High-tech shrimp farming facility in Ba Ria-Vung Tau province (Photo: VNA)

Following its competent handling of COVID-19 pandemic coupled with the application of advanced technology in production, the nation is projected to become one of the world’s leading shrimp producers in the near future, according to industry experts.

Robins McInstosh, senior vice president of Charoen Pokphand Foods under Thailand’s CP Group, said shrimp production tends to increase by between 6% and 7% annually, despite the global food service sector facing disruption caused by the COVID-19 pandemic.

In terms of the Vietnamese shrimp industry, McInstosh points out that local shrimp production has steadily increased by between 5% and 10% over recent years, with some years even seeing jumps to 12%.

He also emphasised that this stable growth can largely be attributed to technological changes taking place in local shrimp farming with high-tech shrimp farming being widely applied by farmers nationwide in recent years, especially in provinces in the southeast of the country and around the Mekong River Delta.

Furthermore, the domestic shrimp sector has continuously exerted great efforts as a means of coping with the COVID-19 epidemic whilst striving to respond to drought and saltwater intrusion.

According to figures compiled by the Ministry of Agriculture and Rural Development, the nation is now home to over 200,000 hectares of high-tech shrimp farming, with Bac Lieu and Soc Trang provinces making up a total area of ​​approximately 186,000 hectares. Indeed, these two localities are also receiving investment from foreign firms who are keen to boost processing and export activities.

With the Vietnamese shrimp industry recording various achievements, neighbouring shrimp producers have united with the country in order to produce shrimp for the global market.

Most notably, early February saw the Indonesian Government co-operate with the nation to develop aquaculture, with specific efforts made to improve lobster farming technology.

Indonesian Minister of Marine and Fisheries Sakti Wahyu Trenggono said Indonesia plans to invite its Vietnamese partners to co-operate in promoting development in the field of aquaculture, especially in attempting to produce key aquatic products with the aim of turning Vietnam into one of the leading ASEAN member states to contribute to the world’s food supply sources.

Forum highlights new driving forces in Vietnam-India trade

Apparel, pharmaceuticals, supporting industries, and renewable energy count among the new driving forces for growth in Vietnam-India trade ties, Bui Trung Thuong, Chief of the Vietnam Trade Office in India, told a recent business forum in the Indian city of Chandigarh.

Co-organised by the Vietnamese Embassy in India and the Associated Chambers of Commerce and Industry of India for the northern region, the forum attracted more than 150 Indian enterprises, organisations, and associations.

Thuong took the occasion to call on Indian investors to invest in Vietnam, listing the country’s advantages in possessing a strategic location in the centre of Southeast Asia, open investment attraction policies, low company establishment costs, favourable infrastructure, stable GDP growth, a young population, and competitive labour costs.

Vietnam has so far signed 14 free trade agreements with over 50 countries and territories, he added.

Vietnamese Ambassador Pham Sanh Chau noted that Chandigarh was selected as the venue for promoting the two country’s cooperation in trade, investment, tourism, and education as it serves as the capital of the two neighbouring states of Punjab and Haryana and is a popular tourist destination.

Indian participants admired Vietnam’s economic progress over the past year, considering the country an attractive destination for foreign investors, especially amid the ongoing wave of shifting investments.

They are confident about strengthened Vietnam - India ties in trade, investment, education, tourism, and people-to-people exchanges.

Enterprises from Pubjab and Haryana said they see opportunities for cooperation with Vietnamese counterparts in agricultural processing, IT, pharmaceuticals, garments-textiles, and auto spare parts.

India is among Vietnam’s top 10 largest trade partners, with bilateral trade exceeding 10 billion USD and expected to reach 15 billion USD shortly.

According to data from the Ministry of Planning and Investment, as of December, India had about 300 valid projects in Vietnam worth some 900 million USD, ranking it 26th among countries and territories investing in the country./.

Intellectual property to drive knowledge economy: workshop

Amendments to legal regulations relating to intellectual property (IP) will contribute to improving Vietnam’s IP system, making it an important tool to promote national competitiveness and drive the knowledge economy, thus promoting socio-economic development, Minister of Science and Technology Huynh Thanh Dat has said.

Addressing a consultation workshop on March 12 in Ho Chi Minh City on a draft law amending and supplementing certain articles of the Law on Intellectual Property, Dat highlighted the need to amend the law in the context of significant changes affecting all socio-economic matters, especially Vietnam’s increasing international integration via new generation free trade agreements (FTAs), the rising trend towards trade protectionism, and Vietnam’s plan for a development-facilitating government.

The amendments aim to institutionalise the policies of the Party and the State in the field, address inadequacies and issues in law enforcement, integrate international commitments in domestic laws, and create a full legal framework for intellectual property in the country, he said.

Speaking at the workshop, which was supported by the Southeast Asia Financial Sector and Intellectual Property (FSIP) Programme funded by the UK’s Sovereign Wealth Fund, Sam Wood, Deputy Consul-General of the UK in HCM City, said the gathering reflects Vietnam’s commitment to amending and supplementing the law in line with international standards, contributing to expanding cooperation between Vietnam and the UK in this regard.

Through the FSIP Project, best IP practices from the UK have been widely shared with Vietnamese stakeholders.

The two sides are strengthening cooperation, ensuring that intellectual property serves as a catalyst for innovation and creativity, thus supporting economic growth.

Wood said he believes the economic and trade relationship between Vietnam and the UK will continue to prosper.

Participants at the workshop focused discussions on the proposed revisions relating to industrial property right, copyright, and plant varieties rights.

The Law on Intellectual Property was first released in 2005 and amended in 2009 and 2019. It has played an important role in creating a legal corridor for the creation and protection of intellectual property rights for organisations and individuals.

