Securities companies warn of potential bull trap as VN-Index eyes 1,300 points

Securities companies expressed optimism about the VN-Index's potential to reach the 1,300 point range in the upcoming sessions. However, they caution investors to remain vigilant and be mindful of the possibility of a bull trap emerging in the market.

On the Hồ Chí Minh Stock Exchange, the VN-Index rose for third day on Friday, adding 0.4 per cent to close at 1,281.8 points.

An average of 1.2 billion shares were traded on the southern exchange during each session last week, worth VNĐ30.4 trillion (US$1.2 billion).

The VN-Index experienced a significant increase at the end of Friday's session, moving closer to the previous peak of around 1,277 points, supported by strong buyer demand. This positive momentum and improved liquidity indicated a dominant opportunity for continued recovery and progress towards the next target range of 1,290-1,300.

While upward movements may face some selling pressure, the index is expected to find notable support around the 1,250 level. Investors are advised to prioritise purchasing leading blue-chip stocks in sectors such as banking, construction, oil and gas, and textiles, said cafef.vn.

Looking ahead, it is anticipated that the VN-Index may encounter resistance in the range of 1,280-1,300 in the upcoming trading sessions, as indicated by BIDV Securities Co. However, the market is showing signs of entering a period of strong positive fluctuations, suggesting that the resistance area of 1,268-1,280 points may soon be surpassed.

Caution is advised by KBSV Securities due to the risk of a trend reversal when the index approaches the next resistance zone at around 1,300.

Investors should avoid chasing the market during upward trends and consider implementing a proactive selling strategy, taking partial profits when the VN-Index surpasses its previous peak, it said.

From a medium-term perspective, the VN-Index exhibits strong upward momentum. However, it is possible that the market may require more time to accumulate before breaking the 1,300 point barrier and establishing a sustained uptrend. SHS Securities suggests that after the recent increase, the market will likely undergo an adjustment phase and consolidate within the range of 1,150-1,250 points or 1,300 points. 

Tycoons from Thailand enter real estate fray

Vietnam’s real estate market is witnessing a new wave of Thai investment, with an expanding range of veterans.

This month Thailand’s largest industrial estate developer, WHA Group, proposed the development of an industrial and residential complex in the southern province of Ba Ria-Vung Tau.

In a meeting between WHA and the provincial People’s Committee, chairwoman and managing director Jareeporn Jarukornsakul said that the company planned to develop 1,200 hectares in Chau Duc district for industrial development.

WHA has been present in Vietnam since 2017, with its first 1,900-hectare industrial park established in Nghe An province. The company has been expanding to new localities, including Thanh Hoa and Quang Ninh.

“We plan to invest at least $1 billion in the next five years in Vietnam, which will in turn entice projects worth over $5 billion,” Jarukornsakul said.

In February, Central Group member Central Pattana established CPN Global Vietnam Co., Ltd. The new company operates mainly in consulting and real estate management, with a charter capital of $833,000, owned by Thai-headquartered CPN Global.

The move is considered an expansion step after the parent group announced it would pour nearly $1.5 billion into the Vietnamese retail market before 2027.

Central Pattana was established in 1980, It owns and manages nearly 40 high-end shopping centres, 10 office buildings, five hotels, and nearly 30 residential projects. As of September 2023, Central Pattana had total assets of more than $7.8 billion.

Elsewhere, Charoen Pokphand Group at the end of 2023 announced investment in CMAG Funds, a new investment fund managed by Wonder Capital Group, targeting high-end real estate in the Southeast Asia with a plan to mobilise up to $100 million.

Tran Van Binh, vice chairman of the Vietnam Real Estate Realtors Association, said that Vietnam was an emerging market for foreign investors. “Vietnam has recorded a strong wave of funding from Singapore, South Korea, Japan, and especially Thailand. Among them, residential, commercial, resort, and industrial real estate attract numerous developers,” Binh said.

However, as the world economic situation fluctuates, Binh said Vietnam will struggle to avoid severe impacts and the real estate market has encountered many challenges.

To help the domestic real estate market become vibrant and to open up and promote its development, the Vietnamese government has continuously increased the supply of real estate, building products suitable for housing needs. At the same time, Binh added, regulations are more open for foreigners to own property in Vietnam.

Vietnam’s real estate market has been attractive for Thai investors for years. In 2023, Thailand’s SHREIT Trust completed the sales of IBIS Saigon South Hotel and Capri by Frasers Hotel (in Ho Chi Minh City) to UK-based LT Rubicon, for $33 million.

“Investors are extremely confident on the fundamentals of Southeast Asia’s hotel space. The sale of this unique hotel portfolio not only underscores the resurgence of deal activity in Southeast Asia, but also reinforces the ongoing recovery of cash flows of hotels in the region,” said Julien Naouri, senior vice president of Investment Sales in Asia-Pacific for JLL Hotels & Hospitality Group, which acted as the exclusive advisor.

Meanwhile, Amata Group is doing business in developing and operating industrial, commercial, and residential parks in Vietnam. Amata Vietnam is developing 3,000 ha across seven industrial and urban area projects, seven subsidiaries, and one joint venture.

