VIETNAM BUSINESS NEWS JANUARY 17
Electric vehicles to be exempt from registration fee from March
The Government has issued a decree exempting the buyers of electric vehicles from registration fees for three years starting from March 1 to promote the consumption of electric cars in the local market and develop the environmentally-friendly vehicle segment.
In the next two years, the registration fee for electric cars will be half that of fuel-run vehicles with the same number of seats, according to the decree.
Besides, fuel-powered cars with fewer than nine seats are subject to a registration fee of 10% of their value, according to the decree issued on January 15.
The buyers of under-five-seat pickup trucks and vans with a load of less than 950 kilograms must pay a registration fee at 60% of that for under-nine-seat cars.
The decree also regulates that the registration fee for motorcycles is 2%. As for the purchase of motorbikes in cities and towns, the registration fee is 5% of their value.
Meanwhile, the registration fee for locally-assembled or manufactured cars continue to be halved until the end of May.
HCM City industrial parks eye $500m investment in 2022
The HCM City Export Processing and Industrial Zones Authority said the city’s industrial parks and processing zones hope to attract investment worth US$500 million this year.
They attracted $600.79 million last year, well above the target, including foreign investment of $220.26 million, it said.
Hua Quoc Hung, head of the authority (HEPZA), said to achieve the goal, HEPZA would continue to promote investment incentives, strengthen COVID-19 prevention efforts, enhance support for businesses to help them stabilise operations, and step up administrative reform.
Other key targets would include quickly starting the construction of the proposed 668 hectares Pham Van Hai Industrial Park, speeding up land clearance for building the Le Minh Xuan 2 Industrial Park, expanding the Le Minh Xuan IP, Northwest Cu Chi IP, Vinh Loc IP, and Hiep Phuoc third phase, he said.
Tra Vinh: Dong Hai I wind power plant inaugurated
Trung Nam Tra Vinh 1 Wind Power JSC, a member of Trungnam Group, has inaugurated the Dong Hai I Wind Power Plant in Dong Hai commune, Duyen Hai district, the Mekong Delta province of Tra Vinh.
General Director of Trungnam Group Nguyen Tam Tien said at the January 16 ceremony that the first offshore wind power project carried out by the group is opening a path for other projects in the time to come.
Construction of the plant began in early 2021, with a total cost of nearly 5 trillion VND (220 million USD).
With each of the 25 wind power poles having a capacity of 4MW, the project is expected to send about 330 million kWh to the national power grid.
Binh Phuoc grows more organic pepper for export markets
Despite the pandemic and low pepper prices, many households and cooperatives in Bình Phước Province have continued growing pepper and maintained high productivity under sustainable models.
The province has 15,889 hectares of pepper, the main crop of the province, mostly grown in border districts such as Lộc Ninh, Bù Đốp and Hớn Quản, yielding more than 1.8 tonnes per hectare and 24,307 tonnes per year.
Since many farmers have faced difficulties with low output prices and diseases causing pepper plants to die, they have formed cooperatives to grow clean and organic pepper to meet increased market demand.
CAAV allowed to decide domestic flight frequency in upcoming holiday
The Civil Aviation Authority of Vietnam (CAAV) has been allowed to decide on the frequency of domestic flights to meet the travel demand during the upcoming Tet (Lunar New Year) holiday, under a document signed by Deputy Minister of Transport Le Anh Tuan.
The CAAV was requested to ensure traffic safety and order as well as follow COVID-19 prevention and control regulations during the largest and longest festival which always sees a peak of demand as it is an occasion for family reunion.
According to the CAAV, from December 29, 2021 to January 10, 2022, Vietnamese airlines operated 4,480 flights, transporting more than 547,000 passengers with an average occupancy rate of 64 percent.
Reference exchange rate up 3 VND at week’s beginning
The State Bank of Vietnam set the daily reference exchange rate for the US dollars at 23,085 VND/USD on January 17, up 3 VND from the last working day of previous week (January 14).
With the current trading band of +/-3, the ceiling rate applicable to commercial banks during the day is 23,777 VND/USD and the floor rate 22,392 VND/USD.
