VIETNAM BUSINESS NEWS DECEMBER 29

Tourists to Da Nang to increase during New Year holiday


Da Nang’s tourism is recovering from the effects of COVID-19, with the number of tourists visiting the city expected to increase sharply during the Christmas and New year holidays.

Because of COVID-19, visitors to Da Nang this year are mostly domestic tourists. The city has launched a series of promotional programs to attract visitors, Many special tours are on offer, including tours of local cuisine, river tours, and cultural tours.

Vietnam Airlines, Bamboo Airways, and Vietjet Air are offering 40-50% discounts on air tickets to Da Nang. Travel companies have booked many group tours to Da Nang.

Da Nang has also received large business groups coming to the city for year-end meetings.

Da Nang has cooperated with Thua Thien-Hue and Quang Nam province to launch promotional packages offering discounts of 20-50% on high-end resorts, photo services, and wedding venues./.

Vietnam obtains GDP growth of 2.8% in 2020: Finance Minister

Vietnam is expected to achieve a GDP growth rate of 2.8% this year, a significant figure among new emerging economies despite the impact of the COVID-19 pandemic, revealed Finance Minister Dinh Tien Dung.

Finance Minister Dinh Tien Dung says the 2.8% GDP rate is a bright spot of the Vietnamese economy this year in the context of the COVID-19 pandemic taking its heavy toll on the global economy.

According to the minister, the government estimated that the national economy would grow by 6.8% and inflation would be controlled at 4% this year.

However, the COVID-19 outbreak that began earlier this year has dealt a heavy blow to global economic recovery efforts. International financial institutions still made their forecasts the global economy would grow negatively in 2020.

Domestically, along with the impact of the COVID-19 pandemic, trade disputes among global powers and natural disasters also badly impacted production and business operations.

“In such a difficult context, the good news is that Vietnam’s economy is still expected to grow by about 2.8% compared to 2019, a significant figure among new emerging economies,” Minister Dung said at a press briefing in Hanoi on Dec. 25.

He said the financial sector has adopted a number of fiscal policies to remove difficulties for business and production. Overall, the sector has disbursed approximately VND105 trillion to assist businesses and people to weather the COVID-19 crisis and natural disasters.  

Along with maintaining the economic growth at a relative level, Dung said that the local stock market has so far maintained its stability amid volatile fluctuations of the global market, and “this is a bright spot of the financial sector in 2020”.

“Such a stable market helped stabilize the financial market, because this is an important channel of capital mobilization,” the minister noted.

The initial success in containing the COVID-19 outbreak and maintaining economic development prompted international financial institutions to revise their forecasts for Vietnam.

In its December 2020 report, the Asian Development Bank raised Vietnam’s GDP growth from 1.8% to 2.3% this year. Meanwhile, the World Bank forecast in its December update that Vietnam’s economy would grow by 2.8% this year and 6.8% in 2021.

Efforts to improve business environment to be ramped up

The local business community anticipates that the Government will take specific and efficient measures aimed at immediately resolving bottlenecks that hinder their operations, said Vu Tien Loc, chairman of the Vietnam Chamber of Commerce and Industry (VCCI).

Loc told Hai Quan (Customs) newswire that the Government has taken swift steps in an effort to contain the novel coronavirus (COVID-19) pandemic and reboot the economy, therefore helping domestic firms to resume production. In addition, the country’s signing of a number of free trade agreements (FTAs) has served to open up a window of opportunity for local businesses to make greater inroads into potential markets.

According to Loc, as part of efforts to support enterprises, the Government has stepped up the reform process for administrative procedures, along with the application of information technology to settle administrative procedures, even during the height of the COVID-19 outbreak.

In line with this, May alone saw the Government issue Resolution No.68 on reducing and simplifying regulations relating to business activities for the 2020-2025 period, with the primary aim of cutting down 20% of regulations along with 20% of regulatory compliance costs that relate to business operations.

Furthermore, firms themselves have also made great strides in maintaining production, with many taking the initiative in relation to raw materials and diversifying products in order to survive the crisis. They have also tried their best efforts, such as securing small orders, to ensure that their employees are able to retain their jobs and enjoy a stable income.

Despite these positives, there remains plenty of bottlenecks that stifle enterprises from taking full advantage of opportunities from FTAs, in particular the European Union and Vietnam Free Trade Agreement (EVFTA), to cushion the negative impact caused by COVID-19 and continue to develop, said the VCCI leader.

