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Savills highlighted some large-scale merger and acquisition (M&A) deals in Vietnam in the second quarter of 2023, including Everland Opportunity IX’s purchasing of three hotels in Vietnam and Indonesia from Strategy Hospitality Holdings Ltd. with 106 million USD.
Meanwhile, Keppel and Keppel Vietnam Fund acquired a 49% stake in two residential projects in Thu Duc city in Ho Chi Minh City with an area of 11.8 hectares from Khang Dien Group with 136 million USD. THT Development Co. Ltd. also transferred 1.13 hectares of land in Starlake City in Hanoi to CMC Technology Group to build an innovation centre with an investment of 76 million USD.
Troy Griffiths, Deputy Managing Director of Savills Vietnam, said that despite short-term pressures on inflation as well as a decline in production and export, Vietnam's medium-term outlook remains positive. The reduction in interest rates prescribed by the State Bank of Vietnam (SBV) has stimulated economic growth by reducing the cost of capital for borrowers and credit institutions.
FDI inflows into Vietnam are showing many promising opportunities. Although the total FDI decreased, newly registered projects and capital increased sharply, especially in the manufacturing sector. Improvements in infrastructure development, administrative reform and investment in innovation hubs in Vietnam are also contributing to making the market more attractive to international investors, said Griffiths.
Thomas Rooney, Senior Manager of Industrial Services at Savills Hanoi, said that the Purchasing Managers' Index (PMI) and the Index of Industrial Production in Vietnam both had positive increases in the first months of 2023. The market continues to record large investment deals and business activities are bustling. However, the current global economic situation has led to a decline in aggregate demand. He held that the State needs to solve the problem in a timely manner and in combination with preventive measures to promote economic development.
The official held that until the end of 2023, transactions will continue to take place and the supply still be abundant. As for the supply of ready-built factories, the attraction of localities such as Hai Phong will increase in the eyes of investors as well as tenants. In addition, Bac Ninh is also an ideal choice for domestic and foreign tenants as well as investors in developing ready-built warehouses, as the province has risen to the third place in terms FDI attraction, he noted.
In general, the shift to the global supply chain has created many new opportunities and also brought certain challenges. Therefore, the Vietnamese market needs to grasp trends and access opportunities fully and quickly, so that it can make the best use of it and create a breakthrough, according to Savills.
Vietnam fisheries int’l exhibition opens in HCM City
The Vietnam Fisheries International Exhibition – Vietfish 2023 kicked off in Ho Chi Minh City on August 23.
Nguyen Thi Thu Sac, Chairwoman of the Vietnam Association of Seafood Exporters and Producers (VASEP), said under the theme of “Asia’s Home of Seafood”, the event, the biggest of its kind in Vietnam, is a venue for managers, retailers, suppliers, manufacturers, and exporters to meet, introduce new technology, and seek cooperation opportunities.
After 24 editions, Vietfish has become a traditional event of the industry, gathering quintessence in the entire chain from feed, seed, farming, processing, export, and ancillary service units for the industry.
Vietfish 2023 gathers more than 420 booths run by businesses from 14 countries and territories. Several sideline activities will be held during the three-day event, including conferences and symposiums to help enterprises in the sector catch up with the latest trend and market information.
The exhibition runs until August 25.
Mekong Delta and central region agree tourism links
A agreement to link tours has been inked by 11 provinces from the Mekong Delta region and the coastal central provinces of Thừa Thiên-Huế, Quảng Nam, Đà Nẵng, Quảng Ngãi and Bình Định to boost and exchange diversified tourism products and services in the two popular tourist regions.
The deal will focus on introducing potential tourism options within 15 provinces in the Mekong Delta and central and Central Highlands region, offering domestic and international visitors at any tour-linked provinces promotion programmes and unique tourism products.
Deputy Chairman of Trà Vinh Province People’s Committee Nguyễn Quỳnh Thiện said the Mekong region of 12 provinces hosted 37 million tourists with total revenue of VNĐ32 trillion (US$1.28 billion) in 2022.
He said in the first six months of 2023, the region has welcomed 27 million visitors for revenue of VNĐ28 trillion (VNĐ1.12 billion), but tourism income has yet to reach its peak from before the COVID-19 pandemic.