This draft amending and supplementing certain articles will be submitted for comment at the 15th National Assembly’s second session in October./.

Local banks to receive VND4 trillion to offer soft loans to VNA

The State Bank of Vietnam (SBV) will refinance local banks with a maximum amount of VND4 trillion to offer loans at no interest to national flag carrier Vietnam Airlines (VNA) before December 31 this year, aimed at helping the carrier cope with the difficulties caused by the Covid-19 pandemic.

SBV is collecting feedback on a draft Circular on refinancing local banks after they offer loans to VNA and restructuring debts for the carrier due to the impact of the pandemic, in line with the resolutions of the National Assembly and the Government, reported the local media.

Specifically, the annual refinance rate of 0% will be applied to refinance periods and rescheduled refinance periods. The refinance rate for overdue debts will be 150% of the refinance rate set by SBV for each period when refinancing loans become overdue debts.

Earlier, VNA had proposed the Government offer it a Covid-19 relief package worth VND12 trillion, including offering soft loans worth VND4 trillion and raising the ownership capital by VND8 trillion by issuing shares to its existing shareholders.

In late November last year, the National Assembly passed a resolution at its 10th sitting, approving the Government’s proposals to eliminate the difficulties facing the carrier due to the impact of Covid-19.

VAFI proposes changing HOSE leaders

The Vietnam Association of Financial Investors (VAFI) has proposed the Ministry of Finance change the leaders of the Hochiminh Stock Exchange (HOSE) and committed to seeking experienced foreigners to help address the trading system overload frequently facing the southern bourse.

The stock market has been affected for three months due to an order placing overload, the association said, adding that the problem was a result of the poor management and administration by the HOSE leaders.

The project to build a new trading system which was deployed in 2012 has yet to be completed, said the association.

As such, VAFI presented three solutions to handle HOSE’s system error and improve the operations of the Vietnamese stock market, including employing foreign staff with experience in managing stock exchanges to lead HOSE.

The second solution is not appointing the leaders of the State Securities Commission of Vietnam or some agencies under the Ministry of Finance for key positions at HOSE as State administrative governance is different from business administration.

The association also proposed equitizing the Vietnam Exchange and the Securities Depository Corporation, allowing foreign stock exchanges to become strategic shareholders who will be in charge of transferring technology and training staff.

A few days ago, HOSE proposed a plan to raise the minimum volume of shares that can be traded in an order from 100 to 1,000 to address its trading system overload, but faced strong objection from investors. As such, the plan was rejected by the Ministry of Finance at a meeting on March 9, the local media reported.

Foreign investors net buy stocks on HNX in February

The Ha Noi Stock Exchange (HNX) witnessed a dynamic month in February as foreign investors net bought a value of VND40 billion and the small/mid-cap index gained over 100 points.

A monthly report from HNX showed that a total of 1.74 billion shares were traded on the bourse in February, worth over VND27 trillion.

Accordingly, an average of 114 million shares were traded per session, with a value of over VND1.86 trillion. The trading value declined by 22.8 per cent compared to the previous month.

The HNX-Index gained more points at the end of February and hit the highest level of the year at 249.22 points on the last trading day of the month, up 16.3 per cent month-on-month.

As of February 26, the market capitalisation reached VND285.4 trillion, 13.08 per cent higher than that of January.

Shares from all sectors gained points during the period. Of which, financial stocks posted the biggest gain of 46.55 points (equivalent to 12.59 per cent) to 416.44 points. Followed by industrial and construction shares with an increase of 25.4 points (12.28 per cent) and 35.43 points (18.13 per cent), respectively.

The small/mid-cap stocks on the exchange posted outstanding performance with a gain of 100.58 points (equivalent to 20.36 per cent) to 594.68 points, while the large-cap shares increased 30.4 points (equivalent to 12.67 per cent) to 270.25 points as of the end of February.

During the period, 34.8 million shares were traded on HNX by foreign investors, worth over VND580 billion. In general, they net bought a value of VND40 billion.

On Wednesday, Viet Nam's stock market edged higher with the HNX-Index up 0.86 per cent to 267.1 points.

Leverage for Vietnam's agricultural products to take off

Extensive international integration is opening up golden opportunities for Vietnam's agri-products. However, to capitalise on these opportunities, the value chain of agricultural products needs to be optimised to meet the strict requirements of the global market.

Prof. Dr. Vo Tong Xuan said that Vietnam has exported eight types of agricultural, forestry, and aquatic products with an annual turnover of over $1 billion many of which have achieved high positions in the global market. However, Vietnam's agricultural sector has yet to develop modern production methods due to its small scale and lack of technology applications. As a result, agricultural production has low productivity, competitiveness, and added value.

He added that it is necessary to optimise the stages in the agri-product value chain by removing bottlenecks in production and preservation. Also, food loss needs to be reduced, transportation costs optimised, and stable output markets found for agri-products.

"It is necessary to create favourable conditions for responsible enterprises with a vision to join production and business, especially the development of modern logistics services," Xuan stressed.

Economic experts say that to boost the sustainable development of Vietnam's agri-products, priority policies need to be built for key areas, including the Mekong Delta – the nation's largest rice basket. The government's resolution No.120/NQ-CP on the sustainable development of the Mekong Delta in response to climate change has a hundred-year vision with several distinct investment phases. In particular, top priority must be given to investment in logistics and transport infrastructure, which is seen as the lifeblood of the economy.

The government has approved a five-year $2 billion allotment for infrastructural development in the area. Nguyen Phuong Lam, director of the Can Tho branch of the Vietnam Chamber of Commerce and Industry, said that the Mekong Delta has recently made heavy investments in infrastructure and diversified transportation means to improve the trade flow of agri-products. In particular, once opened for traffic, Trung Luong-My Thuan Expressway is expected to significantly speed up product delivery times.

