VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 6

Trading accounts of foreign investors highest in 8 months

 
     

VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 6
The number of securities trading codes assigned to foreign investors as of the end of August reached 34,807, of which 4,720 belonged to institutional investors and 30,087 to individuals. — Photo tinnhanhchungkhoan.vn

 
 
 
 The Vietnam Securities Depository (VSD) in August issued securities trading codes to 296 foreign investors, the highest recorded within eight months but down 8.6 per cent over the same period last year.

Of the 296 trading codes, VSD granted codes to 16 institutional investors and 280 to individuals.

VSD also approved to change information on trading codes for 28 foreign investors, including 8 institutional investors and 20 individuals, while canceling codes for two foreign individual investors.

The number of securities trading codes assigned to foreign investors as of the end of August reached 34,807, of which 4,720 belonged to institutional investors and 30,087 to individuals.

Despite the outbreak of COVID-19, the stock market still enjoyed growth in August with the VN-Index rising 83.26 points, or 10.43 per cent, compared to July. The HNX-Index also increased by 17.34 points, or 16.13 per cent, to 124.85 points. The UPCoM-Index gained 4.02 point, or 7.34 per cent, to reach 58.82 points.

However, foreign investors remained net sellers, offloading more than VND3.4 trillion on the Ho Chi Minh Stock Exchange (HoSE), Ha Noi Stock Exchange (HNX) and UPCoM in August, six times higher than July.

In the first eight months of this year, foreigners net sold nearly VND7.3 trillion. 

IPC approves Pham Phu Quoc’s resignation

The board members of Tan Thuan Industrial Promotion Company (IPC) approved the resignation of Pham Phu Quoc, a National Assembly deputy, after he admitted to acquiring Cypriot citizenship.

According to local media, Quoc submitted the resignation letter on September 3, seeking to step down from the post of general director of the company. The letter was then approved by all the members of the board of directors, board of management and board of controllers.

Earlier, Quoc signed a decision of August 26 assigning Phung Duc Tri, deputy general director of the company, to replace him in controlling IPC’s operations.

In the coming time, IPC will report the case to the HCMC administration, so that Quoc’s resignation and violations will be handled appropriately. The Department of Home Affairs will provide consultancy to the city’s leaders.

On August 24, Al Jazeera had reported that Cyprus's passport scheme allows people who have invested at least US$2.5 million in the country to possess its passport, making individuals eligible to become EU citizens and travel and work freely across EU nations as well as enter 174 countries without a visa. Quoc's name was mentioned among the list of foreigners who possess a Cypriot passport.

Quoc, 52, a native of the central province of Quang Tri, admitted the next day that he had acquired Cypriot citizenship in 2018, but it was due to his family's petition, not him "buying" the nationality at US$2.5 million as reported by Qatar’s Al Jazeera.

Ha Phuoc Thang, chief of office of the city People’s Committee, said Quoc's holding of the nationality in Cyprus without reporting it is an act that is deplorable, dishonest and disobeys the Party's regulations.

Singapore institute: Int’l trade, FDI turn Vietnam into one of the most open economies

Vietnam’s robust economic performance over the past three decades has been heavily dependent on exports and foreign direct investment (FDI), with foreign invested companies accounting for 67.8 percent of the country’s total export turnover in 2019, according to the Institute of Southeast Asian Studies (ISEAS) of Singapore.

In its article published on September 2 on the development of Vietnam's economy, ISEAS said that Vietnam’s impressive foreign trade and FDI performance over the past 30 years has turned the country into one of the most open economies in the world. In 2017, for example, Vietnam’s trade-to-GDP ratio was 200.4 percent, which was the sixth highest in the world. In Asia, Vietnam was only behind Hong Kong (375.1 percent) and Singapore (322.4 percent).

Similarly, FDI is also playing an important role in Vietnam’s economic development. In 2019, the net annual FDI inflow of Vietnam was equivalent to 6.3 percent of its GDP, which was the fourth highest in Southeast Asia, after Singapore (28.3 percent), Cambodia (13.7 percent), and Laos (7.4 percent).

“Vietnam’s openness to trade and FDI originated from a combination of economic and strategic considerations. Vietnam considers international economic integration as a key measure to promote socio-economic development and to achieve the Communist Party of Vietnam’s (CPV) goal of national modernization and industrialization. In other words, Vietnam considers foreign trade and investment as key tools to transform and upgrade its economy,” said the article.

At the same time, Vietnam also has strategic interests in pursuing open trade regimes, especially FTAs with key economies, and attracting FDI.

Vietnamese strategists believe that by integrating Vietnam deeply into the global economy and strengthening economic ties with the major powers, Vietnam can align its economic interests with its partners.

The article said Vietnam generally benefits from foreign trade and FDI because they create jobs and upgrade skills for the workforce, contribute to tax revenue, and boost workers’ income. Nevertheless, Vietnam’s excessive reliance on exports and FDI has been seen as a potential problem for the country. While foreign invested companies accounted for only 20.3 percent of Vietnam’s GDP, they contributed a whopping 67.8 percent to the country’s total export turnover in 2019.

However, Vietnam’s over-reliance on exports and FDI has generated concerns among policy makers and experts, it said.

