Provinces, ministries and government agencies had allocated 664.9 trillion VND (26.7 billion USD) for public investment as of the end of September, showed data from the Ministry of Finance (MoF).

That total represented 98.1% of the plan previously approved by the Prime Minister, leaving 13 trillion VND unallocated. Of that amount, the government has proposed the National Assembly to relocate 8 trillion VND from ministries, agencies and localities that have so far failed to earmark or disburse the funds, to those with greater needs.

By the end of last month, the estimated disbursement of public investments totalled over 320.5 trillion VND, or 47.3% of the yearly target, significantly lower than the 51.4% disbursement rate recorded during the same period last year.

Of the disbursed funds, domestic sources accounted for over 315.7 trillion VND, 47.98% of the year's target, while foreign capital reached nearly 4.86 trillion VND, or 24.33% of the annual target.

According to the Ministry of Planning and Investment (MPI), 23 localities and 31 ministries and government agencies have failed to meet the national average disbursement rate.

Meanwhile, those praised for their efforts include the Ministry of Agriculture and Rural Development, the Ministry of Transport, the provinces of Yen Bai, Phu Tho, Thanh Hoa, Nghe An, Tien Giang and Long An, and Hai Phong city.

The MPI has long expressed concerns over the sluggish disbursement rate, claiming it has negatively impacted local socioeconomic targets, as well as national overall development.

For example, HCM City has been allocated 79.26 trillion VND, or 11.7% of the country's entire public investment budget for 2024, but so far has only disbursed 21.29% of the funds.

Similarly, the capital city Hanoi has been allocated over 81.03 trillion VND this year, 12% of the country's budget, but has only disbursed 38.88% of the funds. The northern province of Hung Yen, which received 19.92 trillion VND, around 3% of the national budget, has disbursed just 31.13% of the funds.

By contrast, other provinces and cities, while receiving significantly smaller funds, have been able to raise their disbursement rate.

The ministry cited various reasons for the delays, including complexities related to land compensation, resettlement and delays in project implementation. To make matters worse, fluctuations in the property market have led to difficulties in auctioning land and collecting land-use fees in localities across the country, resulting in a sharp fall in budget collection. Challenges also remained in disbursing ODA and concessional loans from foreign donors.

However, the MPI said this pattern has been consistent for years, with disbursements remaining low during the early months of the year, only to pick up speed toward the year end.

HCM City and the Vietnam National University, HCM City say the funds allocated to them exceed their capacity to absorb, and they have proposed returning a significant portion to the central government.

Natural disasters, floods, and severe landslides in the northern provinces in recent months have also significantly slowed construction progress, causing many projects to be temporarily halted.

Chairman of the People's Committee of the northern province of Tuyen Quang Nguyen Van Son said heavy rainfall in recent weeks has put a stop to most construction projects in the province, which posted a disbursement rate of just 40%.

He said, however, the province has not yet adjusted its target to disburse up to 95% of public investment funds by the end of the year.

The Chairman of HCM City's People's Committee, Phan Van Mai, said they have been working around the clock to raise the disbursement rate.
"HCM City has only disbursed over 20% of its yearly target, which is very low. However, we have categorised projects, identified solutions and are implementing measures to accelerate the process," he said.

Earlier last month, the Prime Minister instructed ministries, government agencies and local bodies to focus on accelerating disbursement, creating breakthroughs in public investment, and raising the disbursement rate of the three national target programmes to at least 95%./.

VN-Index breaks above 1,280 points

The stock market extended its upward trend for the second consecutive session, with the VN-Index surpassing the 1,280-point threshold as foreign investors significantly eased their net selling.

On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index rose by 9.87 points, or 0.78 per cent, to close at 1,281.85 points.

Throughout the trading day, the VN-Index remained above the reference level and closed higher, marking two consecutive days of gains.

Market breadth was positive, with 203 stocks advancing and 95 declining. Liquidity on the southern bourse improved slightly, reaching VNĐ17 trillion (nearly US$684.3 million), up 8.2 per cent compared to the previous session.

The VN30-Index, which tracks the 30 largest stocks by market capitalisation on HoSE, also increased by 12.92 points, or 0.96 per cent, to 1,351.97 points. Twenty-two stocks in the VN30 basket rose, while seven declined and one remained flat.

Data compiled by financial website vietstock.vn showed that Vinhomes JSC (VHM) was the biggest gainer on the market, with its shares rising by nearly 2.16 per cent, contributing more than 0.96 points to the VN-Index's gains.

It was followed by the Bank for Investment and Development of Vietnam (BID), whose shares increased by 1.12 per cent, Asia Commercial Joint Stock Bank (ACB), up 2.94 per cent, and Hòa Phát Group JSC (HPG), which rose by 2.04 per cent.

Some sectors posted losses, putting slight pressure on the overall market, with decliners including the Bank for Foreign Trade of Vietnam (VCB), Mobile World Investment Corporation (MWG), and Viet Nam Dairy Products Joint Stock Company (VNM).