With regards to logistics, expert Nguyen Phuong Lam said that for a long time, localities in the Mekong Delta have only focused on the stages from the field to the factory but paid little attention to the stages from the factory to the port, shipping, packaging, and inspection despite their decisive role in the competitiveness of agri-products. That is the reason why it is very important to develop logistics centres that are capable of handling all the stages of agri-production from the Mekong Delta to the ports and consumption markets. This would reduce waiting times and cumbersome procedures.

Thus, logistics companies are urged to resolve this pressing problem. Most recently, the first phase of Hanh Nguyen Logistics Center (Hau Giang Agri-product Export Logistics Center), a self-contained logistics centre for all agricultural export procedures, has been put into operation in Hau Giang province. Situated in a prime location, the logistics centre provides convenient access to the Mekong Delta and southeast region.

Pham Tien Hoai, Hanh Nguyen Logistics CEO and chairman of the Board of Tien Thinh Group said, “After many years of accompanying farmers, we want to create a breakthrough for them so that their work can be less strenuous and receive more of their deserved results. The opening of a logistics centre allows connecting all stages in the supply chain of agricultural products and find more markets for agri-products. Customers and farmers need only bring their products to the centre, we will take care of the rest, from cleaning to preserving and irradiating. We also handle the transportation, customs clearance, exports, and financial procedures to find suitable markets for the products.” 

Exports to Israel skyrocket during two-month period

Israel currently represents the nation’s third largest export market in the Middle East, behind only the United Arab Emirates (UAE) and Turkey, according to figures compiled during the opening two months of the year by the Vietnamese trade office in Israel.

During the two-month period, the country’s exports to Israel reached approximately US$200 million, while imports from the Israeli market stood at an estimated US$110 million.

Most notably, major Vietnamese export items to the Middle Eastern nation throughout the reviewed period recorded a sharp increase with footwear, cashew nuts, phones and accessories, textiles and garments enjoying increases of 134.50%, 78.9%, 62.2%, and 33.1%, respectively.

This comes after Israeli import and export activities witnessed slight growth in the post-novel coronavirus (COVID-19) period after moving to reopen their economy, although they still face various difficulties moving forward.

At present, numerous Israeli businesses remain keen on importing consumer goods, food, rice, dry foods, agro-aquatic products, dried fruits and vegetables, soft drinks, household utensils, along with medical items, from Vietnam. 

Furthermore, Israel considers the nation to represent one of their major supply sources, especially in terms of essential consumer goods, in Asia that are capable of meeting domestic consumption needs.

Plan being built to develop major SoEs

A plan is being devised to develop large-scale State-owned enterprises (SoEs), especially multi-ownership ones, to promote their role in paving the way for and guiding businesses in other economic sectors.

There are seven SoEs initially proposed for the plan, including three in the hi-tech industry (Military Industry and Telecoms Group – Viettel, Vietnam Posts and Telecommunications Group – VNPT, and Vietnam Mobile Telecom Services Corporation – MobiFone), two in the renewable energy industry (Vietnam Electricity Group – EVN and Vietnam Oil and Gas Group – PetroVietnam), one in the seaport and logistics sector (Saigon Newport Corporation), and one in the finance – banking sector (Joint Stock Commercial Bank for Foreign Trade of Vietnam – Vietcombank).

Apart from total assets of over 20 trillion VND (870.6 million USD), other criteria for such firms include a market share of at least 30 percent, meeting competition regulations, a return on equity of more than 6, and good governance based on OECD principles.

Besides, the industries entitled to special mechanisms and policies are identified basing on their role in guiding the development of businesses, their importance in developing and orienting industries, and the necessity of the State’s presence in those sectors.

Speaking at a meeting in Hanoi on March 10, Le Manh Hung, Director of the Enterprise Development Agency under the Ministry of Planning and Investment, said the plan aims to develop some SoEs that are capable of paving the way for and guiding other firms, connecting with the private business sector, mastering technology, and forming innovation chains.

He explained that the “paving-the-way” enterprises are the new ones that meet the country’s development demand while the “guiding” companies are the ones that can form connectivity and value chains and promote innovation with the participation of firms in other economic sectors.

The general policies proposed in the draft plan accord with the country’s socio-economic development orientations and international commitments and also ensure fair competition, the official noted./.

Experts suggest raising proportion of offshore wind power in new power plan

Vietnam needs to increase the proportion of wind power, especially offshore wind power, in the total power capacity targeted in the National Power Development Plan for 2021-2030 with a vision to 2045 (Power Development Plan VIII), so as to attract more foreign investors in the field, according to businesses and experts.

The country is considered an offshore wind power centre of the world and holds substantial potential for development.

Developing offshore wind power has been assessed as one solution that would help Vietnam ensure the sufficient supply of electricity at lower prices, gain independence from imported fuel, increase the localisation rate, generate more jobs, and cut greenhouse gas emissions, as the Government has committed.

The Power Development Plan VIII only sets a target of 2-3GW of wind power capacity by 2030, however, accounting for 1.45-2 percent of total power capacity.

In this plan, the proportion of renewable energies, excluding hydropower, will make up nearly 30 percent in 2030, with the capacity of wind power to increase three-fold compared to the figure in the adjusted Power Development Plan VII, but be mainly inshore and near-shore.

The World Bank (WB) assesses that Vietnam’s offshore wind power has the potential to generate 475GW, while the Danish Energy Agency (DEA) says the country possesses a long coastline and has the potential for 160GW of wind power within a radius of 5-100 km from the shore.

Therefore, the two organisations have proposed that Vietnam increase the capacity of offshore wind power to 10GW by 2030.

According to the draft Power Development Plan VIII, Vietnam will need about 128 billion USD in investment in electricity by 2030.

