After setting a new record high of 86 million VND (3,400 USD) per tael on May 6, SJC-branded gold prices further rose on May 7.

At 9:30 am, Saigon Jewellery Company Limited reported an increase of 500,000 VND per tael, now trading at 84.8 million VND for sellers and 87 million VND for buyers.

DOJI quoted SJC gold at 84.6- 86.1 million VND (sell - buy) per tael, up 300,000 per tael from May 6’s trade.

Bao Tin Minh Chau listed SJC gold prices at 84.75 million VND for sellers and 86.65 million VND for buyers, an increase of 400,000 and 200,000, respectively./.

VN-Index soars nearly 2% on rising risk appetite

The market opened the new week on a positive note with many stocks witnessing big gains, while liquidity also soared. 

On the Hồ Chí Minh Stock Exchange (HoSE), the benchmark VN-Index increased 20.55 points, or 1.68 per cent, to 1,214.58 points. This marked its third day of rising.

The market's breadth was positive as the number of gainers surpassed that of losers by 282 to 59. Liquidity on the southern bourse rose by 22.9 per cent to nearly VNĐ21 trillion (US$822.8 million), equivalent to a trading volume of 864.6 million shares. 

The 30 biggest stocks tracker VN30-Index climbed 19 points, or 1.51 per cent, to 1,274.62 points. Up to 28 ticker symbols in the VN30 basket edged up, with one - Vietjet Aviation JSC (VJC) - hitting ceiling price. And two stocks ended lower. 

Other airline stocks, Vietnam Airlines JSC, also logged the biggest intraday gain of 7 per cent. 

Both airlines saw positive business results in the first quarter of the year. Vietnam Airlines reported profit after tax of VNĐ4.44 trillion during the period as it is strengthening its international flights and restructuring, while Vietjet's profit after tax increased 209 per cent year-on-year to VNĐ520 billion. 

The HNX-Index on the Hà Nội Stock Exchange (HNX) rose 4.07 points, or 1.78 per cent, to 232.29 points. More than 87 million shares were traded on the northern exchange, worth nearly VNĐ2 trillion. 

The market's uptrend was led by blue-chip stocks, with Vietnam Rubber Group (GVR) being the biggest gainer. Shares of the rubber producer surged by 6.12 per cent on Monday, followed by BIDV (BID), Vietinbank (CTG), VJC, Mobile World Investment Corporation (MWG) and Hoa Phat Group (HPG), up in a range of 2.6 - 7 per cent. 

The securities group, one of the market's attractive industries, also posted big rallies such as SSI Securities Corporation (SSI) jumped nearly 3 per cent, Saigon - Hanoi Securities JSC (SHS) soared 3.3 per cent, VNDirect Securities Corporation (VND) surged 3.94 per cent and VIX Securities JSC (VIX) increased 4.76 per cent. 

Foreign investors also poured capital into the domestic market today as they net bought more than VNĐ310 billion on the two main exchanges.

Particularly, they net bought nearly VNĐ242.1 billion on HoSE and VNĐ62.3 billion on HNX. 

Vietnam acts to seize opportunity to join global semiconductor supply

The Government of Vietnam has been taking drastic and prompt measures to seize the opportunity to join the global semiconductor supply.

On May 3, the Vietnam National Innovation Centre (NIC) and Samsung Vietnam officially kick-started a technology talent development programme called ‘Samsung Innovation Campus (SIC)’ for the academic year 2023-2024 in Hanoi.

The SIC is the first joint effort between Samsung Vietnam and the NIC to realise the goal of training 50,000 semiconductor engineers by 2030.

According to the Memorandum of Understanding on cooperation in implementing high-tech education and development projects signed between Samsung Vietnam and NIC in late 2023, the two sides will coordinate to organise six training classes on high technology for about 200 students from universities across the country.

Samsung Vietnam is one of NIC's major partners in implementing high-tech education and development projects to foster technology talent, turning Vietnam into an innovative hub in the region and the world.

It is also a key part of a project worth 26 trillion VND (1.02 million USD) on human resources development in the semiconductor industry to 2030, with a vision to 2045 that the Ministry of Planning and Investment has submitted to the Government for approval.

The project is said to be a quick systematic move of Vietnam in the semiconductor-relating race that is getting hotter around the world.

In the first phase of the project, Vietnam will focus on human resources training for the stages of design, packaging, testing and those related to the production of equipment, materials and chemicals.

Minister of Planning and Investment Nguyen Chi Dung said that with abundant and quality labour supply, human resources have become Vietnam's biggest and most prominent advantage compared to other countries and economies in the world.

