Budget collection from import-export activities topped 362.4 trillion VND (14.57 billion USD) in the first 10 months of this year, equivalent to 86.3% of the set target and up 14.6% year-on-year, according to the General Department of Customs.

The total import-export value in the period under review reached an estimated 616.2 billion USD, up 14.1% from the same period last year, the department reported.

Of the figure, the export and import turnovers totaled 312.8 billion USD and over 303.4 billion USD, representing year-on-year rises of 15.9% and 12.2%, respectively, leading to a trade surplus of 9.4 billion USD for Vietnam in the period.

The department said more measures will be taken in the remaining months of the year to remove difficulties and obstacles facing businesses.

Attention will be paid to improving the business environment in order to make it easier for enterprises to develop stably, thus promoting economic development and increasing budget collection, it added.

Other activities such as post-customs clearance inspection, specialised inspection, fight against smuggling and commercial fraud, and inspection and control of imports and exports will be also strengthened.

Half of animal feed material to be sourced from local suppliers

Animal feed prices show no signs of declining, putting livestock farmers on tenterhooks.

The Ministry of Agriculture and Rural Development plans to send the Government a draft decree on production support policy aimed at ensuring at least 50% of animal feed material will be locally sourced.

The draft decree stipulates support for manufacturing, processing, preserving and consuming local material while developing corn and soybean growing areas, reducing the reliance on animal feed imports.

Cooperative groups and cooperatives would get aid representing a maximum of 50% of the total cost for infrastructure in material cultivation areas or 50% of the cost for new breeding stock purchases.

Those enterprises researching and developing animal feed would also receive 50% cost support with a maximum of two billion Vietnam dong for each project.

The draft decree will be submitted to the Government for its consideration and approval within this year.

This year the local animal feed price has soared 17 times. In September alone, imports of animal feed and materials in Vietnam reached nearly US$4.07 billion, an increase of 8.6% over the year-ago period.

Manufacturing costs increased, but the selling price remained unchanged, or even dropped, causing losses for many livestock farmers.

Animal feed makes up 65-70% of farming costs. However, input material for the manufacturing system is not plentiful. Up to 65% of material for animal feed was imported last year.

SBV Governor stresses prudent governance in terms of real estate credit

Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong has underscored that credit governance must be prudent to help curb inflation and stabilise the macro-economy when responding to legislators’ concern about credit for real estate.

Speaking at the National Assembly’s question-and-answer session on November 3 she said the safe and healthy development of the property market is important to socio-economic development. This market should mobilise capital through different channels such as direct investment, the stock market, corporate bonds, the state budget, and funding from people and enterprises.

Credit is just one of the funding channels for the property market, she noted.

Credit governance by the SBV is aimed at helping control inflation, stabilise the macro-economy, guarantee safety for credit institutions’ operations, and ensure the stability of the monetary and foreign exchange markets, Hong went on.

The Governor elaborated that when priority is given to inflation control and safety for the banking system, the expansion of credit for the real estate market may cause difficulties for the SBV’s efforts to achieve the monetary policy’s target. Therefore, credit governance should be prudent.

Besides, real estate credit also poses latent risks since loans for this field are often long-term ones with big value while the majority of money mobilised by banks is short-term capital, she said.

Regarding credit for social housing, the Government issued a decree that assigned the Vietnam Bank for Social Policies (VBSP) to act as the coordinator of the lending programme. Some designated credit institutions have also taken part in this programme. So far, the VBSP has lent out over 10.58 trillion VND (425.5 million USD) for social housing, with nearly 9.15 trillion VND in outstanding loans as of September 30.

In the time ahead, the monetary policy will still prioritise macro-economic stability and safety for the banking system. Therefore, credit tools and solutions for real estate will be considered in relation with other tools so as to achieve the monetary policy’s target, the official added.

OCB allowed to increase charter capital

Orient Commercial Joint Stock Bank (OCB) has received the nod from the State Bank of Vietnam to increase its charter capital by VND4,110 billion via a bonus share issue.

After the bonus share issue for its current shareholders, the bank’s charter capital will rise to VND17.8 trillion, the local media reported.