Thiện said Trà Vinh alone received 1.1 million tourists in the first half of 2023 to collect VNĐ950 billion ($38 million) in revenue.
He said national flag carrier Vietnam Airlines and budget VietJetAir are operating daily flights connecting Đà Nẵng and Cần Thơ – a key centre in the Mekong region – creating more smooth traffic for the two regions to join hands in tourism growth.
Newly appointed Deputy Chairman of Đà Nẵng City’s People’s Committee Trần Chí Cường said tourism connection is needed to create unique attractions and make different products and services.
He said Đà Nẵng will offer the best conditions for travel agencies and businesses from the two regions to build links and co-operation in tourism and investment.
Travel agencies and businesses from the two regions also signed deals on tourism exchange and sharing for the last half of the year and going forward.
Earlier, three central localities – Thừa Thiên-Huế, Quảng Nam and Đà Nẵng – also agreed to develop a joint ‘green’ tourism link to boost unique tourism services and follow trends of sustainable and environmentally-friendly travel.
Đà Nẵng has been building a favourable destination of MICE (Meeting, Incentives, Conference, and Exhibitions) and golf tours, while Quảng Nam is boosting its ‘green’ brand tourism.
The central coastal region is a rendezvous of world heritage sites including Hội An ancient town, Mỹ Sơn Sanctuary, Huế Monuments complex, Phong Nha-Kẻ Bàng karst cave system as well as sea and island tour services in Quảng Nam, Quảng Ngãi and Bình Định.
Central province calls for investment from the US
The central province has called for investment and co-operation from US businesses in energy, oil refining and industrial environment treatment technology, and to join the second phase of the Dung Quất Refinery upgrading and expansion project.
The co-operation and investment proposals were discussed at an investment promotion event by the central provincial working team in Houston, Texas last week with the participation of 32 businesses and groups including Baker Hughes, Energy Transfer, Energy Capital Việt Nam, ExxonMobil and Globalinx Group.
Vice chairman of the provincial people’s committee Võ Phiên urged energy groups from the US to speed up investment and co-operation in the Dung Quất Economic Zone – which has been designed as a key ‘green’, ‘smart’ and sustainable industrial complex by 2045 – and Bình Sơn Oil Refinery plant (BSR).
He also suggested support for industrial environment treatment technology at the Dung Quất EZ and other industrial parks to meet the standards of COP26 (the 26th UN Climate Change Conference of the Parties).
Head of the Dung Quất EZ and Industrial Zones managing board Hà Hoàng Việt Phương said the province planned to develop the Dung Quất EZ as a multi-sector industry and sea-based economy centre on a total of 45,332ha.
Phương stressed the zone would focus priorities in renewable energy and a circular economy with the focus on core industries of oil refining, steel, shipyards, sea ports and high-tech industries.
He also introduced preferential policies for investment promotion and procedures for US businesses investing in the province.
Investors would also enjoy a 10 per cent tax rate for 15 years, a four-year tax exemption and a 50 per cent cut in income tax for the following nine years, he said.
He added that the tax exemption regulations would add a five-year free import tax on materials and semi-finished products for investors.
Khương Lê Thành, a member of the Bình Sơn BSR Executive board, said the second phase of the Dung Quất refinery project would be built on 108.2ha with an investment of US$1.8 billion, and it will help increase capacity of the refinery plant from 6.5 million tonnes of crude oil to 8.5 million tonnes per year.
Thành said BSR, which is now refining 85 per cent of domestic crude and 15 per cent of crude exports, could process crude oil and marine fuel oil (MFO) for export.
According to a report from the Dung Quất EZ, 346 projects have been in effect with an investment of nearly US$18 billion, including 58 foreign direct investment (FDI) projects worth $1.84 billion.
The Dung Quất EZ is an investment destination for the Việt Nam-Singapore Industrial Park (VSIP) and South Korea heavy industries Doosan Enerbility Việt Nam (Doosan Vina) with total investment of $739 million.
The provincial delegation paid a working visit to the technology centre of Backer Hughes and the oil refinery and petrochemical centre of ExxonMobil.
