The year 2024 is forecast to remain a challenging year for wood industry, given several issues affecting the sustainability of production and export, according to experts.

Statistics of the Ministry of Agriculture and Rural Development show that the sector’s export turnover reached 14.39 billion USD last year, down 15.8% year-on-year.

Major export markets have increasingly stricter regulations on product legality and sustainability. Specifically, the EU Deforestation Regulation (EUDR), which took effect in late June 2023, requires products imported into this market to ensure legality and not cause deforestation.

Along with the EU, many other markets have also set new and strict policies, causing many difficulties for wood export activities. The US market requires an increase in the frequency of investigations applying trade remedies to the industry, and also compliance with labour and employment regulations. Japan also requires Vietnamese wood products to have sustainability certificates.

The German Supply Chain Due Diligence Act is also indirectly impacting Vietnamese exporters. German importers require Vietnamese exporters to provide additional certificates related to product origin, employment status, wages, waste treatment and other related certificates.

Meanwhile, Canada currently tends to put forward more environmental regulations in its product design, manufacturing and marketing strategies. Recently, the Canadian Government published a regulatory framework to establish mandatory requirements for recycled content and labelling for plastic products, which will have some impacts on most of Vietnam's export commodity groups, from consumer goods packaging to other key export sectors.

Hanoi gears up for tourism breakthroughs

With a strong recovery in 2023, Hanoi’s tourism has been gearing up for more breakthroughs this year.

Last year, Hanoi attracted 24 million visitors, an increase of 27% from 2022 and 9.1% higher than the plan. Of them, there were 20 million domestic holidaymakers, a year-on-year rise of 16.3% and equivalent to 91% of the number in 2019 before the COVID-19 pandemic.

The city’s tourism revenue in 2023 was estimated at 87.65 trillion VND (3.65 billion USD), 45.5% higher than that of 2022.
Not only exceeding tourism targets, Hanoi received international tourism awards including “Asia's Leading City Destination 2023”, and “Asia's Leading City Break Destination 2023” while its Department of Tourism won the title of “Asia's Leading City Tourist Board”.

The city's tourism has thrived thanks to comprehensive innovation, focusing on innovating products, taking advantage of heritage tourism and craft village tourism, exploiting new tourism fields that link with each locality's strengths, and promoting digital transformation.

Besides new night tours, Hanoi has also promoted community-based tourism, ecotourism and agritourism.

Regarding digital transformation, Hanoi launched a tourism database system at dulich.myhanoi.vn in early 2023. It has been developing a digital tourism map in Vietnamese and foreign languages to serve its smart tourism development.

Since the end of 2023, the city's tourism has studied developing new tourist routes, including the "Exploring the Nam Thang Long Heritage Road", which taps the strengths of cultural heritage and craft villages in suburban localities; and the route from the city’s centre to districts of Thanh Tri, Thuong Tin, Phu Xuyen, taking tourists to famous craft village in the districts.

Another route is from the city’s centre to Binh Da communal house in Thanh Oai district, Quang Phu Cau incense-making village in Ung Hoa district, and a silk village in My Duc district.
Chairman of the Hanoi Tourism Association Phung Quang Thang said that the routes aim to diversify tourism products that link localities together.

Director of the city’s Department of Tourism Dang Huong Giang said that Hanoi targets 26.5 million visitors in 2024.
Together with heritage tourism, the city will also promote strong tourism products such as culinary tourism, MICE tourism, and wellness tourism.

Central bank promotes prevention of money laundering

The State Bank of Vietnam (SBV) has required relevant parties to strengthen the monitoring and reporting of transactions that are suspected of involving money laundering.

Under a document on compliance with the law on preventing and combating money laundering and terrorist financing issued on Thursday, the SBV has directed commercial banks, gold trading companies, and payment intermediary companies to focus on strengthening customer identification and, if there are any unusual signs, they must report to the SBV’s Department of Anti-Money Laundering.

Accordingly, to enhance the effectiveness and efficiency of money laundering prevention and combat, they must strictly implement the regulations in the Law on Prevention and Combat of Money Laundering 2022; Decree No. 19/2023/NĐ-CP dated April 28, 2023 of the Government detailing a number of articles of the Law on Prevention and Combat of Money Laundering; Decision No. 11/2023/QĐ-TTg dated April 27, 2023 of the Prime Minister regulating the level of large value transactions that must be reported; and Circular No. 09/2023/TT-NHNN dated July 28, 2023 of the SBV Governor guiding the implementation of a number of articles of the Law on Prevention and Combat of Money Laundering.

In particular, they must focus on strengthening customer identification, including collecting, updating, and verifying customer identification information according to the provisions of Articles 9 to 14 of the Law on Prevention and Combat of Money Laundering, and Article 6 of Decree. No. 19, to ensure customer identification and customer transactions to be carried out in accordance with information about the customer, business activities, money laundering risk level and origin of customer assets.

Large value transactions must be reported to the SBV’s Department of Anti-Money Laundering according to the provisions of Article 25 of the Law on Prevention and Combat of Money Laundering. Electronic money transfer transactions must be also reported as stipulated in Article 34 of the Law on Prevention and Combat of Money Laundering; and Article 9 of Circular No. 09.

Through customer identification and transaction monitoring, if detecting unusual signs, they must report to the SBV’s Department of Anti-Money Laundering on suspicious transactions as prescribed in Articles 26 to Article 33 of the Law on Prevention and Combat of Money Laundering. Besides the report, they must timely provide information and documents related to suspicious transactions, and coordinate with competent State agencies according to the provisions of law on prevention, anti-money laundering. 

Da Nang welcomes over 2,000 international passengers on second day of New Year

Carrying onboard more than 2,000 international tourists and 781 crew members, luxury cruise ship Westerdam of the Holland America Line docked at Tien Sa Port in Da Nang on January 2. This marks the first international cruise to visit the central city during the New Year period.

Upon their arrival, the guests were treated to a lively welcome ceremony featuring a lion dance performance and were also presented with attractive gifts.

During their stay in Da Nang, they visited different tourist destinations throughout the city, including Ngu Hanh Son Mountain, Linh Ung Pagoda, and the Cham Sculpture Museum.

Da Nang International Airport welcomed 112 domestic and international flights on January 1, carrying more than 15,500 passengers. Along with Da Nang, other cities and provinces also received a number of international tourists over the New Year period.

On the early morning of the first day of 2024, Ho Chi Minh City welcomed the first international arrivals on a VietJet flight from Melbourne, Australia.

During the period, the northern province of Lang Son also received 43 Chinese nationals who visited the locality through the Huu Nghi International Border Gate.

