Vietnamnet global

16/10/2024 13:53 (GMT+07:00)

Vietnam Business News October 16/2024

Shrimp exports bring home nearly 2.8 billion USD in nine months

Vietnam's shrimp export turnover is estimated at nearly 2.8 billion USD in the first nine months of this year – the highest among aquatic products, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

The figure represented a surge of 10.5% compared to that of the same period last year, the association reported.

While frozen shrimp exports faced competition from Ecuador and India, processed shrimp maintained a strong market position. Overseas shipments of processed white-leg shrimp grew by nearly 10%, while frozen white-leg shrimp rose 4.5%.

Shipments to several major markets posted positive results. As of September 15, shrimp exports to the US reached 516 million USD, to the EU 337 million USD, to China and Hong Kong (China) 529 million USD, up 8%, 15% and 26% year-on-year, respectively.

VASEP forecast Vietnam is likely to rake in nearly 4 billion USD from shrimp exports this year./.

HCM City's real estate market witnesses recovery

The real estate market in Ho Chi Minh City has witnessed positive changes over the past nine months.

Chairman of the Ho Chi Minh City Real Estate Association Le Hoang Chau said that the city’s real estate market overcame its most difficult period in the first quarter of 2023. Since then, the market has gradually recovered and this trend will not be reversed.

At the end of 2023, the real estate market decreased by 0.8%. However, in the first nine months of 2024, the market had positive growth, reaching about 6-7%. Nine commercial housing projects in the city have got approval for investment; four commercial housing projects are eligible to mobilise capital with a total of 1,011 units, including 678 apartments and 44 low-rise houses. All these apartments are in the high-end segment, meaning that no apartments in the mid-range or affordable segments are offered to the market.

Vice President of the Vietnam Association of Real Estate Brokers Pham Lam said the real estate market is getting brighter thanks to important driving forces.

In terms of policy, ministries, agencies and localities have implemented legal regulations more transparently. The Government is also determined in implementing infrastructure projects to create momentum for the development of the whole country.

Infrastructure development has supported the residential and industrial park real estate markets. Meanwhile, capital sources are improved as many foreign investors have invested in large projects in Ho Chi Minh City and the neighbouring province of Binh Duong.

Lam said that the government has also made efforts to promote credit and interest rate stability for home buyers. Many banks are willing to offer a fixed interest rate for three years at only 5%. With this interest rate, home buyers have easier access to capital, he said.

Another driving force is market confidence, including the confidence of investors and the brokerage team. From 2021 to 2023, the brokerage force decreased significantly. Many large enterprises are facing difficulties and many of them had to downsize, even reducing up to 90% of their staff, which leads to a dispersion of forces.

However, this can be also considered a good sign because now, brokers need to have more knowledge and skills than the traditional approach to customers in the past. A decrease in quantity but an increase in quality will be positive for the market, Lam noted.

According to economic experts, although the real estate market has shown signs of improvement, the number of apartments in the first eight months of 2024 decreased by more than 94.9%, reaching only 14,286 units compared to the same period in 2023.

No mergers and acquisitions projects have been implemented, while such projects can help clear inventory faster and bring in investors with stronger financial capacity. However, these transactions are being blocked by regulations in the Law on Real Estate Business, requiring the transferor to fulfill financial obligations before being allowed to transfer.

Another problem is that housing prices have increased by 15-20% due to the law of supply and demand. When supply is scarce and demand is high, the rise in housing prices are inevitable. This makes it difficult for people to access housing.

Su Ngoc Khuong, Senior Director of Investment at Savills Vietnam, said that foreign investors still find it difficult to access real estate in Hanoi and Ho Chi Minh City due to legal issues and access to land plots.

For real estate groups that generate cash flow such as offices, shopping malls, resorts and especially industrial parks, the rate of return often fluctuates from 6-8%. These are the segments that foreign investors previously prioritised to quickly access the Vietnamese market.

However, the current situation has become more difficult because foreign investors are still interested in the residential real estate sector, but the number of transactions is very limited./.

Australia initiates anti-dumping probe into Vietnamese steel

The Australian Department of Industry, Science and Resources has launched an anti-dumping investigation into hot-rolled deformed steel reinforcing bars in lengths originating from Indonesia, Malaysia, Thailand, Turkey, and Vietnam.

As the plaintiff, Infrabuild NSW Pty Limited of Australia submitted a request for an anti-dumping probe into the steel products coded HS 7214.20.00, HS 7228.30.10, HS 7228.30.90, and HS 7228.60.10. The investigation period was from July 1, 2023, to June 30.

At present, the Anti-Dumping Commission (ADC) under the Australian Department of Industry, Science and Resources has issued an Investigation Questionnaire to Vietnamese exporting enterprises.

According to the ADC, the deadline for submissions of the Investigation Questionnaire will be October 31.

As scheduled, the ADC plans to issue a Preliminary Affirmative Determination on November 25, a Statement of Essential Facts on January 13, 2025, and its final recommendation on February 26, 2025.

The Trade Remedies Authority of Vietnam (TRAV) has recommended that Vietnamese enterprises subject to the investigation carefully study all relevant documents, instructions, and regulations to fully cooperate alongside the ADC to respond to the Investigation Questionnaire and provide sufficient information as requested by the ADC.

More Lunar New Year flights approved for Tan Son Nhat airport

The Civil Aviation Authority of Vietnam (CAAV) has decided to increase the landing and takeoff frequency at Tan Son Nhat International Airport in Ho Chi Minh City on airlines’ requests during the coming Lunar New Year festival (Tet) that often sees a spike in the number of passengers travelling to their hometowns for family reunion.

Accordingly, from January 14 to February 12, the number of flights at the airport will increase from 42 to 46 per hour between 06:00 a.m. and 11:55 p.m. and from 32 to 42 per hour from 00:00 a.m. to 05:55 a.m.

At the domestic terminal area, the hourly frequency of takeoff at Gate A and Gate B will increase from 13 to 15 flights and 11 to 13 flights, respectively. Meanwhile, the hourly frequency of landing will increase by 21 to 22 flights.

The CAAV also requested that airlines ensure the effective use of granted taking off and landing slots, as well as safety, security, and stable service quality.

According to the CAAV, this decision will help airlines and other relevant units to actively develop their operation plans on the occasion of Lunar New Year, the peak travelling season of the year.

Vietnam Airlines Group, including Vietnam Airlines, Pacific Airlines, and VASCO, opened early sales in September for nearly 1.5 million seats on the entire domestic flight network for travel from January 13, 2025, to February 12, 2025.

Meanwhile, low-cost carrier Vietjet also opened sales early with 2.6 million tickets over the period from January 15, 2025, to February 12, 2025.

