Shares extended rallies on Tuesday, pulling the VN-Index close to the threshold of 1,240 points, while foreign investors continued to pour capital into the domestic market. 

On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index gained nearly 13.3 points, or 1.09 per cent, to 1,237.46 points. It had increased more than 12 points in the previous session. 

Breadth of the market remained in the positive territory as 238 stocks ticked up while 73 declined. Liquidity was higher than Monday's trade, up 10 per cent to nearly VNĐ23.1 trillion (US$936 million). This was equal to a trading volume of over 986.8 million shares. 

The 30 biggest stocks tracker VN30-Index also increased 14.6 points, or 1.18 per cent, to 1,247.91 points. In the VN30 basket, 21 ticker symbol inched higher, while four edged down and five ended flat. 

In the short-term, Saigon - Hanoi Securities JSC (SHS) said: "Although the VN-Index has recovered, we believe that  it will face challenges in surpassing the significant resistance level of 1,250 points. Consequently, we anticipate continued market volatility in the upcoming period, characterised by strong sell-offs followed by a prolonged consolidation phase."

Data compiled by a financial website vietstock.vn showed that the leading steel producer, Hòa Phát Group, led the market's uptrend yesterday. The company's shares jumped nearly 5.4 per cent. Other steel producers also posted strong performances with Hoa Sen Group (HSG) up 1.78 per cent, Nam Kim Group (NKG) climbed nearly 1.7 per cent, Tiến Lên Steel Group (TLH) rose 2.4 per cent, Pomina Steel Corporation (POM) increased 1.3 per cent. 

Other contributors to the bullish trend were Vietcombank (VCB), Vinhomes (VHM), PV Gas (GAS), Vietinbank (CTG), Techcombank (TCB) and Vingroup (VIC). All the stocks gained at least 1.2 per cent. 

The HNX-Index on the Hà Nội Stock Exchange (HNX) also ticked higher on Tuesday to 235.38 points, up 2.52 points, or 1.08 per cent. 

Investors poured nearly VNĐ2 trillion on the northern bourse, equivalent to a trading volume of 97.6 million shares. 

Also supporting the bullish sentiment, foreign investors continued to net buy VNĐ75.8 billion on both main exchanges. Of which, they net bought VNĐ43.73 billion on HoSE and over VNĐ32.07 billion on HNX. 

Extra 5,000 ha of land allocated for social housing projects

The Ministry of Construction has announced the country’s land area for social housing development projects now totals 8,390 hectares, an increase of 5,000 hectares since 2020.

As part of the national plan to construct a minimum of one million social houses for low-income earners and workers between 2021 and 2030, nearly 1,250 land locations across the country, covering a combined area of 8,390 hectares, have been earmarked for social housing development, announced the ministry.

Leading the charge in land allocation for social housing development is Dong Nai, dedicating 1,060 hectares. Following closely, HCMC and Long An have allocated 580 and 470 hectares, respectively. Haiphong and Hanoi are also significant contributors, designating 470 and 410 hectares, respectively, for housing projects for workers and low-income earners.

According to reports from various localities, there are currently 499 social housing projects underway nationwide, set to provide around 411,250 apartment units. Among these, 71 projects have been completed, offering 37,868 units for occupancy.

The country has started construction on 127 projects, with over 300 projects securing approval for investment policy.

Of notable mention are the localities making substantial strides in social housing development, including Bac Ninh with 15 projects, Thanh Hoa with nine projects, Dong Nai with eight projects, Hai Phong with seven projects, and Bac Giang with five projects.

Vietnam, Bulgaria foster cooperation in new areas

Minister of Industry and Trade Nguyen Hong Dien has proposed that Vietnam and Bulgaria enhance discussions to boost cooperation in agriculture, chemicals and pharmaceuticals while exploring joint development in foundational industries like materials, manufacturing and processing, and renewable energy.

Dien made the proposal while hosting a reception for Bulgarian Minister of Economy and Industry Bogdan Bogdanov on the sidelines of the World Trade Organisation (WTO)’s 13th Ministerial Conference in the United Arab Emirates (UAE), reported the Vietnamese Ministry of Industry and Trade.

Noting the positive impact of the EU-Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement (EVIPA), along with the concerted efforts of the two countries’ legislatures, governments and businesses, he expressed his belief that bilateral trade and investment will keep growing robustly.

To further boost trade and investment ties, Dien highlighted the importance of maintaining the effective implementation of the Inter-Governmental Committee for Economic, Scientific and Technical Cooperation mechanism, aimed at addressing obstacles and identifying new cooperation goals and areas.

In his view, both sides should collaborate to develop breakthrough sectors aligned with international trends such as green technology, renewable energy, digital economy and e-commerce.

Bogdanov, for his part, wants to advance cooperation with Vietnam across various sectors, particularly in economy, trade and investment, with the aim of lifting two-way trade and create favourable conditions for firms to invest in each other's market, especially in agriculture, pharmaceuticals, mining, energy, and others.

He vowed to work closely with the Vietnamese Ministry of Industry and Trade and relevant domestic agencies to promote exchanges on collaborative contents of mutual interest, and successfully hold the 24th session of the Inter-Governmental Committee for Economic, Scientific and Technical Cooperation in the capital city of Sofia, Bulgaria, later this year.

In 2023, two-way trade hit 211.4 million USD, up 3.7% year on year. While Vietnam's exports to Bulgaria saw a slight annual decline of 0.4%, reaching 140.5 million USD, imports rose by 13% year-on-year, totaling 70.9 million USD.