Moreover, cruise ship Vasco Da Gama of Portugal and Celebrity Solstice of Malta also brought with it a total of 650 Germans and 3,000 European tourists, respectively, to the northern province of Quang Ninh.

Fruit, vegetable exports see green shoots

Vietnam’s fruit and vegetable exports surged to a record high in 2023, yet insiders said it is just a start as ample room remains for the sector.

The Ministry of Agriculture and Rural Development (MARD) reported that the country earned US$5.69 billion from fruit and vegetable exports in the year, up over 70% year-on-year.

China, the US, the Republic of Korea (RoK), Japan, Thailand, the Netherlands, and Australia were Vietnam’s biggest fruit and vegetable importers, especially neighbouring China that accounted for 65% of the revenue.

Surpassing dragon fruit, durian made up the lion’s share with more than US$2 billion, which is attributable to the protocol on phytosanitary requirements for Vietnamese durian exported to China.

Besides, other fruits like watermelon are expected to see breakthroughs in exports as another protocol regarding quarantine requirements for watermelon exported from Vietnam to China has been signed, paving the way for the fresh fruit to officially enter the lucrative market, and similar documents for chili, fresh coconut and frozen durian would be inked in the time ahead.

The MARD’s Plant Protection Department said it has coordinated with importing countries to issue 6,997 growing area codes and 1,613 packaging facility codes for fresh fruits, including dragon fruit, mango, star apple, banana, grapefruit, passion fruit, seedless lemon, longan, lychee and chili, which are allowed to be shipped to China, the US, Australia, New Zealand, the RoK and Japan.

It has also worked with localities to expand growing areas and packaging facilities, and remove technical barriers, facilitating Vietnam's fresh fruits to enter foreign markets.

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 stipulates that the transferor must fulfill its financial obligations to the state before transferring, not allowing the transferee to continue to fulfill their obligations as suggested by many experts previously,” Dinh said.

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.

“The transfer in this instance shall comply with the Law on Credit Institutions currently being amended, and the Law on Real Estate Business shall not apply for those cases. This provision ensures that the relevant transfer conditions are only applied in a single law and avoid overlap between laws,” Dinh said.

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.

“This condition revised the disadvantage of the 2014 Real Estate Business Law, which stipulated that the transferor must return the land to the state, which can then allocate the land to the transferee,” Dinh added.

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.

“This is a step to save time for both sides because they have completed all necessary procedures already, before the transfer,” Can said.

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.

“At the same time, after completing the transfer of all or part of the real estate project, the transferee inherits the rights and obligations of the transferring investor and is the investor of the project and the part which were transferred,” Can explained.

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.

Investment injection bolsters real estate M&A haul

The total value of merger and acquisition deals in the real estate sector reached $1.2 billion in 2023, according to the latest report from Cushman & Wakefield Vietnam.

In December, four development sites for residential development and two industrial developments were disclosed in Bac Ninh, Hung Yen, and Binh Duong provinces.

The latest outstanding deal was on December 11 when Binh Duong People’s Committee allowed Becamex IDC to transfer a 18.9-hectare new urban area project in Thu Dau Mot to Sycamore Co., Ltd., a subsidiary of CapitaLand.

With an estimated investment capital of approximately $797 million, Sycamore plans to build CapitaLand’s first large-scale residential project in Vietnam with more than 460 low-rise villas and about 3,300 apartments, with a total construction area of about 593,000 square metres.

Stephan Higgins, head of Capital Markets at Cushman & Wakefield Vietnam, assessed that a large amount of capital from foreign investors will be completed and poured into the Vietnamese real estate market in the 2024-2026 period.

“Many transactions have been being actively negotiated. The targeted investment goals aim to find clean land funds with good quality, legal ownership, complete compensation and development potential,” said Higgins.

Khanh Nguyen, head of Business Development at Gamuda Land, said that the real estate currently ranks third in the top merger and acquisition (M&A) activities in the Vietnamese market.

“The Vietnamese market still has a lot of room for growth. With the current supply narrowed by half to 15,000-20,000 products in 2023, Vietnam has potential for more,” Khanh said.

Meanwhile Dinh Minh Tuan, director of batdongsan.com.vn in the southern region, said that capital restructuring, M&A deals, and focusing on the mid-end segment are forecast to be the main trends of the real estate industry in 2024.

“Foreign investors have both financial and technical capacity. When the market recovers and grows again, they will be the ones to dominate the market with a range of products,” Tuan said.

In its latest market outlook report released in December, MB Securities forecasts that in 2024, the mid-range real estate segment will be a bright spot of recovery when positive signals have appeared in the market.

“The lack of supply in the affordable segment and low interest rates will stimulate demand in this segment thanks to strong real housing demand,” it said.

To overcome difficulties in accessing bank loans, a number of listed businesses such as CEO Group, Novaland, Dat Xanh, Phat Dat, and Hoang Quan Real Estate have planned to mobilise capital from the stock market.

MB Securities believes that M&A will also be the capital mobilisation trend of real estate companies in 2024 because in the context of a sharp increase in bad debt, banks will be more cautious in the real estate lending process.

Lower risk-free interest rates in the international market will also increase the valuation of Vietnamese real estate projects to international organisations, which in turn can bring about M&A activities.

According to KPMG Vietnam, M&A and calling for investment from private equity funds are of interest to many businesses to find a way out for projects that are behind schedule due to lack of capital.

“Some investors, instead of wanting to transfer the entire project, have tried to pursue it by calling on investors to contribute capital to implement the project. Meanwhile, many foreign investors have begun transferring capital into real estate projects in Vietnam in the form of buying back shares,” said Warrick Cleine, chairman and CEO of KPMG in Vietnam and Cambodia.

Furthermore, inflation is controlled below the target of 4 per cent, and the International Monetary Fund forecasts that GDP will increase again at 5.8 per cent in 2024 and 6.9 per cent in 2025. “All of those are fundamentals point to a favourable year for investors targeting strategic opportunities in the dynamic Vietnamese market,” Cleine said.

Vice chairman Nguyen Chi Thanh of the Vietnam Real Estate Brokers Association assessed that the industrial real estate market together with residential and office real estate segment will be top priority for M&A deals. However, legal problems are holding back deals, leaving foreign investors with few options.

Industrial parks seek answers for potential power shortages

Many industrial areas face the risk of power shortages in 2024, which will undermine production, tenants, and investment.

Quang Ninh provincial authorities have urgently requested the Ministry of Industry and Trade and Vietnam Electricity (EVN) to address the electricity shortfall in its industrial parks (IPs).

“The province has 520 hectares of IPs with all the necessary infrastructure except for electricity. There is land and infrastructure but not enough power for production activities,” said Vice Chairman of Quang Ninh People’s Committee Bui Van Khang at the ministry’s annual work summary meeting.