The Prime Minister has yet to approve the off-work plan for the coming Lunar New Year holiday. Meanwhile, the Ministry of Labour, Invalids and Social Affairs has proposed nine days off work, lasting from January 25, 2025 to February 2, 2025.

Vietnamese and Chinese firms co-operate in hi-tech livestock farming

BAF Vietnam Agricultural Joint Stock Company signed a strategic partnership deal with China’s Muyuan Foods Co., Ltd on October 16 to step up cooperation in hi-tech livestock farming.

Addressing the signing ceremony, Truong Sy Ba, chairman of the Board of Directors of BAF Vietnam Agricultural JSC, emphasised that the partnership will help BAF to soon achieve its goal of becoming the leading livestock group in Vietnam by 2030.

Ba expressed his hope that apart from transferring technologies in animal husbandry, biosafety, and environmental solutions, both sides will be able to continue expanding cooperation in multiple spheres to jointly accelerate the modern and innovative development of the livestock industry.

Under the signed deal, BAF and Muyuan aim to transfer smart livestock technology and apply advanced technology, digital transformation, and artificial intelligence throughout the livestock chain.

Gao Tong, chief financial officer of Muyuan, said that the group can support BAF in achieving its goal of expanding to 100 farms with 450,000 sows and 10 million pigs by 2030.

The Muyuan CFO expressed his belief that through the strategic partnership, the two sides can accelerate the development of the pig farming industry in Vietnam and provide local consumers with clean, fresh, and safe food.

Domestic gold rings hit record-breaking VND84 million per tael

Gold ring prices hit an all-time high in Vietnam on the morning of October 16, surpassing VND84 million per tael.

Doji Group bought and sold gold rings at VND83.2 million and VND84.1 million per tael, marking increases of VND400,000 compared to the previous trading session.

Saigon Gold and Jewelry Company rated each tael of SJC gold rings at VND82.3 million for buying and VND83.7 million for selling, up by around VND500,000 per tael compared to transactions on October 15.

Furthermore, gold rings at Bao Tin Minh Chau Company were quoted at VND83.18 million and VND84.08 million per tael for buying and selling, rising by VND250,000 per tael from the trading session the previous day.

Meanwhile, at 9:30 a.m. on October 16, the price of gold bars inched up by around VND1 million to reach VND84 million and VND86 million per tael for buying and selling.

Saigon Gold and Jewelry Company listed each tael of SJC gold bar at VND84 million and VND86 million per tael, up VND1 million for buying and selling prices compared to the previous day.

Similarly, DOJI gold prices saw an increase of VND1.1 million per tael to reach VND84 million and VND86 million per tael for buying and selling.

This sudden rise is largely fueled by the robust increases in global gold prices. Gold in the world market was traded at US$2,667.2 per ounce on the gold exchange Kitco, up US$13 per ounce compared to the previous trading session.

Gold prices reached an all-time high after the US Federal Reserve moved to cut interest rates by 0.5%, thereby weakening the US dollar, according to international experts.

Nearly 600 firms register for Int’l Furniture Expo VIFA in Ho Chi Minh City

As many as 600 Vietnamese and foreign businesses will attend the 16th Vietnam International Furniture and Handicraft Export Fair (VIFA Expo 2025), set to take place in Ho Chi Minh City next March.

On display will be an array of high-quality products in the interior and exterior furniture industry, home decoration and handicraft items, as well as accessories, machinery, and support services in the industry.

Several large enterprises operating in the industry will join in the expo, including Koda, Woodnet, Scancom, Fine Scandinavian, MFC, PMA, and Savimex

The expo is expected to welcome 20,000 visitors, including 7,000 international buyers, to tour and explore opportunities at approximately 3,000 booths.

According to the Ministry of Agriculture and Rural Development, Vietnamese wood and furniture exports during the nine-month period reached US$12.5 billion, up 17.2% against the same period last year.

More consumption promotion programmes until year end

Many programmes on promoting consumption until year end have been launched to boost domestic consumption growth, one of the three important pillars of the economy.

According to the Ministry of Industry and Trade, in September 2024, domestic consumption and production recovered, along with the strong growth of tourism, contributing to the growth of the trade and service industry.

Total revenue from retail sales of consumer goods and services in September 2024 is estimated at VNĐ535.8 trillion, up 1.2 per cent over the previous month and up 7.6 per cent over the same period last year.

In the first nine months of 2024, total revenue of retail sales of goods and services reached VNĐ4.7 quadrillion, up 8.8 per cent over the same period last year, the highest increase since the beginning of the year.

The ministry said that it would continue to strongly develop the domestic market and coordinate with local ministries and branches to closely monitor market developments.

It also would ensure adequate supply of essential goods for the market, especially during peak holidays and Tết, to avoid supply shortages and price hikes.

To stimulate consumption, Dr Nguyễn Bích Lâm, former general director of the General Statistics Office, said that the Government needed to implement consumption stimulus solutions through tax and social security policies, such as a reduction of the personal income tax rate and reduction of VAT for a longer period.

The State needs to reduce air and railway service prices to stimulate domestic tourism and attract foreign tourism and increase consumption promotion campaigns for Vietnamese goods.

Research Director of the Centre for Market Solutions for Socio-Economic Issues (MASSEI), Đinh Tuấn Minh, also supported the proposal that the State should consider extending the 2 per cent VAT reduction period, instead of only applying it until the end of 2024.

"This policy has been effective in the past months," Minh said.

Dr Nguyễn Đức Độ, deputy director of the Institute of Economics and Finance under the Ministry of Finance, suggested that the State should consider adjusting the family deduction level as it was no longer suitable. When actual income increases, people would spend more on shopping.

Meanwhile, minister of Industry and Trade Nguyễn Hồng Diên suggested that all levels, sectors and localities should continue to implement consumer stimulus packages, especially at the end of the year, combined with implementing market stabilisation programmes, focusing on essential goods in areas affected by storms and floods.

To stimulate the domestic consumer market, contributing to the economic recovery, the Ministry of Industry and Trade will organise a national promotion programme - Vietnam Grand Sale 2024 - taking place from December 2 to 31.

Along with this national programme, localities are also actively implementing stimulus solutions at the provincial and municipal levels.

The Hà Nội Department of Industry and Trade of the city will organise a promotion event in the last months of the year.

Meanwhile, HCM City Department of Industry and Trade has announced a market stabilisation programme for the end of 2024 and the Lunar New Year 2025. This year's programme is expected to attract 69 key businesses, an increase of ten businesses compared to 2023.

Deputy general director of BRGMart Supermarket System, Nguyễn Thị Hiền, said that to meet people's shopping needs in the last months of 2024, as well as before and during the Lunar New Year 2025, the company had coordinated with suppliers to double or even triple the volume of goods in stock compared other months of the year.

