The State Bank of Vietnam (SBV) has issued new regulations to guide gold bar trading on the domestic market.

Circular 12/2023/TT-NHNN, which amends Circular 06/2013/TT-NHNN, will take effect from 27 November this year.

Under the new circular, the SBV’s Department for Management of State Foreign Exchange Reserves (DMSFER) must make a written notification to the SBV's Foreign Exchange Management Department, the SBV’s Finance and Accounting Department, the SBV’s Central Banking Department, and the SBV’s Issue and Vault Department about the results of gold bar trading transactions with each credit institution and enterprise after signing to confirm the transactions.

The SBV also amends and supplements regulations on the responsibilities of the DMSFER in gold bar trading. Specifically, the DMSFER must act as the focal agency and coordinate with the Foreign Exchange Management Department to submit to the SBV’s Governor proposals on temporary suspension and cancellation of gold bar trading transactions with credit institutions and enterprises according to regulations. The department also needs to notify credit institutions and enterprises of the SBV's decision on the suspension and cancellation.

In addition, the DMSFER will also act as the focal agency and coordinate with the Central Banking Department to perform payments for trading gold bars. The department will have to make a written notification to credit institutions and enterprises about non-refund of deposits, besides notifying and updating the SBV’s Banking Supervision Agency and the Foreign Exchange Management Department on the list of credit institutions and enterprises that have gold bar trading relationships with the SBV.

At the same time, the DMSFER needs to coordinate with the Foreign Exchange Management Department and the Monetary Policy Department to develop the SBV’s gold bar trading plans.

Furthermore, the DMSFER must also notify the Central Banking Department about credit institutions and enterprises that violate prescribed obligations as a basis for processing deposits.

According to the current legal regulations, if licensed credit institutions or enterprises have a need to purchase gold bars from the SBV, they can submit a registration dossier to the SBV to establish trading relations. Within five working days after receiving the dossier, the SBV will inform them of their decision to establish trading relations. Gold bars will be traded either by tender or direct purchase.

Credit institutions and enterprises are allowed to appoint only one representative to participate in each gold trading with the SBV.

Tech giants attend Vietnam International Innovation Expo

The Vietnam International Innovation Expo 2023 (VIIE 2023) will open at the Hoa Lac Hi-Tech Park in Hanoi on October 28, according to the National Innovation Centre (NIC).

The five-day event will see the participation of many tech giants such as SK, Samsung, Google, Meta, Signify, Intel, VISA, Viettel, FPT, Thaco, VNPT, Sovico, VNG, and MoMo.

The expo will showcase innovative solutions, initiatives, and hi-tech products in eight priority fields, namely smart factory, smart city, digital content, network security, environmental technology, semiconductor industry, hydrogen, and health.

It will also provide innovative technology knowledge, update attendees with the current status and trends of domestic and international technology development through symposiums.

Deputy Minister of Planning and Investment Tran Duy Dong said that the VIIE 2023 will be a special event with great significance for the innovation ecosystem in particular, and for the Vietnamese business environment in general.

The ministry wishes to accompany ecosystem entities in the innovation journey, and through the National Innovation Centre to turn resources into opportunities, and bring about benefits for businesses and communities, he added.

Vietnam joins Singapore major travel trade show

Vietnamese tourism agencies and companies are joining ITB Asia 2023 - a regional leading travel trade show which is held in Singapore from October 25-27.

Ho Chi Minh City, Binh Phuoc province and Da Nang city together with tour operators and carriers also joined the annual event which sees the participation of more than 80 tourism organisations, agencies and over 1,800 exhibitors.

Ambassador Mai Phuoc Dung said the ITB Asia 2023 not only helps Vietnamese firms find cooperation partners but also learns from Singapore's experience in organising regional and international events.

Le Truong Hien Hoa, Deputy Director of the Ho Chi Minh City Department of Tourism, said that by joining the event in Singapore, the city aims to introduce its tourism potential to the Southeast Asian market.

Singapore has been among the top 10 tourist markets of Vietnam and Ho Chi Minh City in recent years. In 2019 before the COVID-19 pandemic, Vietnam welcomed nearly 310,000 Singaporean tourists., and the figure last year was 178,861.

Poh Chi Chuan, Executive Director in charge of exhibitions and conferences at the Singapore Tourism Board (STB), said that after the pandemic, Vietnam is one of the leading tourist destinations with high growth in the region.

The tourism industries of Vietnam and Singapore are recovering and growing positively, and healthily. Culture, cuisine, and nature are among the strong factors that help make Vietnam an attractive destination for tourists not only from the region but also around the world, he said.

​Vietnam, Cambodia bolster trade cooperation ​

A conference on bolstering trade cooperation between Vietnam and Cambodia in 2023 opened in Phnom Penh on October 26, within the framework of the ongoing Vietnam-Cambodia Defence, Economic Production Exhibition 2023 (VIDEX 2023).

Deputy Minister of Industry and Trade Do Thang Hai said the event is expected to promote friendship, solidarity and comprehensive cooperation between the two sides, creating opportunities for Vietnamese and Cambodian businesses to meet and exchange.

According to Hai, cooperation in areas of economy, trade, and investment are priorities in the two countries' foreign policies. Cambodia’s new government under the leadership of Prime Minister Samdech Thipadei Hun Manet has paid attention to intensify cooperative opportunities between the two sides.