The Vietnam Energy Association said that with investment of 2.5-3 billion USD per gigawatt of offshore wind power, Vietnam is likely to attract hundreds of billions of USD over the course of the next decade./.

Ba Ria-Vung Tau lures 15.6 million USD in FDI in two months

The southern province of Ba Ria-Vung Tau attracted three new foreign direct investment (FDI) projects worth 15.6 million USD in the first two months of this year.

It was reported at a meeting held by the provincial People’s Committee on March 10 that during the reviewed period, the locality’s industrial production value, excluding oil and gas, rose 8.33 percent.

Marked increases were also seen in such sectors as agriculture, fishery, forestry and port services.

Participants discussed tasks and solutions to implement the government’s anti-COVID-19 instructions, as well as the building of a plan realising the industrial development programme for 2021-2025.

Seaports in the province handled nearly 766,000 twenty-foot equivalent units (TEUs) in the first two months, rising 21 percent from the same time last year.

According to the provincial Maritime Administration, the total volume of goods through local seaports reached more than 11.9 million tonnes in the period, a year-on-year surge of 4 percent.

Head of the provincial Customs Department Tran Van Danh said that the province gained over 1.7 billion USD in import-export turnover during January-February, up 32.7 percent year-on-year, describing this as a robust achievement of the province in carrying out the dual tasks of pandemic prevention and economic development at the local seaports./.

Vietnam Airlines, Khanh Hoa province extend tourism development cooperation

Representatives of Vietnam Airlines and the People’s Committee of the central coastal province of Khanh Hoa on March 10 signed an agreement on tourism development cooperation in the 2021-2025 period.

This is a continuation of the 2017-2020 cooperation agreement between the two sides, opening up opportunities for Vietnam Airlines and Khanh Hoa to coordinate more effectively in developing tourism, investment and trade and air services.

Accordingly, the two sides will increase tourism promotion measures, especially in the post-COVID-19 period; develop tourism products and tours; and open international air routes to Khanh Hoa after the pandemic is kept under control.

They will also support each other in organising tourism and air-travel events at national and international levels and joining tourism and trade promotion programmes, culture and sport events, and enhance communication activities to promote destinations in Khanh Hoa, and products and services of Vietnam Airlines.

Vice Chairman of the provincial People’s Committee Le Huu Hoang, who is also head of the provincial Steering Committee for tourism development, said the two sides have achieved practical results in market research and development, and domestic and international tourism promotion, contributing to expanding the locality’s tourism growth.

This is a comprehensive cooperation with long-term strategy, helping the locality’s tourism industry fully tap advantages and potential for its integration and development.

General Director of Vietnam Airlines Le Hong Ha said that with the renewed agreement, the two sides will work together to speed up economic and tourism recovery, especially after serious effects of the COVID-19 pandemic.

Ha said he believes that Vietnam Airlines will contribute to strongly promoting Khanh Hoa’s development in the time to come.

Since 1992, Vietnam Airlines has established air links to Khanh Hoa province with the first two routes connecting Nha Trang with Hanoi and Ho Chi Minh City. Currently, the airline is operating five domestic routes to Cam Ranh airport, linking the locality with Hanoi and HCM City, Da Nang, Vinh and Hai Phong, with the peak operation frequency of over 210 round-trip flights per week.

In 2018, Vietnam Airlines successfully put the first international route between Nha Trang and Seoul of the Republic of Korea into operation./. 

Lao Cai popularises Sa Pa-Fansipan tourism trademark

The northern mountainous province of Lao Cai has built a strategy to popularise the Sa Pa- Fansipan tourism trademark till 2025 with a vision to 2030.

Director of the provincial Department of Culture, Sports and Tourism Ha Van Thang said the province now offers six main types of tourism products, namely resort, cultural-community, ecological, agriculture-craft village, adventure sport and smart tourism products.

However, those products have not been able to create strong impression on visitors. Community tourist products are said to be monotonous, failing to meet visitors’ demand for experience and exploration.

Home to Fansipan, the highest peak in Indochina, but the local tourism industry has not made full use of it for adventure sport tourism.

According to the strategy, Lao Cai expects to have 20 percent of tourists in key markets become aware of the Sa Pa- Fansipan trademark, 50 percent of visitors choosing Lao Cai for holidays based on the trademark, and 50 percent return to the province for long stay.

Thang said Lao Cai will renew its traditional tourist products by fully tapping advantages in topography, climate and local specialities and traditional handicrafts.

Chief of the Sa Pa township’s culture-information office Hoang Thi Vuong said Sa Pa will build two community tourism areas imbued with cultural identity of ethnic minorities under ASEAN standards.

Between now and 2030, Lao Cai will step up market research with a focus on key markets such as Western Europe and Australia, expand near markets in Northeast Asia and ASEAN, and attract visitors from Hanoi, Ho Chi Minh City, Da Nang and northern urban areas, then gradually reaching out to others.

The province will assist several localities in building trademarks, as well as special and competitive tourist products,

Home to the popular holiday town of Sa Pa, Lao Cai has set a target of welcoming 5 million visitors this year and earning more than 16 trillion VND (696.17 million USD) in tourism revenue.

Sa Pa has long been among the country’s leading destinations. Of note, young people accounted for more than 70 percent of tourist arrivals to the town last year./.

Need for F0 investors to diversify

The stock market in 2020 saw a rise of F0 investors, who created waves from the very first quarter by reaching new peaks. The F0 investors were also the main driving force behind the market while the foreigners sold out. However, the stock market in 2021 will need to diversify, and perhaps it will not be as easy for F0 investors. 