They would also carry out control of high-quality goods, food safety and hygiene, transparent origin and stabilise selling prices.

Director of Co.op Mart Hà Đông supermarket Nguyễn Thị Kim Dung said that their supermarket system would also bring in many promotional programs to stimulate consumption at 800 points of sale.

Similarly, the WinMart/WinMart+/WiN supermarket system is also launching many consumption promotion programmes for essential goods, such as food, confectionery and beverages.

Ben Tre’s export earnings up 14.02% over nine months

Thanks to efforts to intensify in-depth trade promotion, and maintain and expand export markets, the export turnover of the Mekong Delta province of Ben Tre hit over 1.2 billion USD in the first three quarters of 2024, up 14.02% year-on-year, and equivalent to 70% of the yearly plan.

The locality’s key exports showed significant growth compared to the same period last year, including aquatic products (up 12.3%), desiccated coconut (up nearly 14%); coconut milk (up 19%), and textiles (up 12.8%).

Notably, the structure of export goods shifted positively towards increasing the proportion of refined and deep-processed industrial products with high technological content, while reducing the share of raw and processed goods.

Director of the provincial Department of Industry and Trade Nguyen Van Be Sau said the locality’s export turnover target of approximately 1.7 billion USD in 2024 is likely to be realised, including about 500 million USD from exporting coconut products.

Ben Tre has so far exported 100 coconut-based industrial products to 100 countries and territories worldwide.

In the first nine months, the locality shipped 22 million coconuts at premium prices to the US, Japan, the European Union, and the Republic of Korea (RoK).

The Department of Industry and Trade will collaborate with the Department of Agriculture and Rural Development to develop a concentrated coconut production area, thus reinforcing the coconut value chain towards maintaining export markets, especially China, Sau stressed.

Bui Duong Thuat, Director of the Mekong Fruit Export Co., Ltd in Chau Thanh district, said the business exports about 30-40 containers of fresh coconuts to 10 countries each month. It has shipped approximately 3 million fresh coconuts overseas so far this year.

Director of the provincial Department of Agriculture and Rural Development Doan Van Danh said a delegation from China visited Ben Tre to assess and inspect local coconut-growing areas. As a result, 13 areas were accepted by the inspection team, paving the way for the locality to officially export fresh coconuts to the Chinese market in October 2024.

According to Danh, Ben Tre has 133 cultivation areas that basically meet the production conditions for registering fresh coconut growing area codes, with a total area of nearly 8,400 hectares and involving over 12,800 households.

Recently, Ben Tre has regularly promoted international economic integration and leveraged free trade agreements (FTAs) such as the EU – Vietnam FTA (EVFTA), the Regional Comprehensive Economic Partnership (RCEP), and the UK – Vietnam FTA (UKVFTA), to foster trade and exports.

Each year, the local authorities organise and support businesses to participate in forums, seminars, market surveys, and trade fairs in the country and foreign markets, to seek opportunities for expanding export markets.

Attention has been also paid to developing a market information system and applying information technology to collect and provide information related to domestic and international markets.

The Mekong Delta locality has strengths in agricultural and aquatic products. Many products of Ben Tre such as tra fish, clams, shrimp, coconut products, and fruits are favoured by customers in China, the EU, the US, Japan, and the Middle East.

To date, the province has exported goods to 130 countries and territories across the world, including demanding markets./.

Bac Ninh welcomes new Tien Son inland port

The Minister of Transport has signed a decision to officially open the Tien Son inland port, located in northern Bac Ninh province.

The port at Tien Son Industrial Park, Tu Son city, spans 114,836 square metres and is projected to handle about 120,000 TEUs (Twenty-Foot Equivalent Units) annually, with the Bac Ky Investment Joint Stock Company as the project’s investor.

The primary objective is to operate, provide services and carry out import-export procedures in accordance with Decree No. 38/2017/ND-CP of April 4, 2017 and the Investment Certificate and Business Registration Certificate.

The Ministry of Transport has instructed the investor to comply with the operational responsibilities outlined in Decree No. 38/2017/ND-CP and relevant laws.

The inland port operator must complete all required procedures, ensure the project aligns with its intended purpose and the investment phases, and guarantee safety, security, fire prevention and environmental protection.

Located strategically in Bac Ninh, the port will play an important role in facilitating the transfer of goods through various modes of transport, connecting road and highway networks to major seaports of Hai Phong and Quang Ninh.

This marks a significant step in Bac Ninh's efforts to improve infrastructure and strengthen its role as a logistical hub in northern Vietnam.

Bac Ninh is planned to become a centrally governed city by 2030, transforming into a dynamic economic and cultural hub in northern Vietnam and a growth pole in the Red River Delta region, tightly connected to Hanoi.

The province also aims to develop a modern and synchronised socio-economic infrastructure system, targeting an average annual gross regional domestic product (GRDP) growth rate of 8-9%./.

Vietnam’s shrimp export earnings rise slightly over nine-month period

Vietnamese shrimp export turnover hit US$2.8 billion during the first nine months of the year, up 10.5% year on year, the Vietnam Association of Seafood Exporters and Producers (VASEP) reported on October 14.

The United States remained the biggest buyer of Vietnamese shrimp products in the reviewed period, spending US$516 million in on imports, up 8% compared to the same period last year.

It was followed by the EU with US$337 million, up 15%; Hong Kong (China) with US$529 million, up 26%; and Japan with US$342 million, down 1%.

White-leg shrimp is the main export product of the Vietnamese shrimp industry, contributing nearly US$2 billion to the total turnover between January and September. Meanwhile, black tiger shrimp exports brought back US$334 million.

The price of white-leg shrimp (size 50,80,100 shrimps per kilogramme) witnessed a steady increase from July to September.

The average price of Vietnamese shrimp exported to the US, the EU, China, and Japan has also increased slightly since June.

If the export momentum is maintained in the remaining months of the year, Vietnam could achieve a shrimp export value of US$4 billion this year, as reported by the VASEP.

Major export items to China earning over US$1 billion each

Vietnam has raked in US$44.3 billion from exporting goods to the Chinese market over the past nine months, up 2.7% year on year, with many export items fetching a turnover of over US$1 billion each, according to the General Department of Vietnam Customs.

Throughout the reviewed period, the country saw 10 export items gross US$36.8 billion, representing a rise of 4.4% against the same period last year and accounting for 85% of the total export value to the northern neighbour.

The highest export turnover was recorded in the category of phones and components with US$10.8 billion; followed by computers, electronic products, and components with US$9.09 billion; and machinery, equipment, tools, and other spare parts with US$2.45 billion.

Meanwhile, Vietnam grossed US$1.43 billion from exporting footwear products to China, up 5.9% year on year.