Deputy Secretary of State for the Ministry of Commerce of Cambodia Nam Lynal said the conference created numerous chances for participants from both public and private sectors of the two countries to exchange ideas and information on trade promotion and to introduce measures to create new driving forces for the fruitful relations between Vietnam and Cambodia.

Representatives of management agencies and business communities of the two countries at the conference discussed trade promotion and connections. They also shared difficulties, opportunities and challenges in investment and business activities in the Cambodian market while proposing solutions to create favourable conditions for trade and investment between Vietnam and Cambodia, especially trade activities in the border areas of the two countries in order to boost socio-economic development of the two countries. 

Hà Nội has better performance on housing market in Q3

Hà Nội saw better performance on the residential market in the third quarter of 2023, though many challenges remain for the recovery of this market, according to CBRE Việt Nam.

“The residential market in Hà Nội began to see more positive movements in Q3 this year thanks to the declining interest rates and more flexible sales policies from the developers," said Nguyễn Hoài An, Senior Director of Hà Nội Branch, CBRE Vietnam.

"The new supply, although limited, is expected to improve in Q4, and would probably achieve better absorption backed by the support of interest rate, as well as a more positive buyers’ sentiment typically happening at year end.”

In the third quarter, Hà Nội condominium market witnessed small improvements in absorption with around 3,640 units sold. Compared to the previous quarter, the number of sold units grew by 1.5 times and almost reached the level of the same period last year, according to the CBRE Việt Nam report on Hà Nội property market in the third quarter of 2023.

During the first nine months of 2023, a total of 7,916 condominium units were sold in Hà Nội, the majority of which are developed within large-scale townships in the West and the East of Hà Nội.

In Q3 2023, several developers offered favourable sales policies including direct discounts on selling price of up to nearly 15 per cent for customers making early payment, or 0 per cent interest support for up to 8 years, accelerating the sales velocity of the projects, An said.

In terms of pricing, average primary prices of Hà Nội condominium units in Q3 2023 remained at a high level, reaching VNĐ50.8 million per sq.m (before VAT and maintenance fee), up by nearly 7 per cent quarter on quarter and 14 per cent year on year.

The main reason for such strong increase include the domination of high-end new supply in the total supply launched in this quarter (over 90 per cent), An said.

On the other hand, several projects increasing primary selling prices and launching new supply in higher levels also contributed to the overall increase of the primary prices market wide in this quarter, according to her.

In the secondary market, the average selling price continued its upward trend, at approximately VNĐ32 million per sq.m, which was a 2.7 per cent increase quarter on quarter and 0.8 per cent increase year on year.

By location, all districts witnessed an increase in secondary prices compared to last quarter, among which Đống Đa, Thanh Xuân, Tây Hồ, Nam Từ Liêm and Gia Lâm recorded an increase of over 3 per cent.

Compared to the same period last year, secondary prices of condominium projects in Hoài Đức and Bắc Từ Liêm posted the highest growth of 8 per cent and 5 per cent, respectively.

In the third quarter of 2023, new condominium supply in Hà Nội reached approximately 3,000 units from nine projects, which was 1.5 times higher than Q2 2023.

However, total accumulated launch during the first 9 months of 2023 was 6,925 units, down by 40 per cent year on year.

"It is expected that the total new supply in this year will reach the lowest level recorded in the last 10 years," An said.

Notably, over 90 per cent of those newly launched in Q3 2023 were of high-end positioning, developed in large-scale townships in Nam Từ Liêm and Gia Lâm.

In terms of location, the West continued to dominate the new supply, accounting for nearly 62 per cent of the total supply in Q3. The remaining supply focused on the East, including Hưng Yên Province bordering Hà Nội.

It is expected that in the last quarter of 2023, new Hà Nội condominium launches will continue to rise with more than 4,500 units to launch, making the total new supply of 2023 to reach 11,400 units.

The new supply in Q4 2023 will come from several projects first launching in the market, as well as from follow-on launches of existing projects in the West, the East and the North of Hà Nội.

Đỗ Thu Hằng, Senior Director, Consulting and Research Department, Savills Hà Nội shared: "Usually, in the last quarter of the year, cash flow will likely improve thanks to payments due at the end of the year; this may be a driving force to help buyers make home buying decisions."

"At the same time, another advantage of the market is that interest rates have been adjusted appropriately. This will partly promote the buyer's decision to buy a house."

"Recently, the Government has speeded up public investment so economic activities have also improved. That has supported the real estate market in attracting more capital and increased demand on property products."

"In addition, if amended laws are passed in the near future, they are expected to give the housing market room to grow. For the long-term, the housing demand will remain high due to positive net migration rate, population growth and high urbanisation rate."

However, Hằng also pointed out that the market still had many challenges, for example the gap in supply and demand, and prices still at high rates.

The market records high demand for affordable housing, but the supply of this segment remained low on the entire market, she said.

“The supply of affordable housing is increasingly limited. For instance, the primary supply of affordable apartments (Class C apartments) reached 51 per cent of the Hà Nội market in 2015. This number has gradually decreased to 5 per cent of the total primary supply of the entire market in Q3 2023," Hằng said. 

VinaCapital open-ended funds continue to perform well

VinaCapital Fund Management Joint Stock Company said its open-ended funds ended Q3 on a high note, with all funds performing very well on a three-year annualised basis.