Many international organizations point out that the world has few options left, aside from continuing to pump money to support the economy. Even when vaccines prove effective, the low-interest policy of the Central Bank will remain. The loosening of monetary policy has also been raised to a higher level, when the Central Bank of China, South Korea, and Thailand added new weapons such as the Central Bank Digital Currency (CBDC). Accordingly, the loosening of monetary policy will not stop, even when the Central Bank has been digitized.

This is consistent with the 4.0 era, as well as with the method to tackle the ongoing pandemic. Even after the pandemic ends, there will be many changes in business thinking as businesses will have more plans, products and services, and allow much more flexibility. So the stock market will be strongly supported by policy as well as transformation of the economy and enterprises.

Therefore, the Vietnam stock market with companies and enterprises that apply well and create business efficiency will help attract more investment capital, thereby positively affecting the stock price.

When the vaccine becomes widely effective, many industries will recover again and the economy will revive and so will the stock market. In addition, the world stock market will continue to rise to new heights, which will also support Vietnam's stock market. The control of the disease, and reasonable macro-management will help in attracting Foreign Direct Investment flow. This foreign cash flow will soon lift the market along with capital flow of individual investors, F0 investors, and strong domestic organizations.

If we want the stock market to maintain a growth rate after a hot rise, as in 2020 that saw a huge level of liquidity, more cash flow and a faster economic recovery is needed.

As the economy goes on a recovery momentum, financial assets have increased hotly which may easily lead to the phenomenon of bubbles, and the FOMO (fear of missing opportunities) syndrome may spread to F0 investors.

Therefore, in the year 2021, the stock market has the ability to differentiate and diversify, meaning that the good stocks such as those that apply effective technologies in accordance with the changing business environment, will still make an impression on investors, and attract investment cash flow.

This becomes clearer when the cash flow in the stock market currently is mainly from individual investors who are assessing the whole market. It will be difficult to maintain such a strong cash flow for a long time, especially since the margin ratio on the stock market is on a record high.

Therefore, the cash flow will focus on businesses with good growth expectations, and flexibility in all circumstances. Even industries affected by the pandemic such as transportation, tourism, or energy will also recover. Stocks of companies with well-adapted post-pandemic buffers will also attract cash flow.

It should be noted that loosening monetary policy in the last year caused cash flow around the world to flow into speculative assets. This year, when the disease is finally controlled, and the vaccines become effective, the policy will direct the cash flow into the economy instead of short-term speculative assets. In the long term, this will support the stock market, which is seen as a barometer of the economy.

However, in the short term, cash flow may be more limited. In addition, foreign investors will still remain net sellers. So with only the cash flow of individual investors and F0 investors, the prices of many stocks will be at peak. The market may then be short of energy to set new heights.

Other investment channels such as real estate have the ability to strongly recover after the pandemic. When monetary easing is maintained around the world, it can promote cash flow to find potential investment channels rather than assets that have been continuously increasing for a long time.

This is also a threat to stocks. In addition, the stock market is seeing a big difference due to a strong increase last year when VN Index increased nearly 70%, HNX-Index increased 120%, while GDP increased 2.91%. This shows that the stocks have been valued at very high levels, so investors who lack knowledge will likely face many risks.

During the whole of last year, most F0 investors easily won from stocks. Many F0 investors, even those who invested for a short few months or even just a few days, moved to invest the huge amount of money that they made in gold and real estate. However, the stock market is not a place where everyone who invests wins. Rather it is place where everyone is forced to learn, practice, and experience for themselves. New investors need to be careful in choosing good products to buy, because many enterprises increase the stock price several dozen times compared to its real value.

Big investors remain humble and their success is always measured by their many years of stable dealings and familiarity of the market. This only comes with years of steady and continuous training and learning. Even when the market goes up or down, these big investors always make money, because increase or decrease is a part of the market, but making money is their main focus.

This is why few F0 investors in the long term can hold out money in the market, which only professional investors know how to do. These are the skills that new investors need to cultivate with knowledge and with continuous experience to improve their ability and investment knowledge.

Corporate Bonds issuance still very strong

Private offerings and transaction of corporate bonds in the domestic market, along with offering of corporate bonds to the international market will soon be regulated under Decree 153/2020/ND-CP. This follows a cooling off in the last four months of 2020 due to the impact of tightened issuance conditions under the earlier Decree 81/2020/ND-CP.  

According to data published by the Hanoi Stock Exchange (HNX), in December 2020, a total of 35 enterprises registered 98 private issuances of corporate bonds with registered value of VND 75,350 bn. The value of successful issuance reached VND 43,470 bn, accounting for 57.69% of total value of registered issuance. In 2020, the corporate bond market experienced an impressive growth with total issuance value of VND 437,668 bn, an increase of 38.6% compared to 2019. In December 2020, the value corporate bond issuance increased again after cooling down significantly in September, October and November.

In the first eight months of the year, the corporate bond market was very active because of Decree No. 163/2018/ND-CP that regulated the issuance of corporate bonds. However, from January to September 2020, due to tightening of regulations on corporate bond issuance, the corporate bond market cooled down. The last month of the year recorded a rebound before new regulations under Decree 153/2020/ND-CP untied the market.

Some financial experts say that the reason for the barricade under Decree 81/2020 is because the real estate corporate bond market boomed too strongly and that the market had not entered the right trajectory. In the market, there are still many companies that have flawed financial statements but strongly issue bonds by pushing up interest rates to attract investors. However, the policy for the corporate bond market is still not stable, so Decree 153/2020/ND-CP will set to resolve this issue, now effective since 1 January 2021.

According to an analysis by VNDirect Securities JSC, in the past, Decree 81/2020 limited the issuance size of corporate bonds. The outstanding debt balance of private bonds issuance is limited to five times of equity. Each issuance must be completed within 90 days from date of announcement prior to the issuance, and the following issuance must be at least six months after previous one. The issuing company must sign an advisory contract with an advisory organization on corporate bond issuance documents, unless the issuing company is an organization permitted to provide issuance documentation consulting services in accordance with law.