According to experts from Viet Dragon Securities: "The rise in liquidity compared to the previous session indicates increased supportive cash flow at lower prices, although supply also increased at higher prices. With the current support effort, the market is likely to experience a technical recovery to test supply and demand. However, it is necessary to remain cautious about potential supply increases as the market recovers."

"Therefore, investors should observe supply-demand dynamics to assess the market's condition. It is advisable to maintain a reasonable portfolio balance and consider restructuring positions during the recovery to mitigate risk."

On the Hà Nội Stock Exchange, the HNX-Index also ended higher, rising by 0.11 per cent to 231.77 points. During the session, over 46 million shares were traded on the northern bourse, worth more than VNĐ905 billion.

Foreign investors significantly reduced their net selling, recording a net sale of over VNĐ46 billion on the HoSE. 

HCM City hosts Vietstock, aquaculture expos

Advanced products and technologies in the livestock industry are being showcased at the Vietstock Expo & Forum that opened in HCM City on Wednesday.

The international feed, livestock, aquaculture, and meat exhibition is being held concurrently with the Aquaculture Vietnam expo to connect the livestock and aquaculture industries value chains.

The two have attracted more than 400 exhibitors from over 50 countries and territories, featuring breakthrough products, services and technologies for the livestock and aquaculture industries from leading businesses in Việt Nam and worldwide.

Speaking at the opening ceremony, Deputy Minister of Agriculture and Rural Development Phùng Đức Tiến said over the past decade the livestock industry has maintained an annual growth rate of 5-7 per cent.

In the first nine months of this year, the total number of pigs increased by 2.5 per cent and the total number of poultry increased by 2.2 per cent compared to the same period last year.

The export of livestock products reached US$376 million, up 3.8 per cent and the import of livestock feed and raw materials decreased by 3.7 per cent compared to the same period last year.

Despite achieving these results, Việt Nam’s livestock industry is facing many challenges such as diseases, climate change, market fluctuations, antibiotic resistance, environment, food safety, and the dependence on raw materials for feed production, he said.

Vietstock not only provides an opportunity to introduce and showcase advanced products and technologies in the livestock industry but also facilitates businesses, researchers and industry experts to exchange and share experiences through conferences and technical seminars, he added.

Ben Wong, country general manager of Informa Markets Vietnam, the organiser, said Vietstock and Aquaculture Vietnam have become a cornerstone for the livestock and aquaculture industries in Việt Nam, representing a critical opportunity to exchange knowledge and collaborate toward a brighter future.

A series of conferences and technical seminars such as the Biosecurity Asia Forum, the international aquaculture Vietnam conference, the emission control in livestock conference, and animal health and poultry farming seminars will delve into pressing issues facing the livestock and aquaculture industries, offering a platform for experts to share best practices, explore innovative solutions, and discuss the future of the sectors, he said.

The expos, being held at the Saigon Exhibition and Convention Centre, will run until Friday. 

High traffic growth on VEC's expressways

The Việt Nam Expressway Corporation (VEC) reported a significant rise in traffic across the expressways it manages, with 50.5 million vehicles using the routes—an increase of 11.3 per cent compared to the same period in 2023.

In the fourth quarter of 2024, VEC will begin a series of repair projects to address road surface damages on the Nội Bài-Lào Cai, Cầu Giẽ-Ninh Bình, and Đà Nẵng-Quảng Ngãi expressways, aimed at enhancing road quality and ensuring driver safety.

According to VEC’s report, traffic on its expressways continued to grow in the first nine months of the year. The expressways under VEC’s management—Nội Bài-Lào Cai, Cầu Giẽ-Ninh Bình, Đà Nẵng-Quảng Ngãi, and HCM City-Long Thành-Dầu Giây—safely served 50.5 million vehicles.

The HCM City-Long Thành-Dầu Giây Expressway had the highest traffic volume, with 17.6 million vehicles, reflecting a 14.1 per cent increase compared to the same period in 2023. The Cầu Giẽ-Ninh Bình Expressway followed with 16.9 million vehicles but had the lowest growth rate at 7.4 per cent.

Ranking third in both traffic volume and growth rate was the Nội Bài-Lào Cai Expressway, which recorded 13.9 million vehicles, marking a 12.2 per cent rise. Despite the highest growth rate of 14.6 per cent, the Đà Nẵng-Quảng Ngãi Expressway saw the lowest traffic volume, with just 2.1 million vehicles.

“In the first nine months of this year, traffic safety on VEC’s expressways was well-coordinated between operating units and law enforcement. Management, operation, and maintenance were effectively handled, ensuring smooth and safe traffic flow,” a VEC representative stated.

Over the past nine months, no major traffic accidents or prolonged congestion occurred on VEC’s expressways. While the number of collisions and injuries dropped significantly—down by 59 collisions and 12 injuries—the number of accidents and fatalities slightly increased, with 31 additional accidents and one more death. Importantly, there was no damage to the road infrastructure.

Congestion remains a challenge on the Nội Bài-Lào Cai, Cầu Giẽ-Ninh Bình, and HCM City-Long Thành-Dầu Giây expressways during holidays and Tết due to increased traffic, accidents, and vehicle breakdowns, with the Đà Nẵng-Quảng Ngãi Expressway being the only exception.