VinMart officially changes its name to WinMart
WinCommerce, a member of Masan Group, on January 15 held a ceremony to announce its change of the brand name of VinMart retail system into WinMart.
After acquiring WinCommerce, Masan has successfully restructured, improved operational efficiency, launched mini-mall model, meeting a variety of essential needs of consumers. In the mini-mall, there are integrated WinMart , Techcombank, Phúc Long kiosk, Phano pharmaceutical and Reddi mobile network.
WinCommerce has got profitable for the first time in the third quarter of last year, seven quarters after Masan acquired it.
Port cluster fostering national economic growth
Under a plan on developing Vietnam’s seaport network, the Cai Mep - Thi Vai seaport cluster in the southern province of Ba Ria-Vung Tau is to become one of two special seaports in the country - an international gateway and an international trans-shipment port.
Cai Mep International Terminal welcomed the maiden call of the Margrethe Maersk (Denmark) - one of the largest container vessels in the world - on October 25, 2020. It was also the largest container vessel in commercial operation to ever berth in Vietnam.
Ba Ria – Vung Tau has conducted projects to build a logistics centre and develop infrastructure to facilitate transportation between the province and other localities to boost development of the Cai Mep – Thi Vai seaport.
Book on Vietnam-Thailand trade, investment released in Bangkok
A book featuring the Vietnam-Thailand enhanced strategic partnership was released at a ceremony in Bangkok on January 14.
The book was jointly complied by the Commercial Affairs Office at the Vietnamese Embassy in Thailand, and the Thailand-Vietnam Business Council.
Thailand is Vietnam’s largest trading partner in ASEAN and the ninth largest FDI investor, while Vietnam is Thailand’s fifth largest trading partner in the world.
The two countries are also members of many international trade agreements such as the Regional Comprehensive Economic Partnership (RCEP), the ASEAN Trade in Goods Agreement (ATIGA) and the ASEAN Free Trade Area (AFTA).
SeABank to offer over 181.3 million shares to shareholders
Southeast Asia Commercial Joint Stock Bank (SeABank) has received approval for its public offering of over 181.3 million shares to existing shareholders at a price of 15,000 VND (0.66 USD) per share.
The bank is expected to collect 2.72 trillion VND (119.8 million USD) from the issue with a ratio of 12.2633:100 to improve its financial capacity, step up business activities, maintain stable operation and raise charter capital to 16.6 trillion VND (731 million USD).
Shareholders who want to exercise their rights to buy shares must register for the offering no later than January 18, 2022.
Work starts on 2.37-billion-USD Hai Lang LNG power centre in Quang Tri
A groundbreaking ceremony was held on January 15 for the construction of the first phase of Hai Lang liquefied natural gas (LNG) power plant in Hai An commune in the central province of Quang Tri's Hai Lang district.
The project, which spans 120ha, will have a capacity of 1,500 MW and is able to supply 8.25 billion kWh to the national grid each year.
With an investment of 54 trillion VND (2.37 billion USD), the project is invested by a consortium of Vietnam’s conglomerate T&T Group, Korea Gas Corporation (KOGAS), Hanwha Energy Corporation, and Korea Southern Power (KOSPO). It is expected to be put into operation in 2026-2027.
It will include a port capable of handling vessels carrying up to 226,000 cu.m of gas and receiving 1.5 million tonnes of LNG per year.
Viet Nam expects US$1.7 billion in tra fish exports in 2022
Viet Nam's pangasius (tra fish) export turnover is forecast to reach US$1.7 billion this year, up 13 per cent year on year, according to the Viet Nam Association of Seafood Exporters and Producers (VASEP).
The pangasius export market is gradually brightening and is expected to recover this year with companies' adaptive efforts and the State supportive mechanisms, said VASEP general secretary Truong Dinh Hoe.
In 2021, the impact of the pandemic outbreak in the third quarter in Viet Nam caused many difficulties for tra fish production and export.
Hoe said that China was likely to still maintain the largest import market for Vietnamese pangasius in 2022. However, the exports to the market would continue to be affected by COVID-19 as China tightens the control of imported goods.
For the EU market, it will be difficult to have sudden growth in 2022 because it is still affected by the pandemic, according to Hoe.