Out of the 111 countries and territories putting money into Vietnam, Thailand stood in ninth place in 2023, with nearly $14 billion invested.

Social housing needed to boost capital in real estate

Amid a gloomy real estate market, experts have pointed out that the affordable housing segment is the key to mobilising capital.

Le Xuan Nghia, an economist, suggests that focusing on developing affordable housing projects instead of social housing or worker housing under stringent conditions would help stimulate real estate capital flow.

"If the attention remains solely on social housing as it is now, it will lead to stagnation because those who can afford houses cannot buy them, while those eligible to buy lack the ability to pay," Nghia said. "The disbursement of the $5 billion package is very slow, plus, the social housing loan package under government Decree No.100/2015/ND-CP is almost a failure."

Having the same outlook on the $5 billion credit package, Phung Thi Binh, deputy general director of Agribank, believes that that package should be applied to those with moderate incomes.

"Agribank has provided loans to developers for the implementation of six affordable apartment projects in Binh Duong, and these projects have shown significant output," said Binh.

The State Bank of Vietnam (SBV) only restricts real estate credit for speculative segments, or projects that inflate prices, making the products difficult to consume, and making it difficult to circulate capital and recover debts.

However, for projects suitable for the average budget, the central bank still encourages them, according to Dao Minh Tu, Deputy Governor of the SBV.

Tu also said that such projects in the market were not numerous, mostly covering two segments: high-end apartments and social housing.

Banks seek to bolster financial standing with capital hikes

Many banks have announced plans for their upcoming annual shareholders' meetings (AGMs), with diverse issues such as dividend payments, capital hikes, and profit targets topping the agendas.

Ho Chi Minh City-based commercial lender Nam A Bank will be holding its AGM on March 29, seeking approval from shareholders for its 2024 targets, and the 25 per cent dividend payment plan through stock bonuses to raise charter capital.

Nam A Bank aims to raise its charter capital to above $570 million this year and $675 million in 2026.

Of the proposed $131 million capital addition this year, about $110 million, equal to over 264.5 million shares shall be distributed to existing shareholders through share bonuses, and almost $21 million, equal to 50 million shares, shall be sold to employees through an employee stock-ownership scheme.

Meanwhile, Hanoi-based retail bank LPBank will be hosting its AGM on April 27. After raising its charter capital by over $345 million last year, the bank is to unveil a plan to further bolster its capital resources, with concrete figures yet to be published.

With $1.06 billion in charter capital, LPBank is currently the tenth-largest commercial lender in the system.

Military Commercial Bank (MB) is also expected to submit to its AGM a capital hike plan for 2024 through dividend payments in form of share bonuses. An option for dividend payment in cash could also be considered at the AGM slated to take place on April 19.

With charter capital touching $2.17 billion, MB is currently ranked fifth in the system.

Major state lenders, however, are not the outsiders of the financial health empowerment drive. Vietcombank plans to seek shareholder approval for its capital hike plan through dividend payment in shares using 2022 undistributed profit sources approximating $904 million. The bank’s AGM is set to take place on April 27.

If approved by the State Bank of Vietnam (SBV), the bank’s charter capital could reach $3.2 billion.

Similarly, VietinBank is also mulling over raising its financial standing. The bank has got the go-ahead from the SBV and the Ministry of Finance to retain its 2022 profits in their entirety for its capital hike plan.

The bank plans to seek approval from relevant management authorities to keep back its entire annual profit volume for the 2024-2028 period for the purpose of raising capital, bolstering financial capacity, and expanding credit growth space.

Last year, 20 out of 27 listed banks had embraced capital hikes, with VPBank garnering the largest capital jump. After finalising a 15 per cent stake sale to Japan's SMBC Group, the bank possesses ample capital sources.

It had also completed dividend payment in shares to raise charter capital from $2.8 billion to $3.3 billion, becoming the largest bank by that metric, far ahead of the second and third banks on that list.

Vietnam’s risks ceding ground in financial leasing activities

Vietnam’s small-scale financial leasing market is being overwhelmed by foreign businesses, with local counterparts expecting a more favourable playing field fuelled by the new Law on Credit Institutions.

The medium and long-term capital demand of the Vietnamese economy is estimated to range from $29 billion to nearly $42 billion per year, yet still heavily relies on bank credit, with financial leasing occupying only a minimal portion of the market.

Financial leasing, a common channel for providing long-term capital in many developed countries, remains relatively small in Vietnam.

According to the Vietnam Financial Leasing Association (VILEA), the outstanding financial leasing debt-to-GDP ratio in Vietnam is very low, at less than 0.4 per cent, while it is 22 per cent in the United States and 18 per cent in China.

“The outstanding financial leasing debt in Vietnam is still tiny and cannot share the burden of providing medium and long-term capital with banks and corporate bond channels,” said Pham Xuan Hoe, secretary-general of the VILEA.

Financial leasing is an optimal form of medium- and long-term credit, helping businesses access capital easily without collateral. Unfortunately, Vietnamese enterprises, especially smaller ones, are not familiar with it, while large enterprises consider it insufficient for capacity.

In 2023, the debt of financial leasing companies group increased by 13.75 per cent, reaching $1.55 billion. In 2024, the credit growth of this group of companies is expected to rise by about 20 per cent, reaching $1.875 billion.