The bank shelved its charter capital increase through share issues under an employee stock ownership plan and via private placement.

OCB earlier increased its charter capital by 3.9-fold against 2015, from VND3.55 trillion to VND13.69 trillion. Its capital increase is done annually, with this year seeing the sharpest hike.

Aquatic exports post 34-percent-growth in 10 months

Vietnam raked in 9.5 billion USD from exporting aquatic products in the first 10 months of 2022, up 34% year-on-year, the Vietnam Association of Seafood Exporters and Producers (VASEP) reported.  

Of the figure, shrimp exports earned nearly 3.8 billion USD, an increase of 19% from the same period last year, and are expected to top 4.4 billion USD in 2022, 14% higher than that of 2021.  

Tra fish exports recorded an impressive growth in the reviewed period, with the 10-month turnover hitting nearly 2.2 billion USD, surging by 80% year-on-year. This item’s yearly export turnover is forecast to reach over 2.5 billion USD, up 58% compared to 2021.

According to businesses, in 2022, the global inflation and the Russia-Ukraine conflict have sharply increased the export of affordable white fish products such as tra fish. The import value of tra fish products from Vietnam have increased by 40-200% this year.

Meanwhile, tuna export during Jan – October was estimated at 890 million USD, up 50% over the same period. It is forecast that by the end of 2022, tuna will join the group of the over-1-billion-USD exports for the first time.

Squid and octopus products also witnessed stable export growths in the last 10 months, reaching 625 million USD, up 32% year-on-year.  The figure is expected to rise by 22% to 734 million USD in 2022.

The country’s aquatic export turnover is predicted to top 10 billion USD by the end of November – the record of Vietnam's seafood industry after over 20 years. 

According to Vice Director of VASEP’s Trade Promotion and Training Centre Le Hang, the aquatic export turnover will account for 3% of the country’s total in 2022.

Viet Nam’s strong economic recovery in 2022 lays foundation for growth in 2023

The Vietnamese economy is recovering swiftly in the final months of 2022, with GDP growth for the entire year forecast to reach 8 percent, laying a solid foundation for a growth rate of 6.5 percent in 2023.

According to Deputy Minister of Planning and Investment Tran Quoc Phuong, the target of 6.5 percent GDP growth for next year is based on the assessment that the Vietnamese economy is maintaining its recovery momentum and has a low risk of external shocks.

The growth drivers come from various factors such as domestic consumption, public investment, exports, and especially the continued strong recovery of the services sector.

On the basis of maintaining macroeconomic stability as the top priority, the Government proposed an inflation target of 4.5 percent for 2023.

However, there are some grey areas in the bright economic picture of 2022, as seen in the rate of productivity growth and disbursement. Specifically, labor productivity was the only target Viet Nam failed to meet in 2022, while public investment bottlenecked to socio-economic development.

According to economic experts, Viet Nam's productivity has improved but remains low compared to many countries in the region and risks falling behind.

To shorten the gap with developed countries in the region and the world, enterprises must innovate incessantly, employ advanced technology, and have an appropriate policy for the effective use of labor and capital.

Concerning public investment, the Ministry of Finance's updated data shows that disbursement in the first nine months of the year is estimated to have reached VND253.148 trillion (nearly US$10.2 billion).

This figure is equivalent to 46.7 percent of the target assigned by the Government and slightly lower than the 47.38 percent recorded during the same period last year.

The Ministry of Planning and Investment has compiled a list of 25 obstacles related to public investment and proposed eight groups of solutions to be implemented to accelerate public investment disbursement.

These include making thorough preparations for projects, enhancing the capacity of contractors and fine-tuning the laws on public investment activities.

PM orders swift action amid short supply of fuel

The prime minister has issued a telegram ordering the relevant ministries and agencies to take swift action to cope with the ongoing fuel supply disruptions.

The prime minister asked the Ministry of Industry and Trade to promptly review fuel trading regulations and propose supplementing and amending them, mainly those on the interval between fuel price adjustments and the fuel price stabilization fund.

The ministry was also tasked with working with the Ministry of Finance and other agencies to keep a close watch on the development of the local fuel market and improve their fuel supply management.