For example, Nam Tien Phong and Bac Tien Phong IPs receive only 50MW of electricity daily, far below the requirement of hundreds of MW for daily operations. In addition, the Texhong-Hai Ha IP’s electrical substation is operating at full capacity and needs upgrading.

“Increasing power supply for IPs is an urgent task. Thus, I propose the ministry and EVN pay attention to this problem,” he said.

It is not the first time that the province has expressed concern about the power shortage. At Song Khoai IP, Amata City Halong took the Amata 1 substation into operation and had plans to install transformers at the end of 2023. However, the installation has yet to be completed because the current 250MVA substation of Song Khoai IP is full, and cannot connect with the other transformers in the IP.

At Viet Hung IP, the investor built an additional 110/22kV transformer. However, Northern Power Corporation has yet to build a 110kV power line to supply power. The decision approving the construction was issued in April 2022.

In addition, in the southern province of Dong Nai, the demand for power is still rising as new IPs and other infrastructures are preparing to take into operation. Meanwhile, almost all electrical loads are either full or overloaded.

Dong Nai ranks third in the country in terms of electricity consumption, following Ho Chi Minh City and Hanoi.

Deputy head of EVN’s Planning Division Nguyen Anh Tu said, “In recent years, industrial production in the province faced difficulties, and the electricity load has decreased. However, the economy will soon grow again, and new IPs will be established, causing pressure on the electricity supply.”

There are worries over power shortages after a series of power cuts without specific schedules or durations last summer, particularly in the north of the country. At the time, many enterprises said that the unannounced power interruptions had forced firms to suspend operations and miss deadlines for orders, while impacting the working time of their employees.

“South Korean enterprises reported suffering dual damage. When having power interruptions without prior notice, workers still go to the factories and sit idle. Meanwhile, the manufacturing lines have to suspend operations and the companies still must pay salaries,” said Hong Sun, chairman of the Korean Chamber of Commerce in Vietnam.

EVN’s Anh Tu added, “At present, the transformer stations and power grid are operating in an overloaded state. The implementation of additional power stations and synchronous grid projects faces a delay due to barriers in land clearance. If this situation is not resolved soon, the power supply to Dong Nai will be impacted.”

EVN chairman Dang Hoang An stressed the need for collaboration between local authorities and investors to expedite these projects.

“Provinces with the need to upgrade substations for IPs should promptly notify the energy industry so it can make timely preparations and investments, as electrical infrastructure projects take a long time to deploy,” An said.

Realising LNG goals require resolutions

Current obstacles in liquefied natural gas import costs and electricity selling prices mean it will be difficult for Vietnam to achieve its set targets for gas power capacity.

The Thi Vai liquefied natural gas (LNG) terminal, which was built in 2019 and costs $300 million, was put into operation in October 2023 as Vietnam’s first complex for such imported goods, with a total storage capacity equivalent to one million tonnes of LNG per year, meeting one-quarter of total demand

However, at last week’s roundtable on LNG power development in Vietnam, Nguyen Quoc Thap, chairman of the Vietnam Petroleum Association (VPA) claimed that while investment in LNG import infrastructure is following progress, funding in power plants is too slow.

“As of date, no factory has started construction yet,” he said. “The progress is still questionable due to hundreds of reasons, and the time of test runs as outlined for early 2024 is quite risky.”

Dinh Trong Thinh, an expert from the Academy of Finance, said that wind power and solar power have been widely exploited. However, the production cost of wind and solar power is still high and unstable over time and season.

“Developing gas thermal power, both from natural and LNG, is the main direction because gas power sources can run in the background, start up quickly, and swiftly supply electricity to the national power system when renewable energy sources reduce its generation,” Thinh said, adding that LNG produces 40 per cent fewer CO2 emissions than coal and 30 per cent less than oil during the burn.

Nguyen Thanh Son, an independent expert, said that the role of gas thermal power is to regulate the power system. So the problem is that a gas thermal power plant only operates for about 2,000-3,000 hours per year, and cannot meet the return on investment.

“Natural gas itself is cheap, but LNG is expensive due to high technologies. A lot of energy will be spent in the process of compressing gas, along with transportation and insurance costs, while the purchasing power of electricity of the Vietnamese economy is low,” Son said. “Price and output are the most decisive factors in luring businesses into this field. For synchronous development, policy mechanisms are needed for LNG development.”

The Power Development Plan VIII (PDP8) has set a target that by 2030, total gas power capacity using imported LNG will account for around 15 per cent of the country’s total power source capacity. Building a gas power plant in line with the process of selecting investors, preparing feasibility study approval, negotiating power purchase contracts, proposing loans, and implementing engineering, procurement, and construction contracts may take 7-8 years.

“If these challenges in LNG development are not resolved soon, the goals will be difficult to realise and will affect the goal of transition and ensuring national energy security,” Son added.

Thap from the VPA noted that the current biggest barrier for LNG power plants is still the high cost of production, and the input fuel depends entirely on imports. Therefore, plants have to be run at base load to have more reasonable and acceptable electricity prices.

“However, there is currently no power generation price framework for LNG power projects, so producers and buyers do not know how to negotiate,” Thap said. “If we only look at the world price of LNG in recent times, sometimes up to $30-40 per million BTU, the power price from LNG gas power will be much higher than the retail price of Vietnam Electricity (EVN) to electricity consumers.”

Experts and businesses related to such projects said if the LNG power plants sell electricity at 8-9 US cents per kWh, the input LNG cost must be around $12 per million BTU. If the LNG purchasing price reaches $40-50 per million BTU, the electricity price cannot be less than 20 US cents per kWh - a level that EVN cannot buy anytime soon.

Other issues being thoroughly considered include commitments on foreign currency conversion, ensuring payment obligations to EVN, compensation for damages upon termination of power purchase agreements (PPA), converting LNG prices to electricity selling prices, and off-take of electricity output.

The PDP8 points out the aim to build 13 additional LNG power plants by 2030 with a total capacity of 22,400MW and two plants with capacity of 3,000MW by 2035. To date, the 13 LNG power plants have in-principle approval and, of these five are under construction and four have investors.

Particularly, the deployment of LNG Nhon Trach 3 and 4 from PetroVietnam Power Corporation (PV Power) and LNG Bac Lieu by Delta Offshore Energy have been struggling. Progress is slow despite receiving investment certificates several years ago, mainly due to negotiations on electricity selling prices and PPAs with EVN.

Moreover, developers are also struggling with mobilising capital for projects because there are high loan costs and no government guarantee, depending on the type of PPA.