Enterprises expect that the Law on Credit Institutions 2024 (LCI), effective from July, will open up many opportunities for financial leasing companies. Specifically, the law allows financial leasing companies to establish subsidiaries to handle and exploit bad debts. At the same time, this law also allows small financial leasing transactions below around $4,150 without the need to control the purpose of capital use.

Hoe hopes the State Bank of Vietnam (SBV) will soon issue guiding decrees on financial leasing within the framework of the LCI so that companies in this sector can take advantage of opportunities. Additionally, he expects that relevant ministries and agencies will promptly resolve other obstacles to facilitate the market.

“If we don’t open up and synchronise legal corridors, we will surrender the market for asset leasing to foreign enterprises. Currently, many foreign firms are willing to sell equipment with deferred payments spanning three to five years to Vietnamese businesses, akin to financial leasing. They embed technology chips into the equipment, and businesses make periodic payments every three months; failure to pay results in the equipment being deactivated,” Hoe said.

Financial leasing companies are currently facing significant obstacles with Circular No.24/2023/TT-BCA regarding the issuance and registration of motor-vehicle licence plates. Some changes in new policies and procedures for registering and managing motor vehicles have created additional legal barriers, increased compliance costs, and lost opportunities for the development of financial leasing debt.

According to the VILEA, enterprises have proposed measures to reduce waiting time due to the cost and time of moving vehicles to registration places; high licence plate issuance costs, or proposed exemptions or reductions in transportation fees for customers renting in the province where they reside, while the vehicle plates are from Hanoi or Ho Chi Minh City because the headquarters of the financial leasing company are located there.

The VILEA’s statistics indicate that the outstanding debt for various types of car leasing in 2023 was $275 million, up 17.3 per cent compared to the same period in 2022. Preliminary statistics from four member companies indicate that the total amount of credit contracts not implemented due to Circular 24 regulations amounted to over $16.67 million. Moreover, the VILEA also believes the SBV needs to re-regulate the risk safety ratio for financial leasing companies, as the current 20 per cent ratio is too high.

Nguyen Quoc Hung, secretary-general of the Vietnam Banks Association, believes that the LCI fundamentally expands opportunities, maximising convenience for financial leasing companies. The issue is whether financial leasing companies have the capacity to catch market opportunities.

“The law has opened up a vast market for financial leasing companies, with no restricted subjects and favourable legal corridors. The remaining issue is whether companies in the sector can catch the opportunity, how businesses in need of long-term capital will consider financial leasing instead of just issuing bonds or borrowing from banks,” Hung said.

Banking support to back up business development

Vietnam’s central bank is taking swift action on interest rate movement to align with the government’s commitment towards supporting the business community.

On March 6, the State Bank of Vietnam (SBV) issued a dispatch to mandate credit institutions to publicise their lending rates in an attempt to render practical support to the business community. This is the third time it has taken this action since the start of the year.

SBV Deputy Governor Dao Minh Tu last week revealed that banks had been actively responding to the call. “We will continue to keep tabs of and urge banks to keep up decent work on interest rate disclosure, so that customers can choose suitable lending schemes for their plans,” said Tu. “In addition, the SBV continues to manage credit growth proactively, controlling inflation and supporting economic growth.”

Other efforts involve reviewing and simplifying loan procedures and documents, applying flexible forms and measures regarding collateral, and creating better conditions for borrowing.

To boost implementation, Tu proposed to take on measures to fuel investment and consumption, and propel economic growth.

The SBV has proposed the Ministry of Construction (MoC) to preside over and join efforts with management agencies and organisations to ensure the building of at least one million social housing units for low-income people and workers at industrial zones before the end of the decade, and submit decrees guiding the implementation of the Law on Housing, the Law on Real Estate Business, and relevant circulars.

The MoC also needs to come up with regular inspections of the pace of real estate projects and their legal compliance.

Tu also stressed the need for the Ministry of Natural Resources and Environment, the Ministry of Finance (MoF), and the MoC to team up with relevant management bodies to ensure that listed real estate businesses can efficiently raise investment capital in the stock market, avoiding speculation and price manipulation.

He also voiced expectations that the MoF bolsters cooperation with relevant bodies to improve regulations on stock and corporate bonds to turn the stock market into an effective medium- and long-term capital raising channel for businesses, reducing over-reliance on credit sources.

At last week’s conference on implementing monetary policy management tasks in 2024 chaired by Prime Minister Pham Minh Chinh and Deputy Prime Minister Le Minh Khai, a representative from a big property group asked the SBV to expedite policies so as to stabilise the macroeconomic situation, keeping deposit and lending rates stable to support business development.

“We hope real estate firms can access credit sources at lower cost. Currently, the gap in lending rates between state and joint-stock banks remains fairly large, from 4-5 per cent. We expect this gap to be shortened, and borrowing costs be further relaxed to aid firms,” the representative said.

Another representative from a major industrial group revealed that as an infrastructure developer, they need enormous capital sources.

“In recent years, businesses operating in this field often have long-term plans for bond issuance and debt repayment, causing an impact on credit lending,” he said. “Previously, when there was a policy from the PM, there would always be associated set planning and timeframe, so the effectiveness of the project could be calculated. However, later on, legal procedures often took longer, putting cash flow and payment plans in trouble.”

