Annual consumption promotion fair underway in HCM City

The 2023 Consumption Promotion Fair kicked off in Ho Chi Minh City on December 27 evening, featuring about 200 booths by more than 100 businesses.

On display are farm produce, food and specialties of localities, among others, with diverse packaging and guaranteed quality and prices.

The annual event is expected to contribute to stimulating consumer demand and boosting local economic growth, Deputy Director of the municipal Department of Industry and Trade Nguyen Thi Kim Ngoc said, adding the participating businesses offer discounts ranging from 30% to 70%.

Within the framework of the fair, to last until January 1, there will be trade promotion activities and others connecting producers and distributors.

Agricultural products key part of Vietnam’s exports to Guangdong

Together with electronic devices, agricultural products like rice, coffee, tea, pepper, chilli, dragon fruit and processed food are Vietnam’s key export items to Guangdong, China, according to an official.

Speaking at the Guangdong (China) – Vietnam trade promotion conference held on December 27, Director of the Trade Promotion Centre for Agriculture (AgriTrade) under the Ministry of Agriculture and Rural Development Nguyen Minh Tien said that China is Vietnam's largest agricultural export market in 2023.

In the first 11 months of 2023, Vietnam exported agricultural products to China with a turnover of 11.5 billion USD, an increase of 18% compared to the same period in 2022, accounting for 23.2% of Vietnam's total agricultural export turnover.

According to data from the General Administration of Customs of China, trade turnover between Vietnam and Guangdong reached 47 billion USD, accounting for 20.1% of the total import-export turnover between Vietnam and China. Vietnam’s exports reached about 22 billion USD and its imports, about 25 billion USD.

Under the signed cooperation agreement between AgriTrade and the Guangdong Import-Export Association, it’s hoped that the two sides will jointly organise trade connection programmes for Vietnamese and Chinese businesses. China’s agricultural supplies, equipment, production lines, processing and packaging products will also be introduced to Vietnamese businesses.

Chau Kelvin, Chief Representative of Guangdong Import-Export Association in Vietnam, said that the association has over 1,000 member businesses and provides a professional platform to serve import-export businesses.

In Vietnam, the association cooperates with AgriTrade and localities, participates in trade promotion activities, and organises exhibitions and trade promotion events.

He said in the coming time, his association will boost and expand trade promotion with Vietnamese localities and help Vietnamese agricultural products further access the Chinese market.

At the event, enterprises exchanged information on fairs that will take place in the coming time. They also discussed issues on customs procedures, logistics and online commerce to help Vietnamese exporters solve their problems when exporting products to China.

Bac Lieu rolls out red carpet for Indian investors

The Mekong Delta province of Bac Lieu continues to create favourable conditions for foreign investors, including those from India, Chairman of the provincial People’s Committee Pham Van Thieu said on December 27.

Hosting a reception for Indian General Consul Madan Mohan Sethi, Thieu said he hopes for a stronger cooperation between Bac Lieu province and the Consulate General of India in Ho Chi Minh City to help deepen the ties between Vietnam and India in the time ahead.

He suggested the Indian side to connect bilateral cooperation in high-tech agriculture, information technology, health care and high-quality education.

Briefing his guest on the province’s socioeconomic development, Thieu said Bac Lieu is striving to become a shrimp hub of the nation. Therefore, it is calling investment in high-tech shrimp farming, and wants to learn experience from India.

Besides, renewable energy is also a prioritised area for the province, he added.

The Indian diplomat, for his part, highlighted India’s economic situation and its investment in the Vietnamese market, expressing his hope that authorities in Bac Lieu will facilitate Indian investors in seeking cooperation and investment opportunities in the province.

As many as 400,000 Indian tourists visited Vietnam in 2023, he said, stressing that he wants to develop tours to bring more Indians to Bac Lieu province.

Furthermore, he wished that both sides will step up collaboration in culture, education, health care, especially joining hands to build an IT centre, as well as project to bolter investment between the two sides.

He also took the occasion to invite Bac Lieu leaders to pay a working visit to India in March, saying meetings and trade promotion events between the two sides will help expand their bilateral relations.

VinFast begins selling electric vehicles in the US

Leading Vietnamese electric vehicle maker VinFast is scheduled to begin selling Electric Vehicles (EVs) in the Triangle area of North Carolina on December 28, according to Raleigh-based television station WRAL News.

Leith Automotive which is based in the town of Cary in North Carolina will be the home to the company’s first non-factory-owned dealership in the United States.

WRAL News revealed that at the showroom on 2000 Auto Park Blvd, VinFast will introduce its own EVs to customers in Raleigh, Durham, and Cary. The dealership will be operating in co-ordination with the upcoming factory in Chatham County and is part of the firm’s wider strategic plan.

