Some "Vietnam News" Posted by Henig at KTFA Tuesday 2-14-2023

KTFA:  Vietnam

Henig:  EVFTA ensures fair competition, subsidies

06:00 | 14/02/2023

(VEN) - Senior Vietnamese and European officials held a recent assessment of the initial two-year implementation of the EU-Vietnam Free Trade Agreement (EVFTA) at a meeting chaired by Minister of Industry and Trade Nguyen Hong Dien and European Commissioner for Trade Valdis Dombrovskis. Both acknowledged the efforts made by their respective monitoring agencies and enterprises in taking advantage of the trade deal’s many opportunities.

One of the most significant chapters of this new-generation agreement concerns the importance of fair competition policy to ensure a more efficient allocation of scarce public or private resources. Rules on competition are not about increasing market access per se, but rather about ensuring appropriate conditions which will enable market access to become effective and translate into real business opportunities.

European officials have made clear that anticompetitive behavior and certain subsidies are not the traditional tariff barriers to trade but can be important behind-the-border barriers. The EU is particularly interested in ensuring a level playing field for European and Vietnamese companies and avoiding trade benefits stemming from the FTA being neutralized by anti-competitive practices.

When properly designed, competition related issues are inherently pro-development, since it is developing countries whose companies and consumers are the most vulnerable victims of anti-competitive practices. Moreover, it will be easier for Vietnam to attract foreign companies if these can be reassured that basic competition laws will be respected.

The EU and Vietnam have agreed to a section on antitrust and mergers (anticompetitive conducts), including the obligation to maintain competition laws and relevant authorities and to apply the laws in a transparent and non-discriminatory manner. This means that companies operating in Vietnam should respect the same basic competition principles as in Europe, i.e., no abuse of a dominant position and no agreements between enterprises that restrict competition and scrutiny of the competitive effects of a merger.

Subsidy rules

At the same time, companies are assured that their rights in the competition procedures will be respected (procedural fairness) and that they can turn to the Vietnamese competition authorities to ask them to ensure an efficient competitive environment. Companies can receive subsidies for well-defined public policy objectives, such as research and development, training and regional development. However, the FTA acknowledges that certain kinds of subsidies can hinder competition and trade. Therefore, rules limit the potential negative effects of the subsidies. These cover transparency, consultations and some of the most distortive types of subsidies, which are made subject to specific conditions.

The EVFTA sets an illustrative list of such public objectives, including practices involving a direct transfer of funds, potential direct transfer of funds or liabilities; revenue that is otherwise due is foregone or not collected; providing goods or services other than general infrastructure, or purchase goods; making payments to funding mechanism, or entrusting or directing a private body to carry out one or more type of functions regulated; and any form of income or price support in the sense of exemption of non-discrimination principle in Article XVI of the 1994 General Agreement on Tariffs and Trade (GATT 1994).

Vietnam has agreed to notify not only of subsidies to goods but also subsidies to services. This goes well beyond the existing World Trade Organization (WTO) rules. As a result, at least every four years both sides will notify or make public the subsidies granted to companies in selected services sectors, which are important from market access point of view such as telecommunications, banking, transport and energy.

If a party considers that specific subsides granted by the other negatively affect trade or investment, it may express its concern in written form to the other and request consultations on the matter. The requested party shall provide information or conduct to eliminate or minimize these negatively affect caused by subsidies.

Duy Hung    LINK

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Henig:  HCM City gets ready for new foreign investment wave

09:10 | 14/02/2023

As an economic locomotive, Ho Chi Minh City has always led the country in terms of investment attraction, drawing the attention of foreign investors from around the world.

However, to be able to strongly attract foreign direct investment (FDI) and welcome new investment waves, the southern hub needs to solve bottlenecks and stagnation in investment procedures. HCM City also needs to work on promoting the development of new areas such as technology, finance, and urban infrastructure.

According to the municipal Department of Planning and investment, the city topped the country in the total value of foreign investments in 2022, including new and additional investment capital and capital contribution, share purchase, and contributed capital purchase reached more than 3.94 billion USD, up 5.4 % compared to 2021.

Among newly granted projects, there were 820 newly granted works in the form of 100% foreign capital investment, 71 joint ventures, and two projects in the form of business cooperation contracts.

The city has several advantages in economic development, particularly high-quality human resources, and relatively developed infrastructure to attract investment in high-tech service industries, according to economic experts.

It also has a favourable strategic location, and is the country's largest high-tech manufacturing and service centre as well as a multicultural city suitable for foreigners coming to work, live and travel.

The city will restructure its economic sectors to focus on attracting FDI in key industries. It will also promote investment attraction in industries with high added value on the basis of the high-tech industry and digital economy, automation, artificial intelligence, software, and microchips.

It has also focused on turning into the largest creative startup hub in the country to help improve the efficiency of the labour market. This will support the real estate market, science and technology, and the financial market according to the standards of the market economy and international economic integration.

Source: VNA    LINK

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Henig:  Việt Nam to have 30 airports by 2030: draft planning

07:00 | 14/02/2023

Việt Nam will have a total of 30 airports by 2030 including 14 serving international flights, according to a draft plan that the Civil Aviation Authority of Vietnam (CAAV)has submitted to the Ministry of Transport recently.

The international airports are Vân Đồn, Cát Bi, Nội Bài, Thọ Xuân, Vinh, Phú Bài, Đà Nẵng, Chu Lai, Cam Ranh, Liên Khương, Long Thành, Tân Sơn Nhất, Cần Thơ, and Phú Quốc.

The 14 airports serving only domestic flights are Lai Châu, Điện Biên, Sa Pa, Nà Sản, Đồng Hới, Quảng Trị, Phù Cát, Tuy Hòa, Pleiku, Buôn Ma Thuột, Phan Thiết, Rạch Giá, Cà Mau, and Côn Đảo.

Two military airports – Thành Sơn and Biên Hòa – will be converted to use for both military and civil purposes.

The draft plan still includes the Hải Phòng International Airport project which was approved in the Prime Minister’s Decision No. 640/QĐ-TTg dated April 28, 2011.

By 2050, Việt Nam expects to have 33 airports including 14 international airports Vân Đồn, Hải Phòng, Nội Bài, Thọ Xuân, Vinh, Phú Bài, Đà Nẵng, Chu Lai, Cam Ranh, Liên Khương, Long Thành, Tân Sơn Nhất, Cần Thơ and Phú Quốc. There will also be 19 domestic airports (Lai Châu, Điện Biên, Sa Pa, Cao Bằng, Nà Sản, Cát Bi, Đồng Hới, Quảng Trị, Phù Cát, Tuy Hòa, Pleiku, Buôn Ma Thuột, Phan Thiết, Rạch Giá, Cà Mau, Côn Đảo, Biên Hòa, Thành Sơn and the second airport in the southeast, south region of Hà Nội).

CAAV will continue to study, survey, and evaluate the possibility of converting some existing military airports into dual-use facilities including Yên Bái airport in Yên Bái Province, and Gia Lâm airport in Hà Nội. The conversion will be reported to the Prime Minister for consideration when all necessary conditions are met.

In particular, this draft plan reflects CAAV’s openness to the new civil airports.

The agency proposes to continue studying, surveying and evaluating the possibility of building airports in provinces that are located in key positions in defence and security and with potential for tourism development but have no military airport. These are Hà Giang, Tuyên Quang, Hà Tĩnh, Kon Tum, Quảng Ngãi, Bình Thuận, Khánh Hòa, Đắk Nông and Tây Ninh.

The Transport Engineering Design Incorporated (TEDI) – consultant for the national airport development planning – proposes that the capacity of Long Thành airport by 2030 is 25 million passengers per year. The capacity of Long Thành airport would then increase to 100 million passengers by 2050. The Tân Sơn Nhất airport is to have a maximum capacity of 50 million passengers yearly.

Biên Hòa airport is expected to handle five million passengers yearly by 2030, and up to ten million passengers by 2050.

Source: VNS    LINK

Henig:  Việt Nam urged to ensure exports to Asian, African markets in 2023

February, 14/2023 - 08:56

These challenges included a world economic recession, competition among major big economies, trade protectionism, inflation and rising interest rates, MoIT's Director of the Asia-Africa Market Department said.

HÀ NỘI — Vietnamese exporters need to ensure their capacity and maintain existing export markets, typically Asian and African outlets, amid many challenges in 2023, a senior trade official has said. 

These challenges included a world economic recession, competition among major big economies, trade protectionism, inflation and rising interest rates, Lê Hoàng Oanh, Director of the Asia-Africa Market Department under the Ministry of Industry and Trade, said.

To do so, firms must make sure that their products meet the quality requirements of exported goods and shipped goods, which Asiam and African markets need rather than what they have, Oanh told congthuong.vn. 

She said open export procedures, convenient logistics services, and updated information about the import policies of the host country would also be necessary to facilitate exports to these markets.

According to the official, ensuring raw materials would play a key role for exporters, especially those exporting textiles and garments to China and South Korea and others shipping seafood products to South Asia and Southeast Asia.  

Input materials for production needed to be diversified to avoid dependence on one or several markets, she added. 

In 2023, Oanh encouraged exporters to continue promoting their exports to some lucrative markets such as China and India. In China, firms should pay attention to the Yunnan market. 

Guangxi and Yunnan have the same population of about 50 million people but the scale of Việt Nam's trade with Yunnan in 2022 reached only US$3.2 billion compared to the country's $30 billion trade with Guangxi, she explained. 

Meanwhile, India is also a potential market with considerable purchasing power and market demand thanks to a population of 1.4 billion people. Annually, India imported about $560 billion worth of goods. However, Việt Nam's exports made up only 1.4 per cent of the country's total import value of $8 billion. 

Besides the markets mentioned above, Oanh also advised exporters to look to African markets, which have much untapped opportunities for them to accelerate their exports, as Việt Nam only accounted for 0.6 per cent of Africa's import turnover worth $600 billion per year.

Việt Nam’s merchandise trade with Asia reached $475.29 billion in 2022, increasing by 9.6 per cent compared to 2021 and accounting for the highest proportion (65.1 per cent) in the country's total import-export value.

Major trade partners of Việt Nam in Asia include China, South Korea, Japan, and the Association of Southeast Asian Nations (ASEAN).

Last year, the value of imports and exports between Việt Nam and Africa was $8.1 billion, down 3.9 per cent. 

— VNS    LINK

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Henig:  Demand for industrial land for rent remains high

February, 14/2023 - 08:59

The demand for industrial land for rent in Việt Nam will remain high this year thanks to policies promoting investment in the country, experts said.

HCM CITY — The demand for industrial land for rent in Việt Nam will remain high this year thanks to policies promoting investment in the country, experts said.

Due to short supply, rental prices for industrial land are expected to continue to rise by an average of 8-20 per cent year-on-year in 2023, depending on the region, according to a report by the SSI Securities Corporation.

Last year, industrial real estate rents rose by an average of 10 per cent due to high demand, according to the report.

Trang Minh Hà, chairman of North Stars Asia Company, said that in Việt Nam, industrial real estate leasing has seen a hike in demand and rental prices, especially for logistics and warehousing.

The industrial land-for-rent market is likely to remain strong over the next 12 months, she added.

Demand for industrial land has surged as the occupancy rate in industrial hubs has reached almost 100 per cent, she said.

Many ready-built warehouses, factories and logistics and data centres are being built in industrial parks (IPs) across the nation, she added.

The average rent for industrial land in the southern region was $159 per square metre in the last quarter of 2022, up 3 per cent over the previous quarter and 10 per cent year-on-year, according to global real estate services firm Cushman and Wakefield.

The highest rent in HCM City was $300 per sqm. The occupancy rate increased to 92 per cent from 91 per cent. The average rent in Bình Dương and Long An provinces was $180.

According to the Ministry of Planning and Investment, Việt Nam has 292 industrial parks with a total land area of 87,100ha and 106 more are under construction.

They are home to some 10,000 domestic companies and 11,000 foreign-owned firms that have invested over $340 billion.

Việt Nam continues to be an appealing destination for industrial real estate investors, according to Cushman and Wakefield.

The firm attributed this to the country’s stable growth rate, an export-oriented economy, a young labour force, investment incentives, a strategic location and a positive economic outlook.

With a stable political environment, Việt Nam has also become popular for foreign investors moving out of China.

— VNS   LINK

Monday "Vietnam News" Posted by Henig at KTFA 2-13-2023

KTFA: Vietnam: 

Henig:  State Treasury to auction VND400 trillion worth of government bonds in 2023

08:47 | 13/02/2023

The State Treasury has announced that it plans to raise VND400 trillion (over US$17 billion) worth of Government bonds via auctions on the Hanoi Stock Exchange (HNX) this year.

In the first quarter of 2023, the State Treasury will offer 108 trillion VND worth of G-bonds with different maturities, including 5-year and 7-year bonds valued at 8 trillion VND, 10-year and 15-year bonds each valued at 45 trillion VND, and 5 trillion VND worth of 20-year and 30-year bonds each.

On February 1, the HNX organised three auctions of 5-year bonds worth 500 billion VND, and 10-year and 15-year bonds worth 5 trillion VND each.

The State Treasury said in 2023, the agency will issue G-bonds closely following market developments, and the revenue collection and disbursement progress of the public investment capital plan from the State budget.

It will manage interest rates of auctioned G-bonds in line with the Government's direction of fiscal and monetary policies, and issue G-bonds with different maturities to meet the needs of investors, thus promoting the liquidity of the G-bond market, raising more capital for the State budget and supporting the development of the capital markets.

Source: VNA   LINK

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Henig:  Bắc Giang’s train station to offer int’l freight transportation services

February, 13/2023 - 10:35

The Kép station will organise a fleet of trains running from Kép to Đồng Đăng Station in the border province of Lạng Sơn and then to China’s Pingxiang station.

HÀ NỘI — Kép train station in the northern province of Bắc Giang will offer international freight transportation services from February 20, as it meets all necessary conditions, according to the Vietnam Railways Corporation (VNR).

Specifically, the station will organise a fleet of trains running from Kép to Đồng Đăng Station in the border province of Lạng Sơn and then to China’s Pingxiang station.

The Kép Station’s load and unload capacity is from 80 to 100 carriages or containers per day. Freight includes electronics and industrial products, construction materials, industrial wood and raw ore.

A bonded warehouse is expected to be built at the station to serve the import and export activities of enterprises in Bắc Giang and Bắc Ninh provinces and neighbouring localities. It specialises in receiving refrigerated containers transported from the South which will then be exported to China.

Currently, VNR is managing international freight terminals, namely Lào Cai, Yên Viên, Hải Phòng, Đồng Đăng, Giáp Bát and Sóng Thần.

— VNS   LINK

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Henig:  Knock wood: UKVFTA boosts exports to UK

06:00 | 13/02/2023

(VEN) - The UK-Vietnam Free Trade Agreement (UKVFTA) has served as a catalyst to Vietnamese timber exports to the UK, said Ngo Sy Hoai, Vice Chair and General Secretary of the Vietnam Timber and Forest Products Association (VIFORES) in a talk with Vietnam Economic News’ Hoa Quynh.

How did Vietnamese wood exporters exploit market opportunities after the UKVFTA took effect?

Before Brexit, the UK was an important market for Vietnamese wood products, which accounted for 30-40 percent of Vietnam’s export value to the EU. While Brexit raised exporters’ concerns, the UKVFTA, taking effect in May 2021, helped increase Vietnam’s wood export value to the UK to more than US$265 million in 2021, up over 18 percent from 2020. More than 90 percent of wood exports to the UK are furniture products.

According to the agreement, refined furniture exports to the UK are subject to a 1.2-2 percent tax that will be gradually reduced in the near future, while wood product and intermediate material exports to this market are subject to a 2-10 percent tax, which will be also gradually reduced according to the agreed roadmap. The export growth shows that wood enterprises have taken advantage of UKVFTA opportunities. The EU and the UK are discerning markets and without the UKVFTA’s tax incentives, wood enterprises would find it hard to increase exports to the UK, as similar products from other countries like China have carved a major niche in this market.

What difficulties do timber exporters face under the UKVFTA?

Vietnam is gradually becoming a wood processing center as a result of free trade agreements (FTAs) in general and the UKVFTA in particular. However, Vietnamese products accounted for only 7.2 percent of the UK's wood and wood product import value, while the UK represents only two percent of Vietnam’s wood export value.

The UK has a long-established wood industry and has strict standards on product quality, design, environmental protection, climate change control, green growth and greenhouse gas emissions, obliging Vietnamese businesses to pay special attention to the legality of wood origin if they are to enter supply chains to this market.

Businesses have not made good use of digital platforms to introduce and bring wood products to British customers. Vietnamese producers need to improve product design and marketing if they are to enjoy bigger export opportunities. If Vietnam maintains export growth to the UK, the country will improve its prestige and attract the interest of customers from other markets.

What solutions do businesses and management agencies need to implement?

Wood enterprises need to make a breakthrough by making products with higher added value, using less labor and less input materials. They also need to better corporate governance and apply modern accounting software to ensure input and output transparency and avoid trade remedy-related lawsuits.

It is necessary to promote Vietnam as a capable, competitive and sustainable wood processing center, and identify opportunities and challenges related to the UKVFTA’s exploitation. Particularly, the Government needs to consider signing a Voluntary Partnership Agreement on Forest Law Enforcement, Governance and Trade (VPA/FLEGT) with the UK to ensure that exporters to the UK meet environmental and forest protection standards.   LINK

Henig:  SBV works to mitigate potential risks for non-banking credit institutions

February, 13/2023 - 10:09

The State Bank of Việt Nam (SBV) is collecting comments on its draft circular to minimise potential risks for non-banking credit institutions and ensure they work in accordance with international standards.