Nguyen Huy Hoach, an expert from the Vietnam Energy Association raised solutions to enhance the performance of LNG projects. Firstly, the price of imported LNG cost is about up to 1.5 times higher than the domestic gas price from current gas fields in Cuu Long, Nam Con Son, and Malai-Tho Chu. “To manage imported LNG prices, we need the supportive role of the government, the diplomatic agencies, and relevant authorities in finding and cooperating with suitable exporters, ensuring stable prices in the long term,” Hoach said.

Secondly, LNG projects are complex chains and with large enough warehouse scale, will reduce costs per unit of LNG and take advantage of port infrastructure. “A project should have four machine units with a total capacity of 3,000MW at least to reach economic effectiveness. If a project has two units only and delays the progress of the next units, its performance will be poor,” Hoach said.

He also highlighted the need for regulations on minimum gas-electricity consumption output to ensure a return on investment for investors and the feasibility of the project.

Vietnamese adaptation of ChatGPT launched

VinBigdata, a part of the conglomerate Vingroup, on December 27 announced the official launch of ViGPT, the first Vietnamese adaptation of the ChatGPT application, targeting both end-users and businesses. This move is seen as a significant leap in the country's growing AI industry.
 
ViGPT, tailored for the local community, is described as a "Vietnamese version of ChatGPT for end-users."

It features an extensive knowledge base capable of content creation, information retrieval, and answering general queries, with a focus on Vietnam's unique legal, historical, and cultural landscapes.

"ViGPT encompasses over 600GB of refined Vietnamese data, covering a wide array of fields," the company said, highlighting its comprehensive approach to local data incorporation.

VinBigdata is already deploying this technology in products like a legal virtual assistant for state agencies and the forthcoming AI-integrated ViVi assistant in VinFast electric vehicles.

The company plans to integrate ViGPT into various sectors, including transportation, banking, finance, and insurance, enhancing the speed and simplicity of information processing for users.

VinBigdata's Science director, Prof Vu Ha Van said,"Launching ViGPT is a testament to Vietnam's capacity to not only master but also safeguard technological advancements, especially in data security and national intellectual property. It's a step towards reducing dependency on international products and improving the accuracy and authenticity of information reflective of Vietnamese heritage."

Hai Duong continues to create breakthroughs in attracting investment

The northern province of Hai Duong this year will continue to attract large domestic and foreign investors who have sufficient financial and technological capacities and strong management skills, according to local authorities.

The province would also complete the list of projects calling for investment between now and 2030, Chairman of the provincial People's Committee Trieu The Hung said, adding that projects that might have risks of causing environmental pollution would not be prioritised.

Secretary of the provincial Party Committee Tran Duc Thang said the province focused on luring foreign investment in the fields of high technology, smart technology, biological industry, new materials, processing industry, manufacturing and supporting industries.

In 2024, the locality would continue to improve the quality and efficiency of business support services, deploy solutions to restructure the labour market, associated with bettering the quality of labour training and facilitate the cooperation between businesses and training institutions, authorities said.

They added that accelerating investment promotion activities and perfecting the investment and business environment would also be included.

By the end of November 2023, Hai Duong had attracted more than 1.13 billion USD worth of foreign investment, over three times higher than the same period last year, statistics from the provincial Department of Planning and Investment revealed.

The province is now home to 540 foreign-invested projects with a total registered capital of over 10.16 billion USD. Of the sum, 289 projects, worth above 5.98 billion USD, have been invested in industrial parks.

VinFast has first five dealers in US

VinFast, Vietnam’s first electric vehicle maker, on January 2 announced the signing of agreements with its first five dealers in four states of the US, bringing opportunities for customers to experience VinFast electric vehicles.

They include Leith VinFast (Raleigh, North Carolina), Smith Haven VinFast (St. James, New York), Principle VinFast Grapevine (Grapevine, Texas), Hiley VinFast of Fort Worth (Fort Worth, Texas), and VinFast Wichita (Wichita, Kansas). These dealerships will commence the sale of the VF 8 model, followed by the VF 6, VF 7, and VF 9 as soon as these models are introduced to the US market.

All customers purchasing or leasing VinFast electric vehicles will benefit from a 10-year or 200,000km warranty for the vehicle and a 10-year unlimited mileage warranty for the battery.

VinFast plans to expand its distribution network for its electric vehicles to 125 sale points across the US.

In addition to expanding the dealership network, VinFast is currently operating 13 retail stores and service centres in California.

EVNNPT keeps projects on schedule in 2024

The National Power Transmission Corporation (EVNNPT) will commence 34 electricity transmission projects and complete 63 others this year, its Chairman of the Member Council Nguyen Tuan Tung told a conference held in Hanoi on January 2.

According to the 2024 plan assigned by the Vietnam Electricity (EVN), EVNNPT will focus on key projects to ensure electricity supply for the country's socioeconomic development throughout the year, including those on enhancing the capacity of the 500 kV north-central power transmission grid and serving renewable power plants as well as the purchase of electricity from Laos.

Additionally, a detailed schedule for the operational progress of key projects will be established, along with plans to secure sufficient capital for projects until 2025, particularly for major and pressing ones.

The Prime Minister has directed local authorities to focus on tackling obstacles in land clearance compensation for EVNNPT's key electricity grid projects.

Tung emphasised that they are also responsible before the PM for any delays in the progress of handing over land for projects in the approved national power development master plan.

FDI firms power Vietnam’s exports

Foreign firms contributed 259.95 billion USD or 73.1% of Vietnam’s total export revenue in 2023, statistics show.

The sector has played a crucial role in the national economy, as reflected through its export turnover, job generation, and the formation of supply chains in such key industries as electronics, machinery, garment-textile and footwear.

Notably, 2023 marked the eighth consecutive year Vietnam had run a trade surplus, reaching a record high of 28 billion USD, with the FDI sector contributing a whopping 90% in many major areas.

Specifically, the firms accounted for 99.6% in phones, over 98% in computers, 93% in machinery, and more than 60% in garments-textiles.

Vietnam has been named among the top 20 economies with the largest trade scale globally, significantly contributed by the FDI sector. The large FDI influx has created a foundation to advance the country on the global trade map.

Last year, with 275.9 billion USD, the sector's export earnings equated to 74% of the country’s accumulative export revenue.

Airlines ready for busy holiday travel

Air carriers said they are prepared for busy end-of-year holiday travel as the 2024 Lunar New Year (Tet) is approaching.

Vietnam Airlines Group, comprising Vietnam Airlines, Pacific Airlines, and Vietnam Air Services Company (VASCO), plans to fly up to 2.1 million passengers between January 25 and February 24, with nearly 550 flights added during the period.  

