A new price level is gradually being established amid the current sideways accumulation trend of the VN-Index and it is unlikely that a new downtrend will appear in the short term, said brokerages.

On the Ho Chi Minh Stock Exchange (HoSE), the market benchmark VN-Index rose 0.22 per cent to end last week at 1,479.79 points. The index had gained 1.11 per cent last week.

An average of 995.6 million shares were traded on the southern exchange during each session last week, worth VND28 trillion (US$1.2 billion).

According to Vietcombank Securities Limited Company (VCBS), the VN-Index last week mainly struggled in a narrow range around the threshold of 1,470 points. The index recorded a sharp drop of nearly 100 points from the nearest peak of 1,500 points.

With a more optimistic view, Saigon-Hanoi Securities Corporation (SHS) said that the VN-Index continued to be in an uptrend and in the next trading week from December 20-24, the index will continue to increase towards the psychological resistance level of 1,500 points.

The Dung Quat oil refinery.

Vietnamese, Indian firms cooperate in petrochemical refinery projects

Vietnam's largest refining and  petrochemical firm, Binh Son Refining and Petrochemical JSC (BSR), will cooperate with Indian Oil of India to develop petrochemical refinery projects in Vietnam, India and third countries.

Under a Memorandum of Understanding just signed by the two enterprises in India, the two sides will evaluate cooperation opportunities in the fields of oil and gas processing and energy in Vietnam, India and third countries.

BSR and Indian Oil will join hands in developing a project on upgrading and expanding Dung Quat oil refinery; conducting an overall maintenance of Dung Quat oil refinery to improve efficiency as well as reduce costs and time and increase productivity.

The MoU is hoped to open up opportunities for cooperation between the two firms in developing process design packages (PDPs), basic engineering design packages (BEDPs) for non-copyrighted technology workshops and workshops using indigenous technology of Indian Oil.

Vietnam looks to promote export to Brazil

Vietnamese businesses need to cooperate closer with partners in order to boost exports to Brazil in the last month of 2021 as the American market’s import and export activities have recorded a stable growth, according to the Vietnam Trade Office in Brazil.

Two-way trade between Vietnam and Brazil hit 5.74 billion USD in the last 11 months, up nearly 36.8 percent year-on-year, with Vietnam's exports to Brazil valued at 2.04 billion USD, up 24.7 percent year-on-year.

Sharp increases were seen in the shipment to Brazil of items such as iron and steel, furniture products, computers, electronic products, bamboo and rattan products, sedge carpets, vehicles and spare parts, technical fabrics, rubber, textile fibers, aquatic products, textile raw materials, footwear, rubber products, and bags.

Seafood sector striving to boost exports

After months of stagnation due to COVID-19, Vietnam’s seafood sector is now striving to recover production and boost exports, especially during the year-end period.

More than 43,000 fishing vessels were unable to head out to sea in the third quarter of this year due to COVID-19, especially in southern and central localities.

Demand in Vietnam’s five largest seafood markets - the US, Japan, China, the EU, and the Republic of Korea - is increasing during the year-end period, which is considered an opportunity to boost export activities.

This is a chance for us to boost exports. Experts have acknowledged that there remain many challenges ahead, but if the seafood sector can take advantage and introduce suitable production activities then the sector can reach its export target of 3.6 million tonnes and turnover of 3.6 billion USD.

Vietnamese, Indian groups cooperate in technology application

Vietnam’s SOVICO and India’s HCL Technologies Limited have signed an agreement on sharing and developing business opportunities with a focus on information technology.

The agreement covers various areas, including aviation, banking, insurance, retail sales, as well as fields of shared concern such as resources and asset management solutions, Internet of Thing (IoT), blockchain and data.

The signing took place within the framework of the ongoing official visit to India by Chairman of the National Assembly Vuong Dinh Hue.

HCM City boosts the development of supporting industries

Foreign manufacturers in Viet Nam are increasingly looking for feedstocks and intermediate goods locally to reduce costs and minimise risks as the COVID-19 pandemic continues to disrupt global supply chains.

The pandemic hit production, but it is now being restored and speeded up as orders start to come back.

According to the HCM City Union of Business Associations, local companies still supply only simple products without high value addition and not core ones. A majority are small with limited resources and limitations in terms of production scale, controlling costs adopting technology.

In terms of space for production, industrial parks and high-tech zones in the city are almost fully occupied and it is not possible to develop new production facilities in residential areas, it pointed out. It wanted the Government to therefore create more favourable conditions for firms investing in the sector such as subsidising loan interest for longer periods.

