Analysts see opportunities for Vietnam in coronavirus crisis

There are always opportunities in misfortunes, according to Huynh Minh Tuan, brokerage director of Mirae Asset Vietnam.

The Vietnamese stock market started the new year 2020 with the VN Index jumping to the 990 point threshold and foreign investors buying continuously. The net purchase by foreign investors had reached VND2.117 trillion as of January 24.

Analysts see opportunities for Vietnam in coronavirus crisis



However, the net purchase trend stopped suddenly because of the coronavirus outbreak, and the succession of days of net sale began. In the last two weeks, their net sale hit VND1.5 trillion.

Tuan of Mirae Asset Vietnam said at a workshop on February 22, 2020 that foreign investors rushed to sell stocks for fear of the coronavirus outbreak, and that the shares sold are mostly ones with large capitalization value such as VIC, MSN, VNM and NVL.

Tuan stressed that the foreign investors’ net sale doesn’t mean foreign capital leaving from Vietnam. Instead, foreign investors are restructuring their investment portfolios and trying to increase the amounts of cash in the difficult time.

The Vietnamese stock market started the new year 2020 with the VN Index jumping to the 990 point threshold and foreign investors buying continuously. The net purchase by foreign investors had reached VND2.117 trillion as of January 24.

Asked about the impact of coronavirus, Tuan said the epidemic is having negative impact on many business fields, including aviation, real estate, tourism and F&B.

 


IATA estimates that the world’s aviation industry may lose $29 billion because of the epidemic. Meanwhile, Vietnam Airlines said it is losing VND250 billion in revenue each week.

However, Tuan believes that F&B, not aviation, is suffering the most. Having just been "stunned" by Decree 100 which imposes heavy punishments on drunk drivers, Sabeco, the biggest brewer, has suffered another shock from the Covid-19 epidemic.

Sabeco's revenue and share prices have plummeted.

Regarding the impact of the coronavirus crisis on the national economy, MPI said if the epidemic can be stopped in Q1, Vietnam would receive the GDP growth rate of 6.25 percent in 2020, or 0.55 percent lower than that set by the government’s Resolution No 1.

The growth rate would be 5.96 percent, or 0.84 percent lower, if the epidemic ends in Q2.

While the coronavirus outbreak has caused more than 2,000 deaths worldwide and seriously affected many business fields, it has opened up opportunities to others.

“Some business fields have the opportunities to become better,” Tuan said.

In current conditions, the government needs to support the economy with monetary and fiscal policies.

The government is expected to make investment in fields that need huge capital, especially infrastructure.

Tuan estimates that the total investment in infrastructure and public finance may reach VND500 trillion.

Tuan also mentioned the tourism industry, saying that as the number of travelers to China has decreased sharply and Vietnam can control the epidemic, it has the opportunity to become a tourism center in Southeast Asia.

Kim Chi 

ADB offers extra funding for Vietnam to cope with coronavirus

ADB offers extra funding for Vietnam to cope with coronavirus

The Asian Development Bank (ADB) has approved an extra US$2 million in aid to help Vietnam and other developing countries in the Asia–Pacific region to contain the coronavirus outbreak.  

Khanh Hoa free from novel coronavirus outbreak

Khanh Hoa free from novel coronavirus outbreak

The south central coastal province of Khanh Hoa has gained coronavirus disease (COVID-19)-free status under the Ministry of Health’s Decision No.648/QD-BYT inked by Deputy Minister Do Xuan Tuyen on February 26.

 
 

Other News

.
Covid-19 crisis leads to opportunity to expand markets
Covid-19 crisis leads to opportunity to expand markets
BUSINESSicon  27/03/2020 

2020 is a special year for Vietnam because of the 4.0 industry revolution and Covid-19 outbreak.

Securities service fees cut does help, but more drastic measures in need: experts
Securities service fees cut does help, but more drastic measures in need: experts
BUSINESSicon  26/03/2020 

The finance ministry’s recent cut and exemption of some securities service fees won't urgently help soothe investor nerves over the spread of the COVID-19 and more strong measures are needed to support businesses, analysts have said.

Banks slash fees for interbank fund transfers
Banks slash fees for interbank fund transfers
BUSINESSicon  26/03/2020 

Thirty-seven commercial banks have confirmed the reduction of fees for fast interbank fund transfers following the move of the National Payment Corporation of Vietnam (NAPAS) to halve the switching fees for local banks from Wednesday.

Foreign currency market eases following central bank’s intervention
Foreign currency market eases following central bank’s intervention
BUSINESSicon  26/03/2020 

The US dollar on Wednesday depreciated against the Vietnamese dong after the State Bank of Viet Nam (SBV) sold the greenback on the cheap to stabilise the local foreign exchange market.

