Vietnam’s exports expanded about 13.8% year-on-year in the first half of this year, and imports rose 18.4%, the Ministry of Industry and Trade (MoIT)’s Planning and Finance Department said at a press conference in Hanoi on June 19.

Bui Huy Son, head of the department, said exports strongly bounced back in the six-month period to reach some 188.97 billion USD, mainly driven by processing and manufacturing with 159.92 billion USD.

The total export-import value hit 369.59 billion USD, a year-on-year rise of 16.03%, with a trade surplus of 8.4 billion USD.

The agency, however, pointed to uneven recovery in industrial production, along with difficulties in energy production and supply, especially electricity and oil and gas, due to price fluctuation in both domestic and international markets.

Besides, rising prices, particularly those of farm produce and energy, and surging shipping rates remain obstacles to exports, it said, noting the pressure of trade remedies investigations and technical barriers on some key export items to big markets like the European Union (EU) and the US.

Deputy Minister Nguyen Sinh Nhat Tan said to complete targets set for the second half and the entire year, the sector will continue implementing assigned tasks concertedly and effectively.

The ministry will work to perfect relevant policies and regulations, while rolling out solutions to facilitate production and ensure the stable supply for exports and the domestic market as well as energy security, he said.

Efforts will be made to accelerate public investment disbursement, and handle bottlenecks to soon put in place key projects in the fields of electricity, oil and gas, processing and manufacturing, and mining, he added.

The ministry will also propose the Government issue more tax incentives in support of production and business, the official said, adding that it will continue cooperation with FDI firms, big enterprises and international organisations to enhance connectivity with domestic businesses, raise capacity for Vietnamese suppliers, and help those operating in support industries join the global value chain./.

Vietnamese GDP growth unlikely to fulfill 6.5% target this year: VEPR

Despite a bright economic outlook for this year, Vietnamese GDP growth is unlikely to achieve the target of 6.5% set by the National Assembly (NA) due to internal and external impacts, said Nguyen Quoc Viet, deputy director of the Vietnam Institute for Economics and Policy Research (VEPR).

Viet made the statement during a workshop held on June 20 in Hanoi to unveil the Vietnam Annual Economic Report 2024.

According to details set out in VEPR’s report, the Vietnamese economy in the second half of the year is expected to grow better compared to the same period from last year due to the acceleration of public investment disbursement and a rebound in exports, as well as the Government’s support policies aimed at removing difficulties for businesses.

VEPR experts also put forward three growth scenarios at the workshop. In the first scenario, the country is projected to fail to achieve the GDP growth target of 6.5% due to a contraction in the public sector coupled with weak internal and external consumer demand.

Furthermore, the risks of increasing the exchange rate in the second half of the year are fueled by inflationary pressure along with a general reduction in investment by the private sector.

In the second scenario, the country’s GDP growth is forecast to reach 5.85%, with the inflation rate being at 4.5%. Indeed, the average annual VND exchange rate depreciates at between 5% and 6% this year.

Public investment disbursement meets the set target while foreign direct investment (FDI) is anticipated to not see any unusual fluctuations in the second half of the year.

In the third scenario, the GDP growth is expected to stand at 6.01% with a policy adjustment which seeks to reduce the difference in interest rates between domestic VND and strong foreign currencies in the international market.

In this scenario, public and private investment will witness positive signs thanks to improved investment climate and effective control of inflation at 5%.

As a means of achieving the economic development goals, the VEPR recommends that priorities should be given to fiscal policies, including monetary policies and the efficiency of public investment disbursement in the remaining months of the year.

Economists also proposed moving to extend several policies in a bid to support firms and people for the 2024-2025 period, whilst simultaneously promoting the aggregate demand in the economy and accelerate credit growth.

They also suggested moving to extend the current 2% VAT reduction policy until the end of 2024 or June, 2025.

In the medium and long term, there should be more credit packages for enterprises to invest in sustainable production, while simultaneously promoting digital transformation and increasing the application of green technology in production activities, think tanks stressed. 