The new Decree 153/2020 only requires: (1) the issuing company to be a joint stock company or a limited company; (2) pay both the principal and interest of the issued bond or pay all due debts within three years; (3) meet financial prudential ratios and safety ratios in operations in accordance with specialized laws; (4) have approved issuance plans; (5) and have financial statements of year preceding year of issue audited by qualified auditing organization. Accordingly, VNDirect forecasts that the corporate bond market will be active again in 2021, owing to a number of problematic regulations being removed in Decree 153/2020.

The corporate bond market in 2021 is forecast to having many favorable conditions. With a positive economic growth expected this year, the capital mobilization demand of businesses is forecast to remain very large. In the conditions that the pandemic is still complicated and affecting many industries, the banking industry will be very careful in providing credit to businesses, while the State Bank of Vietnam will still maintain its view of promoting the transition to credit structure, keeping a moderate portion with the real estate lending sector. Accordingly, the need to find capital through corporate bonds will remain high.

Meanwhile, the demand for professional investment to replace traditional investment, such as savings by domestic investors, is increasing. The orientation of the State Bank of Vietnam is to reduce deposit interest rates, and create a premise to reduce lending interest rates to support economic growth. The meeting of safety indicators of the banking industry has also been positive, so it also reduces the competitive pressure on capital mobilization.

Accordingly, the trend of strongly increasing deposit rates is unlikely to return. At this time, the deposit interest rate at Vietcombank for a term of one to two months is only 2.9% per year; for a three-month period, it is 3.2% per year; for a six-month term it is 3.8% per year; and for a twelve-month term it is 5.5% per year. At commercial banks, the six-month savings interest rate fluctuates around 5% per year; for twelve months to about 5.5% per year; and for over twelve months to about 6% per year.

Dr. Tran Du Lich, a member of the National Financial and Monetary Policy Advisory Council, said that at this time, it is possible to take advantage of the trend of lowering deposit rates to quickly increase the stock market and corporate bonds. Accordingly, Vietnam's financial market will also achieve the goal of gradually shifting capital mobilization to capital market, reducing credit pressure on commercial banks, and create a balance for the financial market for a long time.

Experts also warn that investors are still at risk when dealing in corporate bonds under Decree 153/2020 which clearly states the responsibility of investors to approach and fully understand the contents and terms before deciding to buy or trade bonds. Meanwhile, the regulations on credit rating when businesses issue new bonds will not have legal obligations until 2023. At the same time, with corporate bonds, it is difficult for investors to know the purpose of using that capital, so before investing capital in this channel, it is necessary to consider this carefully.

FLC to launch close to 20 realty projects in 2021

Property developer FLC Group has said this year, it plans to launch nearly 20 real estate projects on its strategic segments of resort and urban area.

The projects will be located in Hanoi, Quang Ninh and Vinh Phuc in the northern region, Thanh Hoa, Quang Binh, Binh Dinh, Gia Lai and Kon Tum in the central region, and Phu Quoc in the Mekong Delta province of Kien Giang.

The group has so far invested in more than 40 provinces and cities nationwide. In the last half of 2020, it began the second phase of two FLC tourism complexes in Vinh Phuc and Quang Binh provinces.

According to the company’s latest report for the fiscal year 2020, its pre-tax and after-tax profits were over 421 billion VND (18.3 million USD) and nearly 308 billion VND, respectively.

The outcome was attributed to higher revenue from realty projects and lower financial costs.

As of the end of last year, the group’s total asset neared 38 trillion VND, up nearly 20 percent from the previous year./.

MAUR: Many metro lines in HCMC might see investments by S. Korean firms

Many South Korean firms have expressed their interest in investing in urban railway projects in HCMC, according to the Management Authority for Urban Railways (MAUR) of HCMC.

MAUR said that at a recent meeting, Lotte Properties and Lotte E&C expected to join some partners in investing in the city’s metro lines, Phap Luat Online reported.

Despite the hardships caused by the coronavirus pandemic, the South Korean Government and many companies, including major groups that successfully constructed and operated urban railway systems in Seoul, have sought opportunities to invest in HCMC’s urban railway systems.

The Korea International Cooperation Agency signed a memorandum of understanding with MAUR in November last year to conduct research and map out a plan for the transit-oriented development of the second phase of the metro line No. 5.

Besides, in early February, the Export-Import Bank of Korea (KEXIM) wrote to MAUR, proposing conducting an investment study for the second phase of the city’s metro line No. 5 project under the public-private partnership format.

KEXIM sent a letter to the HCMC government announcing that it would hire consulting firms for the prefeasibility study of the project, which is set to be submitted to the authority in late 2021.

In addition, in February, the Korean Embassy, the Korea Overseas Infrastructure & Urban Development Corporation – KIND and Posco E&C worked with MAUR to discuss the second phase of the second metro line.

Bac Giang province to raise contribution of hi-tech agriculture

The northern province of Bac Giang is to raise the contribution made by hi-tech agriculture in agricultural production value by 30 percent by 2030, according to the provincial Department of Agriculture and Rural Development.

Director of the provincial Department of Agriculture and Rural Development Duong Thanh Tung said Bac Giang plans to develop agriculture towards improving its efficiency and sustainability and ensuring national food security.

The sector’s annual growth is expected to average 1.5-1.6 percent in the 2021-2030 period. Horticultural products meeting safety standards are to account for 70 percent of total output, while those in husbandry and fisheries are to reach 80 percent and 70 percent, respectively.

Tung said Bac Giang has developed a plan for the enforcement of last year’s decision from the Politburo on ensuring national food security by 2030 in the province.