The Vietnamese government also appears to be well aware of the problem and certain remedial measures have been adopted. This is reflected in a remark by Prime Minister Nguyen Xuan Phuc at a meeting with local entrepreneurs in June 2019: “We have to build a self-reliant economy in the context of international integration. Hence, we must have a (strong) team of corporations of different types of ownership, including native private enterprises”.

Vietnam’s FDI policy has long been favouring foreign investors. But recently, in dealing with domestic investors, especially private enterprises, the government has stressed four key principles: equality, being protected, being incentivized, and being given opportunities.

Another measure is to encourage private enterprises to expand their businesses, especially into the manufacturing and high-tech sectors, to strengthen Vietnam’s domestic industrial base. The government’s support for Vingroup, the country’s largest private conglomerate, to expand into automobile, electronic and high-tech industries is a case in point. If successful, such “national champions” will not only boost Vietnam’s GDP growth, but also generate more exports for the country. After all, foreign investors may come and go, while local businesses will always stay, and their success and long-term commitments will be the key to Vietnam’s self-reliance and long-term economic prosperity.

Finally, Vietnamese businesses are also encouraged and assisted to work with foreign firms to participate in the global value chain. This is an important measure as it enables Vietnamese firms to grow up and play a bigger role in the economy in the long run. However, it is also a serious challenge as after more than 30 years, the expected spill-over effect from FDI is still limited. Samsung, for example, sources most of its components for its mobile phone factories from foreign suppliers. Among suppliers who accounted for 80 percent of Samsung Electronics’ transaction volume and agreed to be disclosed, 28 are based in Vietnam but all of them are foreign companies.

To address this issue, the Vietnamese Ministry of Industry and Trade is working closely with Samsung to increase the number of qualified local suppliers for Samsung. As of 2019, the number of tier-one Vietnamese suppliers for Samsung had increased to 42.

“If all the three above measures are implemented successfully, Vietnam’s economy will become more resilient and its export-led, FDI-driven growth model can be claimed a success,” the institute concluded.

HCM City maintains export growth in eight months

Exports by Ho Chi Minh City companies in the first eight months of the year reached 28.4 billion USD, a 4 percent increase year-on-year, according to the municipal Department of Industry and Trade.

Industrial products accounted for 19.93 billion USD and agro-forestry-fishery exports for more than 3 billion USD. Imports fell by 2.8 percent to 32.07 billion USD.

The biggest export market was China, which accounted for 6.84 billion USD or 26.2 percent of total shipments. The US followed with 4.45 billion USD.

The city’s index of industrial production in the first eight months grew by 8.55 percent month-on-month.

Nguyen Phuong Dong, deputy director of the department, said the city has managed to sustain economic growth this year despite the COVID-19 pandemic thanks to the efforts made by the Government to control it. He said more measures would be taken to boost the economy during the rest of this year.

According to a survey by the city Department of Statistics, half of the enterprises affected by the pandemic thought the consumer market has shrunk, and 15.3 percent said manufactured goods could not be sold domestically.

More than half of State-owned enterprises and 48.45 percent of foreign-owned enterprises said they have been unable to export this year.

The department is working with the Statistics Office and other agencies to monitor the production and demand situation to take measures to support businesses during the rest of the year, Dong said.

The priority is to help companies pay salaries to their workers so that they could maintain the workforce, he said.

The Departments of Planning and Investment, and Industry and Trade and authorities in all 24 districts would keep track of cancelled orders, the number of businesses closing down and the number of workers losing jobs, he added.

It is important to ensure enterprises resume production as soon as possible, encourage domestic production to replace imports and expand domestic value chains, he added.

HCM City’s industrial production down in eight months

HCM City’s index of industrial production (IIP) has failed to gain any momentum this year due to COVID-19, falling 5.4 percent year-on-year in the first eight months, the municipal Department of Industry and Trade has reported.

The IIP did, however, rise 4 percent month-on-month in August against July.

Consumption in manufacturing and processing was down 3.4 percent year-on-year while inventory was up 20.7 percent, mostly in wood production and processing, cigarettes, chemicals, and metallurgy.

Deputy Director of the municipal Department of Industry and Trade Nguyen Phuong Dong said local businesses have faced a raft of difficulties all year so need a debt waiver or extension or a tax reduction.

He suggested stimulating domestic consumption via the “Vietnamese prioritise Vietnamese products” campaign and teaching businesses how to access new policies under the EU-Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement (EVIPA).

According to the municipal statistics department, the city’s total trade surpassed 60.4 billion USD in the first eight months, up 0.03 percent year-on-year.

China remained its largest importer, with total revenue of over 6.84 billion USD, up 35.5 percent year-on-year, followed by the US and Japan.

Total retail of goods and consumption services topped 826.8 trillion VND (35.6 billion USD), down 3.3 percent compared to the same period last year.

Vietnam’s economy to bounce back: Asia Times

Experts remain optimistic that in the long-term, Vietnam’s economy will be able to bounce back from the current COVID-19 pandemic, according to a recent article published by the English language news media publishing group Asia Times.

It noted that Vietnam is successful in COVID-19 prevention and combat, even though the country is densely populated with over 97 million people and not widely equipped with modern medical facilities to cope with a pandemic.

Many people at home and abroad heaped praises on efforts made by the Vietnamese Government to contain the spread of COVID-19, it continued.