Despite warnings, the issue of vehicles running out of funds in their electronic toll collection accounts has persisted, with more than 480,000 incidents in the past nine months. This has contributed to slower traffic and raised safety concerns at toll stations.

Since 6pm on September 13, 2024, VEC has been offering free road service for vehicles transporting relief supplies to northern provinces affected by Typhoon Yagi and subsequent floods. This service will continue until midnight on October 13, 2024, on all VEC-managed expressways, including Nội Bài-Lào Cai, Cầu Giẽ-Ninh Bình, Đà Nẵng-Quảng Ngãi, and HCM City-Long Thành-Dầu Giây.

Vietjet, CFM International sign agreement for over 400 LEAP-1B engines

Vietjet and CFM International, a joint venture between GE Aerospace and Safran Aircraft Engines, have reaffirmed the commitment for the supply of more than 400 LEAP-1B engines and technical engine services to power the airline’s narrow-body fleet, with estimated total value of 8 billion USD.

The engines are from two orders previously announced in 2016 and 2018. The aircraft are scheduled to begin delivery in 2025, Vietjet said in a statement.

As a longstanding customer of CFM, Vietjet Air is currently operating 56 Airbus A321ceo and 17 A320ceo aircraft equipped with CFM56-5B engines.

“For more than a decade, we have worked closely with Vietjet to introduce support programmes in terms of technical management, training, and fuel efficiency improvements for its CFM56 fleet and look forward to now extending these practices to the new LEAP-1B engines,” said Gael Meheust, President and CEO of CFM International.

Nguyen Thi Phuong Thao, Chairwoman of Vietjet, said that world-leading engine manufacturers like Safran and CFM have worked alongside Vietjet to provide affordable air travel for millions of people, driving growth in the dynamic Asia-Pacific aviation market, including Vietnam. The agreement for fuel-efficient engines reinforces their commitment to sustainability, she added.

The agreement will bring the relationship with CFM to another level as the industry-leading expertise of Safran and CFM will deliver breakthrough technological products to Vietjet, according to the airline.

The carrier added that the future introduction of the LEAP engine meets the airline’s sustainable growth strategy and will enable it to optimise the operating costs on fuel efficient aircraft, while offering its customers the best flying experience.

The CFM LEAP engine family delivers 15 to 20% lower fuel consumption and CO2 emissions, as well as a significant improvement in noise, compared to previous generation engines.

With more than 3,500 LEAP-powered aircraft in service, the engine has allowed CFM customers to save more than 35 million tonnes of CO2 emissions. The engine has been the most successful new product introduction in CFM’s 50-year history, with the fastest ever ramp-up of engine flight hours in the industry – surpassing 60 million hours in just eight years./.

Vietnam Airlines promotes tourism in Germany

Vietnam Airlines, in collaboration with the Tourism Departments of Hanoi and Ho Chi Minh City, Sai Gon Tourist Group, and Munich Airport recently held a promotion programme in Munich to popularise Vietnam’s tourism and culture and to enhance tourism cooperation with European countries.

The programme was part of a series of activities to launch the national flag carrier’s first nonstop flight to Germany’s third largest city and mark the 20th anniversary of the Vietnam – Germany air route.

Vietnam Airlines Executive Vice President Le Duc Canh said Vietnam, boasting unique cultural heritage, stunning beaches, and diverse cultural and culinary experiences, has been an ideal destination for international visitors, including those from Europe, adding the company is proud to be a bridge that brings European travelers to the nation.

In the framework of the programme, Vietnam Airlines representatives signed Memoranda of Understanding on aviation and tourism with Saigontourist Group, Saigontourist Travel, Studiosus Reisen Munchen GmbH, and Kuoni Global Travel Services Limited. The deals will not only contribute to promoting trade and tourism between Vietnam and Germany but also offer opportunities for competent sides to share experience, improve service quality, and develop sustainable tourism offerings.

Two decades ago, Vietnam Airlines started operating an air route between Vietnam and Germany. To date, it has served over 3.1 million passengers.

The carrier officially launched its first direct flight between Vietnam and Munich, the capital of Bavaria state, on October 5.

To the end of 2024 and in 2025, it will operate four direct routes from Hanoi and Ho Chi Minh City to Germany’s Frankfurt and Munich. Modern wide-body aircraft are used on the long-haul flights./.

Business and Legal Forum 2024 focuses on favourable conditions

Partnering up to address legal issues and create a favourable investment and business environment for companies is the theme of the Business and Legal Forum 2024, which opened on October 8.

The event was held online, chaired by Deputy Prime Minister and Chairman of the Central Law Education and Dissemination Coordination Council Le Thanh Long.

It connected all 63 provinces and cities, with the participation of about 450 delegates from departments, ministries, and business associations.

In his opening remarks, Minister of Justice Nguyen Hai Ninh, Vice Chairman of the Central Council, highlighted the critical role institutional reform plays in unlocking the nation's potential.