For this purpose, Loc stated that the VCCI and the business community have proposed that the Government focus on the effective implementation of the Law on Public-Private Partnership (PPP) and the Law on Public Investment, with priority given to incomplete transport infrastructure projects.

“Businesses expect Vietnamese Trade Offices abroad to set up a portal on market and business connectivity, especially in the EU and other markets which Vietnam has signed an FTA with,” added Loc.

The business community representative stated that the Government should strive to support the establishment of technical centres as a means of guiding producers and exporters to meet the requirements of importers, especially for agricultural products that require specific food hygiene and safety standards.

Moreover, he noted that the local business community anticipates the Government will further improve the environment for firms and boost national competitiveness, with a focus on administrative procedure reforms and business conditions, thereby cutting costs for businesses.

Finally, Loc suggested that the Government should conduct regular and substantial dialogues alongside the business community in order to iron out any potential snags in a timely manner. Most notably, more micro, small and medium enterprises should be encouraged to participate in these dialogues as they are growing in large numbers but are most vulnerable to any market fluctuations, especially due to the recent COVID-19 pandemic.

Handbook helps Vietnamese firms tap opportunities in Benin

The Vietnam Trade Office in Algeria has introduced a 65-page handbook on doing business with Benin in a bid to equip Vietnamese enterprises with information on the market and tips for successful transactions.

It was compiled by Vietnamese Trade Counsellor Hoang Duc Nhuan, who is in charge of Algeria, Mali, Niger, Senegal, Gambia, and Sahrawi Arab Democratic Republic.

According to the handbook, Benin, owning the Port of Cotonou, one of the largest in West Africa, and a modern transport infrastructure connected to big cities in the region, is a gateway for Vietnamese products to enter a market of over 390 million people. Benin and West Africa are both having great demand for food and consumer products which are strengths of Vietnam.

Nhuan said Vietnam and Benin supplement each other in trade. Vietnam boasts strengths in producing and exporting goods like rice, electronic devices, steel, apparel and footwear, which are in demand in Benin. On the other hand, Benin’s strengths of cotton, cashew and timber match Vietnam’s import demand serving domestic industrial production.

According to the General Department of Vietnam Customs, trade between the two nations reached US$121 million in 2019, up 8.2% on-year. Vietnam exported US$21.9 million worth of rice, textiles, and motorcycle accessories and others to this market while importing US$99 million of cashew and cotton, among others.

The diplomat highlighted that apart from trade, the Benin Government wants to boost investment cooperation with Vietnam in agricultural mechanisation, farm produce processing, health and technological transfer. To seize the opportunities, Vietnamese firms need to make more efforts to study the local market and demand, and seek trustworthy partnerships, he added.

Foreign businesses pour US$28.5 bln into Vietnam in 2020

By December 20 Vietnam has attracted US$28.5 billion in foreign direct investment (FDI) this year, down 25% compared to the previous year, according to the General Statistics Office.

Despite the impact of the COVID-19 pandemic, Vietnam remains an attractive investment destination for foreign businesses.

About 2,523 new projects have been licensed with registered capital of US$14.6 billion, down 35% in the number of projects and 12.5% in registered capital.

As many as 1,140 operational projects have registered to increase their investment capital by US$6.4 billion, up 10.6%, while foreign investors purchased shares totaling US$7.5 billion, down 51.7%.

The GSO also announced that nearly US$20 billion worth of FDI has been disbursed so far this year, down 2% from the previous year.

Meanwhile, authorities have licensed 119 Vietnamese invested projects abroad capitalized at US$318 million. 33 operational projects have registered to up their investment capital by US$272 million. Overall, Vietnam’s newly and additionally licensed capital abroad totaled US$590 million, up 16.1% compared to 2019.

PM approves intellectual property development programme

The Prime Minister has recently issued Decision No 2205/QD-TTg approving the intellectual property (IP) development programme to 2030.

The programme’s common goal is to turn intellectual property into an important tool to improve national competitiveness, facilitate innovation and creativity, and promote socio-economic and cultural development.

Universities and research institutes are expected to receive support in IP protection by 2025 for their scientific studies.

At least 40% of products will be recognised as national and key national products, special products and services of centrally-run cities and provinces, and “One Commune, One Product” (OCOP) products.

By 2030, the number of applications for patent protection by research institutions and universities is forecast to increase by an average of 16-18% each year. Applications for plant protection are to rise by 12-14%.