He expects the government’s guidance to have positive spillovers on localities, reaching each state employee at local level.

In January, the SBV required credit institutions to hold an initiative to publicise information about average lending rates on their websites, as well as the gap between average deposit and lending rates, the lending rate of their diverse credit programmes, and other related details.

The following month, the SBV continued to urge commercial banks to announce their interest rates and send reports to the SBV regarding deployment.

Firms offer better hiring incentives to attract skilled workers

Currently, many businesses receiving stable orders have started to recruit workers again. They offered better hiring incentives to attract skilled workers.

Some businesses need to recruit up to several thousand workers; some businesses previously had to cut workers, but now also put up advertisements for the recruitment of around 1,000 people. Many businesses even offered extra incentives to attract skilled workers.

For instance, after facing a difficult time in seeking orders resulting in massive labor cuts, PouYuen Vietnam Company in Ho Chi Minh City’s Binh Tan District has recently posted recruitment ads for about 1,000 workers. The company representative said that the company needs to recruit a large number of workers because it received more orders; therefore, it is ready to recruit skilled workers over 40 years.

According to the Chairman of PouYuen Vietnam Company Cu Phat Nghiep, to attract workers, in the recruitment information, the company commits to full implementation of insurance and salary, bonus and welfare regimes according to the present regulations. legal regulations. In addition, the company has buses to pick up workers in the provinces of Tien Giang, Long An, Tay Ninh, Ben Tre, and Dong Thap to work in HCMC. The company and its labor union also support workers in difficult circumstances and give gifts on holidays, the Tet holidays ( the Lunar New Year), and birthdays.

Furthermore, the company has a free general clinic, free classes to improve foreign languages and computers or other skills, an annual salary increase and many promotion opportunities. However, after nearly 1 month of recruitment, the company has not yet recruited the necessary number of workers. In particular, it found it hard to recruit skilled workers.

Similarly, many companies have advertised to recruit unskilled workers with quite high incomes but have not been able to find anyone. Before the Lunar New Year 2024, Viet Tien Garment Joint Stock Corporation in Tan Binh District put up a job posting to recruit new 1,000 workers for available positions in the sewing, fabric cutting, ironing, finishing, and packaging stages.

New applicants will receive an income of VND11 million-VND30 million a month. However, businesses have different requirements regarding skills depending on job positions.

The company has set up consulting and job recruitment desks at bus stations and train stations to recruit workers to return to Ho Chi Minh City to work after the Tet holiday. Along with that, the company distributed leaflets and recruitment information in many places and posted labor recruitment information at employment service centers and websites. Nevertheless, the company has only recruited 300 workers.

According to CEO of Viet Tien Garment Joint Stock Corporation Ngo Thanh Phat, the company is needing skilled workers. The company offers attractive salaries and incentives, but it is difficult to find workers at this time. This is also the first year the company sent people to distribute flyers with recruitment information at bus stations, but it just hired a few people so far.

Thai Duong Vietnam Textile and Garment Company Limited in Thu Duc City even asked its employees to recruit 200 unskilled workers from 18-55 years old whom they accidentally met. New recruits will be given salaries from VND9 million to VND12 million per month. Plus, the company also has a reward policy to give VND1.5 million to those who introduce workers to the company. Despite applying many recruitment methods, the company still does not recruit enough workers.

Techtronic Industries Manufacturing Vietnam Company in Tan Phu Trung Industrial Park in Cu Chi District also needs to recruit 100 workers with a monthly salary of up to VND 14 million along with welfare benefits and support for workers to find accommodation.

At the recent workshop on job training for middle-aged women organized by the Ho Chi Minh City Women's Union in collaboration with the city Women's Newspaper, Deputy Director of the Ho Chi Minh City Department of Labor, Invalids and Social Affairs Luong Thi Toi said that the southern largest city is one of the localities with the largest labor force in the country. Statistics show that over 4.7 million workers are working in all economic sectors by 2023 when many businesses are facing difficulties due to a lack of orders, leading to workers losing their jobs and reducing working hours.

However, according to a survey by the Ho Chi Minh City Union of Business Association (HUBA), industrial production activities show signs of recovery in some industries such as technology, mechanics, and household appliances. In addition, garment businesses are gradually recovering as most businesses have had enough orders for the first quarter, and a few businesses have had orders for the end of the second quarter.

A representative of the Management Board of Ho Chi Minh City Export Processing and Industrial Zones said that it is expected that in the first 6 months of 2024, many businesses in the city's export processing zones and industrial parks will need to recruit more than 10,500 workers. Of these, nearly 1,000 workers have university degrees, more than 550 people have college and intermediate degrees and nearly 8,800 unskilled workers. Skilled employees are high on companies’ list of priorities.

Vice President of Ho Chi Minh City Vocational Education Association Tran Anh Tuan informed that in the coming years, four trends will emerge in the Vietnamese labor market. That is an increase in the number of workers on technology platforms, an increase in start-ups, self-employed people, and career transition associated with soft skills; as a result, unskilled laborers will become weak. In addition, investment in machinery and technology will gradually become popular, so a strong shift in the labor market is forecasted that the market no longer needs cheap and unskilled workers but it needs high-quality human resources.