The article quoted Kenneth Atkinson, the founder of the international accounting firm Grant Thornton and Vice Chairman of the Tourism Advisory Board (TAB) in Vietnam, as saying that the latest outbreak means that there will be more reluctance to open the borders and that’s going to be the biggest challenge to get the tourism and hospitality sector back on track.

Atkinson and others are hopeful that with the recent EU-Vietnam Free Trade Agreement (EVFTA) coming into force, there will be an emphasis on foreign investment and a number of European companies will set up manufacturing operations in Vietnam.

Moreover, Vietnam’s Ministry of Health recently affirmed that the COVID-19 situation in both the central city of Da Nang and Quang Nam province is “under control.”

Local authorities have even allowed construction workers to resume working again on building sites in Da Nang, one sign that the city is slowly but surely already returning to normal, the article added.

Trade Office works to boost commercial ties with Laos amid COVID-19

The Vietnamese Trade Office in Laos has undertaken an array of measures to support Vietnamese exporters amid the declining trade revenue between the two countries in the first half of this year.

Trade Counsellor at the Vietnamese Embassy in Laos Le Thi Phuong Hoa told the Vietnam News Agency (VNA) that the office has regularly sent lists of Vietnamese exporters to relevant Lao agencies.

Those agencies then inform local enterprises that are seeking Vietnamese goods, Hoa said.

The office has also worked with businesses to address difficulties in goods transportation while coordinating with the Lao Ministry of Industry and Commerce to put forth mechanisms in support of companies.

According to the Counsellor, demand in Laos for production and construction materials and consumer goods has fallen significantly due to the impact of COVID-19.

The pandemic has also obstructed goods transportation and trade promotion activities, she added.

As a result, trade between Vietnam and Laos in the first half of this year was down 14.6 percent year-on-year, reaching just 491.7 million USD.

Vietnam imported goods from Laos worth 214.85 million USD, down 6.1 percent against the same period last year, while exporting 276.85 million USD worth of goods to the neighbouring country, down 20.2 percent.

Laos-Vietnam trade unlikely to reach target due to COVID-19

Laos-Vietnam trade growth in 2020 is unlikely to meet the target of 10-15 percent due to COVID-19, according to an article published by the Vientiane Times on September 4.

The article noted that social distancing measures the Vietnamese Government adopted in early 2020 to prevent the spread of the pandemic interrupted the export of certain products to Laos.

It cited figures from the Lao Ministry of Industry of Trade that showed two-way trade slipped to 134 million USD in July from 153 million USD in June.

The figure reached 1.68 billion USD (or 1.1 billion USD according to Vietnam’s figures) last year, it noted, adding that it will be hard to reach the same level this year because of COVID-19.

Laos mostly export beverages, ore, rubber, maize, cassava, and livestock to Vietnam while importing petroleum, fertiliser, iron and steel, machinery, electronic equipment, construction materials, and spare parts.

The article noted that Vietnam is not only Laos’ third-largest trade partner after Thailand and China but also its third-largest investor among 50 countries and territories.

It also highlighted that Vietnamese investors mostly focus on hydropower, mining, transportation, industrial crops, and services, contributing to socio-economic development in both countries.

The Lao Government has predicted that revenue from exports may be down 483.3 million USD, or 8.4 percent, this year compared to 2019. The country had targeted export turnover of 6.4 billion USD this year, but the figure in the first seven months was just 2.3 billion USD.

Breakthrough solutions needed to attract foreign investment

The Vietnamese Government Portal hosted a discussion on September 4 on breakthrough actions and solutions to attract foreign investment.

A report from the Ministry of Planning and Investment shows that as of August 20, the total flow of foreign direct investment (FDI) into Vietnam stood at 19.54 billion USD, equal to 86.3 percent of the figure in the same period last year. Of particular note, after difficulties at the beginning of the year, foreign investment has surged in recent months.

Economists said that this is evidence of new flows coming into Vietnam, which is viewed as an exceedingly attractive destination with competitive advantages, participation in new-generation trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA), and effective COVID-19 prevention measures.

Nguyen Van Toan, Vice Chairman of the Vietnam Association of Foreign-Invested Enterprises, advised businesses to take advantage of integration opportunities and intensify connectivity, as attracting high-quality FDI will bring about more opportunities for domestic companies.

To attract more high-quality FDI, Nguyen Dinh Cung, former Director of the Central Institute for Economic Management (CIEM), said that unofficial costs are barriers and bottlenecks hampering investment not only by foreign-invested enterprises but also by private domestic companies.

It is therefore essential to cut costs and quickly bring into full play all opportunities to welcome more foreign investors, he said.

Each investor needs a different policy, Cung said, so it is necessary to design policies in accordance with different investors.

Analysts also suggested Vietnam continue to reform its institutions to improve its investment environment and be proactive and consistent in its investment attraction policies.

Eight-month wood export turnover up 10.3 percent

Vietnam earned 7.83 billion USD from exporting forestry products in the first eight months of 2020, up 10.3 percent year-on-year and accounting for 29.9 percent of the agricultural sector's total export turnover. 

According to the Ministry of Agriculture and Rural Development’s Vietnam Administration of Forestry, the export value of wood and wooden products in the period was 7.32 billion USD, up 9.6 percent over the same period last year.

The export of non-timber forestry products surged 21.6 percent, reaching 511 million USD.