At least 60% of products will be recognised as national and key national products, special products and services of centrally-run cities and provinces, and OCOP products. Trademark applications by Vietnamese firms are to increase 8-10% on average.

The programme looks to improve the quality of human resources in innovation and IP, and step up IP protection at home and abroad to create an IP ownership culture in society.

Businesses seek to promote sales on e-commerce platforms

Hanoi hosted a conference on December 25 to discuss future opportunities for Vietnamese manufacturing enterprises to distribute local goods through e-commerce platforms.

The event aimed to support local firms in expanding distribution channels by applying digital transformation and e-commerce solutions, whilst also strengthening value chain linkages through a virtual Vietnamese booth.

Addressing the event, Dang Hoang Hai, director of the Department of E-Commerce and Digital Economy, said the virtual booth will co-ordinate efforts with e-commerce floors throughout the country such as Sendo and Tiki to become an ideal venue in which to introduce high-quality products.

The booth will help consumers access high-quality Vietnamese goods at low costs and seek additional outlets for the products, said Hai.

Meanwhile, Nguyen Thi Mai Anh, deputy director of the Hanoi Tourism Trade Promotion Center, said that Hanoi has collaborated with Japan to establish a website to introduce organic agricultural products and regional specialties with the participation of thousands of local suppliers.

Bui Huy Hoang, deputy director of the Information Center under the E-Commerce and Digital Economy Department, said the online booth is anticipated to facilitate the distribution of quality products and reduce the trade of counterfeit goods.

The conference provided a platform for local businesses to gain greater insights into practical solutions to the distribution of goods on e-commerce platforms, focusing on e-finance, digital transformation, solutions for quality control, and origin of goods via QR code technology (iCheck).

Vietnam enjoys record trade surplus of US$19bln in 2020

Vietnam has obtained a trade surplus of US$19.1 billion in 2020, representing a record high figure over five years in a row, the General Statistics Office announced on December 27.

The country earned US$281.5 billion from exports, up 6.5% and spent US$262.4 billion on imports, up 3.6%. Overall, its total trade revenue reached US$543.9 billion for the whole year, or a year-on-year increase of 5.1%.

It is impressive that the trade surplus has been achieved in the context of the COVID-19 pandemic taking its heavy toll on all economies, including Vietnam, said Nguyen Viet Phong, a senior GSO official.

“The trade surplus means we have capitalized on free trade agreements (FTAs) that Vietnam has signed with its external partners, especially the EU-Vietnam trade agreement, to boost exports,” said Phong.

According to the GSO official, the export surplus can be seen as a bright spot in the overall economic landscape, significantly contributing to the country’s economic growth in 2020, and having a positive impact on the exchange rate and foreign exchange reserves that Vietnam needs to support COVID-post economic recovery in 2021.

Phong noted there were 31 groups of commodities that raked in over US$1 billion from exports each, accounting for 91.9% of the total export turnover. Of them six products earned more than US$10 billion each, making up 64.3%.

Regarding the structure of export commodities in 2020, while the group of heavy industrial goods and minerals saw the export turnover rise up 11.3% to US$152.5 billion, the group of agro-forestry-fisheries products brought back US$28.7 billion, down nearly 2%.

The United States remained the largest export market of Vietnam, consuming US$76.4 billion worth of Vietnamese goods, up 24.5%. It was followed by China, the EU, ASEAN, Japan and the Republic of Korea.

Malaysia considers opening border to boost tourism

The Malaysian government is considering opening its border to help boost the tourism sector, according to Tourism, Arts and Culture Minister Nancy Shukri.

At a press conference on December 27, she said Malaysia is now negotiating with Singapore, Brunei, the Republic of Korea, Japan, Taiwan (China) and New Zealand which have been identified as Green Zones.

Nancy said she received many requests from local tourism industry players to consider the matter to keep their business afloat.

“However, this matter has to be discussed further with other ministries as well, such as the Ministry of Health to ensure that we are allowed to do so (open country’s border) to boost our tourism sector,” she said.

She also urged visitors from the green zones travelling to other places for holidays, to fully practise the standard operating procedure, especially maintaining physical distancing during their travels./.

Sóc Trăng shrimp farming area to remain unchanged in 2021

The Cửu Long (Mekong) Delta province of Sóc Trăng plans to breed brackish water shrimp species in more than 51,000ha of ponds next year, the same as this year.