The province also invited the US groups and businesses to visit the Dung Quất EZ and industrial zones for further investment and co-operation in the coming time.
Vietnamese, Canadian firms step up clean energy development partnership
The Canada-Việt Nam Clean Energy Partnership forum took place in HCM City on Monday, aiming to connect the sides’ private sectors and, through such links, enable Canadian contributions to the Just Energy Transition Partnership (JETP), helping Việt Nam achieve its net-zero emissions goal by 2050.
At the event, jointly held by the Canadian Consulate General in the southern economic hub and Canada-ASEAN Business Council (CABC), experts introduced numerous collaboration solutions.
Ranjith Narayanasamy, President and CEO of the Petroleum Technology Research Centre (PTRC), stated that carbon capture, utilisation, and storage (CCUS) play a crucial role in reducing greenhouse gas emissions and developing clean energy. The PTRC has been involved in a research project sponsored by the Asian Development Bank (ADB) to test related technologies in Việt Nam.
However, many participants, including representatives of domestic businesses, expressed concerns. They highlighted that the development and application of CCUS technologies in Việt Nam are facing numerous challenges, as they require large-scale testing and experimentation, and substantial investment.
Michael Smart, Export Development Canada (EDC)’s business development lead for Asia and Indo-Pacific, stated that EDC has specific financial solutions for climate-related projects. Since 2012, the state-owned enterprise has provided over CAD35 billion for clean technology application projects.
Boris Jacouty, Director of Business Development – Infrastructure at the Canadian Commercial Corporation (CCC), mentioned that CCC assists foreign partners in seeking opportunities for joint works with Canadian firms and in benefiting from the Canadian government's contract guarantee mechanism. In the 2021-2022 period, the value of contracts supported by CCC amounted to $6.5 billion.
According to the Canadian Consulate General, as part of JETP, which Việt Nam signed with the G7 countries, Canada will mobilise US$15.5 billion from private sector and government sources in the next three to five years to aid Việt Nam's green transition process.
KRX system expected to run at the end of 2023
All measures will be taken to put the KRX system into operation at the end of this year, said Nguyễn Thị Việt Hà, Acting Chairman of the Hồ Chí Minh Stock Exchange (HoSE).
A meeting among members of the Vietnamese stock market was organised at the headquarters of HoSE on Monday to discuss the plan to implement the KRX information technology project.
Speaking at the event, Hà said that the rate of testing the KRX system among members is still low, with just 25 out of 76 securities companies completing 100 per cent functional testing.
A similar situation occurred at the Hà Nội Stock Exchange (HNX) and the Vietnam Securities Depository and Clearing Corporation (VSDC), raising concerns among testing bodies.
According to Hà, the Vietnam Stock Exchange (VNX) is working with both HoSE and HNX to correct the legality, trying to match the legality with the time of implementing the new system.
As planned, the KRX system will be officially launched in December this year. However, it is expected that new features will not be fully implemented immediately. The KRX system will operate with basic features, and new features will be deployed step by step according to the roadmap.
"The Ministry of Finance (MoF) has been directed to put the KRX system into operation by the end of this year. If market participants and securities companies are not prepared, organisers will have to take action and cannot wait for the securities firms. If the securities companies are not ready, the investor, HoSE, will still continue, and the securities companies will bear the losses," Hà said.
Earlier this year, Nguyễn Đức Chi, Deputy Minister of MoF, said that HoSE needed to operate the KRX system according to the project's schedule, ensuring the smooth operation of the market continuously and effectively, while coordinating to implement the restructuring of the market, focusing on stabilising the market and strengthening supervision.
The exchange also needs to ensure a safe and transparent market and actively cooperate with the VNX to complete the regulations and operating procedures, Chi added.
The KRX system is an information technology system for managing and operating transactions on the Vietnamese stock market, signed by HoSE with the South Korea Stock Exchange (KRX) in 2012.
The project aims to upgrade the technology system and infrastructure of the stock exchange in Việt Nam.
Due to many reasons, such as the pandemic and the complex nature of the bidding package, the KRX system has not yet run as planned.