Rubber exports to China reached US$1.37 billion, down 4.6% year on year, while timber and wooden products surged by 25.3% in export earnings to US$1.53 billion

Most notably, Vietnamese fruit and vegetable exports saw an upswing of 37.8% year on-year to reach US$3.79 billion, while seafood exports also rose by 19.8% year on year to US$1.21 billion.

Recently, China opened its market for several Vietnamese agricultural products such as bird's nests, fresh and frozen durian, and fresh coconuts.

Experts pointed out that there remains ample room ahead for Vietnamese fruits to make further inroads into the market, with many products expected to reach billions of US dollars over the coming years.

Vietnam spends US$470 million on importing meat from India

Vietnam is now importing meat and meat products from 57 markets, with India emerging as the largest supplier, accounting for 22.5% of the country’s total meat and meat product imports over the past nine months.

The Ministry of Industry and Trade’s statistics indicate that during the January to September period, businesses spent US$1.24 billion buying meat and meat products from overseas, up 19.2% year on year.

India alone shipped US$470 million worth of the products to Vietnam, becoming the largest supplier.

Meanwhile, Vietnamese imports of meat and meat products from most markets increased compared to the same period last year, such as Poland, the United States, Australia, Canada, Turkey, and Japan, the Ministry reported. By contrast, the imports from countries such as Russia, Brazil, and Spain decreased in comparison to the same period from 2023.

Vietnam mainly purchased chilled or frozen meat and edible by-products of poultry, pig, cattle, and buffalo.

In the opening nine months of this year, the country imported over 64,000 tonnes of chilled or frozen meat with a value of US$145 million, an annual drop of 5.9% in volume and 18% in value. The average price of imported chilled or frozen meat stood at US$2,245 per tonne, decreasing by 12.9% compared to last year.

Vietnam imported chilled or frozen meat from a total of 32 markets worldwide, with the largest supplier Brazil accounting for 38.5%, Russia for 30.8%, and Canada for 9.1%.

Foreign exchange rate increases again in October

After cooling down in August 2024 and bottoming out at the end of September, the USD/VND exchange rate has shown signs of increasing again since the beginning of October.

According to experts, the exchange rate has increased again due to a recovery of the US dollar price in the international market and a slowdown in Vietnam’s trade surplus.

The central exchange rate announced by the State Bank of Vietnam on October 1 was VND24,081 per dollar, but it has been continuously adjusted up since then to reach VND24,168 per dollar currently.

The exchange rates listed at commercial banks have also been adjusted up since the beginning of this month. Specifically, the dollar selling rate at Vietcombank on October 1 was at VND24,770 per dollar and currently surpasses the VND25,000 mark.

The domestic exchange rate has been moving in the same direction with the upward trend of the dollar in the international market over the past week. In early October, the dollar index (DXY) was still at just under 101, which was also the lowest level over the past two years. However, the greenback suddenly increased sharply in just a few days to more than 102 on October 4 and has remained at this high level since then.

The sudden jump in the dollar price came after US Federal Reserve (Fed)’s chairman Jerome Powell said that recent revisions to data on economic growth, savings rates and personal income had removed some of the risks the Fed was concerned about. Meanwhile, important information on the US labour market released in early October showed that private payrolls in the US increased by 143,000 jobs in September, surpassing economists' forecast of 120,000.

Director of VPBank Securities Company’s market strategy division, Tran Hoang Son, said that US economic indicators showed that the economy was still in good shape and from there, investors predicted that the Fed would not need to cut interest rates quickly.

In addition to factors from the international market, a slowdown in Vietnam’s trade surplus was also one of the temporary disadvantages for the domestic exchange rate.

Data from the General Statistics Office shows Vietnam’s trade surplus in September narrowed to US$2.29 billion, against US$4.5 billion in August. In the month, the country’s export turnover reached US$34.05 billion, down 9.9% compared to the previous month, while import turnover was US$31.76 billion, down 5.9% compared to the previous month. The above figures show that both exports and imports decreased compared to the previous month, but exports decreased at a faster rate than imports.

According to experts, from a monetary perspective, the decline in exports can be considered a warning factor about a decline in foreign currency revenue.

However, the import-export figures of one month may only be temporary and may not represent a cycle. Some financial experts are still optimistic about Vietnam's export prospects in the final months of 2024.

Head of VNDirect Securities Company’s macro and market strategy department, Dinh Quang Hinh, forecast Vietnam's export turnover this year might grow by about 15 per cent compared to last year. In the last months of the year, Hinh predicted that exports of some groups of products, including agricultural products, seafood, textiles, and footwear, would make a breakthrough due to increasing orders and the low base level in 2023.

Other products, such as electronic components, computers, machinery, equipment and means of transport, would maintain a positive growth trend in the fourth quarter of this year thanks to the improvement of the global economy and investment environment after a series of recent loosening of monetary policies, Hinh said.

Thái Bình launches two major projects worth over VNĐ3 trillion

Hưng Hà District in Thái Bình Province has granted investment certificates for three projects and commenced construction on two major projects with a total investment of over VNĐ3 trillion (US$122.4 million).

The first project is the Lynn Times Duyên Hải High-End Hot Mineral Resort Complex, invested by Onsen Fuji Group and Duyên Hải Hot Mineral Company. Phase 1 of the project has a total capital of nearly VNĐ240 billion, covering an area of 4.8 hectares, while Phase 2 is expected to attract an additional VNĐ2 trillion. This project is anticipated to become a major attraction for both domestic and international tourists.

The second project is the BGF Thái Bình Vegetable Oil Factory, located in Hưng Nhân Industrial Cluster, covering over 3.87 hectares with a total investment of more than VNĐ992 billion. Phase 1 of the factory will have a capacity of 1,000 tonnes of soybeans per day, with Phase 2 adding technology for the production of high-protein plant-based powder. The project is expected to create numerous jobs for the local workforce and contribute positively to the community.

Hưng Hà District also awarded investment certificates to three additional businesses, granted land use certificates to M2 Factory Hưng Hà in the Hưng Nhân Industrial Cluster and celebrated the signing of investment agreements with 15 enterprises, with a total capital of US$256 million.

Speaking at the ceremony, Trần Hữu Nam, secretary of the Hưng Hà District Party Committee, congratulated the entrepreneurs ahead of Việt Nam Entrepreneurs' Day (October 13) and acknowledged their significant contributions to the locality's socio-economic development, especially in job creation, budget contributions and social welfare activities.

Hưng Hà District is committed to continuing its support for businesses and called for unity among the business community to help the district become a leading economic hub in Thái Bình Province.

In the first nine months of 2024, Hưng Hà attracted 12 secondary projects both inside and outside industrial clusters, with a total registered capital of over VNĐ2.83 trillion, promising a fresh impetus for the district's economic growth.

