HCMC needs to develop model for hi-tech human resourc

Vietnam’s economy is projected to perform better than expected in the final quarter of the year if the State Bank of Vietnam (SBV) continues to provide monetary policy support, according to a recent report by HSBC Vietnam.

The report has revised the economic growth forecast for Q4 by 0.1%, now estimating it to be 7.3%. This positive outlook can be attributed to the SBV’s efforts in boosting the economy by reducing financing costs for businesses and households through relaxed monetary policy. This move aims to stimulate business investments and support consumer confidence.

In the first half of the year, the SBV has already lowered key interest rates by 150 basis points and plans to further reduce them by an additional 50 basis points in Q3. These actions will bring Vietnam’s key interest rates down to 4%, undoing all tightening measures implemented in 2022 and aligning with the rate cuts made during the pandemic.

However, if economic growth rebounds sooner than expected, additional key interest rate cuts may not be necessary in the second half of the year.

HSBC predicted that the economy will grow by 5% in 2023, which is 20 basis points lower than the previous estimate, mainly due to the possibility of a prolonged and more severe trade downturn.

So far this year, Vietnam’s exports have declined by over 10% compared to the previous year, with significant drops seen in key sectors such as electronics, textiles and footwear, machinery, and wooden furniture. Exports to the U.S., Vietnam’s largest export market with a 30% share, have plummeted nearly 20% year-on-year.

Nevertheless, the services sector continues to show resilience, helping alleviate the economic challenges. However, there is a noticeable disparity between high-value items like automotive sales and tourism-related services.

Car sales, for instance, have experienced a year-on-year decline of over 40% on a 3-month-moving average, similar to the figures recorded during the 2021 lockdown, indicating the impact of weaknesses in the external sector on private consumption.

On the tourism front, Vietnam has seen almost one million tourists in the past two months, equivalent to 70% of the levels in 2019. While Korea has rebounded to 80% of pre-pandemic levels, China stays at only 35%.

However, the situation is expected to improve as Vietnam has increased the number of direct flights to China, currently operating at around 40% of 2019 levels. This places Vietnam as the second highest in ASEAN after Singapore, which is at 53%.

Furthermore, efforts to boost tourism, such as considering relaxation on visa restrictions by the National Assembly, are expected to provide a significant boost in the fourth quarter.

Business community in HCMC ready for new mechanisms, policies

Businesses in HCMC are willing to work with the municipal authorities to implement breakthrough mechanisms, policies for the sustainable growth of the city and the country in general.

Expressing his eagerness for new mechanisms and policies to be adopted in HCMC, President Tran Viet Anh of the Board of Directors of Nam Thai Son Import-Export JSC. said that these new legal documents are going to help the city become more active in attracting potential resources investments.

He admitted that high-quality human resources and experts wishing to work in HCMC used to encounter policy-related barriers. The newly approved resolution for HCMC’s growth, with breakthrough mechanisms and policies for the attraction of more investments and social resources, human resources from outside the city (especially leading experts and foreign professionals of all fields) will greatly boost the inner power of HCMC itself as well as people from other places in their startup activities.

He also commented that major businesses, investors, and foreign markets will see a new HCMC after the implementation of this resolution. Companies sited in the city are waiting for hi-tech investors to earn a chance of market expansion for further development. Therefore, he believed that these enterprises will experience positive changes from the end of this year.

Deputy General Director Nguyen Quang Thanh of HCMC Finance and Investment State-owned Co. (HFIC) shared that the draft resolution to replace Resolution No.54 stipulates that HCMC People’s Council can allocate investments from the city’s budget with preferential interest rates for socio-economic development projects borrowing money from HFIC.

The support under the investment stimulus scheme of HCMC has encountered obstacles for the last 2 years. The new resolution can reactivate the scheme while doubling the maximum support level to VND200 billion (US$8.5 million). This will be a precious chance for businesses to obtain sufficient financial resources for development.

General Director Le Huu Nghia of Le Thanh Construction – Commerce Co. Ltd. expressed his joy when the new resolution has a special section for social housing. Real estate enterprises are experiencing much trouble due to the gloomy market. In addition, many businesses do not have products to offer to true house buyers. The high loan interest rate of 14 percent also prevents purchasers from carrying out housing deals.