They will include white-legged shrimp in 35,000ha and black tiger shrimp in the rest of the area.

The coastal province, one of the delta’s largest shrimp producers, has produced nearly 188,000 tonnes of shrimp this year, up 24.8 per cent from last year, according to its Department of Agriculture and Rural Development.

Intensive and semi-intensive farming accounted for 94 per cent of the 51,000ha this year.

The yield is higher this year than average because farmers used advanced techniques and followed the province’s breeding schedules.

Speaking at a seminar held in Sóc Trăng last week, Quách Thị Thanh Bình, deputy head of the Fisheries Sub-department, said brackish water shrimp farming was successful this year because the province managed the breeding schedules well and has many effective farming models.

Trần Văn Lâu, chairman of the province People’s Committee, instructed the Department of Agriculture and Rural Development to develop infrastructure, irrigation and power supply in shrimp farming areas, especially where intensive and semi-intensive farming is carried out, next year.

The province would continue to solicit investment in breeding farms to meet the demand for young brackish water shrimp, he said.

The department should seek to link producers and consumers to sustainably develop shrimp farming and improve farmers’ incomes, he said.

The province has great potential for breeding the crustacean, especially in districts like Trần Đề, Cù Lao Dung and Mỹ Xuyên, where brackish water shrimp are bred using intensive, semi-intensive and other advanced farming models like the two-stage industrial shrimp farming model.

The two-stage model requires various ponds for breeding shrimp like one for a nursery, the main pond and one for treating wastewater. Young shrimp are bred in the nursery pond for a few weeks before being transferred to the main one.

The ponds are equipped with oxygenation facilities, anti-sunlight nets and plastic sheets for covering their beds.

The model requires large initial investment but ensures more than 90 per cent of the animals survive.  

According to Lâm Thành Lâm, who has been breeding shrimp in Cù Lao Dung’s An Thạnh 3 Commune for 15 years, after he has received training in using advanced techniques to breed shrimp his yields have increased.

He now breeds white-legged shrimp on an area of 2,500sq.m to Vietnamese good agricultural practices (VietGAP) standards.

Central city urged to improve investment conditions

Despite attracting 341 investment projects with US$847.3 million in 2018-20, Da Nang City has to cope with poor development of supportive industries and the skilled labour force for high-tech industries in its efforts to build the city into an investment hub in central Viet Nam.

Land-use, administrative procedures and investment papers were reviewed at a conference on 2016-20 investment attraction in Da Nang on Friday.

The event was a chance for the city to review its five-year development policy and plan for the future.

The Honorary Deputy Consul of Spain in Da Nang, Jose Sanchez Barroso Gonzalez, said the city needed to improve transparency in land-use, administrative procedures and investment licences for investors.

He said many companies from Europe wish to invest in waste treatment, education and tourism in Da Nang.

He said Eurocham would act as a bridge to build business links between Da Nang and Europe.

General Director of Korea Trade and Investment Promotion Agency (KOTRA) Da Nang, Lee Sung-nyung said: "Viet Nam has built an image of a ‘stable country’ by effectively controlling the first and second waves of the coronavirus pandemic, and the good image will provide a huge opportunity to attract investment in Viet Nam and Da Nang in the post-COVID-19 era.”

He added that Da Nang has most of the fundamental conditions including location, abundant well-trained workforce, competitive investment costs and safe living conditions that may lure foreign investment.

“It was appreciative that Da Nang held a webinar early this month for Korean companies. It is the time to focus on encouraging existing investment companies to expand their investment by aftercare management including collecting and solving their difficulties.”

Lee also recommended that the local government create more platforms to listen to businesses and investors, improving in procedure processing time and faster administrative procedures related to investment.

He said many Korean companies still face invisible barriers and delays in the investment process.

General manager of the Universal Alloy Corporation – a leading global manufacturer of aircraft components for aerospace companies – from the US, Liviu Lese said: "After two years investing into Da Nang City, we recognise that our decision on choosing Da Nang as an investment destination is the right choice with multiple advantages.”

“It’s the transparency, professional and enthusiastic support from Da Nang authority and Hi-tech Park, and relevant departments. High-quality workforce meeting the company hiring demand and recruited from famous universities, colleges in the city,” Lese added.

“The infrastructure system and global logistics solutions from Da Nang allow UAC to easily reach a global aerospace industry. So, we completed the first phase ahead of committed schedule, receive the international aerospace certifications, and ensure products to be exported to our customers on time and with top quality,” he said.

