The high prices of raw materials have caused domestic steel companies to increase selling prices many times to compensate for production costs and reduce losses.

In the context of weak domestic steel demand and rising costs pushing up global commodity prices, the selling prices of finished steel are increasing slower than the prices of input materials.

Analysts say that the business performance of construction steel companies is still insignificant.

According to the Vietnam Steel Association (VSA), steel prices have continuously increased mainly due to the fact that input prices of input materials for steel production such as coal, iron ore, scrap steel, and hot-rolled coils are still climbing.

VSA believes that the high prices of raw materials have caused domestic factories to increase selling prices many times to compensate for production costs and reduce losses.

Since the beginning of the year, steel prices have been continuously adjusted up, with a total increase of more than 1 million VND per tonne. Although the upward momentum has slowed down, steel prices will continue to increase in the coming months.

As for steel giant Hoa Phat Group, the analysis team of VNDirect Securities Company said: "With weak demand, Hoa Phat Group may transfer the risk of increasing input material prices to consumers. In addition, low factory operating efficiency in the first half of 2023 will also affect the company's profit margins, so we forecast Hoa Phat Group's net profit may be still negative in the first quarter of 2023."

New data released by the group shows that consumption of steel products in domestic and foreign markets both decreased over the same period. This reflects two different states of the construction market in early 2022 and 2023.

In the first quarter of 2022, construction steel consumption reached a record high thanks to strong growth in market demand. In 2023, the market was quiet due to weak demand, leading to negative steel consumption.

Accumulated in the first two months of this year, Hoa Phat Group's crude steel output reached 809,000 tonnes, down 42% over the same period last year. Sales of construction steel, hot rolled coil (HRC) steel and billet was recorded at 877,000 tonnes, down 34% compared to the first 2 months of 2022.

At the recent 2023 General Meeting of Shareholders of Hoa Sen Group, a representative of this enterprise said that steel exports still saw many potential uncertainties in the context of increasing competition and challenges caused by trade barriers.

Forecasting the market situation in 2023, according to this business, the fierce competition in the domestic market, tightening monetary policies, increasing interest rates, and escalating exchange rates may negatively affect the economy and production of steel companies.

Hoa Sen Group proposed two consumption plans for the financial year 2022-2023.

Under the first plan, the sales volume will reach 1.52 million tonnes, the revenue will be 34 trillion VND and the profit after tax will be 100 billion VND. In the more positive plan, this enterprise can achieve a sales output of 1.62 million tonnes, revenue of 36 trillion VND and profit after tax of 300 billion VND.

Previously, according to the report of the fiscal year 2021-2022, the consumption output of Hoa Sen Group reached more than 1.81 million tonnes, completing 91% of the yearly plan; revenue reached 49.7 trillion VND, completing 107% of the plan; consolidated profit after tax reached 251 billion VND, completing 17% of the plan.

According to the analysis team of VNDirect, the prolonged low demand of the domestic civil construction sector will have a significant impact on the demand for construction materials in 2023. This means that the demand in short term for steel products remains low.

However, the demand for iron and steel is expected to improve thanks to more public investment projects being implemented.

Recently, the Ministry of Transport was assigned by the Government to disburse public investment with a capital of 94 trillion VND this year, 1.7 times higher than in 2022.

Other positive signals from the export market, especially recovering demand in China - the largest steel producer and consumer, accounting for more than 50% of total supply and demand in the world - will support domestic steel enterprises.

The research team of DSC Securities said that iron ore prices have witnessed a strong increase of nearly 50% from 85 USD per tonne to nearly 120 USD per tonne.

DSC expects demand as well as steel prices to increase further in the second half of 2023. However, the DSC team noted that these recovery signals are still quite weak and likely to be unsustainable.

China had abolished its zero-COVID policy, but it will still take a certain amount of time to really restart the economy. According to DSC, FDI growth and public investment are also not certain factors. When the supporting factors have not been put into practice, steel prices may end up gaining momentum due to high expectations and enter a correction span.

However, last week, steel stocks still recorded gains in the context that the steel industry is expected to recover thanks to the government's boost in public investment and recovery in demand in China.