The Ministry of Industry and Trade has to direct fuel wholesalers and distributors to maintain sufficient fuel supply.

The local media reported that the Government leader also assigned the ministry to regularly conduct inspections into gas stations and impose harsh sanctions on those hoarding and smuggling fuel.

In addition, the prime minister urged the Ministries of Industry-Trade and Finance and the central bank to collaborate with fuel associations and wholesalers to determine what is obstructing fuel supplies.

The Ministry of Information and Communications was asked to work with the Ministries of Industry-Trade and Finance to promptly provide residents with timely, objective and accurate information about gasoline supply.

Vientiane hosts Vietnam-Laos Trade Fair

The Vietnam-Laos Trade Fair 2022 opened in Vientiane on November 3 as part of activities to celebrate the two countries’ friendship and solidarity year.

The five-day event is being jointly held by the Vietnamese Ministries of National Defence and Industry and Trade, and their Lao counterparts.

Vietnamese Deputy Defence Minister Sen. Lieut. Gen. Vu Hai San said that the fair offers a chance for Vietnamese businesses in general and military firms in particular to seek partners and expand trade with counterparts in Laos and other ASEAN countries.

He expressed his belief that the event will create conditions to boost the two countries’ friendship and cooperation activities, consolidate the traditional partnership, and tighten the special solidarity between Vietnam and Laos.

The fair comprises around 150 stalls from various countries, including 120 from Vietnam.

The new features are a supply and demand connectivity programme introducing booths and products on the digital platform Videx.vn, and a market survey programme combined with a webinar with businesses from Thailand.

M&A Vietnam Forum 2022 slated for late November

The annual merge and acquisition forum (M&A Vietnam Forum) in 2022 will be held in Ho Chi Minh City on November 23, according to the organising board.

The event, to be organised by Vietnam Investment Review with the sponsorship of the Ministry of Planning and Investment, will be themed "Igniting new opportunities".

In Vietnam, in the first 10 months of this year, 5.7 billion USD was poured into M&A deals, down 35.3% year on year. Singapore was the leading country in cross-border transactions with about 1.2 billion USD, followed by the US (US$570 million) and the Republic of Korea (370 million USD), he added.

However, PE Fund and Venture Capital still saw strong growth in the first months of this year despite uncertainties in the capital market and bad debt. In particular, Vietnam's innovation startup ecosystem in 2022 is forecast to draw about 2 billion USD.

The above signs show that the M&A market in Vietnam is likely to remain bustle, especially in the context tightened domestic capital and many businesses are forced to restructure, sell assets and call for investment due to financial pressure.

The M&A Vietnam Forum, expecting the participation of more than 500 delegates, will focus on M&A opportunities amid the fluctuating market, and the building of new values.

On the sidelines of the event, a number of activities will be held to provide chances for business to meet and seek partnership.

FPT Software partners with leading Danish jewelry producer

Vietnam's leading IT services provider FPT Software, a member company of FPT Corporation, announced a new alliance with Julie Sandlau, one of the world's leading jewelry producers, to build its first smart jewelry factory in Vietnam.

The partnership is expected to enhance FPT Software's presence in the Nordic region and incorporate digital technologies into Julie Sandlau's production line, revolutionising it with Smart factories, Artificial Intelligence, Robotics, and so on.

The signing ceremony took place on November 1 in Hanoi within the framework of the Vietnam-Denmark Business Summit Forum 2022, organised by the Embassy of Denmark in Vietnam, the Vietnamese Government Office and the Vietnamese Ministry of Foreign Affairs in Denmark.

Through this alliance, FPT Software becomes Julie Sandlau’s strategic partner, provides the company with an exclusive roadmap to build their first Smart factory and transforms the traditional jewelry manufacturing process with digital technologies like Robotic Process Automation, Artificial Intelligence, and more. The new manufacturing plant is set to be completed by the end of 2023 in Hoa Lac Hi-tech Park, Vietnam's first and largest hi-tech industrial zone.