The increased flights mainly connect Ho Chi Minh City and Hanoi with Da Nang, Hai Phong, Vinh, Thanh Hoa, Hue, Da Lat, Can Tho, Nha Trang, Phu Yen and Phu Quoc.

Bamboo Airways has leased two more Airbus A320/A321 aircraft, raising its capacity by over 20% from January 1.

Vietravel Airlines said it has considered appropriate airfares during the holiday, while coordinating with aviation authorities to increase the frequency of flights with high travel demand.

Earlier, the Civil Aviation Authority of Vietnam (CAAV) issued a document allowing night flights during the Tet holiday, and asking air carriers to take actions to minimise flight delays and cancellations, and intensify control to ensure aviation safety.

The CAAV also urged ground and aviation service providers to develop specific plans and measures to ensure the capacity to provide services during the holiday, and ensure sufficient resources and equipment to serve flights in accordance with airlines' operation plans.

Hanoi's startups account for 30% of the country's total

Hanoi currently has about 1,000 innovative startups, accounting for 26.32% of the country's total [of 3,800], according to Ngo Minh Toan, director of the Hanoi Business Support Center.

"From 2019 to 2022, about 14 domestic venture capital funds were established in Hanoi. Since 2016, innovative startups in the city have raised US$999.52 million, with 99 successful capital calls. The capital is an ideal location for education, e-commerce and financial startups," Toan said.

He added that Hanoi aims to complete the creative startup ecosystem by 2025. By 2030, the city will be the country's creative startup hub, and by 2045, it will be one of Asia's smart manufacturing and service centers, as well as a startup and innovation hub.

 "To foster the growth of an innovative startup community, it is imperative to devise effective solutions that seamlessly connect entrepreneurship and innovation with knowledge, science, and technology, leveraging the potential and advantages of capital. The ultimate goal is to position Hanoi as a prominent national and regional hub for innovation and startups expeditiously. The city government is steadfast in its commitment to formulating and enhancing mechanisms and policies that will actively promote and cultivate the most conducive environment and conditions for the flourishing of innovative startups," emphasized Toan.

The development of enterprises in Hanoi in recent years has reflected the fundamental changes in the capital's socio-economic development policy, which considers enterprises and the private sector as an important driving force of the national economy.

According to the Hanoi Department of Planning and Investment, in recent years the city has focused on completing mechanisms and policies to support and nurture businesses. In addition, administrative reform in parallel with the construction of e-government and modern public administration has contributed to creating a more favorable investment environment for business development. 

The Hanoi People's Committee has approved five projects related to innovative startups, the most notable of which in 2019 is titled "Supporting creative startups in Hanoi in the period 2019-2025" (Project 4889). Hanoi has also supported three incubators and startup spaces with a total budget of VND1 billion ($41,148).

As of the conclusion of 2022, Hanoi boasts an infrastructure of 16 innovation investment funds and 21 incubators and organizations dedicated to supporting startups. Notably, 16 enterprises have been awarded Science and Technology Enterprise Certificates, predominantly in the dynamic field of Information Technology (IT), recognizing their status as innovative startups.

The city government has prioritized the creation of optimal conditions and the allocation of resources for creative startup activities and local enterprises engaged in digital transformation. Moreover, the collaborative support from ministries and state corporations within the city has significantly contributed to the advancement of the capital's innovative startup ecosystem. Funding from the 2022 State budget for business-led projects surpassed VND10 billion ($411,480).

Rubber exports gross US$2.89 billion last year

Vietnam raked in US$2.89 billion from exporting 2.14 million tonnes of rubber last year, suffering a fall of 0.04% in volume and 12.7% in value compared to the figure from 2022, according to details given by the Ministry of Industry and Trade.      

This figure means that the industry has slipped out of the agro-forestry-fishery export group of over US$3 billion. In line with this, the average export price of rubber dropped by 12.7% to US$1,350 per tonne compared to 2022.

Last year saw Vietnamese rubber exports encounter numerous difficulties due to a sharp decline in rubber export prices, leading to the rubber export value to become lower compared to the same period from last year.

Furthermore, the recovery of production activities in China has been weaker than projection, causing both rubber consumption and selling prices to endure a downward trajectory. 

In addition, rubber exports to several markets, especially major markets such as India, the United States, Germany, Taiwan (China), Turkey, Sri Lanka, Russia, Indonesia, and Spain, all saw a decline.

In contrast, exports to several markets such as China, the Republic of Korea, the Netherlands, Singapore, and the Czech Republic continued to grow well in volume.

Among these, the Chinese market remained as the largest consumer of Vietnamese rubber, duly accounting for 79.22% in volume and 78.08% in value of the country's total rubber exports during the 11-month period.

India ranked second, making up 5.34% in volume and 5.49% in value of the country's total rubber exports throughout the reviewed period.

Rubber prices in the Asian market fluctuated strongly last year as the prices stood at a low level in the first two quarters before rebounding the third and fourth quarters.

According to industry insiders, rising Chinese demand will be the key factor affecting the developments in rubber price in the country.

Moreover, fluctuations in oil prices due to concerns about trade disruption in the Suez Canal will also indirectly exert an impact on rubber prices. Moving into 2024, the northern neighbour is anticipated to boost automobile consumption and promote manufacturing activities, thereby leading to a rising demand for imported rubber to produce tires and other products.

China’s growing demand for rubber will represent a driving force in raising global rubber prices. With nearly 80% of Vietnam’s rubber volume being exported to this market, there is ample room for rubber exports in the time ahead, according to experts. 

Foreign-invested firms contribute 73.1% of total export turnover

Foreign-invested enterprises (FIEs) contributed US$259.95 billion out of Vietnam’s total export turnover of US$355.5 billion last year, according to figures released by the Ministry of Industry and Trade.      

The level of reliance on the FDI sector in terms of exports remains huge as the export revenue of FIEs including crude oil, still makes up about 73% of the country’s accumulative export turnover. According to details given by the General Statistics Office (GSO), Vietnamese export earnings dropped by 4.4% to US$355.5 billion compared to the previous year. 

Of the figure, the domestic economic sector grossed US$95.55 billion, a decline of 0.3% and accounting for 26.9% of total export turnover, while the foreign-invested sector, including crude oil, raked in US$259.95 billion in exports, a drop of 5.8% and accounting for 73.1%. Last year saw a total of 35 items with export turnover exceeding US$1 billion, making up 93.6% of total export turnover.

Most notably, seven export commodities enjoyed export revenue reach over US$10 billion, thereby accounting for 66% of total export earnings.

In fact, the FDI sector has played a crucial role in Vietnamese economic growth, which is clearly demonstrated through its contribution to export revenue, job creation, and the formation of supply chains in key export industries, especially in the fields of electronics, machinery, garments and textiles, and footwear.