They include the VinaCapital Equity Special Access Fund (VINACAPITAL-VESAF), VinaCapital Equity Opportunity Fund (VINACAPITAL-VEOF), VinaCapital Insights Balanced Fund (VINACAPITAL-VIBF), and VinaCapital Enhanced Fixed Income Fund (VINACAPITAL-VFF).

In the year to date, VESAF returned 32.8 per cent and was the best-performing equity fund in the market, along with the VEOF equity fund that returned 18.3 per cent and outperformed the benchmark’s return (14.6 per cent).

The benchmark for these two funds is the VN-Index.

VIBF achieved a return of 10.8 per cent, higher than its benchmark’s return (9.8 per cent). Its benchmark is the average of the VN-Index and Vietcombank's 12-month savings interest rate.

VFF, a bond fund, returned 5.9 per cent, higher than its benchmark’s return (5.1 per cent) comprising the 12-month deposit interest rates of Vietcombank, BIDV, VietinBank, and Agribank.

As of 30 September, on a three-year annualised basis, VESAF led the way with a return of 27 per cent per annum, the top in the market, followed by VEOF with 20.2 per cent, the second best performer.

VIBF recorded an annual return of 14.4 per cent, also the top performer in its class.

Brook Taylor, CEO of VinaCapital, said: "As VinaCapital Group celebrates its 20th anniversary, we are proud that our open-ended funds have consistently beaten their benchmarks and delivered long-term value to our investors."

As of 30 September 2023 the total assets under management by VinaCapital’s four open-ended funds were worth more than VNĐ 3.3 trillion (US$134.5 million).

Nguyễn Hoài Thu, managing director and head of investment at VinaCapital, said: "The investment choices of VinaCapital's actively managed equity funds are companies that have a solid foundation and a good management team, along with sustainable growth potential and attractive valuations.

“In the past three years, VinaCapital's open-ended funds have all achieved superior returns compared to the benchmarks regardless of the market's ups and downs by adhering to the investment process based on in-depth research, effective portfolio allocation and strict risk management.

“We forecast that the profits of listed companies will recover strongly in 2024 and support the continued recovery of the VN-Index, thanks to profit growth and attractive valuations." 

HTP warns about delisting shares of Hoà Phát Textbook Printing JSC

The Hà Nội Stock Exchange (HNX) has warned that shares of Hoà Phát Textbook Printing Joint Stock Company (HTP) may be delisted as it fails to meet listing conditions after business restructuring.

HNX requests that HTP provide a written response to HNX on the above issue no later than five working days from October 20.

Hoà Phát Textbook Printing Joint Stock Company (HTP), formerly known as Hoà Phát Textbook Printing Enterprise under Education Publishing House of Ministry of Education and Training, was established in April 1996.

HTP operates in the fields of printing textbooks, books, magazines, packaging products, producing and trading all kinds of graph paper, student notebooks, notebook labels and all kinds of stationery.

In the trading session on September 18, Thành Công Securities Joint Stock Company bought nearly 4.5 million HTP shares, increasing its ownership to nearly 7 million shares, equivalent to 7.23 per cent of capital, officially becoming a major shareholder at Hoà Phát Textbook Printing.

On the stock market, HTP shares are trading around VNĐ27,500 per share.

SSI Securities Inc announces pre-tax profit 2 times higher than last year

SSI Securities Inc (SSI) has just announced pre-tax profit for the third quarter of 2023 reaching VNĐ880 billion, 2.1 times higher than the same period last year.

Revenue reached VNĐ1.9 trillion, up 44 per cent over the same period last year.

Proprietary trading activities flourished when profit from selling FVTPL (fair value through profit and loss) assets increased sharply 73 per cent compared to the third quarter of 2022, reaching VNĐ765 billion. Brokerage revenue reached VNĐ535 billion, an increase of 58 per cent and accounting for the second largest proportion in the total revenue structure.

Interest from loans and receivables of SSI in the third quarter increased by 6 per cent over the same period last year to VNĐ431 billion.

Operating expenses also increased by 18 per cent to VNĐ653 billion, mainly due to brokerage costs recorded at VNĐ384 billion, equivalent to an increase of 33 per cent over the same period last year.

As a result, SSI's pre-tax profit in the third quarter of 2023 reached VNĐ880 billion, 2.1 times higher than the profit achieved in the third quarter of 2022.

In the first nine months of 2023, the company brought in VNĐ5.1 trillion in revenue, up 3 per cent over the same period last year. Pre-tax profit and after-tax profit reached VNĐ2.2 trillion and VNĐ1.78 trillion respectively, both up 21 per cent over the same period of 2022.

As of September 30, 2023, SSI's total assets reached VNĐ55.28 trillion, an increase of more than VNĐ3 trillion compared to the beginning of the year. 

Mobile apps becoming key tool for businesses

All kinds of businesses ranging from app developers to small traders are using mobile apps to develop their business since they offer multiple functions and solutions such as entertainment, online shopping, banking, and healthcare.

The apps have become tools for businesses to easily and conveniently approach customers, optimise operations and develop their brands and competitiveness.

Global data and business intelligence platform Statista reported that by 2025 the world mobile application market would be worth US$613 billion.

All companies want to get a piece of mobile advertising pie, it said.

But there are also other ways to monetise mobile apps besides advertising, it pointed out, the most popular being paid installs and in-app purchases.