“The VF9, a versatile seven-passenger SUV, is expected to arrive in the first quarter of 2024, with the VF7s to follow soon after,” the television station noted.

WRAL News also quoted a spokesperson for Leith as saying that it will work in tandem with the new factory being built in Chatham.

Projected to be completed in 2025, the initial phase aims to produce up to 150,000 electric vehicles each year, further propelling North Carolina's position as a hub for clean energy and automotive innovation.

KRX system's operation delayed

It was expected that the new KRX stock trading system would start operations on December 25. However, there hasn't been any official information from the Hồ Chí Minh Stock Exchange (HOSE), the project's investor.

In fact, the market has speculated that KRX has encountered a delay. This is because, on December 21, HoSE sent a letter to securities companies regarding the continuation of the KRX project testing.

Particularly, the testing was scheduled to take place from December 22 to 24. The exchanges requested securities firms to promptly report any errors or issues encountered during the testing phase and submit a test result report for the factory acceptance test (FAT) stage by December 25. It can be seen that the testing phase with securities companies has not yet been completed.

Furthermore, according to research, it is not easy to bring the KRX into operation. It will take several days, even weeks, for the transition to occur.

In addition, the KRX system requires approval from the appropriate authorities before it can be put into use. Thus, it's not simply a matter of the December 25 operational date being missed; it's also possible that KRX will encounter difficulties operating during December.

In September, the Vietnam Stock Exchange (VNX) sent an official dispatch to member securities companies about testing the KRX information technology system for the second time.

By October, HoSE held a meeting to evaluate the implementation status of the KRX project before officially putting it into operation.

At that time, based on the test results updated to the extended eUAT (user testing) phase, there were a total of 59 to 76 securities companies that successfully tested 100 per cent of the functions, equivalent to a rate of nearly 78 per cent.

For the corporate bond and stock markets, order testing has involved all 76 member securities companies. With the exception of Tân Việt Securities and BOS Securities, the remaining 22 companies have experimented with placing orders in the futures market, while out of the 64 members, 56 have tested the system using the government bond market.

Through the testing process, it can be seen that although the rate of meeting the scenario is quite high, the readiness level of operation of the securities companies' system is still low. 

Specifically, there are also 66 businesses (87 per cent) rated as not ready. 

Productivity – decisive factor in boosting economic growth: GSO

Việt Nam needs to adopt various solutions, particularly those to improve the quality of human resources to increase productivity, in order to achieve the 2024 growth target set by the National Assembly, said Nguyễn Thị Hương, head of the General Statistics Office (GSO).

The legislature sets the goals that the national GDP would grow 6-6.5 per cent in the year, and GDP per capita would stand at between US$4,700 and $4,730. The processing and manufacturing industry is also projected to account for 24.1-24.2 per cent of the GDP.

To boost the domestic processing and manufacturing industry, the workforce must satisfy requirements, Hương explained, elaborating that the rate of trained workers should stay at about 69 per cent, of whom those with degrees and certificates range between 28 per cent and 28.5 per cent.

The official viewed productivity as a decisive factor in improving the competitiveness of the national economy and each enterprise, saying it plays a crucial role in boosting long-term economic growth.

It becomes even more important given the crunch of capital, land, and natural resources, and workforce affected by population aging, she continued.

According to the GSO, increasing productivity depends on different factors like consumption demand, production capital, wage, bonuses, science-technology, innovation, institutions, policies, and production structure, along with the factors associated with natural conditions and personnel quality with the latter playing a key role.

Besides, scientific and technological advances require labourers to have higher qualifications in order to optimise production, Hương said, stressing the need to improve training quality to meet requirements of businesses. 

Foreign investment disbursement hits record high in 2023

Disbursement of foreign investment reached US$23.18 billion in 2023, up 3.5 per cent year-on-year and marking a record high thus far, a report from the Ministry of Planning and Investment's Foreign Investment Department (FIA) has shown.

According to the report, foreign investment inflows into Việt Nam this year also saw a significant increase of 32 per cent to nearly $36.62 billion.

Up to 3,188 new foreign-invested projects were licensed during the year with a total registered capital of over $36.6 billion, up 57 per cent and 62 per cent, respectively.

At the same time, 1,262 operating projects were allowed to raise their levels of capital by over $7.88 billion, surging 14 per cent in in the number of projects but down 22 per cent in terms of capital, the report said. It added that foreign investors' capital contributions and share purchases also recorded a yearly hike of 66 per cent to $8.5 billion.