He hoped that the new resolution can help HCMC basically address these issues as well as tackling law-related problems to that the real estates industry can bloom again. More importantly, the new resolution is expected to accelerate legal procedures for social housing projects, thereby creating more apartments to satisfy the public’s demands and increase the living standards of city workers, especially low-income ones.

The allocation of the city’s budget to Vietnam Bank for Social Policies (VBSP) – HCMC Branch for loans to eliminate poverty and offer jobs to laborers has so far witnessed various difficulties, said its Director Tran Van Tien. Despite trying to seek several capital sources, VBSP can only answer 20 percent of the needs. The new resolution to replace Resolution No.54 stipulates that HCMC can send public investments from local budgets to VBSP – HCMC Branch for these purposes.

Director Tien voiced the wish of VBSP and the Steering Committee of the Sustainable Poverty Reduction Scheme that the Departments of Planning & Investment, Finance quickly advise HCMC People’s Committee to prepare suitable capital allocation plans and present them in the upcoming meeting of HCMC People’s Council this July.

By doing that, his bank can obtain necessary capital this August to disburse at the end of 2023 for supports to the mentioned scheme. This will in turn help vulnerable people to overcome economic obstacles at present. It will also aid in eliminating illegal credit activities in HCMC.

Chairman Nguyen Ngoc Hoa of HCMC Union of Business Associations (HUBA) agreed that the introduction of the new resolution to replace Resolution No.54 can give way for breakthroughs in HCMC, helping the city to grow qualitatively. The HCMC business community has thoroughly studied that critical document and is now ready to implement it, in hope of increasing the competitiveness against foreign enterprises.

HUBA has actively worked with the HCMC Department of Planning and Investment and relevant agencies to prepare certain content related to businesses in the city. New features compared to the city’s existing stimulus program have been studied. HUBA is also filtering eligible enterprises and key investment projects to allocate capital from the city budget right when the new resolution is approved.

Finally, HUBA has called upon leading businesses of each industry to discuss possible opportunities brought by the new resolution for the general growth of HCMC as well as the country.

South Korean insurance corp continues acquiring stakes in Vietnam  
  
The move marks the expansion of South Korea's leading non-life insurance service provider in Vietnam and shows the potential of the Vietnamese non-life insurance market.

South Korea's DB Insurance will acquire three-quarters, or 75 million shares, of Vietnam's Saigon-Hanoi Insurance (BSH), the country's ninth-largest property and casualty insurer.

The transaction will take place on the Unlisted Public Company Market (UPCoM). BSH was given the green light in May to have up to 100% foreign ownership.

Saigon-Hanoi Securities (SHS), a member of SHB, is now BSH's largest shareholder with 9.98 million shares.

The move marks the expansion of South Korea's leading non-life insurance service provider in Vietnam and shows the potential of the Vietnamese non-life insurance market. 

In 2015, DB Insurance bought a 37.3% stake in Post and Telecommunication Insurance (PTI), an insurance arm of state-owned telecom giant Vietnam Post and Telecommunications Corporation (VNPT).

Earlier this year, DB Insurance acquired a 75% stake in the Vietnam National Aviation Insurance Corporation (VNI) after the latter raised the maximum foreign ownership limit to 100%.

According to the General Statistics Office, insurance premiums in Vietnam grew 6.8% year-on-year to more than VND59 trillion (US$2.53 billion) in January-March this year.

Life insurance premiums increased slightly by 3.1% year-on-year to nearly VND40 trillion (US$1.69 billion), and non-life insurance premiums increased by 15.2% year-on-year to nearly VND20 trillion (US$846.79 million).

According to GlobalData, the Vietnamese insurance sector will record a compound annual growth rate (CAGR) of 8.5% per annum, and the sector scale will expand to VND90.24 trillion (US$3.5 billion) from VND60.15 trillion (US$2.6 billion) in 2026.

Vietnam's five biggest non-life insurers include Bao Viet Group (BVH), PetroVietnam Insurance (PVI), and PTI. These companies account for 53.27% of the market’s total revenue.

Viet Nam seedless lemons dominate Gulf markets

Viet Nam's seedless lemons are widely available in supermarkets and popular markets of Gulf countries.

Many Vietnamese agricultural products have created a foothold in Gulf markets, the most prominent of which is seedless lemons. Viet Nam's seedless lemon currently has an absolute competitive advantage in many markets in this region.

