KTFA:  Vietnam

Henig:  Vietnamese banking brands climb in value

February, 27/2023 - 09:18

Vietnamese banks showed great performance in 2022, consolidated by a credit growth rate of nearly 13 per cent and an economic growth rate of 8 per cent, the highest in the last 25 years.

HÀ NỘI — Vietnamese banking brands are riding high with a growth of 31.3 per cent in brand value in 2023, according to Brand Finance Banking 500 Report.

Almost all the 12 Vietnamese banks featured in the report have climbed in their global rankings. However, Agribank – the second most valuable brand in Việt Nam – runs counter to the trend by dropping two positions. Its brand value grew by just 1.7 per cent to hit $1.4 billion. 

Meanwhile, VIB enters the top 500 most valuable banking brands for the first time, with a brand value increase of 14 per cent year-on-year, reaching $181 million.

The report said Vietnamese banks showed great performance in 2022, consolidated by a credit growth rate of nearly 13 per cent and an economic growth rate of 8 per cent, the highest in the last 25 years.

It was this strong revenue rebound and economic recovery that has given a big push to Vietnamese banking brand value. 

Alex Haigh, managing director of Brand Finance Asia Pacific, remarked that Vietnamese banks are making headway in digital banking by integrating the power of technology into their core business. 

"Vietnamese banks were finding themselves among the best performers in 2022," said Haigh. 

The director was impressed by Techcombank, the second fastest-growing brand in Việt Nam, which rose by 46.7 per cent in brand value to reach $1.5 billion. In two years, the bank moved up by 107 positions to the 163rd among the top 200 valuable banking brands in 2023. 

Thái Minh Diễm Tú, director of the Marketing Divison, Techcombank, noted that the remarkable feat of reaching $1.5 billion in brand value represents an important milestone for the bank.

It is an indication that Techcombank has achieved success in improving customer experience, moving one step closer toward its ultimate objective of "Transforming the financial sector and improving the quality of life".   

It is worth noting that the bank made it to many global podiums in 2022 for its effort in digital transformation. Notably, it was recognised as 'Best bank in Việt Nam' by Euro Money and its application Techcombank Mobile was awarded 'Most innovative mobile banking app' by Global Business Outlook.

The bank is currently the first bank in Việt Nam to be assigned a Baseline Credit Assessment score of ba2 with a stable outlook by Moody's. It also gets a rating of BB- from S&P with a similar outlook. 

By late 20222, Techcombank made a pre-tax profit of around VNĐ25.6 trillion ($1.1 billion) and secured a customer base of over 10.8 million.

— VNS    LINK

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Henig:  Bình Dương promotes cashless payment trend

February, 27/2023 - 09:04

The People's Committee of Bình Dương Province’s Dầu Tiếng District plans to establish a pilot project that uses cashless payments at traditional markets, grocery stores and other businesses.

BÌNH DƯƠNG — The People's Committee of Bình Dương Province’s Dầu Tiếng District plans to establish a pilot project that uses cashless payments at traditional markets, grocery stores and other businesses.

Dầu Tiếng is located at between HCM City and the provinces of Tây Ninh and Bình Phước and has Dầu Tiếng Lake, a place that attracts many tourists.

The plan of Dầu Tiếng District aims to promote the implementation of digital transformation and digital payment, and promote local businesses and enterprises to use digital platforms to make non-cash payments, which would provide convenience in payment for tourists.

Non-cash payment methods include QR code, internet Banking, Mobile Web Payment and cards.

By the end of 2022, Bình Dương strived to achieve 50 per cent of schools, educational institutions, hospitals and medical facilities using non-cash payment methods.

Up to now, Bình Dương is one of the localities where consumers can use modern payment methods to pay for online transactions as well as at stores, schools, hospitals, administrative services and shopping centers.

Cashless payment and transaction channels are increasingly popular in Bình Dương, with commercial banks, e-wallets and fintech companies promoting the application of technology for online payments.

Many customers now choose cashless payments, the most popular being a payment card, followed by scanning a QR code and transferring money.

Card payment sales at many goods and service suppliers have also increased significantly. Commercial banks and e-wallet companies in Bình Dương said that cashless transactions are even more popular now than during the COVID-19 pandemic.

Enterprises are ready for infrastructure with low investment costs that bring convenience to people. The outstanding method that meets the above factors and is likely to explode next year is paying via QR codes.

Customers can open banking applications or e-wallets to choose a source of money to scan the code and make payments.

— VNS   LINK

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Henig:  Rice exporters to benefit from tight supplies, lower costs

February, 27/2023 - 08:17

Việt Nam is very likely to benefit from the upward trend in rice prices which is fueled by limited supplies and a shift away from the Indian supply.