51 supporting industry firms in the south get support to expand capacity

After two weeks of assessing the production status of supporting industry firms in the south, the Southern Technical Center for Supporting Industrial Development (IDCS) has selected 51 firms to which it will provide technical support and consultancy to improve their production capacity.

According to an IDCS spokesperson, the programme is meant to improve the production performance of supporting industries in the south as mandated by the Prime Minister’s Decision No. 68/QD-TTg in 2017 for supporting industry development until 2025.

The firms that have been selected are in the mechanical engineering, garment, electrical, footwear, packaging production and printing, and rubber/plastics industries, and based mainly in HCM City and Can Tho City and Dong Nai, Binh Duong and Long An provinces.

The programme is expected to help raise awareness among businesses of the importance of constantly improving quality, and promote the development of supporting industries to make them a launch pad for industrial development, the centre said.

Vietnam’s trade value to hit record high in 2021

Despite the impact of the COVID-19 pandemic, Vietnam’s total import-export value is expected to reach a record high at US$660 billion this year, according to the General Department of Vietnam Customs.

Statistics from the department show the country’s total import-export turnover was US$602 billion in the January-November period, surpassing the US$500 billion mark recorded two years ago. Of the total, the export value was US$299.67 billion, up 17.5%, and the import value was US$299.45 billion, up 27.5%, resulting in a trade surplus of US$225 million.

The agency forecasts that the 2021 import - export turnover is likely to surpass the US$660 billion mark, making Vietnam one of the 20 leading economies in terms of international trade.

Reference exchange rate down VND 13 at week’s beginning

The State Bank of Vietnam set the daily reference exchange rate at 23,184 VND/USD on December 20, down 13 VND from the last working day of the previous week.

With the current trading band of +/-3 percent, the ceiling rate applicable to commercial banks during the day is 23,879 VND/USD and the floor rate 22,488 VND/USD.

Hanoi kicks off 2021 promotion month

The ceremony to launch Hanoi Sales Promotion Month and kick-start the demand-stimulating week took place in Hanoi on December 17.

The sales promotion programme on December 17-31 features nearly 500 businesses from all reaches of the economic spectrum, including trade centres, supermarkets, and convenience stores, as well as home appliances, travel, banks, telecom and IT, and e-commerce firms.

The programme consists of a chain of special events to benefit consumers. Along with this, the demand stimulating week from December 17 to 24 is taking place at more than 1,000 sale venues, especially big supermarkets and trade centres across Hanoi.

The highlight of Hanoi Promotion Week will be taking place on December 18-19 when thousands of products would be offered at impressive discounts of up to 70 per cent to welcome the upcoming Christmas and New Year 2022.

MPI plans to conduct 34 inspections in 2022

Key infrastructure and transport projects are the most important objects of the inspection plan of the Ministry of Planning and Investment (MPI) next year.

In its newly-issued inspection plan for 2022, the transportation projects that the MPI plans to inspect next year are component projects of the North-South Expressway in the east (running across Ninh Binh, Binh Thuan, Vinh Long, and Tien Giang provinces) and the project on upgrading the system of runways and taxiways at Tan Son Nhat International Airport in Ho Chi Minh City; the highway projects connecting Hanoi-Haiphong and Cau Gie-Ninh Binh in the two provinces of Hung Yen and Ha Nam.

The ministry will inspect legal compliance at public investment projects in 2016-2020, investment in public-private partnership projects, the implementation of the Law on Investment in 2016-2020 in the six provinces of Hoa Binh, Binh Dinh, Cao Bang, Thanh Hoa, Thua Thien Hue, and Tuyen Quang.

Global partnership to support Mui Ke Ga LNG project in Vietnam

Energy Capital Vietnam has joined hands with B.Grimm Power, and Siemens Energy to accelerate the development of the Mui Ke Ga LNG project in Vietnam.

Under the consortium agreement, Thailand-based B.Grimm Power intends to invest approximately $200 million in equity at the financial close of the Mui Ke Ga (MKG) liquefied natural gas (LNG) to power project in Binh Thuan province in South Vietnam.

Meanwhile, Siemens Energy will deliver advanced technology equipment to the project to reduce the global carbon footprint by bringing cleaner burning gas to a still coal-dominated region. Further, Siemens Energy is evaluating participating in the construction of the project, which has an estimated total project cost of $1.75 billion.