Vietnamese airlines increase frequency of flights to and from Asian destinations
The Civil Aviation Authority of Viet Nam (CAAV) has decided to increase the frequency of international flights to Japan, Korea, Taipei (China) and Singapore.
In its announcement about regular international flights sent to airlines, the CAAV said that the routes to Japan, Korea, Taipei (China) and Singapore increased to 14 flights per week per route, divided between four airlines including Vietnam Airlines, Vietjet Air, Bamboo Airways and Pacific Airlines.
Specifically, for the Japan routes, Vietnam Airlines (VNA) operates seven flights per week, Vietjet Air (VJA) four, Bamboo Airlines two and Pacific Airlines one.
The frequency of the Korean route is VNA with seven flights, Vietjet with five flights, and the remaining two airlines one flight each.
The routes to Australia, Thailand, Cambodia and Laos will operate 10 flights per week. The routes to China and the US will operate four flights per week.
For routes from France, Germany, UK and Russia, after obtaining the Ministry of Transport (MoT)’s approval, the CAAV will announce its plan.
EU remains highly potential importer of Vietnamese rice
With stable and high demand for specialty rice from Asia, the European Union (EU) remains a highly potential market for rice exporters of Viet Nam.
In 2021, Viet Nam shipped about 60,000 tonnes of rice worth US$41 million to the EU, rising nearly 1 per cent in volume and over 20 per cent in value from the previous year. That included some 40,000 tonnes of fragrant rice worth almost $30 million, up over 9 per cent in volume and nearly 30 per cent in value.
The EU - Viet Nam Free Trade Agreement (EVFTA), which came into force on August 1, 2020, has helped raise prices of the Vietnamese grain by $10 - 20 per tonne, partly making up for the modest increase in volume due to the COVID-19 pandemic.
Citi announces agreement to sell consumer bank to UOB Group
Citi announced it has reached an agreement with UOB Group (UOB) on the acquisition of Citi’s consumer banking franchises in Viet Nam, Indonesia, Malaysia and Thailand.
The transaction includes retail banking and credit card businesses but excludes the bank’s institutional businesses in all four countries. Citi remains committed and focused on serving institutional clients in these countries locally, regionally and globally.
The agreement covers all related Citi staff, with approximately 5,000 consumer bank and supporting employees expected to transfer to UOB upon closure of the proposed transaction. UOB will pay Citi cash consideration for the net assets of the acquired businesses, subject to customary closing adjustments, plus a premium of US$690million.
Hanoi to welcome launch of 26,000 apartment units in 2022: C&W Vietnam
Around 26,000 apartment units are expected to be launched in Ha Noi in 2022, signalling a vibrant outlook for the segment, according to real estate service provider Cushman & Wakefield (C&W) Vietnam.
A survey by C&W Vietnam revealed that the launch of luxurious apartment project The Grand Hanoi at the end of last year, which were sold out in the first offering, has established a new height for the segment’s prices in the capital city.
A number of prestigious developers in the south, such as Masterise Homes, Phu Long and Hung Thinh, have entered Ha Noi’s property market recently. The move is expected to set the scene for the launch of more high-quality units and raise the average price of the market.
Land prices shoot up in HCM City, cause worry
Land prices in HCM City are rising sharply, and experts warn this can have negative consequences on public works and housing supply.
Le Hoang Chau, chairman of the HCM City Real Estate Association (HOREA), said there was inflationary pressure now.
Also, real estate supply and prices, especially in the southern market, could be affected by the recent land auction in the Thu Thiem New Urban Area where four land plots were sold at sky-high prices.
Chau said that land prices in HCM City, especially the central area, had been pushed to new highs, which made it difficult for developers to build housing.
Nova Consumer announces IPO plan
Nova Consumer, a member of NovaGroup, has announced plans for an initial public offering of 10.9 million shares at a minimum price of VND43,462.
The minimum application is for 1,000 shares and the maximum for 5.44 million.
The application period will be from February 7 to 28, and the allotment announcement will be made on March 4.
The IPO is equivalent to 10 per cent of the company’s registered capital of VND1.09 trillion. At the minimum price, Nova Consumer’s pre-IPO value will be over VND4.7 trillion, and it is expected to jump to VND5.2 trillion after the IPO.