685 investors accuse Trinh Van Quyet, seek compensation

During the investigation, the Investigation Police Agency of the Ministry of Public Security (C01) has identified a lecturer at the National Defense Academy who is allegedly involved in wrongdoings related to the Trinh Van Quyet case.

C01 has identified that among those who assisted Quyet and his accomplices in manipulating the stock market and committing asset misappropriation, there is a lecturer from the National Defense Academy under the Ministry of National Defense. As a result, the case has been separated, and the files have been transferred to the investigative agency of the Ministry of National Defense for further investigation under its jurisdiction.

Particularly, among the eight additional investigation requests, the Supreme People's Procuracy recommends separating the actions of the suspect Tran Van Toan, a military personnel involved in the fraudulent appropriation of assets of Trinh Van Quyet, and transferring the case to the Criminal Investigative Department of the Ministry of National Defense and the Central Military Procuracy for handling within their jurisdiction.

Tran Van Toan, residing in Co Nhue No.2 Ward, Bac Tu Liem District, Hanoi, is a lecturer at the Air Defense - Air Force Faculty within the National Defense Academy under the Ministry of National Defense.

Additionally, during the case resolution process, C01 received petitions from 685 investors accusing defendant Quyet and his accomplices of market manipulation. These investors also requested compensation for damages related to six FLC stock codes. C01 has classified these petitions for further resolution.

Accordingly, it has been determined that investors who bought AMD, ART, HAI, GAB, and FLC stocks lack grounds for consideration and resolution due to the absence of evidence establishing damages caused by the market manipulation activities of Trinh Van Quyet and his accomplices regarding these five stock codes, as concluded by the Ministry of Finance.

However, regarding investors who purchased ROS stocks, C01 identified this group as victims in the asset misappropriation fraud case at Faros. Regarding the 126 petitions from individuals accusing legal violations by corporate entities such as FLC Group, FLC Quy Nhon Golf and Resort Joint Stock Company, and the accused Trinh Van Quyet, C01 has classified and transferred them to local investigative authorities for resolution within their jurisdiction.

C01 disclosed that among the 44 petitions filed by 33 individuals who entered into contracts to purchase bonds issued by FLC Group in December 2021 at a price of VND10,000 per bond with an annual interest rate of 12 percent, there are allegations against National Citizen Bank (NCB).

The accusations include failure to verify professional securities investors before selling bonds and selling bonds to ineligible recipients. Furthermore, FLC Group is accused of misusing the proceeds from bond sales for purposes other than their intended use.

C01 has determined that the bond purchase from FLC Group constitutes a civil dispute. In the event that the parties cannot come to an agreement, they have the option to initiate legal proceedings in court for resolution in accordance with regulations.

China maintains place as largest provider of goods to Vietnam

China continued to be the largest provider of goods to Vietnam among the seven leading import markets with a turnover of over US$1 billion in January, according to figures given by the General Department of Vietnam Customs.      

Specifically, the country spent up to US$11.88 billion importing goods from China, representing a sharp rise of 65% against the same period from last year.

Major imported items from the market include machinery, equipment, spare parts, computers, electronic products and components, as well as iron and steel of all kinds and products.

The remaining import markets with a turnover of over US$1 billion include the Republic of Korea with US$4.19 billion, up 7.3%; ASEAN with US$ 3.62 billion, up 20.2%; Japan with US$1.95 billion, up 16.4%; Taiwan (China) with US$1.94 billion, up 32%; the EU with US$1.31 billion, up 28.3%; and the United States with US$1.24 billion, up 33% against the same period from last year.

Statistics indicate that Vietnam spent some US$30.9 billion importing goods in January, up US$7.9 billion against the same period from last year.

Most notably, Vietnam moved to increase imports of items such as computers, along with electronic products and components, with turnover reaching US$8.56 billion, marking an increase of US$2 billion.

Furthermore, the nation imported 7.51 million tonnes of fuel including coal, crude oil, petroleum of all kinds, and liquefied petroleum gas, with a turnover of US$2.28 billion, up 90% in volume and 11% in value.

Vietnam automobile sales fall by 50 percent

The Vietnam Automobile Manufacturers’ Association (VAMA) has just announced their sales report for the first month of 2024 which showed a sharp 50 percent drop on month.

According to VAMA’s report, their members sold 19,243 units in January 2024, which was down by 50 percent against the figure of December 2023 and up 11 percent compared to the same period last year.

Of the sold automobiles, 14,745 units were passenger cars; 4,390 units were commercial vehicles, and 108 units were special-purpose vehicles. Passenger car sales showed a fall of 54 percent while commercial vehicles fell by 31.50 percent and special-purpose vehicles down by 46 percent against last December's figures.

CKD (vehicles that are shipped in parts and assembled at the dealership or factory) volume was 9,783 units, down 59 percent versus last December and completely built units (CBU) stood at 9,460 units, down 36 percent.

Toyota and Hyundai reported the biggest falls of 70 percent and 68 percent, respectively during the period with Toyota selling only 2,344 units and Hyundai 3,569 units. Some others seeing sales falling by between 50-60 percent included Mitsubishi with 1,793 units, Ford 2,671, Kia 2,369, and Mazda 1,972.

Those were disappointing figures as both car makers and agents said that they had expected a high sales volume ahead of the Tet Lunar New Year holiday.

Outstanding loans at HCMC banks plummet in early 2024

The demand for loans in HCMC has remained woefully low, with total outstanding loans declining in the year to date.

