Vietnam Airlines opens Can Tho – Da Nang route

Scene at the lauching ceremony of Vietnam Airlines' Can Tho - Da Nang route 

Vietnam Airlines on February 1 rolled out its new domestic route connecting the Mekong Delta city of Can Tho and the central city of Da Nang.

The carrier will operate seven flights per week on the route using Airbus A321 aircraft with four-star service onboard. The flights take off from Da Nang at 18:30 and Can Tho at 7:15 every day.

On the occasion, Vietnam Airlines has run a promotional programme, with economy fares priced from 299,000 VND (12.97 USD) excluding tax and fees. The discount tickets are on sale between January 9 and February 3 for trips between February 13 and March 31.

At the launching ceremony held at Can Tho International Airport, Dang Minh Viet, head of the airlines’ branch in Can Tho, said the route will boost connectivity between the Mekong Delta and localities in the central region, catering to increasing demand for travel and business.

Vice Chairman of the Can Tho People’s Committee, Truong Quang Hoai Nam highlighted the importance of the route, noting that Can Tho has strength in eco-tourism, while Da Nang has a strategic location in terms of development and defence-security.

The official expected that the carrier will soon launch routes linking the Mekong Delta city with the north-eastern area of the northern region, north central region and Central Highlands.

The route is the fourth among domestic ones operated by Vietnam Airlines at the airport, apart from the Can Tho – Hanoi, Can Tho – Phu Quoc, and Can Tho – Con Dao routes. Vietjet Air was the first to launch flights on the Can Tho – Da Nang route in 2014.

NetLoading offers 20% stake for US$150,000

NetLoading helps connect transport firms with goods owners to minimize costs and improve revenue. PHOTO: ITC NEWS

The transport startup NetLoading is putting on offer a 20% stake for potential investors who are ready to pay US$150,000 to join the local transport connection service market, local media reported.

Speaking at the investment promotion conference organized in Hanoi on January 23 by Hanoi Innovative Business Incubator of Information Technology (HBI-IT), NetLoading CEO Le Dinh Giap said his startup had launched three apps for cargo owners, truck owners and drivers. The apps allowed goods owners to have their cargo transported on interprovincial routes at low freights by making the most of empty trucks on such routes.

Goods owners can enjoy freight discounts of up to 40% compared to normal rates, thus enhancing their competitiveness, while truck owners can boost their revenues by 20% owing to the apps, ICT News reported, citing Giap as saying at the conference.

By tapping empty trucks on the way back after delivering cargoes, “NetLoading helps reduce traffic congestion, environment pollution, and waste of resources,” Giap is quoted as saying at the conference.

The interprovincial cargo transport market has increased strongly over the years, from some VND91 trillion in 2011 to VND181 trillion in 2015 and an estimated VND220 trillion, or nearly US$10 billion, in 2018, according to the news site. As the freight has increased strongly, from VND2,263 per ton/kilometer in 2011 to VND3,536 in 2015, the connection service for both transport firms and goods owners will bring about great benefits for all stakeholders, according to ICT News.

Giap said that in 2017, the company had established partnerships with 800 transport firms and 500 goods owners, and helped transport 15,000 tons of cargo via its services. The company expects to join forces with 2,500 goods owners this year before raising the number four-fold in 2020.

In order to realize its target, NetLoading is in dire need of investment, at US$150,000 for a 20% stake, to expand services. The company said it targeted to also expand services to South East Asian markets in the near future.

Trust Union launches financial service dapp in HCMC

Trust Union CEO Markus Patrick Chan (C) at the launch ceremony of Trust Union dapp 

The dapp is expected to establish an efficient and secure data and value chain for financial relationships between individuals by providing effective lender-borrower matching and smart contracts.

All personal financial data is securely encrypted using blockchain technology, ensuring there is no privacy leak within the chain.

Under Trust Union dapp’s Smart Contracts, the borrower’s receipt is created instantly, matching the loan request with idle cash.