Therefore, focusing on investing, training, and retraining to enable the workforce to enter the market as soon as possible is a strategic direction and a decisive factor for Vietnam to seize opportunities for cooperation, investment, technology access and transfer, thus promoting rapid and sustainable economic development which is based on science, technology and innovation, Dung said.

Recent positive movements in policies and actions have demonstrated Vietnam's determination to participate more strongly in the global semiconductor ecosystem.

Seeing the favourable investment environment and advantages in human resources, large global corporations have increased investment in Vietnam’s high technology and semiconductor industries.

The semiconductor industry ecosystem has been formed in Vietnam with more than 50 enterprises, most of them are foreign-invested enterprises such as Intel, Amkor, Hana Micron in packaging and testing; Ampere, Marvell, Cadence, Renesas, Synopsys in design and Lam Research, Coherent in equipment manufacturing.

Major Vietnamese enterprises such as FPT and Viettel are also taking part in the design stage that accounts for 53% of the chain value.

In Vietnam, the new development trend of high-tech industries has changed quickly in the past half a year, especially when the Hoa Lac NIC facility came into operation. Following Intel or Amkor, other "eagles" are also eyeing investment in Vietnam, for example, the US’s NVIDIA.

After the visit to Vietnam by President and CEO of the US chip giant Jensen Huang in December 2023, Vice President of the group Keith Strier also paid a working visit to Vietnam in April 2024 to explore investment cooperation opportunities in the semiconductor and AI industry.

Minister Dung said that in the semi-conductor race, timing is a key decisive factor, which requires Vietnam to take prompt and drastic actions to nurture its semiconductor ecosystem and seize opportunities./.

Textile and garment businesses face difficulties due to lack of domestic supply

The textile and garment industry has long faced an imbalance between production stages.

The two stages at the beginning and end of the chain, yarn and sewing, have a very large scale of development, while weaving and dyeing have remained industry bottlenecks for years.

Infrastructure for weaving, dyeing and fabric production is still limited, and there is no spatial planning for development and centralised wastewater treatment, said Nguyễn Thị Tuyết Mai, Deputy General Secretary of the Việt Nam Textile and Apparel Association (Vitas).

Some localities refuse textile and dyeing projects, saying that the textile and dyeing industry causes pollution, although investors say they will use modern processing technology that will not have a negative impact on the environment.

Meanwhile, to enjoy preferential tariffs from new generation free trade agreements (FTAs), businesses must meet the rules of origin “from the yarn on” or “from the fabric onwards”.

“To solve the problem of limited raw material supply, we need to take advantage of the benefits of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to attract foreign investment in the raw material supply chain,” Mai told the Kinh Doanh (Business) online magazine.

Experts believe that if the bottleneck in the dyeing process could be resolved, it would help raise Việt Nam's position in the global textile and garment supply chain, enabling it to take full advantage of FTA tariff preferences.

Not only with the issue of textile dyeing, the shift of investment into the supply shortage of the Vietnamese textile and garment industry is still not as expected.

Domestic enterprises in the textile and garment industry still lack connection and fail to fully complete the supply chain within the country. As a result, the supply of raw materials is heavily reliant on imports at various stages of the production process.

Up to 90 per cent of textile and garment raw materials of enterprises in HCM City were dependent on imports (mainly from China), while only 10 per cent was local supply, said Phạm Xuân Hồng, Chairman of the HCM City Textile and Garment - Embroidery Association (Agtek).

In general, shifting investment into the textile and garment raw materials sector required more effort from domestic enterprises, rather than relying solely on foreign direct investment (FDI), said Hồng.

To reach the goal the Government has approved in the "Strategy for developing Vietnamese Textile, Garment and Footwear Industry by 2030, with a vision by 2035", one decisive solution needed is to increase investment in the industry's supply shortage.

We must consider investing in the supply shortage in the textile and garment industry as an urgent need, noted Hồng.

This requires policy support promotion and capital sources for domestic enterprises to invest in textile and garment supporting industries.

Furthermore, in areas and localities with a high density of textile and garment enterprises, it is also recommended to build a number of large industrial parks in the field of textile and garment supporting industries with new technology to ensure environmental standards for "greening" the textile industry. 

Vietnam leads in export rice prices globally

The prices of Vietnamese rice in the international market rose by 3-8 USD per tonne last week, helping Vietnam return to the top position in export rice prices, according to the Vietnam Food Association (VFA).

According to the association, the prices of 5% broken rice of Vietnam, at 585 USD per tonne, is higher than the same type of Thailand by 3 USD per tonne, and 10 USD per tonne higher than the same product of Pakistan.

