- News in Vietnam
- 27 September 2021
Worry about foreign capital leaving if Ho Chi Minh City extends the distance
After 30 years of prosperous Vietnam attracting a lot of FDI, this epidemic season makes many business leaders very worried when foreign capital flows may leave if the distance is prolonged.
The representative of Intel Vietnam hopes that Ho Chi Minh City will stop the distance after September 15 and raised concerns that if this measure is prolonged, FDI inflows will leave. The above opinion was expressed by Ms. Ho Thi Thu Uyen – Director of External Relations of Intel Vietnam, at a meeting between FDI enterprises and associations with Ho Chi Minh City leaders on the morning of August 20.
However, maintaining production has caused businesses to incur high costs. The cost arising from ensuring epidemic prevention from July 15 to August 15 is about 140 billion VND. By September 15, that number could double.
This meeting took place in the context that Ho Chi Minh City has to implement social distancing with increasing tightening to prevent the epidemic. Many businesses’ production and business activities have stalled workers face many difficulties, including the FDI sector.
With the same opinion, Jabil Vietnam Company said that many partners had moved orders to other countries such as China and Singapore when Jabil Vietnam could not meet the schedule. If the situation continues, the company will have to reduce its operations in Vietnam.
Compared to other Asian economies – including the Delta epidemic-Vietnam is closing businesses for a lot longer. Suppliers of American companies in China can resume operations after 7-10 days with a strict and scientific process. According to the instructions of some localities in Vietnam today, this process takes twice as long, from 2 to 3 weeks. Some southern localities currently do not have procedures or instructions for businesses.
If workers are fully vaccinated in green areas, Intel hopes Ho Chi Minh City will allow businesses to pilot “two on-site.” The company will give employees a commitment to comply with epidemic prevention rules. The company will arrange a shuttle bus, not allowing personal vehicles.
The “green road” and “two on-site” are long-term, cost-effective solutions for businesses and help workers face psychological obstacles when they arrive at the production site, entirely in line with the Department of Agriculture and Rural Development plan. Industry and Trade submitted to the leaders of Ho Chi Minh City”, Ms. Uyen emphasized.
In addition, Intel proposed to the Ministry of Labor and the Ho Chi Minh City government to allow enterprises to increase employees’ working hours by 100 hours. This helps to increase productivity and improve order delays.