The province also aims to reduce its total farming land from 286,660 ha in 2025 to 271,690 ha in 2030, with agricultural production areas to come down from 124,450 ha in 2025 to 121,870 ha in 2030. Rice farming areas will also decline from 61,190 ha in 2025 to 51,207 ha in 2030.

Meanwhile, it will raise its livestock and poultry population from 26.46 million heads in 2025 to 35.64 million in 2030. The output of meat will then increase from nearly 260,000 tonnes in 2025 to 302,000 tonnes in 2030, while the number of eggs will grow from 250 million in 2025 to 300 million in 2030.

The province targets having 12,500 ha of aquaculture area by 2025, with output of 55,000 tonnes, rising to 12,700 ha and 60,000 tonnes, respectively, by 2030.

The rate of agricultural products cultivated under Good Agricultural Practices (GAP) and safety standards will rise to 60 percent in horticulture, 46.7 percent in husbandry, and 55 percent in fisheries by 2025. The number of processors and producers certified to meet food safety rules will reach 96 percent.

In the time to come, Bac Giang plans to develop the large-scale production of key agricultural products and local specialties, to bring into full play the potential of each local region.

It targets having about 70 “One Commune, One Product” (OCOP) products, three of which - Luc Ngan lychee, Lang Van alcohol, and Chu noodles - are to be rated five stars by 2025. By 2030, the province eyes developing more than 400 OCOP products rated three stars or more.

To this end, it will take measures to not only boost production but also develop infrastructure and technology; facilitate human resources development; formulate supporting policies for farmers, enterprises, and localities; ramp up exports of local key products, such as lychee, processed vegetables, pork, and hill chicken; and establish an information system for food security.

Agriculture, forestry, and fisheries production in Bac Giang was valued at more than 36.5 trillion VND (over 1.58 billion USD) last year, up 6.7 percent against 2019. The province has so far developed 163 large-scale model fields of rice and vegetables, covering a combined area of nearly 5,150 ha.

Gross output per hectare of cultivated land reached 120 million VND in 2020, an increase of 14.3 percent compared to the previous year. Grain output exceeded 630,000 tonnes.

The pig population rebounded to 1 million heads. In addition to key livestock animals and poultry, such as pig and chickens, local farms have shifted to the farming of white horses, goats, rabbits, and honey bees. Meat output totaled nearly 220,000 tonnes live weight./.

List of Vietnam’s 500 fastest-growing firms unveiled

The 2021 list of the 500 fastest-growing companies in Vietnam (FAST500) was released by the Vietnam Report JSC and the VietNamNet e-newspaper on March 10.

Those named in the rankings, including the An Tien Industries JSC, Quang Ninh Port JSC, Vien Dong Investment and Trading Development JSC, Sao Mai Group, and Thai Trung Steel Rolling JSC, are described as dynamic businesses and “emerging stars” which have weathered economic difficulties, actively joined in the COVID-19 combat, and helped advertise Vietnamese brands to domestic and international enterprises.

FAST500, launched in 2011, is based on the compound annual growth rate (CAGR) in terms of revenue and business performance. Other criteria such as total asset, after-tax profit, and companies’ prestige on the media are also taken into account to identify their scale and stature in the industries they operate in.

General Director of Vietnam Report Vu Dang Vinh said the average CAGR of the FAST500 firms reached 28.2 percent during 2016-2019.

This period also witnessed the strong emergence of the private economic sector, which has continued to serve as a driver of the Vietnamese economy, he noted, adding that private businesses also account for the majority of the 500 fastest-growing companies, 83.2 percent.

Private enterprises are contributing about 42 percent of GDP and 30 percent of the State budget while employing some 85 percent of the workforce nationwide. Their stable growth and increasing presence in the FAST500 rankings are also a clear illustration of this sector’s development potential in the economy, Vinh added.

A ceremony to officially announce and honour the FAST500 companies are scheduled to take place in Hanoi on April 27./.

FLC to launch close to 20 realty projects in 2021

Property developer FLC Group has said this year, it plans to launch nearly 20 real estate projects on its strategic segments of resort and urban area.

The projects will be located in Hanoi, Quang Ninh and Vinh Phuc in the northern region, Thanh Hoa, Quang Binh, Binh Dinh, Gia Lai and Kon Tum in the central region, and Phu Quoc in the Mekong Delta province of Kien Giang.

The group has so far invested in more than 40 provinces and cities nationwide. In the last half of 2020, it began the second phase of two FLC tourism complexes in Vinh Phuc and Quang Binh provinces.

According to the company’s latest report for the fiscal year 2020, its pre-tax and after-tax profits were over 421 billion VND (18.3 million USD) and nearly 308 billion VND, respectively.

The outcome was attributed to higher revenue from realty projects and lower financial costs.

As of the end of last year, the group’s total asset neared 38 trillion VND, up nearly 20 percent from the previous year./.

Ca Mau eyes marine sector as main economic driver

The southernmost province of Cà Mau sees the marine economy as critical to its economic development.

With three sides bordering the sea, a coastline of 254 kilometres and three island clusters, the province has favourable conditions for seafood catches and marine aquaculture.

The province has a fishing ground of 80,000 square kilometres, one of the country’s four important fishing grounds. It contains a large volume of aquatic species, with many of them having high value.

There are more than 4,500 fishing boats in the province.

The province targets increasing its seafood output growth by 2.17 per cent a year from now to 2030, reaching 800,000 tonnes in 2030.

To meet the targets, the province will restructure its seafood catch activities, and zone fishing boat sea areas. It will also develop more co-operatives to improve income for fishermen, and reduce near-shore fishing activities to protect aquatic species and the environment.

Concentrated marine aquaculture areas will be expanded to produce a large quantity of seafood for exports. 