For 25% broken rice, Vietnamese product is priced at 555 USD per tonne, 23 USD higher than that of Thailand, and 13 USD higher than that of Pakistan.

Meanwhile, Vietnam’s 100% broken rice price stays stable at 470 USD per tonne, but is also higher than that of Thailand and Pakistan by 21 USD and 25 USD per tonne, respectively./.

Viettel showcases defence tech at DSA, NATSEC exhibitions in Malaysia

The Military Industry and Telecoms Group (Viettel) is showcasing its high-tech defence industry products at the 2024 Defence Service Asia Exhibition and Conference (DSA) and the National Security Asia 2024 (NATSEC) exhibition in Malaysia from May 6-9.

Viettel High Tech, a subsidiary of the Viettel Group, represents Viettel at one of the world's top five defence and security exhibitions. In its 18-year history, the event is considered to have the largest scale, with the participation of over 1,200 enterprises from 60 countries and territories. Nearly 400 delegations from 45 countries, and 50,000 visitors are also expected to attend.

A representative from Viettel High Tech said Viettel joins the DSA as the national booth of Việt Nam, alongside 33 other national booths from around the world across a vast 45,000sq.m exhibition space.

Under the theme 'Building a Secure Future for Developing Nations', Viettel will present a diverse range of military products and high-quality resources, providing comprehensive research and development solutions to international customers.

After the success of deploying 5G services in India, including contracts signed at the International Defence Exhibition in Vietnam 2022, Viettel High Tech has gained new cooperation opportunities in the military and dual-use product sectors.

Upon announcing its participation in DSA & NATSEC, Viettel High Tech received cooperation proposals from major partners in the Middle East and Asia, opening up new business opportunities, especially in the realm of 5G technology.

Task force formed to investigate sudden surge in airfares

The Civil Aviation Administration of Vietnam (CAAV) is investigating the recent hike in airfares following public outcry over the high prices.

The move was ordered by the Transport Ministry in response to concerns that have impacted the public’s travel plans, especially during peak periods such as the recent five-day national holiday.

Consisting of 10 members from the CAAV, a team will conduct a comprehensive assessment over a three-day period (from May 7 to 9), focusing on the pricing, transparency, and disclosure of information related to airfares from the beginning of the year.

CAAV has been asked to address any violations within their jurisdiction and report its findings to the ministry by May 10.

The public has expressed concerns over the surge in domestic airfares due to multiple taxes and fees.

However, the Tax Management and Policy Supervision Department under the Ministry of Finance has refuted these claims.

It clarified airfare charges are categorised as “specialised aviation service fees”, which are not related to the fees outlined in the Law on Fees and Charges.

“The increase in airfares is not a result of taxes or fees,” it said.

Reports from local media revealed that domestic flight prices for the recent holidays have been 1.5 times higher than usual since March.

For instance, a round-trip ticket from Hà Nội to Quy Nhơn (which takes one and a half hours) between April 27 and April 30 cost over VNĐ5 million (US$200).

This airfare is VNĐ600,000 higher than the peak period price a month prior, and VNĐ2 million higher than the following week.

The aviation industry has undergone significant changes recently, including airlines restructuring operations and reducing their fleets.

Bamboo Airways, which previously operated 28 aircraft, now operates only a few after returning all Embraer E190 aircraft to the leasing company.

Pacific Airlines has also suspended operations, returning all aircraft to address debts.

In addition, a recall of Pratt & Whitney (PW) PW1100G engines earlier this year has led to inspections and repairs of manufacturing defects.

Thousands of these engines are expected to be inspected this year and next, potentially impacting airline operations, particularly during peak seasons.

Local airlines such as Vietnam Airlines and Vietjet Air, among others, will need to adjust their fleets or incur massive costs to lease aircraft to maintain operations, experts said. 

Bắc Giang drives Dành Mountain ginseng consumption

Bắc Giang Province is boosting its effort to promote the consumption of Dành Mountain ginseng, a precious medicinal herb from Tân Yên District, aiming to develop and enhance the value of its distinctive local products.

Tân Yên district’s government has prioritised the development of Dành Mountain ginseng to establish it as a signature local product. This product boasts superior quality, comparable to Korean ginseng, and is traditionally considered a royal treasure and a healing herb for the eyes of Kinh Tự Đức’s mother.

Tân Yên district has about 125 hectares of Dành Mountain ginseng cultivated in Việt Lập, Liên Chung and Cao Thượng communes. In 2024, the district is expected to harvest about 30 tonnes of ginseng root and over 60 tonnes of ginseng flowers. The harvesting season occurs annually between August 15 and September 30 every year.