Furthermore, the country posted a trade surplus for several consecutive years thanks to the significant contribution made by the FDI sector.

2023 was the eighth consecutive year that Vietnam racked up a trade surplus, hitting a record high of US$28 billion with the FDI sector making up 99% in multiple fields.

In particular, FIEs account for 99.6% in phones, over 98% in computers, 93% in machinery, and more than 60% in garments-textiles. The country has been listed among the top 20 economies with the largest trade scale in the world, with a significant contribution from the FDI sector.

Huge FDI inflows into production activities have also given a fresh impetus for robust economic growth, a factor which has helped to advance the nation’s position on the global trade map.

Statistics indicate that the national economy's import-export scale exceeded US$730 billion by the end of 2022. However, due to the unfavourable impacts on the global economy coupled with weakened trade, import-export activities have failed to reach the US$700 billion mark, recording only US$683 billion.

Foreign tourists to Vietnam record surge over New Year holiday

Tourist destinations across the country, including Hanoi, Ho Chi Minh City, Da Nang, Nha Trang, and Phu Quoc all welcomed a large number of international visitors during the three-day New Year holiday.      

From December 30, 2023, to January 1, 2024, Ho Chi Minh City served a total of 46,528 foreign arrivals, marking an annual surge of 86.1%. Total tourism revenue was estimated to stand at nearly VND6.4 trillion, soaring by 7.7% compared to the same period from last year.

In line with this, Ho Chi Minh City’s Department of Tourism reported that most foreign tourists coming to the city were cruise passengers from Europe, the United States, Australia, and Japan. Meanwhile, the reviewed period also saw Hanoi welcome 72,000 foreigners, a 2.1-fold increase from last year. The capital earned VND1.5 trillion from the tourism sector, up by 73% on-year.

Destinations that attracted large numbers of tourists include Hoan Kiem (Returned Sword) lake and its surrounding areas, as well as famous sites such as the Hanoi Old Quarter, the Temple of Literature, Thang Long Imperial Citadel, and Ba Vi National Park.

Elsewhere, the central city of Da Nang received 261,000 visitors, up 34.7%, with the number of foreigners accounting for half with around 138,000 arrivals.

Furthermore, Quang Nam province, home to the ancient city Hoi An, saw a sharp increase in terms of the number of international travelers to 91,000, up 169% compared to last year.

Around 35,500 foreign travelers visited the southcentral coastal province of Khanh Hoa, representing a five-fold rise from 2023. According to Cam Ranh International Airport, from December 30, 2023, to January 1, 2024, on average the airport received a total of 24 domestic flights and 28 international flights per day.

December 31 also saw luxury cruise ship Westerdam dock at the Nha Trang port of Nha Trang bay, one of the most beautiful bays in the world, bringing with it approximately 2,000 foreign visitors, mostly Dutch travelers, to the central coastal city which is also the capital of Khanh Hoa province.

Moreover, Phu Quoc island city in the southern province of Kien Giang welcomed 88,209 tourists, including 15,029 foreign arrivals. The locality’s tourism industry raked in VND369 billion throughout the three-day holiday.

Vietnam’s stock market expected to close in on global standards

Vietnam’s stock market should continue to adopt international standards to narrow the development gap with its foreign peers.

Deputy Minister of Finance Nguyen Duc Chi made the remark at a gong-beating ceremony held today [January 2] to kick off the first trading session of the Vietnamese stock market in 2024.

At the ceremony, Chi noted that the economy faced significant challenges in  2023, with GDP growth at 5.05%.

Despite falling short of the 6.5% target, Chi emphasized that Vietnam remains one of the world's fastest-growing economies.

In the face of numerous challenges, the VN-Index reached 1,129.93 points at the end of 2023, a growth of over 12% compared to the end of 2022. Market liquidity surpassed VND17.5 trillion (US$719 million) per session.

The market capitalization of stocks approached nearly VND6,000 trillion ($246.53 billion), a more than 9% increase from the previous year, equivalent to about 62% of the GDP in 2022.

In 2023, the number of new investor accounts increased by over 350,000, bringing the total to over 7.4 million, equivalent to 7.5% of the population.

Of particular note is the launch of the system for trading privately placed corporate bonds on July 19, 2023.

This milestone is considered a significant step in the development of the corporate bond market in Vietnam, contributing to greater transparency and risk mitigation for investors in transactions, said Chi.

“The new platform helps foster liquidity and creates conditions for the sustainable development of the private placement corporate bond market,” he added. The private placement corporate bond trading system currently comprises 869 bond codes from 244 issuing organizations, with a registered transaction value of VND600.7 trillion ($24.7 billion). The average liquidity in the market is VND1.7 trillion ($70 million) per session.

Chi noted that the market was well managed and regularly monitored, ensuring safety and discipline. Looking ahead to 2024, he highlighted the complexity of global and regional situations, which require flexible and prudent financial policies in line with global and regional developments.

To promote the development of the stock market, Chi called for greater efforts to refine regulations, amend laws, and address long-term development obstacles.

“The authorities should ensure the effective implementation of the stock market development strategy through  2030, which was recently approved by the Prime Minister,” he noted.

He also stressed the importance of ensuring the operation of trading, payment, and clearing systems. “The timely integration of new information technology systems is key to ensuring transaction synchronization,” he added.

Moreover, there is a need for new product development, administrative procedure reforms, and creating favorable conditions for listed organizations to register transactions.

Proactive monitoring, strengthening market supervision, timely handling of violations, and protecting investors' legal rights and interests were underscored to restore market confidence.

Chi emphasized the need for proactive and coordinated efforts with relevant sectors to upgrade the Vietnamese stock market from its current frontier to emerging market status.

At the event, the Chairwoman of the State Securities Commission of Vietnam Vu Thi Chan Phuong pledged to guide specific actions for 2024 and efficiently implement the strategic development solutions for the stock market approved by the government.

“This includes perfecting mechanisms, actively monitoring, and enhancing market supervision, as well as further strengthening inspection activities and strictly dealing with market violations,” stressed the head of the stock market’s watchdog.

Additionally, efforts will focus on advancing measures for the development of Vietnam's stock market, making it easier for companies to mobilize capital through the stock market, connecting IPOs with listings, shortening the time between IPO issuance and listing, and proactively disclosing information to investors, she added.

Vietnam predicted to be among top 25 global economies by 2038

Vietnam remains the 34th largest economy in 2023 but is projected to rise to 21st in the world by 2038.

The UK-based Center for Economics and Business Research (CEBR), an independent economic forecasting and analysis center with 30 years of experience, assessed in its 14th annual report on global economic prospects.