The FIA said that foreign investment still focused on 10 provinces and cities that had many advantages in attracting foreign investment including good infrastructure, stable human resources, efforts to reform administrative procedures, and effective investment promotion.

These 10 localities which are HCM City, Hải Phòng, Quảng Ninh, Bắc Giang, Thái Bình, Hà Nội, Bắc Ninh, Nghệ An, Bình Dương, and Đồng Nai account for 78.6 per cent of the country's total number of foreign-invested projects and 74.4 per cent of registered capital.

From January to December, the manufacturing and processing sector attracted the lion's share of foreign investment with over $23.5 billion, up 40 per cent year-on-year or equivalent to 64.2 per cent of the total.

Real estate came next with nearly $4.67 billion, up 4.8 per cent or making up 12.7 per cent of the total. Electricity production ranked third with $2.37 billion, surging 4 per cent, followed by banking and finance with $1.56 billion, up 27 times.

Among 111 countries and territories investing in Việt Nam, Singapore took the lead with over $6.8 billion, making up 18.6 per cent of the total foreign investment pledged in the country.

Japan followed with nearly $6.57 billion or 18 per cent, and Hong Kong (China) with $4.68 billion or 12.8 per cent. The country's other major foreign investors were mainland China, South Korea, and Taiwan.

As of December 20, South Korea was the country's largest source of foreign investment with 9,863 projects, worth over $85.86 billion. It was followed by Singapore with 3,494 projects valued at $74.51 billion; Japan with 5,264 projects capitalised at $73.96 billion and Taiwan with 3,104 projects worth $39.31 billion. 

Surimi, fishmeal exports expected to climb to $1b

Exports of surimi (fish paste) and fishmeal could reach US$1 billion a year in the near future, according to the Việt Nam Association of Seafood Exporters and Producers (VASEP).

In the last five years, Việt Nam’s exports of surimi, including from marine fish and tra fish have risen to $300-420 million a year, or 4-5 per cent of the country’s total seafood exports.

The country also produces 530,300-540,000 tonnes of fishmeal annually, including from marine fish and pangasius by-products. Of this, 200,000-280,000 tonnes are exported annually and fetch $200 million.

The association said surimi and fishmeal contribute to creating a circular economy in the seafood industry.

Nguyễn Thị Thu Sắc, VASEP’s chairwoman, said surimi is a product with great potential since there is increasing global demand for it.

"Sumiri and fishmeal businesses have created jobs and contributed significantly to the fisheries and livestock economy. With the exports of main products such as shrimp and pangasius facing many difficulties, promoting and developing the surimi and fishmeal sectors is imperative."

According to VASEP, Việt Nam exports the two products to more than 40 countries and territories, with South Korea being the leading importer followed by Thailand, China and Japan.

It also pointed out that demand for aquafeed has shot up in recent years and is expected to remain high, and so demand for fishmeal, one of the main ingredients for making aquafeed and animal feed in general would also continue to rise, it added.

Việt Nam has over 100 enterprises processing and exporting fish cakes and surimi and nearly 50 making and exporting fishmeal. They include large ones such as Vĩnh Hoàn Corporation and Multinational Development and Investment Joint Stock Company.

To create intra-industry links with an eye on improving value and the quality of surimi and fishmeal products, the association launched the VASEP Surimi and Fish Meal Business Club on December 22.

It would promote sustainable development of the surimi and fish meal segments and Việt Nam's seafood industry in general, Lê Hằng, VASEP’s communications director, said.

It is committed to fostering a circular economy and developing the seafood supply chain sustainably through stringent compliance with environment, labour and social responsibility regulations, especially on Illegal, Unreported, and Unregulated (IUU) Fishing, she added. 

Bình Định greenlights 22 investment ventures worth over $529 million

The People’s Committee of the south central province of Bình Định has granted approval and investment licences to 22 projects worth over VNĐ12.7 trillion (US$529.1 million) this year, showing the province's attractiveness to investors.

Furthermore, 23 domestic and international investors have come to the province to explore opportunities in manufacturing, industrial processing, real estate, trade and services.

Some of them signalled readiness to sign memoranda of understanding with the province, committing to invest in major projects. These include onshore, nearshore, and offshore wind farms with a planned capacity of 2,000MW and an estimated capital outlay of around $4.8 billion. Other notable ventures comprise an offshore wind power plant valued at roughly $4.6 billion in Phú Mỹ District, a paper and pulp processing plant worth nearly VNĐ21.7 trillion and the An Quang Urban and Tourism area project with total investment of VNĐ5.2 trillion ($217 million).

At present, Bình Định Province is prioritising projects aimed at bolstering key pillars of economic growth in the foreseeable future, including industries, tourism services, seaports-logistics, hi-tech agriculture and urbanisation.