Dành Mountain ginseng products are diverse, including flowers, fresh ginseng roots, ginseng tea, shampoo, soluble forms, soft drinks, energy drinks, nutritional drinks, herbal medicines, eye-brightening pills, ginseng wine and ginseng flower tea. These products are widely available in major retail outlets such as Mega Market, Go! supermarket chain, Shopee e-commerce platform, pharmaceutical, confectionery and drink companies.

Recently, a conference to facilitate the connections and promote the consumption of Dành Mountain ginseng products was organised at the foot of Dành Mountain, Liên Chung Commune, Tân Yên District. It served as a platform to introduce the origin, quality, cultivation process, care and process of Dành Mountain ginseng, providing opportunities for domestic and foreign businesses and traders to seek partnership and sign product consumption contracts.

Vice chairman of Tân Yên District People's Committee, Ngô Quốc Hưng, said that Dành Mountain ginseng, known as the 'royal treasure product' from Tân Yên district, has superior quality, nutrition, food safety, and is increasingly trusted and chosen by consumers.

He said Tân Yên district is committed to creating the most favourable conditions to support ginseng growers, businesses and traders in harvesting, processing and consumption, providing the best support services, ensuring security, traffic safety and other services.

Dr. Đồng Thị Kim Cúc, Deputy Director of the Centre for High-tech Biological Experiments under the Vietnam Agricultural Genetics Institute, said the quality of Dành Mountain ginseng depends on the age of the plant. Some main components in the ginseng are saponins, flavonoids, organic acids, amino acids and saccharides. The saponin content of Dành Mountain ginseng is equivalent to Korean ginseng. For ginseng aged from 7-8 years, the saponin content is 1.5 times higher than Korean ginseng.

David Trần, Regional Director of ASEAN Countries, iBenetor Group (USA), said that the research findings have confirmed the high saponin content of Dành Mountain ginseng, which can be applied and processed into various nutritious products beneficial for health. Therefore, the company is pleased to cooperate with the units to gradually bring Dành Mountain ginseng products to domestic and international consumers. In particular, the company is currently aiming to promote these products in ASEAN countries and the US market.

Many opinions at the conference have also suggested that authorities should focus on zoning Dành Mountain ginseng raw materials areas, strengthen communication and marketing through various platforms such as Facebook and TikTok and establish production links between ginseng growers and individual business households, cooperatives, domestic and foreign enterprises.

Additionally, technical training in ginseng cultivation for locals, promoting organic farming model and linking ginseng product promotion with community tourism development were also advocated.

MoF refuses to cut import tax for some materials of animal feed production

The Ministry of Finance has refused to reduce import tax rates for some crucial materials of animal feed production as proposed by Bến Tre Province's voters.

Earlier, Bến Tre Province's voters have expressed concerns about low selling prices of certain agricultural products, such as shrimp and beef, coupled with high cost of feed, that has led to financial losses for many livestock households. Therefore, the voters recommended the ministry consider reducing taxes on input materials of animal feed production to alleviate the financial burden and lower the overall cost of this product.

In response to petition from voters in Bến Tre Province, the ministry said the existing preferential import tax rates on raw materials for animal feed production are low enough to encourage the development of the domestic animal feed production industry and reduce dependence on imported raw materials.

The ministry has implemented reductions in preferential import tax rates, bringing them down to zero for wheat (previously 5 per cent and 3 per cent) and to 2 per cent for corn (previously 5 per cent). It's worth noting that a portion of the corn supply is sourced domestically. Additionally, preferential import tax rate for some other materials is nearly zero, such as fine flour, raw flour, post-slaughter by-products, bran and broken rice.

Meanwhile, some materials essential for poultry and pig production are subject to a preferential import tax rate of 3 per cent, while that tax for soybean meal is 2 per cent. Notably, the raw materials that are not produced domestically enjoy the preferential import tax rate of zero to reduce the production costs.

Besides that, reduction and extension of taxes, fees, and charges are still maintained to support the domestic livestock industry.

Recently, a number of ministries, branches and associations have proposed to cut the import tax rate of soybean meal. The Ministry of Finance is collecting opinions from these entities as well as the Việt Nam Chamber of Commerce and Industry to compile a proposel for the submission to the Government. 

Vinpearl prepares for IPO by end of 2024

Vingroup is expediting the necessary procedures to list Vinpearl on the Vietnam stock exchange by the end of this year.

At the company's AGM at the end of April, Vingroup chairman Pham Nhat Vuong spoke about IPO plans for Vinpearl and Xanh SM.