Large-cap stocks will return to be the market's leader in 2022
In December 2021, the market benchmark VN-Index could have surpassed 1,498 points if it were not affected by the holiday, Dragon Capital said in a recent report.
Small- and mid-cap stocks have recently risen quite strongly. But the question is whether this is a sign showing investors are gradually shifting back to the large-cap group.
Dragon Capital believes that as the economy returns to normal growth of 6-7 per cent in 2022, good quality large-cap stocks, which reflect macroeconomic growth drivers, will return to the role as market leader.
Viet Nam not only is one of the best growth markets globally in 2021 with a rate of 35.7 per cent, but has also made significant progress in developing the domestic stock market. The market has 63 companies with capitalisation of over US$1 billion. Daily liquidity regularly exceeded the new average of $1 billion, higher than other emerging markets.
Besides, the number of new accounts opened in November has surpassed the total number in the whole of 2019.
Shares to rebound this week but risks remain
The Vietnamese market is forecast to enter a recovery phase this week after a strong correction last week but investors should remain cautious with the market’s risk factors and instability.
On the Ho Chi Minh Stock Exchange (HoSE), the market benchmark VN-Index stayed flat to end Friday at 1,496.02 points.
The index had lost a total of 2.12 per cent last week.
An average of 1.1 billion shares were traded on the southern exchange during each session last week, worth VND33.4 trillion (US$1.47 billion).
The market is likely to remain bullish thanks to the fundamentals of the macro-economy, Q4 business results and cash flow. The approval of the economic recovery support package will help the economy regain its growth momentum.
VinaCapital open-ended funds report outstanding returns in 2021
Open-ended funds from VinaCapital Fund Management Joint Stock Company achieved among the highest returns in their respective categories last year.
They include the Vietnam Equity Special Access Fund (VESAF), VinaWealth Equity Opportunity Fund (VEOF), VinaCapital Insights Balanced Fund (VIBF), and VinaWealth Enhanced Fixed Income Fund (VFF).
VESAF reported a return of 67 per cent, making it the best-performing open-ended equity fund in the market in 2021, a continuation of its leading position in 2020.
Positive prospects for rubber exports to US in 2022
With high export growth recorded in the United States last year, Vietnamese rubber exports to the demanding market are set to continue to witness positive signs this year.
Statistics from the US International Trade Commission indicate that the US imported 1.79 million tonnes of rubber worth US$3.72 billion during the January – November period last year, representing an annual rise of 22.8% in volume and 46.4% in value.
Vietnam represented the 11th largest rubber supplier to the US market with 39,090 tonnes exported worth US$68.83 million, up 82.7% in volume and 122.5% in value.
Its rubber market share as part of total US rubber imports accounted for 2.2% in the reviewed period, marking a slight rise compared to 1.5% seen in the previous year.
High-end segment to continue driving HCM City apartment market, affordable units scarce
The luxury and mid-priced apartment segments will continue to lead the market in 2022, while affordable apartments will remain scarce, according to property consultant DKRA Vietnam Joint Stock Company.
According to the company’s report on the housing market in HCM City and surrounding provinces in 2021, there were 41 apartment projects with about 21,138 units, mostly in HCM City and Binh Duong Province, entering the market. They sold 17,122 units.
In HCM City, supply and demand decreased sharply from 2020 and fell to the lowest levels since 2015.
HCMC shuts down 30 projects in industrial parks
Up to 30 domestic and foreign invested projects in the industrial parks and export processing zones of HCMC were forced to close down amid the negative impact of the Covid-19 pandemic last year.
The HCMC Export Processing and Industrial Zones Authority (HEPZA) suspended nine foreign invested projects worth a total of US$26.32 million and 21 locally invested projects worth more than VND876 billion (US$38.56 million).
Most of them were shut down due to inefficient operations, the negative impact of Covid or the expiration of the land lease.
According to the HEPZA, 15 land lots among 30 of these projects have found new investors.
Dong Nai seeks Govt nod over capital for Long Thanh airport
Dong Nai Province authorities have sought the Government’s approval to use fund from allocated capital for the site clearance, compensation and resettlement work of the Long Thanh International Airport project.