Chairman of the provincial People’s Committee Phạm Anh Tuấn has pledged unwavering support to facilitate a robust transformation in the business environment, thereby enhancing local competitiveness.

According to the provincial Department of Planning and Investment, the entire province has attracted 76 domestic projects valued at more than VNĐ15.2 trillion, and six foreign-invested ventures valued at $46.2 million since the beginning of this year. The province is now home to a total of 91 FDI projects, with total registered capital amounting nearly $1.2 billion. 

Petrol prices slightly changed

Retail prices of petrol were changed slightly in the latest adjustment on December 28 by the Ministry of Industry and Trade and the Ministry of Finance.

The price of E5 RON 92 was cut by 13 VND to 21,186 VND (0.87 USD) per litre while that of RON95-III was hiked by 3 VND to 22,148 VND per litre.

Meanwhile, the price of diesel was increased by 264 VND to 19,788 VND per litre and that of mazut, by 420 VND to 15,685 VND per kg.

The price of kerosene was reduced by 37 VND to 20,457 VND.

At this price adjustment, the two ministries decided to extract 300 VND per kg from the mazut price and not to use the petrol and oil price stabilisation fund to all the fuel products.

Since the beginning of this year, petrol prices have undergone 37 adjustments, with 19 up, 14 down, and five unchanged.

Buybacks of pre-maturity corporate bonds increase by 5.8% in 2023

Vietnam's corporate bonds worth 230.2 trillion VND (nearly 9.5 billion USD) had been redeemed before maturity by December 25, an increase of 5.8% compared to the figure in 2022, according to the Ministry of Finance.

In addition, 78 enterprises have issued bonds worth 245.9 trillion VND, down 27% over the same period in 2022. More than 93 % of the bond buyers were institutional investors with commercial banks accounting for 54.5%, and only 6.8% of the buyers were individual investors.

In 2023, the ministry submitted to the Government to promulgate Decree 08/2023/ND-CP regulating the offering and trading of corporate bonds on the domestic and international markets. The move created a legal basis to remove difficulties for businesses in issuing and paying due bonds, restoring market confidence, and ensuring the rights of bond owners.

In July 2023, the separate corporate bond trading system was officially launched, creating favourable conditions for investors.

According to the ministry, Vietnam’s corporate bond market has began to recover as some investors were interested in the market again when the interest rates of corporate bonds were higher than other investment channels. However, the ministry recommended that investors, especially individual investors, should be cautious when investing in corporate bonds. They must fully access issuance documents, and analyse and evaluate risks thoroughly before buying bonds.

Vietnam sees five-fold increase in durian export turnover

Vietnam earned more than US$2.1 billion from exporting durians between January – December 2023, representing an increase of 580.3% year on year, reported the General Department of Customs.

Statistics show that durian exports brought in US$91 million in November alone, down 73.9% month on month but up 16.3% year on year.

China was the largest consumer of Vietnamese durian, spending US$82.14 million on imports in November, down 74.8% month on month but up 37.2% year on year. Overall, the past 11 months saw China import US$1.97 billion worth of Vietnamese durian, up 1,515% year on year.

Fresh durian exports to other markets also enjoyed high growth, including the Czech Republic (28,195%), Papua New Guinea (837%), the United States of America (283%), Canada (222%) and France (32%).

Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetables Association (Vinafruit), predicted that Vietnam’s durian export turnover in 2023 could reach a record high of US$2.2 - 2.3 billion, five times the 2022 figure and 10 times the 2021 figure.

Vietnam has so far shipped fresh durians to 24 markets and frozen durians to 23 markets globally.

Incentives abound for minimum tax adoption

Vietnam has been urged to create more incentives for foreign investors following the country’s decision to apply a new international corporate income tax top-up.

Nguyen Tran Minh Tri, a representative from the Institute of World Economics and Politics under the Vietnam Academy of Social Sciences, proposed that the government should, as soon as possible, enact new incentives for foreign-invested enterprises (FIEs), especially those with large-scale projects, to help the country continue to be a magnet for foreign investment.

Vietnam is to apply the global minimum tax (GMT) of 15 per cent on multinational corporations (MNCs) with a revenue exceeding €750 million ($821.6) million from January 2024.

The National Assembly a month ago passed a resolution on the imposition of top-up corporate income tax (CIT) of 15 per cent under Global Anti-Base Erosion model rules, which will take effect on January 1 next year until the country’s new law on CIT is released.

Under the resolution’s Article 2 on taxpayers, the taxpayers in Vietnam include a member company of an MNC with a turnover equivalent to $821.6 million or more in the consolidated financial statements of the ultimate parent company for at least two of the four years immediately preceding the fiscal year.