Binh Duong records impressive economic growth in H1

Binh Duong province posts gross regional domestic product (GRDP) growth of 6.19% in the first half of 2024, much higher than the figure of 3.55% this southern industrial hub recorded in the same period last year.

Upturn has been seen in many sectors, with industry - construction expanding 5.81%, service 7.36% and agro-forestry-fisheries 3.29%, local authorities reported.

Particularly, the province has seen remarkable recovery in exports with revenue estimated at nearly 16.3 billion USD during the first half, a year-on-year rise of 10.3%.

In terms of investment, although the province has enjoyed a 12.1% increase in domestic investment to over 27 trillion VND (1.06 billion USD), the attracted foreign direct investment is only equal to 64.4% of that in the same period last year due to common difficulties in the global investment environment.

So far, Binh Duong has fulfilled only 24.7% of this year's public investment disbursement plan assigned by the Prime Minister and 17.1% of the target set by the provincial People’s Council, mostly due to mechanism, policy and administrative procedure bottlenecks.

Ngo Van Mit, Director of the provincial Statistics Office, said that in order to achieve the 8% growth target for 2024, Binh Duong needs to achieve economic expansion of 8.5% in the third quarter and 10.7% in the fourth quarter.

Chairman of the Binh Duong People’s Committee Vo Van Minh said that to reach the growth target for this year and maintain its role as one of the key economic hubs of the country, the province will work to come up with specific and effective solutions, from enhancing the investment quality, improving the business environment to promoting sustainable development in each sector.

Alongside, the province will continue to speed up the disbursement of public investment capital and increase its competitiveness, he added./.

Conferences ponder over how small firms can get unsecured bank loans

The inability to get loans without collateral is one of the main hurdles to doing business for small and medium-sized enterprises (SMEs) during difficult economic situations.

At numerous conferences on lending to businesses, experts have reiterated that it is very important for SMEs to get bank loans.

In the country, 85-90% of enterprises are small- or micro-sized and have great difficulty getting credit, with only 40% managing to do so.

Banks are wary about lending to SMEs and their ability to repay.

Tran Trung Long, from Ho Chi Minh City's Tan Binh district, the owner of a coffee shop, said he wanted to expand his business but could not get a bank loan since he had no assets to mortgage. He also needed to furnish business plans, which he lacked.

As a result, he was forced to borrow from other sources at high interest rates.

Small businesses like his are caught in a vicious cycle: they are too small for banks to lend to but cannot get bigger without resources.

According to Nguyen Anh Tuan, Director of Khanh Trang Seafood Processing Company, after mortgaging all assets to sustain their operations, the only recourse for SMEs is to get unsecured loans, but they are often inaccessible because of procedures and documents that are hard to fulfil.

On the other hand, Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam’s HCM City Branch, pointed out that banks had to ensure compliance with credit and other regulations to mitigate risks of bad debts, and many small businesses did not qualify.

But experts wanted banks to revamp lending terms to provide long- and medium-term unsecured loans to SMEs, improve their risk management mechanisms and lower the bar for unsecured loans, especially newly established businesses.

SMEs could merge to expand their size and reputation to be able to borrow or seek other sources of funding such as initial public offerings on the stock market, they added./.

Sluggish progress in state-owned enterprise equitisation

None of the 19 enterprises that had their equitisation plans approved have managed to reach their target goals during a one year period, a report from the Ministry of Planning and Investment (MPI) showed.

The Prime Minister had previously approved a plan for 2022-2025 that called for the equitisation of 19 enterprises and the reorganisation of five enterprises nationwide.

Out of those 19 with approved equitisation plans, only five have so far established steering committees and working groups to oversee the process. The remaining 14 enterprises are still in the preparatory stages of implementation.

The report cites various obstacles faced by the enterprises, hindering their progress. For example, NEAD Co., Ltd (under the Ministry of Science and Technology) is struggling to determine the appropriate plan for utilising its land assets.