The US, Japan, China, the EU, and the Republic of Korea remained key importers of Vietnamese forestry products in the eight-month period, with a total value of 7 billion USD, or 89.5 percent of the country’s forestry export value.

The sector’s import value fell 9.3 percent, resulting in a trade surplus of 6.31 billion USD in the period.

The Voluntary Partnership Agreement (VPA) on Forest Law Enforcement, Governance, and Trade (FLEGT) between Vietnam and the EU, which took effect on June 1, 2019, has helped raise the competitiveness of Vietnamese wood and furniture in the EU.

Vietnam’s wooden furniture export turnover accounts for only 6 percent of the global market, meaning Vietnamese businesses have substantial opportunities to expand.

According to Do Xuan Lap, Chairman of the Vietnam Timber and Forest Product Association (VIFOREST), exports of forestry products are predicted to rise 20 percent to 12.5 billion USD this year.

Real estate investors advised to focus on new urban areas in Hanoi

Analysts from real estate consultants Savills Vietnam have advised investors to focus more on new urban areas in Hanoi, especially those with convenient infrastructure networks.

The city’s planned eight metro lines connecting the downtown area with outlying districts make the latter well worth considering, they told an online conference on September 3 updating businesses on market developments and opportunities for investment in major projects in Hanoi.

The housing market has suffered a short-term fall in demand due to COVID-19, but with the completion of infrastructure projects and the promise of profit, new housing projects boasting large numbers of apartments have been introduced.

According to Nguyen Duc Thiem, Savills’ sales manager in Hanoi, in the first half of this year some 29,400 apartments entered the market, of which more than 5,400 were sold, or about 19 percent.

Supply primarily came from seven projects, with prices rising slightly to 1,460 USD per square metre, he said.

Meanwhile, the housing market in Vietnam as a whole still boasts potential due to high demand, as the country’s population is predicted to reach 120 million by 2050 with an urbanisation rate of 57 percent.

Over the remaining two quarters of the year, Savills Vietnam predicts that about 24,200 apartments from four existing and 18 planned projects in Hanoi will be introduced to the market. Of these, 68 percent are under construction.

North Tu Liem, South Tu Liem, Gia Lam, and Hoang Mai districts are home to most of these projects.

Savills also noted that with Vietnam’s experience in controlling COVID-19, the country’s real estate sector will not be seriously affected.

Indonesian economy expected to grow by 4.5 - 5.5 percent in 2021

The Indonesian Government is upbeat about its economic growth target of 4.5 - 5.5 percent in 2021, Finance Minister Sri Mylyani Indrawati said.

At a Cabinet meeting on September 1, Sri Mulyani stated the target is realistic as Indonesia will soon bring the COVID-19 pandemic under control and successfully produce vaccine, while the global economic recovery has been supported by countries worldwide along with their efforts to prevent the virus.

In addition, positive development in the US-China relations will create a driving force for the global economy, she said.

The minister also laid stress on the country’s endeavours to improve administrative procedures to lure foreign investors, as well as the government’s economic stimulus packages, saying they are key drivers for the economy to gain its momentum.

She added that many international financial institutions even forecast higher growth for Indonesia, citing projections of the IMF, WB and ADB at 6.1 percent, 4.8 percent and 5.3 percent, respectively.

HCM City to auction 9 land plots in Thu Thiem

HCM City will auction land-use rights for nine land parcels covering 77,606sq.m in its Thu Thiem new urban area in District 2.

The auction will be organised by the city’s Land Fund Development Centre, which is working with the Thu Thiem area management to map the nine lots for auctioning, according to the Department of Natural Resources and Environment.

The parcels, in a highly developed commercial hub, are on the city’s list of major projects soliciting investments.

To take part in the auction, bidders need to pay a deposit of 20 per cent into a bank account. The department said bank guarantees would not be accepted.

They must be in real estate, use the land as stipulated in zoning plans and purpose, and demonstrate the capability to develop their project in harmony with the surroundings.

 

Nguyen Toan Thang, director of the Department of Natural Resources and Environment, said the auction would be held publicly, with the city directly apprising bidders about the starting prices to ensure transparency.

Nguyen The Minh, head of the Thu Thiem new urban area management, said the city had sought the Government’s approval to use the money from the auctions to repay loans and loan interest worth VND2.873 trillion ($123.63 million), and pay for land compensation and construction of infrastructure in the new urban area worth a total of VND 26.32 trillion.

Le Hoang Chau, chairman of the HCM City Real Estate Association (HoREA), said Thu Thiem had been extensively provided with roads, lights and other infrastructure.

“The city should have special payment methods to support investors.”

Tran Vinh Kim, sales director of real estate technology company Review Viet Nam, said the city should split up land plots before auctioning them to attract more investors.

Nguyen The Minh, head of the management board of the new urban area, said the Government Inspectorate had concluded that 61 land lots would need to be auctioned.

The urban area spreads over 657ha with nearly 30 per cent of the land meant for commercial purposes. The rest is for public services including a central square, riverside park and children’s playground.

Approved by the Government in 1996, the proposed financial district and mixed-use urban area is expected to become the largest inner-city development in Southeast Asia.

Acquiring all the required lands and clearing them have taken more than 10 years, with nearly 15,000 households being resettled.