Accordingly, Nam Kim Group (NKG) increased by 8.8%, Hoa Sen Group (HSG) rose by 7.2% and Hoà Phát Group (HPG) gained by 4.7%.

Vietnam shares experience in solving economic difficulties with Laos

Deputy Minister of Industry and Trade Tran Quoc Khanh hosted a reception for his Lao counterpart Bunthong Duonsavan on March 13 in Hanoi, during which he affirmed that Vietnam welcomes delegations from Lao ministries and sectors to learn experience in developing trade and industry.

At the meeting, the Lao official briefed on Laos’ economic difficulties in the first months of 2023, saying that his country’s inflation rate in February 2023 stood at 41.3% , up 1 % from the figure reported in the previous month.

According to the guest, the Vietnamese Government has promptly applied effective policies and solutions to control inflation and stabilise the domestic petroleum market.

He said that the Lao side is eager to learn experience related to management policies from Vietnamese ministries and sectors, especially regarding developing industrial parks and clean production centres, promoting renewable and green energy development, and stabilising the petroleum market.

Deputy Minister Khanh said Vietnam will do utmost to fully support Laos in overcoming its difficult economic situation.

He shared Vietnam’s experience in attracting investment in developing industrial parks, and in operating and managing the petroleum market.

The officials affirmed that the two sides will closely coordinate in implementing measures to promote bilateral trade and industrial cooperation, contributing to realising the set goal of increasing two-way trade by at least 10% in 2023.

According to the data of the General Department of Vietnam Customs, two-way trade between Vietnam and Laos reached 244.2 million USD in the first two months of 2023, up 0.4% year-on-year. The three-month figure is estimated at 408.2 million USD, up 1.1% over the same period in 2022.

Vietnam, UK promote trade, green technology cooperation

Minister of Industry and Trade Nguyen Hong Dien hosted a reception in Hanoi on March 13 for UK Prime Minister’s Trade Envoy for Vietnam, Thailand, Myanmar and Brunei Mark Garnier and UK Consul General in Ho Chi Minh City Emily Hamblin to discuss two-way trade toward celebrating the 50th anniversary of bilateral diplomatic ties this year.

Dien congratulated the UK on completing the fifth talks on joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in Vietnam’s southern province of Kien Giang in early March.

Through this event, Vietnam reaffirmed strong support for the UK's accession to the deal and the further deepening of not only diplomatic ties but also friendly and multi-faceted cooperation between the two countries, he said.

He noted the trend of green transition in bilateral trade and called on the UK to support the transfer of green technologies to Vietnam, promote trade in eco-friendly products, meet market standards, and take advantage of the UK-Vietnam Free Trade Agreement (UKVFTA).

Dien also had detailed discussions on the plans set for the 50th anniversary of diplomatic ties, including a series of events jointly organised by the two countries’ agencies. He hoped that they would be a success, marking a brilliant year of development in bilateral relationship.

Thanking the UK for joining other countries to provide 15.5 billion USD for Vietnam’s transition to clean energy and emission reduction, the minister suggested both sides immediately issue a roadmap and necessary mechanisms to use this fund effectively.

The host proposed cooperating with the UK in the development of nuclear power, human resources training, technological transfer and policy counselling, especially producing equipment for renewable energy, technology in energy transition and smart grid operation centres.

Garnier, for his part, hoped that Vietnam would continue helping the UK call on other countries to complete CPTPP negotiations.

He congratulated Vietnam on being the second country in ASEAN, behind Indonesia, to successfully sign the Political Declaration on Just Energy Transition Partnership (JETP) with the UK, EU, and G7 countries.

Hailing Dien’s proposals, he affirmed the UK's commitment to sharing its experience, expertise, patents and technology with Vietnam to enable the country to produce products in service of renewable energy, adding that the two countries are stepping up the establishment of an offshore wind development centre as well as embarking on a series of cooperative activities to share experience in this field.

Following the meeting, both sides could quickly build a cooperation programme to effectively realise reached agreements as soon as possible, the host said.