Other enterprises need to first resolve outstanding issues related to finance, assets and real estate reorganisation, before they can move forward with equitisation.

Regarding the five enterprises approved for reorganisation, three have already completed the merger process, while the other two enterprises are in the process of carrying out their reorganisation plans.

According to the MPI, the process of enterprise restructuring and equitisation of state-owned enterprises is still facing several obstacles and limitations. The main reasons cited for the slow progress are the delays in local authorities approving the appropriate land use plans, especially for enterprises that hold land across multiple localities.

The current legal regulations on state-owned enterprise equitisation do not fully cover all the complex scenarios that have arisen in practice, particularly regarding the determination of enterprise valuations.

The lengthy processes involved in assessing the value of land and other assets, as well as restructuring and handling land-related issues, have led to significant delays in completing the equitisation plans within the targeted timelines.

While the Law on Management and Use of Public Assets has been issued, the supporting guiding documents for implementation are still inadequate and lack specifics. This has impacted the ability of enterprises to properly restructure and handle public assets as part of the equitisation process.

Some enterprises are facing difficulties in their business operations, with owners holding negative equity and outstanding social insurance debts, affecting their process. These companies include TVET Equipment Co., Ltd under the Ministry of Labour, War Invalids and Social Affairs and Agrexport Hanoi Co., Ltd under the Ministry of Agriculture and Rural Development.

Additionally, some ministries and localities have not been actively implementing the equitisation of enterprises under their management. The process of developing and approving decisions related to equitisation is then prolonged.

According to the MPI, based on opinions compiled from ministries, sectors and localities, most units have asked for a continuation in implementing the equitisation plan or strategy for enterprises included in the 2022-2025 schedule.

Some localities have proposed developing a mechanism to increase the state's equity ratio in enterprises providing water supply, where the current state equity ratio is below 50%.

Alternatively, they propose to categorise the extraction, production and supply of clean water and urban and rural drainage as state-owned enterprises, with a state equity ratio of 65% or more. The purpose is to ensure the ability to control and effectively provide water supply to the people.

As a result, the ministry has proposed that the Prime Minister instructs ministries, sectors and localities to seriously and resolutely implement the equitisation and divestment plan for the 2021-2025 period as stipulated in relevant government decisions.

This is particularly important for some localities with many state-owned enterprises that need to be equitised and divested in the 2021-2025 period.

For enterprises that have not yet carried out equitisation, they need to urgently implement it. In case of any difficulties, they must report the specific issues and send them to the competent authorities for guidance on implementation./.

Russia’s Far East potiential destination for Vietnamese businesses: official

There is ample room to promote trade between Vietnam and Russia’s Far East, head of the Vietnam Trade Office Branch in the Far East region Nguyen Hong Thanh said in an interview with the Vietnam News Agency (VNA) ahead of the state visit to Vietnam by President Vladimir Putin.

Although the Far East is not a large market with a population of about 8.2 million, its trade turnover with the world is high, Thanh said, suggesting Vietnamese businesses consider increasing the export volume of key products to that market, such as farm produce, processed food, consumer goods, garment and textiles, footwear, electrical and electronic products, equipment and machinery.

In the last ten years, bilateral trade between Vietnam and the Far East has grown significantly, from less than 60 million USD in 2015 to nearly 300 million USD in 2023, he said.

He attributed the growth to efforts of the both sides' import-export business community, plus with the effectiveness of the Vietnam - Eurasian Economic Union (EAEU) Free Trade Agreement and maritime transport routes connecting Vladivostok port to Vietnam's ports, intermodal railway route from Vietnam's Gia Lam station to Chita station in Zabaykalsky Krai, Russia, via China.

Regarding economic and investment cooperation, Vietnam’s TH True Milk Group is building a grass growing farm and a milk processing plant in Yakovlev district in Primorie. With a total investment of up to 270 million USD, it is a symbol of economic and investment cooperation between the two sides.

TH True Milk’s project has been granted 15,000 ha and recognised as a member of the Mikhailovski priority development area.