Many local residents had filed complaints and lawsuits against violations by authorities, which delayed the ambitious project. 

Paper companies see bright prospects as demand increases

An increasing demand for tissue paper amid the COVID-19 pandemic means the future is looking bright for businesses in the paper industry.

According to the Viet Nam Pulp and Paper Association (VPPA), in the first five months of the year, paper production was estimated at 1.85 million tonnes, up 7.8 per cent over the same period last year.

Paper exports reached 656,900 tonnes, up 97.4 per cent. Paper imports reached 853,100 tonnes, up 7.8 per cent over the same period in 2019. Packaging paper and tissue paper products all grew in terms of production, export and import.

In the tissue paper segment, domestic consumption and export demand surged by 40.2 per cent year-on-year due to the outbreak, offering opportunities for paper businesses with large production capacity.

Paper producer Dong Hai Joint Stock Company of Bentre (DHC) reported positive earnings in Q2 and in the first half of this year.

In the second quarter, the company recorded net revenue of VND649 billion (US$28 million), 2.8 times higher than the same period last year. Post-tax profit was nearly VND79 billion, up 212 per cent compared to the second quarter of 2019.

Over six months, DHC achieved net revenue of VND1.3 trillion, 3 times higher than the same period in 2019. Post-tax profit was VND168 billion, up 3.5 times from 2019.

The company’s Giao Long Paper Factory phase II holds advantages in both scale and production capacity of kraft paper and carton packaging, giving DHC a competitive edge over its competitors.

Besides, with a large market share of the packaging segment for the seafood, garment and pharmaceutical industries, DHC is forecast to continue to achieve strong growth in the last two quarters of the year and beyond as demand rises.

Hapaco Group JSC (HAP) has recently announced investment plans to expand its tissue paper production lines. The new project is expected to improve the company’s business efficiency in the future. The plan has boosted the price of HAP on the stock market, reaching its ceiling prices in the past 12 trading sessions.

Shares in Viet Tri Paper Joint Stock Company (GVT) and Vien Dong Investment Development Trading Corporation (VID) have also increased strongly recently thanks to information on revenue and profit growth, along with planned projects to invest in high capacity paper production.

At its 2020 AGM, GVT approved a plan to invest in new packaging paper production lines. Its leaders targeted to increase the company’s productivity to 150,000 tonnes per year.

In 2019, GVT's post-tax profit increased 91 per cent to reach nearly VND72 billion. In 2020, has GVT set a minimum revenue target of VND1.2 trillion and profit target of VND80 billion, an increase of about 11 per cent for both compared to 2019.

For printing and writing paper production, production growth in the first two quarters of this year decreased compared to the same period in 2019. But according to the Viet Nam Pulp and Paper Association, the demand for printing paper and writing paper would grow again in the third quarter of 2020.

The production and export of books and notebooks will also increase again when pupils and students go back to school after the summer holidays.

This is good news for companies in this segment including Bai Bang Paper Company, Viet Nam Paper Corporation and other member companies. 

VIB to list 924.5 million shares on main exchange

The Vietnam International Joint Stock Bank (VIB) plans to move 924.5 million shares to the Ho Chi Minh Stock Exchange from the Unlisted Public Company Market (UPCoM), according to an exchange filing.

The Vietnamese lender was reported to have sent registration documents for listing shares worth nearly VND9.24 trillion (US$398 million) to Viet Nam’s main stock exchange early this week.

It is expected the share listing will proceed in November. The bank has been traded on UPCoM since 2017.

On the UPCoM, the price of VIB share increased 4 per cent compared to the beginning of the year, with an average trading volume of more than 1.9 million shares per day. Currently, VIB shares are traded at around VND22,700 apiece. 

Mat Bao acquires DigiPower

DigiPower has merged with Mat Bao Corporation, one of the leading domain registrars and hosting services providers in Viet Nam.

Demand for domain names and hosting services has increased sharply amid the Covid-19 outbreak since more businesses are adopting online models to meet a surge in online shopping, especially in big cities like Ha Noi, HCM City and Da Nang.

DigiPower has long experience in domain names and hosting.

Under the agreement, from September 3 DigiPower's entire HR system and customers migrated to Mat Bao, which is offering many preferential policies to welcome them.

Real estate sellers to push social media and e-commerce marketing amid crackdown on spam

Real estate companies have said that they will push marketing channels on social media and e-commerce floors instead of calling or sending text messages as a Government decree to tackle spam comes into effect next month.

Experts have said the decree will contribute to blocking spam messages, emails and calls to protect the interests of citizens.

Nguyễn Văn Đính, Vice Chairman of Việt Nam Association of Real Estate Brokers (VARS), said the decree will impact real estate sales efforts via telephone.

Brokers still use phone calls to send information to potential customers and using telephones is the least expensive sales channel, according to Đính.

On the business side, Thanh Niên (Young People) newspaper quoted a leader of Vạn Khang Phát Corporation as saying advertising through phones was a traditional sales channel and was effective, so was used by many companies.

"However, when the new decree is applied, sales of real estate via phone calls and text messages will have to change," he noted.

Businesses would have to promote other online advertising channels and e-commerce, which would probably cost more, he added.

Meanwhile, Nguyễn Văn Trung, a broker for the real estate portal batdongsan.com.vn, said senior professional brokers did not market real estate products to customers by phones but often used social media and other outreach channels.