He said that innovating the legal framework, fostering creativity and supporting economic growth are essential to achieving Vietnam's socio-economic and security objectives.

“To meet these challenges, we must continuously review, identify and resolve legal issues while partnering with businesses to create a favourable environment for investment and production,” Ninh said.

During the forum, 117 opinions on legal issues faced by businesses were raised, which were addressed by ministries and departments through careful review and action.

With the goal of placing citizens and businesses at the heart of development, the government has introduced numerous initiatives to tackle legal obstacles.

Key legislation on land, housing, real estate and credit institutions has been submitted to the National Assembly, with the aim of establishing a robust legal framework to promote business development.

In the first nine months of this year, the government held nine law-making sessions, issued 122 decrees and 215 resolutions, and the Prime Minister signed 1,129 decisions and 35 directives.

Three meetings were also convened to review legal challenges.

These efforts have significantly contributed to Vietnam's economic and social development, he said.

Vietnam's GDP grew by 7.4% in the third quarter, with overall growth reaching 6.82% for the first nine months of 2024. Inflation was controlled and economic stability was maintained.

Business activity also saw a positive trend, with 183,000 new enterprises established or resuming operations, surpassing the 163,000 that exited the market.

At the upcoming 8th session of the National Assembly, the government is expected to present key legislation on tax, securities, and investment, as part of efforts to streamline business regulations.

Prime Minister Pham Minh Chinh has been clear in his directive: "Removing obstacles for businesses is key to unlocking difficulties in the economy. When businesses thrive, the country thrives," he said.

The Business and Legal Forum 2024 will focus on two key issues for the business community: legal challenges related to land-use investment projects and tax matters.

It aims to accurately identify these challenges and propose practical solutions, especially regarding legal enforcement and application.

"This forum reaffirms the government’s commitment to standing by businesses and protecting their rights under all circumstances. The government will continue to listen, share challenges, and work collaboratively to overcome difficulties,” the minister said.

This event also advances the government’s strategy of legal reform, encouraging innovation and harnessing national development potential.

It reflects the government’s dedication to building a transparent, action-oriented administration that serves the people and businesses.

The forum marked a significant occasion, coinciding with Vietnam Entrepreneurs' Day (October 13) and Vietnam Law Day (November 9)./.

Conference seeks to accelerate Vietnamese cross-border e-commerce

Amazon Global Selling Vietnam hosted a seminar in Hanoi on October 9 to explore the latest development trends of cross-border e-commerce and unveil the company’s strategy ahead in 2025.

Addressing the event, Gijae Seong, CEO of Amazon Global Selling Vietnam, emphasised that with the continuous development of global e-commerce coupled with the Government's support policies for e-commerce, local enterprises can enjoy new opportunities to expand their international footprint.

To promote e-commerce exports, Amazon Global Selling Vietnam will focus on enhancing its e-commerce capacity and providing necessary resources for Vietnamese small and medium enterprises to take off in the global market, said Seong.

Furthermore, the company will continue to meet its firm commitment to promoting growth and the global presence of Made-in-Vietnam products, he noted.

According to British technology advisory firm Access Partnership, business-to-consumer (B2C) e-commerce exports from the Vietnamese market were valued at US$3.5 billion last year, of which micro-, small- and medium-sized enterprises (MSMEs) contributed 26%. In particular, 93% of surveyed MSMEs said they could not export their products without e-commerce.

Over the past five years, the number of products sold on Amazon from Vietnamese sales partners increased by more than 300%. Most notably, the number of Vietnamese sales partners participating in Amazon's Brand Registry scheme witnessed a 35-fold rise.

The leading five product categories with the highest growth rates on Amazon are Health & Personal Care, Home, Kitchen, Apparel, and Beauty.

Disbursement rate for public investment remains sluggish: MoF

Data from the Ministry of Finance (MoF) showed that as of the end of September this year, provinces, ministries and government agencies had allocated VNĐ664.9 trillion (US$26.7 billion) for public investment.

That total represents 98.1 per cent of the plan previously approved by the Prime Minister, leaving VNĐ13 trillion unallocated. Of that amount, the government has proposed the National Assembly to relocate VNĐ 8 trillion from ministries, agencies and localities that have so far failed to earmark or disburse the funds, to those with greater needs. 

By the end of last month, the estimated disbursements for public investments totalled over VNĐ 320.5 trillion, or 47.3 per cent of the yearly target, significantly lower than the 51.4 per cent disbursement rate recorded during the same period last year. 

Of the disbursed funds, domestic sources accounted for over VNĐ315.7 trillion, 47.98 per cent of the year's target, while foreign capital reached nearly VNĐ4.86 trillion VND, or 24.33 per cent of the annual target.

According to the Ministry of Planning and Investment (MPI), 23 localities and 31 ministries and government agencies have failed to meet the national average disbursement rate. 

Meanwhile, those praised for their efforts include the Ministry of Agriculture and Rural Development, the Ministry of Transport, the provinces of Yên Bái, Phú Thọ, Thanh Hóa, Nghệ An, Tiền Giang and Long An, and Hải Phòng city.