In January, total outstanding loans in the banking system in the city fell by 0.93% against the previous month and 9.27% compared to the same period last year, at over VND3.5 quadrillion, according to the HCMC branch of the State Bank of Vietnam (SBV).

This decline surpasses both the 0.48% decrease recorded during the same period last year and the nation’s average of 0.6%.

Nguyen Duc Lenh, deputy director of the SBV HCMC Branch, attributed the bigger fall primarily to seasonal factors. However, he pointed to the weaker borrowing demand and the economy’s limited capacity to absorb new investments as contributing factors.

Businesses increased their borrowing in the last quarter of 2023, especially to support holiday production and sales. However, this surge is expected to be temporary, as these loans typically have short terms and are repaid around the Lunar New Year.

Actual data for January showed a 2.32% decrease in short-term outstanding loans in HCMC, while medium and long-term loans continued to increase by 0.35%.

Encouraged by positive indicators such as rising manufacturing orders, and an improved labor market, the city’s banking sector is weighing more lending rate cuts. Lenh said these adjustments would be made based on each bank’s financial capacity.

Australia supplies most wheat to Vietnamese market in January

Australia continued to be the leading wheat supply to the Vietnamese market, accounting for 40.3% of the total volume and 44.4% of the country's total wheat import turnover, reaching 215,823 tonnes, equivalent to nearly US$69.39 million, according to data given by the General Department of Customs.      

This was followed by the Brazilian market, accounting for over 26% of the total volume and 23% of the total turnover, reaching 139,621 tonnes, equivalent to nearly US$36.06 million. The Ukrainian market ranked third, reaching 92,731 tonnes with 24.44 million.

Most notably, Vietnamese imports from the United States made up only 9% of the total volume and 10.4% of the total turnover, hitting 48,397 tonnes, equivalent to over US$16.18 million at an average price of US$334.3 per tonne.

This marked a sharp increase of 2,135% in volume and 2,102% in turnover compared to December, 2023.

In January, the country imported 535,349 tons of wheat, equivalent to US$156.37 million , down 23.6% in volume and 20.4% in turnover but up 4. 2% in price compared to December 2023.

SSI names new deputy general director

SSI Securities Corporation (HOSE: SSI) has announced the appointment of Nguyen Duc Thong as deputy general director, effective from March 1.

Born in 1988, Thong has eight years’ experience in major financial institutions such as Goldman Sachs and Morgan Stanley. Thong served as deputy director of quantitative investment strategy at Morgan Stanley.

He joined SSI in 2019 as director of derivatives trading. During his tenure, he has made substantial contributions to the company’s growth, particularly in revenue generation from new products and services.

Vietnam-China pilot for automatic customs clearance

The standout feature of this smart border gate project is the autonomous and unmanned container transport vehicles crossing the border can undergo 24-hour customs clearance, with a capacity of up to 2,800 containers per day.

Currently, customs clearance and container transport operations in Lang Son Province are still being conducted using traditional methods.
Information from Lang Son Province indicates that on the afternoon of February 25, the Secretary of the Lang Son Provincial Party Committee and a working delegation conducted an on-site survey of the construction of the pilot smart border gate of Guangxi Province, China, on the dedicated transportation route at the Huu Nghi International Border Gate (Lang Son, Vietnam) - Huu Nghi Quan (Guangxi, China).

Concurrently, they surveyed the processing, manufacturing and packaging activities of agricultural products imported from Vietnam into Guangxi, China, at the Heze Town Industrial Zone, Pingxiang City, Guangxi Province, China.

The Huu Nghi (Vietnam) - Huu Nghi Quan (China) Smart Border Gate project is implemented by the Government of the Guangxi Zhuang Autonomous Region, China, based on satellite positioning and 5G technology. This border gate utilizes automated guided vehicles (AGV) to transport container trucks, automated crane equipment, and smart map checking systems and allows for 24/7 unmanned automatic customs clearance.

According to China's proposed plan regarding the location and construction of the smart border gate project between China and Vietnam, the total operating distance of unmanned autonomous vehicles crossing the border is approximately 3.6km, with 3.1km on the Chinese side and over 500m on the Vietnamese side.

It is estimated that upon completion of this smart border gate, the capacity for customs clearance of imported and exported goods will reach up to 2,800 containers per day, an increase of approximately 1,600-1,800 containers compared to traditional customs clearance methods.

Viet Nam’s trade with ASEAN up 35% in January

Viet Nam’s trade value with other ASEAN Member States saw a year-on-year increase of 35 percent in January, reaching US$6.81 billion, statistics of the General Department of Customs showed.

During the month, Viet Nam's exports to the bloc hit US$3.19 billion, up 45 percent and making up 9.2 percent of the nation's total export value.

Within ASEAN, Thailand continued the biggest importer of Viet Nam's commodities with US$734 million, accounting for 22 percent and up 31.6 percent.

It was followed by Indonesia US$562 million, up 59 percent, the Philippines US$498 million, up 71 percent, Cambodia US$448 million, up 17 percent, Malaysia US$464 million, up 73 percent and Singapore US$397 million, up 36 percent.

Remarkably, in the first month of the year, Viet Nam's exports to Laos recorded a remarkable growth of 104 percent, achieving US$56 million.

Meanwhile, the nation spent US$3.62 billion in imports from the bloc, up 28 percent and making up 11.7 percent of the country's total import value.

In January, Viet Nam reported a trade deficit of US$430 million with other countries in ASEAN.