The KRX system is expected to bring new products, trading, and payment solutions to the Vietnamese stock market, such as T+0 settlement, short selling, and option contracts. This will create a premise to solve the bottlenecks and move towards upgrading the market from frontier to emerging.
SMCB gets green light to buy nearly 1.2 billion VPB shares
The State Bank of Vietnam (SBV) has just allowed the Japanese multinational banking financial services institution, Sumitomo Mitsui Banking Corporation (SMCB), to buy newly issued shares of VPBank (VPB).
The central bank requires SMBC to fulfil all obligations and responsibilities of foreign investors specified in the amended and supplemented Law on Credit Institutions 2010, as well as related circulars and decrees.
To acquire 1.19 billion VPB shares, SMBC would pay more than VNĐ35.9 trillion (US$1.5 billion).
SMBC's ownership ratio accounted for 15 per cent of VPBank's capital after purchasing 1.19 billion shares. For the next five years, the transfer of the number of shares bought by SMBC will be limited.
After the deal, VPBank’s total equity will reach nearly VNĐ140 trillion.
Previously, VPBank estimated the time to conduct a private placement for SMBC in the third and fourth quarters of 2023 after the SBV approves SMBC’s purchasing proposal, and the State Securities Commission (SSC) announces that it would receive all registration documents to sell private stocks.
On the stock exchange, VPBank shares were traded at VNĐ20,600 a share. As a result, the selling price for SMBC is nearly 39 per cent higher than the current market price.
At the end of March, VPBank held a signing ceremony for a private placement agreement of 15 per cent of charter capital for SMBC, officially making SMBC Group a strategic investor in the bank.
This investment agreement is part of a capital increase plan that VPBank has implemented since 2022 to strengthen its long-term financial capacity and help the bank achieve its strategic growth target in the next five years.
At the Annual General Meeting of Shareholders held in April, VPBank's management said that the bank would spend up to 30 per cent of its annual profit to pay dividends to shareholders in the next five years.
VPBank sets a target of credit growth with a compound growth rate of 35 per cent in five years, continuing to maintain its position as a multi-purpose bank with the key segment being retail, of which the proportion of retail in the total credit portfolio is over 70 per cent.
VPBank's Board of Directors recently approved increasing the maximum foreign ownership rate to 30 per cent of charter capital to ensure the implementation of the private placement plan.
South Korean investors gain interest in VN stock market
Capital from South Korea has recently been poured into the Vietnamese stock market, mainly thanks to a lower interest rate environment.
Data from the South Korea Securities Depository (KSD) showed that in just 11 days in August, South Korean investors had net bought US$9.1 million of shares on the market, four times higher than the total net value bought in July, which was $2.12 million.
From March through June, South Korean investors primarily net sold on the Vietnamese stock market, but they reversed the course and have become net buyers since July.
The reversal was due to the cuts in interest rates by the Vietnamese Government that helped lift the stock market, especially in the real estate industry.
It was also supported by the improvements in business results of large groups.
Analysts expected that the country’s stock market would continue to tick up while reminding investors to be cautious about the market’s volatility.
As the stock market has recently gained significantly compared to the beginning of the year, the upward momentum may be eased at the end of the year.
The benchmark VN-Index had soared 19.1 per cent over the start of 2023.
Việt Nam’s automobile sales grow slightly in July from previous month
Members of the Việt Nam Automobile Manufacturers Association (VAMA) sold 24,687 vehicles in July, up 4 per cent month-on-month, VAMA reported on August 14.
The June figure was 23,800, up 15 per cent from the previous month.
Of the vehicles sold last month, there were 19,221 passenger cars, up 11 per cent; 5,318 commercial vehicles, down 16 per cent; and 148 special-use vehicles, up 21 per cent month-on-month.
In terms of vehicle origin, the sales of domestically-assembled automobiles reached 13,575 units, down 12 per cent, while the number of imported completely built-up (CBU) vehicles was 11,112, up 34 per cent.
In the first seven months of this year, VAMA members sold a total of 162,014 vehicles of all kinds, down 30 per cent year on year, with the sales of passenger cars, commercial and special-use vehicles dropping by 34 per cent, 13 per cent, and 63 per cent, respectively.
