Kinhbac English

BUSINESS NEWS HEADLINES APRIL 26

05:45

Discount programmes launched by supermarkets after end of lockdown

Vegetable prices are going up in HCM City as consumption rose rapidly after social distancing was lifted.

Prices of some popular vegetables such as bitter melon, cucumber, carrot, broccoli, choysum, cucumber and squash are increasing due to adverse weather and lower supply because of the Covid-19 situation.

At markets, the price of bitter melon, tomatoes, cucumbers, zucchini is VND30,000 to VND35,000 (US$1.3-1.5), up by 10 to 20 percent compared to the previous few days.

The prices of all kinds of cabbage ranged from VND27,000 to VND30,000 ($1.1-1.3) per kg, up 5 to 10 percent compared to the previous days, and is expected to continue to increase.

Le Thanh Nhan, a director of an agricultural production cooperative in HCM City, said that the price of vegetables and fruits would continue to increase in the coming time due to farmers reducing production and to cost increases because of saltwater intrusion in rivers in Mekong Delta provinces such as Dong Thap, Ben Tre and Tien Giang.

In Tien Giang, saltwater intrusion has forced farmers to buy water from other provinces. Fearing that this would push up costs of cultivation of vegetables and cause losses, farmers stopped planting, experts said.

The situation is similar in other provinces such as An Giang and Long An, where vegetable output has fallen by 70 per cent.

Business activities and catering services will gradually recover, but supply is not ready, which will lead to shortages and temporary price increases for a short period, according to Nhan.

In face of the situation, Co.opmart supermarket systems, Co.opXtra hypermarkets, and Co.op Food stores are running promotions to May 5. They will offer 15 to 20 per cent discount for many kinds of vegetables and fruits and create favorable conditions for customers shopping at stores or via phone and Zalo and Viber apps.

Meanwhile, fashion, accessories, household and food shops at Vincom shopping malls in HCM City are offering up to 50 per cent discount programmes to stimulate consumption.

Specifically, a series of big brands such as GAP, Super Dry, CC Double O, Banana Republic, Jelly Bunny, OVS, Cotton: On, Giordano, Canifa, Boo, John Henry, Furla, Geox, LYN, Parfois, Adidas, Lining, Shooz and Vascara are offering many promotions with 30-50 per cent discount. Buy 1-get 1 free is being offered by Robins Department Store.

Enterprises urged to ‘put people first’ in HR management plans

Enterprises should “put people first” in their human resource plans as the COVID-19 pandemic is forcing companies to scale down business or even close for good, experts said at an online seminar on HR management held on Friday in HCM City.

Pham Van Viet, chairman of Viet Thang Jean Co Ltd, said the garment and textile industry, which employs a large labour force, had been hit hard by the pandemic. Many companies said their US and EU partners had stopped receiving goods for three weeks to one month.

Viet said that most workers in the industry would not be able to switch to other jobs in the current economic environment.

Maintaining employment and income for workers was not only a vital business issue but had a great impact on society, he added.

“If enterprises let workers go, where will hundreds of thousands of workers go? What will businesses do to recruit workers after the pandemic is contained? Such questions have not been answered,” he said.

Viet noted that the US and the EU were two of the most important textile export markets for Viet Nam. Half of all textile exports from HCM City went to the US, while the EU accounted for 15-18 per cent of annual exports.

“Partners in these markets have suspended receiving goods, meaning that nearly two-thirds of the market of our textiles and garments has reduced,” Viet added.

The most important issue for textile enterprises, however, is not the delivery of orders but the protection of workers, according to Viet.

To retain workers, about 50 per cent of the textile and apparel enterprises in the association have shifted to making face masks and personal protective equipment.

Tieu Yen Trinh, CEO of Talentnet, an HR consulting firm, said business disruptions like the coronavirus had affected HR management activities of businesses.

According to a recent survey conducted by Talentnet, only 12 per cent of businesses said they recorded growth in the first quarter compared to the same period last year.