According to the center’s World Economic League Table (WELT) rankings, Vietnam's economic size is projected to make a significant leap in the next 14 years.

In 2024, Vietnam is expected to rank 33rd in the WELT, moving up one place from last year. The ranking is anticipated to rise swiftly, reaching the 24th position in 2033 before becoming the 21st largest economy in the world by 2038.

Capitalizing on its large and youthful population, Vietnam is poised to surpass many ASEAN countries economically, including Singapore, Thailand, and Malaysia, and aims to become a high-income nation by 2045, according to the CEBR.

Looking back at last year's economic performance, the organization acknowledges Vietnam's robust growth and the maintenance of low inflation.

Official data from the General Statistics Office (GSO) noted the country’s GDP growth increased by 5.05% in 2023, while inflation stood at 3.25%, a remarkable balance between growth and inflation compared to many other countries.

The consumer price index growth in 2023 was also lower than the 10-year average, at 3.8%, providing room for Vietnam's monetary policy management.

Additionally, last year's lower unemployment rate contributed to increased consumer spending, and the government debt-to-GDP ratio is expected to be around 35%  in 2023, down about 1.3 percentage points from 2022.

Moreover, Vietnam has benefited from the global shift in supply chains, with the proportion of Vietnamese exports to the US increasing by nearly 2% since the escalation of US-China trade tensions in 2018. This is complemented by strong foreign direct investment (FDI) inflows from other Asian economies, including China.

CEBR forecasts an average annual GDP growth rate of 6.7% for 2024-2028, followed by 6.4% over the subsequent nine years.

Alongside Vietnam, the Philippines is also highlighted as a country with impressive growth potential, projected to reach 23rd by 2038. According to the CEBR, Vietnam and the Philippines are prominent examples of countries expected to improve their rankings through repositioning in the global value chain, internal reforms, increased labor productivity, and investment in infrastructure.

Investors take profits heavily in first trading session of 2024

The initial trading session of 2024 experienced considerable market volatility as investors engaged in profit-taking activities.

Although the VN-Index closed above the reference level, surpassing 1,130 points, the market was “green on the outside, red on the inside.”

On January 2, the Vietnamese stock market opened strongly, but profit-taking by both domestic and foreign investors caused the VN-Index to drop below the reference point before rebounding by nearly 2 points at the session's close. The VN-Index maintained the green color, primarily driven by banking stocks. Despite the increase, the market showed a tendency toward the red side.

The real estate and construction stock group dropped sharply. Specifically, BCG plunged by 5.56 percent, PDR by 3.05 percent, DIG by 2.8 percent, SZC by 3.59 percent, HDC by 1.53 percent, HDG by 2.17 percent, TCH by 1.52 percent, and NVL by 1.76 percent. Vingroup's trio also simultaneously fell, with VIC losing by 1.35 percent, while VHM and VRE retreating by nearly 1 percent. In contrast, NTL stock surged to its daily limit.

Within the securities stock group, only a few stocks managed to sustain gains, with HCM jumping by 4 percent, ORS by nearly 1 percent, while the rest faced slumps. Particularly, VIX declined by 4.09 percent, SHS by 2.12 percent, FTS by 3.14 percent, BSI by 2.74 percent, VCI by 1.05 percent, and CTS by 2.12 percent.

The banking stocks, the only stock group leaning towards the green, played a key role in keeping the VN-Index in positive territory. Expressly, VCB increased by 3.99 percent, ACB by 2.3 percent, SHB by 1.39 percent, LPB by 1.9 percent, MBB by 1.07 percent, and VIB by 1.02 percent. Meanwhile, CTG, EIB, TCB, and SSB all saw gains of nearly 1 percent.

Conversely, many stocks in the manufacturing group saw steep drops, with GEX slashing by 6.14 percent, NKG by 3.65 percent, HSG by 2.85 percent, HPG by 1.79 percent, VGC by 3.18 percent, and GVR by 1.18 percent.

At the end of the trading session, the VN-Index rose by 1.79 points, or 0.16 percent, to reach 1,131.72 points, with 197 gaining stocks, 299 losing stocks, and 77 unchanged stocks.

Meanwhile, on the Hanoi Stock Exchange (HNX), the HNX-Index reduced by 1.05 points, or 0.45 percent, to close at 229.99 points, with 78 stocks advancing, 75 stocks declining, and 80 stocks remaining unchanged. Market liquidity showed improvement, with the total trading value on the HOSE reaching around VND17.2 trillion.

Following three consecutive net buying sessions at the end of 2023, foreign investors resumed net selling, with a total net selling value of nearly VND355 billion on the HOSE.

Three sides cooperate to expand market share for green enterprises

A newspaper, an association, and a supermarket cooperate to help green enterprises to expand their market shares.

This morning, Saigon Giai Phong Newspaper, the Ho Chi Minh City Union of Business Association (HUBA) and the city Federation of Commercial Cooperatives (SAIGON CO.OP) jointly signed a Comprehensive Cooperation to develop market share and brand for green enterprises focusing on the production process for environmental benefits and sustainable development.

Speaking at the signing ceremony, journalist Tang Huu Phong, Editor-in-Chief of Saigon Giai Phong Newspaper, said that for years, the newspaper has been consistent with its policy that it has always supported green businesses produce according to green criteria and environmentally friendly workplaces. More than 10 years ago, the newspaper had a program to honor and support green businesses. Up to now, the program supported by city authorities was restarted to select and honor these special enterprises.

According to journalist Tang Huu Phong, green and sustainable development is an inevitable trend and is increasingly popular in the business community. Green criteria are mandatory so countries in the world have set technical barriers to limit products that do not comply with requirements for green production and sustainable development. He revealed in addition to the selection of the green business title as per the regulations, the organizing committee also has to promote the brands of selected green businesses.

According to journalist Tang Huu Phong, 90 businesses were selected and honored in 2023.

He predicted that in the coming time, the number of green businesses will be greater, and the chain of connected green businesses will also be wider. After this signing with SAIGON CO.OP, SGGP Newspaper and HUBA will continue to sign with other distributors which will help green businesses to distribute green products.

Being a businessman, Chairman of HUBA Nguyen Ngoc Hoa said that currently, Ho Chi Minh City businesses are a business community with very high determination in green transformation and digital transformation to adapt to domestic and foreign markets. However, the majority are still small and medium-sized enterprises that desire to convert their production process but they are short of money.

According to Mr. Nguyen Ngoc Hoa, the Green Business Organizing Committee hopes that the joint contributions and support for businesses will be done synchronously. He thanked SGGP Newspaper and SAIGON CO.OP’s assistance for the green business community.