In July this year 3 per cent of apps worldwide were monetised through paid installs, and 4 per cent through in-app purchases.

Advertising continued to lead by a large margin, with 35 per cent of app-developing companies relying on it, it reported.

The need to view advertising may be seen by users as a more tolerable alternative than the requirement to pay.

This greatly simplifies the task of attracting customers and reduces marketing costs per installation.

At the same time, advertising income could well cover the company’s financial needs and bring tangible profits.

In an interview with Việt Nam News, Valentina Petrova, head of in-app partnerships, Asia, Yandex, said the mobile app market is growing in Việt Nam, demonstrated by an impressive revenue of $982.1 million in 2023.

“Thanks to the high rate of smartphone and internet usage in Việt Nam, mobile applications have now become an important part of people's lives here.”

The majority of app users in Việt Nam are quite young and tech-savvy with more than 60 per cent of respondents aged under 30 saying they are willing to try new technologies, she said.

“This makes Việt Nam an attractive mobile application market.

“Việt Nam is a promising market for advertisers.”

A report from Rakuten Viber said Vietnamese spend 2.32 hours a day on social media and messaging apps, one minute more than the average global user, indicating that approaching customers through apps is an effective way for companies and small traders.

“Local businesses can reach their audiences through messaging as 73 per cent of Vietnamese customers also prefer to interact with brands through chat,” Viber said.

Its Viber for Business solution is used by more than 20,000 brands world-wide, it said.

Viber for Business offers advertising solutions like native ads, branded stickers and lenses, messaging solutions including business messages and chatbots, and forthcoming business calls and an OTP solution.

In another development, Viber recorded a growing interest in local brand-user interactions in the first half of 2023.

Average daily ad impressions reached 6.4 million with Vietnamese brands using ads to enhance their visibility and attract new users.

There is a 63 per cent year-on-year growth in delivered business messages, with brands increasingly using this tool to send personal 1-2-1 messages to their existing clientele base who gave consent to receive brand notifications, Viber added. 

ICT giant CMC sees profit exceed 40 per cent of plan for H1

CMC Corporation, the second largest Information and communications (ICT) group in Việt Nam, announced 6-month revenue at VNĐ3.9 trillion (US$158.6 million), completing 90 per cent of the plan set out for H1.

Pre-tax profit reached VNĐ245 billion, completing 140 per cent of H1's plan.

CMC said that these were positive results in the context that Việt Nam's economic situation was facing many difficulties due to the economic recession and inflation problems.

On the stock market, CMC stock, coded CMG, is priced at VNĐ47,700 per share, an increase of more than 19 per cent compared to the last trading session last year (December 31, 2022).

In 2023, CMC targets revenue of VNĐ10.2 trillion and pre-tax profit of VNĐ484.6 billion, an increase of 22 per cent and 21 per cent respectively compared to the previous year's results. 

Ha Long-Mong Cai railway proposed

The northern province of Quang Ninh has just proposed to the Ministry of Transport to add a railway project connecting Ha Long and Mong Cai cities into the list of projects to be carried out by the Vietnam Railway Authority.

"This route can also be an extended section of the Lao Cai-Hanoi-Haiphong-Quang Ninh railway project," the province proposed. "It can also be connected to a Chinese rail route linking Fangcheng City and Dongxing City, contributing to the transportation of passengers and cargo between Vietnam, China, and the Asean countries."

In the railway planning for the 2021-2030 period which has been approved by the government, there are three railway projects in Quang Ninh, including the 129-km Yen Vien-Cai Lan route to be carried out by 2030, the 101-km Nam Dinh- Quang Ninh route after 2030, and the 150-km Ha Long-Mong Cai route after 2030.

Dragon Capital increases stake in Sacombank

Dragon Capital, a prominent investment group, has bolstered its position in Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) by acquiring an additional 3.5 million shares on October 19.
 
The move comes at a time when Sacombank's shares experienced a notable dip, reaching their lowest in over two months following a nearly 13 per cent decrease from their 18-month peak achieved in mid-September.

On October 19, several funds managed by Dragon Capital announced their combined purchase. Specifically, Amersham Industries Limited acquired 250,000 shares, KB Vietnam Focus Balanced Fund secured one million shares, and Vietnam Enterprise Investments Limited (VEIL) added another 2.25 million shares of Sacombank

Post these transactions, the foreign fund group's total ownership in Sacombank surged to 96.2 million shares, corresponding to a stake slightly over 5.1 per cent. This development has re-established Dragon Capital as a major shareholder of the bank as of October 23. It is worth noting that Dragon Capital had previously reduced its Sacombank holdings and exited its major shareholder position at the beginning of July.

After the aforementioned adjustment, Sacombank's shares rebounded and are currently trading around VND 30,000 (approximately $1.27) per share, reflecting a 33 per cent increase since the beginning of the year.

Indeed, Sacombank remains a compelling name, attracting significant foreign interest, especially from large investment funds. Alongside Dragon Capital, the Finnish Pyn Elite Fund holds a substantial quantity of these shares. In fact, Sacombank is the fund's largest investment, including 15.6 per cent of its portfolio as of October 10, equivalent to a value exceeding €112 million.