HÀ NỘI — The State Bank of Việt Nam (SBV) is collecting comments on its draft circular to minimise potential risks for non-banking credit institutions and ensure they work in accordance with international standards.

The draft circular stipulates the internal control system of non-banking credit institutions, which include financial companies, financial leasing companies and other non-banking credit institutions.

According to the SBV, the operation of non-banking credit institutions is simpler than that of commercial banks and foreign bank branches. Under the current legal regulations, the institutions are not allowed to receive deposits from individuals, but only from organisations; as well as not being permitted to provide payment means and payment services like commercial banks and foreign bank branches, but their operations still pose risks.

Therefore, the establishment of a risk management system according to Basel standards can be considered a solution to minimise potential risks that may occur during the operation of non-banking credit institutions, the SBV said, adding that the change is also consistent with the current trend of corporate governance in general.

The draft circular stipulates the internal control system must have three independent protection lines.

The first line has the function of identifying, controlling and mitigating risks. Banks’ divisions related to sales, risk control, accounting and human resources will take responsibility for the line.

The second line has the function of developing risk management policies and internal regulations on risk management. It also takes the responsibility for measuring and monitoring risks.

The third line has the function of internal auditing, which will be performed by the banks’ internal audit division in accordance with the Law on Credit Institutions and this circular.

According to the SBV, the draft circular is also consistent with the regulations in Basel which also has the similar three-line protection model.

Besides, the new regulations in the draft circular are dispensable as the Law on Credit Institutions has also amended and supplemented regulations that credit institutions must issue internal regulations to ensure risk management, the SBV said.

— VNS   LINK

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Henig:  Deposit rate continues to drop but lower lending rate remains a challenge

February, 13/2023 - 09:22

Both the six-month and 12-month term rates now stand at 9.3 per cent per year, down from 9.7 per cent and 9.5 per cent per year, respectively.

Compiled by Mai Hương

Commercial joint stock banks continued to lower deposit interest rates early this month – a move that raises hope of a fall in lending rates.

After the ‘rate war” in December when saving interest rates were pushed up to 11 per cent per year at some banks, commercial banks started to adjust rates down after Tết (Lunar New Year) and cut further last week.

From Thursday, National Citizen Joint Stock Bank (NCB) lowered its saving interest rates by between 0.2-0.45 percentage points, depending on the term. Both the six-month and 12-month term rates now stand at 9.3 per cent per year, down from 9.7 per cent and 9.5 per cent per year, respectively.

Early last week, Sài Gòn Commerical Joint Stock Bank (SCB) – the leading player in the ‘rate war’ last year – reduced saving rates on many terms. Its 24-month rate now stands at 9.1 per cent per year, down from 9.95 per cent, and the 12-month rate dropped to 9.5 per cent from 9.95 per cent.

Techcombank also cut saving rates by 0.5 percentage points for terms of six months or more from February 7, while PVComBank reduced rates by 0.2-0.3 percentage point, bringing the six-month rate down to 8.3 per cent per year and 12-month rate to 8.8 per cent per year.

Except the Big Four, including Agribank, Vietcombank, VietinBank and BIDV, which have kept their interest rates steady in the past several months, deposit rates listed at most banks now fall to 9.5 per cent at the highest.

At the meeting between the State Bank of Việt Nam (SBV), commercial banks and property developers on Thursday, Vietcombank General Director Nguyễn Thanh Tùng said before this meeting, banks’ leaders agreed to cut the deposit rates to reduce the lending rate.

The ceiling deposit rate may be brought down to 8.7 per cent per year in the coming time instead of the current 9.5 per cent per year, a bank leader said.

The Governor of the central bank has asked commercial banks to continue decreasing operating costs, streamlining administrative procedures and unnecessary expenses to have room to reduce lending interest rates. The SBV emphasised that it will monitor cases where banks continue to raise interest rates and take measures to deal with these banks.

Unexpected but understandable

The banks’ movements, though surprised the market, are comprehensible given the context that many global central banks have officially slowed down their rate hike roadmap on belief that inflation has passed its peak.

In the policy meeting in early February, US Federal Reserve (Fed) only raised the key rate by 0.25 percentage points after having made four consecutive hikes of 0.75 percentage point in 2022 and one more 0.5 percentage point increase in the last month of 2022.

Meanwhile in Việt Nam, some comments have suggested the pressure to continue raising the interest rate of the State Bank (SBV) to support the exchange rate in 2023 has decreased significantly.

In a recent report, Bảo Việt Securities Co (BVSC) said deposit rates were almost flat in January, showing signs of cooling down from the fever in December and may continue to decrease in 2023 due to favourable macro conditions.

“BVSC believes that (SBV’s) pressure to raise interest rates to support the exchange rate will no longer continue in 2023. Instead, monetary policy this year is likely to shift to a supportive direction for growth,” it said in the report.

The securities company expects interest rates to fall again in 2023, with clearer signs from the second quarter, when the Fed stopped raising interest rates and Việt Nam's inflation cooled down.

According to Việt Dragon Securities Co, exchange rate pressure was the main cause for the hike of interest rates in 2022 but now this pressure has cooled down, which may lay a foundation for SBV to keep key interest rates unchanged in 2023.

In addition, the inflation target in 2023 is loosened to 4.5 per cent and fiscal policy shares the pressure with monetary policy, so the exchange rate is expected to decrease as well.

Challenges remain

However, pressure on interest rate is still large.

It can be seen that the lending rate now doubles or more of the deposit rate, averaging between 13-17 per cent per year, even higher.

Economist Lê Xuân Nghĩa, a member of the National Financial and Monetary Policy Advisory Council said the current interest rate ground is too high.

If the inflation rate is around 4 per cent, the savings interest rates should be around 6-7 per cent per year to help keep the lending rates at rational levels.

Vietcombank Securities Company (VCBS) predicts the deposit interest rate will remain high at least until the middle of the year. Amid stiff competition to mobilise capital, VCBS believes the group of small- and medium-sized commercial banks will not reduce interest rates in major terms. It is forecast that deposit rates will peak in the first six months of 2023 with an increase of 1-1.5 percentage points.

Director of SBV’s Monetary Policy Department Phạm Chi Quang said in 2023, the global economy is likely to have a recession, and at the same time Fed will continue its rate hike. These factors will put pressure on interest rates to continue. 

— VNS    LINK

Sunday "Vietnam News" Posted by Henig at KTFA 2-12-2023

KTFA Vietnam: 

Henig:  PM holds roundtable discussion with Brunei energy, oil and gas firms

February, 11/2023 - 17:11

Delegates discussed and proposed new business ideas and opportunities to lift bilateral economic, trade and investment ties, especially in energy and oil and gas.

BANDAR SERI BEGAWAN — Prime Minister Phạm Minh Chính held a roundtable discussion with Brunei energy and oil and gas enterprises in Bandar Seri Begawan capital on February 11, as part of his ongoing visit to Brunei.

Delegates discussed and proposed new business ideas and opportunities to lift bilateral economic, trade and investment ties, especially in energy and oil and gas.

A representative of the Brunei Government shared the vision, socio-economic development strategy and economic restructuring and diversification plans under the Brunei Vision 2035 that turns the country into an economy with dynamic and sustainable development.

PM Chính committed all possible support for Brunei firms to do business effectively and sustainably in the country. "Your success is also our success,” he affirmed.

He suggested both nations focus on promoting emerging economic fields such as green, digital, circular and knowledge-based economies and innovation; diversifying markets, products and supply chains. He asked for measures to step up collaboration in energy, chemicals, and Halal food for Islamic people.

The Vietnamese leader expressed his belief that with determination, efforts and close friendship between the two peoples, trade and investment cooperation will continue to be an important pillar of Việt Nam-Brunei relationship and a driving force to lift bilateral ties to a greater height.

— VNS   LINK

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Henig:  HDBank to maintain high growth, promote digital transformation

February, 11/2023 - 13:40

The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) is set to maintain strong growth both in scale and quality, a representative of the bank told its Investors Conference while announcing its business results for 2022 in HCM City on February 10

HCM CITY — The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) is set to maintain strong growth both in scale and quality, a representative of the bank told its Investors Conference while announcing its business results for 2022 in HCM City on February 10.

The bank is focusing on programmes that are expected to make a positive contribution to raise operational efficiency and safety for the bank such as implementing Basel III standards, accelerating digital transformation and further promoting the service sector.

The representative said HDBank’s 2022 results were the “best-ever,” with its pre-tax profit up 27.2 per cent over 2021 to VNĐ10.27 trillion (US$435.8 million).

Total operating income topped VNĐ21.97 trillion ($933 million), a year-on-year rise of 31.1 per cent.

The bank's bancassurance revenue more than doubled over the figure of 2021, promising robust growth in the future.

HDBank's asset quality was also at a good level with the consolidated and stand-alone non-performing loan ratio at 1.67 per cent and 1.3 per cent, respectively, much lower than the sector’s average of 1.92 per cent.

The loan-to-deposit ratio was low compared to the maximum level set by the State Bank of Vietnam thanks to its success in liquidity risk management and capital mobilsation from businesses and households.

As of December 31, 2022, HDBank had 347 branches and transaction offices and more than 24,500 consumer finance transaction points, with over 16,000 employees serving over 14 million customers.

In addition, it has a large and potential customer ecosystem including customers of HDBank, Vietjet Air and HD SAISON.

The bank attributed its outstanding results last year to its implementation of a number of strategic initiatives such as speeding up digital banking development, taking advantage of its ecosystem, promoting bancassurance and enhancing corporate governance and environmental and social risk governance in line with the best international standards.

Notably, HDBank’s digital transformation has delivered positive results, with the number of customers using digital banking services nearly doubling, and transaction value up by 547 per cent last year.

This year, the bank aims to maintain high growth momentum, effectively manage risks, and ensure asset quality and operational safety indicators that are among the best in the sector.

Meanwhile, it will carry out programmes to support customers to overcome difficulties.

Besides that, the bank is also stepping up signing an exclusive bancassurance contract and mobilising international capital at a reasonable cost to further improve its safety and performance indicators to be ready to apply Basel III.

— VNS    LINK

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Henig:  RoK firms show interest in Việt Nam’s medical equipment market

February, 11/2023 - 11:14

This year's edition will be the first to be held in Việt Nam and feature 250 booths by 150 domestic and foreign firms, COEX said.

SEOUL — COEX, a leading exhibition organiser and venue of the Republic of Korea (RoK), and the Vietnam Advertisement and Fair Exhibition JSC (VIETFAIR) will co-organise the Mekong Medical & Healthcare Expo 2023 in the southern province of Bình Dương in June.

This year's edition will be the first to be held in Việt Nam and feature 250 booths by 150 domestic and foreign firms, COEX said.

It is expected to help Korean businesses penetrate the health sector of Việt Nam and other countries in the region.

COEX CEO Lee Dong-gi stressed that the Vietnamese health sector has posted an annual growth rate of 13.1 per cent over the past five years, with more than 90 per cent of medical equipment and supplies imported.

The country’s total health expenditure accounts for about 6.5 per cent of its GDP, the highest in the Association of Southeast Asian Nations (ASEAN), he said, calling Việt Nam a promising market for Korean medical equipment firms.

The organisers will prepare diverse solutions to help Korean companies expand its global network and explore new markets in ASEAN through the exhibition, he said.

— VNS     LINK

Henig:  HCMC ranks among top markets for data centre development

February, 11/2023 - 12:15

HCM City is ranked among the top markets in the land price category for data centre development, experts said.

HCM CITY — HCM City is ranked among the top markets in the land price category for data centre development, experts said.

In an annual report by Cushman & Wakefield, the company said that with many of the largest markets in the APAC region boasting particularly high land costs, only HCM City ranks within the top 10 for the land price category.

The rest of the top ten markets in the category are: Columbus, Santiago, Johannesburg, Atlanta, Nashville, Phoenix, Austin, Denver, and Chicago.

The report ranks major data centre markets around the world according to 13 weighted categories, including market size, fiber connectivity, power cost and environmental risk, to determine the top overall markets as well as the top performing markets in each category.

According to the company’s latest forth quarter of 2022 HCM City marketbeat report, the average rental price reached US$159 per sq.m per lease cycle, up 3 per cent quarter-on-quarter and 10 per cent year-on-year. 

Việt Nam may be a frontier data centre market at this juncture but it has numerous fundamentals that would suggest great potential for development going forward. The country currently has 70 per cent internet penetration, with an estimated 29 million people yet to get online. 

Over 48 per cent of Việt Nam’s capacity is located in the centre of HCM City. Currently, only a small number of multinationals require high-level capacity.

The common approach for international operators is to partner with local telecommunication operators. There is a sizable lack of existing infrastructure relative to the population of the market and demand for internet services. This represents a major opportunity at both the content provision and infrastructure establishment level.

According to Cush & Walkfield, south of HCM City is preferred as a hub for data centres, especially for cloud services platform providers, due to latency issues and the securing of manpower. CMC Telecom opened its Tân Thuận Data Centre in August last year. The facility was designed by B-Barcelona of Singapore. The facility has a total area of 13,133sq.m and was 30 per cent pre-leased at launch according to CMC. 

Australian edge data centres firm Edge Centres has expanded into Asia with the deployment of their first data centre, EC51, in Việt Nam in HCM City in collaboration with the Việt Nam National University. They also have plans for an additional edge site in HCM City. 

GAW Capital acquired greenfield land in the Sài Gòn Hi-Tech Park in the city. The data centre is expected to be over 18,000sq.m and support 20MW in capacity.  

Viettel, a Vietnamese telecommunications company, announced plans to build a new data centre with $260 million in investment. While specifics on the facility have yet to be announced, this would be Viettel’s third project in the city.

Competition for sites between both data centre players and other asset classes has reached a fever pitch over the course of the past year. Fulfillment centres and large-scale single family rental developments have been evaluating similar sites as data centres. 

According to the company, one notable advantage that data centres have in competition for these sites is the limited impact on surrounding traffic and parking availability, a key area of concern for a number of local communities. However, data centres do require a higher power draw, and there have seen greater local community concerns about the potential effect on electrical grids. The growth of edge data centres has continued, optimising workload for latency. 

— VNS    LINK

Some "Vietnam News" Posted by Henig at KTFA Saturday 2-11-2023

KTFA:   Vietnam:

Henig:  Banks suffered big losses from securities trading in 2022

February, 11/2023 - 08:52

Fiin Ratings attributed the banks’ negative results in securities trading and investment to the interest rate hike, the exchange rate uncertainty, the sharp decline of stock indices and the ‘freezing’ of the corporate bond market.

HÀ NỘI — Many banks reported negative results in securities trading and investment in 2022 due to the interest rate hike, the exchange rate uncertainty, the sharp decline of stock indices and the ‘freezing’ of the corporate bond market, cafef.vn reported.

At State-owned VietinBank, most of its main business segments experienced positive development in the last quarter of 2022. The bank’s net interest income rose by 23.6 per cent to VNĐ12.85 trillion and the net income from service activities increased by 53 per cent to more than VNĐ1.78 trillion while the net income from foreign exchange trading was VNĐ1.123 trillion, up by nearly 2.5 times year-on-year.

However, VietinBank’s proprietary trading made a loss of VNĐ126 billion in 2022. The result was much worse than the previous year when the bank made a profit of VNĐ720 billion in the business segment.

Another State-owned big player Vietcombank was also under the same trend. Though the bank’s net interest income grew by 38.8 per cent to VNĐ14.8 trillion, its proprietary trading in 2022 made a loss of VNĐ115 billion, while it made a profit of VNĐ137 billion in 2021.

Techcombank also had proprietary trading seeing a loss of VNĐ241 billion in 2022, against a profit of VNĐ152 billion in 2021.

Sacombank also recorded negative results from proprietary trading. Specifically, the bank lost VNĐ20 billion from the activity in 2022, while in the previous year it made a profit of VNĐ163 billion.

TPBank’s pre-tax profit in 2022 was nearly VNĐ7.83 trillion, up 30 per cent against the previous year, but the bank’s net income from proprietary operation fell by 70 per cent.

According to the quarterly consolidated financial statement recently released by ACB, the bank’s pre-tax profit in 2022 was more than VNĐ17.11 trillion, up 43 per cent year-on-year, thanks to a decrease in credit risk provisions and an increase in income from service activities (up 22 per cent to VNĐ3.53 trillion) and from foreign exchange trading (up 20 per cent to VNĐ1.05 trillion). However, the bank’s securities trading segment plummeted by up to 92 per cent.

Many other banks such as VPBank, SHB and ABBank all recorded lower securities business results compared to 2021.

Fiin Ratings attributed the banks’ negative results in securities trading and investment to the interest rate hike, the exchange rate uncertainty, the sharp decline of stock indices and the ‘freezing’ of the corporate bond market.

Closing the session at the end of 2022, VN-Index and HNX-Index decreased by 32.7 per cent and 56.7 per cent, respectively, compared to the beginning of the year, which caused the stock portfolio held by banks and their subsidiaries of which business results are consolidated on the banks’ financial statements declined sharply.

— VNS     LINK

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Henig:  Nearly $1.4 billion worth of G-bonds raised in January

February, 11/2023 - 10:25

The figure was equivalent to 30.4 per cent of the first-quarter issuance plan and 8.21 per cent of the annual target.

HÀ NỘI — The State Treasury raised VNĐ32.8 trillion (US$1.39 billion) worth of Government bonds, or 96.56 per cent of the total G-bonds on offer, via eight auctions on the Hà Nội Stock Exchange (HNX) during January.