For Vietnam, the imposition of the GMT will help ensure the country’s right to levy the tax, in line with the international practices and trend currently deployed by so many nations.

Under a government report on assessing the impact of the resolution, based on 2022 CIT data analysis, it calculated that over 120 FIEs will be subject to the resolution, with a total amount of top-up CIT of about $616 million.

Tri said that, in principle, the support of enterprises which are subject to the GMT is applied after enterprises have fulfilled their GMT obligation in Vietnam.

Vietnam’s current general CIT rate is 20 per cent, which is higher than the GMT rate. However, this rate is just of nominal value because all major foreign-invested projects in Vietnam have been currently enjoying special incentives policies covering various investment fields, locations, and labour use scales.

Thus, many MNCs are entitled to a four-year tax exemption and a half tax reduction for nine years, or a two-year tax exemption and half tax decrease for four years, so the total amount of their paid tax is less than 15 per cent.

At present, the department is studying this policy, which will replace the existing CIT incentives for FIEs, which will be affected by the GMT.

According to Vu Ngoc Thang, tax manager at consultancy firm Dezan Shira & Associates, if tax incentives are invalidated in Vietnam and there are no appropriate measures in place, other countries will benefit from top-up taxes and Vietnam will miss out on billions of US dollars of tax outflows to other countries’ budgets.

In the global context, the major stakeholders are quickly responding to the adoption of GMT. Specifically, it is being carried out by the EU, the UK, and South Korea in 2024. Vietnam is strongly attracting investment from these nations, as well as the United States and other powerhouses. What is more, Malaysia and Thailand are set to implement the GMT in 2024 and 2025, respectively, and they are big rivals of Vietnam in luring funding from abroad.

Meanwhile, Rizwan Khan, partner at consultancy firm Acclime Vietnam, said that Vietnam may be able to maintain its appeal by carrying out other policies to offset the negative effects of the GMT.

According to the International Monetary Fund (IMF), the GMT adoption in 2024 will increase tax revenues but will require improvements to the investment climate. Vietnam could be among those most affected by the GMT – as it has often granted tax incentives to MNCs to attract FDI, including lower income taxes, that will be eroded.

Stay-away investors neglecting completion process

After the government in late November assigned ministries and localities to prepare necessary conditions to welcome new capital, localities were eager to appraise and approve dossiers to grant investment licences.

The people’s committees of provinces and centrally -run cities such as Hanoi, Hai Duong, Bac Giang, Nghe An, and Ho Chi Minh City are proactively approaching and supporting investors to remove pending difficulties and accelerate disbursement of such capital.

The committees require their local authorities to speed up handling of business investment procedures, and simultaneously deploy electronic public administrative services for investors.

However, according to localities like Hai Duong, one of the reasons causing delays in handling business investment procedures is the absence of investors.

“Post-pandemic, many foreign investors work online more often. They authorise consultant and law firms to complete the investment procedures. They often give authority to contractors during the process and only arrive in Vietnam to take the facilities into operation,” said Nguyen Thi Thuy Hang, deputy director of Hai Duong Industrial Parks Management Authority.

However, Hang said that the absence of investors makes it difficult for authorities to guide the details of many business procedures.

She also said that in many cases, investors granting absolute authority of construction of facilities to contractors has caused unexpected violations. For example, many have constructed projects without a licence, and as a result, the investors have to suffer the fine.

According to other localities, this most often occurs with small- and medium-sized projects. According to information from the Vietnam Chamber of Commerce and Industry, over 80 per cent of foreign-invested enterprises in Vietnam have capital below VND100 billion ($4.2 million) each, a quarter employ fewer than 10 workers, and just over half have fewer than 50 workers. Thus, localities expect tight cooperation with investors to accelerate the licensing process.

Prime Minister Pham Minh Chinh at a conference with foreign-invested enterprises (FIEs) in October said that the country would provide optimal conditions for FIEs to develop long-term and healthily compete with those from other economic sectors.

Quang Ngai starts $148 million road venture

Along with the provincial planning announcement on December 24, Quang Ngai province held a groundbreaking ceremony to kick-off construction of Hoang Sa-Doc Soi road.

According to Dang Van Minh, Chairman of Quang Ngai People's Committee, the road is the largest ever road traffic project funded by the province. It will see a total length of 26.8km and an investment value reaching $148 million.

The project is identified by the Party Standing Committee as a key one to welcome the 21st Quang Ngai Party Congress during the 2025-2030 term.

