Fishermen and fishing vessel owners in the coastal province of Quang Ninh will have their products and vessels seized by authorities from September if they don’t follow regulations on vessel registration, inspection, and reporting.

The province currently has more than 6,000 fishing vessels, of which 4,574 fishing vessels with a length of 6m or more have their data updated on the national fisheries database (Vnfishbase).

Among efforts to fight against illegal, unreported, and unregulated (IUU) fishing, Quang Ninh authorities asked fishing vessel owners to record the operation of every vessel, said deputy chairman of the provincial People’s Committee Vu Van Dien.

Coastal communes/wards were asked to set up a team overseeing the local fleet.

In addition, the authorities of coastal localities are responsible for making adequate and regular declarations of fishing vessels, and strengthening communication for vessel owners to comply with regulations on fishing.

By August 30, 2023, the localities must complete the registration of vessels and issuance of fishing licenses for all fishing vessels according to updated regulations.

Vietnam – attractive destination for North European investors: official

Thanks to incentives under the EU-Vietnam Free Trade Agreement (EVFTA), Vietnam has emerged as an appealing destination for enterprises from the European Union (EU) in general and Northern Europe in particular, Vietnam’s Trade Counsellor in Sweden and Northern Europe Nguyen Thi Hoang Thuy has said.

Through the EVFTA, which has been put in place since August 1, 2020, Vietnam has also stepped up “on-spot export,” the official told the Vietnam News Agency (VNA)’s correspondents in Europe.

Given global economic uncertainties, the trade deal has helped ease adverse impacts on the national economy, she said, noting that it will, fore sure, prove effective in the long term.

Thuy cited statistics from Northern European countries showing Vietnam’s exports to the markets during the 2020-2022 period grew 14.7% each year.

However, she said, the revenue has yet to meet expectations as the countries import goods from Vietnam through others in Europe like Germany, Belgium, the Netherlands, France and Poland.

The official suggested Vietnamese firms observe rules of origin and other stringent environmental and technical regulations if they want to benefit from tax incentives and gain a firm foothold in Northern Europe and the EU at large.

She also pointed out that there have been no direct flights, and cooperation in seaports and airports between Vietnam and North European countries yet, which has hindered their trading.

According to the trade counselor, Vietnam is attractive to enterprises in the EU and Northern Europe thanks to its large market of 100 million people, growing middle class and young workforce, along with the government’s strong commitment to achieving net-zero emissions by 2050.

“Businesses from Northern Europe have begun to show interest in investing in Vietnam, with Denmark emerging as a new investor,” she said, taking the example of Danish toy maker LEGO that invested over 1.3 billion USD to build a factory in the Southeast Asian nation last year.
 
Besides, the enterprises are tending to relocate to Vietnam to optimise incentives from the EVFTA when they conduct exports to the EU, the official added.

Thuy affirmed that the Vietnamese Trade Office in Sweden and Northern Europe always accompany businesses, helping them bring into full play opportunities generated by the deal.

VTIAC kicks off programme to review legal risks of contracts

The Vietnam Trade and Investment Arbitration Centre (VTIAC) has coordinated with Vietnam’s reputable law firms and offices to implement the programme "Support to Review Legal Risks of Contracts”.

The programme, which is completely free for registering from August 1 to October 31, 2023, is open to credit institutions, including banks, financial companies, finance leasing companies and people's credit funds, and businesses of all types and sizes.

Under the programme, VTIAC will assist credit institutions and businesses to review and assess legal risks in contract templates, drafts and signed contracts, consulting them to overcome legal risks and simultaneously proposing amendments to the dispute settlement provisions to prevent and limit legal risks.

VTIAC is committed to ensuring absolute confidentiality of the provided information and delivering practical results to the business community with thoughtfulness.

Please visit VTIAC's official website https://vtiac.vn for details.

Sustainable ports – inevitable trend: experts

 Ports serve as crucial gateways for transporting goods and services worldwide, meeting the demands of international trade and facilitating commerce between nations. However, they are also significant contributors to environmental pollution.

Therefore, developing green and sustainable ports has become a top priority, an inevitable trend not only for port operators but also managers and international associations, according to insiders.