According to the General Department of Vietnam Customs, two-way trade between Vietnam and the UK hit 6.83 billion USD in 2022, up 3.4% annually. Of which, Vietnam's exports rose by 5.2% to over 6.06 billion USD. However, the UK's exports to Vietnam decreased by 9.2% to 771 million USD.

As of December 20, 2022, the UK recorded 507 projects in Vietnam with a total capital of over 4.19 billion USD, ranking 15th out of 141 countries and territories investing in the country. Last year, the UK had a total of 53 new projects worth 64.33 million USD in Vietnam.

Binh Duong eyes to boost investment bond with Canadian locality

The southern province of Binh Duong wishes to strengthen cooperation with and attract more investment from Laval city in Canada’s Quebec region, as well as Canadian businesses, said Vice Chairman of the provincial People’s Committee Mai Hung Dung.

During an investment promotion conference with representatives from Laval city on March 13 in Binh Duong, Dung said the province is calling on investment in hi-tech, less labour-intensive and environmentally friendly industries and those that create high economic value such as financial services, logistics, supporting industry, and high-tech agriculture.

Bonnet Huor, Deputy Director of the Department of Economic Development at the the Mayor Office of Laval, Quebec, said that he is impressed by the technology and innovation platform-based development of the Vietnamese locality with a strategic vision towards the future.

Laval - the third largest city in Quebec is a potential area with a vibrant investment environment in Canada, he said, adding that the region is seeking for opportunities to promote long-term cooperation in Binh Duong.

In the first two months of 2023, Binh Duong attracted more than 340 million USD in foreign direct investment (FDI), equaling to over 441% the same period in 2022.

Data from the provincial Department of Planning and Investment, Binh Duong ranks second the country in terms of attracting FDI  with 4,092 valid projects worth nearly 40 billion USD, accounting for 9% of the total foreign investment capital of the country.

Canada is the 14th largest foreign investor in Vietnam with 244 projects worth 4.8 billion USD. It ranks 25th among 65 countries and territories investing in Binh Duong with 23 projects with a total investment of 86 million USD.

Investment capital in Ba Ria-Vung Tau slows in Q1

Investment attraction in industrial parks (IPs) in the southern province of Ba Ria - Vung Tau showed signs of slowing down in the first quarter this year, reported the management board of the provincial IPs.

Specifically, they drew four new projects worth 35.44 million USD which occupy a total area of 10.57ha during the period, head of the board’s investment management office Nguyen Van Phu told a meeting chaired by Chairman of the provincial People’s Committee Nguyen Van Tho on March 13.

Of them, three were foreign-invested ones and the remainder was from a domestic source.

Besides, three domestically-invested and nine FDI projects registered an additional capital of 6.6 trillion VND (286.9 million USD) and 66.15 million USD, respectively.

As of March 13, there were 553 valid projects in local IPs, including 278 domestic and 25 foreign ones. The total leased land area was 3,389 hectares, reaching an occupancy rate of 55.82% out of the total 15 IPs in the province and 65.92% out of the total IPs with completed infrastructure.

The board attributed that to political conflicts and increasing inflation in the world that hurt the global and domestic economy. Investors still face difficulties in their business operations, with broken supply chains and falling revenue, leading to limited investment capital.

Speaking at the event, Tho said the province targets attracting investment selectively, with a focus on eco-friendly and hi-tech projects.

He also asked the departments, agencies and localities to offer all possible support to businesses and investors to step up infrastructure construction and site clearance.

Tra fish exports predicted to recover from third quarter

Thanks to better input material supply and the application of a closed production process, tra fish industry is expected to overcome difficulties and become profitable again in the third quarter of this year, according to analysts.

Data from the Vietnam Association of Seafood Exporters and Producers (VASEP) showed that in the first two months of this year, revenue from seafood export topped 1.1 billion USD, down 26% year on year, with tra fish exports dropping 38% to 240 million USD.

According to Vietcombank Securities Limited Company (VCBS), the demand of tra fish plummeted from the fourth quarter of last year after positive signs in the beginning of the year. A fall of 20-30% was seen in the production and export revenue of the product from last November due to high inventories and inflation in importing countries.

The downturn trend continued in the first month of 2023, with respective fall of 51 and 60% over the same period last year.