Minh said that when completed and put into use, the new road will be a crucial axis connecting inter-regional traffic in the north-south direction; gradually improve the province's road traffic network; reduce the flow of vehicles participating on National Highway No.1; and meet increasing transport needs in terms of trade.

New real estate law to clean up conditions

The new Real Estate Business Law, passed by the National Assembly in November and effective from 2025, could narrow the scope of regulation and tighten conditions for transferring real estate projects.

According to Nguyen Van Dinh, real estate legal expert, according to the new law, investors who want to transfer all or part of a real estate project need to fulfill their financial obligations related to project land and transfer.

The new law also does not allow agencies and organisations to sell houses, construction works, or transfer land use rights due to bankruptcy, dissolution, division, or company separation.

In addition, credit institutions and debt management companies are not allowed to sell houses, construction projects, transfer land use rights, or transfer real estate projects as collateral for recovery debt.

After a decision to allow the transfer is issued and the parties have signed the contract, land procedures will be carried out according to the provisions of the Land Law. The draft Land Law recommends that the transferee inherit the rights and obligations of the transferor without having to recover and deliver land or recalculate land use fees.

Phan Xuan Can, chairman of merger and acquisition consultants SohoVietnam, told VIR that one of the highlights in the new law was that projects can be transferred when its owners have transferees completed all necessary conditions but have not received a land use rights certificate, but meanwhile can continue to submit to competent bodies for issuance after the project is transferred.

In addition, for real estate projects that transfer part of the project, it is also necessary to ensure that the construction items or the use and business purposes of the construction works of the transferred project part should be independent to other parts in a real estate project.

Regarding the principle of transferring all or part of a real estate project, Can said that the new law stipulates that real estate project investors are allowed to transfer all or part of the project to another investor to continue to invest in construction and business while the project is being implemented and approved by a competent state agency.

When transferring all or part of a real estate project, related parties must ensure that the planning and objectives of the project will not be changed, ensuring the legitimate rights and interests of customers and related parties.

The investor who receives the transfer of all or part of a real estate project does not have to redo the project documents, construction planning and construction permit of the project if there are no changes in the content of the project. If there are changes, the investor receiving the transfer shall make adjustments according to the provisions of law, Can added.

Market shifts remain sticky topic for banks

Despite announcing a planned shift to a new bourse in August, to be executed in early Q4, there has been no further progress reported by Nam A Bank. At its AGM in April, it reaffirmed plans to list all circulating shares on either the Hanoi Stock Exchange (HNX) or the Ho Chi Minh Stock Exchange (HSX), depending on market conditions.

The plan was initially approved in 2022 but was postponed to safeguard shareholder interests amidst an unpredictable macroeconomic climate and volatile stock market.

By May this year, the HSX had received Nam A Bank’s listing application for 846.4 million shares, with SBS Securities playing an advisory role in the listing process.

While Nam A Bank’s listing remains pending, its shares have shown remarkable growth, more than doubling in value since the start of the year, currently priced around 61 US cents per share.

This contrasts with other banks that, despite early year plans to change trading floors, have not yet initiated the process nor submitted listing applications. Furthermore, their share prices have fluctuated unfavourably.

VietBank in April decided to relaunch a programme aiming to list its shares on the HSX once legal and stronger market conditions were met. “For VietBank, the move is pivotal, enhancing transparency and competitive capability as a public company, and aligning with its strategic goals for 2023-2025,” a bank representative confirmed.

However, VietBank’s share price has not been encouraging this year, being one of the three bank stocks trading below face value, closing at around 40 US cents per share on December 20, with low trading volume.

Similarly, ABBank delayed its listing on the HSX in 2022. Despite intentions set since 2018, its plan remains unrealised. ABBank, along with VietBank, is trading below face value, hovering around 34 US cents per share.

In the same vein, BVBank is also gearing up for a pivotal move to list its shares on the HSX within 2023. Trading on the Unlisted Public Company Market (UPCoM) platform since July 2020, the bank is now seeking to elevate its market presence through the transition.

CEO Ngo Quang Trung said in May, “Listing on the HSX represents a strategic leap for BVBank. It will not only enhance our market standing and brand visibility, but also significantly improve the liquidity of our shares.”

However, like others, BVBank’s listing plans in 2023 have been postponed, with its shares currently priced around 44 US cents per share, up over 20 per cent from the start of the year.

Likewise, despite its announcement a few years ago, state-owned lender Agribank has not yet achieved a successful public listing.

According to the State Securities Commission, at present, Vietnam’s banking landscape is represented by 17 banks on the HSX, two on the HNX, and eight on the UPCoM. Recent years have seen a trend where banks listed on the UPCoM express intentions to shift to the HSX or the HNX. Yet, as 2023 comes to its end, none have successfully made the transition.