Last year, Viet Nam's trade value with ASEAN attained US$73.4 billion. The country's exports and imports from the bloc were estimated at US$32.5 billion and US$40.8 billion, down 4.5 percent and 13.4 percent, respectively.

Consultants propose eight new rail lines departing from HCMC

A consortium led by TEDI SOUTH and CCTDI has presented a plan to integrate eight new rail lines into HCMC’s railway development strategy, which will connect the southern city with neighboring provinces to boost transportation connectivity.

The Vietnam Railway Authority, under the Ministry of Transport, is currently soliciting feedback from relevant stakeholders over the plan.

The proposed railways include Trang Bom-Saigon-Tan Kien; Bien Hoa-Vung Tau; HCMC-Loc Ninh; HCMC-Can Tho; a section of the North-South Express Railway linking Thu Thiem and Long Thanh International Airport; Thu Thiem-Long Thanh; HCMC-Tay Ninh; and a rail line passing through HCMC to Hiep Phuoc and Long An ports.

The new railways would be constructed to improve connectivity with major seaports and airports. This strategic development is expected to facilitate functional transformations of key national railway routes within the city, including a section of the North-South Express Railway from Nha Trang to HCMC, the Bien Hoa-Vung Tau section connecting with Cai Mep-Thi Vai Port, and HCMC-Can Tho, according to the consulting consortium.

Upon completion, the expanded railway network would significantly enhance safety, efficiency, and connectivity across various railway routes. Moreover, it would foster seamless integration with other modes of transportation and key economic regions in the southern region and nationwide.

The existing Hanoi-HCMC railway would undergo extensive upgrade and renovation to ensure operational safety and enhance its role in passenger and freight transportation.

SOEs urged to boost business efficiency

Prime Minister Pham Minh Chinh has urged State-owned enterprises (SOEs) to reform governance, improve production and business efficiency, and promote development investment.

The Government chief also tasked SOEs to fruitfully and efficiently implement the plan on enterprise restructuring for the 2021 - 2025 period, their development strategies, annual and five-year production, business, and investment plans.

National key projects in important fields must be accelerated to create momentum for sectors and the entire economy to grow, carry out timely capital disbursement to accelerate investment projects, and consider increasing investment in innovation and emerging sectors.

The enterprises were asked to prioritize resources for their core business fields, address the scattering and ineffectiveness of investment, improve the innovation capacity, reform and align their corporate governance models with international practices, re-organize apparatuses, enhance competitiveness.

Last year, SOEs reported nearly VND 1,66 quadrillion (US$67.1 billion) of revenue and their pre-tax profit around VND 125.8 quadrillion, 4 percent and 8 percent higher than the respective targets.

They also contributed about VND 166 quadrillion to the state budget, 8 percent higher than the target.

SOEs have increasingly shown their leading role in important and essential sectors of the economy, helping stabilize the macro-economy, control inflation, boost growth, guarantee major economic balances, and promote socio-economic development and national defense.

However, some SOEs have yet to fully capitalize on the state resources, capital, and assets assigned to them or meet investment disbursement targets; some posted losses; their competitiveness, science - technology application, innovation, and digital transformation remain limited; and corporate governance reform remains modest.

Tea exports earn US$21 million in first month of 2024

Vietnam exported 12,000 tonnes of tea worth more than US$21 million in January, representing a surge of 85% in both volume and value in comparison to the same period from last year.

According to the latest figures released by the General Department of Vietnam Customs, Pakistan remained the country’s largest tea importer during the reviewed period, having purchased over 4,500 tonnes worth 9.2 million. It was followed by Taiwan (China), the United States, and Poland.

The Vietnamese Tea Association (VITAS) said that the average export prices to some key markets in January reached US$1,300 to US$1,600 per tonne. However, in several markets, such as Germany, the average export prices are much higher, reaching US$7,579 per tonne.

In order to increase tea export value in the year ahead, VITAS recommended that Vietnamese businesses need to facilitate the application of advanced technology, as well as improving trade promotion activities by increasing direct meetings with foreign buyers and diversifying the types of Vietnamese tea booths at international exhibitions.

Trade surplus touches US$4.1 billion by mid-February

As of February 15, Viet Nam's total trade with the rest of the world hit US$84.74 billion, of which export value stood at US$ 44.42 billion.

As such, the Southeast Asian country ran a trade surplus of US$4.1 billion in the reviewed period, according to the General Department of Viet Nam Customs. 

In the first half of February, total trade turnover was estimated at US$19.3 billion, a sharp decline in comparison with the first half of January due to Tet holiday which falls on February 8-14.

Specifically, export turnover was estimated at US$10 billion, seeing three commodities raking more than US$1 billion each, including computers, electronic products and spare parts with US$1.86 billion, mobiles and spare parts with US$1.6 billion, machines, equipment and spare part with US$1.18 billion. Meanwhile, import turnover valued US$9.4 billion.

With a positive economic outlook, the Ministry of Industry and Trade aims to increase exports by 6 percent in 2024, running a trade surplus for nine years in a row, estimated at US$15 billion.

Power industry strives to ensure adequate electricity supply in dry season

After the Lunar New Year, temperatures have begun to rise in the Southern region. Alongside seasonal weather changes, there's growing concern about power outages causing disruptions in the lives of residents in certain areas of Ho Chi Minh City.

On February 22, Binh Chanh Power Company notified L.V.T., residing in Block D of the Him Lam residential area in Binh Chanh District, about a temporary power interruption from 12:48 p.m. to 2:48 p.m. due to a grid malfunction. L.V.T. expressed frustration, as the power outage occurred early in the hot season, causing significant disruption to household activities. Additionally, work at the office was affected due to internet downtime.