Specifically, the Ras Al Khor wholesale market imports Vietnamese seedless lemons weekly. Although the host countries have a tremendous demand for lemons, businesses in Dubai hardly import seedless lemons from anywhere other than Viet Nam.

Mr. Venkat Addala - Fuchsiana General Trading, Dubai, noted that Vietnamese lemons now have almost no competitors.

"Lemons from Viet Nam are favored because of their outstanding flavor compared to lemons from other countries. We are currently importing them for re-export to other Gulf countries such as Saudi Arabia, Oman, Bahrain or Qatar", Mr. Mohammed Naimath - Director of Zin Food Company, Dubai, shared.

Seedless lemons from Viet Nam are green lemons. Besides, yellow lemons in the Gulf market can still be imported from India or South Africa.

However, for Middle Eastern people, green and yellow lemons are irreplaceable fruits. Green lemon is for dishes that need flavor and especially for drinking water. Green lemons are now making a mark of Viet Nam in supermarkets here.

According to Mr. Nguyen Duc Hoang - Director of Jamal Al Jasmin Company, Dubai, Vietnamese lemons are famous because they are seedless and have a pure fragrance. In particular, the consumption of lemons increases in the hot season, when people prefer to drink lemonade.

Al Maya is one of the leading retail groups in Dubai. Recently, the group has paid much attention to Vietnamese agricultural products. Starting with rice and seedless lemons imported from Viet Nam, the success has made Al Maya now expand into importing Vietnamese coconuts, guava, or mangoes.

Mr. Kamal Vachani - Director of Al Maya Group, said many customers want to buy Vietnamese agricultural products. It gives Al Maya the confidence to import more agricultural products and other foods. In particular, lemon is an essential product from Viet Nam.

Vietnamese and Japanese businesses enhance trade connection

A conference on trade connection between Vietnamese and Japanese businesses was held in Tokyo, Japan, as part of a broad array of economic exchanges and co-operation activities taking place on the occasion of the 50th anniversary of diplomatic relations between both sides.

As part of his opening speech at the conference, Ta Duc Minh, trade counselor of the Vietnamese Embassy in Japan, emphasised that in recent years both countries represent each other's important trade partners. The two sides therefore have an import-export structure that is not directly competitive but complementary.

Japan is in need of importing agro-forestry-aquatic products, processed foods, consumer goods, and apparel which are all the strengths of the Vietnamese side.

Furthermore, the two countries are members of many free trade agreements, a factor which creates more opportunities for them to expand trade links, especially to boost exports and participate more deeply in the supply chain of the region and the wider world.

Nakamura Makoto, an economist at the Manufactured Imports and Investment Promotion Organization (MIPRO) under the Japanese Ministry of Economy, Trade and Industry (METI), said all export products from Vietnam to the Japanese market must meet strict regulations relating to the origin of raw materials and production processes.

This therefore requires close co-operation between businesses of the two countries in order to be able to bring Vietnamese products and goods to Japanese consumers, he went on to say.

Within the framework of the conference, Vietnamese firms introduced many sample products, such as garments, ready-made foods, fruits, and consumer goods, to Japanese enterprises to experience directly, thereby seeking further business co-operation opportunities.

Apart from bringing products ensuring high standards of quality and food safety, local businesses also paid close attention to environmentally-friendly products.

Japan currently represents the most important economic partner of the Vietnamese side, the largest ODA donor, the second labour co-operation partner, the third investor, the third tourism partner, and the nation’s fourth largest trading partner.

An increasing number of Vietnamese goods are present within the Japanese market and are favoured by Japanese consumers

Along with promoting the export of strong products, Vietnamese firms tend to understand and meet the needs of Japanese consumers, such as ready-made, time-saving, and hygienic foods.

With regard to handicraft products, Vietnamese businesses aim to provide "semi-finished" products that Japanese people can make use of to design products according to their preferences.

The conference is therefore viewed as an opportunity for both nations’ enterprises to seek and promote business links, especially to bring more strong and key products of Vietnam to penetrate the Japanese market on the basis of capitalising on the Vietnam-Japan Free Trade Agreement (VJEPA).

Credit growth still low in first half of 2023: SBV

Credit growth since the start of 2023 remains low, Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu said, blaming that fact on both subjective and objective causes.

The SBV set this year’s credit growth target for banks at 11%, but total outstanding loans in the economy had reached some 12.32 quadrillion VND (over 523.9 billion USD) as of June 15, increasing 3.36% from the end of 2022 – a relatively slow pace compared to previous years, Tu told a press briefing on June 21.