The MPI has long expressed concerns over the sluggish disbursement rate, claiming it has negatively impacted local socioeconomic targets, as well as national overall development. 

For example, HCM City has been allocated VNĐ 79.26 trillion, or 11.7 per cent of the country's entire public investment budget for 2024, but so far has only disbursed 21.29 per cent of the funds.

Similarly, the capital city Hà Nội has been allocated over VNĐ81.03 trillion this year, 12 per cent of the country's budget, but has only disbursed 38.88 per cent of the funds. The northern province of Hưng Yên, which received VNĐ19.92 trillion, around three per cent of the national budget, has disbursed just 31.13 per cent of the funds. 

By contrast, other provinces and cities, while receiving significantly smaller funds, have been able to raise their disbursement rate.  

The ministry cited various reasons for the delays, including complexities related to land compensation, resettlement and delays in project implementation. To make matters worse, fluctuations in the property market have led to difficulties in auctioning land and collecting land-use fees in localities across the country, resulting in a sharp fall in budget collection. Challenges also remained in disbursing ODA and concessional loans from foreign donors.

However, the MPI said this pattern has been consistent for years, with disbursements remaining low during the early months of the year, only to pick up speed toward the year end.

HCM City and the Vietnam National University in HCM City say the funds allocated to them exceed their capacity to absorb, and they have proposed returning a significant portion to the central government. 

Natural disasters, floods, and severe landslides in the northern provinces in recent months have also significantly slowed construction progress, causing many projects to be temporarily halted.

Chairman of the northern Tuyên Quang Provincial People's Committee Nguyễn Văn Sơn said heavy rainfall in recent weeks has put a stop to most construction projects in the province, which posted a disbursement rate of just 40 per cent.

He said, however, the province has not yet adjusted its target to disburse up to 95 per cent of public investment funds by the end of the year. 

The Chairman of HCM City's People's Committee, Phan Văn Mãi, said they have been working around the clock to raise the disbursement rate. 

"HCM City has only disbursed over 20 per cent of its yearly target, which is very low. However, we have categorised projects, identified solutions and are implementing measures to accelerate the process," he said. 

Earlier last month, the Prime Minister instructed ministries, government agencies and local bodies to focus on accelerating disbursement, creating breakthroughs in public investment, and raising the disbursement rate of the three national target programmes to at least 95 per cent. 

Hà Nội's condo price continues to increase in Q3

Limited supply over many years has increased purchasing power in the property market, while also pushing up primary prices rapidly, according to CBRE Việt Nam's report on Hà Nội's market in the third quarter released on Tuesday.

In the primary market, the average selling price of condominiums in Hà Nội reached VNĐ64 million per sq.m (excluding VAT and maintenance fees), only three per cent lower than the current average price in HCM City. The selling price increased by 8.7 per cent quarter-on- quarter and by 26 per cent year-on-year.

Supplies of new condominium can also be offered at high prices because many are in projects of good quality, located in urban zones with full amenities and conveniently connecting to the central area of ​​Hà Nội and areas with concentrated offices and commercial services.

In the secondary market, the average selling price continued to increase by 5.5 per cent quarter-on-quarter and nearly 26 per cent year-on-year to VNĐ46 million per sq.m (excluding VAT and maintenance fees).

The Hà Nội condo property market is not showing any signs of slowing, with prices currently only about VNĐ2 million per sq.m lower than those in HCM City.

In this quarter, condominium projects that were completed and handed over some time ago recorded the highest secondary price increase, because they are located in areas with densely populated communities that offer many amenities and services.

The liquidity of the Hà Nội condominium market in the third quarter was also one of the bright spots. Although the new supply of condominiums was relatively large, the market's purchasing power remained very positive.

Total sales in the quarter exceeded 8,000 condominiums, down 20 per cent from the previous quarter due to many projects opening for sale simultaneously in Q2 and Q3, but this figure was still more than double that of the same period last year.

Projects located in the eastern and western areas continued to demonstrate strong appeal to homebuyers, with a sales rate of over 90 per cent recorded in the first quarter. Grasping the positive market sentiment, many investors have quickly accelerated the progress of project sales.

Some projects that sold out their products in the third quarter have already received bookings for their next buildings, while other companies are also accelerating their efforts to launch new supplies this year instead of next year.

Nguyễn Hoài An, Senior Director of CBRE Vietnam Hanoi Branch, said: "2024 seems to mark the end the cycle of housing supply scarcity in Hà Nội over the past four years, with the total supply in 2024 expected to reach nearly 30,000 condominiums.

"Positive purchasing power, combined with quality projects developed by experienced investors, will be the premise for stronger market development over the next one to two years." 

In the third quarter 2024, the Hà Nội real estate market saw the largest total new supply of condominiums in the past five years. Supply comes mainly from 11 projects developed in the metropolitan areas of the west and east.

The new condo supply in Hà Nội apartment market in the third quarter consisted of about 8,230 units, nearly equal to the new supply of the previous quarter.