In response to the situation, a customer service hotline representative from the HCMC Power Corporation (EVNHCMC) explained that the notification was issued to residents of the Him Lam residential area by Binh Chanh Power Company due to a fire incident in the nearby vicinity. When asked about the specific location of the fire, the customer service representative requested the caller’s name and phone number in order to provide an answer later.

Likewise, the Management Board of Giai Viet Apartment Building in District 8 notified residents that Cho Lon Power Company would be cutting electricity in the apartment complex to carry out significant repairs to the Busway system. The power outage was scheduled from 8:30 a.m. to 11:30 a.m. on February 23. Residents were upset by the inconvenience during the hot weather, especially with elevator operations also being suspended.

Power outages have also affected residents at Thanh Da apartment complex in Binh Thanh District. Nguyen Thuy, a resident there, lamented, “On the evening of February 22, while I was blow-drying my hair, the power suddenly went out in my apartment. Throughout the night of February 22, I had to rely on a hand fan and wait until the following morning for the electrician to inspect and repair the circuit breaker.” 

Speaking to SGGP Newspaper, Mr. Bui Trung Kien, Deputy General Director of EVNHCMC, explained that power outages in the Him Lam and Giai Viet apartment complexes are normal occurrences during this period. During maintenance and improvement works on the electrical infrastructure in residential areas, localized power interruptions occur at specified times. He reassured that the city's power grid is currently functioning normally.

To ensure an adequate electricity supply during this year's dry and hot season, Vietnam Electricity Group (EVN) leadership chaired a meeting on February 20 to implement plans for electricity provision and operation of the national power system from March to July, the peak months of the dry and hot season. EVN leaders instructed the five power corporations (Northern, Central, Southern, Hanoi, and HCMC) to enhance the quality of load forecasting and management and calculate the mobilization of electricity sources from diesel generators. Northern coal-fired power plants must guarantee unit availability and reliability, with no incidents permitted during the dry season's peak months. Units are required to complete distribution grid repair work by March 31, 2024.

Prime Minister Pham Minh Chinh issued Directive No.05/CT-TTg on February 14, 2024, regarding the assurance of electricity supply and the provision of coal and gas for electricity production in the coming time. In this directive, the Prime Minister requests the Chairman of EVN to coordinate with the National Load Dispatch Center in developing plans and operational methods for the national power system to ensure electricity supply, particularly by emphasizing backup power sources, hydroelectric availability, and sufficient fuel for thermal power plants to meet peak demand during the dry season each year. Additionally, the directive calls for the implementation of electricity-saving measures across all sectors.

Mr. Le Dinh Quyet, Deputy Head of the Forecasting Department of the Southern Region Hydro-Meteorological Center, reported that in the first half of February, HCMC experienced an extensive heatwave, with temperatures peaking above 36 degrees Celsius in the city center. Actual perceived temperatures in urban areas were even higher due to reflections from roads, buildings, and concrete. The forecast suggests that HCMC and the Southern region will continue to endure prolonged wide-spread heatwaves, particularly in March and April, with average temperatures higher than in previous years. The highest temperatures during this year's heatwave season are predicted to reach around 39-40 degrees Celsius.

Enterprises hasten production after holidays, signaling recovery in 2024

Factories are hastening production from the first months of this year with improvements in orders coupled with tailwinds from improved consumption which are creating optimism for economic recovery after a long difficult period.

Unlike what happened in 2023, the garment and textile industry is seeing positive signals.

Vinatex Đà Nẵng returned to work right after the Tết Lunar New Year Holiday. The company’s director Nguyễn Tiếp Hiệp said they now had enough orders to ensure jobs for workers to the end of July, adding that the company would increase searches for orders, recruit more workers and increase incomes by VNĐ1-2 million per employee per month this year.

Simexco Đắk Lắk is hastening production and striving to complete 500 containers for export, mainly coffee, in two weeks after the traditional holiday. Lê Thanh Sơn, the company’s director said that the company targeted to export 125,000 tonnes of coffee this year.

Lộc Trời Group has also won a bid to export 60,000 tonnes of rice to Indonesia. The group has received export orders for the first half of this year.

Industrial production increased by 18.3 per cent in January. Export jumped by 42 per cent. These are positive early signals, Minister of Industry and Trade Phạm Hồng Diên said. Still, he added that the improvement is largely dependent on global political and economic developments.

According to VinaCapital chief economist Michael Kokalari, production accounted for nearly 25 per cent of Việt Nam’s gross domestic product (GDP), meaning that improved production will accelerate GDP growth.

Vietnamese economy will be boosted by increased production and higher consumption this year, thanks to improvements in employment in the manufacturing sector. Consumer confidence and domestic demand, which were weak in 2023 due to layoffs and real estate industry problems, will recover significantly.

Although consumer spending is not expected to grow strongly in the first quarter, it will be stronger in the latter half of this year.

Gabor Fluit, Chairman of the European Chamber of Commerce in Việt Nam (EuroCham), said that Việt Nam had emerged as a leading destination for investments, signalling the economic recovery on a wide scale. The prospect was promising but it would still require cautious observation, he said.

The business confidence index is still below average and more than one third of enterprises expected inefficient operation.

Minister of Planning and Investment Nguyễn Chí Dũng said risks were forecast to remain in 2024 from the world political and economic environment which would cloud Việt Nam’s economic recovery prospect.