The figure was equivalent to 30.4 per cent of the first-quarter issuance plan and 8.21 per cent of the annual target.

Of which, 49.74 per cent were 10-year bonds while the remainder were 15-year bonds, with respective interest rates of 4.36 per cent and 4.56 per cent. The rates are down 29 and 24 basis points from the previous auction.

On the secondary market, the trading value of G-bonds during the month reached over VNĐ65.79 trillion, down 9.48 per cent month-on-month, with outright transaction value accounting for 53.74 per cent. The rest was traded via repurchase agreements.

—VNS    LINK

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Henig:  Vietnamese aviation sector to fully recover by end of year

February, 11/2023 - 10:10

The Vietnamese aviation sector is expected to fully recover from the impact of the COVID-19 pandemic by the end of 2023 with an estimated 80 million passengers and 1.44 million tonnes of cargo to be transported by air this year, according to the Civil Aviation Authority of Việt Nam (CAAV).

HCM CITY — The Vietnamese aviation sector is expected to fully recover from the impact of the COVID-19 pandemic by the end of 2023 with an estimated 80 million passengers and 1.44 million tonnes of cargo to be transported by air this year, according to the Civil Aviation Authority of Việt Nam (CAAV).

According to the global outlook for the aviation industry by CAAV, the amount of passengers and cargo transported by air in Việt Nam this year will be up 45.4 per cent and 15 per cent from last year, respectively, or up 1 per cent and 14.8 per cent from 2019 before the pandemic broke out.

Việt Nam saw a full recovery and recorded strong growth in the domestic aviation market in 2022, while its international market is expected to reach the level recorded in 2019 by the end of 2023.

However, there remain huge hurdles for the sector, including limited aviation infrastructure, fluctuation of fuel prices, human resource shortages, and the Russia-Ukraine conflict, which will continue to have a negative impact on the industry this year.

In addition, there are only a few large airports in Việt Nam, all of which have very limited capacities. 

Domestic airports served 9.8 million passengers in January, up 13.8 per cent from the previous month, including 2.3 million international arrivals, a rise of 10 per cent, according to CAAV.

Vietnamese airports handled 112,000 tonnes of cargo in January, up 11.6 per cent from the previous month, according to the authority.

Around 34 million passengers from Việt Nam are expected to travel overseas this year, triple the number of last year, according to analysts at CAAV.

Though China has already resumed travel and economic activities with Việt Nam, it will take longer than this year for the aviation sector to recover to pre-pandemic levels, experts said.

The IATA predicted a recovery of 80 per cent and 95 per cent in the number of international passengers and domestic passengers, respectively, compared to the pre-pandemic period. 

The Asia-Pacific region is expected to recover slowest, according to the association.

— VNS     LINK

Henig:  Thanh Hoa boosts forest product processing

10:00 | 11/02/2023

(VEN) - The industry promotion and energy efficiency center of Thanh Hoa Province is drafting a forest product processing development project for the 2022-2025 period in compliance with directions of the provincial Department of Industry and Trade.

Thanh Hoa Province is home to 160,000 hectares of forests with the Forest Stewardship Council (FSC) certification, more than 10,000ha of planted forests and 6.2 million scattered trees, with the area of large timber forests having increased to 56,000ha and Dendrocalamus barbatus to 30,000ha.

The 2022-2025 forest product processing development project is designed to support rural industrial establishments, increase the province’s wood and non-timber forest product export value to US$100 million and encourage more than 80 percent of wood processors in the province to apply advanced production technology by 2025. The project is expected to promote investment connectivity among rural industrial manufacturers, assist them in raw materials planning, technology, production and competitiveness improvement, and adding value to natural and planted timber.

In 2018, the center provided support worth VND1.3 billion for rural industrial producers in the province. In 2019, the center implemented vital industry promotion projects in the province’s Thach Thanh, Nhu Xuan and Nhu Thanh districts at a total cost of VND2.3 billion, and in 2020, it helped three industrial producers in Ngoc Lac, Nhu Thanh and Trieu Son districts apply advanced forest product processing machinery and equipment, and assisted two other rural industrial establishments, one in Nong Cong District and one in Nghi Son Town, to build technical demonstration models.

Thanh Hoa Province is home to more than 400 forest products processors. Industry promotion projects and forest product processing development workshops have helped them enrich their knowledge, standardize and improve production, and apply advanced technology and equipment. Businesses have begun to connect with each other to form value chains.

Industry promotion projects in Thanh Hoa Province give priority to local raw material exploitation and development and provision of jobs for local residents.

Linh Nhi    LINK

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Henig:  Việt Nam seeks solutions to keep up with green urban development trend

07:00 | 11/02/2023

In Việt Nam, a growing number of cities and municipalities are embracing this trend and are making plans to develop green urban areas that will help to protect the environment and support healthy, thriving communities.

As the world's great cities look to the future, one trend that has become increasingly unavoidable is the development of sustainable green urban areas. This shift is driven by a desire to create better, more livable environments for citizens and to improve their overall quality of life.

In Việt Nam, a growing number of cities and municipalities are embracing this trend and are making plans to develop green urban areas that will help to protect the environment and support healthy, thriving communities.

Reality of green cities

According to the Technical Infrastructure Department, the average tree density across Việt Nam is only 2-3 sq.m per capita. This is a low figure compared to the criteria of the United Nations of 10 sq.m per capita and one-fifth to one-tenth of the number in big cities worldwide, which is around 20-25 sq.m per capita.

In HCM City, although national standards indicate tree density is 15 sq.m per capita, the actual figure is much lower, at only one sq.m per capita.

The total area planned for public parks in HCMC is 11,400 hectares, which equates to a tree density of 7 sq.m per capita. However, only 500 hectares are used as parks, which is only a mere 0.55 sq.m per capita.

HCMC needs to plan and build "green belts" around the city, according to Đinh Quang Diệp, former head of the Department of Scenery and Flower Garden Technology.

Diệp's suggestion is because land reserves for green development in central urban areas, such as in Districts 1, 3, 4, 5, and 10, are no longer available. New urban areas in development need green areas to accompany the concrete architecture.

HCM City authorities have been raising the criteria of land reserves for trees in the city while trying to fulfil the current plans for developing parks in the city.

HCM City plans at least 150 hectares of parks and 10 hectares of public greenery from 2021 to 2025. The city will need to plant 10 million trees to get this done.

In Biên Hoà, Đồng Nai Province, where six industrial areas are present, the economic development has brought about a great rise in population and urbanisation.

Biên Hoà is the most populous Class I urban area in Việt Nam, with more than 1.15 million residents. This high population density has made the land reserves in the city smaller, leading to a decrease in land for trees.

The Ministry of Construction's technical regulation states that Class I urban areas must have a tree density of at least 6 sq.m per capita, but Biên Hoà currently has just over one sq.m per capita.

To meet up with demands for green development, Biên Hoà is focusing on reworking its plans for 2030 and 2050.

Opening up a greener space

For years, the green development of HCMC has been tied to the development of infrastructures. However, the speed of green development has never caught up to the speed of urbanisation, especially in areas such as Thủ Đức, Bình Tân, Bình Chánh, and Nhà Bè.

Experts suggested that HCM City must tightly manage the areas planned for parks that have been misused. Urban and residential projects must seriously commit to building parks for a more harmonious environment.

The city of Thủ Đức has ordered 34 wards to gather feedback from residents to build a general plan for 2040 to 2060. The wards are also ordered to review the current public land reserves planned for parks.

HCM City should have a policy that allows social investments in developing public parks of 10 hectares or more, said Nguyễn Đình Hoà, architect and urban planning expert.

Hoà suggested the parks provide proper ways of generating their own income, such as paid amusement parks, art exhibition areas, and indoor or outdoor gyms.

To achieve their tree density criteria of 3-4 sq.m per capita in 2030, HCMC has started a campaign, "Every resident plant a tree".

Funding and human resources, and volunteers have also been called in their quest to plant ten million trees by 2025.

The city also focuses on building legal frameworks and policies that attract investors to build greenery parks. The government will plan for each of these projects, build policies to gather investment, and manage policies to develop and maintain these parks.

In Biên Hoà, Đồng Nai, the authorities have been focusing on the development of new parks and greenery across the city in recent years.

Đỗ Khôi Nguyên, chairman of Biên Hoà People's Committee, suggested the city be allowed to enact their own measures to increase the tree density rate.

The city will gather investors to build parking lots which had to incorporate areas for greenery. The investors of these parking lots are also responsible for managing and developing green areas.

Smaller parks are also planned to be built in the city, which would also meet the demands for recreation of the public, as well as increase the urban green areas.

Source: VNS LINK

Friday "Vietnam News" Posted by Henig at KTFA 2-1-0-2023

KTFA:

Henig:   Hà Nội targets GRDP per capita of $36,000 by 2045

07:00 | 10/02/2023

As the country continues to develop, the government is focused on ensuring that the capital remains at the forefront of this progress, positioning it as a hub for commerce, culture, and innovation in the years to come.

Hà Nội is set to become a globally-connected city with high living standards and quality of life, according to a new plan that aims to raise the Gross Regional Domestic Product (GRDP) per capita to US$36,000 by 2045.

As the country continues to develop, the government is focused on ensuring that the capital remains at the forefront of this progress, positioning it as a hub for commerce, culture, and innovation in the years to come.

The average annual growth rate of GRDP is set to increase to 7.5-8 per cent by 2025 and 8-8.5 per cent by 2030. As a result, the GRDP per capita is expected to reach $8,500 by 2025 and up to $12,000-13,000 by 2030.

The figure is projected to reach $36,000 by 2045.

From 2026 to 2030, the processing and manufacturing industry will make up 20 per cent of the GRDP, the digital economy will make up 40 per cent of the GRDP, 80 per cent of the agricultural production value will use high technology, and labour productivity will increase by 7.5 per cent.

The urbanisation rate will reach 75 per cent by 2030.

By 2045, the city's economic, cultural and social development will be comprehensive, unique and harmonious and at the same level as the capitals of developed countries.

The plan details were revealed after the Politburo issued Resolution 15/NQ-TW on the orientations and tasks for the capital city's development until 2030 with a vision towards 2045 last April.

To fulfil these targets, the Resolution puts forwards key tasks and solutions, including continuing to raise awareness of the significant position, role and importance of the capital city; and developing the capital's economy rapidly and sustainably based on restructuring the economy in connection with renewing growth models and mobilising all resources effectively.

It is also necessary to strongly develop the city's culture in line with its role as a centre of education and training, science and technology, and healthcare while ensuring social security and welfare.

Other tasks include improving planning quality and promoting infrastructure construction, urban development and management. Furthermore, effective use of natural resources and environmental protection are key ones.

They also include ensuring national defence, security, social order and safety in all situations and promoting diplomacy, international integration and development cooperation to raise the position and prestige of the capital city.

The building and rectification of the Party and the political system must be increased for transparency and a stronger Party and political system, and legal systems must be completed in the capital with appropriate mechanisms and policies to meet the city's development requirements in the new period.

The Politburo asked the Party Organisation, administration and locals of the capital city to stay united and determined to work with central ministries, sectors and agencies, as well as other localities, to implement the resolution effectively.

The Politburo underlined the need to make comprehensive adjustments to the Capital Law to meet the development requirements of the capital city in the new situation.

Under the action plan, the city will tighten cooperation with government ministries and agencies to implement the tasks of the capital city's development strategy.

It will improve its coordination with provinces and cities throughout the country, especially with Hải Phòng and Quảng Ninh, to promote each other's potential and advantages for mutual development.

Source: VNS    LINK

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Henig:   IMO: FDI stands for Foreign Direct Investment

HCM City hopeful of getting $4.5b FDI in 2023

February, 10/2023 - 08:22

HCM City will be able to attract US$4.1- 4.5 billion worth of FDI this year if the economic situation stabilises and inflation remains under controlled, according to its Department of Planning and Investment

HCM CITY — HCM City will be able to attract US$4.1- 4.5 billion worth of FDI this year if the economic situation stabilises and inflation remains under controlled, according to its Department of Planning and Investment

Phạm Tuấn Anh, deputy head of its Foreign Economic Relations Sub-Department, said last year, despite being the locality worst affected by the COVID-19 pandemic, the city attracted $3.94 billion, a 5.4 per cent increase from 2021 and the highest among the country’s 63 provinces and cities.

Notably, inflows changed direction and, instead of the property sector, went into technology and manufacturing, he said.

The global economy would continue to face challenges this year, and so the city could struggle to increase FDI much from last year, he pointed out.

If the economic situation stabilises and inflation remains under controlled, it could get $4.1-4.5 billion, he told chinhphu.vn.

As of January 20 FDI for the year was worth $179 million, or 74 per cent higher year-on-year.

Of this, $87 million went into 50 new projects, $55 million was spent on acquiring stakes in other companies and $37 million went into 20 existing projects.

Singapore ranked first with 12 projects and $77 million, followed by Taiwan with $3.2 million and Hong Kong with $2.2 million.

Anh said the city has difficulty attracting investment, especially in large manufacturing projects, because it has little land left.

So its FDI strategy involves attracting foreign investment not only directly but also into supply chains in the south whose headquarters and R&D, logistics, training and support centres are located in the city and production activities are carried out in neighbouring localities, he added.

— VNS    LINK

Henig:  Shares mixed on declining liquidity

February, 09/2023 - 16:55

Shares were volatile this week with up-and-down sessions intertwining amid rising investor caution about the market outlook.

HÀ NỘI — Shares were volatile this week with up-and-down sessions intertwining amid rising investor caution about the market outlook.

On the Hồ Chí Minh Stock Exchange, the VN-Index decreased 0.76 per cent to close Thursday at 1,064.03 points. The benchmark index increased 0.6 per cent in the previous session.

Liquidity declined from VNĐ12 trillion on Tuesday to VNĐ10 trillion on Wednesday and VNĐ9.2 trillion (US$389 million) on Thursday.

Billion-dollar-cap stocks dropped in the last trading minutes of the afternoon session, pushing the VN-Index down sharply, while overall market breadth was rather balanced with 235 stocks falling, 184 rising and 166 closing flat.

Vietjet (VJC) surprised the market with a loss of 5.7 per cent despite its earlier reporting an impressive recovery after COVID-19 with a year-on-year rise of 175 per cent in net revenue to VNĐ7.35 trillion ($313.4 million) and a profit of VNĐ902 billion in the last quarter of 2022.

Other big draggers included Vietcombank (VCB), Vietinbank (CTG), BIDV (BID), Techcombank (TCB), Masan Group (MSN), Mobile World Investment (MWG), Vinhomes (VHM), Vincom Retail (VRE) and Hòa Phát Group (HPG), each losing between 1.1 and 2.8 per cent.

With negative movements of many large-cap stocks, major industry groups including banking, real estate, iron and steel, securities, retail and beverages were among the worst performers on Thursday.

On the bright side, the oil and gas group gained value. The largest company by market value PV Gas (GAS) increased 0.8 per cent while PetroVietnam Drilling and Well Services (PVD) hit the ceiling price of 7-per-cent growth, Petrolimex Gas (PGC) was up 1.3 per cent.

According to Viet Dragon Securities Co (VDSC), the market's decline was restrained with a support level of around 1,065 points for the VN-Index. Decreasing liquidity showed that supply pressure temporarily cooled down.

“However, the market's ability to rally is still difficult as the cash flow is still cautious and the supply pressure gradually increases when the market rallies. It’s expected that the market will continue to fluctuate and probe at 1,070 – 1,080 points in the next trading sessions,” said VDSC’s market analyst Phương Nguyễn.

On the Hà Nội Stock Exchange, the HNX-Index increased for a second day, up 0.14 per cent to close at 210.91 points. The northern market’s index edged up 0.3 per cent on Wednesday.

Liquidity also declined here with more than 46 million shares worth VNĐ743 billion being traded, down 25.5 per cent in volume and 15.8 per cent in value compared to the previous session.

Foreign trading was mixed. Foreigners concluded as net sellers on HCM City’s bourse with a trivial value of VNĐ11 billion. They were net buyers but for a value of VNĐ5 billion on the Hà Nội exchange.

— VNS    LINK

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Henig:  Fertiliser prices likely to remain at high level in coming months

February, 10/2023 - 08:31

Gas and petrol prices greatly affect the production cost of fertiliser because gas prices account for about 80-90 per cent of the production cost of ammonia - an important input for urea and DAP fertilisers.

HÀ NỘI — Fertiliser prices in the coming months are forecasted to remain at a high level due to the global market's continuing gas and petrol price fluctuations.

According to Phùng Hà, general secretary and vice chairman of the Vietnam Fertiliser Association, many experts in the fertiliser and finance world forecast that fertiliser prices are falling, but the possibility of them remaining at a high level remains. 

Gas and petrol prices greatly affect the production cost of fertiliser because gas prices account for about 80-90 per cent of the production cost of ammonia - an important input for urea and DAP fertilisers. Therefore, fertiliser prices in the coming months will still fluctuate unpredictably.

According to a survey of some fertiliser companies and trading agents, the current fertiliser price is at VNĐ10.5 million per tonne of Phú Mỹ urea fertiliser and VNĐ19 million per tonne for potassium sulphate fertiliser, while DAP fertiliser price ranges from VNĐ17 to VNĐ25.5 million per tonne depending on the type.

Hà said that the fertiliser prices in 2021-2022 increased rapidly by VNĐ1-1.9 million per tonne. However, China has started to open up the market and has not been limited to exporting 29 types of fertiliser, so the supply of fertiliser in the world market has been abundant, and fertiliser prices have also started to cool down.