“The COVID-19 pandemic has a global impact on the economy and companies in general. In order to attract more investment and support the enterprises for future development, we are looking forward to a new 2021 with the international air travel open, hoping that this pandemic will soon be controlled all over the world, and Da Nang will be able to welcome even more investors to this beautiful and potential city in the future.”

Ikeda Naoatsu, general director of Daiwa Viet Nam, said Da Nang has advantages of human resources and close distance from the airport to industrial zones, but the city should improve education for high-quality labour for the future.

He also suggested the city offer cheap apartments for rent for labourers working and living in Da Nang.

The Japanese director warned about the lack of water and power supply at the IZs as well as the legal system among companies.

Daiwa has just opened its third factory in Da Nang after a 15-year investment course in the city, worth a total $90 million.

Nguyen Trung Chinh, chairman of CMC Corporation, the second-largest information and communications technology (ICT) group in Viet Nam, praised Da Nang for quick investment licence and planning grants.

He said the Da Nang-based CMC creative space – a digital hub in the Asia-Pacific region – would be built with an estimated investment of $522 million.

Tran Hong Son, from Long Hau Corporation, said the city should reserve space for supportive industries companies to serve key high-tech investors in the coming years.

To date, Da Nang has 876 foreign direct investment projects worth a total of $3.52 billion.

Room to grow for VN-India trade

There is plenty of room for Viet Nam and India to strengthen investment and trade ties in the future, said Bui Trung Thuong, Trade Counselor at the Vietnamese Embassy in India.

 

Even though Viet Nam and India have similar natural conditions, their products can be complementary, according to Thang. Viet Nam can export farm produce, fresh fruits, processed foods and furniture to India while India businesses should tap into the Vietnamese market in other fields such as animal feed, pharmaceutical and chemicals.

Chairman of Indian Importers of Chamber of Commerce and Industry (IICCI) Atul Kumar Saxena said in recent years, IICCI and the Vietnamese Embassy in India had facilitated imports of agricultural products and processed food from Viet Nam.

Viet Nam’s instant coffee, tra fish and dragon fruit has entered the Indian market since 2014 and are favoured by many customers, he said.

According to the chairman Viet Nam’s dragon fruit is present at many shopping centres, restaurants and hotels and is also a favourite dessert at luxury weddings in India. Meanwhile, instant coffee is popularly sold on online websites.

Two-way trade during the 11 months of the year recorded a decline of 14.45 per cent to US$8.82 billion against the same period from last year, according to statistics released by the General Department of Viet Nam Customs.

Of the total, Viet Nam exported $4.76 billion worth of goods to India while spending $4.06 billion on imports from the market, resulting in a trade surplus of $700 million in the period.

During 11 months, only handsets and components witnessed a yearly positive growth of 6 per cent, with export revenue hitting $1.31 billion.

Computers, electronic products and components suffered a fall of 24.6 per cent to $804 million in exports, while shipments of machinery, equipment, tools and spare parts plummeted by 48 per cent to $374 million.

In a bright spot, tea exports posted a sharp increase of 300 per cent to $4.96 million against the same period from last year, while the export of cashew nuts, confectioneries, and raw materials saw respective rises of 21 per cent, 32 per cent, and 23 per cent.

From January to November, Viet Nam imported iron and steel worth $1.06 billion, making up 25 per cent of the total import turnover of goods from the South Asian nation. The export turnover for November alone reached a sum of $86.56 million, representing an increase of 39.3 per cent from the previous month.

The country also spent $298.60 million on importing machinery, equipment, tools and spare parts throughout the reviewed period, a decline of 22 per cent year-on-year, while pharmaceutical and seafood imports saw an increase of 5.3 per cent and 21 per cent in comparison to the same period from the previous year.

Bilateral trade turnover between the two countries is anticipated to reach $10 billion by the end of the year, trade experts have predicted. 

Pork prices rise steadily as Tet approaches

The price of pig on the hoof has been rising since the beginning of this week, increasing by a maximum of VND5,000-8,000 per kilogramme in the north.

Pigs are currently selling for 70,000 - 78,000VND (US$3-3.4) per kilogramme.

Supply is plentiful now, but demand is expected to surge by 25 per cent before Tet (the Lunar New Year), which falls on February 12, experts said.

Le Xuan Huy, deputy general director of the CP Livestock Joint Stock Company, said while prices would definitely increase until Lunar New Year, he did not expect a shock similar to last year.

