, accompanied and stood side by side with enterprises, promptly launched recommendations and solutions to help the logistics business community overcome difficulties caused by the epidemic, together aiming for the target of “Solidarity, recovery and development after the COVID-19 pandemic”.

The “metro” dream becomes closer to HCMc’s citizens

Ngày 25/06/2021 lúc 08:48

Metro Route 1 - one of the urban railway lane belonging to HCM rail system - has been almost completed when the carriages are sequentially received into the stations among all welcomed and proud cheers of the HCMC’ leaders and citizens. When this route is put into operation, this could trigger the other routes in future. Then, the dream about a modern and comfort “Metro” subway become feasible to most HCMC’s citizens…

China supply chains hit as lockdowns are rolled out

Ngày 23/03/2022 lúc 16:28

Supply chain and logistic operations out of China face further pressure over the coming weeks as a series of new lockdown measures have been put in place in Shanghai and Shenzhen.

Doosan Vina, Chung Ang University, and Community Chest of Korea donated two medical equipment packages worth nearly 1.7 billion VND

Ngày 17/03/2022 lúc 11:54

The COVID-19 pandemic has been exerting enormous pressure on health systems worldwide in general and Quang Ngai province. To contribute to sharing that burden of the health sector in the province, Doosan Vina in collaboration with Chung Ang University, Korea (CAU) and Community Chest of Korea has donated two medical equipment packages worth nearly 1.7 billion VND for two major hospitals of Quang Ngai province including Quang Ngai Provincial General Hospital, and Hospital for Women and Children.

KHT Aviation Recruitment

Ngày 11/03/2022 lúc 16:34

KHT Aviation offers some of the best employee perks, opportunities for career growth, work that positively impacts the human race and innovative culture. Working for a leading GSA company in Vietnam and in the developed air cargo industry, friendly and dynamic working environment, good chance to learn knowledge in aviation, many challenges but also many deserved achievements.