Thanh said his office has been supporting Vietnamese businesses in seeking cooperation opportunities in the Far East in such fields as civil construction and industrial construction in major cities in the Far East, coal mining in South Sakhalin, fish and fishmeal processing in Kamchatka, wood processing in Khabarovsk, shipbuilding and ship repair in Bolsoi Kamen.

He said he expects that those cooperation projects will soon be realised, and more Vietnamese businesses will see the Far East as a potential investment destination and expand their operations in Russia and the Asia-Pacific region.

He hoped that the coming visit to Vietnam by Russian President Vladimir Putin will open connection channels on information between the two sides' enterprises, travel for businessmen and tourists, especially air routes linking the countries' localities, and help remove difficulties in payment – a pending barrier in promoting Vietnam-Far East economic, trade and investment ties./.

Vietnam attends Japan-ASEAN Startup Business Matching Fair in Thailand

Thirteen Vietnamese enterprises attended the Japan-ASEAN Startup Business Matching Fair 2024 held in Bangkok, Thailand on June 19.

The event gathered over 60 startup and innovation firms from Japan and five ASEAN member states of Cambodia, Indonesia, Laos, Thailand and Vietnam.

In his opening remarks, Japanese Ambassador to Thailand Otaka Masato emphasised that the fair, held annually since 2023, is an opportunity for startups to bring technologies related to ESG (Environment, Society and Governance), factory automation, health and logistics technologies to encourage sustainable business practices.

He expressed his confidence that seminars with the participation of leading e-commerce platforms from Cambodia, Indonesia and Vietnam at this fair will facilitate the expansion of sales and accelerate trade flows across Japan and the Association of Southeast Asian Nations (ASEAN).

In a video speech sent to the conference, Vu Quoc Huy, Director of the National Innovation Centre (NIC) under the Ministry of Planning and Investment, said that the centre is honoured to be the co-organiser of the Japan-ASEAN Startup Business Matching Fair this year.

According to Huy, in recent years, Vietnam has emerged as a regional beacon of innovation and startup ecosystem thanks to the Government's strong determination to use innovation as a driving force for sustainable development.

As a dynamic support centre for startups, NIC aims to not only nurture a vibrant and supportive ecosystem for Vietnamese startups but also promote linkages with global partners through actively participating in international forums.

Within the framework of the fair, startups introduced technology solutions in different fields such as agriculture, health, education, insurance, logistics, e-commerce, cybersecurity, and real estate management./.

Ministry to consider possible tax on gold transactions

The Ministry of Finance is to start a process to study the effect of a tax on gold transactions, said deputy minister of finance Nguyễn Đức Chi on Tuesday in Hà Nội.

As gold prices surged to a historic high before settling down last week, the press, economists, as well as members of the public, have voiced their concerns over the lack of a gold tax for transactions of the precious metal. Many asked why when there are taxes on other assets such as real estate and securities, there are none for gold transactions.

Chi said in considering the profound impact a gold tax could produce on society as a whole, the ministry must conduct a thorough study before sending a proposal on the matter to the government.

Economists have long maintained before granting the right to import gold into the market, with the State Bank of Vietnam (SBV) the only entity allowed to right now, taxing gold transactions is necessary to keep gold prices in control.

Prof. Nguyễn Thị Mùi, a member of the National Financial, Monetary Policy Advisory Council advised the central bank and the ministry to start building a tax policy for gold transactions.

She said a gold tax could significantly reduce demand for the precious metal among certain investor groups, especially those who speculate and hoard. A gold tax could also serve as the foundation for a fairer and more sustainable business environment, given that traders of real estate and securities are also subject to personal income tax.

Đặng Ngọc Minh, deputy director-general of the General Department of Taxation said gold trading is subject to the state's management policy, just like other economic activities.

In accordance with the Prime Minister's directives, measures have been taken to monitor the trading of the precious metal, including the use of electronic invoices. The Ministry of Finance (MoF) has recently proposed all gold transactions should be conducted via non-cash payment methods, Minh added.