Vietnamese, Danish firms shake hands to develop offshore wind power

Vietnam’s Doosan Vina and Denmark’s Ørsted have signed a memorandum of understanding (MoU) to develop the offshore wind power supply chain in Vietnam.

The signing was witnessed by Deputy Minister of Industry and Trade Dang Hoang An and Danish Crown Prince Frederick and Crown Princess Mary Elizabeth who are on a three-day visit to Vietnam on November 1-3.

Under the MoU, Doosan Vina and Ørsted agree to engage in non-legally binding discussions to develop the offshore wind foundation supply chain in Vietnam with a primary focus on, but not limited to, the offshore foundation structure monopiles, with the aim of satisfying requirements relating to the development of Ørsted’s portfolio of offshore wind farm projects in Vietnam, with a specific focus on the Tuy Phong and Hai Phong projects, and abroad, and also the terms and conditions relating to material sourcing, manufacturing, and supply by Doosan Vina.

Ørsted will provide guidance and support, and help Doosan Vina access markets in other countries throughout the Asia-Pacific and Europe, while the Vietnamese firm will give “preferred customer” status to Ørsted.

According to Kim Hyo Tae, General Director of Doosan Vina, the signing of an MoU with a leading corporation in the wind power sector is an important event for the company.

IPP Air Cargo withdraws permit application
     
IPP Air Cargo, in an unanticipated move, has withdrawn its application for a cargo flight permit, citing “worsening economic conditions”, “looming global recession” and “volatile fuel prices”, all of which likely will result in numerous challenges for global freighters.

“We will consider our position and reapply once the global market recovers and shows signs of stability,” said IPP CEO Lê Hồng Thủy Tiên in a company statement.

Earlier in January, IPP Air Cargo filed for a cargo flight permit with a project to invest VNĐ2,400 billion ($96.5 million) with 30 per cent of the initial investment from the company. The company said it had plans to operate five cargo planes during the project’s first year, seven in the second and 10 in its third.

The company’s business plan said the company could haul up to 115,000 tonnes of goods during the first year with an estimated revenue of $71 million. The company expected a profit return starting from its fourth year.

According to the Civil Aviation Authority of Vietnam (CAAV), in a preparatory move, the company signed a Memorandum of Understanding with Boeing to purchase 10 B777F airplanes. In addition, the air freighter signed a Letter of Intention with BBAM, an airplane lease and management company based in San Francisco, US, to rent four B737- 800BCF airplanes. To date, one of which was refitted for cargo and repainted with IPP Air Cargo's logo.

All IPP Air Cargo’s registered airplanes were considered fit for service and the company met all requirements under current regulations, said CAAV.

There are five airlines registered to haul cargo with passenger airplanes in Việt Nam. The Southeast Asian country has not yet granted a cargo flight-only permit.

The mentioned-above airlines accounted for 18 per cent of international air cargo in Việt Nam in 2019, dropping to 11 per cent in the 2020-21 period. The rest of the market share was divided among 29 foreign airlines operating in the country.

In an interview published on the company’s website, IPP Air Cargo’s Chairman Jonathan Hanh Nguyen said air freight prices, during the peak of the pandemic, went up significantly, as much as five times on several occasions.

Nguyen said with 88 per cent of the market share in the hands of foreign air freighters, “the demand for air freight will remain congested, and price volatility will make it tough for domestic export-import businesses.”

Industrial production increases in ten months
     
Viet Nam's index of industrial production (IIP) in the first 10 months of 2022 surged 9 per cent on year, according to the General Statistics Office (GSO).

The office said industrial production continued in October 2022 to recover with an increase of 3 per cent on month and 6.3 per cent on year because enterprises were more proactive in labour and production plans, and also solved difficulties to recover and expand production.

Compared to the same period last year, the IIP growth rate in October reached 5.7 per cent for the processing and manufacturing industry; 6.3 per cent for the mining industry; 10.5 per cent for electricity production and distribution; and 15.7 per cent for water supply, and management and treatment of garbage and wastewater.

During the ten months, processing and manufacturing posted the highest IIP growth of 9.6 per cent. It was followed by electricity production and distribution (7.8 per cent), water supply industry, garbage and wastewater treatment and management (6.6 per cent) and the mining industry (5 per cent).