According to forecasts of the Center for Human Resource Demand Forecasting and Labor Market Information of Ho Chi Minh City under the Department of Labor, War Invalids and Social Affairs of Ho Chi Minh City), firms in the city need about 300,000-320,000 employees. Moreover, businesses need about 77,500-86,000 employees and 75,470-77,168 employees in the first quarter and the second quarter respectively while companies will hunt about 68,910-73,504 laborers and about 78,120-83,328 laborers in the third quarter and the fourth quarter each. To connect laborers and firms, the Department of Labor, Invalids and Social Affairs of Ho Chi Minh City has directed the center to organize job connections for workers through job exchanges.

Vietnam is 13th largest supplier of mangoes to US

Vietnam is the 13th largest supplier of mangoes to the US, with frozen mango imports into the market reaching US$988,000 last year, up 84.7% in volume and 9% in value compared to figures from 2022.      

The US mainly imported frozen and fresh mangoes from the country in 2023. Of which, fresh mango imports reached 500 tonnes, worth US$1.4 million, up 16.7% in volume and 38.2% in value.

At present, the average price of imported mangoes from the Vietnamese market surged by 26% to reach US$3,189.9 per tonne compared to 2022.

The Import-Export Department under the Ministry of Industry and Trade cited statistics from the US Department of Agriculture (USDA), indicating that the US’ demand for importing mangoes of all kinds has increased in the 2019 to 2023 period, with an average growth rate of 8.1% in value being recorded.

At present, the US primarily imports mangoes from Mexico, accounting for 61.3% of total mango imports, followed by Peru, Brazil, and Ecuador.

According to industry insiders, there remains plenty of room for Vietnamese mango exports to the demanding market as the import volume of mangoes accounts for only a small proportion of total US imports.

Australia opens door to Vietnamese agricultural workers

The Australian government has just announced the approval of the agriculture visa subclass 403 which allows workers in a range of agriculture sectors and skill levels from certain Southeast Asia countries including Vietnam to work in Australia.

According to Australia’s Department of Foreign Affairs and Trade (DFAT) which is in charge of the visa subclass 403, workers from the first four countries - Vietnam, Thailand, Indonesia and the Philippines – can apply for the visa and get an opportunity to stay in Australia to work for up to four years.

The visa holders can be employed to work in agriculture, forestry and fishery including horticulture, animal husbandry, harvesting, processing, and other support services. They can earn over 4,000 AUD monthly (2,600 USD) not including incomes from extra shifts.

According to the Australian Department of Agriculture, Fishery and Forestry, Australia lacks about 30,000 workers each year in horticulture alone. Its livestock, meat processing, dairy, and agricultural packaging industries are also facing labour shortages. Therefore, the visa subclass 403 will be an opportunity for Australian farms and local businesses to have more workers, solving the human resource problem.

Meanwhile, early this month, Vietnam's Deputy Minister of Labour, War Invalids and Social Affairs (MOLISA) Nguyen Ba Hoan and Australian Ambassador to Vietnam Andrew Goledzinowski signed a plan to implement the Memorandum of Understanding between the two Governments to support Vietnamese citizens to work in the agricultural industry in Australia.

Under the MoU, the two sides will support 1,000 Vietnamese workers to work in the agricultural industry in Australia under the Pacific Australia Labour Mobility (PALM) scheme in 2024.

Hoan said that Australia has a developed economy and modern agriculture, and the Vietnam-Australia labour cooperation will help Vietnamese workers get good incomes, guaranteed working conditions, and opportunities to learn advanced knowledge, skills, and science and technology. At the same time, labour cooperation in this field will meet the needs of human resources, bringing benefits to both countries.

Several agencies and units will be allowed to recruit workers to work in Australia's agricultural production sector. Australia will coordinate with Vietnam to identify, approve and announce the list of eligible units and enterprises to participate in the PALM scheme./.

Vietnamese securities companies race to boost capital amid high market demand

Securities companies in Việt Nam are racing to implement capital increases in response to high market demand. These companies understand the importance of boosting their capital to remain competitive and avoid falling behind their peers.

Viet First Securities Corporation (VFS) recently announced its plan to issue 120 million additional shares to existing shareholders. This proposal was approved at the 2023 annual general meeting and is awaiting confirmation from the State Securities Commission (SSC). If approved, VFS's charter capital will double from VNĐ1.2 trillion (US$48.7 million) to VNĐ2.4 trillion. The raised capital will be allocated equally to support proprietary trading and margin lending activities.

FPT Securities JSC (FTS) is planning to propose the issuance of 85.8 million shares to existing shareholders at its upcoming 2024 annual general meeting. This move aims to increase FTS's charter capital by over VNĐ858 billion. Additionally, FTS intends to introduce an Employee Stock Ownership Plan (ESOP) for its management staff, issuing over 5.5 million shares at a price of VNĐ10,000 per share. These plans, subject to SSC approval, would raise FTS's charter capital from over VNĐ2.14 trillion to VNĐ3.06 trillion.