The province will also prioritise investment in infrastructure for aquaculture areas in coastal areas and islands. Marine fish, lobsters, bivalve mollusks, and marine algae are among the seafood products given priority for breeding.

The province will help workers whose fishing activities adversely impact aquatic species to find other jobs, and will create stable livelihoods for locals living in coastal areas.

Infrastructure development

Trần Văn Thời District’s Sông Đốc Town, which is one of the three key localities developing the marine economy, has invested in offshore fishing boat fleets and its first marine expressway from the town to Nam Du Island in Kiên Giang Province’s Phú Quốc City.  

The town is also planning to build the Sông Đốc Bridge to connect the southern and northern parts of the town.

Trần Quốc Lâm, deputy chairman of the town, said the marine expressway will boost the town’s tourism and socio-economic development.

The province will also build roads along the coast, reorganise coastal residential areas to mitigate the impact of natural disasters and climate change, and develop human resources for the marine economy.

Modern seafood processing factories will be developed for products that have high quality and high value and meet export requirements.

The province has called on investors to invest in infrastructure for the Năm Căn Economic Zone and Sông Đốc Industrial Park. It is also creating favourable conditions for investors in sea tourism and high-quality tourism resorts in coastal areas.

Bumper catch

Fishermen in the province had a bumper catch of seafood after Tết (Lunar New Year), which fell on February 12 this year.

In Sông Đốc Town, fishing boats caught a large quantity of various fish species and cuttlefish that sold for high prices, according to boat owners.

Dried seafood products were also purchased at high prices. Dried cuttlefish is in high demand for domestic consumption and export to China. 

Mango farmers face huge losses as prices drop

Farmers in the Mekong Delta region are facing difficulties selling mangoes due to the Covid-19 pandemic. 

The prices of the mangoes at a garden in Vinh Long Province range from VND5,000 (2 US cents)to VND10,000 per kilo, much lower than last year's price of VND17,000.

According to Trung Chanh Sweet Mango Cooperatives, they have 10 members that plant mangoes on 12ha of land and harvest 120-130 tonnes of mangoes per year. Before the Tet Holiday, traders already visited and placed orders to buy mangoes at the prices of VND21,000 per kilo. However, as the prices dropped, five members said their orders have been cancelled.

Nguyen Van Liem, director of the co-operatives, said, "Because of low prices and saltwater intrusion, I have suffered a loss of nearly VND60m (USD2,600). I used to be able to earn VND90m from the mango garden. Many other members of the co-operatives also suffered losses."

Le Van Tam from Quang Trach Hamlet, Vinh Long Province, said traders already paid VND10m (USD432) in advance to buy 1.5ha of mangoes for VND21,500 per kilo. But no one came on the harvest day.

"I can harvest about 25 tonnes of mangoes so I'm worried when no one has come yet," Tam said.

According to the farmers in Chau Thanh District, Hau Giang Province, the prices of some sweet mangoes at the market dropped by VND10,000 (43US cents) per kilo to VND5,000-VND17,000.

Bui Van Thuc from Hau Giang Province said, "The prices dropped so deeply compared to the same period last year."

He went on to say that the prices dropped because as the farmers had bountiful harvests, the markets were hit by the Covid-19 pandemic. Traders also said that the price drop was caused by supply surplus and export difficulties.

Van Don Airport welcomes first int’l flight after one-month shutdown

Van Don International Airport in the northern province of Quang Ninh welcomed its first international flight on March 11 after being closed for more than a month due to COVID-19.

Departing from Japan, the Vietjet Air Airbus A321 landed at the airport with 193 Vietnamese citizens aboard.

The airport welcomed another flight from Japan carrying more than 160 Vietnamese citizens in the evening of the same day.

Passengers are primarily students and workers who have expired visas or met with difficulties in accommodation, as well as other people at a disadvantage.

They had their body temperatures checked before departure and wore masks during the flight.

Van Don welcomed more than 180 flights from pandemic-hit areas last year carrying over 40,000 Vietnamese citizens and foreign experts.

In January, before the temporary shutdown, it welcomed one flight from Japan and four from the Republic of Korea bringing RoK experts to Vietnam to work.

The airport had to close on January 29 after an airport security staff was confirmed positive for the coronavirus SARS-CoV-2 that causes the COVID-19 pandemic.

Airlines have also offered discounts to mark the resumption of HCM City - Van Don flights./.

Report on COVID-19’s impact on Vietnamese businesses released

Micro- and small-sized enterprises and those in business for less than three years were the most affected by the COVID-19 pandemic, according to a report on the pandemic’s impact on businesses in Vietnam.

The report was released on March 12 by the Vietnam Chamber of Commerce and Industry (VCCI) and the World Bank in Vietnam. It surveyed nearly 10,200 enterprises nationwide on their views of the pandemic’s impact on the economy as well as the measures they took in response.

Ninety percent of businesses were seriously affected, it found, with many narrowing or suspending operations or even going bankrupt.

The number of enterprises ceasing operations was a record high, at in excess of 100,000.

VCCI Chairman Vu Tien Loc said the pandemic provided valuable lessons that will help enterprises overcome the difficulties and remain in business. Many have actively adjusted their strategies, stepped up restructuring and worker training, and paid more attention to the domestic market, support industries, and supply chains.

Dau Anh Tuan, head of the VCCI’s Legal Department, said the report also highlights the encouragement and support coming from the State.

The Government’s support policies amid COVID-19 were appreciated by the business community, with 75 percent of respondents describing them as helpful.

Businesses also emphasised the importance of stepping up administrative procedure reform and improving the efficiency of law enforcement, to create a favourable business environment and support the sustainable recovery of enterprises in response to the impact of the pandemic./.

Source: VNA/VNS/VOV/VIR/SGT/Nhan Dan/Hanoitimes