In the Financial Light Intelligence Contract Library, lenders and borrowers can easily set contract terms such as loan amount, period, interest rate and payment method.

The credit information of the users is recognized by the dapp. Users can enjoy multiple benefits based on their credit rating, such as free mortgages and low interest rates.

Speaking at the launch ceremony at the Caravelle Saigon Hotel, Trust Union CEO Markus Patrick Chan said, “Vietnam is boosting the development of smart cities, and we believe that our projects will contribute to the trend by providing smart services to the Vietnamese people.”

Trust Union targets the Southeast Asian market as well as Hong Kong, Japan and South Korea, with Hong Kong and Vietnam being its key markets this year.

Trust Union is also helping Le Quy Don Technical University in Hanoi build a center for studying and developing blockchain technology.
Electricity firm POW in high demand

State-owned electricity firm POW was in the limelight on the Hochiminh Stock Exchange on January 30, thanks to the strong demand from foreign investors.

With 140 gainers and 141 losers, the benchmark VN-Index inched down a slight 0.09 point, or 0.01%, against the previous session at 915.84 points. Turnover on the southern market rose by 14.8% in volume and 22% in value to around 139 million shares worth over VND3.4 trillion.

The local put-through market was active with more than 37 million shares valued at over VND1.48 trillion.

Notably, POW took the lead for liquidity with over 7.5 million shares changing hands, and advanced 3.07% at VND16,800. Foreign investors net bought more than 6.37 million POW shares.

Steel maker HPG and lender MBB were also high liquidity stocks yesterday with a total of over 6.7 million shares traded. However, HPG declined by 2.36% at VND29,000 while MBB rose 2.35% at VND21,800.

Tech giant FPT, budget carrier VJC and insurance firm BVH gained 1.65%, 1.23% and 2.22% respectively at VND43,200, VND123,200 and VND96,500.

Meanwhile, various other heavyweights such as dairy producer VNM, consumer goods firm MSN and lender CTG were in the negative territory. Further, property developer VIC, lenders VCB and BID, and brewer SAB closed the day at their own reference prices.

The HNX-Index of the Hanoi Stock Exchange advanced for the second straight session, adding 0.44 point, or 0.43%, against the previous day at 102.81 points. The market saw more than 21 million shares worth some VND330 billion changing hands.

Among blue chips, lender ACB maintained the momentum with a 1.03% rise at VND29,300, while petroleum producer PVS closed unchanged at VND18,600. Construction firm VCG suffered a sharp decrease of 3.21% to close at VND24,100.

Leather, footwear exports gain advantages in 2019

Vietnam’s leather and footwear sector is set to continue to thrive in 2019, according to the Vietnam Leather, Footwear and Handbag Association (LEFASO).

In 2018, footwear and leather exports hit nearly US$20 billion, a rise of 8.3% year-on-year.

The US remained Vietnam’s largest export market with more than US$6.5 billion, followed by the European Union market (more than US$5 billion) and China, Japan and the Republic of Korea.

LEFASO Chairman Nguyen Duc Thuan said demand in Vietnam’s major markets will remain high in 2019. Tariff lines within ASEAN have been eliminated and there are plans to cut tariffs via free trade agreements with other markets, moves which will drive for the sector’s growth.

Meanwhile, orders in leather, footwear and handbags are likely to shift from China to Vietnam as China has cut investment incentives for the garment and footwear sector, in addition to opportunities from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU- Vietnam Free Trade Agreement (EVFTA), which is hoped to be inked this year, said LEFASO Vice Chairman Diep Thanh Kiet.

Foreign investment in Vietnam in leather and footwear is projected to rise due to US-China trade tension. It is important for Vietnamese firms to take advantage of the opportunities to bolster productivity and exports, Kiet noted.

LEFASO forecasts showed that in 2019, the leather and footwear sector is expected to earn US$21.5 billion from exports, accounting for 9% of Vietnam's total exports and being among 10 leading export items of the country.