HUBA Chairman Nguyen Ngoc Hoa is also the chairman of the Board of Members of the Ho Chi Minh City Finance and Investment State-Owned Company (HFIC), so he promised to mobilize additional financial resources from HFIC to support the green business community.

Accordingly, HFIC has proposed that Ho Chi Minh City support and include in the stimulus program all green transformation and sustainable development projects of businesses.

Mr. Nguyen Anh Duc, General Director of SAIGON CO.OP, emphasized the unit has been pioneering in green transformation and support for businesses in this transformation process.

According to Mr. Nguyen Anh Duc, SAIGON CO.OP has coordinated with SGGP Newspaper to implement the Green Consumption campaign for the past 15 years, which has been supported by a large number of consumers. SAIGON CO.OP also plays a fundamental role in connecting and building a green business ecosystem.

The General Director of SAIGON CO.OP hopes that the Green Business Award will spread more widely in the community. He hoped that in the coming time, the Green Business Award will not only be launched in Ho Chi Minh City, but partners in all corners of the country will also be able to apply and be selected.

According to the memorandum of understanding on comprehensive cooperation to support market share and brand for businesses achieving the title of Green Enterprise, the three parties SGGP - HUBA - SAIGON CO.OP agree to cooperate towards common goals. Developing the corporate brand to achieve the title of Green Enterprise, enhancing community recognition, and gradually contributing to expanding market share for green businesses.

Furthermore, information and communication channels about these special enterprises will be established in the SGGP Newspaper. Simultaneously, green businesses are helped to build their communication strategies to increase community recognition of products and brands by the newspaper, the association, the supermarket chain and businesses and members of the three parties.

The three sides will implement strategic cooperation from 2024 to 2030. After each year of implementation, the three parties will organize an assessment of the effectiveness and quality of the program which is used as a basis for the implementation of strategic cooperation in the next phase.

Lao Cai Border Gate bustles with export-import activities on first day of 2024

The Kim Thanh International Border Gate in Lao Cai City was recorded bustle atmosphere of export and import activities at the beginning of the New Year.

The Customs Department of Lao Cai Province said that the customs clearance procedures at the border gate were rapidly performed right after 30 minutes of opening the border gate which was different from process in the same period of the last years.

During the first hour of opening the border gate, more than 30 vehicles carrying products of durian, banana, dragon fruit, exported dried cassava slices, strawberry and imported tangerine completed 18 declaration forms. It was estimated that a total import-export turnover value would cost nearly US$500,000 on January 1.

HAGL plans to divest from affiliate

Hoang Anh Gia Lai Joint Stock Company (HAGL), whose HAG shares are traded on the Hochiminh Stock Exchange, has announced to transfer its entire stake in the BAPI Hoang Anh Gia Lai JSC.

HAGL will sell its entire 2.75 million shares in BAPIHAGL. After completing the share transfer process, BAPIHAGL will no longer be an affiliated company of Hoang Anh Gia Lai JSC.

BAPIHAGL was established in May 2022 with the purpose of distributing banana-fed pigs. The company is headquartered in Pleiku City, Gia Lai Province, with initial charter capital of VND50 billion. Of which, HAGL contributed VND27.5 billion, 55% of the total.

In December 2023, the company also decided to transfer its entire 9.9 million shares in the Hoang Anh Gia Lai-University Medical Center to repay debt.

Vietnam’s ports welcome first cargo ships in 2024

The onset of 2024 saw the arrival of the first cargo ships at several ports in Haiphong and Danang cities on January 1.

Tan Vu Terminal in Haiphong City got its first cargo load from the Maersk Victoria, a container ship under the Singaporean flag. The terminal is a subsidiary of the Port of Haiphong, together with Chua Ve and Hoang Dieu terminals.

For January 2024, the Port of Haiphong plans to manage 3.14 million tons of cargo. It anticipates revenue to reach VND180.7 billion, with pre-tax profit of VND55 billion.

The port has set a full-year cargo handling target of over 36.6 million tons.

In 2023, the Port of Haiphong handled 37.5 million tons of cargo, achieving 90.8% of its 41.4 million-ton target. The port generated revenue of VND2.5 trillion, with pre-tax profit of VND898.13 billion.

Meanwhile, the SITC Hainan unloaded cargo at Tien Sa Port in the central coastal city of Danang. This vessel, registered in Hong Kong, can carry 1,808 twenty-foot equivalent units (TEUs).

This year Danang Port, including Tien Sa Port and its subsidiaries, aims to increase all production and business indicators by 7% against 2023, along with 3% growth in the average income of workers compared to the previous year.

Vietnam's manufacturing expected to grow in 2024

Thanks to hopes for a recovery in demand both domestically and in export markets, plus business expansion plans, manufacturing is forecast to increase this year, according to S&P Global.
 
The S&P Global Vietnam Manufacturing Purchasing Managers' Inde (PMI) posted 48.9 points in December, remaining below the 50 and signalling a fourth consecutive monthly decline in business conditions in the sector. That said, the index rose from 47.3 points in November to point to a softer rate of deterioration.

The health of the sector worsened through much of 2023, improving only in February and August. The average PMI reading across the year was the lowest since the COVID-19 pandemic outbreak in 2020.

The latest decline in operating conditions again reflected a subdued demand environment, with total new orders down for the second month running in December. The pace of reduction eased from that seen in November, however, as new export orders neared stabilisation.

Anecdotal evidence suggested that recent price rises had deterred customers and contributed to the latest reduction in new orders. Responding to these signs, manufacturers limited the extent to which they raised their selling prices at the end of the year, hiking charges only fractionally and to the least extent in the current five-month sequence of inflation.

The marginal nature of the rise in selling prices contrasted with that seen for input costs, which continued to increase markedly and at a pace that was little-changed from the nine-month high seen in November.

According to respondents, higher input costs often reflected increases in prices for electricity and oil, plus exchange rate weakness. With new orders decreasing in a challenging demand environment, manufacturers cut their production volumes again in December, extending the current sequence of decline to four months

However, hopes for growth of manufacturing output in 2024 meant that firms kept their employment and purchasing activity broadly stable in December despite falls in new orders. In both cases, the broad stability at the end of the year represented an improvement from modest reductions in November.

Andrew Harker, economics director at S&P Global Market Intelligence said, “The final month of the year was indicative of the picture for much of 2023 in the Vietnamese manufacturing sector, with subdued demand limiting production volumes. Firms responded to demand weakness by restricting price rises in December to try and help stimulate new business. This was despite a further marked increase in their own input costs."

Attention now turns to the prospects for 2024, with firms still optimistic on balance that output will expand. This led to broad stability of employment and purchasing activity despite the reductions in new orders, as manufacturers attempt to maintain capacity in the hope of better days to come, he said.

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