In its most recent letter to investors, Pyn Elite Fund projected that Sacombank's net profit might witness growth of up to 48 per cent on-year, nearing $316.5 million. In the first eight months of the year, Sacombank estimated a total net revenue of almost $738.5 million, an uptick of 9.3 per cent compared to the same period in 2022.

Additionally, its pre-tax consolidated profit reached $260.5 million, soaring by 56 per cent from the previous year, achieving 65 per cent of the assigned target by the shareholder meeting.

Former vice chancellor of Germany joins Vietravel Airlines

Philipp Rösler, the former German Vice-Chancellor, has been picked as independent member of the Board of Directors of Vietravel Airlines, where he provides strategic advice on the airline’s international expansion plan.

During the general meeting of Vietravel Airlines shareholders on October 23, Rösler and Doan Hai Dang were elected as members of the Board of Directors for a term from 2022 until 2027.

In his new role, Rösler will assist the airline in shaping its business strategy and serve as a liaison to connect the airline with investors in Europe and the Asia-Pacific region.

Currently, Rösler holds the position of chairman of the international advisory board of VinaCapital Ventures. The German of Vietnamese descent has held various key positions in the German political system, including vice-chancellor, federal minister of economics and technology, and minister of health.

Over 41,000 Tet train tickets sold in three days

Saigon Railway Transport JSC has reported that over 41,000 train tickets for the Lunar New Year holiday were snapped up within just three days after the sale was launched on October 20.

Currently, a substantial number of train tickets for various routes and dates during the Lunar New Year holiday period are available, accompanied by enticing promotions for passengers.

The railway sector is offering appealing discounts for social policy beneficiaries, labor union members, and customers holding membership cards. A 3% discount is applied to ticket prices for trains covering routes of more than 1,000 kilometers and departing from Saigon Railway Station on February 8, 2024 (the 29th day of the final lunar month).

Passengers who purchase round-trip tickets can enjoy a 5% price reduction. Students are eligible for discounts ranging from 10% to 20%, depending on their departure date.

Furthermore, Saigon Railway Transport JSC will extend its offer of discounts of up to 30% on 6,000 train tickets throughout November in an effort to boost passenger demand.

Outstanding real estate loans surge

Outstanding loans owed by real estate businesses had reached VND986.5 trillion as of August 31, up 27% against the same period last year.

A recent report from the Ministry of Construction, which used data from the State Bank of Vietnam (SBV), said that different segments of the real estate sector saw their outstanding loans soaring in August. These segments include housing development, office space, industrial park, restaurant and hotel, and home repair.

Housing development projects saw the most significant increase in outstanding loans in August. Their outstanding loans in August were nearly VND12,000 billion higher than in July.

But outstanding loans in certain projects related to resorts and ecotourism sites, and land acquisition fell by VND1,600 billion and VND500 billion, respectively.

Regarding corporate bonds issued by real estate firms, the Ministry of Finance reported that as of September 15, sales of real estate corporate bonds amounted to VND56,900 billion, or 46% of the total bonds issued.

In the year to August 31, 17 lots of bonds worth nearly VND16,500 billion had been issued to the public.

VND115,882 billion worth of bonds had been issued via 101 private placements, accounting for 87.6% of the total. Institutional investors bought 92% of the total bonds, while individual investors made up a mere 5.18%.

Vietnam’s GDP growth target seen unobtainable

Vietnam’s gross domestic product (GDP) growth may expand around 5% in 2023, lower than the 6.5% target, while the inflation rate may be curbed at 3.5-4%, said Prime Minister Pham Minh Chinh at the 6th session of the 15th National Assembly on October 23.

Vietnam achieved a GDP growth rate of 4.24% in the first nine months of the year while keeping the consumer price index (CPI) at 3.16%.

Public investment disbursement has met 51.38% of the annual target, 4.68 percentage points higher than in the same period last year.

Fresh foreign direct investment (FDI) approvals totaled US$16 billion, said the PM, adding state budget revenue has reached 75.5% of the year’s target.

Internationally, Vietnam’s national brand value has ascended to 32nd place among the top 100 global brands, demonstrating a rise in brand valuation to US$431 billion.

PM Chinh outlined the country’s strategic direction for the remainder of the year, emphasizing the importance of macroeconomic stability, controlling inflation, and maintaining key economic balances.

The Government’s plan also includes seizing opportunities in both domestic and international markets, particularly in the rest of the year, with a focus on stimulating production, business and job creation.

Market stability will be maintained, and measures will be taken to improve the living standards of workers and citizens, ensuring a stable supply of essential commodities like electricity and fuel.

For 2024, the prime minister set a GDP growth target between 6% and 6.5%. Other objectives include a per capita GDP of US$4,700-4,730, manufacturing and processing sectors contributing around 24.1% to the GDP, a CPI increase of 4-4.5%, and a labor productivity growth of 4.8-5.3%.

Central provinces woo visitors from Southeast Asia

Quang Nam Province, Danang City, and Thua Thien-Hue Province in central Vietnam are actively striving to attract tourists from Southeast Asian countries.

In Malaysia, a Vietnamese tourism promotion event took place in Kuala Lumpur on October 23. This event, jointly organized by Quang Nam, Danang, and Thua Thien-Hue, aimed to boost the regional tourism brand known as “Amazing Central Heritage” to showcase the region’s famous attractions.

This event was expected to revive inbound tourism which has been adversely affected by the Covid-19 pandemic. The event featured various activities to provide attendees with updated information on tourism and showcase new tourism products and services offered by local tour operators.

