Monday "Vietnam News" Posted by Henig at KTFA 2-20--2023
KTFA: Vietnam
Henig: MOF considers allowing businesses to pay bond interest in shares, realty products
February, 20/2023 - 07:34
The Ministry of Finance has proposed that the Government consider allowing enterprises to pay principal and interest of bonds in shares and real estate products.
HÀ NỘI - The Ministry of Finance has proposed that the Government consider allowing enterprises to pay principal and interest on bonds in shares and real estate products.
The Ministry of Finance (MoF) has just submitted to the Government a draft decree on trading private placement of corporate bonds in the domestic market and offering bonds to international markets.
The decree amends and supplements a number of articles of Decree 65 that amends and supplements Decree 153/2020/NĐ-CP.
Recently, some businesses, especially in the real estate group, have had difficulty paying their debt obligations due in 2023. They had to negotiate with bondholders to pay bond principal and interest with shares, or real estate products.
The Ministry of Finance proposed that the Government consider allowing the cases. If an enterprise cannot pay the bond principal and interest in cash, they can negotiate with investors to pay by other assets on the principle of complying with the provisions of civil law. This payment method must be approved by the bondholders and the enterprise must disclose information and take responsibility for the legal status of the assets used to pay the principal and interest of the bond.
To assist enterprises in mobilising capital for production and business activities and debt restructuring, the Ministry of Finance shall propose to the Government to allow previously issued bonds with an outstanding balance to be changed in expiration term, the maximum time is 2 years.
VNS LINK
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Henig: VN firms told to focus on social, environmental performance to enter German market
February, 20/2023 - 07:25
Vietnamese enterprises need to improve their social and environmental performance to secure their position in global supply chains, a seminar heard in HCM City last week.
HCM CITY — Vietnamese enterprises need to improve their social and environmental performance to secure their position in global supply chains, a seminar heard in HCM City last week.
Nguyễn Ngọc Sang, project manager of the German Business Incubator at the Delegation of German Industry and Commerce in Việt Nam (AHK Vietnam), said in recent years Việt Nam had been a popular investment destination for many countries, especially Germany.
AHK Vietnam was receiving increasing requests from German companies to find suppliers in Việt Nam, he said while speaking at the seminar on enhancing Vietnamese companies’ competitiveness in global supply chains through compliance with the German Supply Chain Due Diligence Act.
With its geographical location, Việt Nam is considered the gateway to Southeast Asia, a rapidly growing and dynamic region, according to Sang.
It is attractive to investors thanks to its low labour costs, high labour compliance, strong growth for many years, and open mechanism for attracting investment.
It has signed many trade deals, including the EU-Việt Nam Free Trade Agreement, which gets much attention from European investors, including German, and enterprises seeking to diversify their supply chains also prefer the country.
According to Nguyễn Tuấn, deputy director of the Investment and Trade Promotion Centre of HCM City (ITPC), said trade and investment ties between Việt Nam and the EU, especially Germany, have seen robust growth in recent years.
Germany is Việt Nam's largest trading partner in Europe, accounting for more than 19 per cent of its exports and acting as the gateway for Vietnamese goods to enter other European markets.
While productivity and quality standards remain key factors, international business partners are increasingly looking at social and environmental conditions when choosing suppliers.
To ensure exports to demanding markets, Vietnamese enterprises must comply with stringent regulations like the German Supply Chain Due Diligence Act (LkSG).
Lanh Huyền Như, project coordinator for Sustainable and Climate Resilient Supply Chains at AHK Vietnam, said the act, which came into effect in January this year, sought among other things to prevent child and forced labour and ban substances that are hazardous to people and the environment.
"The law requires German companies to establish appropriate and effective risk management for their supply chains and integrate it into all relevant business processes," she said.
Companies in Việt Nam could be indirectly affected by these regulations if they are part of a supply chain of a German company.
According to experts, while due diligence in supply chains and the resulting obligations are not new, these standards are becoming even more relevant, requiring more initiatives from businesses.
Understanding and putting these requirements into practice would lower risks and strengthen their competitiveness in the global supply chain, they said.
The seminar was held by ITPC and AHK Vietnam.