The situation required prompt response and adaptation to take advantage of opportunities for breakthrough development and fuel growth momentum such as green economy, green growth, digital economy and circular economy in order to enhance internal capacity and economic resilience, he said.

He emphasised that the priorities should be on accelerating economic recovery, stabilising macroeconomic situation, controlling inflation and ensuring major balances. The focus would be placed on three drivers, including investment, export and consumption.

He said that it was necessary to keep a close watch on global and domestic developments to have timely response measures, besides continuing the implementation of support policies such as tax reductions and exemptions.

In addition, appropriate credit policies were needed to provide capital for the economy, direct capital flow into production and business, prioritised sectors and those which create growth momentum.

Credit institutions would be encouraged to cut costs and simplify lending procedures to further reduce rates and improve access to credit.

Tô Hoài Nam, Deputy President of Việt Nam Association of Small and Medium Sized Enterprises, said enterprises were optimistic about the economic recovery this year on the solutions of improving the business environment, enhancing national competitiveness and eliminating business barriers.

According to Jonathan Pincus, chief economist of the United Nations Development Programme (UNDP) in Việt Nam, the GDP growth target of over 6 per cent is achievable. Exports will remain the main driving force this year.

He added that many foreign investors were showing interest in investing in Việt Nam, especially in high-tech industries such as semiconductors and computer equipment which were positive signs. These investments would create significant momentum for growth when realised, he said. 

Businesses not interested in investing in energy-saving technologies

Despite huge benefits produced from investment in energy-saving technology also known as green technology, neither banks and businesses are interested in pouring money into investing in such technology.

The Ministry of Industry and Trade and the World Bank today co-organized a seminar on the project to promote lending for energy efficiency projects in the country’s industry sector.

The project has been implemented from March 2022 to January 2026 nationwide. However, at today’s seminar, General Director Ngo Thu Ha of Saigon - Hanoi Commercial Joint Stock Bank (SHB) as well as many domestic and foreign experts moaned about difficulties and obstacles in some energy-saving projects. Particularly, the bank has financed technological equipment, but these technological equipment are only a part of the enterprise's system, so the bank must calculate and evaluate investment efficiency and payback time.

At the same time, due to reduced production and business efficiency, many businesses are reluctant to invest in innovative energy-saving technology, even though the benefits of conversion are huge.

Before, the World Bank Treasury designed the financial structure of a US$100 million credit line to Vietnam to help local financial institutions set up energy efficiency lending as a business line.

Hot weather spurs demand for cooling products

Despite not fully transitioning into the hot season, the soaring temperatures have spiked demand for cooling products, particularly in the mid-range segment with sharp discounts.

At some electronics stores like Nguyen Kim, Thien Nam Hoa, and Cho Lon, there has been a gradual uptick in both in-store foot traffic and online customer engagement compared to before.

Numerous imported products from Thailand, South Korea, and Malaysia are currently on attractive discounts, drawing customers to Nguyen Kim Electronics Store at GO! Truong Chinh Supermarket in Tan Phu District over the weekends.

For instance, the Reetech air conditioner, originating from Thailand, is now priced at VND5.39 million, reduced by VND1.6 million, while the Kangaroo evaporative cooler is available at nearly 50 percent off, priced at VND2.49 million. Similarly, Thien Nam Hoa Electronics Store is offering discounts ranging from 5 to 24 percent on selected electric fan models; Hikawa air conditioners 1-2HP are now discounted by 20 percent, with prices at VND6.19 million for 1HP model and VND12.5 million for 2HP model.

Le Van Toan, living in Tan Phu District, mentioned that his household only has two small fans. As several supermarkets offer significant discounts, he has decided to purchase an evaporative cooler priced at nearly VND1.8 million.

According to supermarket representatives, many customers now prefer to browse technical specifications, prices, discounts, and warranty details on the website before finalizing their purchases via hotline or online payment. As a result, visiting the physical store has become less crucial.

The demand for vegetables, fruits, and sunscreen products after Tet has skyrocketed compared to regular days. Nguyen Vy, the owner of a beverage stall in a small alley on Nguyen Thi Minh Khai Street, District 1, shared that she used to sell 50-60 glasses of orange juice a day, but she now sells nearly 100 glasses.

Similarly, Lan Phuong, who operates an online cosmetics and fashion clothing business in District 10, happily revealed that sunscreen orders increased by 15-25 percent right after Tet, focusing on products from Thailand, Japan, and France.

Information from wholesale markets across Ho Chi Minh City indicates that after February 24 (the first full-moon of the lunar year), the influx of goods will be stable like the pre-Tet levels. Prices at Thu Duc wholesale market stand at VND13,000 per kg for king oranges, VND18,000 per kg for green-skinned pomelos, and VND15,000 per kg for Can Tho star apples. Daily arrivals of fruits at Thu Duc and Hoc Mon wholesale markets surpass 820 tons and 320 tons, respectively. Retail fruit prices exceed wholesale rates by VND5,000-15,000 per kg, varying by product.

Data from the e-commerce platform Metric shows that from January 1, 2024 to now, the combined revenue of Shopee and TikTok Shop amounted to VND28.7 trillion, with 317.6 million products sold across over 326,000 shops, including various electronics and electrical items.

The peak revenue for these platforms occurred one week before the Lunar New Year, from January 1 to 7, totaling VND4.2 trillion, as consumers were actively engaged in Tet shopping.