Vietnamese currency more stable than other regional peers
Vietnamese currency more stable than other regional peers
BUSINESSicon  26/03/2020 

Though the unofficial value of the VND has now fallen about 3 percent against the USD, the rate is still a smaller depreciation than that seen by most of Vietnam’s regional peers and is expected to stabilise around that level.

VN garment-textile group to ask for permission to export anti-virus products
VN garment-textile group to ask for permission to export anti-virus products
BUSINESSicon  26/03/2020 

Vietnam National Garment and Textile Group (Vinatex) will ask for the Government’s permission to export anti-virus products as a measure to overcome difficulties caused by the novel coronavirus (COVID-19) pandemic.

COVID-19 affects Vietnam’s automotive industry
COVID-19 affects Vietnam’s automotive industry
BUSINESSicon  26/03/2020 

The spread of the COVID-19 pandemic in almost all countries and territories worldwide is likely to force automobile manufacturing and assembly firms in Vietnam to scale down operations and even close their factories.

COVID-19 brings more business to insurers
COVID-19 brings more business to insurers
BUSINESSicon  26/03/2020 

The COVID-19 pandemic has so far hurt many businesses in the country, except the insurance industry.

COVID-19 pandemic leaves Airbnb hosts thinking of the long-term
COVID-19 pandemic leaves Airbnb hosts thinking of the long-term
BUSINESSicon  26/03/2020 

There are many problems associated with COVID-19, but one major issue caused by the global pandemic is its virtual destruction of the travel industry.

Coronavirus: US Senate passes $2tn disaster aid bill
Coronavirus: US Senate passes $2tn disaster aid bill
BUSINESSicon  26/03/2020 

The largest government economic stimulus in US history is approved, despite a last-minute row.

Foreign currency market stabilised following central bank’s intervention
Foreign currency market stabilised following central bank’s intervention
BUSINESSicon  26/03/2020 

The US dollar on March 25 depreciated against the Vietnamese dong after the State Bank of Vietnam (SBV) sold the greenback on the cheap to stabilise the local foreign exchange market.

COVID-19, dimmed global outlook weigh on bond market
COVID-19, dimmed global outlook weigh on bond market
BUSINESSicon  26/03/2020 

The novel coronavirus (COVID-19) pandemic and deepening global economic uncertainty are putting great pressure on Viet Nam’s local currency bond...

How COVID-19 affects Vietnamese consumers’ FMCG spend and purchase behaviours
How COVID-19 affects Vietnamese consumers’ FMCG spend and purchase behaviours
BUSINESSicon  26/03/2020 

The COVID-19 outbreak has hit fast-moving consumer goods (FMCG) businesses but not all categories and retailers will suffer negative impacts,...

Wood product processors need to restructure production due to COVID-19
Wood product processors need to restructure production due to COVID-19
BUSINESSicon  26/03/2020 

Local wood processing enterprises need to continue reorganising their production and business activities to deal with difficulties during the novel coronavirus pandemic, according to the Ministry of Agriculture and Rural Development.

Ministry targets no drop in exports this year despite COVID-19
Ministry targets no drop in exports this year despite COVID-19
BUSINESSicon  26/03/2020 

The Ministry of Agriculture and Rural Development has targeted no drop in export value of agricultural products this year, even though the sector was hit hard by the novel coronavirus (COVID-19) pandemic from the beginning of this year.

BUSINESS NEWS HEADLINES MARCH 26
BUSINESS NEWS HEADLINES MARCH 26
BUSINESSicon  26/03/2020 

Commercial banks support COVID-19-hit businesses

PM orders suspension of signing rice-exporting contracts
PM orders suspension of signing rice-exporting contracts
BUSINESSicon  26/03/2020 

Prime Minister Nguyen Xuan Phuc has ordered a halt of signing new rice-exporting contracts, the Government Office said in a latest document concerning this matter.

Two Vietnamese drop out of billionaires list
Two Vietnamese drop out of billionaires list
BUSINESSicon  26/03/2020 

The list of the world’s dollar billionaires announced recently by Forbes shows that the number of Vietnamese billionaires has fallen from five to three.

Banks face bad debt risks amid pandemic
Banks face bad debt risks amid pandemic
BUSINESSicon  26/03/2020 

After two years of strong recovery and high growth, the banking sector is facing major challenges because of Covid-19.

VN farm exports head for Chinese market again
VN farm exports head for Chinese market again
BUSINESSicon  26/03/2020 

Signs of Vietnamese farm export recovery have appeared as the Chinese market has begun importing products again.

 
 
 
Leave your comment on an article

OR QUICK LOGIN