Lai Châu attracts VNĐ2 trillion worth of investments

Lai Châu Province attracted more than VNĐ2 trillion (US$80.5 million) of investments at an investment promotion conference held on Sunday.

At the conference, the provincial People’s Committee granted decisions approving investment policies for four projects.

These include the 28MW Là Si 1A hydropower project with a total investment of VNĐ1.05 trillion for energy company ES-LC; the 24MW Nậm Ngà hydropower project with a total investment of VNĐ970 billion for Nậm Ngà Hydroelectricity Company Limited; a forestation project in Sìn Hồ worth VNĐ115 billion for KDT Đại Việt; and a high-tech forestation project in Tân Uyên District worth VNĐ28 billion for Thai Lai Tâm Huệ An.

The province also granted growing codes for Lai Châu ginseng to Sao Đỏ Tây Bắc and Thái Minh High-tech Agriculture at the conference and signed memorandums of understanding with 12 investors in sectors including real estate, tourism, medicinal and fruit tree plantation, as well as processing and consumption of agro-forestry products worth over VNĐ3 trillion in total.

Lai Châu also announced 61 projects that are open for investment, including tea plantation and production in Tân Uyên and Tam Đường districts, a Tam Đường golf course, a Sìn hồ resort complex, a Tân Uyên golf course, a vegetable and fruit processing plant in Than Uyên and a shopping complex in Tam Đường.

Bùi Nguyễn Anh Tuấn, deputy director of the Domestic Market Department under the Ministry of Industry and Trade, said that Lai Châu has significant potential in mining, agriculture and tourism. The ministry will provide support to Lai Châu to attract investors and expand markets.

Lai Châu welcomes investors and pledges to create the most favourable conditions for investors to do business in the mountainous northern province and contribute to the province’s sustainable development, according to Lê Văn Lương, chairman of the provincial People’s Committee.

The focus will be on removing difficulties, offering high incentives and simplifying administrative procedures for investors. Business registration certificates will be issued in no more than two days, with investment policy decisions made in no more than two thirds of the prescribed time and construction permits in no more than 10 days.

HCM City banks, businesses enhance connection for loans

HCM City’s programme to link banks and businesses to enable lending to the latter has greatly assisted them with accessing preferential credit and promoted lending growth, according to the State Bank of Vietnam.

Speaking at a conference to link up banks and businesses in HCM City on October 14, Nguyễn Đức Lệnh, deputy director of the SBV’s HCM City branch, said outstanding loans at city banks as of September end were worth nearly VNĐ3.75 quadrillion (US$150.9 billion), up 5.83 per cent from the end of last year and 11.7 per cent year-on-year.

This reflects the effectiveness of policies to support businesses and the latter’s ability to absorb capital, he said.

He believed that the credit growth target for this year of 14-15 per cent would be achieved as the last quarter of each year often see a significant rise in capital demand.

Lệnh said that earlier this year, 17 banks had registered to participate in the programme and provide preferential loans worth VNĐ509.8 trillion.

They disbursed over VNĐ425 trillion to enterprises, cooperatives and household businesses in HCM City in the first eight months of this year, accounting for 83.4 per cent of the preferential credit package.

According to the SBV, the city banking industry has organised 31 conferences to bring together banks and businesses, and contracts worth VNĐ58.14 trillion were signed there.

The banking sector plans to continue with its activities to link up with businesses and support initiatives to ensure adequate supply during the final months of the year, he said.

This month the SBV, along with other agencies and departments, would hold three conferences to help small and medium enterprises, agricultural and rural businesses and the import-export sector, which are among the driving forces of economic growth, access preferential bank loans.

Từ Tiến Phát, CEO of ACB, said the city economy has seen green shoots of recovery this year, but difficulties like low public spending, a sluggish real estate market, weak private sector production and business activities, and low consumer demand remain.

The city needs to address these challenges for sustainable and rapid growth in future, and that requires combined efforts by the Government, businesses and the banking system, he said.

His bank committed to a preferential lending package worth VNĐ5 trillion ($201.7 million) to businesses introduced by the HCM City Union of Business Associations, or HUBA.

But it could increase the size to VNĐ10 trillion or even VNĐ20 trillion, he said.

The interest rates will range from 5.5 per cent per year for short-term loans and 6.4 per cent for long-term loans.

ACB is also rolling out a green credit programme to help businesses meet international ESG requirements.

HUBA Chairman Nguyễn Ngọc Hòa said the banking-business connection programme has proven to be effective, helping businesses access soft loans from banks.

Nguyễn Đăng Hiến, general director of the Tân Quang Minh Beverage Company, said: “Businesses should participate in these conferences to access information and capital at lower interest rates, which will be especially beneficial during the Lunar New Year production cycle.

"Our company has participated multiple times to seek opportunities to access working capital and funding to acquire fixed assets."

Quảng Trị develops infrastructure for coal transport from Laos

The central province of Quảng Trị is developing its infrastructure to facilitate coal transport from Laos via La Lay International Border Gate in A Ngo commune of Đakrông district.

In June, the provincial People’s Committee granted in-principle approval for a project to build a cross-border coal conveyor belt that spans over 23 hectares in A Ngo commune.

The six-kilometre conveyor belt, expected to cost over nearly VNĐ1.5 trillion (US$59.98 million), has a designed capacity of 30 million tonnes of coal a year.

Meanwhile, procedures are being completed to get the local administration’s nod for an over-12-hectare warehouse in A Đeng village of A Ngo commune. The project is estimated to cost more than VNĐ715 billion and has a capacity of 30 million tonnes of coal a year.

The province is also working on an 85-kilometre conveyor belt from the La Lay International Border Gate to Mỹ Thủy seaport in Hải Lăng district and a warehouse project in Cam Hiếu commune of Cam Lộ district.

Coal imports and transport from have been seen as a key sector for economic development in Quảng Trị province.

Over the past time, Việt Nam has imported a large amount of coal from Laos via the La Lay International Border Gate, with the daily volume of up to 12,000 tonnes. Coal imports through the border gate could fetch 500 million tonnes in the next 50 years.

Quảng Trị is investing in upgrading the border gate’s infrastructure to handle traffic congestion and ensure traffic safety there.

PM applauds Hyosung’s plan to invest another 4 billion USD in Vietnam

Prime Minister Pham Minh Chinh received Chairman of Hyosung Group Cho Hyun-joon in Hanoi on October 14, applauding the Korean firm’s intention to invest another 4 billion USD in Vietnam.

Talking to Cho, who has visited Vietnam twice in just three months, the host spoke highly of the group’s trust, efforts, and determination while operating in the country. He called on it to keep building on its business results gained so far and expand investments to achieve higher targets in the coming time.

