Finance

By Joe Fotalattee

According to Ho Chi Minh City Social Insurance statistics, businesses in the city reported a decrease of more than 34,000 people in the first two months of the year. More than 16,300 people applied for unemployment benefits during this time, according to data from the City Employment Service Center. More than 500,000 people are anticipated to need to find employment in 2023.

The number of people enrolled in social insurance will decline at the start of the year, according to Mr. Tran Dung Ha, Deputy Director of Ho Chi Minh City Social Insurance, because workers returning to their hometowns did not stay in the city. But this year, there are more factors influencing the state of the global economy. As a result, businesses face challenges and have to cut back on both labor and production. By the end of January, more than 1,300 businesses in the entire city had been dissolved, declared bankrupt, or ceased operations.

Nguyen Van Lam, the deputy director of the city’s department of labor, invalids, and social affairs, determined that the labor market in the city is still favorable. Orders have fallen, particularly in the processing sector, which includes the production of wood, footwear, and textiles. However, based on the survey, the associations predict that orders from June to July will gradually stabilize.

Phan Thi Thanh Xuan, vice president of the Vietnam Leather, Footwear and Handbag Association (Lefaso), told VnExpress that the industry as a whole employs 1.5 million people across more than 2,000 businesses. Orders in the sector are currently still down by 30%. Therefore, factories must undoubtedly cut back on labor if they want to lower costs and meet the demand for the product. When orders pick up again, this will result in a labor shortage for businesses.

Nearly 547,000 employees … Read more

Opinion by Joe Fotalatte

Despite positive outlooks in the local press on tourism, real estate, stock markets, and other struggling industries, a Hanoi Times article is calling for Vietnam to have a regulatory framework regarding cryptocurrencies. Surprisingly, the author is the Founder of RMIT FinTech-Crypto Hub, Pham Nguyen Anh Huy, Senior Lecturer in Finance at RMIT University Vietnam.

The article noted that exchanges like Binance or Remitano operate freely in Vietnam without a financial services provider license, and investors who profit from cryptocurrency do not pay taxes on their capital gains. In contrast, cryptocurrency exchange providers in Singapore and soon Hong Kong must pass a rigorous licensing process.

The author concluded many cryptocurrency projects, particularly GameFi, Move to Earn, Metaverse, and Web3, were introduced in the unregulated setting, which he claims boosted national innovation and propelled the digital economy.

However, Huy says, the absence of a regulatory framework has resulted in negative aspects, including a volatile business environment, unprotected investors in scams, difficulty in tracking fraudulent and criminal activities such as money laundering, and the inability of tax authorities to collect taxes.

Regardless of the self-promotion, the call for regulation from an industry insider was a breath of fresh air because the local press has been irresponsible on the issue, and the average Joe is left holding the bag in any Ponzi scheme scam.

by Joe Fotalattee

On January 16, Nguyen Van Quang, a member of the Party Central Committee, hosted in Da Nang delegations from the consulates general of China, Japan, Laos, and the Russian Federation.

In attendance at the meeting were the consul generals of the various nations, who sent greetings for the Lunar New Year of 2023 to the secretary of the city party committee and the city’s authorities. Consuls from other nations expressed their appreciation and congratulations for Da Nang’s socioeconomic recovery and development in 2022.

Consul Generals from China, Japan, Laos, and the Russian Federation declared that they would continue to promote bilateral cooperation in the future, fostering connections between Da Nang and regions and units of other nations.

Nguyen Van Quang, the secretary of the Da Nang City Party Committee, praised the accomplishments of the socioeconomic development of China, Japan, Laos, and the Russian Federation.

Da Nang city, in particular, has many advantages in luring investment, including an abundance of human resources, numerous preferential policies, industrial parks, and high-tech parks.

According to VNA, leaders of Danang are dedicated to continuously fostering a favorable environment, streamlining administrative processes, and encouraging support for foreigners and businesses operating in and around Da Nang.