The event included film screenings and photo displays focusing on culture, tourism, and agricultural specialties in the three central localities.

During the event, the Malaysia-Vietnam Friendship Association and Vietnamese tourism promotion centers signed a memorandum to enhance cooperation and boost tourism.

In addition, local authorities intend to attract additional visitors from Singapore and other regional countries as they have plans to participate in ITB Asia, a prominent international travel show scheduled to be held at Marina Bay Sands in Singapore from October 25 to October 27.

Previously, the Danang Tourism Development Fund collaborated with the provincial Department of Tourism to organize a program showcasing the tourism image of Danang in Manila, the capital of the Philippines.

The event introduced the launch of a direct air route connecting the two cities, operated by Cebu Pacific Air. The service is set to commence on December 7, with three weekly flights on Tuesdays, Thursdays and Saturdays.

Cash flow pours into realty stocks

Vietnam’s stock market witnessed a positive winning trading session on October 24, particularly in the final moments of the session.

During the morning trading session, liquidity appeared to dwindle, causing the market to trade sluggishly. However, as the afternoon session progressed, there was a willingness to purchase at higher prices, particularly in the real estate and banking sectors, which positively impacted the overall market.

The market was buoyed by banking stocks, the king stock group, as they made a strong U-turn. Among them, the majority of stocks showed gains, with many experiencing significant increases. For instance, OCB rose by 4.84 percent, SSB by 4.03 percent, EIB by 3.1 percent, VIB by 2.49 percent, BID by 2.48 percent, TPB by 2.13 percent, VCB by 1.78 percent, MSB by 1.56 percent, and TCB by 1.46 percent.

Furthermore, the real estate stock sector also attracted investor attention and recorded sharp gains. Notably, CTD hit its daily trading limit, while DIG surged by 6.23 percent, DXG by 4.73 percent, IDC by 4.1 percent, SZC by 3.74 percent, NLG by 3.53 percent, HDC by 3.26 percent, KBC by 2.8 percent, CKG by 2.55 percent, ITA by 2.54 percent, NVL by 2.25 percent, PDR by 2.15 percent, SCR by 2.13 percent, HDG by 1.92 percent, KDH by 1.49 percent, and DXS by 1.52 percent.

Similarly, the securities stock group posted positive gains, with OGC jumping by 5.78 percent, ORS by 5.47 percent, VCI by 2.36 percent, VIX by 2.08 percent, HCM by 1.9 percent, VND by 1.8 percent, CTS by 1.69 percent, FTS by 1.75 percent, VDS by 1.73 percent, and SSI by 1.47 percent.

Additionally, the energy, retail, and manufacturing stock sectors also demonstrated positive trading activity. More specifically, in the manufacturing group, GVR recorded a 3.54 percent increase, DGC saw a 2.74 percent rise, SAB had a 1.92 percent gain, MSN increased by 1.36 percent, SBT edged up by 1.46 percent, ANV advanced by 1.66 percent, and PHR climbed by 2.56 percent. In the energy sector, POW experienced a 1.36 percent increase, while PGV, GAS, and PLX registered nearly 1 percent gains.

As the trading session concluded, the VN-Index increased by 12.37 points, or 1.13 percent, to reach 1,105.9 points, with 355 stocks advancing, 142 declining, and 68 maintaining their prices.

In Hanoi, the HNX-Index also recorded a gain, rising by 2.63 points, or 1.16 percent, to close at 228.89 points, with 111 stocks in the green, 60 in the red, and 57 holding steady.

Market liquidity remained relatively low, with the total trading value across the entire market at only VND12.1 trillion, marking a decline of nearly VND2 trillion compared to the previous session. Additionally, foreign investors resumed net selling activities on the HOSE, with a total of nearly VND461 billion.

Local companies honored for good employment policies

Sixty-four companies with the best policies for treating employees will receive awards from the agencies later this month.

The honoring ceremony will be held on the night of October 29 at the Hanoi Opera House, hosted by the Vietnam General Confederation of Labor, the Ministry of Labor, Invalids and Social Affairs (MOLISA), and the Vietnam Chamber of Commerce and Industry (VCCI), and supported by the Lao Dong (Labor) Newspaper.

Launched in 2014, the annual ceremony votes and ranks the companies that have persistently improved their working conditions and developed a healthy and sustainable environment to take care of employees.

In the 2023 edition, the companies will be praised for not only securing their operations and expanding their revenues in the difficult, challenging post-pandemic economy but also for taking care of their employees and providing them with sufficient mental and physical care.

The list of companies has been completed, Tran Thanh Hai, Vice President of the Vietnam General Confederation of Labor, said at the October 23 press conference.

"The number of enterprises applying for the ranking has increased from last year, so it's a positive change. Amid economic uncertainties and adversities, these enterprises have made efforts to maintain and improve their favorable policies for employees," the vice president said.

Since its inception in April, hundreds of companies have applied for the ranking. Through evaluation, the VCCI finalized and announced in mid-August the list of 64 best companies in treating their employees.

The companies' efforts have been a driving factor in Vietnam's socio-economic growth. The rankings prove that these companies have good labor policies and have created good working conditions for their employees, said Hai.

"What makes a good product is both the quality of the production line and the happiness of the workers," he said.