HÀ NỘI — Decreasing input costs as Europe eases sanctions against Russia and increased fertiliser supply will benefit rice export businesses, said Vietcombank Securities Company (VCBS).

A recent report on the rice sector from VCBS showed that the global rice output is estimated at 519.7 million tonnes at the end of the 2021/2022 crop. China, India, and ASEAN are key consumption markets, while India, Việt Nam, and Thailand are the largest rice exporters.

Rice prices witnessed an uptrend in global markets last year as the Indian government's ban on rice export, floods in Pakistan, and adverse weather in China and the Philippines caused reductions in rice output in these countries.

While depleted inventories in the Philippines will result in higher imports in 2023, rice production will drop due to prolonged droughts in China and India. On the other hand, due to heavy rain in Việt Nam over the past year and gradually neutral weather in the first half of 2023, the country's rice output is forecast to be stable this year, according to the US Department of Agriculture (USDA).

Therefore, VCBS said that Việt Nam is very likely to benefit from the upward trend in rice prices which is fueled by limited supplies and a shift away from the Indian supply. 

Meanwhile, input costs are also expected to go down in 2023 as Europe eases sanctions and welcomes back Russian fertiliser exporters, increases reservations, and aggressively reduces gas consumption.  

The availability of fertiliser on a global scale is anticipated to rise, boosting rice industry profit margins.

According to VCBS, the business growth prospects of Lộc Trời Group are positive thanks to the promotion of rice exports to the European market, starting with the French market. The merger with Lộc Nhân Food also increased the company's capacity. 

With three production facilities under its control, Lộc Nhân can now dry more than 12,000 tonnes of rice per day and export 6,000 tonnes of rice a day. Its projected revenue for 2022 was close to VND8 trillion ($336.8 million).

This company also has a wide partner network. In particular, it has signed contracts to supply up to 350,000 tonnes of rice to Vinafood 1 in 2023. 

VCBS said that the food segment will be the main growth driver for Lộc Trời this year, making up for the decrease in revenue in the pesticide sector. However, it noted that the company still struggles with the plan for issuing private placement bonds and transferring from the current listing exchange - UPCoM - to the Hồ Chí Minh Stock Exchange (HoSE).

The securities firm expects that Lộc Trời's net revenue and profit after tax will grow by 28 per cent and 15 per cent year-on-year, respectively, this year to VNĐ14.9 trillion and VNĐ475 billion. The growth for 2024 is projected to advance 1 per cent in revenue but fall by 17 per cent in profit.

Meanwhile, Vietnam National Seeds Group posted a positive growth in business results in 2022, mainly boosted by the rice segment, with a gross profit margin of about 40 per cent. 

VCBS believes that the company's rice and fruit crops will grow well in the next five years. 

In the national key product development project, the government plans to increase the rate of high-tech cultivation from 70 per cent to 75 per cent, the rate of using certified varieties from 78 per cent to 90 per cent, the area of ​​fruit trees from 1,067 million ha to 1.2 million ha, and the yield from 10 tonnes/ha to 12 tonnes/ha.

Vietnam National Seeds also has an ambitious business plan to double its size in the next five years, with an annual growth rate of approximately 20 per cent/year. 

By doing so, the market share of plant varieties across all fields can rise from 21 per cent to 25 per cent of the entire nation. The market shares will rise to nearly 60 per cent of the national market, particularly for grain corn.

It is forecast that the company's net revenue and profit after tax will rise by 11 per cent and 25 per cent on-year, respectively, this year, to more than VNĐ2.09 trillion and VNĐ282 billion. 

— VNS    LINK

Henig:  Real estate market to recover by Q3: experts

February, 27/2023 - 08:59

With the Government’s drastic measures to address problems related to legal bottlenecks, lack of capital access, and challenges in corporate bonds, the real estate market is expected to recover from the third quarter, experts have said.

HCM CITY — With the Government’s drastic measures to address problems related to legal bottlenecks, lack of capital access, and challenges in corporate bonds, the real estate market is expected to recover from the third quarter, experts have said.

Experts have also called for continuing market restructuring by diversifying products, especially affordable housing, and addressing the mismatch between supply and demand.

Speaking at a talk on how to remove challenges in the real estate market last Saturday, Prof Dr Trần Đình Thiên, a member of the Prime Minister’s Economic Advisory Group, said the real estate market was facing serious problems such as a lack of capital access, credit tightening, and legal bottlenecks.

The market has faced unprecedented hurdles in the past five years with a huge inventory and a sharp drop in liquidity, he added.