However, tra fish exports increased slightly at 4% in February to 662 million USD. But the VCBS predicted that tra fish demand will continue to decrease in the majority of the markets until the third quarter when festive events in year-end come and the Chinese market is opening.

 2023 will still be a good year for businesses that can promote their advantages in material supply. (Photo: VNA)
While high feed prices and extreme weather conditions are effecting small-scaled farms, large-scaled businesses are eying great opportunities to expand their market share thanks to their self-supply of input materials and the application of a closed production process, according to the VCBS.

The VCBS reported that in 2022, tra fish exports hit a record of 2.44 billion USD despite the high feed price. In the year, strong growth of at least 30% was seen in tra fish export revenue generated from the majority of the markets, especially some Middle East countries at 115-429%.

The firm held that 2023 will still be a good year for businesses that can promote their advantages in material supply.

Exporters held that after a long period of decline in revenue due to low tra fish prices in the first half of this year, domestic exporters will enjoy recovery in the third quarter.

Consumers willing to pay premium for better quality: survey

Most of the respondents in a nationwide survey have declared they will pay a premium for high-quality Vietnamese products that meet specific standards, and are originally traceable, good for health, and environmentally friendly.

The opinion survey, launched in September last year, polled consumers in person and virtually and collected their votes on high-quality made-in-Vietnam products, with more than 61,000 votes recorded.

It revealed that green consumption has become a trend in the domestic market, and consumers are paying more attention to the factors of safety, product origin, and function in addition to quality and prices. Some 43% of the polled people were concerned that businesses might use banned substances in production and preservation, and that raw materials are not of high quality for production.

For the retail sector, general trade (GT) still reigns supreme, while modern trade (MT) is attractive to those fond of fast moving consumer goods (FMCG). Meanwhile, multi-channel shopping is a popular trend now and in the future and, as a result, it will gradually make the boundary between MT and GT blurred and bring more convenience to shopping activities.

Although online shopping is no longer a boom as it was during the COVID-19 lockdown, it remains very popular, especially among young shoppers. The development of e-commerce is forecast to be a trend long into the future. Online information channels are also increasingly being approached by consumers, with more than 40% of the respondents learning about products through forums, social networks, websites, and online newspapers, among other methods.

Vu Kim Hanh, chairwoman of the business association of high-quality Vietnamese products, said that these new trends promote consumption habits across the globe, as consumers become more and more aware of the relationship between their health and wellness and the surrounding ecosystem. Food that is clean, safe, and verified to meet quality standards or certified organic is also the first choice for many people, she added.

HCMC hikes coefficients for land prices

The HCMC government has raised the coefficients for land prices applicable to the compensation and resettlement plans in the city this year, with effect from this Saturday, March 18.

The highest coefficient is set at 25 for residential land and 38 for agricultural land.

The coefficients for residential land in Thu Duc City and Hoc Mon District increased by 10 notches over 2022 to 6-25 and 10-25, respectively.

The coefficients for housing land in the suburban districts of Binh Chanh, Nha Be and Cu Chi now stand at 6-22, 10-21 and 13-20, respectively. Other districts have their coefficients below 20.

Meanwhile, Binh Chanh District has the highest agricultural land price coefficient in 2023, at 15-38. This means farmland in the district can be compensated at a maximum level of 38 times higher than the price announced by the authorities.

Districts 1, 3, 4, 5, 6, 10, 11, and Tan Phu, Tan Binh and Go Vap districts have the coefficients for agricultural land at 35. Other districts have coefficients below 30.

Non-agricultural land and non-residential land would be compensated pro rata. The price of commercial and service land for compensation is set at as much as 80% of the price of nearby residential land, while the figures drop to 60% for other land types.

The coefficients are used to calculate the land prices based on the local real estate market conditions, socio-economic conditions and land price lists and to facilitate resettlement work.

The 2023 coefficients were revised higher and five months earlier than 2022.

Gold soars after two US banks go bankrupt

Gold is currently attracting money seeking a safe haven amidst concerns about financial instability among investors worldwide.

After two US banks, Silicon Valley Bank (SVB) and Signature Bank (SB), went bankrupt last weekend, the global gold price jumped sharply, pulling up the gold price in Vietnam by VND350,000 per tael compared to the previous weekend on March 13.