Vinpearl is one of the largest tourism, resort, and entertainment service brands in Vietnam, encompassing a wide range of offerings such as hotels, resorts, spas, conference centres, dining options, golf courses, and international-standard amusement parks.

Vingroup owns 45 establishments under the Vinpearl brand, located in 17 cities and provinces, with a total capacity of over 18,500 hotel rooms and villas. These establishments include three theme parks and two entertainment complexes, as well as two wildlife conservation parks and four golf courses. Vingroup has plans to continue expanding its scale both in Vietnam and worldwide in the near future.

In 2023, Vinpearl recorded a net profit of $27.9 million, equivalent to $76,250 per day. This marks the second consecutive profitable year for the company after a period of losses due to the impact of the pandemic. However, Vinpear's profit the previous year decreased by over 80 per cent compared to 2022.

In 2024, Vinpearl expects the market to continue its strong recovery, particularly with international tourists. The company aims to achieve exceptional growth compared to 2023 by maximising guest attraction, leveraging sales channels, and implementing new marketing strategies.

Phone and component exports hit $18.4 billion in first four months

Phones and components were Vietnam's second most valuable export commodities in Q1, and the country has also risen to become the second largest supplier of these products globally.

According to the General Statistics Office, phone and component exports in April earned more than $4.2 billion, up 9.1 per cent on-year. For the first four months of the year, this figure reached more than $18.4 billion, an increase of 6.6 per cent on-year.

A report from HSBC said that since 2021, Vietnam's smartphone market share globally has increased significantly. Vietnam has won 13 per cent of the total export market share, surpassing India to become the world's second-largest smartphone exporter behind China.

In terms of markets, the United States has become Vietnam's largest customer instead of China (in the first quarter of last year). Specifically, in the first quarter of this year, the US spent more than $3.05 billion importing all types of phones and components from Vietnam, an increase of 30.4 per cent on-year. The Chinese market ranked second with more than $2.5 billion, down 28 per cent on-year.

Notably, the United Arab Emirates has risen to become Vietnam's third-largest customer with almost $898 million, a sharp increase of 55.3 per cent on year.

Vietnam has become attractive to phone manufacturers around the world. In April, Apple CEO Tim Cook arrived in Vietnam, opening up more potential between our country and the US technology giant. During a meeting with Prime Minister Pham Minh Chinh, the CEO also proposed promoting high-quality cooperation and investment, committing to buy more components produced by suppliers in Vietnam, supporting innovation activities, and increasing spending for suppliers in Vietnam.

Also in April, Samsung Electronics Vietnam Thai Nguyen (SEVT) - the largest export phone manufacturing factory in the world - achieved an important milestone of reaching one billion Galaxy smartphones. SEVT's key products are smartphones and tablets.

Samsung started investing heavily in Vietnam in 2008 with the Samsung Electronics Vietnam (SEV) factory in Bac Ninh province. To date, Samsung has surpassed the milestone of 2.13 billion smart devices in the Galaxy ecosystem manufactured in Vietnam.

According to Counterpoint Research, global smartphone shipments in 2024 are expected to increase by 3 per cent to 1.2 billion units. The high-end phone segment (priced at $600-799) is expected to maintain stable growth in 2024, increasing by 17 per cent on-year thanks to old high-end models and folding screen models.

This research firm expects AI-integrated smartphones and foldable phones to improve phone sales, especially in the second half of this year.

According to Statista Market Research Company, in 2024, the smartphone market in Vietnam is expected to reach $4 billion, a compound growth rate of 1.45 per cent from 2024-2028. In 2024, smartphone sales in Vietnam will reach 21.4 million units.

Markets eye major producers as coffee prices soar

Domestic coffee prices have now surpassed VNĐ130,000 per kg (US$5.12), exceeding the price of black pepper. 

Robusta coffee prices in Đắk Lắk Province were quoted at VNĐ103,000 per kg last Friday, while in Lâm Đồng Province it was VNĐ102,500 a kg. 

Statistics from the General Department of Customs showed that as of April 15, Việt Nam exported about 660,000 tonnes of coffee, with a value of over $2.23 billion. The average export price of coffee in the first quarter of 2024 reached $3,289 per tonne, a 48 per cent gain from the same period last year. 

However, in the first half of April only, the average export coffee price soared to $3,790 per tonne.

Prices are rising amid the supply of Vietnamese coffee is gradually depleting, according to the Vietnam Coffee-Cocoa Association (Vicofa). Stockpiles in businesses and among farmers are low, resulting in a reduction in export volume from now until the end of the crop season.