Vietnam steps up measures urged to expand e-payments via mobile subscribers

Vietnam is seeking strengthened measures to promote e-payments via cellphones, considering it among the key incentives to boost e-payment in the country.

According to the World Bank (WB), Vietnam currently has the lowest amount of non-cash transactions in the region, at only 4.9%, while the figure in Thailand is close to 60% and Malaysia 89%.

In addition, while people in the above countries mostly use card payment methods or bank accounts, only 59% of adults in Vietnam own bank accounts, not to mention 60% of the population in rural areas doesn’t have a bank account and face difficulties in accessing financial services.

In addition, the system of payment acceptance venues is mainly concentrated in urban areas, restaurants, hotels and large shops. Therefore, the current e-payment system in Vietnam only meets a part of the retail payment demand of urban residents. For rural areas, this service is almost non-existent.

In order to promote a non-cash habit among Vietnamese people, the Government and the State Bank have issued a series of mechanisms and policies to develop the e-payment and digital payment systems. A series of banks and payment intermediaries have also been established to provide this service to the people.

However, the digital payment infrastructure in Vietnam still faces problems that need to be solved. First of all, these systems have not yet been universalised to all parts of the country. Several financial institutions focus only on developing networks and drawing more customers in urban areas, targeting high-income people and bank accounts. Meanwhile, people in remote areas with low incomes and saving habits also need cheap and easily accessible financial services.

In addition, the "pure” Vietnamese payment system is still small and weak, combined with fragmented development in digital payment and commercial markets by Vietnamese enterprises somewhat lacking a strategic strategy. A large number of digital payment companies were born in the form of startups but due to a lack of financial resources, they had to call for investment from abroad. In 2017, there were about 20 large e-commerce enterprises operating in Vietnam, of which 17 were foreign-invested.

From international experience, an effective solution to widely deploy low-cost digital payment services is to use telecommunications network infrastructure. In fact, the use of mobile subscriber accounts for small value service consumption has been widely applied in Japan, Singapore and European countries, focusing on transactions such as payment on e-commerce sites, recharge of e-wallets and covering public transport service fees and parking fees. Even the rate of using mobile subscriber accounts for payment in many countries is five times higher than the use of bank accounts.

In Vietnam, the use of mobile accounts for payment has also been applied to multiple types of services, such as making donation in charity programmes, paying for digital content applications or, most recently, covering the cost in the pilot e-parking service, namely I-parking in Hanoi and My-parking in Ho Chi Minh City. The results of the pilot e-parking service payment show that the proportion of users with telecommunications accounts stands at 94%, compared to 6% of those using bank accounts.

Experts said that the use of mobile subscriber accounts for e-payments in Vietnam would create favourable conditions and opportunities to develop modern mobile payment products and services, contributing to promoting no-cash payment and better meeting the increasing demands of customers.

In particular, this method is suitable for the population groups in rural and remote areas, who have little access to traditional financial services. For that reason, if there are appropriate solutions to promote the expansion of e-payment through mobile subscribers, while promoting communications to raise public awareness and strengthen consumer confidence on this payment method, it would be an important contribution to creating a fundamental change in the public’s perception about e-payment and their current cash use habits.

January disbursed FDI at $1.55 bn

FDI projects disbursed $1.55 billion in capital during January, up 9.2 per cent against January 2018, according to the latest report from the Ministry of Planning and Investment (MPI) released on January 29.

Total newly-registered and additional capital and capital contributions and shares purchased by foreign investors stood at $1.9 billion in the first month of the year, up 51.9 per cent compared to January 2018.

As at January 20, 266 new projects had been granted investment licenses this year with total newly-registered capital of nearly $805 million, up 81.9 per cent year-on-year, while 72 projects added capital to the tune of $340.2 million, equal to 74.5 per cent of the figure in 2017.

There were 498 instances of capital contributions and share purchases by foreign investors in the period, with capital contributions standing at $761.8 million, up 114 per cent year-on-year.