“What businesses are most concerned about is how to generate enough revenue to survive and keep their employees,” Trinh said.

“Building human resource plans plays a crucial role. If a business suffers losses, operating costs should be cut first,” she said.

"For example, if the loss is 70 per cent or more, a company’s benefits can be cut," she said. "When the losses are high, the company must have flexible policies on wages, benefits and jobs for workers."

“The last solution is to temporarily lay off workers for a few months without pay.”

Wage reduction policies should be transparent and fair, starting with the salary cuts of the company leadership, Trinh noted.

In the worst scenario, shutting down a business, companies must also have budgets to deal with any related costs, she noted.

Lawyer Tran Ngoc Thich noted that employees were concerned about their physical safety as well as potential disruptions to their own work, and wanted to know how their company would manage operations.

If enterprises could not continue business, they should have clear guidelines for employees when they are told to stop working, he said.

The Government has issued Resolution 42 on measures to support people facing difficulties due to the Covid-19 pandemic, including financial support for workers, with VND1.8 million per person per month (but not exceeding three months).

But experts have said the support is not enough for workers to survive.

HR managers would play a major role in making employee management decisions as the outbreak remained a major disruption that could affect global operations for months, experts said.

It was important to plan for absenteeism until the pandemic is contained and business is back to normal, they added.

The online seminar, organised by The Saigon Times Online newspaper, was attended by lawyers, members of the business community, and various agencies.

G-bond yield rates forecast to rise on Government's increased demand for cash

Bond yield rates are forecast to increase in the short term as the Government looks at ways to support the socio-economic recovery once the coronavirus crisis abates.

The State Treasury of Vietnam this week raised a total of nearly VND1.3 trillion (US$55.3 million) from G-bonds.

A total of VND3.5 trillion was offered for sale with terms of 10, 15 and 20 years.

The bonds were sold at annual interest rates of 2.38 per cent (10 year), 2.73 per cent (15 year), and 3.1 per cent (20 year).

The rates increased by 0.1 percentage point each from the previous week.

G-bond interest rates for all terms have gained slightly since the beginning of March.

Interest rates were expected to keep growing as the Government needed more money to finance its socio-economic development activities and support businesses and people hit by the disease, according to MB Securities Co (MBS).

“The demand for money will push the Government to raise bond yield rates to attract more investors,” MBS said in a report. “If the rates are not improved, the ratio of sold-out bids will remain low.”

G-bond interest rates for 10-year and 15-year bonds hit record lows of 2.18 per cent and 2.51 per cent per annum in March. The ratio of sold bonds in March was equal to only 6 per cent of the offered amount.

The State Treasury has raised a total of VND34.8 trillion from G-bonds since the beginning of the year, and expects a total of VND300 trillion to be sold by year-end.

In the first three months, a total of nearly VND33 trillion was raised, equal to 60 per cent of the plan. The rate was lower than the 94.5 per cent recorded in the first quarter of 2019 and the 82.2 per cent posted in the fourth quarter of 2019.

Nguyen Duc Hung Linh, director of Retail Research and Investment Advisory, Retail Brokerage at SSI Securities Corp, said the interest rates for all terms had declined too much and the issuer was focused mainly on long-term bonds such as 20-year and 30-year terms.

“The terms are too long for commercial banks, which are major buyers,” Linh said.

G-bonds would remain attractive to investors, but in the short term the development of COVID-19 and its impacts on global socio-economic conditions were the biggest variables, Linh said.

“Such variables will have severe effects on the banking-financial system, cash liquidity and foreign exchange rates,” he said.

COVID-19 would reach its peak in the second quarter and economic activities would remain stagnant, Linh forecast.

“That would force the Government to look for funding resources from the State budget and G-bonds, which will curb cash liquidity in the banking system and hike bond rates.”

G-bond yield rates forecast to rise on Government's increased demand for cash