He pointed to both subjective and objective causes, noting that businesses have been struggling with difficulties due to the shortages of orders, disrupted money flows, and big unsold inventory, which have forced lay-offs at some companies.

Besides, soaring material prices, declined purchasing power in both domestic and foreign markets, and difficulties facing some sectors like real estate have added further complications, he went on.

In the first half of 2023, the SBV has reduced interest rates four straight times, by 0.5 - 2% per year. It has also continued to encourage credit institutions to minimise expenses to stabilise lending interest rates to aid businesses’ recovery and development.

In addition, to improve people and businesses’ credit access and protect their rights and legitimate interests, it will also step up connecting banks with companies, order credit institutions to facilitate customers’ credit access, diversify banking products and services, and streamline lending procedures, he added.

Vietnam Report announces Top 10 prestigious banks

The Vietnam Report JSC has recently published the list of the top 10 prestigious banks in Vietnam in 2023, which is its annual activity to recognise efforts to develop the prestige and brands of the financial-banking sector.

The ten banks honoured as the most prestigious commercial banks in the country in 2023 are Vietcombank, VietinBank, Techcombank, BIDV, Military Bank, VPBank, ACB, AgriBank, TPBank, and VIB.

Meanwhile, the list of the ten most prestigious private joint-stock banks comprises Techcombank, VPBank, ACB, TPBank, VIB, HDBank, Sacombank, SHB, MSB, and SeABank. 

Vietnam Report General Director Vu Dang Vinh said that as of the end of May, total credit increased by 3.17% from the end of 2022, significantly lower than the 8% recorded in the same period last year. The before-tax profit of the bank systems in the first quarter was lower than expectations.

Vietnam Report's survey results in 2023 show that there is no expectation of breakthrough growth in the last six months of this year compared to the same period last year. Instead, most banks believe that in the second half of 2023, the entire industry will be in a stable state, maintaining a growth rate of 44.2% compared to 42% recorded in the survey last year.

Vinh added that at the 2023 Annual General Meeting of Shareholders, many banks set business plans for 2023 cautiously.

Notably, all banks adjusted their profit plans this year. This shows that 2023 is seen by the banking industry as a challenging year when they have to continue to share resources and difficulties with businesses amid the slowing global economic growth, while problems such as interest rates, bad debts, frozen real estate and bond markets that have not been fully reflected in last year's business results will have a significant impact on the banks' operations this year.

Based on its survey results, Vietnam Report points out challenges of the banking industry in 2023 including increasing bad debt, inflation risk, low global economic growth, and recession of the stock, real estate, and bond markets. In addition, the emergence of Fintech companies with fierce competition with banks is also a major challenge that banks have to face in the coming time.

Vietnam seeks stronger trade ties with Indonesia

Vietnamese and Indonesian enterprises specialising in various fields like food, beverages and renewable energy gathered at a business matchmaking seminar in Jakarta on June 21.  

The event was jointly held by the Vietnamese Ministry of Industry and Trade (MoIT), the Vietnamese Embassy in Indonesia, and the Jakarta Chamber of Commerce and Industry (Kadin Jakarta).

In his opening remarks, Vietnamese Ambassador to Indonesia Ta Van Thong affirmed that the two countries boast great potential for cooperation in business and investment.

Last year, two-way trade reached 14.17 billion USD, he said, adding that Indonesia’s investment in Vietnam was valued at about 620 million USD, and that from Vietnam stood at 50 million USD.

However, the diplomat pointed out that the figures remain a far cry from the potential as well as other optimal conditions brought about by bilateral legal documents which have been almost done, close geographical distance, the ASEAN Trade in Goods Agreement (ATIGA) and free trade agreements between ASEAN and partners, along with direct flights between the two countries.

Thong expressed his hope that more partnerships will be set up by the two countries’ enterprises, and more Indonesian firms will invest in Vietnam.

Tran Quang Huy, Director of the MoIT’s Asia-Africa Market Department, noted that Indonesia is now Vietnam’s third biggest trade partner in ASEAN, and Vietnam is Indonesia’s fourth largest in the region.

Vietnam exports rice, coffee, rubber, aquatic products, garments-textiles, phones and spare parts, steel, construction materials and plastic products to Indonesia, while importing coal, auto spare parts, palm oi and animal feed from the country.