In the first nine months of 2024, the total new supply of condos in Hà Nội reached more than 19,000 units, exceeding the total supply for the whole year of 2023.

Of these, five projects launched their condos for the first time, mostly located in Nam Từ Liêm, Tây Hồ and Gia Lâm districts (Hà Nội) and Văn Giang district (Hưng Yên Province bordering Hà Nội).

CBRE noted that more than 75 per cent of the total new supply came from high-end apartment projects. Of these, only two projects had an offer price of around VNĐ50-60 million per sq.m. The remaining projects all recorded an average primary price of over VNĐ60 million/m2 (excluding VAT and maintenance fees).

In the last quarter of 2024, new supply is forecast to exceed 10,000 condos, bringing the total number of newly launched condos in 2024 to nearly 30,000 units, about three times higher than the new launches for sale in 2023, and the highest supply in the past five years. A large proportion of the supply is expected to come mainly from the high-end segment.

Meanwhile, more luxury projects are expected to be launched for sale at the end of this year, continuing to push up the primary selling price in the last quarter of the year.

In addition, secondary prices will continue to increase in the context of abundant primary supply, but with a more stable rate of increase. 

Fifteen Vietnamese banks named in the global top 500 banking brands

Fifteen Vietnamese banks have been named among the world’s top 500 banking brands recently announced by the global leading brand valuation consultancy Brand Finance, according to the Việt Nam Banks Association.

Of those, nine climbed to a higher placing, three banks were named for the first time, while three saw slight drops in the rankings.

Specifically, Vietnam International Commercial Joint Stock Bank (VIB) climbed 66 places from 491st in 2023 to 425th in 2024.

HCM City Development Bank (HDBank) moved up 33 places to 366th in 2024 from 399th in 2023. Sacombank moved up 32 places to 322nd. ACB ranked 243rd, moving up 30 places while Vietinbank ranked 157th from 171st in 2023.

Other banks which saw higher rankings including BIDV (151st, up ten places), Vietcombank (133rd, up four), Techcombank (160th, up three) and MB (227th, also up three places).

TPBank, LPBank and MSB were named in the list for the first time, ranking 326th, 424th and 458th, respectively.

Meanwhile, Agribank dropped from 159th in 2023 to 162nd, VPBank from 173rd to 175th and SHB from 419th to 436th.

The report from Brand Finance showed that the combined value of the world’s top 500 most valuable banking brands has reached a record level of US$1.44 trillion, almost double what it was a decade ago.

Chinese banking brands recovered in value, holding on to top four most valuable banking brands spots and increasing in brand value

ICBC (Industrial and Commercial Bank of China) maintains its position as the world's most valuable banking brand for the eighth consecutive year, posting a three per cent rise in brand value to $71.8 billion. China Construction Bank, the Agricultural Bank of China and the Bank of China secure second, third, and fourth positions respectively. 

Retail credit remains under great pressure

Although banks are always interested in retail credit due to its high profitability, this lending segment is currently under great pressure as capital demand from individual customers remain sluggish.

According to experts, retail banks have recently lost momentum in their core credit segment, with the proportion of personal loans decreasing sharply.

Lê Hoài Ân, a lecturer at HCM City Banking University, noted that lending by retail banks has fallen to its lowest level in the past five years, dropping from nearly 65 per cent ​​in 2022 to 58.7 per cent in the first half of 2024.

Fluctuations in the loan portfolio structure of certain retail banks indicate that personal consumer credit no longer has as much room for growth as it once did.

Data on retail sales growth for goods and services also reflects weaker consumption in 2024, with growth rates of only 8 to 9 per cent, much lower than in previous years.

Meanwhile, corporate credit growth within this banking group reached a new peak in 2023 at 32.3 per cent - more than double that of personal credit, which stood at 12.1 per cent. This trend has continued into 2024.

In an effort to stimulate demand for personal credit, particularly for home purchases and consumer loans, banks and financial companies have been offering various incentives, but boosting capital demand has proven difficult. This is partly because lending interest rates are only reduced for a short period in the first few months, before increasing by as much as 5 per cent per year. When these incentives expire, the higher rates make it difficult to sustain demand.

At Agribank, loans with a minimum term of three years have a fixed interest rate of 6.5 per cent per year for the first 12 months. For loans with a term of five years, the fixed interest rate is 7 per cent per year for the first 24 months.

BIDV offers an interest rate of 5.2 per cent per year for the first six months or 5.5 per cent per year for the first 12 months for loans with a minimum term of 36 months.

At Vietcombank, short-term loans have interest rates starting at 6.2 per cent per year for 18 months, 6.5 per cent per year for 24 months, or 8 per cent per year for 36 months.

BVBank applies a loan interest rate of 6.9 per cent per year for six months or 8.49 per cent per year for 18 months for loans longer than 24 months.

TPBank offers a fixed interest rate of 6.8 per cent per year for the first 12 months on loans with a minimum term of 48 months.

Compared to corporate loans, individual customers continue to face higher interest rates, even during the current downward trend in rates.