Over 80% of global trade is transported by sea, but it has resulted in nearly one billion tonnes of greenhouse gas emissions, accounting for nearly 3% of global emissions caused by human activities. This is primarily from the maritime transport sector, experts said at a seminar entitled “Human Resource for sustainable port development" recently which was held recently by the Vietnam Port Association (VPA) in coordination with the Saigon Newport Corporation (SNP).

The event aimed to prepare human resources for developing sustainable ports, addressing climate change and environmental protection.

According to Tran Thi Tu Anh, deputy head of the Science, Technology and Environment Division under the Vietnam Maritime Administration, pollution sources in seaport exploitation activities include the construction of seaports, ports, production and business establishments in the maritime sector and seaport exploitation.

These activities affect air quality, water environment, cause erosion and generate more waste, she added.

Anh held that operators of ports, including the seaport system in the Southeast region, need ensure that their development, construction, and expansion processes are carefully planned and managed to minimise environmental impact.

Bui Van Quy, Deputy Director General of the Saigon Newport Corporation and Chairman of the ASEAN Port Association (APA), said that sustainable port development is one of the top priorities and the seaport system in the Southeast region is no exception.

It is necessary for each component of the maritime and seaport industry to be developed in a greener and smarter orientation, including smart ports, smart ships, smart logistics services, green technology and maritime human resources development.
 Tan Cang-Cai Lai International Port, one of the two green ports of Saigon Newport Corporation. (Photo: VNA)
Nguyen Xuan Ky, General Secretary of APA, Director General of Cai Mep International Seaport, suggested that seaports in the Southeast region should have a reasonable strategy for training and fostering human resources to realise the goal of building green and smart ports.

To solve the problem relating to human resources, the port industry of Ho Chi Minh City has identified two strategic tasks, namely accelerating short-term training for small and medium-sized seaport enterprises to supplement the current workforce shortage and focus on intensive human resource training to have a team of human resources whose quality on par with international standards.

SNP is a pioneer in implementing many measures to build human resources and retain employees, he said.

According to Duong Thanh Khang, Deputy Director General of the Thi Vai Port Complex Joint Stock Company, to build green and smart ports, it is essential to use clean and renewable energy in port exploitation and operation along with the application of information technology to protect the environment. Thus, high-quality human resources are needed to adapt to the digital age, meeting the requirements of sustainable seaport development.

Participants at the seminar underlined the need to implement a single-window maritime mechanism to reduce vessel berthing time at ports. Ports also need to adopt solutions to provide clean and sustainable energy, along with the establishment of sustainable human resources.

Vietnams eyes sustainable development of coastal cities

Vietnam aims for a model of coastal eco-cities that are smart, climate-resilient, and sustainably developed, where urban planning for coastal areas will centre around people, said insiders.

According to planning and architecture experts, it is necessary to select and make a rational and balanced land allocation commensurate with economic objectives; and ensure a well-organised system of public spaces and seaside squares within urban areas of various sizes.

Assoc. Prof Do Tu Lan and Dr. Dao Ngoc Nhu from the Urban Development Agency under the Ministry of Construction (MOC), underlined the necessity for urban design in coastal areas, especially the spaces in front of the sea.

Architectural works near the coast should have designs that are suitable for climate conditions, they said.

Experts and managers should identify focal points for coastal urban areas, especially entrance spaces, areas near seaports, and central squares, which adhere to green and smart construction standards, they added.

With more than 3,200 km of coastline, about 3,000 islands of all sizes, hundreds of beautiful beaches, and pristine bays, Vietnam boasts great potential for marine economic development, Lan said.

Urban areas in general, and coastal urban areas in particular, are playing a significant role in the socioeconomic development of each locality, region, and the entire nation.

Efficient planning, management, and development of coastal urban areas are closely linked with environmental protection and adaptation to climate change. These are crucial issues that contribute to the sustainable development of the maritime economy, while simultaneously facilitating the transition towards industrialisation and modernisation in the economic structure, she noted.

Taking into account tourism development in coastal cities, Assoc. Prof. Pham Trung Luong, Vice President of the Vietnam Association for the Protection of Marine Resources and Environment and a member of the National Planning Advisory Group, emphasised the importance of promoting sustainable and smart marine tourism urban development, saying that this element creates convenience and attractiveness for tourists, aligning with the global and regional trends in developing tourism destinations.