Kadin Jakarta Chairwoman Diana Dewi said the seminar offers an opportunity for Indonesian and Vietnamese businesses to promote cooperation and expand operations in the respective markets.

On the sidelines of the seminar, there were meetings and working sessions between producers, exporters and importers in different areas.

Petrol prices kept unchanged, oil prices up in latest adjustment

The retail petrol prices have been kept unchanged in the latest adjustment on June 21 by the Ministry of Industry and Trade and the Ministry of Finance.

The ceiling price of E5 RON 92 petrol was kept at 20,878 VND (0.89 USD) and that of RON 95 at 22,015 VND per litre.

Meanwhile, the price of 0.05S diesel oil was capped at 18,174 VND per litre, up 146 VND per litre from the previous adjustment, and the ceiling kerosene price was adjusted up 133 VND to 17,956 VND per litre.

At this price adjustment, the two ministries decided to extract 191 VND per litre from the sale of E5RON92, 139 VND per litre from the sale of RON 95 petrol and 100 VND per litre from all types of oil for the petrol price stabilisation fund.

HSBC announces Vietnam's first LEED rated bank branch

HSBC Bank (Vietnam) Ltd. (HSBC Vietnam) has recently become the first bank in Vietnam to obtain the LEED Gold certification, demonstrating its commitment to Vietnam's net-zero transition.

It has achieved gold certification under the LEED v4 Interior Design and Construction: Commercial Interiors rating system. To achieve LEED certification, it has adhered to prerequisites and credits that address carbon, energy, water, waste, transportation, materials, health and indoor environmental quality.

This achievement represents the bank's commitment to sustainable business practices and reflects on their collective effort towards making responsible and eco-conscious choices throughout the refurbishment process. From optimising energy-efficient equipment, incorporating sustainable materials and reducing waste, the bank has achieved substantial energy savings contributing to the overall reduction in carbon footprint.

The LEED Gold certification marks another step towards making the HSBC organisation more sustainable, which is part of its broader climate strategy. The bank wants to do more than simply play its part in the transition to a more sustainable world. It has committed to help arrange up to US$12 billion of direct and indirect sustainable financing for Vietnam and the corporate sector in Vietnam by 2030, supporting its customers to the transition to a low carbon future, especially in carbon challenged industries and accelerating new climate solutions.

It has also committed to becoming a net-zero bank and reducing carbon emissions from its supply chain to net-zero by 2030 or sooner. This includes managing the emissions of 14 offices and branches in Vietnam plus those of its suppliers. It will minimise its environmental impact by cutting carbon and waste, and using less energy, water and paper.

For instance, it has managed to reduce 22% of CO2 emissions against the baseline, from 784 tonnes CO2 (2019) to 153 tonnes CO2 (2022), its energy consumption also reduced 22 per cent against the baseline, from 1,515 MWh (2019) to 301 MWh (2022).

To achieve a pathway to net zero CO2 emissions by 2050, the International Energy Agency (IEA) estimates that overall building sector CO2 emissions should fall to around 5 GtCO2 in 2030, or by 0.6 GtCO2 per year. According to the World Energy Outlook report, cost-effective, proven energy efficiency and decarbonisation measures in buildings could contribute over 6.5 GtCO2 of reductions in annual emissions by 2040.

Reductions in emissions from buildings represent one-third of the total reductions required to align with the Paris Agreement's goals, presenting a large potential for significantly reducing greenhouse gas emissions compared to other major emitting sectors.

Early intervention to credit institutions needs to prevent worse consequences

The draft revised Law on Credit Institutions regulates the application of early intervention to credit institutions which fail to maintain the solvency ratio after facing massive money withdrawals, with an aim to prevent worse consequences.

One of the provisions of the draft law, which is being submitted to the National Assembly for consideration, is the State Bank of Vietnam (SBV)’s right to make early intervention to credit institutions in several cases: when credit institutions face massive withdrawal which result in insolvency; when they cannot maintain the payout ratio and capital adequacy ratio for three and six consecutive months; and when they have an accumulated loss higher than 20 per cent of the charter capital value and reserve funds.

In the cases, the SBV, Deposit Insurance of Vietnam and other credit institutions can provide special loans, with no collateral, with an interest rate of zero per cent.