For fertiliser supply for the winter-spring crop 2022-2023, at present, the production capacity of urea at four factories under the Vietnam Oil and Gas Group (PVN) and the Vietnam Chemical Group (Vinachem) has reached 2.5 million tonnes per year, while the domestic demand is only 1.6-1.8 million tonnes each year.

The domestic supply of phosphate-containing fertiliser and NPK fertiliser is higher than the local demand. However, Việt Nam still has to import about 40 per cent of DAP fertiliser and all potassium fertiliser volume to meet the domestic demand.

Vũ Xuân Hồng, deputy general director of Lâm Thao Fertiliser and Chemical Joint Stock Company, said that to ensure the supply and reasonable price of fertiliser for farmers, the company prepared before the Tết holiday a large volume of raw materials for production within at least three months, such as SA, sulfur, potassium. 

Lâm Thao expects to meet the supply for the agricultural production of the winter-spring crop 2022-2023 with over 30,000 tonnes of fertilisers of all kinds in store and a production output of nearly 2,000 tonnes of fertiliser per day, Hồng said. 

According to Hồng, to keep stability in fertiliser prices for farmers, Lâm Thao has found input materials with good prices, such as SA imported from the Middle East and Africa and urea imported from domestic factories.

With these efforts, the market prices of Lam Thao's fertiliser products are kept stable compared to the fourth quarter of 2022. 

Besides that, Lâm Thao has had efforts to reduce the cost of transporting fertiliser in the context of higher gasoline prices and handling costs.

Accordingly, the company has diversified forms of transporting fertiliser, including using cheaper transport means such as railway, waterway, and river instead of road transport as before, Hồng said.

According to Hoàng Văn Hồng, deputy director of the National Centre for Agricultural Promotion, the centre works closely with localities to guide farmers in using fertilisers reasonably, economically and effectively. It also encourages farmers to increase the use of organic fertilisers. VNS     LINK

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Henig:  SBV has not tightened credit into real estate: deputy governor

February, 09/2023 - 07:58

Deputy Governor of the State Bank of Việt Nam Đào Minh Tú dismissed the recent rumours from some associations that the central bank has been squeezing loans for this sector.

HÀ NỘI — The State Bank of Việt Nam (SBV) has not tightened credit into the real estate sector, Deputy Governor of the State Bank of Việt Nam Đào Minh Tú confirmed in a meeting with Vietnamese banks and property developers on Wednesday.

Tú dismissed the recent rumours from some associations that the central bank has been squeezing loans for this sector, saying that there has been no new document or statement issued on the matter.

"The SBV has put a grip on credit into some high-risk sectors and segments in the real estate, such as speculative investment and high-end segments with great value, which has the nature of a bubble, potentially threatening the system's safety," Tú said.

He said the real estate sector is one of the key industries that have largely contributed to the country's economic development.

However, the realty market has seen a growing supply and demand imbalance with an excess of high-end products, a lack of housing for middle- and low-income people, land fever in some localities and wrongdoings in the corporate bond market.

However, there is no tightening of credit in this sector, Tú reaffirmed.

The SBV's data shows credit balance for real estate businesses accounted for 21.2 per cent of the total credit outstanding of the whole economy worth VNĐ25.8 quadrillion (roughly US$109 billion) as of December 31, 2022 – the five-year high and the highest proportion in all industries.

Loans focused on consumer demand and self-use with a proportion of 68.7 per cent of total outstanding loans, up 31.1 per cent over the past year, and credit to real estate business accounted for 31.3 per cent, up 11.5 per cent.

By segment, credit balance for housing needs accounts for 62.2 per cent, land use rights 20.7 per cent, industrial parks and export processing zones 2.7 per cent, social housing 0.7 per cent and other fields 13.7 per cent.

"Therefore, it can be seen that credit institutions are still providing credit to the real estate sector with high growth and large outstanding loans. Feasible projects and loan plans are still provided capital following regulations," said Hà Thu Giang, director of SBV's Department of Credit for Economic Sectors.

Giang said there is no separate 'room' for the real estate, as the credit limit for the whole system is set to suit inflation control, and there will be no shortage of credit at the beginning of the year.

Proposals of property developers

At the meeting, property businesses also raised the difficulties and problems of the real estate market, focusing on legal issues.

According to Lê Hoàng Châu, chairman of the HCM City Real Estate Association, 'legal problems' account for 70 per cent of the difficulties of real estate businesses in accessing credit loans.

Next is the risk of private corporate bonds becoming 'bad debt' or credit loans' turning into bad debt groups'.

Châu explained this happens when a loan which is about to be due that, if not extended, will be classified as 'bad' debts, or businesses with overdue credit loans may be 'jumped' into a group of 'worse' debt. In addition, homebuyers now find it difficult to get credit.

Meanwhile, Phạm Thiếu Hoa, chairman of Vinhomes, proposed the SBV allow banks to finance purchasing, selling, depositing, and transferring contributed capital and shares in project investment companies and M&A activities.

At the same time, Hoa said that lending rates need to be adjusted in parallel with maintaining the collateral ratio as conventional loans for projects with a fully legal basis.

In addition, it is necessary to add specific mechanisms and policies for large investors and major projects with full legal stands to avoid the situation of 'levelling'.

Lê Trọng Khương, vice chairman of Hưng Thịnh Group and general director of Hưng Thịnh Land, also said that raising capital from bond issuance is an excellent source of money for businesses. However, at present, this channel is at an impasse.

To solve this bottleneck, he proposed that the SBV expand the 'credit room' so businesses can access more capital for business and investment.

According to Khương, interest rates currently stand at a very high level, affecting the price of products sold in the market. He hopes SBV and commercial banks may devise plans to push it down to support businesses to create affordable products for people.

In the future, to tackle difficulties and obstacles for real estate businesses and individuals when accessing credit, Tú said the SBV would continue to operate monetary policies proactively and flexibly, in line with fiscal policy and other macroeconomic policies, to support the economy, including the real estate sector.

The monetary authority will guide banks to increase credit securely and efficiently, providing economic capital and focusing on viable loan plans with good sales and payment ability, particularly in the real estate sector.

— VNS    LINK

Thursday "Vietnam News" Posted by Henig at KTFA 2-9-2023

Vietnam:

Henig:  Free trade deals yield bumper export year

06:00 | 09/02/2023

(VEN) - Effective use of Vietnam’s various free trade agreements (FTAs), especially of new-generation high-standard ones, has yielded a bumper year for exporters.

Increase recorded in markets

The value of 2022 import-export turnover, estimated at about US$750 billion, and the record trade surplus of more than US$11 billion, is being attributed largely to implementation of new-generation trade agreements Vietnam has signed in recent years. In fact, the FTAs have created opportunities to add value to key exported consumer goods.

According to To Hoai Nam, Secretary General of the Vietnam Association of Small and Medium Enterprises, after the shock of the COVID-19 pandemic, 2021 and 2022 exports to members of the 11-nation Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) show that businesses and industries have grasped the opportunities offered by the deal.

General Department of Vietnam Customs data show that roughly 50,000 small and medium-sized enterprises participate in exporting to CPTPP markets, reflecting the deal’s value for the participation of small and medium-sized enterprises in exports.

Since activation of the EU-Vietnam Free Trade Agreement (EVFTA) in August 2020, Vietnam’s exports have also grown by over 22.3 percent in the first 10 months of 2022 with a turnover of goods reaching more than US$39.4 billion. A series of key products, such as textiles, footwear, furniture and electronics have all attained high growth rates. The group of agricultural, forestry and fishery products also experienced growth, with some products (rice, seafood) which previously struggled to penetrate the EU market able to take advantage of EVFTA tax quota commitments to boost exports.

Almost two years since coming into force, and despite being significantly affected by the COVID-19 pandemic, the new-generation FTA between Vietnam and the UK (UKVFTA) has yielded a 15.4 percent growth of exports to the UK market.

The Regional Comprehensive Economic Partnership (RCEP) trade deal that entered into force on January 1, 2022, while not a new-generation agreement, has also yielded opportunities for Vietnam, especially in agriculture. The markets of the 10-nation Asia-Pacific trade agreement accounts for 40 percent of the Vietnam’s export turnover of agricultural, forestry and fishery products, and the terms of the deal provide agricultural enterprises with greater opportunities to expand exports, especially of advantageous products such as rice, coffee, pepper, cashew, seafood, timber and wood. RCEP operates under open regulations on the origin of goods, helping businesses take better advantage of incentives from partners. It also offers opportunities for manufacturers to import input materials, diversify supply sources and grades of quality at cheaper prices.

Preserving achievements

Despite the varied opportunities and advantages of these free trade agreements, exporters are expected to face challenges in accessing and expanding their markets in 2023.

Nguyen Tien Chuong, President of the Dong Nai Export Association, identifies inflation and increased costs as responsible for these business difficulties. Nguyen explains that consumption markets have slowed, many importers are cancelling or delaying the receipt of goods, leading to increased costs for storage and logistics. In addition, limited resources challenge small and medium-sized enterprises. In order to improve competitiveness, Nguyen urges support of enterprises in technological innovation, backed by capital and human resources. Absent these two factors, enterprises are hard pressed to grasp export opportunities.

According to Vu Chi Mai, Energy Consultant of the German Agency for International Cooperation (GIZ), “with an open economy like Vietnam, when participating in new generation FTAs of high standards such as CPTPP and EVFTA, especially to be able to export sustainably to the EU, the enterprises must consider producing goods with clean energy sources associated with environmental standards.”

International trade experts point to the increasing emphasis by Vietnam’s FTA partners on the agreements’ commitments to the environment, green transition, labor conditions and sustainable development. Therefore, Vietnamese enterprises are being advised to comply with the green production process in order to export products with clearly indicated origin, ensuring standards, environmental considerations, efficient use of resources, protection of the ecological environment and fair settlement of social problems and thereby helping Vietnam achieve sustainable exports.

Ngoc Thao     LINK

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Henig:  High rates hurting businesses, hamper economic recovery

February, 09/2023 - 07:01

High interest rates have been hurting businesses' ability to invest in ramping up production capacity, said industry insiders and economists.

HÀ NỘI High interest rates have been hurting the ability of businesses to recover and invest in ramping up production capacity, said industry insiders and economists.

Economists called for the central government to take measures to bring down the rates, which have been sitting around 10 per cent in recent months.

Trần Việt Anh, director-general of Nam Thái Sơn Import/Export JSC., said a majority of businesses were not interested in fresh loans but lower rates would be a significant help as they faced lower demand and struggled to keep workers.

"There are businesses with credit room but still reluctant to apply for loans due to high rates, which will contribute to higher operational costs," he added.

Even developers for social housing projects were not immune as they were forced to borrow at regular rates.

Lê Hữu Nghĩa, director of Lê Thành Construction JSC., said many social housing projects had to borrow at 14 per cent, roughly the same as other commercial projects. It certainly will not help bring down housing costs in the market.

Despite a directive from the State Bank of Vietnam to give preferential policies to social housing developers, commercial banks have been slow in implementing them, citing a lack of guidance from the central bank.

Nguyễn Ngọc Hòa, president of the HCM City Union of Business Associations (HUBA) said as current rates sit above 10 per cent, it's very unlikely for businesses to stay financially viable and stressed the need for measures by the central bank and the government to step in to bring it down in the next six months.

Hòa said a large portion of businesses uses their property assets as collaterals. As the property market has been hit with a cold spell, money have become difficult to come by as banks tightened their purse string.

Professor Trần Đình Thiên, former head of the Vietnam Institute of Economics, said as inflation started to pick up and numerous disruptions experienced by the domestic and the international markets, high rates have been making life difficult for businesses.

He said injecting money through public spending could be useful at a time like this but this channel has been known to be sluggish and inadequate in responding to market changes in a timely manner. Even public fund disbursements aimed at speeding up economic recovery have been slow due to a number of legal and framework barriers.

"There were always the same issues with our financial market and public investment we must address, especially with the corporate bond market and the stock market, to enhance trust and reduce risk across the banking system," Thiên said.

President of the Vietnam International Arbitration Centre Vũ Tiến Lộc said the country's long-term economic prospect depends a lot on the development of its business community. He stressed the importance of establishing a more streamlined and transparent framework for the financial market.

"Our businesses can only operate as well as the business environment allows. Improving business performance can only be done along with improving the business environment," he said.

Lộc called for the removal of cumbersome and unnecessary business conditions, stronger administrative reform and shorter import/export processing.

VNS    LINK

Henig:  Digital payment systems have massive growth potential: fintech leader

February, 09/2023 - 08:07

Nguyễn Đăng Hùng, head of the Fintech Club Việt Nam under the Việt Nam Banks Association, speaks to the Vietnam News Agency about this development.

Chip card transactions via the National Payment Corporation of Việt Nam (NAPAS) system nearly tripled in 2022, while the proportion of cash withdrawals processed through the NAPAS system decreased by half, as people transition from cash to other payment methods such as transfer, QR code scanning, swiping cards or using e-wallets. This result is thanks to the strong digital transformation in the payment field in the past years.

Nguyễn Đăng Hùng, head of the Fintech Club Việt Nam under the Việt Nam Banks Association, speaks to the Vietnam News Agency about this development.

How effective has digital transformation been in the payment field in recent years?

According to the State Bank of Việt Nam, non-cash payment transactions in 2022 increased by 85 per cent in volume and 31 per cent in value.

It can be seen that the transaction value and quantity are different, and there are many transactions with low values. But this low value is not a worry and is actually good news. Low-value transactions prove that people have used more non-cash payments than before.

It shows the strong growth rate of electronic transaction channels such as the internet, mobile phones, and QR code scanning.

The State Bank said the growth rate of electronic transactions reached 89 per cent via the internet and even gained triple-digit growth via mobile phones and QR code scanning. That means people are increasingly familiar with cashless payment methods and the use of cashless.

There are many concerns that when financial technology (fintech) companies are established, it will pressure the banking industry greatly. What is the current reality?

There is a view that establishing fintech companies will create competition with the banking sector. Still, I think establishing fintech companies will create cooperation, not competition, with the banking industry. They could have a synergy of strengths with partners and minimise their weaknesses.

Việt Nam has three fintech unicorns, with each value at over US$1 billion. These three companies have payment centres, including MOMO, VNPay, and ZaloPay.

Momo is an app that provides e-wallet services for tens of millions of Vietnamese people. MOMO has close cooperation with banks.

The second is VNPay. VNPay is a company licensed by the State Bank as a payment intermediary. It has many payment services related to QR code scanning and various other payment services based on mobile banking platforms. VNPay also has close cooperation with banks.

ZaloPay is also a payment intermediary based on the chat network - Zalo, as well as VNG Corporation, a billion-dollar technology company in Việt Nam.

The success of these three payment centres is based on close cooperation with banks.

NAPAS provides national payment infrastructure for all banks. It is also indispensable for the cooperation and sharing of the infrastructure between the banks themselves and the fintech companies.

In addition, there is the lending sector, including consumer finance companies such as FE credit or some other consumer lending companies and banks' lending companies. 

These companies all have close cooperation with banks. For example, FE credit cooperates with VPBank and Vietcredit cooperates with Viet Capital Bank. Fintech companies and banks cooperate among them to take advantage of banks' capital, experience and technology from the fintech firms.

High-tech crime is increasing. Is this the biggest challenge for banks and fintech companies in the digital transformation progress?

When banks and financial companies deploy digital transformation or launch new services using financial and banking technology, there are requirements for cybercrime prevention and combat. 

Companies are willing to invest in biometric technology to ensure that the right users use these services. There are often vulnerability scanning and cooperation with different cybersecurity companies to prevent high-tech crimes.

However, if the user is not worrying when sharing a pin code or transferring money to a stranger, there is no way to prevent deceptive crimes using high-tech. Even if the investment in technology and security measures is so large. 

Therefore, banks and financial companies need to coordinate with the media to share information about guidance on using high-tech banking services with the users and their customers. Then, they could recognise the dangers and risks of using such high-tech services and protect themselves.

What is the growth potential of digital payment and the digital ecosystem in Việt Nam?

Việt Nam's developing economy has shifted from agriculture to industry and services. This brings a huge development opportunity for the digital transformation field, optimising all activities in the social-economic development.

The government's national digital transformation programmes have set targets that the digital economy will account for 20 per cent of GDP by 2025 and 30 per cent by 2030.

According to a forecast by the International Monetary Fund (IMF), Việt Nam's economy will rise to the third position in the ASEAN region by 2025 with a GDP of about $570 billion.

That means in 2025, the digital economy will reach a value of about $114 billion, or 20 per cent of $570 billion. This is an extremely large number, showing the great potential in digital transformation and the digital payment field for all businesses.

In addition, the Government has licensed Mobile Money with the expectation that mobile money services will be popular in cities and can reach remote and rural areas.

The most recent is payment services using QR codes. This is the story of financial universalisation not only in the city, big markets and supermarkets but also in night markets and tourist areas in rural and remote areas. The use of QR code payment methods has the support of the internet and mobile phones. 

It is expected a great development of digital transformation in rural areas as well as in the agricultural sector.

What do banks, fintech companies, and payment intermediaries need to do to take advantage of that opportunity effectively?

The banks and payment intermediary companies have an important role in the payment stage of the digital transformation value chain. 

For example, Việt Nam has level-4 public service payment with an online payment service. With level-3, people still have to go towards and the State treasury to pay cash.

With the payment of social insurance and pensions, people only need to provide their account numbers, and they can check their money through the internet or mobile devices anywhere.

Payment plays an important role in the digital transformation process.

Those show that banks and payment intermediaries have taken full opportunities to promote the development of digital transformation.

If the banks and payment intermediaries have significant investments in technology, innovate technology and quickly deploy new digital applications, they will succeed in taking the most of the opportunities to develop digital payment.