According to Dr Nguyễn Hữu Huân, a lecturer at HCM City University of Economics, the retail segment is still highly profitable. However, if interest rates are not reduced further, it will be difficult to stimulate capital demand, including for home loans and consumer loans. In fact, credit growth in this segment faced difficulties in the first half of this year. 

WB, UOB raise Việt Nam’s GDP growth forecast

Việt Nam’s GDP growth for 2024 is projected by the World Bank to be 6.5 per cent, an increase from the 5.5 per cent forecast made in April.

The projection was released on Tuesday in an updated report on the economic situation in the East Asia and Pacific region for October.

With this forecast, Việt Nam’s GDP growth is higher than that of eight countries in the ASEAN region and China.

The report highlights a number of positive signs in Việt Nam’s economy compared to other countries in the region.

Investment growth appears to be relatively robust in Việt Nam while it slows in China and remains below pre-pandemic levels in Malaysia, the Philippines and Thailand.

Việt Nam is also one of the few countries that have seen tourist arrivals return to or surpass pre-pandemic numbers.

The country has also benefited from 'connecting' major trading partners as global tensions rose, according to the report.

“Vietnamese firms exporting to the US saw sales grow almost 25 per cent faster than those exporting to other destinations over the period 2018–21,” it says.

The World Bank projects China’s GDP growth at 4.8 per cent in 2024, which may decrease to 4.3 per cent in 2025.

The organisation attributes this decline to prolonged weakness in the real estate market, low confidence among investors and consumers, an aging population and global tensions.

In the ASEAN region, the projected growth rates for 2024 and 2025 for Thailand are 2.4 and 3.0 per cent, respectively.

For Malaysia they are 4.9 and 4.5 per cent, for Indonesia 5.0 and 5.1 per cent and for the Phillippines 6.0 and 6.1 per cent

Also on Tuesday, the Singapore-based United Overseas Bank (UOB) increased its GDP growth forecast for Việt Nam this year to 6.4 per cent, up from the previous projection of 5.9 per cent.

The revision takes into account of the year-to-date performance and the disruptions to activities in early the fourth quarter caused by Typhoon Yagi.

Việt Nam’s GDP in the third quarter grew by 7.4 per cent, higher than the average market forecast of 6.1 per cent and UOB’s projection of 5.7 per cent, according to UOB’s Global Economics & Market Research Unit.

The surprise outcome reflected the resilience of the economy, despite the devastation from the super typhoon, the bank said.

The service sector was the main driver of Việt Nam's GDP growth in the last quarter, contributing 3.24 percentage points, followed by the industry and construction sector with 3.37 percentage points.

At the beginning of October, the International Monetary Fund (IMF) also increased its projection of this year’s growth for Việt Nam to 6.1 per cent, up 0.3 percentage point from its previous prediction in June. 

Đà Nẵng sets development objectives for fourth quarter

A meeting was held by the Đà Nẵng Party Committee on Wednesday to evaluate achievements in the third quarter of the year and discuss key tasks for the fourth.

An important plan that must be moved forward in the last months of the year is the establishment of the Đà Nẵng Free Trade Zone.

According to the Standing Committee of the Đà Nẵng Party Committee, after receiving the Central Government's directive, the city’s authorities had organised inspections to identify the potential locations for different areas of the free trade zone, and discussed what to include in the proposal.

They had also worked with the Prime Minister's Office, experts, and international consultants to develop another proposal, which aims at establishing a regional financial center in the city.

Trần Thị Thanh Tâm, director of the city’s Department of Planning and Investment, said that the department is focussing on preparing documents for the free trade zone proposal.

They aim to submit it to the Ministry of Planning and Investment for evaluation by the end of November, so that the ministry can present it to the Prime Minister in December.

At the same time, the city is also preparing a draft decision, which appoints the Danang Hi-Tech Park and Industrial Zones Authority (DHPIZA) to be the management authority of the free trade zone.

The draft will be submitted to the Ministry of Home Affairs for review in the fourth quarter.

The city’s authorities and related agencies will continue to review and propose adjustments to the Đà Nẵng City Master Plan for the 2021-30 period, approved by the Prime Minister in Decision 1287 from November 2, 2023.

They will also focus on tasks that facilitate the production of microchips, semiconductors, artificial intelligence and attract strategic investments – particularly into the construction of the Liên Chiểu Port that will be connected to the free trade zone.

Đà Nẵng authorities will also continue to implement measures to actualise the goals and objectives identified by the Central Government for the development of the city, particularly, the Politburo’s Conclusion 77 on reviving the economy after the COVID-19 pandemic, and Conclusion 79 on the city’s development until 2030.

They will also follow the National Assembly’s Resolution 136 on organising urban government and piloting specific mechanisms and policies for the city, and Notification 417 issued by the Prime Minister after a working session with the city’s leaders last month.

The city will actively coordinate with central agencies to develop the proposal for establishing an international and regional financial center in Việt Nam.

Selecting capable investors to undertake comprehensive investments and manage the operation of the Liên Chiểu Port is also a key task for the city in the last months of the year.