According to the SBV, the provision was designed by the drafting board after considering recent events during the restructuring of weak credit institutions, as well as the massive money withdrawal at Saigon Commercial Bank (SCB) in October 2022.

The drafting board also referred to the collapse of many banks internationally, including the collapse of some US banks recently.

The SBV said the draft law is aimed to ensure there is a legal framework to promptly respond to major risks arising, such as the case of a credit institution that has a massive money withdrawal and threatens the safety of the banking system.

The early intervention not only helps the credit institutions have a chance to get rid of the worse risk, but also helps neutralise the risk of spreading to the whole banking system and the economy, which will be very costly in terms of resources and time to fix.

Dr. Le Duy Binh, director of Economica Vietnam, said under the current roles, functions, duties and regulations, it is not easy for the SBV to quickly, decisively and effectively support credit institutions.

Citing the experience of countries such as Switzerland and the United States (where there have been cases of collapsed banks recently), Binh said the reason the countries could react and solve the problems of the collapsed banks very quickly is that the countries have already issued mechanisms and regulations in different laws to solve the problems. In order to handle the cases in just a few days like that, the countries must have a legalised mechanism in place and a ready frameworks for quick decisions when such situations arise.

From the cases in both the world and Viet Nam, it is necessary to have immediate measures to ‘put out the fire’, Binh said, adding it is indispensable and there is no doubt about building an early intervention regulation in the draft Law on Credit Institutions.

Banking expert Dr. Can Van Luc also agreed with the early intervention regulation in the draft law, saying early warning and early intervention is very important because this is a measure to prevent risks to become worse.

According to Luc, early interventions need to ensure three requirements: fast and timely; right dose; and effectiveness. In order to ensure the above requirements, one of the very important factors is to give sufficient authority to the SBV so when a very bad situation happens to a credit institution, the SBV will not have to take a long time to ask for opinions of relevant ministries, branches and the Government, which can cause the handling of the problem too late and the consequences will be worse.

The Law on Credit Institutions was issued in 2010 and currently also shows a number of limitations, requiring amendments to suit the actual operation of credit institutions and management practices of State agencies.

The law’s regulations on organisation, administration and operation of credit institutions overlap with other laws including Law on Enterprises and Law on Cooperatives.

Besides, since 2010, other relevant laws, such as the Law on Enterprises, Law on Investment and Law on Management and Use of State Capital for Investment in Production and Business of Enterprises, have been amended, supplemented or replaced. Therefore, some provisions of the Law on Credit Institutions also need to be revised to ensure consistency with the above laws. 

Off-season fruits game-changer for cooperatives

Having enough of falling prices, cooperatives are looking beyond seasonal fruits to expand their commercial footprint and drive growth.

It is a common pattern that seasonal fruits plummet in price when their main season comes. The abundant availability puts cooperatives in a fix as they have to accept low prices, or else risk spoilage.

And there have been countless instances where a bumper season of crops is too much of a good thing.

Several years ago, dragon fruit farmers saw such a bountiful harvest that the fruit prices fell to under VND5,000 (US$0.2) per kilo. The fall in prices caused serious economic pain among cooperatives as they had to sell the fruits at a loss.

The situation recurred in Soc Trang Province a few years later when shallot production suddenly soared, leading to a substantial oversupply in the market. Shallots were so abundant that cooperatives were desperately calling for help to liquidate their unsold inventory.

Some experts advised cooperatives to seek customers abroad to absorb the excessive output. However, bringing local fruits to foreign markets has never been an easy feat. Let's take lychees as an example.

Head of the Vietnam Trade Office in the US Do Ngoc Hung said US consumers have an appetite for Vietnamese lychees, but it is costly to transport the fruit to the US owing to the distance between the two countries. High mileage normally raises lychee prices multiple times when the fruit enters the country.

Another obstacle involves irradiation, which is a prerequisite for US commercial entry. There are only two US-approved irradiation facilities in Viet Nam and both are situated in the southern region. That means it would take a lot of time and money for farmers in the north to get their lychees irradiated.

Other experts suggested off-season fruits as a way out of the situation. They said cooperatives could grow off-season lychees and export the fruit to China during the time between two crops to earn higher prices.

As Chinese farmers normally harvest lychees between February and July, Vietnamese lychees exported between June and January would sell well because of the low supply in the country during the time gap.