Đỗ Hà Nam, Vice Chairman of the Vicofa, said that in the first six months of the 2023-2024 coffee crop, which is from October 2023 to March 2024, Việt Nam exported 956,000 tonnes of coffee, with a total value of over $3 billion. As a result, the country has exported approximately 60 per cent of the estimated total production of around 1.6-1.7 million tonnes for the current crop season.

With current domestic coffee prices, coffee farmers in the Central Highlands of Việt Nam stand to benefit if they have stored inventory. However, many farmers regret not having any stock left to sell. The limited market supply makes it challenging for enterprises to find coffee. 

General Director of Simexco Daklak Lê Đức Huy said that farmers' plantation restructuring has affected the domestic coffee supply. While some households still have supply, it is scarce. 

“Predicting future coffee prices is challenging as the new harvest season is six months away,” Huy added. 

According to the leader of Simexco Daklak, many businesses are hesitant to sign contracts if they cannot secure a stable source of supply. Most businesses have already made their purchases as they anticipated difficulties in production volume. 

With the current sharp price increase, buyers are more cautious and will only make purchases when absolutely necessary.

Nguyên Nam Hải, Chairman of the Vicofa, said that coffee prices have never been as high as they are this year. The surges have capped the purchasing capacity of businesses and have led to supply chain disruptions for those involved in long-distance buying and selling, while future contracts carry a high level of risk.

While Việt Nam’s new coffee harvest is expected in October, the current severe drought conditions in the Central Highlands are causing concerns among farmers regarding the upcoming crop's production volume.

Despite the high investment costs for coffee plants due to expensive fertilisers and ongoing drought conditions increasing irrigation expenses, many farmers who had previously neglected coffee cultivation are now returning to invest in it.

Moreover, concerns about supply shortages due to prolonged hot and dry weather in major coffee-producing countries in Southeast Asia, including Việt Nam, have pushed the price of Robusta coffee futures on the London market above $4,000 per tonne. This is a record high since coffee futures trading began in 2008.

Robusta coffee futures closed last week at $3,555 per tonne, down 21.8 per cent from the peak of $4,546 hit on April 25 but increasing 18.2 per cent from the beginning of the year. 

Carlos Mera from Rabobank said that prolonged hot weather in Southeast Asia is severely affecting the coffee crop, leading to supply constraints and increased stockpiling by processors. 

Additionally, processors are preparing for the European Union (EU)’s upcoming ban on coffee grown on deforested land. 

Global coffee consumption is expected to rise by 20 per cent during 2023-2024, particularly in Asia. Major coffee-consuming countries like Indonesia and China are experiencing significant consumption increases, according to the US Department of Agriculture (USDA). 

The market is closely watching the developments in Brazil, the world's largest coffee supplier.

Despite challenges like shrinking land area and climate change impacting coffee yields, Huy from Simexco DakLak emphasises the need for collaboration and shared development among coffee supply chain members. 

It is important to eliminate unreliable partners and focus on improving production through seed selection, garden renovation and adopting new cultivation techniques in coffee-growing regions, he added. 

Building material firms eye upbeat performance in Q1

Businesses in building material production are posting buoyant business results in the first quarter (Q1) of this year amid cautious full-year projections.
The business picture of a raft of building material makers, particularly steelmakers, is encouraging in Q1 of this year, with both revenue and profit figures steadily rising.

Major steelmaker Hoa Phat Group reaped $1.3 billion in revenue and $116 million in post-tax profit during the period, up 7-fold compared to a similar period in 2023.

In Q4 of 2023, the company eyed 33 per cent hike on-year in its revenue to reach $1.45 billion and counted $123.7 million in post-tax profit, up 249 per cent on-year.

Despite this rosy Q4 performance, for the whole year 2023, HPG still incurred a 16 per cent drop in full-year revenue falling to $5.01 billion, and 19 per cent dip in full-year post-tax profit shedding to $283.3 million, equal 85 per cent of full-year profit target.

Another top steelmaker Hoa Sen Group also wrapped up Q1 of this year counting $378 million in revenue, showing around 15 per cent jump on-year, and $4.3 million in post-tax profit compared to $28.3 losses one year ago.

Similarly, Nam Kim Steel eyed $220.4 million in Q1’s revenue, up 21 per cent on-year, and counted $6.25 million in post-tax profit compared to catching $2.05 million losses in the same period in 2023, with accrued profit margin rising from 3.1 per cent to 10.7 per cent.

Early this year, amid a challenging business environment, businesses had set up ambitious business plans.

For instance, Hoa Sen Group has set forth business targets with two scenarios. In the first scenario, it aims to reach 1,625 million in total consumption in 2024, up 13.3 per cent on-year, posting an estimated $1.42 billion in total revenue, up 7.4 per cent on-year, and reaping $16.7 million in full-year post-tax profit, equal 12.3-fold compared to execution level in the 2022-2023 season.