At around 4:15 p.m. in Ho Chi Minh City, SJC Company quoted buying and selling prices at VND66.3 million and VND67 million per tael, respectively, up VND300,000 in the buying rate and VND200,000 in the selling rate. At the same time, in Hanoi, PNJ Company bought SJC gold at VND66.35 million and sold it at VND67 million per tael, up VND350,000 in the buying rate and VND200,000 in the selling rate.

In the world gold market, the precious metal closed the week in New York with an increase of US$37 an ounce to $1,868.1 an ounce. On the afternoon of March 13 (Vietnam time), the spot gold price on the Kitco exchange continued to rise strongly to $1,884.18 an ounce, up more than $16 an ounce compared to the closing price in New York. This price, after conversion, is equivalent to around VND53.2 million per tael, lower than the domestic SJC gold price by about VND13.8 million per tael.

International experts said that after the collapse of the two banks, US authorities had declared the protection of depositors' interests in banks. Experts also assessed that the US financial system is much stronger than before. However, investors are concerned about the risk of a financial crisis, making gold a safe haven asset for investors to pour money into.

Deputy PM inspects Long Thanh Airport's progress

This afternoon, Deputy Prime Minister Tran Hong Ha led a Government delegation to check the progress of the Long Thanh International Airport Project and transportation projects connecting the airport.

The Ministry of Transport proposed the People's Committee of Dong Nai Province to focus on settling the compensation at the request of the Government, the Ministry of Planning and Investment and relevant ministries and agencies to closely monitor the selection of the contractor for the railway station package.

Country’s coffee industry in need of renovation

A seminar on building a chain of high-quality Vietnamese coffee products associated with green growth and sustainable development was held in Buon Ma Thuot City in the central highland province of Dak Lak on March 12.

According to opinions at the event, building raw material areas, investing in deep-processing facilities, innovating coffee varieties, and implementing organic farming are some of the renewal factors to improve Vietnam's coffee industry and intensify its values and competitiveness in the international market.

Vietnam currently remains the world's second-biggest coffee exporter. However, the export of raw and unprocessed products leads to restrictions on their values and economic benefits.

Minister of Agriculture and Rural Development Le Minh Hoan emphasized the coffee industry of Vietnam in general and Dak Lak particularly needs to consider building a coffee culture with the participation of coffee growers, businesses, suppliers, and the local authorities. In addition, parts of coffee trees, such as leaves, roots, and stems are used to make by-products to bring more benefits to farmers.

The event which was co-organized by the Ministry of Agriculture and Rural Development and Vietnam Coffee-Coco Association (VICOFA) and chaired by Minister of Agriculture and Rural Development Le Minh Hoan is part of the 8th Buon Ma Thuot Coffee Festival.

The 8th Buon Ma Thuot Coffee Festival themed "Buon Ma Thuot - Destination of coffee worldwide" is scheduled to take place in the Central Highlands province of Dak Lak on March 10-14.

VinFast delivers 782 electric cars in two months

VinFast Trading and Service Ltd Co, a subsidiary automaker of conglomerate Vingroup, reported on March 14 that it delivered 774 electric vehicles (EVs) to customers in the first two months of 2023.

In February alone, the firm handed over 416 EVs, including 266 VF8 and 150 VF e34.

Along with the Vietnamese market, VinFast has also officially delivered the first VF 8 electric vehicles to customers in the US, receiving their positive feedback.

As planned, VinFast is also preparing to hand over the VF 9 and VF 5 Plus models to domestic customers, and export the next batches to the international market.

Regarding service, VinFast has just announced that it will inaugurate “No day off" service workshop system from March 15 across the country to meet the demand of and provide an excellent service experience for customers.

VinFast is still the only automobile firm in Vietnam that provides the 24/7 mobile services, including mobile service, charging service and rescue service.

Globally, the firm has also put into operation a 24/7 global repair support and consulting centre to promptly provide advice and technical support for the service workshops in markets where VinFast cars are present.