He acknowledged Hyosung’s fruitful investment and business performance as well as social activities in the country, stating that Vietnam will continue accompanying and providing optimal conditions for the firm’s projects to operate healthily, sustainably, and profitably.

Vietnam is pushing ahead with improving the investment climate, reforming administrative procedures, cutting compliance cost, boosting power decentralisation, and developing strategic infrastructure so as to reduce expenses and promote competitiveness for goods and enterprises, the PM noted.

For his part, Cho said Hyosung, a large enterprise of the Republic of Korea (RoK) working in the fields of industrial materials, information technology, industrial electricity, construction, chemicals, and trade, is the third largest direct investor from the RoK in Vietnam. It has invested about 4 billion USD and created some 10,000 jobs in the country so far.

He perceived that Vietnam’s investment climate is trustworthy, saying he believes the country will become a manufacturing hub of Asia.

Hyosung is realising its commitment to placing its future in the next 100 years in Vietnam, and positioning itself as not only a Korean company but also a Vietnamese one, he remarked.

It plans to invest another 4 billion USD and create about 10,000 new jobs to contribute more to the local economy and further carry out social responsibility, the chairman noted, adding in the short term, it will continue expanding investments in data centre, high-tech industrial materials, aviation biofuel, and carbon fibre manufacturing.

As Hyosung is inviting the UAE’s Abu Dhabi National Oil Company (ADNOC) to act as a partner in its projects in Vietnam, Cho expressed his hope for Vietnam’s support so that the two enterprises can efficiently carry out investment projects and become a new business cooperation model among Vietnam, the RoK, and the UAE.

Hyosung will also help attract investment from the Middle East to the Southeast Asian nation, he continued.

Welcoming the group’s investment expansion intentions, PM Chinh asked Hyosung to pay attention to environmental protection, enhance connectivity with local companies, and ensure welfare for workers.

He said Vietnam encourages investment in the manufacturing of new materials using high technology, and that it supports the cooperation plan between Hyosung and the ADNOC.

The Government leader called on the Korean enterprise to bring into play its investment and business experience in Vietnam while making use of the ADNOC’s strong resources, large partner network, and modern technology to develop projects applying high, green, and clean technologies. He also suggested it help boost supporting industries, innovation, and technology transfer in the country, and assist local companies in improving their production capacity and competitiveness to engage in global supply chains./.

Equity funds triumph in market on stock investments

Numerous equity investment funds outperformed the stock market's benchmark VN-Index by a significant margin in September, according to a Fiingroup's report on investment fund activities in Vietnam.

Last month, 87% of equity funds (55 out of 61 funds surveyed) outperformed the VN-Index, the report showed.

Leading the pack were exchange-traded funds (ETFs) like SSIAM VNFINLEAD and KIM Growth VN30 ETF, with respective performances of 5% and 4.4%, attributed to their stock portfolios in the banking and securities sectors.

Other notable funds such as United Vietnam Opportunity Fund and Techcom Banking and Finance Equity Fund (TCFIN) also posted performances exceeding 4%.

Despite this, overall performance dipped in September compared to August due to less favourable market conditions.

Most funds saw lower performance levels amid reduced liquidity for the third consecutive month, hitting the lowest point in almost a year. Individual investors were actively selling off without any particular sector leading the market.

Since the beginning of 2024, the VN-Index has risen by 14%, with 38 out of 61 equity investment funds recording growth surpassing the index.

Standout performers included the VinaCapital Modern Economy Equity Fund (VMEEF) with a 33.3% surge, the DCVFMVN Diamond ETF (FUEVFVND) with a 30.5% rise and the Long-Term Growth Fund of Vietnam (VLGF) with a 28.6% increase. These top-performing funds all shared FPT Corporation (FPT) and Asia Commercial Joint Stock Bank (ACB) in their key holdings.

Additionally, several other funds achieved impressive performances over 20%, such as PYN Elite, VFMVF1, VFMVFS, VESAF, E1VFVN30 and FUEKIV30.

In the realm of bond investment funds, 17 out of 23 surveyed funds have showcased profits that outshine the interest rates offered by savings deposits.

Standing out in September is the Bao Viet Bond Fund (BVBF), marking a 1.1% increase - the fund's most impressive monthly performance in 2024 thus far. BVBF's asset portfolio includes bonds issued by VietinBank (CTG) and Agribank.

Conversely, the Techcom Bond Fund (TCBF) struggled with a small performance rate of 0.3%, largely due to its heavy concentration in corporate bonds from Masan, Vingroup and Novaland.

However, over the first nine months, TCBF emerges as the top-performing bond investment fund, boasting a robust 11.9% return, surpassing the second-place Lighthouse Capital Bond Fund with an 8.9% return.

In contrast, TCBF recorded its eighth consecutive month of net capital outflows, totalling 6.9 trillion VND (277.7 million USD), representing 62% of the total outflow value among bond funds over the past year.

Encouragingly, capital inflows into the Vietnamese stock market via investment funds took on a positive tone last month, with net inflows surpassing 1.1 trillion VND following nine consecutive months of outflows.

Capital flows retained their upward trajectory in open-end funds, amounting to 655 billion VND, while closed-end funds and ETFs experienced outflows, albeit at a moderated pace compared to previous periods.

Investment capital flowing into bond funds maintained its positive trend in September, reaching 2.1 trillion VND, reflecting an 18.3% growth compared to the previous month. This marks the tenth consecutive month of favourable net inflows, hitting the highest level since the start of 2024./.

Thai Nguyen seeks to draw US semiconductor investors

The northern province of Thai Nguyen is aiming to become an attractive destination for US investors in sectors like education, health care, culture, and especially semiconductors, Secretary of the provincial Party Committee Trinh Viet Hung has affirmed.

During a meeting with a US delegation led by US Ambassador to Vietnam Marc E. Knapper in the province on October 15, Hung emphasised Thai Nguyen's strong potential for and interest in the semiconductor industry.

Thai Nguyen offers a favourable investment environment, strong commitment, and ample industrial development opportunities, he said, expressing his hope that Knapper can help connect US investors with the province.

Knapper thanked Thai Nguyen for the warm welcome and highlighted ongoing collaborations between US universities and Vietnamese educational institutions, noting that Vietnam has sent many students to study in his country. He said he hopes that more Vietnamese students, including those from Thai Nguyen, will come to the US.

The ambassador praised the local education system, considering this as a good basis for US investors to consider investing in high-tech industries, including semiconductors, in Thai Nguyen.

During the visit, the US delegation also had meetings with leaders and students of Thai Nguyen University, along with small businesses supported by the US Agency for International Development (USAID)./.