In the second scenario, it aims to reach 1.73 million tonnes in total consumption, up 20.7 per cent on-year, counting an estimated $1.5 billion in total revenue, up 13.7 per cent on-year, and $20.8 million in post-tax profit, equal 15.6-fold compared to 2022-2023 season.

Meanwhile, Hoa Phat Group has set its 2024 revenue target at $5.83 billion in total revenue and $417 million in post-tax profit.

Nguyen Viet Thanh, CEO of Hoa Phat Group, expects the steel sector to start energise in 2024 after falling to its bottom in 2023 and rebounding from 2025.

The company is set to raise its steel production output by more than 10 per cent this year in the hope that consumption could post a similar growth.

As for construction ceramics, top building material maker Viglacera aims to reach total consolidated revenue at $561 million, down 14.5 per cent compared to 2023 projection. In which, the parent company’s total revenue in 2024 is set at $208 million and pre-tax profit at $45.8 million, down 11.3 per cent and 16 per cent, respectively.

The Bien Hoa Buildings Materials Production and Construction JSC reflected a retreat in its 2024 business plan.

Along with this, the company aims to post $36.6 million in net revenue, down $3.3 million on-year, and $5.4 million in pre-tax profit, similar to 2023 level.

Nguyen Tuan Viet, director of VietGo Co., Ltd. which is specialised in import-export consultation and support said that despite challenging times, the opportunities to bolster export are remarkable as the world always has certain demands for building material items.

“Firms’ capacity to timely grasp opportunities is of paramount importance,” Viet said.

Securities firms enjoy rosy performance in Q1

Securities firms have unveiled their first quarter business results, with many posting a spike in profits during the period.

VNDirect Securities Corporation (ticker VND) raked in $57.7 million in total operating revenue in Q1 of this year, up 7.3 per cent on-year, while its post-tax profit reached $25.7 million, equal to a 4.4-fold increase.

Saigon-Hanoi Securities JSC (SHS) saw its post-tax profit soar by 8.7-fold on-year to $14.8 million, but revenue slid 17 per cent on-year to $23.5 million.

VIX Securities saw a 32.6 per cent jump in its revenue to touch $15 million, and its post-tax profit climbed to $6.75 million, equal to a 15.6-fold increase on-year.

The stock market rally in Q1, and the company’s efforts for self-trading during the period, brought sweet gains, reaching $4.2 million in pre-tax profit compared to the $916,600 losses it counted from self-trading in the same period last year.

Similarly, FPT Securities JSC (ticker FTS) witnessed a 68 per cent jump in its revenue to reach $12.45 million, and a 93 per cent spike in pre-tax profit to $7.96 million, setting a record since early 2022. With these Q1 results, the company has fulfilled over 45 per cent of its full-year profit target.

Bao Viet Securities JSC (BVS) also eyed remarkable growth in its core business areas in Q1, counting $9.83 million in revenue, equal to a 71 per cent jump on-year, and $2.28 million in post-tax profit, double compared to one year ago.

A robust stock market in Q1, with an average transaction volume approximating $969 million per session, helped securities firms replenish their income sources and count profit in diverse business segments.

Margin lending is currently the key income source for securities firms, as this segment often accounts for 25-40 per cent of their operating revenues, even contributing the biggest share of income at some companies.

As for profit, interest from lending and receivables contributed more than half of pre-tax profits of securities firms in Q1.

According to statistics from major financial data provider FiinGroup, by the end of March, the total margin lending balance of 48 leading securities firms, which represent 93 per cent of total equity capital of the whole sector, saw the fifth consecutive hike since late 2022, coming to nearly $8 billion, hitting a historical mark.

FiinGroup said that despite this record margin lending balance, the current margin over total equity capital ratio of the 48 firms was around 0.55-fold, compared to the regulated ceiling level of 2-fold, still showing huge room to boost margin lending.

Experts at Vietnam Investors Service and Credit Rating Agency JSC (VIS Rating) said that the business prospects for securities firms in 2024 are upbeat if they can leverage bolstered transaction volume and improved market sentiment in a low-interest environment which stimulates margin lending.

Supportive factors to securities tickers have become increasingly apparent. These include the positive Q1 business results, as well as the commitment and progress made to upgrade the domestic stock market status from ‘frontier’ to ‘emerging’, which will facilitate securities firms’ business growth.