ACB Securities Ltd Co (ACBS) has received approval from SSC and the Ministry of Finance to increase its charter capital by VNĐ3 trillion, reaching VNĐ7 trillion. The capital infusion comes from its parent company, Asia Commercial Bank (ACB).

SSI Securities Corporation (SSI) has obtained shareholder approval to issue 453 million shares, including a bonus issuance of 302 million shares at a ratio of 100:20 and a sale of 151 million shares to existing shareholders at a price of VNĐ15,000 per share with a ratio of 100:10. If successful, SSI's charter capital will reach VNĐ19.64 trillion, solidifying its position as a leading securities company.

Tiên Phong Securities JSC (TPS) is currently conducting a sale of 100 million shares to existing shareholders at VNĐ10,000 per share. If accomplished, TPS's charter capital will increase from VNĐ2 trillion to VNĐ3 trillion.

Ho Chi Minh City Securities Corporation (HSC) is implementing a plan to sell nearly 229 million shares to existing shareholders at a ratio of 2:1, with a selling price of VNĐ10,000 per share. The expected total value of the issuance is VNĐ2.29 trillion, which will be used to supplement capital for margin lending and proprietary trading activities. HSC also received approval to issue 68.6 million shares to pay dividends, increasing its charter capital from VNĐ4.58 trillion to VNĐ7.55 trillion.

At HSC's 2022 annual general meeting, CEO Trịnh Hoài Giang said that capital increases are essential for expanding market share and improving overall business efficiency.

"We have truly suffered in the past two years because we couldn't increase capital fast enough to seize the opportunities in the market. HSC has lost many customers, and some traditional customers have moved to other securities companies simply because they increased capital faster," shared Giang with the shareholders.

In fact, HSC used to be the second-largest securities company in the market with a brokerage market share of over 10 per cent before 2020. However, the company gradually lost market share and by 2023, it dropped to fifth position with a brokerage market share of just over 5 per cent.

HSC also used to be among the top three companies in terms of charter capital, but it has been surpassed by other companies such as VNDirect, VPBank Securities, SHS Securities and SSI.

By implementing their capital increase plans, these companies aim to regain market share, enhance competitiveness, and capitalise on the favourable market conditions. 

Banks given advantages to CASA ratio

Banks have been given favourable conditions to increase CASA (Current Account Savings Account), or non-term deposits, as interest rates of term deposits have continued to decrease.

CASA is a demand deposit and has very low interest rates. Last year when interest rates for term deposits were high, many customers transferred their idle money in their bank accounts to term deposits to enjoy higher interest rates. Now, due to the low interest rates of term deposits, they do not pay much attention to the transfer, making the CASA ratio in commercial banks higher.

For banks, attracting a high proportion of non-term deposits is very important, because it creates a cheap source of capital. Normally, the interest rates of non-term deposits are much lower than term deposits, being only 0.1-0.3 per cent per year.

According to experts, the high CASA ratio will create a premise for banks to improve their net interest margin (NIM) while keeping the lending rates at competitive levels in the market.

Banks, therefore, are promoting to lure CASA to benefit from the low-cost capital source.

Top 3 CASA ratios last year were MB Bank, Techcombank and Vietcombank and the ranking is forecast to remain unchanged this year. Techcombank’s CASA surged by 37 per cent compared to the beginning of this year, from VNĐ132.5 trillion to VNĐ181.5 trillion, while MB Bank's CASA also increases by 16.4 per cent, from VNĐ180.2 trillion to VNĐ228.1 trillion.

According to banking expert Nguyễn Trí Hiếu, as CASA is characterised by instability because customers can withdraw their non-term deposits at any time, banks, especially small-sized ones, must focus on improving their services to lure non-term deposits so as to increase their CASA rate.

"If a bank does not focus on developing digital services to enable it to connect with more ecosystems to serve the diverse needs of customers, they will either automatically choose another bank with better services, or withdraw their money to invest in other channels. At that time, the bank’s CASA will decline,” Hiếu said. 

Healthcare service quality must meet global standards

Vietnam is actively improving the quality of medical services at hospitals towards meeting international standards, aiming to engage foreigners for medical examination and treatment here.

Last year, the Ministry of Health (MoH) submitted to the National Assembly the revised Law on Medical Examination and Treatment with a patient-centred perspective. This law, which took effect in January, will further motivate hospitals to actively improve service quality and ensure patient safety.

In the context of strong developments at home and abroad, especially Industry 4.0, which has a profound impact on the entire society, the application of IT will help hospitals operate more safely and effectively. Therefore, hospitals need to promote the implementation of electronic medical records, apply IT solutions in improving medical treatment processes such as making medical appointments on applications, non-cash payments, and interconnected hospital test results, electronic prescriptions and others.

For a decade, the health sector has effectively implemented quality management of such services at hospitals, deploying a set of criteria for evaluating hospital quality, and guiding the medical examination process in the direction of applying the most convenient medical examination process, reducing inconvenience, and procedural requirements for patients with health insurance card.

Hospitals at all levels, including district-level ones, after applying over 80 quality criteria, have clearly seen increasing improvement in the quality of exam and treatment. The MoH has chosen Thai Nguyen Central Hospital as the venue for the Quality Management - Patient Safety Forum to enable participants to experience one of the hospitals actively improving service quality and achieving very encouraging results.