What are your proposals to solve the current difficulties to accelerate the digital transformation in the fintech and banking sectors?

The Government has issued a national digital transformation programme by 2025 with a vision to 2030. The Government is willing to create policies so that the fintech companies can test the new technologies. 

In the payment sector, the State Bank has developed a new draft decree providing a controlled testing mechanism (sandbox) for fintech activities in the banking industry.

Currently, Việt Nam has 154 fintech companies, of which about 50 fintech companies are payment intermediaries managed by the State Bank. 

Fintech companies and banks hope this draft decree will be issued soon to protect their customers from risks in payment services.

For the draft of Decree 101 on non-cash payments, a law in the field of payment, the State Bank is compiling a draft on amending many items in this decree, including cross-border payments and banks' agencies.

If this draft is issued, I believe it will remove difficulties and create a basic legal corridor for consumer finance companies and banks to do business favourably while protecting consumers from risks.

VNS    LINK

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Henig:  Shares recover on strong buying force

February, 09/2023 - 05:17

Shares recovered on Wednesday thanks to strong buying force, bolstering many large-caps to grow.

HÀ NỘI Shares recovered on Wednesday thanks to strong buying force, bolstering many large-caps.

On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index rose 0.6 per cent to close the day at 1,072.22 points. The southern bourse’s index decreased 2.15 per cent on Tuesday.

Some 569.3 million shares were traded on the southern bourse, worth VNĐ10 trillion (US$423.7 million).

Market breadth was positive with 210 gainers and 188 losers.

According to Lê Đức Khánh, Director of Analysis - Director of Investment Capacity Development, VPS Securities Joint Stock Company, for the stock market, the most difficult period has passed when the VN-Index fell deeply from the peak.

However, in the current context, when interest rates are high, cash flow in the stock market is unlikely to return to the peak like in the 2020-2021 period. Accordingly, during this period and in the first half of 2023, the market is accumulating, causing small fluctuations.

The VN-30 Index, tracking the 30 biggest stocks on HoSE, rose 0.36 per cent to close at 1,073.38 points.

In the VN-30 basket, the biggest gainers included Hoà Phát Group (HPG), Bảo Việt Holdings (BVH), FPT Corporation (FPT), PetroVietnam Gas JSC (GAS), SSI Securities Inc (SSI), HD Bank (HDB), and Viet Nam International Commercial JS Bank (VIB).

Masan Group (MSN), Vietjet (VJC), Mobile World Group (MWG), Vinhomes (VHM) were among the losers.

In the banking group, most of the stocks moved up with gainers including Military Bank (MBB), Vietcombank (VCB), Saigon-Hanoi Commercial JS Bank (SHB), Tiên Phong Bank (TPB), Bank for Investment and Development of Việt Nam (BID), VietinBank (CTG) and Techcombank (TCB).

Energy stocks also performed positively with gainers such as PetroVietnam Technical Services Corporation (PVS), PetroVietnam Drilling and Well Services Corporation (PVD) and Drilling Mud Joint Stock Corporation (PVC).

On the Hà Nội Stock Exchange, the HNX-Index gained 0.30 per cent to close at 210.62 points.

Trading value on the northern exchange reached VNĐ865 billion, with a trading volume of 61.5 million shares.

VNS  LINK

Some "Vietnam News" Posted by Henig at KTFA 2-8-2023

Vietnam:

Henig:  Positive signs for Vietnam’s labour market

07:00 | 08/02/2023

Vietnam will continue to be affected by a labour shortage in the first and second quarters of 2023, but the deficit is not great and is mainly present in labour-intensive sectors such as garments, leather, and some export-led industries, especially in foreign-invested enterprises.

In the meantime, there is a demand for about 350,000-400,000 highly skilled workers. As the economic situation is projected to continue improving, the labour market is expected to recover and the demand for workers will rise again.

According to the Ho Chi Minh City Human Resources Forecast and Labour Market Information Centre, nearly 70% of the demand for new workers in 2023 will come from the services sector, while the remaining 30% will come from industry and construction.

Regarding educational levels, the demand for workers with college and university degrees accounts for nearly 38%.

In 2023, enterprises will look for flexible candidates who can take on any new job, said employment experts, adding that employers will offer new benefits to their workers.

According to Minister of Labour, Invalids and Social Affairs Dao Ngoc Dung, Vietnam’s labour market is relatively stable now in terms of both size and quality and the shortage only affects some sectors.

Source: NDO    LINK

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Henig:  Despite decelerating, phone exports still have long-term prospects

February, 08/2023 - 09:11

Phones and components achieved an export turnover of US$57.9 billion last year, a year-on-year increase of only 0.8 per cent.

HÀ NỘI — The export of phones and components increased by less than 1 per cent year-on-year and is forecast to continue to face difficulties this year due to the impact of inflation in many countries around the world.

Phones and components achieved an export turnover of US$57.9 billion last year, a year-on-year increase of only 0.8 per cent, according to the latest data from the General Department of Customs.

Exports to China reached $16.26 billion, up 7.1 per cent; to the US reached $11.88 billion, up 22.5 per cent; to the EU reached $6.7 billion, down 15.1 per cent; to South Korea reached $5.05 billion, up 5.3 per cent.

The phone exports grew slowly in the last months of last year, when export orders declined sharply due to the impact of economic slowdown and inflation in many major import markets of the country such as the US, EU, and Japan.

Particularly in December, the export turnover of this item reached $3.1 billion, down 31.4 per cent from the previous month.

A report by HSBC said that after more than two years of booming trade, a period of "stagnation" has come to Vietnamese key export industries since the fourth quarter of last year.

Global orders fell sharply, affecting Asian exporters and Việt Nam was no exception.

Among the key export sectors of Việt Nam, including textiles, footwear, computers, furniture, mobile phone export has the largest influence.

Accounting for an increasingly large proportion (over 17 per cent) of the country's total export turnover, the growth of phones and components has a great influence on the overall export growth.

However, over 95 per cent of the export turnover of this product belongs to FDI enterprises.

HSBC pointed out that the reason for the decline in exports in the last month of last year came from the electronics sector, which accounts for about 35 per cent of Việt Nam's total export turnover.

New electronic orders in the world have begun to decline sharply from the second half of last year, affecting the consumer electronics sector more than industrial products.

The impact occurs on a large scale in the three main export destinations of Việt Nam, the US, China and Europe.

Exports are still facing "headwinds" in the first month of the new year and it is forecast that the drag on exports will at least last until the end of the second quarter.

The export turnover of phones reached US$4 billion last month, down 19.6 per cent over the same period.

Việt Nam was badly affected when global trade slowed, seeing its exports drop significantly for the first time compared to the past two years.

In particular, the decline stems from the economic downturn in the US, the largest export destination of Việt Nam, followed by the EU.

Although decelerating, in the medium and long term, the phone and component manufacturing industry is still "leading" in terms of exports, because up to now, this field has attracted a huge amount of FDI into production.

Samsung alone has accumulated capital in Việt Nam reaching $18.2 billion.

In recent years, the electronics and phone manufacturing industry has had many opportunities to welcome the investment wave from large technology corporations to move to Việt Nam.

A series of large outsourcing partners of Apple and LG such as Foxconn, Luxshare, GoerTek, and Compal all have factories located in Việt Nam or have relocated from China, creating an increasingly large production and supply capacity, making Việt Nam an important export address in the production chain of this industry on the global map.

The export turnover of the group of phones and components increased by 9.2 times from 2010 to 2013, becoming the group with the highest export value and this position has been maintained continuously since 2013.

When Việt Nam became the world's new production base, billions of dollars of FDI inflows from global corporations and businesses poured in, along with extensive opening and integration with the world through a system of free trade agreements (FTA), the export value of key manufacturing industries from phones and components increased every year.

In the two years of 2021 - 2022, although the economy was greatly affected by the COVID-19 pandemic, this group of goods still achieved a high and stable growth rate, and the export value continued to grow sharply, reaching $57.5 and $57.9 billion respectively, accounting for over 17 per cent of total export turnover.

— VNS    LINK

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Henig:  Bond market remains quiet this year: VCBS

February, 08/2023 - 09:12

The scale of debt in the corporate bond market is less than 15 per cent of GDP.

HÀ NỘI — The value of corporate bonds maturing in 2023 is estimated at VNĐ250 trillion, falling sharply compared to the third quarter of 2022.

The scale of debt in the corporate bond market is less than 15 per cent of GDP. Particularly, private corporate bonds make up 12.5 per cent of GDP, equivalent to VNĐ1.19 quadrillion, which is still a modest amount compared to other countries in the region and also far from the target set by 2025.

However, with the developments of the market last year, Vietcombank Securities Company (VCBS) said that professional bond investors were unlikely to return to the market this year.

The securities firm expected the size of the market to continue to shrink this year due to Decree 65's restrictions on new issuance and restructured issuance, and high new issuance costs. In addition, the volume of bonds bought back before maturity also reduces the market's overall size.

Other reasons are the medium-term maturity pressure on the market due to large maturity volume, low possibility of new issuance and existing interest rate uptrend.

According to VCBS estimates, the volume of corporate bonds maturing in 2023 is estimated at VNĐ250 trillion, a significant decrease compared to the third quarter of 2022 due to the proactive repurchase before maturity.

In particular, the acquisition value of the banking and real estate industries in the fourth quarter reached VNĐ35 trillion and VNĐ24 trillion, respectively.

However, the trend of repurchasing before maturity helps enterprises and issuers be more proactive in bond capital payment demand. The move also shows significant efforts to arrange capital, and reduce pressure on bond maturity in the near future.

Moreover, high interest rate base and low investors' confidence in the corporate bond market will make the market less appealing when considering risks and benefits.

For institutional investors, the investment demand for corporate bonds is also forecast to decrease as risk levels are expected to rise and the government bond investment channel has returned to an attractive valuation compared to many years ago, causing a fall in the competitiveness of the corporate bond channel.

In 2023, the inspection and supervision activities of issuing bonds in large quantities, without collateral, and using capital for improper purposes, will affect the offering and issuance listing and trading activities. And securities investment and stock market will still be boosted.

2023 is also the year to accelerate the restructuring activities of bonds that will be due soon.

In general, VCBS believes that the corporate bond market will continue to be in a quiet period with low liquidity.

— VNS   LINK

Henig:  Industrial production: Achievements and lessons

06:00 | 08/02/2023

(VEN) - The 2022 industrial output has been impressive, but continued innovation as well as production and supply network recovery are vital to ensure a more sustainable path in 2023.

Industrial output surge

According to the Ministry of Industry and Trade (MoIT), industrial production faced numerous challenges in 2022 owing to a rise in raw material and logistics costs, and a decline in global demand for some non-essential consumer goods, among other factors. Many other essential industries, however, are still blooming.

The industrial output index climbed by 8.6 percent in the first 11 months of 2022 compared to the same period last year, with the production index of several significant sectors experiencing a notable surge. Beverage production rose 31 percent; clothing, 16.4 percent; leather, 16.7 percent; drugs and pharmaceuticals, 17.5 percent; machinery and equipment, 16.3 percent; wood and bamboo made products, 18.4 percent; electrical equipment, 12.8 percent.

Electronic items, particularly mobile phones, contribute the most to Vietnam's total export value. Instead of only making mobile phones, Vietnam is expanding its supply chain and becoming more involved in the value chain.

On November 25, 2022, for the first time in history, VinFast transported 999 VF 8 electric cars to the United States, affirming the domestic auto industry’s production capability and product quality and its capacity to participate and compete in the global value chain.

Pham Tuan Anh, Deputy Director of the MoIT’s Industry Agency, said that in order to secure sufficient raw materials for production and consumption, his department was focused on removing bottlenecks and aiding enterprises in locating alternative sources at competitive costs.

(VEN) - The 2022 industrial output has been impressive, but continued innovation as well as production and supply network recovery are vital to ensure a more sustainable path in 2023.

Industrial output surge

According to the Ministry of Industry and Trade (MoIT), industrial production faced numerous challenges in 2022 owing to a rise in raw material and logistics costs, and a decline in global demand for some non-essential consumer goods, among other factors. Many other essential industries, however, are still blooming.

The industrial output index climbed by 8.6 percent in the first 11 months of 2022 compared to the same period last year, with the production index of several significant sectors experiencing a notable surge. Beverage production rose 31 percent; clothing, 16.4 percent; leather, 16.7 percent; drugs and pharmaceuticals, 17.5 percent; machinery and equipment, 16.3 percent; wood and bamboo made products, 18.4 percent; electrical equipment, 12.8 percent.

Electronic items, particularly mobile phones, contribute the most to Vietnam's total export value. Instead of only making mobile phones, Vietnam is expanding its supply chain and becoming more involved in the value chain.

On November 25, 2022, for the first time in history, VinFast transported 999 VF 8 electric cars to the United States, affirming the domestic auto industry’s production capability and product quality and its capacity to participate and compete in the global value chain.

Pham Tuan Anh, Deputy Director of the MoIT’s Industry Agency, said that in order to secure sufficient raw materials for production and consumption, his department was focused on removing bottlenecks and aiding enterprises in locating alternative sources at competitive costs.

In 2023, the Ministry of Industry and Trade will focus on developing human resources, speeding up the adoption of cutting-edge technologies, helping businesses through digital transformation, and fostering the growth of smart production in strategic, pioneering, and priority sectors.

Lan Anh    LINK

Tuesday "Vietnam News" Posted by Henig at KTFA 2-7-2023

KTFA: Vietnam

Henig: Businesses exporting medicinal herbs to China required to register

13:05 | 06/02/2023

Vietnamese businesses which want to export medicinal herbs to China must submit information about growing areas and packaging establishments to the provincial Departments of Agriculture and Rural Development.

The departments were required to report to the Plant Protection Department under the Ministry of Agriculture and Rural Development by April 15, 2023.

The Vietnamese authority will the work with the General Administration of Customs of China (GACC) to grant export licences to eligible exporters.

According to the Plant Protection Department, GACC has informed it about China’s plan to review the supervision system for exported medicinal herbs and the registration of enterprises which produce, process and preserve medicinal herbs for export to China.

To meet the requirements of the Chinese side and minimise its impacts on the export of Vietnamese medicinal herbs to the market, the Plant Protection Department asked agencies to review the growing areas and packing facilities of medicinal herbs.

Source: VNA    LINK

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Henig:  Trade ministry to support enterprises in boosting exports

February, 07/2023 - 08:01

The Trade Promotion Agency under the Ministry of Industry and Trade (MoIT) will collaborate with relevant agencies in carrying out measures to help enterprises expand their shares in foreign markets, said Vũ Bá Phú, head of the agency.

HÀ NỘI The Trade Promotion Agency under the Ministry of Industry and Trade (MoIT) will collaborate with relevant agencies in carrying out measures to help enterprises expand their shares in foreign markets, said Vũ Bá Phú, head of the agency.

Localities will get support relating to trade promotion activities in key markets, the official told Sài Gòn Giải Phóng (Liberated Saigon) newspaper.

Support programmes will be devised, aiming to improve the capacity for enterprises to meet the trend of green trade, he said, adding the MoIT will also facilitate the connection between businesses and localities.

Attention will be paid to enhancing the effectiveness of the National Brand Programme, thus helping enterprises’ products go deeper into global supply chains.

According to the MoIT, the total import-export turnover of Việt Nam reached US$732 billion last year, up 10 per cent year-on-year.

Minister Trần Hồng Diên said rising inflation, energy shortages and disruptions of raw material supply chains in many countries will result in a decline in orders. This will have a negative impact on Việt Nam’s economy, he noted.

To maintain traditional export markets as well as expand new ones, it is necessary for enterprises to grasp market signals, the minister said, noting that Vietnamese trade offices abroad play a vital role in collecting market information and providing it for enterprises, associations and localities.

Trần Công Quỳnh, Vietnamese Trade Counsellor in Canada, said her trade office is working with the textile, garment, footwear and food processing associations in the host country to capture demand for importing goods from Việt Nam. A delegation of Canadian businesses is expected to arrive in Việt Nam to explore opportunities in this regard, she revealed.

A representative of a Vietnamese trade office in Europe said preparations are underway to bring domestic trade promotion delegations to international trade fairs in this continent, including Global Seafood Expo 2023 from April 25-27 in Barcelona, Spain and Fruit Attraction 2023 from October 3-5 in Madrid. VNS   LINK

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Henig:  M&A 2023 prospects looking up

06:00 | 07/02/2023

Although the market for mergers and acquisitions (M&A) in Vietnam decelerated in 2022, many economists are looking ahead to plentiful prospects for 2023

From quantity to quality

In its most recent report, the Ministry of Industry and Trade's Vietnam Competition and Consumer Authority (VCCA) found that M&A activities encountered significant challenges in Vietnam and around the world. It noted that the world is experiencing rising inflation and economic contraction, and that interest rate hikes to combat inflation have driven up the price of M&A. With the securities market in constant flux, reaching an agreement on the value of M&A deals has also posed challenges.

2022 saw a decline in M&A compared to the pre-pandemic levels, according to economists. However, the quality of M&A deals improved at a faster rate than the quantity, with investors shifting their focus from "opportunity" to "strategy" in favor of creating long-term profit rather than capitalizing on opportunities that present themselves on temporary terms.

Data from KPMG Vietnam show that in the first 10 months of 2022, the total value of M&A deals reached US$5.7 billion, down 35.3 per cent compared to the same period in 2021. Singapore is the leading country in cross-border transactions with about US$1.2 billion, followed by the US with US$570 million and the Republic of Korea (RoK) with US$370 million. The average size for a transaction of published value has decreased from US$31.1 million in 2021 to US$16.5 million in the first 10 months of 2022.