From 2019 to 2021, Dong Nai Province was allocated over VND22.8 trillion to implement the site clearance work of the project, and had disbursed VND18 trillion for the project as of the end of 2021, according to the provincial government.
The province will have to suspend the disbursement this month as the use of the capital has expired, the local media reported.
Licogi 16 leader registers to sell 2 million LCG shares
Bui Duong Hung, Chairman of the Board of Licogi 16 Joint Stock Company (LCG), has registered to sell 2 million LCG shares, which are listed on the Hochiminh Stock Exchange (HoSE), to reduce his ownership at Licogi 16 from 4.17% to 3.02%.
Hung said the sale, which is scheduled for the period from January 19 to February 17, aims to restructure the company’s investment portfolio.
From July 12, 2021 to January 13, 2022, LCG surged 165% from VND8,920 to VND23,650, becoming one of the best performers on HoSE. The stock continued the bullish movement today, as it increased from the reference price of VND23,700 to VND24,100, despite the news of the chairman’s planned stock sale.
Finance Ministry tightens taxation of real estate, online businesses
The Ministry of Finance will tighten control over the taxation of property transactions and online businesses this year.
The ministry sent an official dispatch to the Ministry of Public Security, the Ministry of Justice and the municipal and provincial People’s Committees, asking them to collaborate in preventing tax evasion of property transactions.
This is the second official dispatch on tightening taxation of property transactions that the ministry has issued in just one month.
Trung Luong- My Thuan expressway to officially open to traffic on January 23
An information source of Sai Gon Giai Phong (SGGP) Newspaper disclosed that the Trung Luong- My Thuan expressway will officially open to traffic on January 23.
The final works of guardrail, lighting system installation and rural roads under the construction on the Trung Luong- My Thuan expressway are set to finish.
As for the section connecting Tan Phuoc District to Than Cuu Nghia intersection, the construction unit is pouring soil and stone for the road surface.
The one-way expressway from Ho Chi Minh City to the Mekong Delta localities through this interaction was connected smoothly meanwhile the pathways connecting to interactions of Cai Lay and Cai Be have not opened to traffic.
US$219 million offshore wind power plant put into operation in Tra Vinh
Trung Nam Tra Vinh 1 Wind Power Company (Trungnam Group) inaugurated and put into operation the Dong Hai 1 wind power plant, Duyen Hai District in the Mekong Delta Province of Tra Vinh. The project has a total investment of nearly VND5,000 billion (US$ 219,751,524).
Dong Hai 1 wind power plant has a scale of 25 wind towers with each turbine having a capacity of 4MW, reaching a total capacity of 100MW.
To build 25 wind towers, the construction company used a 130m high crane and a lifting force of more than 1,200 tons to assemble 75 wind vanes into the pillars at a height of 105m in the middle of the sea.
Viet Nam expects to have 28 airports by 2030
Viet Nam expects to have 28 airports, including 14 international ones, by 2030, according a draft master plan on developing airports nationwide for the 2021-2030 period, with a vision until 2050.
Under the plan, which has been submitted to Prime Minister Pham Minh Chinh for approval, the airports will serve about 275.9 million passengers and handle some 4.1 million tons of cargo a year.
The Ministry of Transport will prioritise investments in some major airports like Noi Bai in Ha Noi and Tan Son Nhat in Ho Chi Minh City, upgrade and effectively utilise the present 22 airports and build six others, namely Long Thanh, Na San, Lai Chau, Sa Pa, Quang Ninh and Phan Thiet.
By 2050, the number of airports nationwide is expected to increase to 31, including 14 international ones.
Hanoi's housing market set to heat up in 2022
Stable macro-economic conditions and the construction of major infrastructure projects have been instrumental in creating growth momentum for Hanoi’s property market in 2022 and subsequent years.
Hanoi’s housing market in 2022 is expected to heat up with the launch of an estimated 26,000 new apartments this year, according to real estate consulting firm Cushman & Wakefield (C&W) Vietnam.
A recent survey conducted by the firm revealed the introduction of high-class apartment project The Grand Hanoi by late 2021, which were sold out immediately after the launch, breathed fresh air into the city’s apartment market.
Inflation would be controlled in 2022: Experts