If hospitals do well in quality management and patient safety, the medical treatment system will develop sustainably and serve the people better. To better meet the people’s growing medical needs, the health sector has been continuously making efforts to change.

The achievements of the health sector have put Vietnam in the top 10 countries quickly completing the UN’s Millennium Development Goals in health. In addition, to improve the quality of treatment for people, the health sector has caught up with the medical level of countries in the region and the world, increasing the application of high technology in such services, moving towards specialising in fields to improve the quality of medical services.

The system of hospitals from central to local levels has invested in high-tech equipment and techniques such as CT scans, MRIs, radiotherapy, genetic technology, early cancer screening, and much more besides. Through the Satellite Hospital Project, many lower-level hospitals have received transfer of new, and modern technology, improving their reputation and expertise, attracting local patients and contributing to reducing the overload at central hospitals.

In particular, in obstetrics and paediatrics, 98 per cent of patients have been examined and treated at lower-level hospitals, instead of being transferred to higher-level ones.

Telehealth has also been promoted. Currently, the system has connected 1,400 points among hospitals of different levels to improve the quality of lower-level medical care, making it easier for upper-level experts to provide support quickly, promptly and effectively for lower-level doctors in implementation of difficult cases with requirements of high techniques, thus helping people enjoy high technical achievements right in their own localities.

In addition, since 2013, the MoH has piloted the project to send young volunteer doctors to mountainous, remote, border, island, and economically disadvantaged areas - particularly difficult societies to deploy and promote many difficult techniques and complicated cases.

Such solutions have made an important contribution to narrowing the gap in healthcare quality among levels, and attracting locals to stay at home for treatment, instead of going to Singapore, the US and Japan.

This trend shows that people are enjoying high technology at home. People with high technical needs have been largely met at medical specialised centres in Hanoi and Ho Chi Minh City because our treatment level is on par with advanced countries in the region. On the contrary, we have seen more and more foreign patients, even from developed countries, coming to Vietnam for medical examination and treatment due to high efficiency and reasonable costs.

The MoH has been continuing to promote administrative procedure reform through strongly simplifying health insurance procedures, reducing examination time, waiting time, and applications of technology.

Vietnamese hospitals need to make more efforts to meet basic quality standards. Hospitals with better conditions will apply advanced quality standards. If hospitals actively improve quality, we believe that in the near future, Vietnam’s system will have more hospitals meeting regional and global standards, thereby attracting foreigners who can afford to use services here.

Strategic choice ahead for virtual asset management

Any decision to recognise, ban, or regulate virtual assets could create conflicts of interest between traditional investors and those pursuing the digital economy sector, a conference on the issue has heard.

Experts and businesses operating in decentralised finance are actively contributing their views to support the Ministry of Finance in building and completing the legal system on virtual asset management by May 2025.

At the conference on building a legal framework for virtual asset management held by the Vietnam Blockchain Association (VBA) last week, vice president Nguyen Hung said, “The results of consultation with experts and relevant parties conducted by the VBA show that 60 per cent of opinions are leaning towards the option of banning virtual assets (VAs), while the remaining 40 per cent are neutral.”

Do Ngoc Quynh, general secretary of Vietnam Bond Market Association, said that Vietnam needs to make strategic choices regarding the current issue of virtual asset management, instead of trying to avoid it.

“If properly utilised, capital and resources from virtual assets will provide good support for the economy,” Quynh said. “But the important issue is how to manage it to achieve the best benefits for the country, while limiting negative impacts.”

Quynh added that the views of state management agencies in many countries on VA management are currently positive, but most of them are confused when it comes to appropriate behaviour because it is related to national sovereignty and currency.

“The national monetary policy in the early stages of opening up did not allow any foreign currency to be allowed for payment. But Vietnam later also issued a policy allowing people to keep USD and deposit it in banks, but not use it for payments in the economy. If the same thing were applied to VAs now, would it be okay?” he asked.

Remitano, a virtual asset service provider (VASP), hopes that Vietnam will soon issue a suitable legal system to create improvements and policy incentives for providers with many years of experience and reputation in the market.

“Improving the framework in the direction of creating positive conditions for VASPs to operate and develop will encourage foreign businesses to invest in Vietnam,” a Remitano representative said.

The total value on the global scale of virtual assets is expected to account for 10 per cent of global GDP, up to $16 trillion by 2030, according to the World Economic Forum.

In Vietnam, data from the US Department of Justice in 2022 shows that Vietnamese people profited by up to $238 million from cryptocurrency. The total value of cryptocurrencies entering the country from October 2021 to October 2022 amounted to more than $100 billion, according to statistics from Chainalysis.

Although there is no legal framework, virtual currency trading and trading activities in Vietnam are quite vibrant through international exchanges with popular digital currencies such as Bitcoin and Ethereum.

Tran Huyen Dinh, CEO of AlphaTrue JSC, said that by May 2023, the total transaction value of Vietnamese users on a top virtual asset exchange alone was about $20 billion each month.