Hoang Quang Phong, Vice President of the VCCI, hailed the rankings as motivation and encouragement for enterprises to achieve better results in the future, create more jobs for Vietnamese people, and boost the country's socio-economic development.

Speaking at the press conference, Dinh Thi Hong Hanh, Director of the Human Resources Department of Tan De Sports Company, said that 2023 is a tough year for the garment and footwear industry.

"For years, we had only accepted large orders. Since Q4/2022, we have to take small orders, fulfill outsourcing orders, and even unprofitable orders. We want to secure jobs first, and then think about cost-cutting measures," she said.

Tan De Sports Company is also one of the 64 shortlisted companies. It has nine factories and employs 17,000 people.

High-tech agricultural farm launched in central Hanoi

A high-tech agricultural production farm was launched this week in Hanoi's Long Bien District to provide safe vegetables for the city's school canteens.

According to Nguyen Manh Ha, Chairman of the Long Bien District People's Committee, the project will be carried out on an area of more than two hectares in Giang Bien Ward.

"The aim of the farm is to set a new direction in producing safe vegetables and fruits with high economic efficiency, ensuring food hygiene and safety, and improving the health of the community," Ha said.

He added that Long Bien District has more than 1,100 hectares of agricultural and riparian land, accounting for 18.3% of the district's natural land area. In particular, the area of agricultural and riparian land under the jurisdiction of Giang Bien and Phuc Loi wards has great potential for agricultural development combined with eco-tourism and experiential tourism.

"However, this area is currently lying fallow. The district People's Committee has approved a plan to develop public agricultural and riparian land in some wards for agricultural production combined with ecotourism. The district authorities have encouraged businesses to build safe food chains (from production to processing to consumption of agricultural products) to improve the yield of these lands," Ha stressed.

Doan Van Tinh, Vice Chairman of Giang Bien Ward People's Committee, emphasized that the use of high technology in agricultural development is an inevitable trend for local economic development.

"The plan to apply high technology in agricultural production in Giang Bien Ward will not only lay the foundation for building closed agricultural value chains, but also apply high technology in the production, preservation, and trade of products, and create new ways for safe vegetable and fruit farming towards high economic efficiency, food hygiene and safety, and improve the health of the community," Tinh said.

He stressed that the move would also contribute to the development of the local agricultural economy, create a green, clean, and beautiful landscape, and provide jobs for local workers.

"Through the use of membrane house, net house, drip irrigation, sprinkler irrigation, and high-quality seeds, the project will improve land use value by growing vegetables and mushrooms," Tinh said.

He added that the farm's safe vegetable production adheres to the principles of not using pesticides, genetically modified seeds, or stimulants. The farm's fruit and vegetable production process will ensure compliance with  VietGAP (Good Agricultural Practices).

Standard Chartered maintains robust 2024 GDP growth forecast of 6.7% for Viet Nam

Standard Chartered Bank maintained robust 2024 GDP growth forecast of 6.7 percent for Viet Nam in its latest macro-economic updates about Viet Nam released on October 23.

The international lender has lowered the country's 2023 GDP growth to 5 percent from the previous 5.4 percent. The revised forecast would require growth of 7.0% in the fourth quarter of this year.

According to the bank, macro indicator shows a tentative improvement. Domestic recovery continues and is likely to strengthen further, with a robust retail sale.

Construction and accommodation sectors maintain strong growth while manufacturing has started to expand. 

External outlook is improving with the current account surplus rising to 3.5 percent of GDP in 2024 and from 2 percent in 2023.

Inflation forecast for 2023 is revised up to 3.4 percent from 2.8 percent previously.

The medium-term outlook remains promising given Viet Nam's economic openness and stability. To reinvigorate foreign direct investment inflows, Viet Nam needs to resume rapid GDP growth and develop its infrastructure, said Tim Leelahapan, Economist of Thailand and Viet Nam at Standard Chartered.

Firms hold chances to boost supporting industries amid FDI inflows

As Vietnam is emerging as a magnet for foreign businesses, domestic companies now have numerous opportunities to join global supply chains and develop supporting industries.

Among the 1,300 European businesses inquiring about the investment climate in Vietnam, up to 63% listed the country among the top 10 destinations for foreign direct investment (FDI) firms, the Sai Gon Giai phong (Liberated Saigon) daily reported.

Gabor Fluit, Chairman of the European Chamber of Commerce (EuroCham) in Vietnam, held that the country’s efforts to improve the investment environment have paid off as seen in the strong cuts of duration for handling administrative procedures and the application of online public administrative services in many localities, especially those housing many export processing and industrial zones like Ho Chi Minh City, Binh Duong, Dong Nai, and Quang Ninh.

Foreign investment registered during the first nine months of 2023 was estimated at 15.91 billion USD, the highest nine-month figure over the last five years, according to the Ministry of Planning and Investment.

A number of giant multinationals have also been present in Vietnam, including Apple, Qualcomm, Nike, Morgan Stanley, Intel, GE, ACORN International, General Dynamics, and Google.

Le Nguyen Duy Oanh, Deputy Director of the HCM City Centre for Supporting Industries Development, said the strong FDI influx into Vietnam also means rising demand for products of supporting industries in industrial supply chains. Therefore, domestic businesses should select supply chains to join so as to supply products of supporting industries and raise the value of their commodities.