According to experts, besides VAMA member units, the Vietnamese auto market also includes other automakers such as Audi, Jaguar Land Rover, Mercedes-Benz, Nissan, Subaru, Volkswagen, and Volvo, but they do not disclose business results.
Meanwhile, Thành Công Group (TC Group) announced sales of 4,035 units in July, bringing its six-month sales to 14,680 units; the respective figures for VinFast were 3,042 and 14,680. VinFast’s electric vehicles, VFe34 and VF5 Plus, were the best-selling of the company with 2,181 units.
Based on the sales reports from VAMA, TC Group and VinFast, Hyundai continued to lead the market in July with 4,035 vehicles, despite a month-on-month decrease of 21 per cent. It was followed by Toyota, KIA, Mitsubishi and Ford.
Honda Vietnam reported an increase in motorcycle and automobile sales in July compared to the previous month.
In July, it sold 152,764 motorcycles, up 14.2 per cent month on month, data showed. Meanwhile, 1,579 cars were delivered to customers, an increase of 12.5 per cent month-on-month. Among them, Honda CR-V and Honda City were the best-sellers at 454 and 467 units sold, respectively.
The Vietnamese auto market is forecast to continue growing from August until the end of this year, thanks to a policy that reduces the registration fee by half. However, purchasing power might not experience the same rapid growth as last year due to the influence of the stock, real estate and consumer lending markets, which are yet to be as strong as they were last year.
Nghi Son refinery to undergo first general maintenance
The factory of the Nghi Son Refinery and Petrochemical LLC (NSRP), based in the central province of Thanh Hoa, will undergo the first general maintenance from August 25.
NSRP General Director So Hasegawa said that during the 55-day period, the refinery will completely suspend all production activities.
To minimise impacts of the suspension, the company has been proactively taking measures to reduce the maintenance duration but still ensure quality. It is also coordinating closely with relevant authorities to prevent the suspension’s impact on the domestic fuel market.
The NSRP believes that after the maintenance, the refinery will boost production and guarantee the timely and stable supply of petrol and oil products for domestic enterprises and consumers for many years ahead, he noted.
The executive went on to say that general maintenance is an important part of the firm’s safety commitment, enabling it to continue guaranteeing production safety, stable and long-term jobs for workers, and supply of high-quality fuel products for the domestic market even amid global economic headwinds.
The NSRP hopes to contribute more to the national energy security and socio-economic development, Hasegawa added.
During the maintenance period, the company will sustain community supporting activities, which is always one of its top priorities to fulfill its social responsibility, he continued, saying that it has implemented a number of programmes helping with job creation, business, agriculture, education, water supply, training, and community health care, especially for residents in nearby areas.
The company has been making substantial contributions to the Vietnamese economy. During 2018 - 2021, it contributed over 3.3 billion USD to the economy and helped save more than 260 million USD thanks to the reduction of fuel imports.
Hasegawa said stable energy supply is a stepping stone for Vietnam to consolidate its role as an important link in the global supply chain. With cutting-edge machinery and considerable contributions to national socio-economic development, the Nghi Son refinery is one of the key national oil and gas projects in the country.
The firm is confident in the path ahead and pledges to assist the Vietnamese Government, enterprises, and people to develop on par with international markets, he remarked.
Nghi Son is one of the refineries with the most modern, advanced, and sophiscated technologies in Asia. Its current processing capacity is up to 200,000 crude oil barrels per day, equivalent to 10 million tonnes per year. In particular, thanks to an optimised design with all the necessary petrochemical processing and production technologies, the factory is completely able to compete with others in the world.
The NSRP is a joint venture established by four major investors, namely the Vietnam Oil and Gas Group (Petrovietnam), Kuwait Petroleum Europe of Kuwait, and Idemitsu Kosan and Mitsui Chemicals of Japan. Its factory is located in the Nghi Son Economic Zone in Thanh Hoa province.
It is the main supplier of petrol and oil products for the Vietnamese market and also exports several petrochemical products to some regional countries. Its target is to help ensure the national energy security and make use of Vietnam’s strategic location in relation to major consumption centres in Asia to increase the export of important and profitable petrochemical products.
Vietnamese businesses urged to achieve sustainable development goals
Nature-related policies should be integrated into business strategies and plans, said Deputy Prime Minister Tran Hong Ha at the 10th Vietnam Corporate Sustainability Forum in Hanoi on August 23.
To contribute to achieving sustainable development goals (SDGs) and fulfilling Vietnam’s relevant commitments, more investments should be made in nature-based solutions to enhance ecosystem services, reduce greenhouse gas emissions, increase resilience to climate change, and create new opportunities for innovation and growth, he said.
Apart from big firms, small-and medium-sized enterprises, which are considered the backbone of the national economy, should play a role in sustainable development, the Deputy PM stressed.
He suggested domestic enterprises study and put in place regulations and criteria for sustainable development, promote the environmental, social, and governance (ESG) practice in business administration, join environmental protection efforts, and optimise achievements of the Fourth Industrial Revolution and digital transformation to serve sustainable development.
The Deputy PM also affirmed the Government’s strong commitment to building a favourable legal environment for businesses to complete the SDGs.
With a strategic vision, the Party and the State have identified policies and roadmaps to perfect mechanisms, policies and laws on green economy, low-carbon economy and circular economy towards net zero emissions, he stressed.
The Government always listens to opinions of the business community and focuses on policies and pilot models for the Just Energy Transition Partnership (JETP) in an effort to create an “ecosystem” of the renewable energy industry.
The Government will issue more mechanisms and policies on enhancing green economy and circular economy, and supporting businesses in technology transformation and research and development centre building, while promoting personnel training with new mindset of taking people as the subject, centre, momentum and resources of development, he said.
Vice Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) and Chairman of the Vietnam Business Council for Sustainable Development (VBCSD) Nguyen Quang Vinh provided updates on global sustainable business trends.
He stressed that the success of businesses should include their adaptation, resilience and recovery amid unprecedented challenges, as well as sustainable interests of the community, the society and the environment.
Vinh also suggested businesses change value and supply chains towards sustainability.
The forum, jointly held by the VCCI and VBCSD, brought together more than 300 delegates, who discussed such issues as the circular economy, low carbon emissions, green supply chain, biodiversity preservation, and sustainable energy transition, among others.
Vietnam, US step up implementing deal on illegal logging, timber trade
Vietnam and the US held a meeting of the Timber Working Group, set up to carry out the two Governments’ Agreement on Illegal Logging and Timber Trade, in Washington DC on August 22 - 23.
The event was co-chaired by Vietnamese Deputy Minister of Agriculture and Rural Development Nguyen Quoc Tri and Assistant US Trade Representative for Environment and Natural Resources Kelly Milton.
The Vietnamese delegation also included representatives of the Ministry of Agriculture and Rural Development, the Ministry of Industry and Trade, the Trade Office and the economic division of the Vietnamese Embassy in the US.
At the meeting, the Vietnamese delegation updated the US side about the steps taken by Vietnam to implement the agreement, including reviewing and eliminating financial incentives for the timber processing sector, enhancing the customs control and examination of imported timber, boosting cooperation with material timber exporting countries to control origins, amend legal documents to revise the enterprise classification system, supplement criteria for specifying positive geographical areas exporting timber to Vietnam, and control the seized timber so that it doesn’t enter supply chains.
The delegation emphasised that Vietnam has always made the strongest possible efforts to realise the agreement and pledges to develop a transparent, sustainable, and responsible forestry sector.
During its reforms and integration into the global economy, Vietnam stays persistent in complying with the principle of sustainable development. It has made strong commitments and joined international efforts to protect the environment and the green planet.
At the 26th United Nations Climate Change Conference (COP26), the Vietnamese Government committed to reducing methane emissions by 30% by 2030 compared to the level recorded in 2020 and working towards net zero emissions by 2050. The forestry sector has an important role to play in the realisation of these commitments, according to the delegation.
The US side highly valued Vietnam’s serious implementation of the commitments in the agreement.
It affirmed that technical assistance will continue to help Vietnam strengthen the capacity of competent agencies in order to protect forests, conserve biodiversity, and contain illegal logging and timber trade.
‘Big Four’ slash deposit interest rates to lowest in banking system
The four biggest banks in Vietnam have strongly cut interest rates for many deposit terms to the lowest levels of the year.
From August 23, the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank), and the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) reduced their highest deposit interest rates, applicable to deposit accounts of at least 12 months, to 5.8% per year from 6.3% per year.
The rates for one- and three-month deposits were brought down by 0.3% per year to 3% and 3.8% per year, respectively, and that for six-month accounts to 4.7% per year.
At the Vietnam Bank for Agriculture and Rural Development (Agribank), deposit interest rates for different terms decreased by 0.3 - 0.5% per year. The highest rate, 5.8% per year, is only for 12-month deposits.
The rate for deposits of 13 months and over now stands at 5.5% per year. Meanwhile, the rates for one-, three-, and six-month savings accounts are similar to those of the three above-mentioned banks.
Deposit interest rates at the “Big Four” are now the lowest in the banking system.
Both deposit and lending interest rates have been reduced to aid economic recovery. (Photo: baodautu.vn)
Some other banks such as Eximbank, VIB, MB and ACB have also strongly cut the rates.
Compared to the peak of 9 - 10% per year at the start of 2023, deposit interest rates have fallen sharply after four regulatory interest rate adjustments by the State Bank of Vietnam (SBV).
The SBV’s adjustments aim to create conditions for commercial banks to further slash lending interest rates to support the economy.
Earlier, it had asked credit institutions and branches of foreign banks in Vietnam to continue reducing lending rates for existing and new loans, by at least 1.5 - 2% per year, as ordered by the Government and the Prime Minister to help enterprises and people recover and develop production and business activities.
Interfoam Expo Vietnam 2023 opens in HCM City
The Interfoam Expo Vietnam 2023, the first of its kind, opened in the southern economic hub of Ho Chi Minh City on August 23.
The expo has been jointly organised by the Vietnam National Trade Fair and Advertising Company (Vinexad) under the Ministry of Industry and Trade, HJT Exhibition Company, Vietnam Packaging Association (VINPAS), Ho Chi Minh City Construction and Building Materials Association (SACA), and Vietnam Saigon Plastics Association (VSPA).
The event gathered leading enterprises and experts in the development of foam materials and their application in the Southeast Asian market, displaying and introducing polymer foam products, foam metal, raw materials, foaming agents, foaming equipment, cutting equipment, and testing equipment.
Besides, the expo also saw the participation of suppliers of recycling equipment and technology, environmental protection equipment, adhesives and sealants, shrink films and adhesive tapes.
The third international foam and application forum on “Redefining foam” will also be held as part of the expo, focusing on topics such as sustainable development, technological innovation and application, and foam technology in various fields.
The exhibition runs until August 25.
Support Industry Fair kicks off in Hanoi
The 2023 Hanoi Support Industry Fair officially opened at the National Architectural Planning & Construction Exhibition on August 23 in the capital.
The three-day event features more than 250 pavilions by many domestic and foreign support industry firms such as Japan, China, Thailand, and Malaysia.
The products displayed at the fair are of high-quality such as components and spare parts, as well as those serving high-tech industries.
Upon addressing the opening ceremony, Nguyen Manh Quyen, vice chairman of the Hanoi People’s Committee, emphasized that it is a large-scale specialised fair on supporting industries that has been held annually since 2017.
He therefore stressed that through the fair, businesses working in supporting industries will promote their capabilities and strengths, seek opportunities to popularize their products, hold trade and export promotion activities, as well as join the supply chain in the capital economic area. This is along with joining the global supply chain of multinational corporations.
A number of seminars on promoting investment attraction in the fields of high technology, supporting industries, and building and developing supporting industrial cluster in the city will also be held during the course of the fair.
Vietnam among top 11 exporting countries to Singapore
Vietnam retained its position as Singapore's 11th largest trading partner during the seven-month period, with two-way trade turnover reaching roughly SGD16.8 billion, a fall of 9.41% on-year, according to the Vietnam Trade Office in Singapore.
The country has mainly exported machinery, equipment, mobile phones, components and spare parts, along with glass and glass-based products to the city-island nation.