According to the general department, nearly 55,000 businesses country-wide have started issuing electronic invoices, including 5,835 gold and silver traders, who have issued over 1.06 million of such invoices to date. 

Credit growth is bright spot for banking

As of June 14, credit growth has reached 3.79 per cent compared to the end of last year, marking a bright spot for the banking sector.

The information was released by the State Bank of Việt Nam (SBV) in a sector-wide online conference on promoting bank credit growth for the year on Wednesday.

However, challenges still abound in promoting credit growth in the banking industry heading into the third quarter.

The State Bank of Việt Nam (SBV) recently issued a document directing a number of solutions on credit and interest rates, requiring implementation of solutions and striving to achieve a credit growth rate of 5-6 per cent by the end of the second quarter this year.

Statistics show that in the first quarter of this year, seven out of 27 banks recorded negative credit growth, including some large banks.

But there are still many banks with a credit growth rate that is much higher than the industry average, such as LPBank, Techcombank, HDBank and MSB.

These banks are also showing good profits compared to the industry average.

Each bank has different strategies and competitive advantages to exploit market opportunities.

LPBank recorded the strongest credit increase of over 12 per cent, while Techcombank grew by more than 7 per cent and HDBank by 6.2 per cent. MSB's credit growth increased by more than 5.6 per cent.

For the banking industry, the rate of growth or the scale of credit expansion alone does not tell the whole story. Growth must be efficient, sustainable and stable to ensure prosperity for the bank not only in the present but also in the future.

A HDBank representative stated that early risk management policies have been implemented, helping the bank to mitigate adverse external impacts and ensure the maintenance of a stable and flexible operational framework.

The bank tops the industry in profitability, with a return on equity (ROE) reaching 26.7 per cent.

Continuous improvements in operational safety ratios also provide shareholders and investors with peace of mind amid numerous challenges.

Meanwhile, promoting digitalisation and optimising processes and operating costs are also key to improving the bank's operational efficiency over the past few years.

At HDBank, high growth targets and industry-leading ROE come with a strong optimisation of the Cost-to-Income Ratio (CIR), from 39.3 per cent in 2022 to only 31.7 per cent in the first quarter of this year.

At other banks like Techcombank, VPBank or especially at large network-operating banks like VietinBank, the CIR has also shown significant improvements in recent years, approaching around 30 per cent. This is considered optimal for banks effectively making a digital transformation in the region.

Besides strictly controlling risks and enhancing operational safety, strong digitalisation and optimisation of performance and operational efficiency are also necessary factors for sustainable growth goals among Vietnamese banks.

According to State Bank representatives at the conference, with drastic actions by the Government, Prime Minister and ministries in improving the business environment and coordinating to solve problems for businesses and people, credit growth is expected to increase in the last months of the year.

This forecast shows that the bright spots in the Vietnamese banking industry in enhancing efficiency and maintaining sustainable growth will likely continue. 

Hà Nội to host int’l exhibition on electronic components, smart manufacturing

An international exhibition on electronic components and smart manufacturing - the Global Electronic Intelligent Manufacturing Show – Việt Nam (GEIMS Vietnam) will be held in Hà Nội from November 28-30.

Jointly organised by Global Sources, a leading business-to-business media company and the Việt Nam Electronic Industries Association (VEIA), the event aims to showcase the most advanced technology and promote trade in the electronics manufacturing industry.

Covering 10,000 sq.m, the exhibition will gather 200 exhibitors from countries and territories across the world, including Việt Nam, China, the Republic of Korea, Taiwan (China) Japan, the US, Southeast Asia and Europe.

A variety of essential products and services, including electronic components, assembly and testing equipment, precision mechanics and new energy technologies will be displayed at the event.

According to Wilson Wu, Vice President of Global Sources, the exhibition marks a decisive moment for his company in promoting the development of the electronics manufacturing industry in Việt Nam with trade connection activities and supporting Vietnamese businesses in terms of supply, especially in the field of electronics manufacturing.