Eighteen fields received investment from foreign investors, in which processing and manufacturing attracted much attention, with total capital of nearly $1.19 billion, accounting for 62.4 per cent of all capital. Science and technology ranked second, with $185.8 million, accounting for 9.7 per cent, while real estate ranked third, with $179.1 million, or 9.3 per cent.

There were 51 countries and territories with investment projects in Vietnam in January. Japan led the way, with nearly $364 million, making up 19 per cent of the total. China followed, with $307.8 million, or 16.1 per cent.

Thirty-nine cities and provinces received investment in the month, in which Ho Chi Minh City attracted the most, with $745.7 million, or 39.1 per cent of the total. Southern Binh Duong province ranked second, with $240 million, or 12.5 per cent, then northern Hai Duong province, with $125.7 million, or 6.5 per cent.

As at January 20, Vietnam had 27,643 valid projects with total registered capital of $340.1 billion. Disbursed capital totaled an estimated $191.4 billion, or 56.2 per cent.

Foreign investors have invested in 19 out of 21 sectors, in which processing and manufacturing accounted for the highest, with $195.3 billion, making up 57.4 per cent of the total, followed by real estate with $57.9 billion, or 17 per cent, then the production and distribution of electricity, gas and water, with $23 billion, or 6.7 per cent.

There are 130 countries and territories with valid investment projects. South Korea ranks first, with $62.5 billion, or 18.3 per cent of the total. Japan followed, with $57 billion, or 16.7 per cent, then Singapore, Taiwan, the British Virgin Islands, and Hong Kong.

FDI projects are found in all 63 cities and provinces around the country, in which Ho Chi Minh City continues to rank top, with $45 billion, or 13.2 per cent of the total, followed by Hanoi with nearly $33.1 billion, or 9.7 per cent, and southern Binh Duong province, with $31.7 billion, or 9.3 per cent.

Exports by the foreign-invested sector (including crude oil) were $13.58 billion in January, up 67.9 per cent year-on-year and accounting for nearly 94.9 per cent of the total. Exports excluding crude oil stood at $13.4 billion, equal to 95 per cent of the figure in January 2018 and accounting for 67 per cent of the total.

Imports by the FDI sector were $11.75 billion in the month, equal to 98.7 per cent of the figure in January 2018 and capturing 56.4 per cent of total import turnover. The FDI sector therefore recorded a trade surplus of $1.83 billion including crude oil and $1.65 billion excluding crude oil during the month. 

KMS Technology expands reach to Asia with Vietnam in focus

KMS Technology, one of the leading companies of software outsourcing and product development in the US, will expand its business to Asia with Vietnam as its focus.

Starting as a Vietnamese enterprise with a handful of members in 2009, KMS Technology has been focusing on outsourcing and developing software for the US market.

After 10 years, KMS Technology has also launched several “Made in Vietnam” software products that are widely recognised and used around the globe. QASymphony is an example. The product received an investment of $40 million in 2017, then merged with Tricentis and officially began a European startup unicornin 2018.

In addition, other products developed by KMS also saw great success, such as Kobiton, which secured $3 million in seed funding from Kinetic Venture Capital (USA), while Katalon gained nearly 35,000 global enterprise users.

“With the success of QASymphony, KMS is confident and eager to develop the next software, promising to deliver quality ‘Made in Vietnam’ tech products for the global market,” stated Lam Quoc Vu, founder and global CEO of KMS Technology.

As a future business strategy, KMS aims to achieve an average growth rate of over 20 per cent over the next four years. The firm will continue to promote KMS’ strengths in outsourcing and developing software products through enlarging sales efforts in the Australian market.

Moving forward, KMS will expand business in Asia, with Vietnam being the focus. The firm will specialise in consulting and providing solutions for data analysis, supply chain management, and software quality management, targeting mid-market companies in Vietnam, then moving forward to other potential markets across Asia. KMS will also launch a new product for human resource management in 2019.