Container cargo throughput at Vietnam’s seaports rises in Jan-Feb

A total of 4.05 million twenty-foot equivalent units (TEUs) of container cargo were put through the seaports nationwide in the first two months of this year, up by 27% versus the year-ago period, according to the Vietnam Maritime Administration.

Import volume rose by 20% year-on-year to 1.3 million TEUs while export volume increased by 19% compared to the same period last year to 1.25 million TEUs.

Container throughput at seaports in major cities and provinces such as Haiphong, HCMC, and Vung Tau grew by 40-60% over the corresponding period. Meanwhile, other provinces like Danang, Dong Nai, Nghe An, Dong Thap, and Can Tho saw growth of 49-144%.

Data from the Vietnam Maritime Administration under the Ministry of Transport showed that the total volume of goods through seaports in the first two months of 2024 reached an estimated 111.6 million tons, up 8% compared to the same period last year.

HCMC to build 35,000 social housing apartments in 2021-2025

The People's Committee of HCMC has just issued a plan to implement Resolution No. 180/NQ-HDND dated December 8, 2023, of the municipal People's Council on carrying out social housing projects in the city.

According to the plan, the HCMC Department of Construction will coordinate with relevant departments, the People’s Committees of Thu Duc City and districts to accelerate the implementation of the social housing development plan for the 2021-2025 period to reach a goal of developing construction floor area of around 2.5 million square meters, equivalent to about 35,000 apartments.

The plan also focuses on evaluating the legality, progress, and feasibility of social housing projects in the city to identify key social housing projects that need to be developed in the 2021-2025 period and the 2026-2030 period.

In addition, the HCMC Department of Construction has been asked to monitor 20 percent of land allocation for social housing construction in commercial housing projects that were previously approved.

The Department of Natural Resources and Environment of the city has been assigned to cooperate with relevant units to inspect and revoke land due to violations of land laws. It is applied for cases that were allocated land by the government or leased land to implement their investment projects but they have seen slow implementation, no implementation, and land use for improper purposes.

The plan pays attention to social housing projects using 20 percent of land funds from commercial housing projects or urban areas, revoking 20 percent of allocated land funds from projects with delays in the implementation of construction, and assigning other investors to carry out the projects to prevent waste in land use.

Additionally, the HCMC Department of Natural Resources and Environment will review and promulgate specific solutions and procedures to shorten administrative procedures and accelerate the process of granting certificates of land use rights, ownership of houses, and other assets attached to land for homebuyers in social housing projects.

Vietnam’s top tennis player triumphs at M15 event in Thailand

Defeating Sander Jong of the Netherlands 2-1 in the men’s singles final of the M15 Nakhon Si Thammarat Tournament 2024 in Thailand on Feb 25, Vietnam's top tennis player Ly Hoang Nam became the champion of the circuit.

This marks Nam's 11th championship title in his career at the Men's Future circuit organized by the International Tennis Federation.

The achievement brought the Vietnamese player, who is world No. 549, 10 bonus points on the Men's Tennis ATP Rankings.

The M15 Nakhon Si Thammarat is part of the ITF World Tennis Tour M15.

CAAV asks airlines to write reports about scarcity of flight tickets

Following complaints that flight tickets for the Tet holidays remained scarce and expensive, the Civil Aviation Authority of Vietnam (CAAV) has just requested airlines to write their reports about this matter.

The Civil Aviation Authority asked Vietnam Airlines, Vietjet Air, Bamboo Airways, Pacific Airlines, and Vietravel Airlines to report on air ticket sales during the Tet holiday ( the Lunar New Year). According to complaints, people have been sometimes unable to buy tickets even though ticket prices are double or triple compared to normal days.

In fact, press agencies have questioned the CAAV about the scarcity of flight tickets many times. The Ministry of Transport has also issued a document requesting the CAAV to coordinate with domestic airlines to check and clarify the news of scarce and unaffordable flight tickets published by press agencies.

However, the CAAV replied that air tickets increased due to increased input costs. Moreover, as per the CAAV’s feedback, the scarcity of air tickets and sharp increases in prices is due to a sudden rise in demand. The CAAV also affirmed that air ticket prices are regulated according to market demand and no airline has been found to sell beyond the price range prescribed by the State.

During the past Tet holiday, people had no choice but to accept buying airline tickets at expensive prices. For example, flight tickets from Ho Chi Minh City to Hanoi during the peak season before the national holiday cost approximately VND4 million (US$162) a trip which is beyond the affordability of most low-income earners.

Similarly, in the days after Tet, it is still difficult to buy tickets for some flights from Hanoi, Chu Lai, and Hue to Ho Chi Minh City and the ticket prices are still high. On their websites, airlines still operate nearly 20-25 flights per day for the Hanoi - Ho Chi Minh City flight route, but tickets are scarce, some airlines even have no seats left.

Therefore, the CAAV has required airlines to report on air ticket sales during the Tet holiday. The inspection, examination, and supervision of air ticket sales during the Tet peak season should have been proactively carried out by the CAAV as soon as the aviation industry entered the peak travel period, instead of waiting for complaints.

Rising rental prices to boost industrial real estate shares this year

Expected higher land rental prices this year will benefit the performance of listed industrial real estate companies and their shares.

The availability of land in industrial parks should remain constrained in 2024 due to challenges in land valuation, the conversion of agricultural land to industrial land through auctions and difficulties in land compensation and resettlement, according to SSI Research.

Currently, several listed industrial park investors have signed Memorandums of Understanding (MoUs) in the second half of 2023 for leasing industrial land to new tenants. As a result, these agreements will be converted into official contracts and recorded as revenue in 2024.