According to the Ministry of Agriculture and Rural Development, pig stocks have risen back to 85 per cent of the number before the outbreak of African swine fever last year.

Besides, import on the hoof from Thailand has increased sharply as has import of frozen pork in the fourth quarter to keep prices down.

The current price increase is due to a short-term scarcity since some large farms are not selling now to ensure their pigs grow bigger before Tet, according to Huy.

Some farms in the south-eastern region expect live hog prices to increase to VND80,000- 85,000.

Last year, at this time, they had jumped to VND 95,000 - 96,000.

Huy said they were unlikely to breach the VND90,000 mark, pointing out supply was plentiful.

Vu Van Tu, director of the Truong Giang Phat One Member Co Ltd in Dong Nai Province’s Bien Hoa City, attributed the price volatility to lower supply due to the impact of African swine fever and higher demand as businesses step up production of pork-based products for Tet. 

Market trading to stabilise despite stiff margin lending policies

Concerns have been raised about tightened margin lending policies by securities firms, but low interest rates and strong buying power from domestic investors may help offset those worries.

Some brokerages last week suspended new margin loans for stocks that had been quite attractive on the market and drawing a great deal of attention. Some companies even announced they would deny all clients’ requests for margin lending.

Tightening margin lending policies is a normal action by securities firms to meet the requirements of auditors when their financial reports are assessed.

As market demand has been increasing, such actions also signalled that margin loans had reached high levels on the market though no brokerages published data because the lending capacity at all companies lies within a limit.

As of the end of the third quarter, total outstanding loans – comprising of margin lending and borrowing – were up 19 per cent quarterly and 33 per cent annually to VND66 trillion, a report by tinnhanhchungkhoan.vn showed.

Normally, tightening loan policies would make the market quiet in the last few months of the year. But market performance in recent weeks could mean the action had hardly had any impact on market sentiment.

It was because some companies had increased their capital and the liquidity of the banking sector had been abundant, providing a huge amount of cash for the stock market.

In addition, investors’ confidence in the market had been higher than ever, which boosted the benchmark VN-Index above 1,080 points last week.

Since December 14, the market trading value on the Ho Chi Minh Stock Exchange (HoSE) had been swinging around VND12-13 trillion each trading day.

Foreign investors had also sought to return to Vietnamese equities, especially Thai investors, through buying in exchange-traded fund (ETF) certificates such as the VFMVN30 ETF.

According to analysts, foreign investors’ rising interest in ETF certificates may help Viet Nam increase its foreign capital in the stock market and balance the buying power of domestic investors.

Do Bao Ngoc, the deputy CEO of Viet Nam Construction Securities JSC, said market trading value had lifted because new investors turned from bank savings to stock investment and brokerages pumped more cash into the market through margin loans.

Since the Vietnamese stock market bottomed twice this year in late March and late July, the strong purchasing power of domestic investors had been propelling the market growth, he said.

Low-cost monetary policies applied by central banks, including the State Bank of Viet Nam, had driven interest from bank saving to stock purchasing because savings only offered profitability of 1-2 per cent, Ngoc said.

In the short term, the market would benefit from the expectations of COVID-19 vaccine development, which would help boost the global economic recovery and improve investors’ sentiment, he added.

Le Quang Minh, market analysis director at Mirae Asset Securities Viet Nam, said the VN-Index had reached new highs in each of the last 10 years but then the market would face a short-term correction.

The COVID-19 pandemic had shown no signs of being controlled worldwide and the global economy may continue struggling in 2021, he forecast.

The market’s price-to-earnings per share (P/E) ratio may decline from the current level of 17.26, indicating investors should be careful in the near term, he said.

Hydropower firm to raise capital

Vinh Son-Song Hinh Hydropower Plant JSC (HoSE: VSH) on January 8 will wrap up the list of shareholders to sell 30 million shares for VND10,000 (US$0.43) apiece.

The share issuance rate is 55:8, meaning every shareholder will receive one buying right for each share and eight new shares for each 55 buying rights they have.

The share issuance will help raise the firm’s charter capital to VND2.36 trillion ($102 million) from current VND2.06 trillion.

The income worth VND300 billion will be spent raising the firm’s counter capital at Thuong Kon Tum Hydropower Plant project.

The total investment capital for the new project is VND8.77 trillion, including VND6.14 trillion worth of loans and the firm’s own capital of VND457.8 billion.