“Vietnamese and Asian enterprises need technological tools and optimal solutions to enhance competence and support business development. With in-depth experience in technology development for international partners, we believe that we will be able to accompany enterprises in these markets,” said Le Tran Bao Duy, vice director of KMS Services.

With this business strategy, KMS Technology looks forward to providing job opportunities, contributing to the further growth of Vietnamese engineers and programmers, thereby enhancing the IT products and services of Vietnam in the global market.
HP launches premium computer line

     

HP Vietnam launches new PCs.

 HP Vietnam has unveiled its new premium line of consumer and business private computers powered by AMD technology.

The Vietnamese economy is now heavily driven by small and medium businesses (SMBs) and self-employed entrepreneurs, who account for 95 per cent of all firms.

They are looking for products that can meet their needs of productivity and security.

With this in mind, HP’s new premium PC portfolio enables both work and play for consumers and business users, while ensuring security and productivity.

“As the hyper-mobile trend is fuelled by habits of the younger population in Viet Nam, we’ve seen increasing demand for trusted, reliable and easily accessible innovation that meets users’ work and personal needs,” Lim Choon Teck, managing director, HP Vietnam, said.

Equipped with an AMD Ryzen processor and Radeon Vega Graphics, the new portfolio includes the HP ENVY x360 13, HP Desktop Pro A MT and HP EliteBook 705 series G5.

The launch, the company said, also marked the official collaboration between HP Vietnam and AMD.

Peter Chambers, director of sales, AMD Asia Pacific and Japan, said: “We are very pleased to partner with HP to offer AMD Ryzen powered HP PCs to the Vietnamese market.

“With this partnership, we will enable customers to get the most out of their digital lives and at the same time set new standards for security, performance and functionality.”

Japan-Vietnam alliance debuts AI cloud service

The AI Map Innovation Consortium (AICON) between Japanese businesses and their partner in Vietnam has just launched an AI cloud service specifically for local construction companies.

The AICON was founded by Asanuma Corporation, Advanced Construction Technology Center, and Gifu University, all from Japan, alongside Vietnam-based Mio System JSC.

This has been adopted as a part of PRISM project (Public and Private Research and Development Investment Strategic Expansion Program) under the supervision of the Japanese Ministry of Land, Infrastructure, and Transport. 

Blockchain, machine learning, and other advanced technologies are proving ever more useful for businesses in recent years, with productivity being boosted in every corner of the world.

However, at numerous construction sites, progress is still operated and evaluated by on-site supervisors who are subjective. This could lead to future difficulties in passing documents onto future generations, which in turn leads to challenges in optimizing efficiency and analyzing data.

Hence, the AI Map solution is aimed at visualizing the technique of workers on construction sites and analyzing an enormous amount of data collected from sensors attached on the helmets of workers.

Upon collecting data, based on images collected from sensors, cameras, GPS attached on the workers’ helmets, and drones, the AI Map solution helps to analyze data, identify the factors which cause progress stagnation, and to visualize the controlled constructing points.

Furthermore, machine learning can be applied to store results in a main cloud server for productivity improvement, to cut down on worker numbers and contribute to making techniques more transparent, which currently remains a crucial problem.

Vietnam is a country where the construction industry is booming and is developing at a rapid pace. Along with the foundation, the consortium is in the process of looking for business partners in Vietnam.

FPT profits up 30% in 2018

FPT exceeded its 2018 plan in earning revenue of VND23.2 trillion ($1 billion) and recording pre-tax profit of VND3.8 trillion ($164 million), equal to 106 per cent and 111 per cent of the 2018 target and up 17 per cent and 30 per cent year-on-year, respectively, in a like-for-like comparison excluding the one-off profit from divestments in FPT Retail and Synnex FPT and incorporating those under the equity method.