The exhibition will focus on providing comprehensive solutions for the electronics manufacturing industry to strengthen Vietnam's position, aiming to become the world's electronics hub, he said.

Đỗ Thị Thúy Hương, member of the VEIA’s Executive Board, said that the Vietnamese electronics industry still faces many challenges, but equally there are opportunities for businesses that know how to grasp them and who can use internal strengths to improve their competitiveness within the global market.

Under a memorandum of understanding signed on June 18, Global Sources and VEIA are committed to making the most of the expertise, resources and connection networks of both sides to build a comprehensive platform, helping local businesses access advanced technologies, high-quality components and new business opportunities. 

Đắk Lắk churns out top-quality cocoa products

Experts say that Đắk Lắk has the best cocoa in the country because of its ideal soil and climatic conditions for growing cacao.

Besides, the experience of growing the bean has been passed down for many generations here, giving Đắk Lắk a great advantage in growing it.

The province has 1,140 hectares under the crop, and grows 1,525 tonnes of it annually.

The districts with large cacao growing areas are Ea Kar, Ea Súp, Krông Ana, and Ea H’leo.

Cocoa is a good crop for growing with fruit and forest trees since they do not compete much with the others, enabling farmers to earn extra incomes.

La Thị Thùy Linh, a cocoa farmer in Ea Kar District, said she grows the bean on nearly a hectare and produces 2.5 tonnes (2,500kg) of dry seeds every year.

Prices have doubled since last year to VNĐ150,000-VNĐ180,000 (US$6-7.2) per kilogramme, giving her a profit of VNĐ250 million ($10,000) this year.

According to Linh, prices increase every year while her harvest is fully bought by the Ea Kar District Cooperative.

Võ Văn Sỹ, a farmer in Krông Ana District, said he earned a profit of nearly VNĐ135 million ($5,400) this year though his cocoa output fell by nearly half due to a prolonged drought, thanks to the sharp increase in prices.

Thái Đăng Đàm, chairman of the Ea Kar District Cooperative, said the cooperative’s One Community One Product (OCOP) items made from the bean include cocoa powder, butter, chocolate, and wine.

Realising the potential of cocoa, the cooperative plans to increase the area under the crop by 10-15 hectares per year and adopt technology.

The global demand for cocoa is currently very high and easily exceeds. But Vietnamese businesses only export raw cocoa beans and do processed products.

Đắk Lắk has six cocoa processing companies that export to Japan and the Europe.

But with their main product being fermented dried cocoa beans, they do not earn much money.

To boost farming of the crop, the province is promoting research into new high-yield varieties, fostering links between production, processing and consumption and encouraging businesses to invest, innovate processing technologies, diversify their products, and meet international standards to take Vietnamese cocoa products to the world.

Trương Ngọc Quang, director of Nam Trường Sơn Cocoa Company Limited, said cocoa prices are increasing beyond businesses’ expectations.

It has tied up with two cooperatives that have a combined 250ha in Krông Ana, Ea Kar and Buôn Đôn districts, and export 200-250 tonnes of the bean a year.

To increase exports, Đắk Lắk is developing a cocoa development project based on its agricultural restructuring plans.

Its goal is to enhance the value of products made from the bean and build brands to meet the increasing demand in global and domestic markets.

Cocoa development also needs to be sustainable, adapt to climate change and reduce carbon emissions.

In addition to developing high-quality and added-value products from cacao trees, many farms are also offering eco-tourism to attract visitors.

Tourists can try picking the cacao fruit, taste smoothies made from its pulp, a special treat that can only be found at farms, and observe the process of making cocoa. 

Ministry proposes removing FiT for more competitive renewable energy prices

It’s time for Việt Nam to develop more competitive pricing for the renewable energy market, as the feed-in-tariff (FiT) mechanism is no longer appropriate, according to the Ministry of Industry and Trade.