“The over-the-counter market for virtual assets in Vietnam has a scale of no less than $100 million every day. These are statistics from mid-2023, when the value of Bitcoin was about $30,000, while now the price has increased nearly 40 per cent,” Dinh said.

Statistics from US group Crypto Crunch App also show that Vietnam has nearly 26 million virtual currency owners, ranking third in the world, just behind India and the US.

However, being in the top 20 countries with a high money laundering risk index, as assessed by the Basel AML Index 2023, Vietnam is in the process of researching and building a legal corridor to ban or regulate money laundering for VASPs, expected to be completed in May next year.

Several markets have crafted regulations to manage the cryptocurrency market and VAs over the years. In the US, cryptocurrency was first mentioned in the Infrastructure Investment and Jobs Act signed into law by President Joe Biden in 2021. A cryptocurrency market management law was announced by the European Parliament in May 2023 and is expected to take effect at the end of 2024. In mid-2022, the Hong Kong Securities and Futures Commission announced a mandatory licensing regime for platforms providing cryptocurrency services. Thailand also introduced regulations with its Digital Asset Decree, effective from 2018.

SK Group keen to develop solar and wind power in Vietnam

SK ecoplant company (belonging to SK Group), one of the Republic of Korea (RoK)'s leading investors in the field of energy development, signed a memorandum of understanding (MoU) on March 22 in Seoul on co-operation and development for renewable energy business in the nation with BCG Energy- a member of Bamboo Capital.        

The signing ceremony was attended by officials of the two companies, Kim Jeong-hoon, CEO of SK ecoplant Factory Solution Business Department, and Pham Minh Tuan, CEO of BCG Energy.

Under the terms of the MoU, the two companies will begin jointly developing a 700MW renewable energy project, including a 300MW onshore wind power, a 300MW rooftop solar power, and a 100MW onshore solar power.

BCG Energy is a pillar member company of Bamboo Capital Group and is in charge of the renewable energy segment. BCG Energy has built and put into operation large-scale solar power plants such as BCG Long An 1, BCG Long An 2, BCG Vinh Long, BCG Phu My, and BCG Gia Lai. In addition, the company also develops rooftop solar power systems in many provinces and cities across the country.

BCG Energy's total operational renewable energy capacity as of December, 2023, reached nearly 700MW. The company is also deploying an additional 229MW and plans to develop an additional 670MW ahead in the near future.

SK ecoplant is therefore poised to seek renewable energy projects which boast great potential, including wind power production in Gia Lai, a highland region in Central Vietnam that boasts abundant wind resources.

Jung-hoon said that with diverse experience, as well as specialised solution capabilities in engineering and renewable energy, SK ecoplant will be able to contribute to making full use of Vietnam’s abundant renewable energy resources.

The company will also strive to contribute to the global carbon reduction plan whilst taking the lead in solving climate issues based on the renewable energy value chain.

In August, 2023, SK ecoplant was appointed as the key company in the Concho solar power project in Texas.

Thai Binh seeks Swiss investment at Zurich seminar

A working delegation from the northern province of Thai Binh, in collaboration with the Switzerland-Vietnam Business Gateway (SVBG) and the Swiss-Asian Chamber of Commerce (SACC), held a seminar in Zurich city on March 22 to showcase local investment potential and attract Swiss businesses to the locality.

Speaking at the event, Chairman of the provincial People’s Committee Nguyen Khac Than said Thai Binh boasts advantages in land bank for industrial development, with 10 industrial zones and 49 industrial clusters covering nearly 3,000ha ready to welcome investors.

Thai Binh always welcomes investors from around the world, especially those from Switzerland, to explore and invest there, he said, hoping that the Vietnamese Embassy in Switzerland and business support organisations such as Swiss Global Enterprise, SwissMEM, Swiss Textiles, SACC and SVBG will facilitate connections between the province and Swiss companies and investors.

Thai Binh commits to all possible support for foreign firms, especially those from Switzerland, to boost cooperation and investment, he added.

In the Q&A session, the Vietnamese delegates discussed Thai Binh's specific areas open to Swiss investment, including finance, banking, insurance, manufacturing, pharmaceuticals, food processing, renewable energy and tourism services./.

Vietravel Airlines to increase Reunification Day flights

Vietravel Airlines, a subsidiary of tour operator Viettravel, has planned to provide more flights on some air routes on the coming Reunification Day April 30 and May Day holiday.

The daily frequency on the HCM City-Hanoi route will be increased to 2-3 return flights, and there will be two return flights on the HCM City-Danang route.

In April, the carrier will operate charter flights linking HCM City and Danang to Japan.

Prices of air tickets on the Reunification Day and May Day holidays have been on the rise. By March 14, the lowest return air tickets on the Hanoi-Nha Trang route on Tuesday at off-peak hours was around VND4.4 million (USD179) per person. The figure has reached up to VND6 million for flights at more convenient times.

Vietnam Railways Corporation will arrange more trains on the Hanoi-Vinh route to serve the Reunification Day April 30 and May Day holiday.

In the first two months of this year, Vietnam welcomed more than three million foreign visitors, up 68.7 percent on-year. Of the figure, 2.6 million came by air, up 1.6 times on-year.

Vietnam has set a goal to serve 17-18 million international tourists this year.

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