PM leads discussion on high-quality, low-emission rice cultivation in Mekong Delta

Prime Minister Pham Minh Chinh chaired a conference in the Mekong Delta city of Can Tho on October 15 to discuss solutions to a project on sustainable development of one million hectares of high-quality, low-emission rice cultivation associated with green growth in the Mekong Delta by 2030, which was launched in November 2023.

In his speech, the PM described rice as a key strategic commodity of Vietnam. Rice production, he stressed, is not just about ensuring national food security and social stability; it is a lifeline for millions of farming households and a major driver of exports. Moreover, it plays a critical role in global food security and enhances Vietnam's international reputation.

The project is of paramount significance for regional farmers, rice industry, and Vietnam's broader efforts to combat climate change, aiming for net-zero emissions in line with commitments made at the 26th United Nations Climate Change Conference of the Parties (COP26), he said.

The Ministry of Agriculture and Rural Development (MARD), in collaboration with 12 regional provinces, has carried out this project, already achieving notable initial results.

Chinh called on relevant ministries, particularly the MARD and local authorities, to submit detailed reports on the project's implementation, highlighting any obstacles faced and proposing solutions to overcome them.

After nearly a year of concerted efforts, ministries, agencies and local authorities have issued legal documents to support the project, selected and established areas for involvement, and applied technical packages that meet sustainability criteria. Training courses have been offered to reorganise production and strengthen value chain connectivity, among others./.

Vietnam, RoK expand cooperation on smart city building

A business connection programme to foster cooperation between Vietnam and the Republic of Korea (RoK) in smart city development is underway in Ho Chi Minh City.

Held from October 15 to 17 by the HCM City Computer Association (HCA) and Meta Square, the initiative, Vietnam & Korea on IT Sector, aims to help with the city’s goal of becoming an economic hub in Asia and a global city.

The event includes B2B meetings between 14 Korean technology companies and 60 Vietnamese businesses, along with six working sessions between the RoK side and Vietnamese agencies, organisations, and businesses, aiming to strengthen relations in IT and digital transformation.

Fourteen leading technology firms from the RoK are showcasing advanced technologies in artificial intelligence, augmented reality/virtual reality, security, and smart mobility, which are being applied to industrial and urban development in the RoK.

Choi Yong-jin, Chairman of the ICT Industry Promotion Association of the RoK's Gyeongbuk province (GBICT), said basing on the partnership with the HCA, the GBICT will continue efforts to explore new business opportunities and boost cooperation between enterprises of Gyeongbuk and HCM City, as well as those of the two countries.

The GBICT will step up new cooperation projects and initiatives to contribute to the software industry and benefit both sides, he added.

On this occasion, the HCM City Department of Information and Communications and the RoK delegation also exchanged experience in smart city building, and discussed collaboration on the development of global digital twin services and AI-integrated maintenance for railway systems./.

Inclusive business necessary to improve competitiveness: workshop

A workshop to promote inclusive business in agriculture in Vietnam and an incubator programme for supporting organisations and inclusive business enterprises aiming for international recognition was held by the Agency for Enterprise Development (AED) under the Ministry of Planning and Investment, the ASEAN Secretariat and relevant units on October 15 in Hanoi.

This event marked an important step forward in raising awareness of and building a robust ecosystem for inclusive practices, and supporting businesses in creating new competitive advantages and values and bring about socio-economic benefits.

Trinh Thi Huong, AED deputy head, emphasised that sustainable development has become an inevitable trend, as business operations are heavily impacted by global geopolitical fluctuations, economic changes, and climate change.

Inclusive sustainable business model is a helpful approach being promoted worldwide to enhance competitiveness for businesses. It enables companies to engage in activities that not only generate profits but also encourage stakeholders to operate sustainably, transforming compliance burdens into advantages for the business, she stated.

Jason Lusk, a representative from Clickable Impact, a foreign consulting firm specialising in ecosystems and climate technology, said that the inclusive business offers triple benefits for the government, businesses, and low-income individuals.

Specifically, for low-incomers, this model helps provide stable employment and income. For the government, it promotes economic growth, and for businesses, it facilitates access to new markets and enhances brand value.

In Vietnam, in 2022, the Prime Minister approved a programme to support private enterprises in sustainable business development in the 2022-2025 period. It focuses on inclusive business practices with the goal of ensuring that all segments of society, especially vulnerable groups that are often overlooked in traditional business models. benefit from economic activities./.

Hà Nội accelerates agricultural brand building

In recent years, Hà Nội’s agricultural authorities have actively supported local cooperatives in developing brands and trademarks and enhancing the quality and value of their products in the market.

Hà Nội has long been known for many unique specialties that are favoured by consumers both domestically and internationally, such as Canh oranges, Diễn grapefruits, Cự Đà soy sauce, Kim An guavas and Tân Ước pork sausage and rice cakes.

However, many agricultural products have yet to meet the requirements of international markets for food safety and traceability. To achieve this, building brands for agricultural products is crucial.

For over 10 years, farmers in Kim An Commune, Thanh Oai District have transformed their agricultural production model to focus on growing fruit trees, especially a variety of oranges so sweet they are nicknamed ‘sugar oranges’.

After several years of implementing a safe production process, in 2016, Kim An Sugar Orange produce was certified with a collective trademark by the Intellectual Property Department (under the Ministry of Science and Technology), and received a VietGAP certification from the International Certification Organization (NHO-QSCert).

Tam Hưng Agricultural Cooperative in the same district has also been trying to build the Bối Khê Fragrant Rice brand.

“All farmers are required to focus on production following the VietGAP standards, with a closed process from seedling selection to processing and marketing,” said Đỗ Văn Kiên, the cooperative’s director.

The products are packaged with logos and trademarks, or in large bags according to customer requests.

"Thanks to efforts in promoting the value of the collective trademark, our rice products have established their reputation and quality in the domestic market," Kiên added.

In 2012, the Đan Phượng Golden Grapefruit cooperative in Thượng Mỗ Commune, Đan Phượng District received a collective trademark registration certificate from the Intellectual Property Department.

“Since then, local households have focused on safe production and maintaining the brand, which makes sales stable,” said the cooperative’s director Nguyễn Quý Thành.

Currently, all agricultural land in the commune had been converted to grow golden grapefruit and other fruit trees, of which 152 hectares are solely dedicated to grapefruit cultivation, he added.

“We encourage farmers to invest in net houses and adopt automated irrigation technologies for tree care,” he said. “Produce grown with biosafety practices is labelled with QR codes for traceability, helping farmers sell their products through supermarkets and convenience stores in Hà Nội.”

The cooperative harvests 500 to 600 tonnes of grapefruit annually, generating income ranging from VNĐ300 million (US$12,100) to VNĐ2 billion ($80,500) per hectare per year.

According to Nguyễn Thị Thu Hằng, head of quality, processing and market development under Hà Nội’s agricultural department, more than 40 brands for agricultural and poultry products have been developed in the capital city.