Vinh Son-Song Hinh Hydropower Plant JSC estimates it would receive at least VND270 billion from the share sale.

The company’s shares are listed on the Ho Chi Minh Stock Exchange with code VSH.

Its shares gained 2.5 per cent to trade at VND18,650 apiece on Friday.

In the January-September period, the company earned VND26.4 billion worth of post-tax profit, down 75 per cent on-year.

Quang Binh to hold investment promotion conference next year

Quang Binh Province will organise an investment promotion conference in mid-January 2021 in Dong Hoi City, according to the provincial People's Committee.

“This conference is an opportunity for Quang Binh to show its great potential in economic development and as an attractive and reliable investment destination for all investors," Secretary of the Party Committee of Quang Binh Vu Dai Thang said.

It will focus on introducing the potential and strengths of Quang Binh, including the energy industry, tourism, services, agriculture and the marine economic sector.

At the event, the People's Committee of Quang Binh will approve investment policies and investment registration certificates for a number of key projects. At the same time, it will sign agreements on investment co-operation and credit supply for a number of projects.

The investment promotion conference in 2021 will attract domestic and foreign organisations, enterprises and investors. It will create dialogues between the authorities and businesses of Quang Binh to seek opportunities for investment and business in the province and solutions on effectively exploiting the potential in this province.

The conference is expected to receive about 600 delegates, including representatives from agencies of the Government and the National Assembly, ministries, sectors, localities and diplomatic bodies of other countries in Viet Nam.

They also include the Viet Nam Chamber of Commerce and Industry and the chambers of industry and commerce of other countries in Viet Nam, domestic and foreign financial, economic and commercial organisations, economic experts, and domestic and foreign investors. 

Ninh Thuan to have first LNG-fueled power plant in 2024

The south central province of Ninh Thuan plans to start construction of a liquefied natural gas (LNG)-fueled power complex, the first of its kind in the province, in Phuoc Diem commune, Thuan Nam district, in the third quarter of 2021.

The south central province of Ninh Thuan plans to start construction of a liquefied natural gas (LNG)-fueled power complex, the first of its kind in the province, in Phuoc Diem commune, Thuan Nam district, in the third quarter of 2021.

The 6,000 MW Ca Na LNG power centre project will comprise a LNG-fueled power plant using combined cycle gas turbine technology, a LNG import terminal with an annual capacity of 4.8 million tonnes, a warehouse with four 180,000-cu.m LNG storage tanks, and a storage regasification unit with capacity of 1.2 million tonnes each.

The first phase of the project will cover an area of 75 hectares and have capacity of 1,500 MW. With an estimated cost of around 49 trillion VND (2.12 billion USD), the project aims to supply electricity to southern cities and provinces.

The province has approved the project’s detail planning and its first phase’s portfolio. Site clearance has also been completed. It is taking steps to select eligible investors to start the project as scheduled.

The project is expected to be operational in the third quarter of 2024./.

Market trading to stabilise despite stiff margin lending policies

Concerns have been raised about tightened margin lending policies by securities firms, but low interest rates and strong buying power from domestic investors may help offset those worries.

Some brokerages last week suspended new margin loans for stocks that had been quite attractive on the market and drawing a great deal of attention. Some companies even announced they would deny all clients’ requests for margin lending.

Tightening margin lending policies is a normal action by securities firms to meet the requirements of auditors when their financial reports are assessed.

As market demand has been increasing, such actions also signalled that margin loans had reached high levels on the market though no brokerages published data because the lending capacity at all companies lies within a limit.

As of the end of the third quarter, total outstanding loans – comprising of margin lending and borrowing – were up 19 per cent quarterly and 33 per cent annually to VNĐ66 trillion, a report by tinnhanhchungkhoan.vn showed.

Normally, tightening loan policies would make the market quiet in the last few months of the year. But market performance in recent weeks could mean the action had hardly had any impact on market sentiment.

It was because some companies had increased their capital and the liquidity of the banking sector had been abundant, providing a huge amount of cash for the stock market.

In addition, investors’ confidence in the market had been higher than ever, which boosted the benchmark VN-Index above 1,080 points last week.

Since December 14, the market trading value on the Ho Chi Minh Stock Exchange (HoSE) had been swinging around VNĐ12-13 trillion each trading day.

Foreign investors had also sought to return to Vietnamese equities, especially Thai investors, through buying in exchange-traded fund (ETF) certificates such as the VFMVN30 ETF.