It is necessary to improve the system for collecting and processing waste from tourism to minimise negative impacts on the environment in general, and the coastal environment in particular, he said.

The Politburo issued Resolution No.06-NQ/TW dated January 24, 2022 on planning, construction, management, and sustainable development of urban areas in Vietnam till 2030, with a vision toward 2045, affirming urbanisation is an objective necessity and a crucial driving force for rapid and sustainable socioeconomic development in the coming years.

According to the strategy for sustainable development of Vietnam's marine economy until 2030 with a vision to 2045, pure marine economic sectors will account for about 10% of the national GDP by 2030; and The economies of 28 coastal cities and provinces are estimated to mark up 65-70% of the GDP.

By 2045, Vietnam will become a strong maritime nation characterised by sustainable development, prosperity, security, and safety, and its marine economy will play a crucial role in the national economy.

These ambitious goals serve as significant directions, opening up opportunities and providing a driving force for coastal areas, including coastal cities.

Currently, there are over 40 coastal cities across the country, including HCM City, Da Nang, Nha Trang, Vung Tau, Rach Gia, Phu Quoc. The urban areas, including coastal ones, account for approximately 70% of the national GDP growth, and increasingly demonstrate their importance for the nation’s socioeconomic development. Economic growth in urban areas averages between 12% - 15%, 1.2 to 1.5 times higher than the national average growth rate.

Urban development serves as a motivation for economic growth, contributing to developing an independent, self-reliant, and integrated economy.

Which localities recorded US$20 billion in commodity exports in seven months?

Ho Chi Minh City and the northern province Bac Ninh are two localities which recorded export turnover exceeding US$20 billion during the past seven months, according to data detailed by the General Department of Customs.      

As of July, the export turnover of the two localities reached US$23.6 billion and US$20.6 billion, respectively, ranking first and second in the country. Following is Binh Duong, with export turnover in the initial seven months of the year hitting US$17.34 billion.

Regarding imports, the five localities with the highest import during the reviewed period include Ho Chi Minh City with US$31.1 billion, Hanoi with US$20.2 billion, Bac Ninh with US$17.5 billion, Binh Duong with US$12.2 billion, and Hai Phong with US$11.4 billion.

Over the years the southern metropolis has always played the role as the leading locality in the country in terms of imports and exports.

According to information provided by the Vietnam Import and Export Report 2022, Ho Chi Minh City also led the 10 provinces and cities with the highest export turnover nationwide with US$47.5 billion.

However, like many other localities across the country, the southern city’s imports and exports since the beginning of the year have faced numerous difficulties and have been in decline.

During the seven-month period, the city's exports fell by US$5 billion. This decline can primarily be put down to the fact that the global economy has been strongly affected by geopolitical conflicts, whilst high global inflation has made consumers "tighten their wallets", thereby causing negative impacts on the exports of the whole country, including Ho Chi Minh City.

According to survey results given by the HCM City Business Association members, June alone saw 30% to 50% of enterprises lack new orders, of which the strongest impact was recorded in the leather, footwear and garment industry with revenue dropping by 30% to 50%. Elsewhere, wood production saw a drop of 31%; the rubber-plastic industry endured a drop of 20%, and labour by 30% due to a steep fall in orders.

In particular, the steel industry showed the most difficulty when up to 95% of enterprises reported losses, with revenue plunging by 40% to 50%, while inventories increased coupled with falling domestic purchasing power.

Therefore, the HCM City Business Association has requested that municipal leaders propose that the Government direct the implementation of business support packages in an appropriate and practical way, such as assisting them in finding orders, bolstering exports to new markets, and participating in and organizing a broad array of fairs and exhibitions.

To help the southern city, as well as other localities throughout the country, boost their exports, Ho Chi Minh City and the Ministry of Industry and Trade are poised to host a string of events which aims to connect the international goods supply chain. This includes conferences, seminars, trade connection activities, and an exhibition connecting the international goods supply chain, namely Viet Nam International Sourcing Expo 2023.

The event seeks to effectively support businesses in their efforts to become more involved in the global production and supply chain, adapt to the trend of deeper international economic integration, as well as enhancing connectivity between distribution channels and foreign importers, as well as domestic production and export enterprises. This will serve to promote export growth at the end of the year.