M&A activity has been relatively dormant among domestic firms until recently. In a reversal, domestic investors are increasing their share of deal value compared to their overseas counterparts. In 2022, investors from Singapore, the US, the RoK, and Spain (the top five investors in the M&A market) typically contributed some 40 percent to the overall deal value.

Future M&A drivers

Tran Quoc Phuong, Deputy Minister of Planning and Investment, said maintaining political stability, economic growth and macroeconomic stability, inflation control, and business investment environment improvement will be an important foundation to both attract and promote investment.

“These will be big drivers for Vietnam’s economic growth in 2023, and the driving force for Vietnam’s M&A market to develop. The recent slowdown of such activities in Vietnam is expected to be short-term and will recover soon. The market in the country has always been assessed as a safe and attractive market to activate new opportunities,” Phuong said.

Dr. Nguyen Cong Ai, Deputy General Director at KPMG Vietnam, foresees three drivers of M&A expansion in 2023 and 2024. He pointed particularly to the sustainable energy development trend gaining increasing traction in Vietnam, and the country’s wave of digital change and innovation. The middle class is also growing quickly, creating a promising consumer market. Therefore, investors with adequate funds will soon be able to purchase attractive projects at reasonable prices. Ai believes that when interest rates rise and liquidity decreases, foreign investors will contribute more than ever before.

On the same note, Dr. Le Duc Khanh, Investment Capability Development Director of VPS Securities Joint Stock Company agrees that many businesses are facing difficulties, forcing them to restructure or liquidate valuable assets. Therefore, 2023 will likely be a hectic year for M&A in the finance, real estate, technology, science, consumer goods, and retail industries.

According to economists, numerous new investors will enter the Vietnam M&A market. Middle Eastern investment institutions, for example, seeking to alter the economic structure and reduce reliance on oil, are supporting investments in startups and renewable energy. Therefore, investors from the Middle East will invest in developing nations with high growth rates, such as Vietnam.

Future M&A in Vietnam will be primarily focused on digital transformation, clean energy, the consumer market, and ESG (environment, social, and governance) awareness.

Ngan Thuong    LINK

Henig:  Việt Nam wrestles with labour productivity issue when heading to innovation-based development

February, 07/2023 - 08:50

Rasing labour productivity is key to Việt Nam's sustainable development strategy by 2030.

*Võ Trí Thành

Việt Nam achieved and exceeded 14 out of 15 targets assigned by the National Assembly for 2022 with many impressive numbers including GDP growth, export turnover and the number of newly-established and re-opened businesses. Only labour productivity was under expectations.

Việt Nam’s labour productivity was expected to increase by between 4.7 per cent and 5.2 per cent on average in 2022, higher than the average growth rate of 4.7 per cent in 2021 but behind the target of 5.6 per cent set for the whole of 2022.

On January 10 this year, the Government issued Resolution No 06/NQ-CP on the development of a modern, efficient, sustainable and integrated labour market serving quick socio-economic recovery, setting the average labour productivity target for 2023 at more than 6.5 per cent.

Labour productivity is an important economic indicator that is closely linked to economic growth, competitiveness and living standards within an economy. According to International Labour Organisation (ILO), labour productivity represents the total volume of output (measured in terms of Gross Domestic Product, GDP) produced per unit of labour (measured in terms of the number of employed persons or hours worked) during a given time period. This indicator provides general information about the efficiency and quality of human capital in the production process.

Paul Krugman has said: “Productivity isn’t everything, but in the long run it is almost everything.”

After more than 35 years of implementing Đổi Mới (Renewal) policy, Việt Nam has made remarkable achievements in socio-economic development. The economy has continuously grown positively for many decades, averaging 6.8 per cent during 2016-19. Even in challenging times due to the COVID-19 pandemic, Việt Nam's economy still maintained positive growth.

Despite 2022 being a tumultuous year for the world economy, Việt Nam’s economy still grew by over 8 per cent, the highest pace since 1997.

The process of renovating the growth model has also witnessed important initial results towards gradually reducing dependence on the exploitation of natural resources, raw exports and cheap labour and slowly turning to the strong application of science, technology and innovation.

The Vietnam 2035 Report (World Bank, 2016) emphasises Việt Nam's aspirations of modernity, industrialisation and a higher quality of life on “three pillars: balancing economic prosperity with environmental sustainability, promoting equity and social inclusion, and bolstering the state’s capacity and accountability. The rapid growth needed to achieve these aspirations will be sustained only if it stands on faster productivity growth and reflects the costs of environmental degradation.”

In its draft project on the national programme on increasing labour productivity to 2030, the Ministry of Planning and Investment in December 2022 pointed out Việt Nam’s labour productivity improved relatively quickly and continuously in the period of 2011-21, increasing 2.5 times from VNĐ70.3 million (US$3,004) per employee in 2011 to VNĐ172.8 million ($7,385) per employee in 2021. The average growth rate of labour productivity in 2011-20 reached 6 per cent. However, the growth rate was not stable and has shown signs of slowing down.

In 2020 and 2021 when Việt Nam was hit hard by the COVID-19, Việt Nam's labour productivity grew by 5 per cent and 3.8 per cent, respectively. World Bank data shows that although Việt Nam's labour productivity has improved relatively quickly in the 2011-21 period, it is still low compared to other countries in the region in absolute terms.

By 2021, Việt Nam's labour productivity reached $18,792, equivalent to 10.25 per cent of Singapore, 14.20 per cent of Brunei, 24.32 per cent of Japan, 22.67 per cent of South Korea, 33.02 per cent for Malaysia and 59.15 per cent for Thailand. In Southeast Asia, Việt Nam's labour productivity is only higher than that of Laos, Cambodia, Myanmar and East Timor. In addition, the Asian Productivity Organisation Report (APO, 2020) also shows that Việt Nam's labour productivity lags by 60 years behind Japan, 40 years behind Malaysia and 10 years behind Thailand.

Việt Nam has searched for solutions to boost labour productivity quickly and sustainably. However, the pandemic in the past three years has significantly affected the implementation of this task.

The report on the evaluation of the five-year socio-economic development during 2016-20 and the tasks for the next five years recognised: “Science, technology and innovation have yet to become a driving force to improve labour productivity, competitiveness and promote socio-economic development. Labour productivity remains much lower than in other countries in the region and the gap continues to widen.”

Most recently, the 2022 Global Innovation Index Report of the World Intellectual Property Organisation (WIPO) ranked Việt Nam at 48th out of 132 countries and economies, a slip of four places compared to 2021, although it was still among the group that has made the greatest progress over the past decade and was one of only three middle-income economies (along with Iran and the Philippines) to have the highest innovation performance in 2022.

The Government’s leader Phạm Minh Chính has affirmed that increasing labour productivity is an important factor to improve the competitiveness, independence and self-reliance of the economy. Việt Nam’s labour productivity has improved significantly but not fast enough to close the gap with other countries in the region.

Prime Minister pointed out the main reasons including inadequate awareness and investment for this task while the quality of human resources is still limited. The growth rate of trained workers, especially those with degrees and certificates, is still low along with backward technology and unreasonable economic structure.

The Government is expected to approve the MPI’s proposal on the National Programme on increasing labour productivity to 2030 with some key targets including raising the average labour productivity growth by 6.5-7 per cent/year, of which the growth rate of the processing and manufacturing industry is 6.5-7 per cent/year; of agriculture, forestry and fishery at 7-8 per cent/year; of service sector at 7-7.5 per cent/year; the labour productivity growth rate of key economic regions and five centrally-run cities is higher than the national average labour productivity growth rate in the 2022-30 period.

The project also targets to increase the proportion of contributions of science, technology, and innovation to the growth of total factor productivity (TFP) to 45 per cent of GDP by 2025 and 50 per cent by 2030.

By 2025, investment in science and technology will reach 1.2-1.5 per cent of GDP. By 2030, the number of enterprises meeting the criteria of science and technology enterprises and the number of innovative start-ups will increase by two-fold compared to 2020; the rate of enterprises having innovative activities reached 40 per cent of the total number of enterprises.

In terms of international standards, Việt Nam will strive to be listed in the top 40 countries ranked by the Global Innovation Index by 2025 and the top 60 of the United Nations e-Government Development Index (EGDI). It will also strive to be in the leading group of ASEAN in terms of labour productivity growth by 2030.

To realise these goals, besides many solutions such as improving the business investment environment to attract both foreign and domestic investment in high-added value industries, enhancing the competitiveness of industries, and developing regional economic linkage, the policies should focus on two key areas - the quality of human resources and promoting science and technology, innovation and digital transformation.

Việt Nam needs to build a strategy for developing human resources to meet the requirements of the Industry 4.0 and digital transformation through completing mechanisms and policies for labour market development towards greater flexibility and integration through strengthening employment services to connect workers with employers and standardise vocational training qualifications according to national and international vocational skills standards.

The country should develop mechanisms and policies to attract overseas Vietnamese experts, intellectuals and workers to return to work in Việt Nam, participate in innovation activities, cooperate in capacity building and improving labour productivity in Việt Nam, expand the network of links and promulgating policies to encourage the use of Vietnamese talents abroad.

With regard to innovation, the policymakers are expected to amend and supplement legal documents related to science, technology and innovation to remove difficulties and create a favourable environment for businesses, especially small and medium enterprises to innovate, perfecting the policy of socialising investment resources for scientific research, technology development and innovation, promote the policy of commercialising research results, technology development and improvement. VNS    LINK

Some Monday "Vietnam News" Posted by Henig at KTFA 2-6-2023

KTFA:

Henig:  Vietnam’s retail sales forecast to reach 350 billion USD by 2025

08:00 | 06/02/2023

The scale of the domestic retail market is expected to increase from 142 billion USD at present to 350 billion USD by 2025, contributing 59 per cent of the national GDP, according to the Ministry of Industry and Trade (MoIT).

Last year, the total revenue from retail sales of goods and services rose 21 per cent, exceeding the target of 8 per cent.

A survey by Vietnam Report showed that over 53.8 per cent of total retail firms enjoyed similar and higher business results compared to the pre-pandemic level.

Experts held that growth of retail sales is being supported by rise in income and the strong recovery of the tourism sector as well as relevant sectors such as transport and accommodations, as well as the effectiveness of inflation control measures.

There are signs of vibrant retail activities as many foreign investors have announced their plans to return after COVID-19.

Recently, Thailand’s Central Retail said that it will pump an additional 20 trillion VND (852.87 million USD) into the Vietnamese market in the next five years, pushing its investments in Vietnam in the 2022-2026 period to 65 trillion VND. With this plan, Central Retail will raise their coverage from 40 localities currently to 55.

Meanwhile, Japanese giant retailer Aeon Group plans to build another megamall in Hanoi, raising its total trade centres in Vietnam to 20.

In 2023, four trade centres are scheduled to be launched - Central Premium Plaza, Vincom Megamall Grand Park, Sunrise City Central and Emart 2 with a total area of over 116,000 sq.m.

Many experts predicted that this year, retailers will expand their selling channels, bringing their products to different trading platforms to optimise online retail channels.

Vietnam’s total retail sales of goods and services in January was estimated at 544.8 trillion VND, up 5.2 per cent from the previous month and 20 per cent as compared with the same period last year, according to the General Statistics Office (GSO).

The office explained that the hike was attributed to the growing consumption demand as Tet (Lunar New Year), the biggest and longest festival in the Southeast Asian nation, fell in the month.

Of the total, the retail sales of goods were 435.4 trillion VND, a year-on-year rise of 18.1 per cent, with the biggest increase seen in garments (27 per cent).

Source: VNA   LINK

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Henig:  Market expected to move in a narrow range this week

February, 06/2023 - 08:15

The market needs a period of accumulation in a narrow range to create a solid foundation before a new uptrend can be created.

HÀ NỘI — The Vietnamese stock market struggled following the Tết holiday, but liquidity improved as selling pressure increased, reflecting investors' desire for profit-taking. However, experts remain positive about the market's development in the future.

The market benchmark VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) ended last week at 1,077.15 points, while the HNX-Index on the Hà Nội Stock Exchange (HNX) was at 215.28 points.

For the week, both indices recorded a weekly loss, with the former losing 3.6 per cent and the latter down 2.5 per cent.

Trading value on the main exchange HoSE increased by 23.1 per cent compared to the previous five trading sessions to nearly VNĐ66.65 trillion (US$2.8 billion), corresponding to a 25.1 per cent gain in trading volume to over 3.6 billion shares.

Similarly, the trading value on the HNX also advanced by 38.6 per cent to VNĐ6.9 trillion, equivalent to a 40 per cent increase in trading volume to 469 million shares.

The market's correction caused most of the stock industries to decline. Of which, financial stocks dipped the most with 4.8 per cent in market capitalisation, followed by realty and information technology stocks.

Foreign investors were net buyers on both exchanges last week, worth more than VNĐ1.8 trillion, supporting the overall market. In terms of net volume, they bought Hoà Phát Group (HoSE: HPG) most with 39.7 million shares.

Others were fund certificates FUEVFVND and Sacombank (STB) shares with 13 and 12.9 million units, respectively.

On the contrary, Sieu Thanh Corporation (ST8) was sold the most with 6.4 million shares.

Analysts from Saigon - Hanoi Securities JSC (SHS) said that last week was a strong correction week for the market as the VN-Index dropped more than 40 points during the week and closed at 1,077.15 points. The market has entered a correction week after four weeks of consecutive gains since the beginning of 2023.

However, SHS believes that the market is in a recovery phase after escaping the downtrend but failing to establish an uptrend immediately. The market needs a period of accumulation in a narrow range to create a solid foundation before a new uptrend can be created.

In the short term, SHS believes that last week’s correction was predictable and necessary to accumulate more, and the recovery wave may not be over. And after the correction period, the VN-Index may still reach the level of 1,150 points, the securities firm added.

The current phase of the market is in a recovery wave with a wide range after a downtrend, and gradually the market will fluctuate less and less to accumulate. However, in the accumulation phase, more and more medium- and long-term investment opportunities will form, especially in the group of strong stocks that are less affected by the recent downtrend and those that recover earlier and tend to break the peaks.

Meanwhile, VCB Securities Company (VCBS) said that the short-term risks of the VN-Index will be reduced temporarily.

It is highly likely that the market will continue to fluctuate in a narrow range and that there will be a clearer divergence among groups of stocks in the coming sessions. In that case, the rebound of demand might help the VN-Index jump after touching the MA20 crossover area.

"Investors can disburse capital with a proportion of 10-15 per cent for large-cap banking ticker symbols, and that tends to lead the general market to recover," said VCBS.

— VNS    LINK

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Henig:  E-wallet market in Việt Nam estimated to reach 50 million users by 2024

February, 06/2023 - 08:53

The modern e-wallet market in Việt Nam is surging and is expected to reach 50 million active users by July 2024, experts said.

HCM CITY — The modern e-wallet market in Việt Nam is surging and is expected to reach 50 million active users by July 2024, experts said.

In a report, Robocash Group said: “the modern e-wallet market in Việt Nam is booming with 90 per cent of the market falling on three wallets: Momo, Moca and ZaloPay.”

The country is seeing tough competition, given that there are 40 electronic wallets in operation, the report said.

Robocash Group estimates that by July 2024, the e-wallet market will have 50 million active users, 100 million by May 2026, and 150 million by July 2030.

In addition to the already mentioned wallets, there are three other major competitors including ShopeePay (AirPay), ViettelPay and VNPT Pay. The top six already account for 99 per cent of the market. 

According to a Decision Lab study, at the end of 2021, 56 per cent of the Vietnamese population that had an e-wallet use Momo. The portion is 17 per cent for Shopee Pay, 14 per cent for Zalo Pay, 8 per cent for ViettelPay, 2 per cent for Moca and 1 per cent for VNPT Pay.

Robocash analysts observed that over the past four years, the number of active users has increased by an impressive 330 per cent, from 12.3 million to 41.3 million.

About 57 per cent of the country’s adult population actively uses e-wallets, in contrast to just 14 per cent at the end of 2018, which is considered significant penetration. 

The Vietnamese e-wallet market can compete with traditional or digital banking, Robocash said, adding that the current six super apps mentioned above have unlimited potential to attract new customers not only within Vietnam itself, but also beyond its borders.

By July 2030, the market share of active users will likely be distributed as follows: Momo 47.3 per cent, ViettelPay 30.2 per cent, ZaloPay 16.5 per cent, VNPT Pay 5.6 per cent, Moca 0.4 per cent.

— VNS    LINK

Henig:  Durian prices hit record high as demand surges

February, 06/2023 - 08:16

Durian is being purchased by traders in Mekong Delta region for VND150,000-190,000(US$6.4-8.1) a kilogramme, three times higher than the same period last year and the highest level ever.

TIỀN GIANG — Durian is being purchased by traders in Mekong Delta region for VNĐ150,000-190,000(US$6.4-8.1) a kilogramme, three times higher than the same period last year and the highest level ever.

The reason for the high price of durian is that durian is still off-season and supply is low. Meanwhile, strong demand is coming from the Chinese market as well as domestic markets.

Huỳnh Tấn Lộc, director of the Ngũ Hiệp Durian Co-operative in Tiền Giang Province’s Cai Lậy District, said the prices of the fruit have increased sharply since the beginning of this year.

The country’s largest durian producing province has more than 17,000ha of the fruit, mostly in the Cai Lậy, Cái Bè and Châu Thành districts and Cai Lậy Town.

The orchards have an average yield of 20-25 tonnes per hectare and farmers harvesting now can earn VNĐ1-1.5 billion ($43,000-64,000) per hectare, the highest of any speciality fruit, according to the provincial Department of Agriculture and Rural Development.