Apart from the aforementioned brands, there are also Đại Thành Lychee from Quốc Oai District, Vân Nam Bananas from Phúc Thọ District and Vân Đình Ducks from Ứng Hòa District.

“Some products, like the Vân Nam Bananas and organic Đồng Phú Rice from Chương Mỹ District, have been exported, with prices increasing by 15-20 per cent compared to when they did not have a brand,” Hằng said.

Nguyễn Đình Hoa, deputy director of the Hà Nội Department of Agriculture and Rural Development, said that the department would continue to collaborate with communal and district authorities to build and develop brands for key agricultural products.

“We will promote the comprehensive application of science and technology in production, from seed selection and care to transportation, preservation and processing, to meet food safety requirements,” he said.

“We will also coordinate with other ministries and departments to provide training and equip farmers with knowledge about brand value, and the importance of brand building.”

This would help them understand and accelerate the development of agricultural brands, introduce their products through modern sales channels and develop their reputation towards exports, Hoa said.

Market continues downward trend as foreign investors extend selling streak

The stock market extended its decline on Tuesday, with the VN-Index falling close to the 1,280-point mark, while foreign investors maintained their strong selling activity.

On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index closed at 1,281.08 points, down 5.26 points, or 0.41 per cent.

Market breadth on the southern bourse was negative, with 238 stocks declining, 78 advancing and 44 remaining unchanged. Liquidity fell to VNĐ16.6 trillion (US$665.2 million), marking an 8.8 per cent decrease compared to the previous session.

The VN30-Index, which tracks the top 30 stocks by market capitalisation on the HoSE, edged down by 0.2 points to 1,356.09 points. Within the VN30 basket, 18 stocks declined, eight made gains and four remained unchanged.

The market's downturn was driven by large-cap stocks in the manufacturing and real estate sectors, with Vinhomes JSC (VHM) recording the steepest decline in market capitalisation, falling by 1.54 per cent and contributing nearly 0.73 points to the VN-Index's overall decrease.

It was followed by Vietnam Rubber Group - Joint Stock Company (GVR), which fell by 1.52 per cent, Viet Nam National Petroleum Group (PLX), which dropped by 3.6 per cent and Vingroup Joint Stock Company (VIC), which decreased by 1.19 per cent.

However, the market's losses were cushioned by gains in some key stocks, led by the Bank for Investment and Development of Vietnam (BID), which rose by 1.21 per cent, contributing more than 0.84 points to the VN-Index.

Experts from Viet Dragon Securities said: "Liquidity decreased compared to the previous session, indicating hesitation between supply and demand. As supply pressure persists in the region above 1,280 points, it is expected that the market will continue testing the supply-demand balance around this level before clearer signals emerge.

"Investors should observe supply-demand dynamics to assess market conditions. At present, priority should be given to stocks showing strong cash flow signals from support levels, while taking advantage of recoveries to adjust portfolios and reduce risk."

On the Hà Nội Stock Exchange (HNX), the HNX-Index also declined by 0.77 per cent, closing at 228.95 points.

During the session, shares worth more than VNĐ990 billion were traded, with a total trading volume of over 53 million shares on the northern bourse.

Foreign investors continued their selling streak, with net sales amounting to over VNĐ573 billion on the HoSE.

Construction giant Sông Đà Corp to divest from 23 subsidiaries

The State-owned Sông Đà Corporation Joint Stock Company on Tuesday announced plans to divest from 23 subsidiaries and dissolve one unit, as part of its restructuring strategy through to 2028.

The corporation said they will focus on two main areas, which are construction and installation, along with the production and trading of commercial electricity.

They plan to divest entirely from the 23 subsidiaries that are “non-performing, not aligned with the company’s development strategy, with low competitiveness” to enhance their capital efficiency, restructure debts, and improve financial indicators.

They also plan to dissolve the National Road No. 2 BOT JSC.

The subsidiaries that will face divestment include the Sông Đà 2, Sông Đà 4, Sông Đà 6, Sông Đà 11 and Sông Đà 12 joint stock companies.

However, for Sông Đà 4 and 6, their performance will be reviewed, and they may be removed from the divestment list, if showing stability and effectiveness, according to the corporation.

The Sông Đà Corporation was founded in 1961 under the Ministry of Construction and is the main contractor for most hydroelectric projects in Việt Nam.

As of June 30, it had 3,220 employees and manages 29 subsidiaries and joint ventures.

Investors have noted that despite having total assets of VNĐ22.77 trillion (US$912.9 million) as of June 30, the corporation’s efficiency of asset utilisation is low.

In 2023, its return on assets (ROA) was only 1.86 per cent, while the industry average was 2.24 per cent.

The ROA is predicted to be also below industry average this year as the company’s profits for the first half of the year was only VNĐ176.8 billion ($7.09 million), down 42.1 per cent compared to the same period last year.

Việt Nam, Korea IT conference opens in HCM City

A three-day trade connection programme opened in HCM City on Tuesday (October 15) to offer investment opportunities and business cooperation for Vietnamese and Korean enterprises to develop new technologies and solutions for smart urban construction.

The programme called “Việt Nam and Korea in the IT Sector” is taking place at Harmony Saigon Hotel & Spa on Bùi Thị Xuân Street in District 1 until October 17.

It is organised by the HCM City Computer Association (HCA) in collaboration with Meta Square.

Hoàng Minh Anh Tú, vice chairman of HCA, said this trade connection programme was one of a series of activities held in the city in response to the annual National Digital Transformation Day (October 10).

It attracted the participation of many Vietnamese and Korean experts and organisations, 60 Vietnamese enterprises, and 14 leading Korean enterprises in the fields of Artificial Intelligence (AI), virtual reality/augmented reality (3D/AR-VR), security, privacy, information security (Security), and smart mobility.

“It is expected to promote the development of effective cooperation between the two countries,” he said.

It includes business-to-business (B2B) connections, meetings and working sessions between Korean and Vietnamese enterprises, organisations and agencies in the IT sector.

In particular, the city’s Department of Information and Communications will host a reception for the Korean delegation to learn and share experiences in building and developing smart cities, and promoting effective cooperation.

A memorandum of understanding (MoU) was signed between HCA and the Gyeongsangbuk-do Pohang City Consortium and Nara Information Consortium to support the connection and promote the development of Digital Twin and AI-integrated Metaverse Platform for the integration of AI and cloud technology in railway maintenance.

Established in 1988, HCA is the first and largest organisation representing the IT industry community in the country with 470 business members, and also a partner of more than 50 domestic and international trade promotion organisations, associations and business communities.

With over 35 years of development, it has consistently positioned itself as a ‘trusted partner’ for both domestic and international IT communities.