Hà Nội expands agricultural export markets with planting area codes

Hà Nội has ramped up investments in recent years to establish planting area codes for key crops like longans, grapefruits and bananas, paving the way for official agricultural exports and delivering significant economic benefits to local farmers.

The issuance of planting area codes, which assigns specific identification numbers to production regions, serves as a 'passport' for Hà Nội's agricultural products, helping them compete domestically and enter international markets.

Trần Văn Bảy, a farmer in Hoài Đức District, said that before receiving a planting area code, his late-ripening longans were mostly exported informally to China. Despite meeting quality standards, access to markets like the US and Australia was blocked without the code. With support from Hà Nội's authorities, his longans are now exported to both countries.

Trương Văn Thường, Director of Thắng Lợi Safe Vegetable Production and Supply Cooperative in Thường Tín District, said since 2021, the cooperative has received a planting area code from the Hà Nội Sub-Department of Cultivation and Plant Protection, along with VietGAP certification for its exported bananas. This has streamlined sales and increased the value of local produce, with annual exports to China averaging 600 to 800 tonnes.

Nguyễn Thị Thu Hằng, Head of the Hà Nội Sub-Department of Quality, Processing and Market Development, said that Hà Nội has supported localities in managing planting area codes and packaging facilities, enhancing the competitiveness of agricultural exports.

Currently, 16 export planting area codes and 133 domestic codes have been issued. As a result, in the first half of 2024, Hà Nội’s agricultural, forestry and fishery exports exceeded US$1.2 billion, marking a 58.5 per cent increase, Hằng said.

Key exports include cinnamon, star anise, spices, green tea, vegetables, fruits, rice, shiitake mushrooms, black fungus, pepper and cassava starch.

The introduction of planting area codes has not only facilitated the domestic and international consumption of agricultural products, but also encouraged farmers to shift towards safe and sustainable farming practices, fostering a more professional and sustainable agricultural industry, she said.

Đào Thị Lương, Director of Tâm Anh Safe Vegetable, Fruit and Ecotourism Cooperative in Phú Xuyên District, said that the cooperative regularly educates its members on adhering to strict production processes and quality control measures required by partners.

This includes maintaining detailed farming records and ensuring the careful care, processing and storage of products. However, she also called for more support from relevant authorities in building value chains, branding, and participating in trade fairs, both within Hà Nội and beyond, to access modern distribution channels and export markets.

Phùng Thị Thu Hương, CEO of Green Path Vietnam, a leading fruit export company in Hà Nội, said that while different markets impose varied requirements for planting area codes, all certified areas must adhere to good agricultural practices and maintain comprehensive farming records to ensure traceability. She further noted that both farmers and businesses must take a proactive approach to pest control and strictly comply with pesticide residue regulations set by importing countries.

Alongside complying with VietGAP and GlobalGAP standards – two crucial certifications for ensuring safe and sustainable agricultural practices – major export markets have established even higher quality standards to minimise risks and guarantee traceability.

“Thus, obtaining a planting area code is crucial in affirming the safety and hygiene standards of agricultural products, building trust and reputation in the marketplace,” Hương said.

Nguyễn Đình Hoa, Deputy Director of Hà Nội’s Department of Agriculture and Rural Development, highlighted the city's strong potential for exporting fruits, flowers and ornamental plants. However, to access foreign markets, products from certified planting area code regions must meet quality standards, be free from harmful microorganisms, and comply with food safety regulations, along with proper packaging and labelling.

Hoa said that Hà Nội’s agricultural sector is collaborating with localities to provide technical training for farmers, businesses and officials on import regulations. The city is also intensifying inspections and tightening the management of planting area codes and packaging facilities to ensure compliance with phytosanitary and food safety standards.

Furthermore, efforts are underway to develop concentrated production areas with traceable, high-quality products, while encouraging businesses to invest in modern packaging facilities to meet international market demands, she said. 

Da Nang enjoys 33.3% surge in tourist arrivals over nine-month period

Da Nang City, the tourism hub in central Vietnam, welcomed 8.7 million arrivals over the past nine months, marking growth of 33.3% year on year, according to the city's Statistics Office.
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Among the arrivals were more than 3.2 million foreign travellers, up 30.6% year on year, and 5.5 million domestic holidaymakers, up 34.9%. said the municipal statistics agency.

The robust tourism recovery resulted in strong revenue increases of restaurant and accommodation services, up by 23% to nearly VND21 trillion.

Currently, international visitors to Da Nang are mainly Korean, Japanese, Indian, Southeast Asian, and American. In addition, local authorities continue to promote key international markets in Northeast Asia and Southeast Asia, while simultaneously working to attract customers from potential markets such as India, Australia, the United States, and northern Europe.

Da Nang, designed as a destination of Meeting, Incentives, Conferencing and Exhibition (MICE) events, has set a target of hosting 8.4 million visitors this year.

Early this year, several of the city’s resorts were chosen as ideal venues for Indian couples' weddings and accommodation for their relatives and friends to stay at for several days.

VNA/VNS/VOV/VNN