Vietravel Airlines prepares for Chinese tourists’ return

Vietravel Airlines is gearing up for the return of Chinese tourists, following China’s decision to include Vietnam in the list of countries to which group tours will be resumed on a trial basis from March 15.

China is a market always expected to help with the recovery of Vietnam’s aviation and tourism sectors, a representative of Vietravel Airlines said, noting that the Vietravel tourism and aviation group sees many positive signals when China decided to open group tours to Vietnam from March 15.

As a member of Vietravel, which possesses a complete tourism ecosystem with various inbound and outbound tours, Vietravel Airlines has been making thorough preparations to access and serve a large number of holidaymakers, especially in the peak season of summer, the carrier said.

As the Chinese Government will permit only group tours, the airline, with the advantage of its strong bonds with the Vietravel travel company, has also signed contracts with some partners to conduct charter flights between Vietnam and China in the coming time.

It will focus on the routes connecting some big cities of China, namely Hangzhou, Changzhou, and Kunming, with Nha Trang city in Vietnam’s central province of Khanh Hoa.

The reopening of the Chinese market promises vibrancy for both tourism and aviation sectors of Vietnam. However, complying with flight safety and anti-pandemic rules of the two countries is among challenges carriers need to overcome, according to Vietravel Airlines.

Domestic investors open less than 100,000 new accounts in first two months

Newly opened accounts in February increased by nearly 28,000 on-month to January, but they were still low compared to the average level of the past two years, according to data from the Vietnam Securities Depository (VSD).

In February, domestic retail investors opened 63,731 new accounts and institutional investors opened 133 new accounts.

In the first two months of the year, domestic investors opened a total of less than 100,000 new accounts. At the end of February, the total number of domestic retail investor accounts reached 6.94 million accounts.

After a surge from 2021 to the first half of 2022, the influx of new investors has slowed down significantly.

Liquidity, therefore, decreased gradually for the fourth month in a row. In February, the average matching value on the Ho Chi Minh Stock Exchange (HoSE) was only about 8.6 trillion VND per session, down 10% month-on-month. The figure continued to decline sharply to only about VNĐ6.5 trillion per session since the beginning of March.

The drop in liquidity was partly due to a reduction in foreign investors' transactions after a period of fast and strong buying. In February, foreign investors net sold 640 billion VND on HoSE. The trend continued in the first few days of March.

Last month, foreign investors opened 176 new accounts, a sharp increase from 112 in the previous month. Specifically, retail investors opened 151 new accounts while institutional investors opened 25 new accounts in the past month. At the end of February, there were a total of 43,029 accounts belonging to foreign investors.

Vietnam Airlines adds more flights between Vietnam and India

National flag carrier Vietnam Airlines has unveiled that it will move to increase the number of flights between the nation and India by 30% as of March 26 in order to meet the rising demand for travel among tourists from the two countries.

The plan will see the carrier operate four flights per week on the Hanoi-New Delhi route, departing on Mondays, Wednesdays, Fridays, and Sundays.

Furthermore, the airline will also operate three flights per week on the Ho Chi Minh City-New Delhi route, with flights departing on Tuesdays, Thursdays, and Saturdays.

This comes after Vietnam Airlines officially put direct flights connecting Vietnam and India into operation in June last year.

The new air service has therefore made an important contribution to strengthening trade, cultural, and social connectivity between the two countries.

Moreover, the carrier is preparing to launch a new route to Mumbai, one of the largest economic, cultural, and social centres of India.

Recent years has seen India become one of the leading trade partners that has established comprehensive and extensive relationship with Vietnam, especially in the field of tourism.

The Indian market also represents one of the top 10 countries with the largest international search volume for Vietnamese tourism.

Novaland expects to issue 2.9 bil shares this year
     
Novaland has proposed a plan to increase charter capital through stock issuance to shareholders, according to the company’s document. 

The real estate developer specifically requests that shareholders approve the Board of Directors decisions regarding the company's restructuring, including the negotiation and implementation of new share and convertible bond issuances as well as other actions to boost operating capital and financial restructuring.

Novaland intends to release more than 975 million individual shares as part of the proposal to issue new shares at a price of at least VNĐ10,000 (US$0.42) per share. The company will make at least VNĐ9.75 trillion if it is effective. Professional securities and strategic investors are buyers of stocks.