FiT was introduced to support early development of renewable energy sources by providing a guaranteed, above-market price for producers to sell energy back to the grid.

The ministry said that FiT should be applied within a certain period of time in order to encourage investments in renewable energy.

Now, Việt Nam has seen a significant rise in the number of renewable energy projects. It’s time to develop a more competitive pricing mechanism to increase efficiency in the system and ensure competition as well as a stable and sustainable energy supply.

A renewable energy price framework that is flexible and appropriate to developments in each period should be planned, according to the ministry.

In Việt Nam, FiT prices are valid for 20 years. For solar projects that were put into operation before December 21, 2020, the FiT price is 7.09 cents per kWh for ground-mounted solar power projects, 7.69 cents for floating solar power and 8.38 cents for rooftop solar.

For wind power projects that started operations before November 1, 2011, the FiT price is 9.8 cents per kWh for offshore and 8.5 cents for onshore wind energy.

According to Việt Nam Electricity, as of May 23, 81 out of 85 renewable energy projects with a total capacity of 4.597 MW had sent documents for electricity price negotiations.

Negotiations for power purchase agreements are completed for 63 projects with a total capacity of 3.429 MW.

Among them, 29 projects with a total capacity of 1,577 MW completed procedures to begin commercial operations and generate electricity to the grid with a total output of around 2.597 billion kWh as of May 23. 

Masan makes it to inaugural Fortune Southeast Asia 500 list

The Masan Group Corporation (MSN) has been named in Fortune magazine’s first ever Fortune Southeast Asia 500 list. 

The largest companies in the region are ranked by revenues during fiscal 2023, and Việt Nam is represented by 70 companies.

As a major player in the consumer goods manufacturing and retail sector, Masan Group’s revenues exceeded US$3.2 billion last year.

The conglomerate operates across a number of sectors such as retail, consumer goods manufacturing, livestock processing, telecommunications, and mining.

The Masan stock has received a thumbs-up from both domestic and international financial institutions in 2024. 

J.P. Morgan has identified the Masan stock as a top investment priority in the Vietnamese market, projecting significant growth potential with a target price of VNĐ102,000 in 2024. 

The assessment is based on the company’s strong presence in the retail market and strategic capital allocation towards the consumer and retail sectors.

HSBC has recommended buying the stock with a target price of VNĐ98,000, while Vietcap Securities has a target price of VNĐ102,800. 

The stock is listed on the HCM City Stock Exchange and is in the VN30 group of blue-chip stocks, representing a substantial portion of its market capitalisation and trading value.

By attracting foreign capital and seizing funding opportunities from the international investment market, Masan and its stock have positioned themselves as appealing investment options. 

The recent $250 million equity investment from Bain Capital, along with previous investments from various foreign funds and corporations such as KKR, SK Group, the Abu Dhabi Investment Authority, SeaTown Holdings, and Alibaba underscore the confidence in Masan.

Besides, Masan’s dedication to environmental, social, and governance (ESG) initiatives has earned it a place in various prestigious rankings and underscoring its commitment to sustainable business practices. 

Through corporate social responsibility programmes and investments in wastewater treatment systems, it actively contributes to environmental protection and community development while upholding high standards of operational excellence.

Fortune’s attention to the region coincides with Southeast Asia’s increasing importance in the global economy due to shifting supply chains and the rapid development of its economies. 

The list includes companies from seven Southeast Asian countries: Indonesia, Thailand, Malaysia, Singapore, the Philippines, and Cambodia. 

Indonesia leads with 110 companies followed by Thailand with 107, Malaysia with 89, Singapore with 84, Việt Nam with 70, the Philippines with 38, and Cambodia with two.

The top 10 in it reported revenues of $650 billion, or a third of the 500 companies’ $1.8 trillion. 

The smallest in the list had revenues of $460.8 million.

The energy sector had the highest revenues of $590.7 billion. 

Banking, with $242 billion, was the second largest sector. Notably, nine banks ranked among the top 20 profitable companies.