Average Vietnamese coffee export price sets record high in July

The average price of Vietnam's exported coffee in July set a new record by being traded US$2,828 per tonne, growing by 5.4% against June, marking a rise of 23.4% over the same period from last year.      

The Ministry of Industry and Trade reported that the country exported 108,870 tonnes of coffee in July, worth US$307.86 million, marking a drop 7.6% in quantity but a rise of 14.1% in value compared with July, 2022.

The seven-month period saw the country ship 1.12 million tonnes of the product abroad valued at US$2.7 billion, representing a fall of 3.4% in volume but an increase of 3.7% in value on-year.

The average price of exported coffee throughout the January to July period reached US$2,418 per tonne, an annual increase of 7.3%.

In July, Vietnamese coffee exports to a number of traditional markets such as Germany, the United States, Russia, and Belgium decreased. In contrast, coffee exports to Italy and the Netherlands witnessed three-digit growth compared to the same period from last year.

During the reviewed period, the nation’s coffee exports to Germany, Spain, and Belgium all experienced a downward trajectory, whilst exports to Italy, the US, Japan, Russia, Algeria, Mexico, and the Netherlands enjoyed robust growth.

Green credit provision strengthened in agriculture

The Ministry of Agriculture and Rural Development (MARD) is planning to coordinate with the State Bank of Vietnam in completing policies on preferential credit to support agricultural projects following value chains, applying high technologies and specialising in clean agriculture and production forest planting.

Statistics from the central bank showed that as of the end of 2022, outstanding loans for green projects reached 21 billion USD, accounting for more than 4% of the total outstanding loans of the whole economy, and an increase of nearly 13% compared to the end of 2021.

In the 2017-2022 period, the credit balance of the banking system for Vietnam's green fields had an average growth rate of more than 23% per year. Of the 12 green areas, credit balance in clean agriculture accounted for 32%.

According to the Law on Environmental Protection, green credit is one granted to an investment project that effectively uses natural resources; responds to climate change; strengthens waste management; promotes pollution treatment, environmental quality improvement; restores natural ecosystems; specialises in conservation of nature and biodiversity; and generates other environmental benefits.

In September 2022, the MARD Minister issued a decision approving an action plan of the ministry in implementing the national strategy on green growth in the 2021-2030 period, aiming to promote agricultural development towards ecological, organic, circular, low carbon, and energy and natural resources efficient direction, heading to a carbon-neutral economy in 2050.

Over the years, many large-scale firms have invested in organic and circular agriculture in all areas of breeding, cultivation and aquaculture. Agriculture is one of the areas with the highest demand in green credit.

Along with support from State agencies, experts advised businesses to seek measures to effectively access green credit resources by clarifying their projects’ efficiency in environmental improvement as well as sustainable production solutions that are beneficial to the environment.

Fruit and vegetable export turnover ranks 3rd among agro-forestry-fishery products

From the beginning of the year to mid-July, fruit and vegetable exports reached more than US$2.9 billion, ranking third in the group of agro-forestry-fishery products, according to the General Department of Customs.      

Fruit and vegetable exports are currently behind wood, timber products and seafood in the group of agricultural, forestry and fishery products, ranking 8th out of 45 key export items of the country.

Notably, during the first months of the year, while the export of two key products of the agricultural industry, namely seafood and timber fell sharply, fruit and vegetable exports have continuously set new records, with more Vietnamese fruits having been exported in recent times.

As of the first half of July, fruit and vegetable exports nearly exceeded the export value of this kind of products by roughly US$3.16 billion for the whole year of 2022. In which, durian, mango, dragon fruit, banana are the major products that recorded the highest turnover.

If in the remaining months of the year, fruit and vegetable exports maintain the average turnover achieved during the seven-month period, the export turnover of nearly US$5.4 billion, up 59.2% on-year (US$2 billion) is highly within reach for this year.

The figures is achievable as potential export markets for Vietnamese fruit and vegetables are being expanded, especially from those that have signed free trade agreements (FTAs) with Vietnam.

During the first months of the year, Vietnamese fruit and vegetables gained their entry into 27 major markets, with export turnover reaching over US$ 10 million in 15 markets, especially 3 markets with more than US$100 million, including China, the US, and the Republic of Korea.