Therefore, he did not feel worried about the impact of the decree. With older customers who rarely use the internet, Trung often meets them directly and finds this method more effective.

Marketing by phone was really annoying and Trung added he had even been called by salespeople from other real estate firms.

However, to sell products online, brokers also needed to invest more money and effort to get results, he noted.

Government Decree 91/2020/NĐ-CP on the prevention of spam messages, emails and calls will come into effect on October 1.

Under the decree, the Ministry of Information and Communications (MIC)’s Authority of Information Security will operate a system at the number 5656 where phone users can forward a spam text or call and let relevant units fine the spammers.

For the first time, Việt Nam will have a national list of subscribers who do not want to receive any advertising text messages (National Do not call - DNC) so users on the list won't receive spam messages or calls. Local phone users can register their number in the list via the system 5656.

Advertisers, telecommunications and internet service providers who make calls or send advertising text messages to phone numbers on the list will be fined up to VNĐ100 million (US$4,300) while telecommunication carriers who still allow calls and texts to go through will be fined from VNĐ140 million to VNĐ170 million.

According to the decree, advertisers can only send advertising text messages if they send a copy of each text message to the system 5656 as well.

According to the decree, firms providing internet and telecommunication services have to comply with the MIC’s requirements on the prevention and handling of spam. 

PM approves programme to boost productivity

Prime Minister Nguyễn Xuân Phúc has approved a national programme on supporting enterprises to improve productivity and the quality of products and commodities in the next 10 years.

The programme aims to support businesses to adopt standards, technical regulations, advanced management systems and tools to enhance productivity and quality of products and commodities, contributing to increasing the national total factor productivity (TFP) and competitiveness of the economy.

It sets specific objectives for two periods, namely in 2021-25, 65 per cent of the national standard systems (TCVN) will be harmonised with international and regional standards, while there will be capacity building and training for about 600 specialists and consultant staff on productivity and quality at ministries, agencies, localities and businesses.

In 2026-30, the harmonisation rate of the TCVN system with international and regional standards will be about 70-75 per cent; while the number of specialists being trained and certified will increase to 1,000, of which about 200 experts will be certified with regional and international qualifications.

In the next 10 years, the number of enterprises supported with solutions to improve productivity and quality is expected to increase by 10-15 per cent per year, of which the number of certificates for ISO 9001 quality management system and ISO 14001 environmental management system granted to businesses will increase at least 10 per cent compared to the 2011-20 programme.

At least 100 enterprises will be instructed to apply solutions synchronously to improve productivity and quality.

To achieve these goals, the programme sets out tasks and solutions, focusing on enhancing mechanisms and policies to boost productivity and quality, researching and proposing solutions on science, technology and innovation to improve national productivity and the productivity of each industry, province and enterprise in the economic restructuring process.

As these matters are key to the country’s sustainable development and raising the competitiveness of local enterprises, communication and information diffusion about productivity and quality improvement solutions will be strengthened.

In addition, the programme will help enterprises employ new advanced solutions and quality and productivity management systems fit for specific industries, helping businesses apply systems of traceability, adopt good agricultural practices (GAP) and invest in organic farming and green productivity.

The last programme (Programme 712) supported more than 5,000 businesses to adopt many solutions and systems to improve productivity and quality such as ISO 9000, ISO 14000, SA 8000 (global standards for managing human rights in the workplace), Good Manufacturing Practice (GMP) and Hazard Analysis and Critical Control Points (HACCP).

The Ministry of Science and Technology is responsible for implementing the programme.

Stock exchange profit up in H1

The Hồ Chí Minh Stock Exchange (HoSE)’s pre-tax profits increased 19 per cent year-on-year in the first six months to VNĐ238 billion (US$10.3 million).

There was also a rise in its revenues, which climbed 17 per cent to VNĐ380 billion, according to the exchange’s newly released half-yearly statement.

Transaction charges accounted for 85 per cent of its revenues. The rest was revenue from trading software usage, other commercial operations and services and listing fees.

HoSE is a State-owned enterprise under the Ministry of Finance, operating under the model of one-member limited liability company.

The exchange targets to earn nearly VNĐ810 billion in revenue and VNĐ453 billion in profit. It set out important tasks this year, including renewing the governance and preparing for the merger of two stock exchanges HoSE and HNX, perfecting the system of regulations, processes and professional guidance for the revised Law on Securities taking effect from the beginning of 2021.

HoSE said it would develop the market towards larger size, promoting liquidity while improving the quality of listed businesses.

By the end of June, the bourse had 380 listed shares, three closed-end fund certificates, four ETF certificates, 76 guaranteed warrants and 43 listed bonds.

The total value of the exchange’s market capitalisation reached more than VNĐ2.87 quadrillion, equivalent to 39.81 per cent of Việt Nam’s 2019 GDP.  

Stock exchange's profit up in first half

The Ho Chi Minh Stock Exchange (HoSE)’s pre-tax profits increased 19 percent year-on-year in the first six months to 238 billion VND (10.3 million USD).

There was also a rise in its revenues, which climbed 17 percent to 380 billion VND, according to the exchange’s newly released half-yearly statement.

Transaction charges accounted for 85 percent of its revenues. The rest was revenue from trading software usage, other commercial operations and services and listing fees.