Overall, revenues and profits of companies in the list contracted in 2023. But, caused by weak energy markets, this was overshadowed by the remarkable growth stories in a number of other industries. 

Fortune, a global media company, assesses corporate performance through stringent benchmarks and ensures companies’ accountability across regions worldwide. 

Techcombank raises an additional VNĐ5 trillion

Techcombank successfully issued 5,000 bonds under the code TCBL2427005 on June 11, 2024, with each bond valued at VNĐ1 billion. This three-year bond batch will mature on June 11, 2027 and carries an interest rate of 4.6 per cent per year.

This marks the fifth bond issued by Techcombank this year and is also the largest volume issued.

Since the beginning of the year, Techcombank has successfully raised VNĐ14 trillion through bond channels.

In parallel with new issues, Techcombank has also been active in early bond buybacks. Specifically, the bank has prematurely settled bonds coded TCBL2225002, TCBL2225001 and TCBL2225004. Over the past six months, Techcombank spent VNĐ2.95 trillion on early bond buybacks.

According to FiinRatings, banks are actively issuing new bonds to compensate for the bonds bought back, which will mature next year, thereby restructuring medium to long-term capital sources to comply with regulations.

In terms of Techcombank's business performance, in the first quarter of 2024, the bank recorded a pre-tax profit of nearly VNĐ7.8 trillion, an increase of 39 per cent. Compared to the pre-tax profit target of VNĐ27.1 trillion set for the whole year, Techcombank achieved nearly 29 per cent just after the first quarter.

As of the end of the first quarter of 2024, the bank's total assets increased slightly by 4 per cent compared to the beginning of the year, reaching VNĐ885.6 trillion. Customer deposits remained steady at VNĐ458 trillion. The non-performing loan ratio/total outstanding loans decreased slightly, from 1.16 per cent at the beginning of the year, to 1.13 per cent.

VPS Securities ordered to halt fractional real estate investments

The State Securities Commission (SSC) has told VPS Securities Company to immediately cease the distribution of securities certificates in the form of fractional real estate, said an official from SSC.

VPS has recently partnered with Fnest JSC to implement an approach where real estate is divided up into shares and sold to investors through the VPS SmartOne application, with a minimum cost of VNĐ10,000 (US$0.39).

Fnest and VPS have undertaken the subdivision of apartments and villas for sale to investors, allowing them to own a portion of the real estate with a minimum investment of only VNĐ10,000 per share.

After purchasing Fnest shares, investors have two options, sell the fractional real estate on the secondary market, similar to selling stocks, or wait for Fnest VPS to sell the real estate upon achieving expected profits and distributing profits based on the shares held.

For example, a VNĐ10 billion property would be divided into one million Fnest shares. Investors can acquire these fractional shares and benefit from the appreciation in value as well as the professional management and operation activities conducted by specialised organisations.

During a press conference held by the Ministry of Finance on Tuesday afternoon, Bùi Hoàng Hải, Vice Chairman of the SSC, said there are currently no specific regulations in place for this form of fractional real estate.

As a result, the SSC requested that VPS halt these fractional real estate share sales in order to ensure legal compliance and investor safety.

The SSC added buyers are essentially investing in a fraction of the real estate, rather than having any complete ownership.

Deputy Minister of Finance Nguyễn Đức Chi stated that the ministry has directed the SSC to closely monitor the operations of securities companies.

While there is no explicit prohibition at present, services must operate within licensed sectors and industries.

If they fall outside the authorised scope, their activities will need to be halted for a comprehensive assessment by the regulatory authorities.

Fnest, founded in November 2022, is headquartered in Long Biên District, Hà Nội. Fnest specialises in real estate services such as consulting, brokerage, auctions and land use rights.

Meanwhile, the VPS SmartOne app offers various properties for sale, including villas, shophouses and condominiums. Investors pay a transaction fee of VNĐ30 per Fnest for trading in these fractional real estate shares.

Currently, all nine real estate codes have been sold, but secondary trading options are still available. 

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