— VNS LINK
Henig: Pellets, chips to remain export growth drivers for wood industry in 2023
February, 20/2023 - 08:24
The wood processing industry has set itself a modest export target of US$17.5 billion for this year, an increase of just 2.5 per cent over 2022, due to unfavourable conditions in the global market, the Vietnam Timber and Forest Product Association said.
HCM CITY — The wood processing industry has set itself a modest export target of US$17.5 billion for this year, an increase of just 2.5 per cent over 2022, due to unfavourable conditions in the global market, the Vietnam Timber and Forest Product Association said.
Exports were worth US$16.9 billion last year, up 6.1 per cent from 2021, the lowest growth rate in recent years.
VIFOREST chairman Đỗ Xuân Lập said exports had been strong in the first half of last year, but orders had dropped sharply thereafter, and companies had gotten just a few orders this year.
“In the past exports would usually go up by 15-20 per cent in January, but there was no growth this year.”
The gloomy housing market due to monetary tightening and interest rate hikes globally to fight inflation had affected demand for furniture, he explained.
The industry has two main export product groups: highly processed products like furniture and intermediate goods like plywood, woodchips, lumber, joint board, and wood pellets, according to Lập.
Export of the second group rose strongly last year, with pellet and chip exports rising by 50-60 per cent and 35 per cent, and this product group is expected to again be the major export growth driver this year.
He also forecast furniture exports to gradually increase this year.
“Việt Nam’s furniture products are mainly exported to the US and European markets. Their economies will warm up, inflation is decreasing, and so demand for furniture will rise.”
The wood industry associations across the country were helping firms look for new customers, including by organising the Hồ Chí Minh Export Furniture Fair (HawaExpo 2023) from February 22 to 25, he said.
Nguyễn Quốc Khanh, chairman of the Handicraft and Wood Industry Association of HCM City and chairman of AA Corporation, said firms continued to export furniture to traditional markets such as the US, EU, Japan, and Korea but needed to expand to other markets too, he said.
Many of China’s traditional customers has shifted their orders to Việt Nam, which is a great opportunity, he said.
Khanh said AA Corporation, which provides custom furniture to luxury hotels and resorts world-wide, had got an order from a large hotel in Tel Aviv, Israel, the first order from this market.
Dương Minh Tuệ, sales director of Minh Dương Furniture Corporation, said her company had got many customers from the Middle East recently.
Customers there used to prefer classical designs or those reflecting their Islamic beliefs, and so Malaysian products were very popular there though also for their competitive prices, he said.
“The tastes of consumers there have changed. Younger generations accept higher prices and new designs. They come to Việt Nam to find products with nice designs and made from more expensive materials.
“The Middle East economy enjoys steady growth. Demand, especially among young customers, is very high. It is a market that Vietnamese enterprises should pay attention to.”
— VNS LINK
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Henig: 5th denim, jeans exhibition to open in HCM City
February, 20/2023 - 08:33
The fifth edition of the Denimsandjeans.com Việt Nam exhibition with a theme of YOGIM will open in HCM City from March 1 to 2, with the participation of many big denim manufacturers from more than 10 countries.
HCM CITY — The fifth edition of the Denimsandjeans.com Việt Nam exhibition with a theme of YOGIM (Yoga and Denim) will open in HCM City from March 1 to 2, with the participation of many big denim manufacturers from more than 10 countries.
The two-day expo will take place at the Riverside Palace in District 4.
The expo, organised by the Việt Nam Textile and Apparel Association (VITAS) and Balaji Enterprises of India, will showcase the latest fashion trends and innovations in the global denim industry.
The event will be quite attractive to retailers, fashion brands and textile companies from around the world, especially from the EU and the US.
It will offer a good opportunity for exhibitors to seek and establish partnerships.
It is expected to attract about 35 exhibitors and 1,200 visitors.
A YOGIM show will be held on the afternoon of March 1.
The highlight of the expo will be a “DENIM BAZAAR” area where Vietnamese fashion brands will display their innovative denim products, including recycled denim.
Six seminars will be held on the sidelines of the event, with discussions of international experts focusing on the future of denim supply, the denim supply chain for sustainable development, breakthroughs in the denim fabric industry with the help of innovative AI-based solutions, and the latest innovations in laundry chemistry.
Việt Nam has become one of the leading destinations for investors interested in the textile and garment industry.
The country exports more than 65 million pieces of denim every year.
— VNS LINK