Besides, the US Department of Agriculture’s Animal and Plant Health Inspection Service has announced its permission for Vietnam to export fresh husked coconut to the country.

The US’ opening is expected to help coconuts swiftly become one of Vietnam's billion-dollar export fruits.

The Vietnam Fruit and Vegetable Association highlighted great opportunities for the nation to export fruit and vegetables to China - one of the largest markets for this type of products, especially when both nations have signed many protocols for the exports of agricultural products. In particular, durian exports to the Chinese market have "boomed" with a turnover of up to US$1.5 billion.

There are positive signs regarding banana exports. Thanks to the protocol signed with China in November 2022, Vietnamese banana exports are expected to increase by hundreds of millions of dollars this year.

Besides, if including the increased demand for bananas from Japan, the Republic of Korea, and the Middle East, this year's banana exports are likely to bring in a revenue of US$700-800 million.

From now to the end of the year, it is forecast that in the third and fourth quarters, nearly 7.6 million tons of main fruits will be consumed such as mango, banana, dragon fruit, pineapple, orange, longan, durian, jackfruit, and avocado. This indicates that the supply of fruits is and will be very abundant, fully meeting export orders in the near future.

In order to further facilitate fruit and vegetable exports, the Ministry of Agriculture and Rural Development is intensifying the granting of planting area codes and packing facilities for local businesses.

Additionally, the ministry also encourages cooperatives and business establishments to strongly change agricultural production to an agricultural economy, while boosting the development of ecological, green and circular agriculture.

"Copycat layoffs" won't do the tricks

Just because many companies are shedding staff by thousands amid the economic downturn doesn't mean others should follow suit.

According to Agency for Business Registration, the economic downturn has hit so hard that over 100,000 companies either ceased operations or waited to be dissolved in the first six months of 2023.

Mass layoffs were running rampant in the real estate sector and creeping into others, including IT and e-commerce. From September 2022 to May 2023, three in every 10 Vietnamese companies had to trim ranks to cut costs, resulting in a 13 per cent drop in the labour force.

The picture was not any brighter in a recent Navigos Group report, which shows that 30 per cent of companies opted for downsizing to weather the storm, whereas 41 per cent held steady to bide for time.

But it's not all doom and gloom. Around 25 per cent went against the flow by scaling up their production amid the downturn.

The figure says a lot about how companies were changing the way they deal with dwindling revenues: optimising the workforce to avoid the pain of layoffs.

Thanh Nguyên, Executive Director of the Anphabe, said layoffs might seem like a quick and effective short-term solution, but would come at higher costs in the long term, especially in terms of employee loyalty and productivity.

Suntory PepsiCo Vietnam Beverage understands that and has used digital technologies to streamline its operation rather than taking the easy way out. Its digital efforts have helped save 4,000 working hours per year and double its revenues.

BAT Group employed time management applications and a "meeting-free days" policy to improve its efficiency and cut meeting time by 63 per cent. Less time for meeting bloat means that more time could be used for productive activities.

Schneider Electric Vietnam went so far as to use education and training to change the mindset of its employees to improve their performance. 90 per cent of its staff will reportedly undergo the mindset-changing process until 2025.

Nguyễn Thị Thu Hòa, Director-General of the ADP Group, said a balanced employer-employee relationship creates a mutual win. Therefore, a well-developed employee care policy would help companies to reap optimal benefits productivity-wise.

"Only by mutual respect and working together toward a common goal can they overcome the challenges and achieve success," said Hòa.

Economist Võ Trí Thành told Việt Nam News that layoffs will continue unabated until the end of this year but decelerate in the next thanks to the global economic recovery and the effects of favourable policies.

Export-linked manufacturing would be the sector most hard-hit by the downturn whereas services would come out of it better off, buffering its impact on the labour market.

He suggested education and training be top of mind for the companies that aim to weather the downturn without cutting headcounts on the payroll.

"Companies should launch education and training programmes to better prepare their employees for the turbulence in the labour market," said Thành.

Navigos Group's report shows that amid the downturn 56 per cent of companies in the high-tech sector made redundancies to stay afloat. The figures for agriculture, consumer goods, construction materials, and automobile sectors were 38, 38, 34, and 52 per cent, respectively.