HoSE is a State-owned enterprise under the Ministry of Finance, operating under the model of one-member limited liability company.

The exchange targets to earn nearly 810 billion VND in revenue and 453 billion VND in profit. It set out important tasks this year, including renewing the governance and preparing for the merger of two stock exchanges HoSE and HNX, perfecting the system of regulations, processes and professional guidance for the revised Law on Securities taking effect from the beginning of 2021.

HoSE said it would develop the market towards larger size, promoting liquidity while improving the quality of listed businesses.

By the end of June, the bourse had 380 listed shares, three closed-end fund certificates, four ETF certificates, 76 guaranteed warrants and 43 listed bonds.

The total value of the exchange’s market capitalisation reached more than 2.87 quadrillion VND, equivalent to 39.81 percent of Vietnam’s 2019 GDP.

Trade Office works to boost commercial ties with Laos amid COVID-19

The Vietnamese Trade Office in Laos has undertaken an array of measures to support Vietnamese exporters amid the declining trade revenue between the two countries in the first half of this year.

Trade Counsellor at the Vietnamese Embassy in Laos Le Thi Phuong Hoa told the Vietnam News Agency (VNA) that the office has regularly sent lists of Vietnamese exporters to relevant Lao agencies.

Those agencies then inform local enterprises that are seeking Vietnamese goods, Hoa said.

The office has also worked with businesses to address difficulties in goods transportation while coordinating with the Lao Ministry of Industry and Commerce to put forth mechanisms in support of companies.

According to the Counsellor, demand in Laos for production and construction materials and consumer goods has fallen significantly due to the impact of COVID-19.

The pandemic has also obstructed goods transportation and trade promotion activities, she added.

As a result, trade between Vietnam and Laos in the first half of this year was down 14.6 percent year-on-year, reaching just 491.7 million USD.

Vietnam imported goods from Laos worth 214.85 million USD, down 6.1 percent against the same period last year, while exporting 276.85 million USD worth of goods to the neighbouring country, down 20.2 percent.

50-million USD beach golf course to be built in Da Nang

The People’s Committee of the central coastal city of Da Nang has approved plans for a 36-hole golf course by property developer VinaCapital Group.

The city’s planning and investment department said the golf course will cover 22ha in Ngu Hanh Son district with an estimated investment of 1.168 trillion VND (50.8 million USD).

It said the golf and tourism project will include 500-room, four-star hotels and villas, a tourism village and entertainment centres.

The department said the project would add to the booming golf resorts and tourism projects that will be developed along 30km of pristine beach from Da Nang to Hoi An in the coming decades.

The 50 million USD project would make part of a series of golf and real estate projects VinaCapital has built along the coast.

The group has developed a chain of beach resorts such as the Dunes, the Ocean Villas, Norman Estates and the Dune Residence in Ngu Hanh Son district since late 2009.

The city said VinaCapital has invested 200 million USD in beach resorts, golf courses and apartment complexes in Da Nang.

At a conference in the city last year, seven golf course in central Vietnam agreed to join together to form a new golf-specific marketing group – the Vietnam Golf Coast – extending from Da Nang to the foothills of Hue and shores of Hoi An.

Da Nang alone earned 68 million USD per year from golf tourism, and the city expects to increase the figure to 186 million USD in the coming years when more golf courses open.

According to the International Association of Golf Tour Operators, 169 golf tourism companies operating in Asia plan to expand into Vietnam.

The International Association of Golf Tour Operators in cooperation with Da Nang’s Tourism department has built a strategy to develop golf tourism for Da Nang in 2017-22.

Da Nang and neighbouring provinces of Quang Nam and Thua Thien-Hue are popular tourism sites in central Vietnam, with beautiful golf courses designed by Nick Faldo, Greg Norman, Collin Montgomerie and Luke Donald.

Laos-Vietnam trade unlikely to reach target due to COVID-19

Laos-Vietnam trade growth in 2020 is unlikely to meet the target of 10-15 percent due to COVID-19, according to an article published by the Vientiane Times on September 4.

The article noted that social distancing measures the Vietnamese Government adopted in early 2020 to prevent the spread of the pandemic interrupted the export of certain products to Laos.

It cited figures from the Lao Ministry of Industry of Trade that showed two-way trade slipped to 134 million USD in July from 153 million USD in June.

The figure reached 1.68 billion USD (or 1.1 billion USD according to Vietnam’s figures) last year, it noted, adding that it will be hard to reach the same level this year because of COVID-19.

Laos mostly export beverages, ore, rubber, maize, cassava, and livestock to Vietnam while importing petroleum, fertiliser, iron and steel, machinery, electronic equipment, construction materials, and spare parts.

The article noted that Vietnam is not only Laos’ third-largest trade partner after Thailand and China but also its third-largest investor among 50 countries and territories.

It also highlighted that Vietnamese investors mostly focus on hydropower, mining, transportation, industrial crops, and services, contributing to socio-economic development in both countries.

The Lao Government has predicted that revenue from exports may be down 483.3 million USD, or 8.4 percent, this year compared to 2019. The country had targeted export turnover of 6.4 billion USD this year, but the figure in the first seven months was just 2.3 billion USD.