After-tax profit and that attributable to the parent company’s shareholders were VND3.2 trillion ($138.1 million) and VND2.6 trillion ($112.2 million), up 30 per cent and 35 per cent, respectively. Earnings-per-share (EPS) was VND3,897. The pre-tax profit margin was 16.6 per cent, up 1.7 times over 2017.

The technology sector recorded revenue and pre-tax profit of VND13.4 trillion ($578.3 million) and VND1.5 trillion ($64.7 million), equal to 110 per cent and 104 per cent of the 2018 target and up 21 per cent and 34 per cent year-on-year, respectively.

Software outsourcing recorded revenue of VND8.4 trillion ($262.1 million), up 35 per cent year-on-year. Pre-tax profit was VND1.3 trillion ($56 million), up 27 per cent year-on-year. All market revenues of this segment saw impressive growth, ranging from 23 per cent to 55 per cent year-on-year.

Telecom saw revenue jump 15 per cent, to VND8.8 trillion ($379.4 million), equal to 102 per cent of the annual target. Pre-tax profit was VND1.4 trillion ($60.3 million), equal to 105 per cent of the target and up 19 per cent year-on-year.

Telecom services was the key growth driver, contributing 94 per cent to the sector’s revenue. Revenue and pre-tax profit were VND8.3 trillion ($357.7 million) and VND1.1 trillion ($47.4 million), up 16 per cent and 26 per cent year-on-year, respectively, thanks to good business operations and a lower contribution rate to the Vietnam Public Utility Telecommunication Service Fund compared with 2017.

Regardless of instability in the global economy, FPT’s “Going Global” strategy continues to be an essential growth driver.

Overseas markets brought FPT revenue of VND9.1 trillion ($392.1 million) in 2018, up 26 per cent year-on-year, while pre-tax profit of VND1.47 trillion ($63.3 million) was up 27 per cent. Overseas revenue contributed 39 per cent to the total, up from 16 per cent in 2017.

With a strategic focus on digital transformation, this service line’s revenue from overseas markets was VND1.67 trillion ($72.1 million), up 31 per cent year-on-year and contributing 20 per cent to software outsourcing revenue.

Kyna secures new investment

The SEAF Women’s Opportunity Fund, CyberAgent Capital, and a number of other investors announced on January 29 they will invest in online learning website Kyna.

This is the second time Kyna has received investment from CyberAgent Capital, following the first in April 2016.

The new capital will be used to invest in Kyna’s fast-growing online training product for children, in which more than 150,000 parents have already chosen its Math and English programs.

With humorous images and quality content, Kyna for kids helps parents save time and costs while children are able to absorb knowledge effectively.

Ms. Ho Hong Bao Tram, Co-founder and CEO of Kyna, said the new capital will help it accelerate product launches, optimize technology, improve the learning experience, and expand to other markets.

Ms. Jennifer Buckley, Executive Director of the SEAF Women’s Opportunity Fund, said the investment will bolster Kyna’s ambitious growth plans. “It also has a major social impact through skills training for adults as well as providing a useful online training solution for children,” she said.

Operating in the field of online education (e-learning) for nearly five years, Kyna has attracted more than 600,000 students of all ages with its diverse online education solutions. Kyna for kids provides courses in Math and English for children from kindergarten to primary school.

Kyna also provides online training services for many large businesses such as Abbott, Dat Xanh, and Samsung.

A major investment fund from Japan with operations in the US and eight Asian countries and territories and especially active in Vietnam, CyberAgent Capital has invested in over 25 startups in the internet and technology fields, including well-known names such as Foody, Tiki, VNG, and Topica.

The SEAF Women’s Opportunity Fund is currently investing in female-led and growth-oriented businesses in Vietnam, the Philippines, and Indonesia, with investment of up to $2 million in each case. It has invested in about 400 companies in 29 countries and territories since 1989.

In Vietnam, in addition to its investment in Kyna, the Fund has also invested in the Phuong Chau International Maternity Hospital and the Organica Organic Product Distribution Company.

REE issues fixed-rate bonds

Standard Chartered Bank Vietnam (SCB Vietnam) announced on January 29 it has successfully placed the Refrigeration Electrical Engineering Corporation (REE)’s inaugural $100-million (VND2.318 trillion) fixed-rate bonds. The issue was guaranteed by the Credit Guarantee and Investment Facility (CGIF), a trust fund of the Asian Development Bank rated AA internationally by S&P.

The fixed-rate bonds bear an interest rate of 7 per cent per annum with a ten-year maturity.

REE is a listed and diverse business group in Vietnam primarily operating in the fields of real estate development and management; mechanical and electrical engineering services; the manufacture, assembly, and sale of Reetech air conditioning systems; and power and water utility infrastructure. The company was one of the first to list on the Ho Chi Minh Stock Exchange and is among the 30 largest companies in terms of market cap.

SCB Vietnam’s expertise and capabilities to execute and distribute the deal enabled REE to achieve long-term fixed-rate funding at a competitive yield. Despite market volatility, bidding interest, especially in the longer tranche, remains strong. In view of the favorable pricing, the issuance strategy was adjusted by shifting the seven-year demand into the ten-year tranche.

This is the sixth time SCB Vietnam has acted as the bond issuance agent for a guaranteed VND-denominated corporate bond issue in Vietnam, reaffirming the bank as the bond issuance agent of choice when it comes to guaranteed local currency bond origination in the country.

“We are delighted to have CGIF onboard with us on our first bond issuance as we tap into the capital markets for fixed-rate long-term funding,” said Mr. Nguyen Ngoc Thai Binh, CFO of REE. “We see it as an important milestone as we continue to widen our funding options and sources in line with our business development and expansion needs.”

“We are pleased to support REE in this landmark transaction, which is a meaningful achievement for us as we celebrate our 115th anniversary of driving commerce and prosperity and serving our clients in Vietnam,” said Mr. Nirukt Sapru, CEO Vietnam and ASEAN & South Asia Cluster Markets at Standard Chartered Bank.

“The successful issue has contributed to deepening and developing Vietnam’s local capital markets, as it encourages more corporate issuers to consider the country’s bond market as a viable financing option.”

“CGIF is delighted to guarantee REE’s first fixed rate ten-year bullet bonds targeting institutional investors,” said Mr. Kiyoshi Nishimura, CEO of CGIF. “While REE’s previous bonds were placed with banks in traditional bank terms, such as floating rates and amortizing repayments, this ten-year guaranteed bond enables REE to tap into institutional investors’ funds with more suitable funding terms to the company.”

The rapid development of the VND corporate bond market since CGIF’s inaugural guarantee for VND bonds in 2014 is extremely encouraging. This transaction marks the eighth such bond CGIF has guaranteed in the VND corporate bond market totaling $532 million equivalent, and solidifies its role as a catalyst for strong bond market development in the country.

Price set for 1,080 resettlement apartments in Thu Thiem

A resettlement apartment project in the Thu Thiem new urban area project in District 2, HCMC

The HCMC government has decided to sell 1,080 apartments in the 38.4-hectare resettlement area of the Thu Thiem new urban area project in Binh Khanh Ward of HCMC’s District 2 at a price 1.8 times higher than that offered to households affected by the project, Sai Gon Giai Phong newspaper reported.

These apartments are part of a plan to build 12,500 resettlement apartments for the Thu Thiem new urban area project.

The HCMC government had earlier asked for the municipal Party Committee’s approval of the selling price for the 1,080 resettlement apartments, which will not include the costs of infrastructure projects or the loan interest after compensating households affected by the project and handing over land to investors, as proposed by the Department of Finance.

The department has been assigned to coordinate with the Thu Thiem Urban Area Management Board and other relevant agencies to propose the starting price for five land lots, part of the Thu Thiem new urban area project in Binh Khanh Ward in HCMC’s District 2, as the city intends to put them up for auction.

The starting price will not include value-added tax to ensure the effectiveness of the auction and compliance with the law.