Furniture market to see increased competition

Việt Nam's furniture market has been said to be among some of the fastest growing in the Asia Pacific region, attracting major international brands to enter the country in recent years, said industry experts.

Central Retail, a large Thai retailer, recently launched its Come Home brand, a furniture and home decor business in SC VivoCity, a shopping centre located in District 7 in HCM City last month. 

Come Home is one of Central Retail's major projects in Việt Nam and a key part of the group's US$1 billion investment in the Southeast Asian economy.

A representative from Central Retail said the group has full confidence in Việt Nam's market potential for growth based on its own research, which projected the market's revenue to reach $1.4 billion by the end of this year. 

In addition, the market has shown an annual growth rate of about 10 per cent during the period of 2023-2027 with a large portion of the growth contributed to living room furniture, estimated at $523 million for this year alone. Other segments including bedroom furniture and decorative items are experiencing rapid growth, according to the group's data.

The group said despite an ongoing global economic downturn and diminishing purchasing power, there is still strong demand for furniture in the Việt Nam market, fuelled by a strong movement of modernisation and personalisation in the living space. 

The Thai retail group isn't the only international brand setting up shops in Việt Nam in the last few years, hoping to capitalise on the market's explosive development, lower tariffs, improved trade environment and logistics, said experts. 

JYSK, an international retail chain from Denmark specialising in providing Nordic - Scandinavian style decoration and furniture, opened a new store in the Indochina Plaza Hanoi Residences in the capital city. 

Since its debut into the Việt Nam market in 2015, JYSK has been constantly expanding its collection of product offerings including interior furnishings, decorations, household items, bedding and mattresses, as well as balcony and garden outdoor furniture.

The Danish retail chain is currently running 12 stores across the country, according to a JYSK's representative. 

As international brands start making an impact on the domestic market, domestic brands have been wasting no time improving their products' quality to better position themselves to retain and gain more market share. 

For example, Hòa Phát's interior furniture, traditionally a mid-range segment player in office furniture, has introduced The One chain, an upscale store aiming at the mid-to-high-end segment of the market in April this year. 

"There are currently several interior furniture brands competing for this segment such as A Concept, Baya, MOHO, JYSK, Nhà Xinh, Index Living Mall, Chilai, BoConcept - Premium Furniture, and Sonder Living. Many Vietnamese customers have shown their preference for imported products including Scandinavian, European, and Japanese brands", said Trang Lê, an interior design consultant from HCM City. 

According to a Mordor Intelligence report, the scale of the Vietnamese furniture market is expected to expand from $1.4 billion in 2023 to $1.82 billion in 2028, with a compound annual growth rate of 5.33 per cent during the period.

Meanwhile, the Southeast Asian economy's wood export turnover has been increasing in size as the country's wood sector transformed into a future global product hub thanks to its strong raw material industries. Vietnamese furniture products have been well-received in over 120 countries including major markets such as the US, the EU, the UK, Canada, Japan and Australia. 

HoSE welcomes another ETF simulating index of “diamond” stocks

The HCM Stock Exchange (HOSE) on Friday officially put 5.1 million fund certificates of BVFVN DIAMOND ETF into transaction.

Coded FUEBFVND, the certificates, worth a total value of VNĐ51 billion (US$2.1 million), and a reference price on the first trading day of VNĐ11,065 per certificate, with a price fluctuation range of +/-20 per cent.

This is the third ETF (portfolio exchange fund) that mimics the VN DIAMOND index on the market after the VFMVN DIAMOND ETF (FUEVFVND) and the MAFM VNDIAMOND ETF (FUEMAVND) to meet the selection needs of investors, especially foreign institutional investors. This is expected to attract additional capital flows into ETF products on Việt Nam’s stock market.

VN DIAMOND Index is announced and managed by HOSE, including a minimum of 10 and a maximum of 20 component stocks. Stocks must meet certain conditions in terms of market cap, transaction value, and foreign ownership to be included in the VN DIAMOND Index.

They should also have foreign ownership of at least 95 per cent of the limit and the remaining stake foreign investors can buy should not be worth more than VNĐ500 billion.