It has seen a significant imbalance between supply and demand with an oversupply in the high-end segment but a shortage of affordable housing products, he said. 

Fortunately, the market would have positive signals based on Việt Nam’s economic prospects in 2023, he added.

He attributed to the promulgation and amendment of the three laws related to the real estate market, including the Law on Land, the Law on Housing, and the Law on Real Estate Business.

“The key is to remove the legal and capital bottlenecks, including real estate corporate bonds,” he noted.

It’s good that the Prime Minister has already issued four directives to remove difficulties for the economy, especially the real estate market, according to Thiên. 

Dr. Cấn Văn Lực, a member of the National Monetary and Financial Policy Advisory Council, said the Government has focused on improving mechanisms and policies (both short- and medium-term) related to the real estate market, aiming at improving the cash flow, which is important to regain the confidence in the market.

Removing roadblocks for the corporate bond market is also important to unlock capital sources, Lực said.

“The decree amending Decree 65 issued in September 2022 on corporate bonds is being urgently revised, which is expected to remove difficulties for the corporate bond market.” 

The Government has also taken measures such as rescheduling, deferring debt, tax, and land rent for real estate businesses, he added.

The Ministry of Construction has recently proposed a credit package worth around VNĐ110 trillion (US$4.6 billion) similar to the VNĐ30 trillion package implemented in the 2013-16 period to finance social housing projects and housing projects for workers, he said.

Dr. Nguyễn Văn Đính, vice chairman of the Vietnam Real Estate Association, said: “The real estate market will become warmer by the third quarter of 2023 as the government has made drastic moves to create conditions to help the market develop sustainably.”

The government has also established a working group to propose solutions with ministries and local authorities, and will review and work with localities, projects, and investors to remove bottlenecks, he added.

Speaking at a recent meeting, economist Võ Trí Thành said there remained high hopes this year for the real estate market, especially in segments of real estate tourism, industrial parks, and retail, following drastic actions of the Government. 

Once the Land Law and Law on Real Estate Business are finalised, they would provide opportunities for investors to come back to the market, he added.

Experts also recommended the Ministry of Finance implement measures to develop the corporate bond market transparently, safely and sustainably. 

The event aimed to discuss ways to address challenges in the real estate market and promote its sustainable development.

— VNS  LINK

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Henig:  Poland seeks to promote exports of food products to VN

February, 27/2023 - 09:05

Việt Nam and Poland both grow a lot of agricultural products, but they are complementary to each other, offering them the opportunity to tie up, a bilateral business matching heard in HCM City on February 24.

HCM CITY — Việt Nam and Poland both grow a lot of agricultural products, but they are complementary to each other, offering them the opportunity to tie up, a bilateral business matching heard in HCM City on February 24.

Nguyễn Hữu Nam, deputy director of the VCCI in HCM City, said: “Poland has high demand for Vietnamese products such as rice, basa fish, shrimp, mango, pineapple, passion fruit, coffee, and cashew, while Poland is capable of supplying Việt Nam with various EU-standard fresh and processed foods and fruits, beef, lamb, pork and others.”

Their trade and investment relations have made solid progress, but are still not commensurate with their traditional friendship and potential, partly due to the lack of information about each other's markets, he said.

Alexander Nowakowski, second secretary of Economic Affairs at the Polish embassy in Việt Nam, speaking at a press briefing held before the meeting, said after COVID many business delegations have come to each other markets to seek co-operation opportunities.

The EU-Việt Nam Free Trade Agreement has also helped boost trade ties between the two countries.

Poland’s Deputy Minister of Agriculture and Rural Development Lech Kołakowski told the press briefing that his country is one of largest producers of food products such as pork, beef, chicken, fruits and vegetables, and dairy products in Europe, and exports them to more than 200 markets.

“Poland’s foods not only have high quality, but are also are absolutely safe.”

The Government of Poland is paying great attention to expanding export portfolios to Việt Nam, he said, adding that his ministry is now working with its Vietnamese counterpart for finalising procedures to allow Polish exporters of beef, goose and duck access to the Southeast Asian country.

He hoped that beef, duck, goose meat from his country would soon be available in Việt Nam.

At a meeting with the Ministry of Agriculture and Rural Development in Hà Nội on February 23, he asked that Việt Nam should also open up Polish barley and wheat, he said.

He said the agricultural products of the two countries do not compete with each other.

Việt Nam could become an important destination for the distribution of Polish agri-food products to the Asian region, and Poland is ready to do the same for Vietnamese products headed Europe, he said.

Executives from 70 Vietnamese food companies and eight Polish companies met and exchanged information to seek business opportunities at the business matching.

— VNS    LINK