But their output is not large because it is the off-season, it said.

Trần Minh Kha, a trader from Cần Thơ City, said after a week of buying durian in Tiền Giang, he still did not have enough quantity to meet demand as the price of his inventory continued to increase every few days. 

Nguyễn Thị Hạnh, a trader from HCM City, said that she has had to pay a commission fee for brokers who can help her buy durian.

"This is the first time I pay commissions for brokers. However, there are still not enough durians to supply my partners," she said.

Every day, she can only buy about 16-17 tonnes of durian while the demand is up to hundreds of tonnes, Hạnh said.

In 2022, durian export turnover was at nearly $400 million, and of that, $300 million to China.

According to the Việt Nam Fruit and Vegetable Association, Vietnamese durian has many competitive advantages in the Chinese market. Both Thailand and Philippine durian exports are seasonal, while Vietnamese durians have year-round exports.

In addition, the distance to transport durian from Vietnam to China only takes about one and a half days, which ensures fresh fruit and cheaper shipping costs than competitors' goods.

Currently, the price of Vietnamese durian sold in China is still much cheaper than Thailand and the Philippines durian, so it is popular with the majority of people in this country.

– VNS   LINK

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Henig:  Việt Nam’s industrial production to rise 6.6 per cent in 2023: S&P Global

February, 06/2023 - 08:03

Việt Nam is predicted to record a rise of 6.6 per cent in industrial production in 2023, according to S&P Global Market Intelligence.

HÀ NỘI - Việt Nam is predicted to record a rise of 6.6 per cent in industrial production in 2023, according to S&P Global Market Intelligence.

S&P Global noted the Vietnamese manufacturing sector continued to face challenging business conditions in the opening month of 2023. Production and new orders continued to decline. That said, there were some signs of improvement in demand as new business fell at a softer pace, helped by a renewed expansion in new export orders.

The S&P Global Việt Nam Manufacturing Purchasing Managers' Index (PMI), released on February 1, posted 47.4 in January, up from 46.4 in December but still pointing to a solid monthly deterioration in the health of the manufacturing sector.

January data signalled a further marked decline in manufacturing production, albeit one that was slightly softer than seen in December. Lower new orders were often behind falling output, with some firms indicating that customers had sufficient stock holdings and so didn't need to purchase at present.

Total new orders were down for the third month running in January as demand conditions remained challenging. That said, there were some signs of improvement, particularly with regard to new export orders which rose for the first time in three months. As such, total new business fell at a modest pace that was the softest in the current period of decline.

The cost of raw materials, alongside falling workloads, meant that some firms lowered their purchasing activity again in January. Some signs of improvement in demand conditions encouraged other manufacturers to expand input buying, so that overall purchasing activity was broadly unchanged. Declines in the purchasing of inputs in previous months, however, led to a reduction in stocks of purchases.

Business confidence improved to a three-month high amid hopes that demand conditions will strengthen over the course of the year, feeding through to growth of output. The relaxation of pandemic restrictions in the mainland China was another factor behind the positive outlook. More than half of the respondents were optimistic that production will rise over the next 12 months, according to S&P Global.

Andrew Harker, Economics Director at S&P Global Market Intelligence, said: “Although demand conditions for Vietnamese manufacturing firms remained challenging at the start of 2023, leading to further declines in output, new orders and employment, there were some more positive signs from the latest PMI survey. One of the main positives in January was a renewed expansion in new export orders, with the decline in total new business softening as a result.

“The loosening of COVID-19 restrictions in Mainland China, plus signs that downturns in Europe and the US may be less severe than feared, provided optimism that growth in Việt Nam could be around the corner. Indeed, business confidence improved to a three-month high at the start of the year. S&P Global Market Intelligence is forecasting a rise in industrial production of 6.6 per cent in 2023," he added.

VNS   LINK

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Henig:   Expressions of trust in Vietnam’s business environment

06:00 | 06/02/2023

(VEN) - Representatives of foreign organizations and diplomatic missions praise the Vietnamese Government’s efforts to promote economic recovery and development in 2022 and expect Vietnam will continue bouncing back in 2023.

Agustaviano Sofjan, Indonesian Consul General in Ho Chi Minh City: Vietnam remains an attractive destination

Despite the COVID-19 pandemic, Vietnam remains an attractive investment destination thanks to its strategic geographic location and appropriate economic development policies. Vietnam is improving its connectivity to global supply chains through participation in various free trade agreements (FTAs) including the Regional Comprehensive Economic Partnership (RCEP) Agreement that involves Indonesia. This is an important factor connecting the two countries to the global market.

Vietnam and Indonesia see good prospects for bilateral trade growth in 2023 and ensuing years. The two countries set a target of US$15 billion for 2028.

Matsumoto Nobuyuki, Chief Representative of the Japan External Trade Organization (JETRO) in Ho Chi Minh City: Many Japanese companies want to increase Vietnam investment

Japanese companies want to invest in labor-intensive industries and are interested in fields with high added value, such as automobile and electrical equipment.

The Japanese Ministry of Economy, Trade and Industry is encouraging Japanese companies to diversify global supply chains and is willing to support these efforts. So far, many companies have registered to participate in the program. Some 103 projects have been implemented, 41 of which are related to Vietnam and cover three sectors: metal processing, health services, and electrical equipment. Vietnam can attract more Japanese investment in these sectors.

Alex Tatsis, Economic Section Chief at the US Consulate General in Ho Chi Minh City: Enhancing supply chain adaptability

Vietnam is the 10th largest trading partner of the United States. Supply chains are the focus of the Indo-Pacific Economic Framework for Prosperity (IPEF). Within the IPEF, the US will coordinate with partners like Vietnam to identify fields and products that are important to national security, the recovery ability of the economy, as well as people’s health and safety, taking joint action to enhance the recovery ability in these fields, generate jobs and create economic opportunities for major industries.

The US supply chain linkages with Vietnam will help it promote exports to other markets all over the world more strongly in 2023 and ensuing years. This is why the US is helping Vietnam enhance its role in global supply chains in the long term. Specifically, the US is intensifying trade facilitation and helping enhance the private sector’s competitiveness, especially for small and medium enterprises. The Linkages for Small and Medium Enterprises (LinkSME) Project funded by the US Agency for International Development (USAID) helps Vietnamese SMEs improve manufacturing capacity, access financial resources and promote digital transformation, enabling their participation in global supply chains for the mutual interests of the two countries.

Alexander Nowakowski, Third Secretary of Economic Affairs, Polish Embassy in Vietnam: Trade is a top priority

The Polish business community is boosting trade promotion and investment cooperation with Vietnamese companies in the fields of farm produce and food processing to take advantage of the EU-Vietnam Free Trade Agreement (EVFTA) and other FTAs.

The EVFTA has removed 71 percent of tariffs for Vietnamese exports as soon as it took effect. The remainder will be eliminated within seven years, creating favorable conditions for Vietnamese goods to enter the Polish market in particular, and the EU market in general.

A small country in Middle Europe, Poland is said to have successfully developed a market-driven economy, while maintaining socioeconomic stability. It is one of the fastest-growing economies in the EU. Trade with Poland will facilitate Vietnamese goods’ access to the EU market with 500 million consumers.

Jean Jacques Bouflet, Vice Chair of the European Chamber of Commerce (Eurocham) in Vietnam: Looking towards green exports

The Vietnamese economy is recovering strongly after the pandemic, creating an impetus for 2023 growth. Domestic companies have taken advantage of FTAs to boost exports. However, to compete in the EU market, Vietnamese businesses should abide by strict environmental regulations to meet the demand for green, sustainable goods.

The EU has committed to open, sustainable trade, coping with global challenges based on principles while maintaining competitiveness. The EVFTA with a Chapter on Trade and Sustainable Development will help increase Vietnam’s exports to the EU. However, to make the most of the trade deal, Vietnamese companies should look towards green, sustainable growth.

Green exports, i.e., export of low-carbon, environmentally friendly products, is a promising way for nations wishing to separate economic growth from environmental degradation.

Ngoc Thao   LINK

Sunday "Vietnam News" Posted by Henig at KTFA 2-5-2023

KTFA:  Vietnam

Henig:  18,000 tourists spend US$18.3 million on foreign tours during Lunar New Year

08:00 | 05/02/2023

The number of tourists choosing foreign tours accounted for 55 to 65 percent of the total domestic and foreign tours.

Around 18,000 Vietnamese tourists chose foreign tours through travel agencies in Ho Chi Minh City during the Lunar New Year holiday this year, spending a total of VND430 billion (US$18.3 million), according to a report from the city's Department of Tourism.

The number of tourists choosing foreign tours accounted for 55 to 65 percent of the total domestic and foreign tours.

This is an unexpected growth, according to tourism businesses.

Nguyen Nguyet Van Khanh, director of Vietravel's marketing department, said that the company recorded a total of more than 47,000 tourists registered for Tet tourism, much higher than last year.

This year, despite the effects of the pandemic, tourists are still excited about their plans to travel abroad because their favourite destinations have almost returned to normal and visa policies are also more convenient.

Destinations such as Thailand, Japan, the Republic of Korea, Europe and the US always attract many tourists; some tourists even choose to pre-book foreign tours in March and April 2023.

Similarly, travel companies such as Saigontourist, TST Tourist and Benthanh Tourist have had dozens of tourists going abroad during this Tet holiday.

Tran Quoc Bao, deputy general director of Saigontourist Travel, said that the number of tourists travelling aboard on the Lunar New Year holidays through the company reached 21,000.

Source: vietnamnews.vn    LINK

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Henig:  Vietnam develops green agriculture to increase exports to EU

07:00 | 05/02/2023

Vietnam is paying attention to mobilising resources to invest in developing green agriculture with an aim to raising the market share of its agricultural exports to the European Union.

Last year, Vietnam’s export revenue of agro-fishery-forestry products set a record high of 53.22 billion USD, up 9.3% year-on-year. However, Europe accounted for only 11.3% of its market share.

This is a modest number, although the agricultural sector has optimised many advantages of the EU-Vietnam Free Trade Agreement (EVFTA).

One of the main reasons is said to be the union’s high requirements on farm imports, while Vietnam’s agricultural production has yet to meet green growth requirements.

According to the World Bank’s report, agriculture is the second highest emitter, accounting for 19% of the nation’s total gas emissions in 2020. About 48% of the sector’s emissions and more than 75% of methane emissions are from rice production.

Therefore, to boost farm exports to the EU, the sector is advised to pay more attention to green growth indicators through making policies and roadmaps to reduce greenhouse gas and methane emissions in accordance with international commitments.

Last year, the Ministry of Agriculture and Rural Development approved an action plan to implement the National Strategy on Green Growth from 2021-2030, which aims to specify goals, tasks and solutions to realise the strategy and the national action plan for green growth.

Under the plan, the ministry will work to develop the agricultural sector in an ecological, organic, circular and low-carbon direction to improve growth quality, added value, competitiveness and sustainable development, while reducing pollution in agricultural production and rural areas, and promoting energy efficiency towards carbon neutralisation by 2050. Specifically, the sector aims for 2.5-3% in annual growth, and 42% in forest coverage.

It will also strive to increase the use of organic fertilisers to 30% of all those consumed, along with 30% of pesticides and at least 30% of farm areas using water-saving systems.

The sector will switch 300,000 hectares of rice to other crops with higher economic and environmental efficiency, while aiming for over 2% of organic farms out of the total farming area.

Source: VNA    LINK

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Henig:  Screening tools to enhance FDI quality

06:00 | 05/02/2023

(VEN) - A set of foreign direct investment (FDI) screening tools was launched recently as a result of cooperation between the Vietnam Chamber of Commerce and Industry (VCCI) and the United Nations Development Program (UNDP), promising enhanced effectiveness of foreign investment flows into Vietnam.

Ministry of Planning and Investment data show that Vietnam so far has attracted nearly US$440 billion of FDI from 140 countries and territories.
According to VCCI, FDI is one of the major resources for socioeconomic development. However, certain problems have arisen with FDI projects.

For example, some FDI companies were involved in transfer pricing and tax evasion, or did not abide seriously by environmental regulations, with detrimental social consequences. Local governments had to revoke some investment certificates due to delayed implementation of projects, while some foreign-invested projects still operate at a loss.

Some companies have failed to adhere to environmental laws and regulations. Inspections conducted by the Vietnam Environment Administration in 28 northern provinces from 2017 to 2019 show an increased percentage of FDI companies violating environmental regulations, from 44.5 percent in 2017 to 56 percent in 2018 and 68 percent in 2019.

Moreover, according to a VCCI study, only five percent of FDI projects use high technology, 80 percent use medium technology, and 14 percent use low technology. The local content of products ranges from 20-25 percent, lower compared with other countries in the region.

How to attract quality FDI projects, or to find responsible investors? How to minimize socioeconomic and environmental impacts of low-quality foreign investment projects? These questions are of great concern.

One of the solutions, according to Ramla Khalidi, UNDP Resident Representative in Vietnam, is using a set of screening tools to select responsible investment projects and to ensure their benefits for the Vietnamese people, environment and economy, helping promote Vietnam’s sustainable development.

According to Dau Anh Tuan, Head of VCCI’s Legislation Department, the tools include compulsory assessments by local governments to exclude FDI projects not abiding by Vietnamese laws and causing risks to the socioeconomic life and the environment, while encouraging abidance by international standards and good, responsible business practices.

The screening tools are expected to help improve the quality and effectiveness of FDI in Vietnam, increasing their contributions to Vietnam’s socioeconomic development

Nguyen Hoa    LINK

Henig:  Việt Nam attends Laos’ Bolaven coffee festival

February, 03/2023 - 16:13

Vietnamese coffee businesses are attending Laos’ Bolaven coffee 2023 festival which is underway from February 2-4 in the southern province of Champasak of Laos.

VIENTIANE - Vietnamese coffee businesses are attending Laos’ Bolaven coffee 2023 festival which is underway from February 2-4 in the southern province of Champasak of Laos.

The event is not only an opportunity for coffee growers in Laos to promote organic coffee products to international friends but also a chance for Vietnamese enterprises to expand their market in Laos.

Among the 50 booths displaying products from Laos, Thailand and Cambodia, Việt Nam is represented with three booths introducing its products from three localities, namely Đà Nẵng City, Đắk Lắk and Bình Phước.

Currently, Laos’ coffee products have been exported to more than 20 countries. In 2022, the total export volume of coffee beans of Laos reached about 22,000 tonnes with a value of over US$67 million.

Meanwhile, the General Department of Customs said Việt Nam’s coffee exports in 2022 were valued at nearly $4.06 billion, an increase of 32 per cent over that in 2021.

VNS   LINK

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Henig:  National defence industry sees remarkable progress

February, 04/2023 - 08:57

Lieutenant General Nguyễn Mạnh Hùng, secretary of the General Department of Defence Industry's Party Committee and Political Commissar, speaks to Quân đội nhân dân (People's Army) newspaper on the national defence industry's progress and missions for the future.

Lieutenant General Nguyễn Mạnh Hùng, secretary of the General Department of Defence Industry's Party Committee and Political Commissar, spoke to Quân đội nhân dân (People's Army) newspaper on the national defence industry's progress and missions for the future.

What are the highlights of the national defence industry in 2022?

The national defence industry achieved remarkable results last year with the attention of the Party and the State, the Central Military Commission (CMC) and the Ministry of Defence (MoD), the coordination and support of other ministries and departments, as well as the efforts and determination of everyone in the sector.

One of the highlights was the consultation with the CMC on the new Resolution No 08-NQ/TW on accelerating the defence industry’s development to 2030 and beyond, which was submitted to the Politburo for approval and issuance.

The MoD built an action programme to realise the resolution and submitted it to the Prime Minister for approval. This demonstrates the strategic vision of the mission to develop a self-reliant, multi-functional defence industry that responds to the need to build a modern military. At the same time, a dossier recommending the formation of the Law on National Defence, Security and Industrial Mobilisation was completed, allowing the issuance of circulars and regulations that manage and study the design and production of weapons and technical equipment.

The defence industry also saw breakthroughs in research and mastering a number of core and fundamental technologies; designing, manufacturing and producing a wide variety of arms and equipment, military vessels, as well as supporting tools for law enforcement forces and civilian use.

In the context where market demands are declining and export-import activities encounter multiple challenges, defence industry units have been actively promoting cooperation with local and international businesses to improve production and ensure stable income and employment for workers. The total revenue of the industry reached VNĐ33 trillion (US$1.4 billion) in 2022, of which 59 per cent is economic revenue.

Another notable achievement is the success of international cooperation in the defence industry and the Việt Nam International Defence Expo 2022, which attracted the participation of 174 defence businesses from 30 countries, and received high regard from the international community. This has contributed to the position and reputation of the country, its military and defence industry, opening up numerous cooperation opportunities in the sector with other countries.

Which breakthrough solutions were put in place to achieve these results?

First and foremost, the human factor is identified as the most important. We pay attention to building high quality personnel, particularly in research and development. We also formed specialised research teams that focus on several key aspects. We also link research with production, ensuring that research institutes are the science-technology foundation for factories.

Last year, solutions have been studied and proposed to maintain and improve product quality and repair to ensure stability. Several research projects on new arms production and technical support were also deployed.

In regard to economic development, the General Department of Defence Industry has put forward new strategies and solutions with stringent implementation, which has transformed the thinking on economic development in the sector’s units and departments.

Exchanges and connections with local and international businesses were also established, allowing practical and effective cooperation. Several defence businesses have become partners and suppliers for major enterprises. International standards have also been actively applied in business management and operations, as well as product quality control and digital transformation.