The market cap of individual stocks is 15 per cent of the index and any one industry must not account for more than 40 per cent.

The BVFVN DIAMOND ETF is a portfolio swap fund with no operating time limit, managed by Bảo Việt Fund Management Company Limited.

Fund founders cum distribution agents include Bảo Việt Securities Joint Stock Company, Securities Joint Stock Company of Bank for Investment and Development of Việt Nam. The custodian bank is the Joint Stock Commercial Bank for Foreign Trade of Việt Nam, the transfer agent is the Việt Nam Securities Depository (VSD).

The recent strategic report of SSI Securities Joint Stock Company showed that the investment trend in Việt Nam's ETFs in the long term remains positive, especially from foreign individual investors.

However, it should be noted that the cash flow trend of ETFs depends a lot on the psychology of individual investors. Money flow will only come in strongly when the market experience a strong correction or the market confirms a clear uptrend, the report said.

Market lifted by hopes of positive economic results in H2

After the second quarter business result reporting season passed, the Vietnamese stock market is entering a quiet week as there is no key data to be released.

However, analysts say the market is supported for the longer term by the positive economic outlook in the second half.

On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index closed last week at 1,232.2 points. Despite experiencing strong fluctuations, the index still managed to set a weekly gain of 0.5 per cent.

The HNX-Index on the Hà Nội Stock Exchange (HNX) last traded at 254.3 points and gained 1.2 per cent for the week.

The liquidity decreased slightly last week, with the average trading value of the whole market reaching over VNĐ26.3 trillion (US$1.1 billion), down 1 per cent compared to the previous week.

Foreign investors net sold VNĐ733 billion and VNĐ50 billion on HOSE and HNX, respectively, while net bought a huge amount of VNĐ990 billion on UPCOM.

As a result, they net bought VNĐ209 billion on all three exchanges.

Đinh Quang Hinh, Head of Macroeconomics and Market Strategy Department of VNDirect Securities Corporation, said that the market will continue to struggle at the strong resistance area of 1,240-1,250 points this week.

Given the recent long rallies and the lack of supporting information this week, Hinh said that the market needs a break to accumulate and establish a new price level.

Therefore, it is unlikely to establish a clear trend in the next few weeks. As the market benchmark hovers at high levels, speculative cash flows may continuously circulate between groups of stocks, forming short-term uptrends or corrections.

However, for the longer term, the analysis team from Mirae Asset Securities (Vietnam) said that the domestic stock market is supported by the expectation that the economic results would improve in the second half of the year.

Mirae Asset expects the growth of most industries to be positive in the second half thanks to lower lending rates and boosted credit growth, recoveries of exports and domestic consumption, public investment projects, and the Government’s supportive policies.

Investor sentiment is optimistic, which is reflected in the number of new accounts. Specifically, the number of new accounts reached more than 100,000 per month from May to July.

Meanwhile, SSI Securities Corporation (SSI) said that the market's attention is shifting to the FTSE Russell review in September.

The organisation’s moves towards Việt Nam will be the clearest signal for the stock market's prospect of upgrading to an emerging market.

The Vietnamese stock market has been on FTSE Russell's watch list since 2018, and in its review in March, the organisation raised concerns related to the lack of clarity on the timing of market reform and warned of reconsidering Việt Nam’s membership in the watch list in the next review period.

However, at the July Dialogue on Macroeconomics and the Stock Market, taking place at the end of July, the Chairwoman of the State Securities Commission (SSC) Vũ Thị Chân Phương said that the meeting between the SSC and rating agencies in August is expected to be a key factor in helping solve the problem, demonstrating the Government's strong determination to upgrade the country’s stock market to the FTSE's emerging market by 2024 or 2025.

The securities firm also said that the profit picture in the second quarter has not really accelerated amid macroeconomic challenges, but declines have narrowed significantly and slowed down for three consecutive quarters with the possibility of hitting bottoms, showing that the Government's supportive policies are gradually reflecting in the recovery efforts of businesses.

SSI believes that the recovery of profit growth in the last two quarters of the year, as well as supportive government policies, is a solid foundation for the stock market to maintain a stable uptrend in the medium and long term.

However, short-term correction risks still exist, and the market may have stronger fluctuations in the near future. 

Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes