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As China has tightened its anti-Covid measures, some 4,000 container trucks carrying agricultural products have been stuck at border gates in the northern province of Lang Son and 1,500 others at the Mong Cai Border Gate in Quang Ninh Province.
Around 700 container trucks are stranded at the Chi Ma Border Gate, but only 60 to 80 trucks have completed customs clearance procedures per day. Meanwhile, more than 2,000 trucks have yet to go through the Tan Thanh Border Gate. Some 200 have got clearance per day instead of 300 as earlier.
As China issued stricter anti-pandemic measures, container trucks could not go through some border gates in Lao Cai and Quang Ninh provinces, so they flocked to border gates in Lang Son. The Lang Son government has informed haulage enterprises and drivers of the situation, but container trucks have still flocked to border gates in the province.
Container trucks stuck there mainly transport agricultural products and seafood. Each truck must wait for five to seven days to complete customs clearance procedures.
New securities accounts reach record high in November
The number of newly registered securities accounts hit 221,314 in November, surpassing the yearly figure for 2019 and far exceeding the old record of 140,193 set in June, according to the Vietnam Securities Depository.
This is also the highest monthly figure ever recorded throughout the market’s 21-year history.
A large majority (220,602) of these accounts were opened by domestic individual investors, whereas 215 accounts went to domestic institutional investors. Meanwhile, foreign individual investors opened 437 accounts and foreign institutional ones claimed the rest with 24 accounts.
By November 30, there were 4,083,325 accounts in Vietnam’s security market, 1.3 million higher than the number in late 2020.
Logistics forum to look into human resources development
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The Logistics Forum Vietnam 2021 will take place on December 14, focusing on logistics human resources development.
As an annual event hosted by the Ministry of Industry and Trade, it aims to promote the development of logistics services, create a link between logistics and manufacturing and import-export industries, and serve as a venue for discussing and updating information on urgent issues related to logistics services in Vietnam and the world.
The event is expected to see the participation of over 1,100 delegates from the Party Central Committee's Economic Commission, the Govebrment office, the National Assembly’s Economic Committee, ministries and central agencies, and management agencies in localities, industry associations, logistics and import and export enterprises, and international organisations in Vietnam.
Reference exchange rate down VND16 on Dec. 14
The State Bank of Vietnam set the daily reference exchange rate at 23,191 VND/USD on December 14, down 16 VND from the previous day.
With the current trading band of +/-3 percent, the ceiling rate applicable to commercial banks during the day is 23,887 VND/USD and the floor rate 22,495 VND/USD.
Vietnam can export more rice to France
During a recent consultation session co-hosted by the Vietnam Trade Promotion Agency and Vietnam’s Trade Office in France, Le Thi Thanh Minh, head of the European-America Market Department, pointed out that France represents the largest rice importer in the EU with an annual demand reaching approximately 600,000 tons. Indeed, the Central European country therefore represents a major export market for Vietnamese rice.
Despite this potential, Vietnamese export volume to the demanding market accounts for only 2.1% of the overall market share, a factor which has opened up a wealth of opportunities for Vietnamese rice to increase its market share in France.
At present, Vietnamese rice has developed a presence in small-scale stores and retail chains, boasting a low price in France but failing to penetrate hypermarkets in the country. Most notably, there are only six domestic enterprises that are eligible to directly export rice to 16 partners based in France.
VND16-trillion port complex project proposed in Tien Giang
Song Toan Phat Services Trading Co., Ltd has proposed developing a port complex project worth over VND16 trillion on the bank of the Soai Rap River in Go Cong Dong District of the Mekong Delta province of Tien Giang.
The port complex was designed to have a capacity of 20-25 million tons of cargo per year. It will be divided into two functional areas with one for international containers and one for domestic cargo and barges transporting building materials.
Of the estimated investment in the project, VND9.6 trillion will be used for construction, over VND3.9 trillion for equipment, VND381.7 billion for site clearance and compensation, VND25 billion for project management, VND108 billion for construction consulting, VND32.6 billion for other expenditures and nearly VND2.2 trillion for backup.
The project is proposed to have a life span of 49 years since the investment certificate is issued for the project. However, the life span can be extended when suggested by the investor and approved by the competent agencies.
HCM City: Businesses adjusting to new normal
Enterprises in Ho Chi Minh City, the locality hardest hit in the fourth wave of COVID-19, have been adjusting to the “new normal” after around 100 days the city applied social distancing measures.
To date, 88 projects at the Saigon Hi-tech Park, which employ around 48,000 workers, have resumed production, while production has been restored in 99.7 percent of 1,414 companies in the city’s industrial parks and export processing zones with up to 280,000 workers.
HCM City’s companies have been adapting to different aspects of the “new normal,” with most of them given better understanding in health safety rules and procedures. About 70 percent of local enterprises and some 90 percent of those in manufacturing have at least a qualified health worker who are capable of recognising signs and symptoms of COVID-19.
Korean real estate firm develops smart city in Hung Yen
Vice Chairman of Hung Yen provincial People's Committee Nguyen Hung Nam on December 13 handed over a decision on establishing a clean industrial park, and an cooperation agreement on smart city development to the Korea Land and Housing Corporation (LH) of the Republic of Korea.
Previously, on December 2, the provincial People’s Committee and LH Group signed a memorandum of understanding (MoU) on cooperation in smart city development, which is hoped to further strengthen the bilateral cooperation in developing a smart city that can compete not only in Vietnam but also in the world.
The RoK firm is cooperating with TDH Ecoland Urban Development and Investment JSC of Vietnam to develop a clean industrial park which covers an area of 140 hectares under the Ly Thuong Kiet Industrial Park and Service Urban project in Hung Yen. This is part of a core economic cooperation project that the RoK government has promoted in Vietnam in the housing, real estate, and industrial sectors via its “New Southern Policy”.
The CrownX raises $350 million in final chapter of funding
Masan Group Corporation on December 13 announced it has signed a deal for 350 million USD primary investment in The CrownX Corporation (TCX) by a consortium of investors comprising TPG, Platinum Orchid – wholly owned by the Abu Dhabi Investment Authority, and SeaTown Master Fund – managed by an indirect subsidiary of Temasek Holdings.
It marks the final round of funding for the TCX eco-system, which now adds up to over 1.5 billion USD from marquee global investors since it began in the first half of 2020.
It gives TCX a valuation of 8.2 billion USD, equivalent to 105 USD per share and representing a 12 percent increase since the previous round.
After the deal, Masan will own 81.4 percent of The CrownX. It intends to use the proceeds to invest in growth initiatives and do a share buyback.
Binh Phuoc's FDI inflow triples in 2021
Foreign direct investment (FDI) inflow into Binh Phuoc in 2021 tripled last year’ figure though the southern province has been hardly hit by the fourth wave of COVID-19 infections.
This year, the province attracted 70 FDI projects, doubling 2020’s number, while total registered investment amounted to 600 million USD, a triple increase from the previous year and 1.5 times higher than the yearly plan. Binh Phuoc is currently home to 346 FDI projects with total investment reaching close to 3.58 billion USD.
The province, meanwhile, raked in more than 10 trillion VND (435.16 million USD) in investment into 100 domestic projects. It has 13 industrial parks, covering a total area of 4,686 hectares. The average occupancy rate reaches 81 percent, with seven industrial parks achieving full occupancy.
EVN breaks ground on VND41-trillion power plant
State utility Vietnam Electricity Group (EVN) started constructing a thermal power plant in the central province of Quang Binh today, December 13, with a total investment exceeding VND41.1 trillion (US$1.79 billion). The Quang Trach 1 plant will cover an area of some 48.6 hectares in Quang Dong Commune, Quang Trach District, and have two generators with a combined capacity of 1,000 MW, reported the local media.
The project is scheduled to be operational in 2025, supplying 8.4 billion kWh of electricity to the national grid per year, helping increase the portion of thermal power in the national power system and reduce the dependence on hydroelectricity.
Further, the plant is expected to contribute VND1.2 trillion to the provincial budget annually, pave the way for the central province to develop supporting industries, as well as create job opportunities for local residents.
Four projects worth $174m given green-light in Long An
Long An provincial authority and Dong Tam Industrial Zone Joint Stock Company granted secondary investment registration certificates for four projects worth a total of nearly VND4 trillion (US$174 million) late last week.
Located in Thuan Dao Industrial Park in Ben Luc District, Long An Province, the four projects include two steel manufacturing plants worth a combined VND3.5 trillion, invested by Hoa Phat Long An Steel Products JSC and Asia Steel JSC, and two wooden home appliance manufacturing factories worth VND475 billion, thanks to investment from KODA Saigon Co Ltd and Rythern Vietnam International Co Ltd.
According to Nguyen Thanh Thanh, head of Long An Economic Zone Authority, the province has attracted 84 new projects in 2021, 35 of which are FDI projects with total investment capital of more than $258 million and 49 domestic direct investment projects worth VND10.9 trillion. In addition, 62 projects were also registered to increase capital by $153 million and more than VND1.2 trillion.
Shortage of containers, high logistics costs hit textile exports
Container and warehouse shortages and surging container shipping costs have hit the textile and garment industry hard, said Nguyen Thi Tuyet Mai, deputy general secretary of the Vietnam Textile and Apparel Association (VITAS).
Delivery delays mean textile and garment businesses could have to pay compensation to buyers. Logistics costs threaten to affect Viet Nam’s economic competitiveness, particularly its textile and garment industry. Vietnam needs to develop shipping lines for shipments to Europe and the US, which are large markets for its textile and garment businesses, making it less reliant on international shipping lines, she added.
Exports this year are estimated at US$39 billion, up 11.2 per cent, according to VITAS.
HSBC expects Vietnam to regain economic growth momentum next year
An increase in foreign direct investment (FDI) and consumption, coupled with a growing middle class and new infrastructure can all be considered as driving forces for the Vietnamese economy to grow next year, said Tim Evans, CEO of HSBC Vietnam.
The financial expert emphasised that the local economy is likely to secure its GDP growth rate of 6.8% next year thanks to strong FDI inflows recorded in the manufacturing sector, along with the enforcement of a series of free trade agreements (FTAs) which are anticipated to promote the country’s exports in the future.
According to details given by HSBC, there remains a strong inflow of FDI into the Vietnamese market which has been slightly impacted by recent social distancing measures. The total registered FDI capital from January 1 to November 20 increased by 0.1%, with 1,577 newly-licensed projects, while the disbursement of capital decreased by 4.2% amid total export turnover rising by 17.5%, helping the country enjoy a slight trade surplus.
Furthermore, the Purchasing Managers' Index (PMI) reached 52.5 in November, signalling improvements in business conditions following a period of decline caused by the fourth wave of the COVID-19 pandemic.
The expert analysed that a gradual recovery in terms of domestic demand is likely to offset high energy prices, and that inflation is likely to rise to 3.5% in 2022, which will be within the Government’s threshold.
Foreign investors keen on Vietnamese retail market
Featuring a large market size and an open domestic market development policy, the local retail market has developed into a magnet to hordes of foreign investors.
At a recent meeting with Prime Minister Pham Minh Chinh, Motoya Okada, president and CEO of leading Japanese retailer AEON Group, revealed that the group has been deploying its medium and long-term plans in Vietnam, and that it will increase the number of shopping malls nationwide in the near future.
Alongside AEON, other large foreign retail corporations such as FamilyMart, K-Mart, Lotte, Central Group, and Circle K have been accelerating the pace of their expansion strategy within the Vietnamese market.
Most notably, a series of mergers and acquisitions (M&A) deals recently highlighted the attractiveness of the Vietnamese market.
Previously, a group of investors, including e-commerce giant Alibaba and Banring Private Equity Asia investment fund, injecting US$400 million into The Crownx, while the Republic of Korea’s SK Group also invested US$410 million in Vietnam’s largest retailer VinCommerce.
Shares start week higher on real estate stocks
Vietnamese markets had a good start on Monday thanks to the strong performance of real estate stocks.
On the Ho Chi Minh Stock Exchange (HoSE), the market benchmark VN-Index gained 0.87 per cent to end at 1,476.21 points. The index gained 1.4 per cent last week. The market's breadth was positive with 312 gainers and 145 losers. As many as 866 million shares were traded on the southern bourse, worth nearly VND25.9 trillion (US$1.1 billion).
The VN30-Index, tracking the 30 biggest stocks on HoSE, rose 0.09 per cent, to end at 1,520.80 points. Nineteen out of 30 stocks in the VN30 basket posted gains, while nine decreased.
On the Ha Noi Stock Exchange (HNX), the HNX-Index rose 0.51 per cent, to 457.56 points. The index had increased 0.33 per cent last week.
During the session, investors poured over VND2.9 trillion into the market, equivalent to a trading volume of 108 million shares.
Quang Binh proposes Dong Hoi Airport upgrade
The central province of Quang Binh has proposed the upgrade of Dong Hoi Airport to an international airport.
Under the provincial people’s committee’s recommendation, the airport upgrade is aimed to spur Quang Binh’s socio-economic development, particularly the tourism sector, in the coming time.
Dong Hoi Airport currently serves flights to Hanoi, HCM City and Haiphong and one regular international route to Chiang Mai (Thailand).
The airport’s parking areas are being expanded, while the construction of a new terminal has also been recommended, which is expected to raise the airport’s annual capacity to three million passengers.
According to the Civil Aviation Authority of Vietnam, the country’s general planning on airport development in the 2021-2030 period and a vision until 2050, Dong Hoi is qualified to be turned into an international airport.
Can Tho, Vietnam Airlines ink deal on int’l air route development
The municipal government of Can Tho in coordination with Vietnam Airlines will study and develop international air routes linking Can Tho with destinations in key markets after the Covid-19 pandemic is brought under control, as part of their comprehensive partnership for the 2021-2025 period.
Earlier, the Mekong Delta city and VNA had signed an agreement on the cooperation program, with one of the important cooperation activities being studying and developing international air services to key markets.
Besides, the two sides will team up to work out measures to promote domestic tourism from 2021 to 2025, develop airfare supporting policies for travel firms that join tourism promotion programs and launch more domestic air routes linking Can Tho with other provinces. They will also support and encourage businesses to use services and products offered by VNA and other local carriers under the corporation, such as Vasco and Pacific Airlines.
Source: SGT/VNA/VNS/VOV/VIR
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