The new state-of-the-art stock trading system KRX, provided by the Korean Exchange (KRX), is set to soon go live soon, and will act as a catalyst to boost market liquidity and help securities tickers charm even more money flow.

Inventories recover, causing coffee prices to drop sharply

After reaching all-time high of over 130,000 VND (5.1 USD) per kg, domestic coffee prices have dropped sharply in recent days.

On May 6, coffee prices stood at about 100,000 VND per kg, thus, they declined about 30,000 VND per kg in less than one week.

The current price is around 100,000 VND per kg in Central Highlands provinces, the coffee cultivation hub of Vietnam.

On the world market, coffee prices on both London and New York exchanges decreased sharply. A recovery in coffee inventories on the Intercontinental Exchange (ICE) has eased supply concerns and caused coffee prices to fall.

In the trading session on May 3, Arabica coffee for July delivery declined by 5.35 US cents per pound to 200.75 USD per pound, while Robusta coffee fell by 139 USD per ton to 3,541 USD per tonne – the lowest over the past month.

According to experts, domestic coffee prices have continued their sharp decline in recent days and reached their lowest level in the past month due to increased global coffee supply.

A coffee export business in the Central Highlands province of Dak Lak said that a hike in coffee prices recently is due to limited supply. When information on supply is more abundant, coffee prices will cool down.

In addition, rain in Vietnam's key coffee growing areas last week helped ease concerns about the next crop's output.

Businesses expect that the upcoming harvest season in Indonesia and Brazil will generate new supply, reducing pressure on coffee prices.

According to the Ministry of Agriculture and Rural Development, Vietnam exported 756,000 tonnes of coffee, earning nearly 2.57 billion USD in the first four months of the year, up 5.4% in volume and 57.9% in value from the same period last year./.

Vietnamese culture, handicraft products attract visitors at Paris Fair 2024

Vietnamese businesses are taking part in the Foire de Paris (Paris Fair) in the capital of France, a showcase of culture and food from around the world that runs from May 1-12.

They brought to the fair a range of items including traditional handicrafts, silk products, processed fruits and Vietnamese banh mi (baguette), which have made Vietnam's pavilions outstanding and attractive to visitors.

A special lion dance performance along with traditional performances by Vietnamese artists also attracted the attention of audience here.

Nguyen Thi Nhu Y, owner of An Tam handicraft business in Hanoi, said that her handicraft products made of buffalo horn and clam shells are always favoured by customers. She went on to say that bamboo and rattan products are both beautiful and environmentally friendly, so they are also well responded by international customers.

Tang Thanh Son, deputy director of the Vietnamese Culture Centre in France said the centre has coordinated with domestic enterprises to popularise the diverse culture of the Southeast Asian country.

Steven Abajoli, Director of the Paris Fair, said the fair offers an opportunity for participating countries to introduce their traditional crafts, helping their handicraft items shine to the French public.

Speaking highly of the presence of the Vietnamese pavilions at the fair, Vietnamese Ambassador to France Dinh Toan Thang expressed his hope that activities to promote the country’s image at major fairs in France, including the Paris Fair, will help the French people understand more about Vietnamese culture, cuisine, and tourism, contributing to promoting stronger cooperation and friendship between the two countries.

The Paris Fair is the biggest in France for family space, cuisine, creativity, and traditional crafts. Organisers expect this year's event, with 1,250 booths, to attract about 400,000 visitors./.

Pandora to break ground for US$150 million factory in Vietnam

Pandora, the Danish jewelry and manufacturer and retailer, is scheduled to start construction of its first factory worth US$150 million in Vietnam on May 16, according to the Danish Embassy in Hanoi.

Pandora Production Vietnam, Pandora’s third production facility and its first built outside Thailand, will be built at Vietnam – Singapore Industrial Park (VSIP) III in southern Binh Duong province.

Once completed, the project is expected to create more than 7,000 jobs and produce approximately 60 million jewelry products each year.

Jeerasage Puranasamriddhi, Chief Supply Officer and Managing Director at Pandora, said VSIP III possesses good infrastructure that supports the Binh Duong factory’s operation in the future. In addition, Vietnam boasts a rich history of craftsmanship that can provide Pandora with skilled silversmiths and artisans for the facility.

The group has carefully reviewed 27 countries and finally chosen Vietnam because of a number of factors that help to minimize supply risks when factories are concentrated in Thailand.

With the construction of a new factory in Vietnam, jewelry products from Vietnam will account for one third of Pandora’s global productivity.

The Binh Duong factory will be built according to the Leadership in Energy and Environmental Design (LEED) standard, using 100% renewable energy.

Currently, Pandora has two production lines in Thailand that both use 100% renewable energy.

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