Most notably, rice and cereals exports recorded a high growth rate compared to recent months. Meanwhile, exports of oil and gas, as well as petroleum products, optical machines, measuring instruments, and medical equipment, all endured a sharp decrease.
Furthermore, 13 out of 21 import groups from Singapore to Vietnam enjoyed positive growth, including machinery, equipment, tools, spare parts, computers, plastic and plastic products, paper and paper products, tobacco and alternative tobacco products.
Despite indicators of trade turnover between both nations remaining negative, there are positive signals regarding the turnover value of the following month compared to the previous month which has seen improvement in both exports and imports.
Corporate Sustainability Forum helps shape prosperous future for firms
The 10th Vietnam Corporate Sustainability Forum 2023 has offered a prime opportunity for businesses to come together and share and set out important initiatives aimed at shaping a bright and prosperous future ahead for them and the country as a whole, according to insiders.
Co-hosted by the Vietnam Chamber of Commerce and Industry (VCCI) and the Vietnam Business Council for Sustainable Development (VBCSD) on August 23, the event featured the participation of more than 300 domestic and international delegates.
"We can create breakthrough solutions to promote sustainable development, and gradually bring Vietnamese businesses on the right track of development, said Cao Thi Ngoc Dung, vice chairwoman of the VBCSD and chairwoman of the Board of Directors of Phu Nhuan Jewelry Joint Stock Company (PNJ).
During the special session held as part of the forum themed "Promoting nature-based initiatives towards a low-carbon economy", Dung underlined the need to innovate and grasp smart solutions aimed at using natural resources in an effective manner from the use of renewable energy to the management of natural resources.
"This not only helps to minimize negative impacts on the environment, but also helps businesses create a sustainable competitive advantage in the future," Dung noted.
With regard to improving the overall competitiveness of enterprises through building a sustainable supply chain, she underlined the importance of building a sustainable supply chain, from ensuring the supply source to product quality, as well as complying with business ethics.
“By creating a sustainable supply system, we can optimize our business, reduce risks while simultaneously contributing to maintaining the sustainability of the community and the environment,” she stated.
The Vietnam Corporate Sustainability Forum was initiated just before the nation and 192 countries around the world committed to implementing the 2030 Agenda with 17 Sustainable Development Goals (SDGs) by the UN, as well as commitments to reduce climate change made at COP 21 held in 2015 in Paris, France.
The move clearly demonstrates the VCCI’s creativity, pioneering, and commitments in general and the VBCSD in particular in their persistent journey which seeks to support the business community on the path of sustainable development.
Growth rate of fruit and vegetable exports slows down
After two consecutive months of sharp increase, fruit and vegetable export growth has slowed, with the export value reaching US$3.1 billion in the first seven months of the year, an increase of 60.5% over the same period from last year.
The Import-Export Department under the Ministry of Industry and Trade cited statistics from the General Department of Customs as saying that Vietnamese fruit and vegetable exports in July reached US$404.5 million, a drop of 38.9% compared to June, but an increase of 63.6% compared to July, 2022.
Fruit and vegetables exported to major markets throughout the reviewed period all grew well, except for the United States, Taiwanese, Thai, and Australian markets.
The Chinese market took the top spot in export value with US$2 billion, up 128.5% over the same period from 2022.
The high growth of fruit and vegetable exports to the Chinese market contributed to positive growth occurring in the fruit and vegetable industry this year as the export value to the highly lucrative market accounts for 64.7% of the nation’s total export value of this product.
Import demand for fruit and vegetables in these markets remains large, although the country only exports a small part of the total demand, meaning there remains plenty of room for local businesses to exploit.
Specifically, the import price from the nation only accounts for less than 0.6% of the total import value of fruit and vegetables of the US.
Similarly, in the Korean market the average import demand for fruit and vegetables hit US$3.9 billion per year throughout the 2018 to 2022 period, but the value of imports from the Vietnamese market only accounted for 4.3% of the total import value.
In the Japanese market, there remains an average import demand for fruit and vegetables at US$10 billion per year, although imports from Vietnam only made up for 0.6% of its total import value.
Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes
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