Tra Vinh proposes development of VND2.8-trillion freshwater reservoir

Tra Vinh Province has planned to develop a freshwater reservoir project along the Lang The River to serve agricultural production and the daily activities of local residents, with a total investment of VND2.86 trillion, said a local official on December 16.

The government of the Mekong Delta province has written to the Ministry of Agriculture and Rural Development proposing adding the project to the country’s irrigation lake zoning plan during the 2021-2025 period, said Le Van Han, chairman of the provincial government, reported Tuoi Tre newspaper.

The project will include four water-level control drains serving the daily production at estuaries and the Lang The River fork, with an embankment of over 13 kilometers long.

Vietravel to sell over 55% stake in Vietravel Airlines

Vietravel has announced that it will sell a 55.58% stake in Vietravel Airlines, while retaining over 44%.

After the deal, Vietravel Airlines will no longer be a subsidiary of Vietravel, the local media reported.

The local tour operator decided to transfer ownership of the new aviation market entrant after it reported its semi-annual business results with an accumulated loss of VND326 billion.

The Covid pandemic severely affected the company’s net revenue due to the suspension of local and international tourism operations, according to Vietravel.

Transferring the stake in Vietravel Airlines was in line with Vietravel’s restructuring plan, said the travel firm.

Thai Vietjet to launch new service to Phu Quoc Island in late Dec

Thai Vietjet will launch its new international service connecting Bangkok with Vietnam’s Phu Quoc Island off Kien Giang Province, starting from December 30.

The new international service will bring tourists from Thailand to experience the island with a four-day-three-night package tour, with full board priced from only THB22,900, or US$680. Passengers will get complimentary Covid-19 insurance for travel within the first month of the launch flight.

During their stay in Phu Quoc, the tourists will have the opportunity to explore the Phu Quoc United Center and enjoy several entertainment spots in southern Phu Quoc at the Sunworld Hon Thom Natural Park, the Thom Island, the An Thoi Station, the Hon Thom Cable Car and the Aquatopia Water Park.

BRVT presents investment certificates to eight projects

The Ba Ria-Vung Tau government presented investment registration certificates to eight projects with total investment of some VND26 trillion, or US$1.1 billion, while celebrating the province’s 30th anniversary today, December 18.

These projects will focus on tourism, production and logistics, including the Cap Saint Jacques complex, the Novaworld Ho Tram-The Tropicana, a container production plant and the Camil logistics center and complex port, the local media reported.

Despite the impact of the Covid pandemic, this year, Ba Ria-Vung Tau Province attracted 76 new projects, with total pledged capital of some US$2.2 billion.

Independent consultant sought to investigate incident at metro line project

The Management Authority for Urban Railways of HCMC (MAUR) has suggested the Japan International Cooperation Agency (JICA), which funds the metro line No. 1 project in HCMC, appoint an independent consultant to investigate and assess the fallen rubber cushion incident.

According to MAUR, it has worked with the competent agencies, NJPT, a consulting unit of the metro line; Sumitomo – Cienco6 Consortium (SCC), the contractor of the elevated section and depots of the project; and other relevant agencies to accelerate the investigation into and the handling of the incident.

SCC has completed the necessary experiments and observations and will soon send a report on the reasons for the incident to MAUR and NJPT. The addition of an independent consulting unit will boost the legal process and offer an objective basis for the acceptance of the work.

The consultant, which must be independent of SCC, will be responsible for verifying and assessing the cause of the incident and proposing solutions to the contractor.

Pepper exports in 2021 reach about US$950 million

The Vietnam Pepper Association (VPA) announced that as planned, the country will export around 260,000 tons of pepper with an export turnover of around US$950 million. 

Ms. Hoang Thi Lien, former Executive Director of the International Pepper Association is elected as the President of VPA.

VPA announced this news at yesterday’s conference to review the activities of the sixth term (2017-2020) and the direction of the seventh term (2021-2023). According to VPA, by the end of November, Vietnam had exported 245,975 tons of the agricultural product earning $867.2 million.

Compared to the same period in 2020, export volume decreased by 7 percent but export turnover increased by 43.8 percent. Since March, pepper prices have started to recover due to a sharp decrease in supply. Currently, the domestic price of pepper is fluctuating around VND82,000 per kg.

Source: VNA/SGGP/VIR/VNS/VOV/SGT

VIETNAM BUSINESS NEWS DECEMBER 19

Iron and steel exports exceed US$10 billion for first time