According to Deloitte, the Vietnamese market saw only three initial public offering (IPO) listings this year, raising about $7 million. The low number is attributed to tightened IPO and listing approval processes, combined with a high net outflow of foreign investment due to global and local factors impacting market liquidity.

The challenging conditions, along with the VN-Index’s decline since mid-2022, have compelled companies aspiring for IPOs to postpone their plans, awaiting more favourable times.

Bui Van Trinh, partner of Audit and Assurance at Deloitte Vietnam, noted, “While Vietnam’s stock indices have shown signs of recovery as 2023 draws to a close, they still lag significantly behind the peak levels seen in 2021 as well as early 2022. Nonetheless, the government’s various economic stimulus efforts and steps to enhance the Vietnamese stock market are poised to bolster investor confidence heading into 2024.”

Binh Thuan: 13 solar farms built on national mineral reserve locations

The Government Inspectorate has concluded in a report that Binh Thuan authorities committed serious violations when handing over land within national mineral reserve locations to renewable energy developers.

This conclusion is related to a review of National Power Development Plan VII and its amendments, which revealed several irregularities during the licensing of and land allocations for wind and solar farm projects in the south-central province.

The report said that the licensing of 13 solar power projects within national mineral reserve areas had amounted to a violation of the law. These projects include Hong Liem 3, Hoa Thang 1.2, Thai Hoa, Hong Phong 1, Hong Phong 5.2, Hong Phong 4, Han Kiem, Han Kiem 1, Mui Ne solar farm, and the second phase of Dien Gio and Phong Dien 1 wind power farms.

That the Ministry of Industry and Trade and the Binh Thuan People’s Committee approved of the location and construction of the Hong Liem 3 solar power plant in an area designated for titan surveying, processing, and exploitation is in violation of the 2013 Land Law.

Numerous violations have also been found in land use purpose conversions and land leases granted by the province to companies, including Thien Nien Ky, Hong Phong 1, Hong Phong 2, Duc Thanh Mui Ne, Truong Thanh-Binh Thuan, and Binh Thuan No. 8 Electric Construction Installation and Investment.

The Government Inspectorate has proposed the prime minister direct Binh Thuan authorities to reprimand organizations and individuals involved in these violations. The province has also been asked to redeem land wrongly handed over, collect land rent, and recover delayed payments for the state budget.

Vietnamese spend more on e-commerce platforms in Nov

Vietnamese online shoppers were more active in November, with their transactions on four major e-commerce platforms amounting to nearly VND32 trillion.
This information was reported by the e-commerce data intelligence platform EcomHeat, managed by YouNet ECI, after having analyzed data from 2.6 million virtual stores on Shopee, Tiki, Lazada, and TikTok Shop e-commerce platforms.

Numerous promotions and sales programs were launched last month to stimulate year-end shopping. As a result, 405,000 vendors on the four platforms reported successful transactions in the month.

Among them, Shopee emerged as the top performer, generating a staggering 72.7% of the total revenue, equivalent to VND22,670 billion, and leading in all product categories.

TikTok Shop and Lazada accounted for 17.2% and 9% of the revenue, respectively. While TikTok Shop excelled in fashion, accessories, beauty, and food and beverage categories, Lazada showed strength in high-value products like tech items, home appliances and audio equipment. In November, tech products alone generated VND385 billion in revenue for Lazada.

Lazada also led in terms of the average cost of a product, with an average price of VND162,000. Shopee followed with VND116,000 and TikTok Shop with VND108,000, the lowest.

EVNSPC Binh Thuan leaders placed in police custody

Nguyen Thanh Ngon, head of EVNSPC Binh Thuan, his predecessor Tran Ngoc Linh and 15 others have been detained on alleged charges of accepting bribes and violating the laws on bidding and accounting.

Lieutenant General To An Xo, spokesperson of the Ministry of Public Security (MPS), said at a press conference this afternoon, December 27, that the police are currently conducting an investigation of wrongdoing by Tuan An Group Joint Stock Company, EVNSPC Binh Thuan as a subsidiary of Southern Power Corporation (EVNSPC), and related entities in the bidding process for the supply of material, equipment, and accessories for the electricity sector.

Nguyen Thanh Ngon and his predecessor Tran Ngoc Linh were detained on alleged charges of violating bidding regulations causing serious consequences, and accepting bribes.

Truong Tuan Dat, deputy diector of EVN Binh Thuan, and Ta Thuc Thong, a specialist in the Procurement Planning Department, were also arrested for the same charges.

Also involved in the case are Huynh Tuan An, chairman of Tuan An Group, who has been detained over alleged violations of bidding regulations causing serious consequences, giving bribes, and violating accounting regulations causing serious consequences.