However, there are currently around 34 industrial parks in the process of completing their legal procedures, and seven industrial parks undergoing accelerated land clearance in provinces such as Hai Duong, Thai Nguyen, Thai Binh, Ba Ria - Vung Tau, according to the latest assessment by FPT Securities (FPTS).  

Therefore, the nationwide supply of industrial park land is expected to reach 142,000 hectares in 2024, an increase of 12,000 hectares, or 9% from last year. The expansion will contribute to a significant 36% increase in the available land area for leasing compared to 2023.

On demand side, the northern region is forecast to experience high demand for industrial park land leasing this year, driven by the shift in production facilities, particularly in the electronics and semiconductor sectors, said SSI Research. 

In the southern region, there is also an improvement in the demand for industrial park land from manufacturing companies in textiles, wood, leather shoes, logistics, and the food and beverage industry. 

As the supply is still insufficient, it is expected that the average land rental prices for listed industrial park investors will increase by 15.5% year-on-year in 2024. 

Meanwhile, FPTS said that the rental prices for industrial park land in tier 1 markets are projected to increase by 4% in the North and 7% in the South this year. 

The tier-1 markets in the northern region include Hanoi, Bac Ninh, Hai Duong, Hai Phong and Hung Yen provinces. In the southern region, they encompass Ho Chi Minh City, Binh Duong, Dong Nai, and Long An provinces.

According to the securities firm, the trend of rising industrial park land will persist in the long term, aligning with the Decision on the allocation of targets for national land use planning in the 2021-2030 period and the vision until 2050, as well as the national land use plan for the five-year period of 2021-2025.

Given positive forecasts on industrial park rental prices, several listed companies involved in the sector, such as Kinh Bac City Development Holding Corporation (KBC), IDICO Corporation (IDC), and Sonadezi Chau Duc Shareholding Company (SZC), are poised to benefit.

For KBC, Trang Due 3 Industrial Park, spanning a vast area of 687 hectares in An Lao district of Hai Phong city, will contribute to its overall business performance as early as 2024. Despite the ongoing completion of legal procedures for the project, there are already prospective tenants eagerly awaiting approval to lease the land. 

This is primarily due to the industrial park's advantageous geographic location within Dinh Vu - Cat Hai Economic Zone, which offers more favourable tax incentives.

KBC is also actively advancing the development of Trang Cat Urban Area project, covering nearly 585 hectares in Hai Phong city, with a total estimated development budget of over 11.3 trillion VND (460.3 million USD). The entire land area has already been transferred to the company by the Hai Phong City People's Committee. 

In the fourth quarter of 2023, KBC successfully handed over 10 hectares of land and cleared 108 hectares of remaining land in the Nam Son Hap Linh Industrial Park (Bac Ninh province), as well as delivered 18 hectares of land in Tan Phu Trung Industrial Park (HCM City). 

Additionally, KBC is set to lease out the remaining 22 hectares of land in Quang Chau Industrial Park (Bac Giang province), effectively achieving full occupancy of the industrial park.

Regarding IDC, the company has signed MoUs and lease contracts at Huu Thanh Industrial Park in Long An province since the second half of 2023. The leased area spans 35 hectares, a 35% increase from 2023.

For SZC, despite operating primarily in Chau Duc Industrial Park, the company still has potential for stable business operations for 8-10 more years. With approximately 500 hectares of unleased land and improving infrastructure, there is room for increasing rental prices in the future.

Nevertheless, according to SSI research, industrial real estate companies may encounter difficulties with the implementation of the global minimum tax on January 1, 2024. 

This could lead to a reduction in the tax incentives previously provided to tenants in industrial parks, including a two-year corporate income tax exemption and a 50% tax reduction for the subsequent four years.

Deputy PM welcomes Chinese participation in energy, infrastructure projects

Deputy Prime Minister Tran Hong Ha received General Manager of the Power Construction Corporation of China (PowerChina) Wang Bin in Hanoi on February 27.

The Deputy PM praised the Chinese firm’s fruitful operations along with its application of many advanced technologies around the world, especially in the fields of energy and infrastructure development.

With the Vietnam - China comprehensive strategic cooperative partnership and directions from high-ranking leaders, the two sides hold favourable conditions to develop cross-border transport infrastructure projects to serve economic, investment, and trade activities, he said.

Vietnam and China signed two memoranda of understanding on enhancing cooperation in cross-border railway development, Ha noted, adding that the facilities connecting transport infrastructure will become a symbol of bilateral ties.

Aside from investment and business activities, Chinese enterprises should also increase sharing experience with and transferring technology to Vietnamese partners so as to boost win-win cooperation, he suggested.

Highlighting the “big room” reserved for renewable energy development under Vietnam’s national power development plan for 2021 - 2030, with a vision to 2050, the host official welcomed Chinese enterprises, including PowerChina, taking part in renewable energy projects, and expressed his hope that those projects will become models of fruitful and quality cooperation.

Ha went on to say that he will assign ministries, sectors, and localities to continue assisting PowerChina to seek investment in suitable renewable energy and transport infrastructure projects.

For his part, Wang informed his host of activities of PowerChina in Vietnam, noting the firm has close ties with Vietnamese enterprises in project implementation and manpower training.

He also talked about some of his corporation’s renewable energy projects in China, saying the firm has extensive experience, capacity, and resources for implementing such transport infrastructure projects as expressways and high-speed railway.

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