According to analysts, foreign investors’ rising interest in ETF certificates may help Việt Nam increase its foreign capital in the stock market and balance the buying power of domestic investors.

Đỗ Bảo Ngọc, the deputy CEO of Việt Nam Construction Securities JSC, said market trading value had lifted because new investors turned from bank savings to stock investment and brokerages pumped more cash into the market through margin loans.

Since the Vietnamese stock market bottomed twice this year in late March and late July, the strong purchasing power of domestic investors had been propelling the market growth, he said.

Low-cost monetary policies applied by central banks, including the State Bank of Việt Nam, had driven interest from bank saving to stock purchasing because savings only offered profitability of 1-2 per cent, Ngọc said.

In the short term, the market would benefit from the expectations of COVID-19 vaccine development, which would help boost the global economic recovery and improve investors’ sentiment, he added.

Lê Quang Minh, market analysis director at Mirae Asset Securities Việt Nam, said the VN-Index had reached new highs in each of the last 10 years but then the market would face a short-term correction.

The COVID-19 pandemic had shown no signs of being controlled worldwide and the global economy may continue struggling in 2021, he forecast.

The market’s price-to-earnings per share (P/E) ratio may decline from the current level of 17.26, indicating investors should be careful in the near term, he said.

Disbursement of State budget capital in 2020 highest in past decade

The disbursement of State budget capital reached an estimated 91.1 percent of the plan set for the year and rose 34.5 percent year-on-year, the highest rate in the 2011-2020.

This is the result behind the acceleration of public investment disbursement as part of efforts to maintain economic growth amid difficulties posed by the COVID-19 pandemic.

Latest updates by the General Statistics Office (GSO) show that total social investment in 2020 increased 5.7 percent year-on-year to over 2.16 quadrillion VND (93.71 billion USD at current rate), and equivalent to 34.4 percent of the GDP.

Of the figure, 729 trillion VND was sourced from the state sector, up 14.5 percent; 972.2 trillion VND came from the non-state sector, rising by 3.1 percent; and 463.3 trillion VND was from the foreign direct investment sector, down 1.3 percent.

The GSO said the country attracted a total of 28.5 billion USD in FDI in the year, falling 25 percent compared to last year.

There were 2,523 newly-registered projects with 14.6 billion USD in investment, down 35 percent in number and 12.5 percent in capital, respectively.

A total of 6.4 billion USD was added to 1,140 existing projects, a year-on-year increase of 10.6 percent, while capital contributions and share purchases by foreign investors stood at 7.5 billion USD, down 51.7 percent.

The disbursement of FDI in the year totaled an estimated 20 billion USD, down 2 percent year-on-year./.

Hanoi recognises 630 OCOP products over last 3 years

More than 200 policymakers, scientists, and representatives from agribusinesses and cooperatives have attended a conference to review the “One Commune, One Product (OCOP)” programme in Hanoi from 2018 – 2020.

Addressing the event, Vice Chairman of the municipal People’s Committee Nguyen Manh Quyen said Hanoi has so far verified, rated and recognised 630 OCOP products made by 50 companies, 57 cooperatives and 52 business households.

The city has been speeding up necessary steps to verify and rate 370 more OCOP products in December to raise the total to 1,000 this year, he said.

The capital city has also organised four promotional events and established 13 showrooms for local OCOP products, Quyen said, adding that such efforts have resulted in the signing of hundreds of contracts and memoranda of understanding, facilitating trade and distribution of specialty products.

He urged the municipal Department of Agriculture and Rural Development to accelerate trade promotion to pave the way for OCOP and other specialty products to enter supermarkets, farm stores, traditional handicraft shops and e-commerce sites, and to gain access to foreign markets.

Of the city’s recognised OCOP products, 421 have been rated four stars and 195 rated three stars while 14 are expected to earn five-star rankings.

The majority of the OCOP products (74.1 percent) are foods while souvenirs, furniture and décor products account for 18.3 percent of the total. The remainders are beverages, herbal medicine, fabrics and apparel.

Director of the municipal Department of Agriculture and Rural Development Chu Phu My said about 2,300 agricultural products from Hanoi have been registered with a QR code to trace their origin.

The department sets to develop, upgrade and rate at least 400 new OCOP products annually, he added./.

Source: VNA/VNN/VNS/SGGP/VOV/NDO/Dtinews/SGT/VIR  

 
 

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