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

 
 

Other News

.
Thai billionaire, European brewer lose money in Sabeco investment deal
Thai billionaire, European brewer lose money in Sabeco investment deal
BUSINESSicon  16/10/2020 

The Sabeco price has seen a strong recovery in the last half a year, but is still at a low price. Both Thai billionaire and the big brewer Heineken have lost money because of the drop in Sabeco share price.

State firms more resilient than foreign, Vietnamese private companies: survey
State firms more resilient than foreign, Vietnamese private companies: survey
BUSINESSicon  15/10/2020 

Business resilience is highly correlated with level of digitisation, the Business Pandemic Resilience Diagnostic conducted by Grant Thornton...

Pandemic a test of fire for Vietnamese enterprises
Pandemic a test of fire for Vietnamese enterprises
BUSINESSicon  15/10/2020 

The COVID-19 pandemic has been a test for Vietnamese businesses as many have been and will be struggling to recover for the foreseeable future. 

Five expy projects unlikely to attract private investors
Five expy projects unlikely to attract private investors
BUSINESSicon  15/10/2020 

Although the National Assembly Standing Committee has given its approval to switch three of the eight subprojects of the North-South Expressway from the public-private partnership (PPP) format into wholly State-invested, 

Only 5% FDI projects in Vietnam use high technologies
Only 5% FDI projects in Vietnam use high technologies
BUSINESSicon  15/10/2020 

Vietnam is home to 32,539 valid foreign direct investment (FDI) projects with registered capital of a combined US$381 billion, of which US$233 billion has been fully disbursed.

The Vietnamese brain will decide
The Vietnamese brain will decide
FEATUREicon  16/10/2020 

"Vietnamese have nothing but brains to develop the country in the future." 

Vietnam banking sector to suffer in 2020 before rebounding in 2021
Vietnam banking sector to suffer in 2020 before rebounding in 2021
BUSINESSicon  15/10/2020 

Fitch Solutions expected credit growth to weaken to 7% in 2020 from 13.7% in 2019, but the growth is predicted to pick up to 12% one year later.

Realising revised growth ambitions
Realising revised growth ambitions
BUSINESSicon  15/10/2020 

Vietnam’s fourthquarter economic outlook is brighter on the back of a rise in domestic consumption and public investment.

Businesses line up for further support
Businesses line up for further support
BUSINESSicon  15/10/2020 

Continued facing with massive woes, the business community in Vietnam is in dire need of the government’s assistance for investors and enterprises to struggle through the global health crisis and grabbing new business

Infrastructure development at the centre of PPP decree direction
Infrastructure development at the centre of PPP decree direction
BUSINESSicon  16/10/2020 

Further clarifying the legal framework for infrastructure development via wider participation of private investors is expected to help the country attract more funding into the industry.

Gov’t support aids automobile industry
Gov’t support aids automobile industry
BUSINESSicon  14/10/2020 

The domestic automobile industry was forecast to thrive, given the Government’s supports in tax policies for imported automobile components coupled with the increasing income of citizens.

Digital economy and fintech see growth amid COVID-19
Digital economy and fintech see growth amid COVID-19
BUSINESSicon  15/10/2020 

The Prime Minister’s Economic Advisory Group met with the local fintech firm MoMo in HCM City on Monday.

Vietnam Airlines reports huge losses
Vietnam Airlines reports huge losses
BUSINESSicon  14/10/2020 

Vietnam Airlines Group, listed as HVN on the HCM Stock Exchange, earned nearly VND24 trillion (US$1.04 billion) in total consolidated revenue in the first nine months of this year, marking an estimated loss of VND10.75 trillion, 

Vietnam to increase imports of coal and gas
Vietnam to increase imports of coal and gas
BUSINESSicon  14/10/2020 

The latest data from the ministry sent to the National Assembly shows that Viet Nam is transitioning from an energy exporter to a net importer.

Coastal developers prepare for good upcoming times
Coastal developers prepare for good upcoming times
BUSINESSicon  14/10/2020 

In anticipation for the world eventually opening back up for travellers, developers are exploring the high potential of Vietnam’s world-renowned coastal urban areas.

Tax relief should not be “One size fits all”
Tax relief should not be “One size fits all”
BUSINESSicon  14/10/2020 

The Private Economic Development Research Board, under the Advisory Council for Administrative Procedure Reform, has proposed a 30% reduction in corporate income tax for all businesses this year.

Big investors pour money into IZ projects as land fund declines
Big investors pour money into IZ projects as land fund declines
BUSINESSicon  15/10/2020 

The land rent in some industrial zones in Hai Phong, Bac Ninh and Hai Duong has increased by 20-30 percent.

Vietnam urged to develop night-time economy
Vietnam urged to develop night-time economy
BUSINESSicon  14/10/2020 

Vietnam has missed some economic development opportunities and should not ignore the chance to grow the night-time economy, according to economist Tran Dinh Thien.

Tra fish swimming back to local market
Tra fish swimming back to local market
BUSINESSicon  14/10/2020 

Turning away from the uphill battle in exports due to COVID-19, tra fish producers have set an eye on the domestic market.

Investors find VN ports, logistics attractive
Investors find VN ports, logistics attractive
BUSINESSicon  13/10/2020 

With its annual growth of 12-14 per cent, the logistics sector, especially seaports, is becoming attractive to both domestic and foreign investors,...

 
 
 
Leave your comment on an article

OR QUICK LOGIN