The funds will be used to restructure, settle past-due debts, carry out projects, pay taxes and fulfill other obligations to the State budget, and raise the working capital of its subsidiary.

It also intends to issue 1.95 billion additional shares to current shareholders at a ratio of 1:1, which means that holders of each share will be entitled to purchase one additional share. The share's sale price cannot be less than VNĐ10,000.

Novaland can therefore earn at least VNĐ19.5 trillion if it effectively sells all of the shares. It plans to use the funds to restructure its debt, pay off past-due debts, pay staff salaries, cover general operating expenses, and carry out initiatives that the company has invested in.

The two plans are expected to run in 2023, or according to the decision of the Board of Directors, after the State Securities Commission (SSC) issues the certificate of registration to offer more shares to the public.

If both issuance options are authorised and fully implemented, Novaland's charter capital will increase by nearly 2.5 times, from roughly VNĐ19.5 trillion to VNĐ48.7 trillion, making it one of the top companies with the largest charter capital on the Vietnamese stock exchanges.

Additionally, it plans to issue shares under the Employee Stock Option Programme (ESOP) in 2023. The volume is up to 1.5 per cent of the company's outstanding shares at the moment of issuance, and the price is at least VNĐ10,000.

Members of the Board of Directors and employees on the approved list by the Board of Directors are among the subjects of the offering. The goal is to raise the benefits for Board of Directors and employees while luring talent.

Regarding the handling of domestic bond debt, there are now hundreds of bondholders who have agreed to swap bonds for real estate products during this period after the proposal of the company, Bùi Thành Nhơn said in his letter published on February 24. Besides, Novaland is also making efforts to negotiate and agree with the lenders on debts. 

Profits of Honda’s parts suppliers skyrocket last year
     
Along with the strong growth of Honda Viet Nam, its parts suppliers also recorded positive business results in 2022.

In the consolidated financial statement of the fourth quarter, Viet Nam Engine and Agricultural Machinery Corporation (VEAM) said that its net revenue reached over VND4.7 trillion (US$200.4 million) in 2022, up 18 per cent year-on-year. Its earnings per share (EPS) reached an unprecedented high at VND5,713.4.

VEAM is one of the major components suppliers for Honda Viet Nam. In 2022, the company’s sales for Honda Viet Nam jumped 33 per cent on-year to VND1.22 trillion, accounting for nearly 26 per cent of its total revenue.

Pho Yen Mechanical JSC (Fomeco), a subsidiary of VEAM, is also a partner supplying spare parts for Honda Viet Nam. Last year, Fomeco's revenue reached VND1.31 trillion, a gain of 23 per cent over 2021. Of which, the sales for Honda Viet Nam reached VND358 billion, accounting for more than 27 per cent of total revenue.

Fomeco's main products are ball bearings, motorcycle parts, auto parts, conveyor rollers, spare parts for the construction industry and other mechanical products. Other major customers of Fomeco are Yamaha, Suzuki, Hanwa, Nippo, Piaggio and Panasonic.

Its profit after tax doubled over 2021 to nearly VND66 billion. The company’s EPS was also at a high level of VND9,942.

Fomeco has spent about VND29 billion of its profit after tax on the bonus and welfare fund, which is almost half of the company's annual profit.

The Machinery Spare Part No.1 JSC (FUTU1), another subsidiary of VEAM, specialises in distributing spare parts for Honda Viet Nam. In 2022, FUTU1 posted a net revenue of VND1.06 trillion, a 36.5 per cent increase compared to 2021, resulting in a record profit after tax of VND76 billion, up 58 per cent.

Established in 1996, Honda Viet Nam is one of the leading companies in the field of motorcycle and automobile manufacturing in the Vietnamese market.

Last year, the vehicle giant sold more than 2.4 million motorbikes, up 20.9 per cent over 2021 and occupies more than 80 per cent of the Vietnamese motorcycle market shares. Honda's automobile segment also recorded outstanding growth with more than 30,600 vehicles sold, a rise of 41.2 per cent year-on-year.

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