Nguyen Thi Thanh Thuc, a representative from the Vietnam Digital Agriculture Association, urged cooperatives to optimise routes to cut shipping time, allowing off-season fruits to be transported in the short time gaps between crops.

Agriculture expert Hoang Trong Thuy underlined the role of market forecasting in production planning and timing. He urged authorities to bring cooperatives up to speed to improve their data forecast. 

Hi-tech agriculture, seeds expo sprouts in HCM City

The ninth Seeds and Hi-Tech Agriculture Exhibition is taking place at Binh Phu Park in HCM City’s District 6.

It features 300 booths showcasing high-quality agricultural produce, hi-tech farming models, new seedlings, bio-tech products, ornamental trees, fresh and processed produce, and food and agricultural equipment.

Models of ornamental fish farming and products under the national One Commune One Product programme and from start-up businesses, and the achievements of scientific and technological research are also on display.

The event is a platform for local farm producers, co-operatives, enterprises in the agricultural sector, and organisations to enhance co-operation, seek partnerships and boost trade.

Many other activities are also being held within the framework of the fair, including an ornamental fish contest, seminars on how to support start-ups and small businesses in agriculture and protection of the Sai Gon River’s aquatic resources.

The fair, organised by the Department of Agriculture and Rural Development, will run until June 25. 

Hanoi bourse to introduce private placement for corporate bond trading

The Hanoi Stock Exchange (HNX) has announced its plan to launch a system that will enable corporate bonds to be traded through private placement.

Once implemented, around 1,600 corporate bonds will be listed on the system, according to the market operator.

The introduction of this system is expected to create a secure trading environment and enhance transparency in the sale of corporate bonds.

It will ensure that buyers are held accountable for their transactions and enable regulatory authorities to monitor corporate bond issuances, thus promoting the growth of the corporate bond market.

In addition, bond issuers will be required to disclose relevant information about their bonds, including legal risks, investment risks, capital risks, as well as the rights, benefits, and obligations of both issuers and buyers.

They will also bear responsibility for the accuracy of the information provided in their announcements and registration documents for bond listings.

New hope for stronger Vietnam-RoK investment cooperation

The ongoing state visit by the Republic of Korea (RoK)’s President Yoon Suk Yeol, who is being accompanied by leaders of 205 RoK firms, including large ones such as Samsung Electronics, SK, Hyundai Motor, LG, and Lotte, is expected to further beef up the investment cooperation between the two countries.

During the 3-day visit, businesses of the two sides are expected to sign a number of cooperation deals as leading RoK manufacturers are seeking measures to ensure supply chains and expand exports.

On June 24, a Vietnam-RoK Business Forum will be held, gathering leaders of the two countries and a large number of businesses of both sides.

According to the Foreign Investment Agency under the Ministry of Planning and Investment, the presence of the business delegation and leading billionaires of the RoK and the world in Vietnam brings a new hope for the further growth between the two countries. All the five major RoK enterprises have made big investment in Vietnam and planned to expand the investment.

Samsung has announced its plan to inject 3.3 billion USD in Vietnam, including 2 billion USD disbursed in projects in Thai Nguyen and Ho Chi Minh City.

Meanwhile, in late 2022, LG revealed its plan to invest an additional 5 billion USD in Vietnam in the future, while Lotte is completing its Lotte Mall in Hanoi and constructing a Lotte Eco Smart area in Thu Thiem of HCM City.

In early September 2022, while attending the groundbreaking ceremony of the project, Lotte Chairman Shin Dong-bin said that Lotte Eco Smart Thu Thiem will mark the "starting point" for investment expansion activities of Lotte Group in Vietnam.

At the same time, SK is in the process of increasing its presence in Vietnam through large-scale investments in Masan and Vingroup. Hyundai Motor also operated Hyundai Thanh Cong No.2 Factory in Ninh Binh at the end of last year.

The Foreign Investment Agency said that in the first five months of this year, Vietnam attracted 962 new FDI projects worth over 5.26 billion USD, up 66.4% year on year in the number of projects and 27.8% in value.

In the January-May period, the RoK was one of the largest investors of Vietnam, making up 17.4% of the number of the total projects and 25.2% of the investment value.

The agency held that foreign small- and medium-sized investors have remained confident about the Vietnamese investment environment, while larger ones are considering big investment in Vietnam amid the impacts of the global minimum tax policy which will be applied in 2024.

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