Meanwhile, Nguyen Trung Quan, director of Tuan An Group; Tran Thien Chuong, former director; and Ta Ngoc Huan, deputy director of Tuan An Electrical Equipment Company, have also been arrested on alleged charges of violations of bidding regulations.

Eight other individuals in Tuan An Group and other entities have also been arrested on alleged charges of violating accounting regulations and illegal printing, issuing, buying, and selling of invoices and documents related to the collection of State budget revenue.

High logistics costs make Vietnam’s produce less competitive

High logistics costs have put Vietnam’s agricultural sector at a disadvantage over regional countries, according to insights from a conference organized by the Ministry of Agriculture and Rural Development.

Vietnam’s logistics costs are 6% higher than Thailand’s, 12% higher than Malaysia’s, and a staggering 300% higher than Singapore’s. The country’s agricultural logistics sector is also marred by inadequate infrastructure and limited service capacity.

The road network, despite upgrades, is struggling to handle the volume and types of agricultural goods, particularly perishable crops, resulting in higher costs and spoilage.

In seafood, 12% of production costs are consumed by logistics, while the timber industry bears a 23% cost burden. Fruits and vegetables face a 29% logistics hurdle, leading to higher prices and increased spoilage. A significant 30% of rice production costs are attributed to logistics, impacting farmers’ incomes and food security.

The Ministry of Agriculture and Rural Development has proposed the “Enhancing Logistics Service System to Enhance the Quality and Competitive Capacity of Vietnam’s Agricultural Products by 2030” initiative to address these challenges.

HCMC beats 2023 tax revenue target

HCMC has beat its 2023 domestic tax collection target despite initial concerns about the possibility of obaining this goal.

The city’s total domestic tax revenue in the year to date has amounted to nearly VND318.3 trillion, which is a little bit higher than the estimate for the year, said HCMC People’s Committee deputy chairman Nguyen Van Dung during a 2023 review conference of the HCMC Tax Department on December 26.

Data from the department showed that domestic tax revenue, excluding oil, reached nearly VND293.5 trillion, which was slightly over 95% of the full-year estimate but 5% lower than in the previous year. Tax revenue from business activities accounted for 65% of this total, amounting to VND190.1 trillion.

Revenue from crude oil reached VND24.8 trillion, exceeding 55% of the estimate but experiencing a 14% decrease compared to the previous year.

This achievement is particularly noteworthy given the challenging economic conditions, though the city’s tax revenue is 4-5% lower than the previous year, said Dung.

VND19.8 trillion approved for 61km expressway in northern Vietnam

Vietnam will spend VND19.8 trillion constructing a 60.9-kilometer expressway linking two northern provinces — Nam Dinh and Thai Binh.

The project has been approved by Prime Minister Pham Minh Chinh and will be developed under the public-private partnership (PPP) format.

The planned road is part of the Ninh Binh-Haiphong expressway project. It will have four lanes with a speed limit of 120 kilometers per hour and is scheduled for completion in 2027.

The road will run from Nghia Hung District in Nam Dinh Province to Thai Thuy District in Thai Binh Province. The Nam Dinh section will be 27.6 kilometers long while the length of the Thai Binh section will be 33.3 kilometers.

The project will help boost economic growth and enhance connectivity between major cities such as Hanoi, Haiphong and Thanh Hoa.

This investment is part of Vietnam’s broader plan to establish a comprehensive nationwide network of expressways. The country aims to expand this network to 4,000 kilometers by 2025.

Japanese firms interested in vocational school, mushroom farm in Dong Nai

Japanese companies from Oita Prefecture, Japan have expressed interest in establishing a vocational school and developing a high-tech mushroom farm in the southern province of Dong Nai. The discussions regarding these investments took place during a meeting with the Dong Nai provincial government on December 26.

The proposed vocational school, to be situated in Thong Nhat District, would provide training in high-demand sectors such as manufacturing and agriculture. The mushroom farm, planned to be located in the vicinity, will employ advanced techniques.

Dong Nai has shown its willingness to review the proposals and extend assistance to the companies in obtaining the required permits for these initiatives.

These investment proposals are the latest in a series of Japanese ventures in Dong Nai. In 2023, Aeon Mall, a prominent Japanese retail conglomerate, unveiled plans to invest in a shopping center in Bien Hoa City.

SMC, a Japanese manufacturing firm, announced its intention to expand operations in Dong Nai.

Japan is the third-largest investor in Dong Nai and the second-largest export market for the province. As of November 2023, Dong Nai had attracted 262 Japanese-invested projects with combined capital of US$5 billion.

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