The GSO report also showed that, in the past ten months, IIP of some key industrial products increased sharply compared to the same period last year, including beer (34.7 per cent); processed seafood (19.1 per cent); phone components (16.5 per cent); automobiles (16.4 per cent); steel bar (15.2 per cent); chemical paint (11.1 per cent); and casual wear (10.7 per cent).

Meanwhile, some other products saw a decline of IIP compared to the same period last year, such as iron and crude steel (15.3 per cent); fertiliser NPK (5.9 per cent); mobile phones (5.1 per cent); aquatic feed (3.8 per cent); fabrics made from man-made fibers (2.3 per cent); liquefied petroleum gas (LPG) (1.5 per cent); televisions (1.4 per cent); and crude oil exploitation (1.2 per cent).

GSO also reported 61 out of 63 provinces and cities achieved growth, while the other two localities saw an IIP reduction in the first ten months of 2022.

Enterprises try to draw back cash flows
     
With a decline in confidence, many investors find ways to flee corporate bonds, triggering a severe liquidity shortage at companies that issue bonds. As a result, it is crucial to win back investors' confidence and draw cash back to the market.

There was no corporate bond issuance in the first three weeks of October, data from the Vietnam Bond Market Association (VBMA) showed, meaning that a month after Decree 65 on private placement of corporate bonds took effect, the corporate bond market remained mute.

This year, the value of corporate bonds has dipped by nearly 50 per cent over last year.

On the other hand, under pressure from investors (bondholders), many issuers have to boost bond buybacks before the maturity date. For the year, the total value of redeemed bonds by businesses is nearly VND142.5 trillion (US$5.7 billion), a gain of 46 per cent year-on-year.

Businesses face the risk of cash flow disruption after investors panicked to withdraw from the bond market while issuers have been unable to release new bonds.

According to FiinGroup data, the amount of mature real estate corporate bonds will be more than VND35 trillion in 2022 and over VND61 trillion in 2023, which are mainly from unlisted enterprises.

Many investors became cautious with corporate bonds after the scandals of Tan Hoang Minh, An Dong and VKC Holdings. Many people rushed to ask for businesses to repurchase bonds before their maturity date.

The bond market will continue to face challenges due to the decline in investor confidence, while the real estate market is also in a tough situation and businesses witness negative cash flows as banks' credit room reaches its limit, Le Xuan Nghia, a member of the National Financial and Monetary Policy Advisory Council, told baodautu.vn.

Meanwhile, Bui Van Huy, director of DSC Securities Corporation's HCM City branch office, said that the lack of reliable information is the reason for the lower confidence in the corporate bond market and the hesitance of investors. Therefore, when it comes to corporate bonds, investors are reluctant to participate, regardless of whether the deal is good or bad.

Real estate companies' bond issuance activities have almost frozen since April, after the case of Tan Hoang Minh shocked the whole market. The late repayment of principal and interest by some businesses caused investors to worry.

Viet Dragon Securities Company (VDSC) said that Decree 65 and the recent scandals involving two major property developers have capped capital supplies for businesses, especially real estate companies, causing firms in this industry to be under great liquidity pressure in the last months of the year.

Moreover, the real estate industry entered a bear market while facing problems of a capital shortage due to tight credit, rising interest rates, and policies to prevent speculation.

A report by the State Bank of Vietnam (SBV) shows that as of June, the amount of bad debt in corporations reached about VND3 trillion. Some banks are dealing with bonds.

Some large real estate corporations are finding solutions to raise capital. Many real estate corporations are raising capital from individuals in the form of "loan contracts" with interest rates up to 12-13 per cent a year to have a source for mature bonds. Some other corporations are considering a "barter" solution, meaning that instead of buying back bonds from investors, businesses encourage bondholders to convert bonds into real estate products.

According to the lawyers, this form is completely valid and legal, as long as the conversion price matches the market price and is approved by the investor. However, experts recommend that when choosing the "barter" method for mature bonds, investors should carefully study the legal status of real estate projects; otherwise, there will be risks of switching to a riskier asset. 

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