RISK MEASUREMENT:

1. The Severity of Risk:

- Impact on unemployment and underemployment:
The ILO estimates indicate that unemployment and underemployment in the
hospitality industry increased continuously during the course of the covid-19
pandemic. The covid-19 pandemic has been going on for 4 months and the whole
system of Vinpearl Luxury Landmark 81 had to temporarily close down, following
the general directive of Ho Chi Minh City, this is a direct serious challenge to the
work of all levels, the jobs of the whole people.
The prospect of economic recovery as well as the restoration of the quantity and
quality of employees and job training is on the verge of danger for not only the
chairman of Vinpearl Luxury Landmark 81 but also a great pressure for other
businesses, other high-level divisions of the company.
According to preliminary estimates of the global unemployment rate of workers
increased by 13 million by the ILO (of which 7.4 million are in high-income
countries), although this number is not really certain, but the above rate has made
an average of 22 million people unemployed, seriously affecting the global
economy of Vietnam. This proves that the impact of the pandemic is really serious
on the work of employees from low to high level[CITATION Int20 \l 1066 ].
 Figure: Simulated data, unemployment rate forecast based on GDP growth
scenario proposed by McKibbin and Fernando (2020).
- Impact on labor income at all levels:
The unemployment and underemployment situation in the covid-19 epidemic will
become a great shock for whole workers at all levels, this situation is likely to turn
to adjustments in the direction of directors having to reduce or cut wages of all
workers and cut the hour working of them due to the economic downturn (the case
occurred in the early days of the covid-19 pandemic, the time when employees
were restricted from coming to the hotel to operate). Limiting the movement of
people and freight can cause people's general income to be obstructed and
restrained, leading to their low input income but high output costs, quitely large to
the existence of the people.
To ensure the safety of the hotel's staff in terms of quantity and quality, force them
to stay at home, comply with the government's anti-covid-19 directive, and limit
the exposure of the disease to their health. The hotel advocates partial subsidies for
all employees at all levels. In addition, employees must live and operate on official
state subsidies. Such partial support is still a burden for employees, leading to non-
existent input income, resulting in a higher-than-normal payment of output costs.
- Impact on the flow of domestic and foreign guests:
80% of guests staying at Vinpearl Luxury Landmark 81 are foreign guests, the
remaining 20% are domestic guests. In 2020, international visitors travel to
Vietnam only reached 3.7 million arrivals, down 80% compared to 2019, domestic
tourists are estimated at 56 million arrivals, down 34% compared to 2019, and the
total tourism revenue for the whole year in 2020 of Vinpearl Luxury Landmark 81
significantly reduced by 59% compared to 2019 [ CITATION Vin20 \l 1066 ].
In 2021, the introduction of the Covid-19 vaccine has restored part of the domestic
and foreign tourist traffic. Most organizations around the world forecast that the
growth of the economy will return in 2021 from 6% to 7% compared to 2020.
According to the Government's approved scheme, after Vietnam takes control the
covid-19 epidemic and the hotel's return to tourism activities, Vinpearl Luxury
Landmark 81 quickly rejoined the key economy and caught up with the industry's
growth. Vinpearl Group quickly put into operation a comprehensive hotel
management system developed exclusively by VinHMS, in line with Vinpearl's
business characteristics [ CITATION Vin20 \l 1066 ].
- Hotel businesses may close permanently if the epidemic situation persists:
All businesses operating in Vinpearl Luxury Landmark 81 have to stop operating
for a while, leading to a serious threat to the hotel in terms of revenue, passive
hotels in terms of affordability, ground payment and other surcharges, sales
plummeted and could not be recovered after the order travel bans, border closures
and at the same time hotels had to face with strict quarantine measures, workers
cannot permission to move to the workplace. In this general environment, hotels
are forced to delay all investments, purchase goods and hire workers.
The covid-19 epidemic will have a serious impact on the output of the labor
market, causing the risk of a sudden decline in the background hotel's
comprehensive economy. Thus, the risk to Vinpearl Luxury Landmark 81 is very
serious.
2. Frequency of occurrence of risks:
- There are two major difficulties for Vinpearl Luxury Landmark 81 come
from internally and in cooperation with other stakeholders:
- Internally: on human resource management and corporate culture building:
Not being able to retain all the potential inherent human resources of the hotel, not
having enough funding to support all employees in the human resources
department. After the epidemic period gradually decreased, returning to the policy
of living "The New Normal", it will take a long time for the hotel to train and re-
select potential employees for the hotel.
- Cooperation with other stakeholders: Most of the companies and agents that
accompany them gradually cancel their support contracts or are unable to renew
them further, so Vinpearl Luxury Landmark 81 falls into a state of rather large
loss. After the prolonged covid-19 pandemic, the percentage calling for investors
or long-term investors for the hotel is still a risk that is not easy to face, as the
overall economy around the world is severely reduced, It takes a long time to
recover and grow.
- In addition, shopping and entertainment activities affiliated to the hotel were
closed in turn, the number of guests coming to stay decreased sharply during the
covid-19 pandemic and the rate of guests returning after the policy of living “The
New Normal” is extremely low, quite seriously affecting the recovery of operation
of Vinpearl Luxury Landmark 81 hotel.
- Thus, the frequency of occurrence of risks is 30% on average due to the
general situation of the world in 2021 enters the biggest covid-19 pandemic ever,
every business can't seem to avoid or prevent long-term.
REFERENCE LIST:

International Labor Organization. (2020). Covid-19 and Jobs: Impact and

Response. Ho Chi Minh City: https://www.ilo.org/wcmsp5/groups/public/---
asia/---ro-bangkok/---ilo-hanoi/documents/briefingnote/wcms_740946.pdf.
Vinpearl Luxury Landmark 81. (2020). Annual Report 2020. Ho Chi Minh City:
https://storage.googleapis.com/vinpearl-data-01/2021%2004%2009_BCTN
%20Vinpearl%202020%20Final.PDF.