The department also focuses on promoting collective power in its mission and actively coordinates with other units for common growth.

What are the challenges facing the defence industry and the solutions to alleviate these issues?
While the national defence industry has seen comprehensive progress, there are still several shortcomings such as the limited coordination between institutions and policies, or among ministries and departments in the sector’s development. Financial investment and resources for the industry are not yet sufficient, and there are few multi-functional products for civilian use and export. We still have limitations in mastering the fundamental technology and special materials.

To alleviate these issues, the industry has been implementing multiple missions and solutions. The first is focusing on and proposing a complete legal framework for the defence industry, including specific mechanisms and policies on science-technology research and application. We also implement projects that invest in the industry’s potential, mobilising resources and developing high-quality human resources. Business structures were also streamlined to ensure productivity and efficiency.

In addition, the General Department of Defence Industry also suggests and actively consults with the MoD on implementing the mid-term public investment plan in the 2021-25 period, diversifying and effectively using investments to develop the industry’s potential.

The department continues to research and develop mid and long-term investment plans and projects for a modern, multi-functional defence industry. Other tasks include consultation, development and implementation of coordination mechanisms in the sector, promoting joint ventures, technology transfer and international cooperation in product research, production and consumption.

How has the General Department of Defence Industry attracted and developed high-quality human resources?

The defence industry’s human resources are seeing progress in terms of both quantity and quality, with an increase in the number of master’s and doctoral degree holders specialising in new and advanced technology.

To achieve these results, the department has always considered attracting and building high quality human resources a key and fundamental solution, which decides immediate and long-term development.

Recruitments are also conducted based on positions’ demands, reforms and the department’s structure and efficiency improvement. More human resources are assigned to special technical departments. Priority is also given to well-trained people with science-technology and foreign language qualifications, who have the capacity to receive technology transfer, design, produce and repair hi-tech products, and work in an international environment.

The department also looks into and applies suitable policies and benefits to attract and retain qualified staff, such as ensuring a good working environment, conditions for development, income and housing.

To improve the industry’s development in the new context, the department is proposing to the MoD to develop specific policies and frameworks that help attract, train and motivate high-quality human resources.

What are the key missions of the General Department of Defence Industry in the future?

The first mission is to focus on implementing managerial missions assigned by the State on the industry, and building institutions following the direction of the CMC. We will also continue our work on the missions identified in the government’s action programme and the MoD’s plans in regard to Politburo’s Resolution No 08; the draft Law on National Defence, Security and Industrial Mobilisation after receiving the approval for our dossier; and the proposal for specific mechanisms in the industry’s development.

The second is to build the plan and people’s determination for the project restructuring businesses in the 2021-25 period, which focuses on merging enterprises in military ship production and repair, with a strict, determined and appropriate action roadmap that ensures efficiency, stability and growth.

The third is to successfully research and manufacture modern arms and equipment. In 2023, we focus on studying the design and production of strategic weapons, completing the required procedures to start producing military vehicles, effectively implementing science-technology research and development programmes on mobile complexes and new-generation precision weapons, and extending studies in accordance with the MoD’s plans.

The fourth is to continue developing strong research personnel and assign specific tasks to research groups, in order to meet the demands in production goals following Resolution No 08.

— VNS   LINK

Saturday "Vietnam News" Posted by Henig at KTFA 2-4-2023

KTFA:  Vietnam

Henig:  Việt Nam to further contribute to strengthening ASEAN solidarity: ambassador

07:00 | 04/02/2023

ASEAN foreign ministers are expected to propose initiatives and solutions to cope with challenges in the region and the world, strengthen the bloc's solidarity during their meeting in Jakarta on Feb 3-4.

JAKARTA — Vietnamese Minister of Foreign Affairs Bùi Thanh Sơn's attendance at the ASEAN Foreign Ministers’ Meeting Retreat (AMM Retreat) in Jakarta on February 3-4 will contribute to enhancing solidarity and consensus in the ten-member grouping, thus elevating Việt Nam's role and position in ASEAN and international forums, a Vietnamese diplomat has said.

In an interview granted to the Vietnam News Agency ahead of the AMM Retreat, Ambassador Nguyễn Hải Bằng, Permanent Representative of Việt Nam to ASEAN, said given the current complicated circumstances, the meeting is expected to offer an opportunity for ASEAN FMs to discuss and reach consensus on the bloc’s orientations.

The ministers are expected to propose initiatives and solutions to cope with challenges in the region and the world, strengthen the bloc's solidarity, enhance ASEAN’s centrality in the region, and facilitate recovery of the entire association and each member nation, the ambassador continued.

According to Bằng, on the sidelines of the AMM Retreat, Son and his counterparts in ASEAN will pay courtesy calls to Indonesian President Joko Widodo, and hold many bilateral meetings.

Since joining ASEAN, Việt Nam has proven its role as an active, responsible member that is willing to lead and contribute to building rules for the bloc.

At the upcoming retreat, Việt Nam will propose initiatives aiming to improve institutional capacity and operational efficiency of ASEAN agencies and review the implementation of the ASEAN Charter for timely adjustment and supplements, towards ensuring that ASEAN Community building efforts are made in an effective and coordinated manner across all three pillars.

Also as part of the community building framework, Việt Nam will join in finalising Timor Leste's observer status and contributing to building a roadmap for Timor-Leste to secure the ASEAN membership.

According to the ambassador, another important issue at the upcoming retreat meeting is measures to materialise the Five-Point Consensus on Myanmar, and Việt Nam stands ready to engage in the process.

Other issues to be tabled for discussion include orientations to boost cooperation between ASEAN and its partners in the spirit of ensuring and promoting the centrality of ASEAN as well as mechanisms and initiatives of or led by ASEAN, including the ASEAN Outlook on the Indo-Pacific, and how to continue urging major countries to soon join the Treaty on the Southeast Asia Nuclear Weapon-Free Zone (SEANWFZ).

The present emerging international and regional issues would also be of great concern as they directly affect ASEAN, he said, noting that the task of the Vietnamese delegation was to raise initiatives in order to build a common stance, helping to ensure ASEAN solidarity and unity.

Speaking of priorities set by Indonesia as ASEAN Chair 2023 that are maintaining ASEAN’s position and consolidating its centrality in the region and the world, and comprehensively spurring economic recovery and growth, turning ASEAN into a bright spot of the global economy, Bằng affirmed Việt Nam's support for and readiness to contribute to these efforts this year.

Source: VNS    LINK

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Henig:  Trade surplus with America exceeds US$100 billion

07:00 | 04/02/2023

Viet Nam enjoyed a trade surplus of US$100 billion with the Americas for the first time in 2022, according to the Ministry of Industry and Trade (MoIT).

In the year, trade with the continent accelerated to US$153.9 billion, representing a year-on-year increase of 10.7 percent. In which, Viet Nam's exports to America reached US$128.2 billion, up 12.4 percent and its imports reached $25.7 billion, up 3 percent on-year.

Trade between Viet Nam and major markets in the Americas saw stable growth, such as that with the U.S. up 11 percent, Brazil up 6.6 percent, Canada up 16.5 percent, Mexico up 7.1 percent, Chile up 9 percent, and Argentina up 8.3 percent.

For the U.S. market, the two-way trade trade turnover increased by 11 percent to US$123.86, of which Viet Nam's exports to the U.S. hit US$109.4 billion, up 13.6 percent compared to 2021.

Deputy Minister of Industry and Trade Do Thang Hai said that 2023 would continue to be a challenging year, thus market situation should be closely monitored and more solutions needed to maintain and expand export markets.

Source: VGP   LINK

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Henig:  Banks plan to pay cash dividends for first time in three years

February, 04/2023 - 08:05

TPBank is due to pay a cash dividend at a rate of 25 per cent instead of a stock dividend like in previous years. This means that shareholders will receive VNĐ 2,500 (US$0.11) per owned share.

HÀ NỘI — Some banks have announced plans to pay cash dividends to shareholders for the first time in three years.

Accordingly, TPBank is due to pay a cash dividend at a rate of 25 per cent instead of a stock dividend like in previous years. This means that shareholders will receive VNĐ2,500 (US$0.11) per owned share.

The payment is expected in the first quarter of 2023. The source is from undistributed profits as of 2021 after disbursing funds according to the audited financial statements.

This is the first bank to consult shareholders on cash dividend payments this year.

TPBank said that accumulated to the end of 2022, the remaining profit and surplus from funds reached more than VNĐ13.36 trillion. Of which, the undistributed profit until 2021 after distributing to funds was nearly VNĐ5.5 trillion.

Last year, TPBank also recorded a 30 per cent growth in profit before tax to nearly VNDĐ7.9 trillion, thanks to an increase in fee income and the recovery of customers whose debts were extended during the pandemic, so risk provisions were reduced.

Previously, Vietnam International Commercial Joint Stock Bank (VIB) said that if it is approved by the general meeting of shareholders and approved by the State Bank, it can pay a cash dividend of up to 35 per cent of the charter capital, meaning that shareholders owning one VIB share can receive VNĐ3,500 in dividends. According to VIB's representative, the payment rate could be higher if irregular revenues were recorded in 2022.

In 2022, VIB recorded a profit before tax of more than VNĐ10.58 trillion, an increase of 32 per cent over the previous year.

Similarly, Vietnam Prosperity Commercial Joint Stock Bank (VPBank) and Asia Commercial Joint Stock Bank (ACB) also plan to pay cash dividends this year.

VNS    LINK

Henig:  PM emphasises importance of boosting external activities at export market conference

February, 04/2023 - 07:58

Prime Minister Phạm Minh Chính said the Ministry of Industry and Trade should take advantage of the free trade agreements (FTAs) that Việt Nam has joined.

HÀ NỘI - At a conference held by the Ministry of Industry and Trade on expanding the export market in Hà Nội on February 3, Prime Minister Phạm Minh Chính emphasised the importance of boosting external activities and fostering bilateral and multilateral cooperation. 

Deputy Prime Minister, Minister of Natural Resources and Environment Trần Hồng Hà and Minister of Industry and Trade Nguyễn Hồng Diên also attended the conference.

Chính said the ministry should take advantage of the free trade agreements (FTAs) that Việt Nam has joined to help diversify export markets and maintain traditional markets, such as the US, China, the EU, Japan, South Korea and ASEAN.

Việt Nam needed to expand its export market to Eastern Europe, the Middle East, South America, South Asia, and Africa and promote supply chain diversification.

Negotiations that are ongoing concerning an FTA with Israel and the opportunities from China's reopening after COVID-19 must also be exploited. 

The PM requested the MoIT implement synchronous solutions to boost exports for commodities with high potential and demand on the global market.

In addition, the sector needed to boost domestic purchasing power by implementing trade promotion programmes on the domestic market and promote the distribution of goods via e-commerce channels.

It needed to focus on calling for investment in modernising the distribution system in rural and mountainous areas to promote Vietnamese goods.

The ministry was also asked to step up market management and the fight against smuggling and trade fraud and take specific solutions to mobilise and bring into full play resources, especially those from different economic sectors.

It needed to coordinate with ministries and sectors to reduce logistics service costs to improve competitiveness.

The leader also stressed the importance of digital transformation, a green and circular economy, and the climate change response while urging the ministry to quickly complete the four master plans on electricity, energy, minerals and oil and gas infrastructure.

At the conference, Minister Nguyễn Hồng Diên said that in 2023, the Ministry of Industry and Trade would focus on implementing programmes to restore and develop the economy, promote disbursement of public investment capital, creating the supply of materials for sustainable product development.

The ministry would focus on solving difficulties for businesses, implementing solutions to removing barriers in terms of credit and administrative procedures to promote economic growth.

It would also promote administrative reform, simplify procedures, and create favourable investment, production and business activities conditions.

According to a report presented at the conference, industrial production recovered in almost all fields and localities last year, of which processing and manufacturing remained the main growth driver with a rate of 8.1 per cent.

Export-import also hit a new record of over US$732.5 billion in revenue, representing a 10-fold rise year-on-year. The trade surplus had been maintained for seven consecutive years, reaching $11.2 billion in 2022.

The total retail sales of goods and services increased by nearly 20 per cent, exceeding the set target by 2.5 times.

Việt Nam is among the top five countries worldwide for e-commerce growth.

At the meeting, the sector proposed the Government continue with policies to boost production and business, attract more foreign investments, and soon build and approve national, regional, provincial and sectoral planning schemes, and further consolidate institutions relating to the sector.

VNS    LINK

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Henig:  Vietnam’s rice export forecast to enjoy another successful year

07:00 | 04/02/2023

Vietnam’s rice export is forecast to continue reaping successes this year as the world's rice prices remain high at least in the short term as global economic and political uncertainties have resulted in a high demand for rice reserves, according to experts.

According to the Vietnam Food Association, by the middle of last month, Vietnam earned nearly 115 million USD from exporting more than 226,000 tonnes of rice, an increase of over 41% in terms of both volume and value compared to the same period last year.

The country exported ST24 and ST25 rice to the Middle East region with a record-high price of 1,000 USD per tonne, doubling the price of normal white rice.

Vietnamese rice further penetrated demanding markets like Japan and the EU.

According to experts, more than 80% of rice varieties in Vietnam are fragrant high-quality rice, which is an important factor that helps increase Vietnamese rice's value and accessibility to markets.

This year’s rice prices are forecast to return its peak in 2019 thanks to periodical factors and increasing demand for rice reserves in countries, including such populous nations as China and India.

Moreover, Vietnamese rice exporters are taking advantage of free trade agreements.

Pham Thai Binh, General Director of Trung An Hi-tech Agriculture Joint Stocks Company, said that before the EU–Vietnam Free Trade Agreement (EVFTA) took effect, Vietnamese rice exported to the EU was taxed at high rates, from 5% to 45%, depending on countries.

As the result, it was difficult for Vietnamese rice to compete with those from Cambodia and Myanmar as the EU has exempted import taxes for those countries.

Meanwhile, although Thailand’s rice is heavily taxed but its branding is strong and long-lasting, resulting in its high competitiveness, Binh said.

According to analysts from BIDV Securities Company (BSC), unfavourable weather conditions make major rice exporters like India and Pakistan reduce export volumes while major rice importers like China increase imports.

Vietnam and Thailand are expected to hold negotiations to discuss rising rice prices in the context of increasing prices of input materials.

Last year, Vietnam exported nearly 7.2 tonnes of rice, gaining 3.49 billion USD.

Source: VNA   LINK

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Henig:  Greening foreign investment

06:00 | 03/02/2023

(VEN) - The government’s declared commitment to reduce net carbon emissions to zero by 2050 has prompted a wave of high-quality, sustainable foreign direct investment (FDI) projects.

FDI remains key development driver

According to a report by the Foreign Investment Agency under the Ministry of Planning and Investment, in the first 11 months of 2022, the capital of new FDI projects, capital increases of ongoing projects, and capital contributions and stock purchases by foreign investors totaled more than US$25.1 billion, equaling 95 percent of the commensurate period sum in 2021. The processing and manufacturing industry led the way with total investment of US$14.96 billion, accounting for 59.5 percent of registered investment capital. Along with newly registered capital, the adjusted capital grew 18.9 percent. Notably, FDI disbursement reached US$19.68 billion, up 15 percent over the same period last year and a five-year record.

The growth momentum of the adjusted capital signals foreign investors' confidence in Vietnam’s economy and investment environment. What is more, the realized disbursement of foreign investment has spawned economic growth and improved production capacity, while connecting Vietnamese enterprises with global production and distribution chains. More importantly, the flow of investment capital into the high-tech sector is in line with Vietnam's goal of improving the quality and efficiency of foreign investment cooperation.

Alain Cany, Chair of the European Chamber of Commerce (Eurocharm) in Vietnam, suggests that rather than looking at new investment figures, Vietnam should focus on high levels of disbursement. European businesses in Vietnam are much more optimistic than before the pandemic given Vietnam’s flexibility in efforts both to repel COVID-19 and to support business activity. Therefore, investor commitment is reflected not only in pledged capital but in the disbursed sums.

Matsumoto Nobuyuki, Chief Representative of the Japan External Trade Organization (JETRO) in Ho Chi Minh City, commented that among roughly 600 Japanese enterprises operating in Vietnam, some 60 percent expected profits in 2022. Revitalized from the post-pandemic recovery, the number of profitable businesses in both manufacturing and non-manufacturing sectors increased compared to 2021. In comparison with the Asia and Oceania regions, the number of businesses with optimistic forecasts in Vietnam is higher.

The improved business profits are attributed to the post-pandemic recovery. However, the production efficiency improvement and the increased domestic purchasing power also contribute to Vietnam's growth, Nobuyuki noted.

Attracting green, sustainable FDI

Despite the global decline in foreign direct investment, Vietnam is an exception, reflecting investor confidence in its medium and long-term growth prospects.

Along with strong government determination to advance a green economy, Vietnam also has opportunities to attract investment projects of high technology and low impact on the environment from investors in developed nations. In fact, these investors are increasingly interested in environmental and sustainability issues, highlighting Vietnam’s advantages for their investment decisions.

The Ministry of Planning and Investment reports that from the end of 2021, the quality of projects has shifted in line with Vietnam's green growth goals. The Danish Pandora Group’s new LEGO plant, for example, is Vietnam’s

first carbon-neutral factory that uses only renewable energy.

"We perceive a much larger wave from Europe to Vietnam and there will be a wave of business and potential investors to explore Vietnam, especially in the green domains and green industries," Cany predicted.

According to foreign investors, the macroeconomic background is stable, placing the new FDI inflows in the "green" mainstream serving sustainable development and accompanied by investment in human resources, science and technology and the sector ecosystem.

Ngoc Thao    LINK