However, companies in supporting industries are also encountering difficulties when demand in the market is switching to the products and components serving the artificial intelligence, high medical technology, and electronics industries.

Recommending businesses make changes when selecting partners to supply products for, Truong Thi Chi Binh, Vice Chairwoman of the Vietnam Association for Supporting Industries, noted Vietnamese companies are strong at the mechanical supporting industry, especially aluminum, bronze, and plastics products which are in demand in the US, Japan, and the Republic of Korea.

They should actively access foreign markets and partners, she suggested, adding that the Ministry of Industry and Trade should also order overseas trade counsellors to survey market demand and provide timely information to businesses.

Fluit said EU businesses have invested over 26 billion USD in about 2,250 projects in Vietnam. They have connected with local companies, and bilateral ties will become even stronger to form and expand global supply chains.

To better FDI attraction, he recommended the country strongly promote the legal environment’s transparency, upgrade transport infrastructure, relax visa and work permit requirements for foreign experts, encourage businesses to conduct digital transformation and green transition to overcome new technical barriers in the global market, including Europe.

Subbaramu Mysore Venkataramaiah, head of the R&D division at Bosch Vietnam, pointed out that tightened regulations on greenhouse gas emissions and the environment and increased awareness of climate change have boosted the automobile industry’s development of e-vehicles and clean energy solutions. The insufficiency of electronic chips has also led to car shortages and fuel production costs. Besides, the competition among suppliers at all levels and in all sectors is fierce.

All the factors require Vietnamese suppliers quickly conduct transition, make adaptation, and step up innovation to sustainably join global supply chains, he opined.

Coconut nectar drink exported to US for first time

A company in the Mekong Delta province of Tra Vinh on October 25 exported the first lot of a drink made from fresh coconut nectar to the US.

The lot, including nearly 20,000 250-ml bottles, was also the first exported by the Tra Vinh FARM Co. Ltd. (Sokfarm) to the US through an official channel.

Sokfarm CEO Pham Dinh Ngai said that the company owns a 20,000-hectar coconut growing area that meets standards of the US, Europe, Japan, and Canada.

It plans to ship from 20,000-40,000 bottles of coconut nectar drink to the US every month.

Tra Vinh currently ranks second in Vietnam in terms of coconut area, after Ben Tre. It is growing nearly 7 million coconut palms on over 26,000 hectares, with a total output of 370,000 tonnes a year.

Kuwait welcomes opening of first Vietnamese coffee shop Coffilia

Vietnamese coffee shop Coffilia officially opened at Al-Kout Beach Hotel in Fahaheel district of Ahmadi province in Kuwait on October 24, becoming the first Vietnamese branded coffee shop to make a presence in the Gulf country.

Upon addressing the opening ceremony, a representative of Minh Tien Group Joint Stock Company (Minh Tien Group) emphasised that the event has realised the company’s goal of introducing Vietnamese coffee products to coffee lovers in various countries globally, thereby elevating Vietnam’s image and its people to international friends.

For his part, Kuwaiti legal representative Luai Al-Qattan, who joined the Coffilia team to design the site, revealed that he has great faith in the company’s operations and the premium quality available to customers through the firm’s coffee.

With the circular economy model being applied by Minh Tien Group to coffee farming and production, he assessed that this will prove effective in the Kuwaiti market, especially in the context of climate change negatively impacting the global supply chain in many industries.

At the event, Vietnamese Ambassador to Kuwait Ngo Toan Thang expressed his joy at Coffilia's success, stating his anticipation at the prospect of seeing the Coffilia coffee shop obtain favourable business achievements in the near future.

The Vietnamese diplomat extended his thanks to the Vietnam Trade Office in Kuwait for their support in linking Vietnamese businesses to Kuwaiti traders, thereby helping local enterprises seize more business opportunities in the Middle Eastern nation.

Turkey reviews anti-dumping duty imposition on cored wire from Vietnam

The Turkish Ministry of Trade’s Directorate General of Imports (DGI) has launched an end-of-term review of the anti-dumping duty imposition on cored wire of base metal for electric arc-welding hailing or imported from Vietnam.

The Trade Remedies Authority of Vietnam (TRAV) under the Ministry of Industry and Trade said the commodity subject to the investigation is the cored wire of base metal for electric arc-welding coded HS 8311.20.

To protect the rights and interests of Vietnamese businesses, TRAV recommended relevant producers and exporters proactively register to participate in the investigation and cooperate fully and comprehensively with the DGI during the process.

Companies were also advised to thoroughly study the Turkish side’s announcement, comply with its requirements about information provision, and keep frequent contact with TRAV for timely assistance.

Digital transformation and data investment: the future trend

Three out of top ten Vietnamese domestic brands have demonstrated commendable business performance in 2022, closely linked to their extensive digital transformation activities, according to the Vietnam Customers Experience Excellence (CEE) report by KPMG for the year 2022.

Specifically, Viettel Group, for example, has announced that the total revenue reached 163 trillion VND, with pre-tax profit exceeding 43 trillion VND. These numbers represent a growth rate of 6% and 3% respectively compared to the previous year, marking the highest profit level for the group in the past five years.

The Phu Nhuan Jewelry Joint Stock Company (PNJ) achieved a net revenue of 33,876 billion VND in 2022, a substantial increase of 73% compared to the same period. Sacombank also reported a pre-tax profit of over 6.3 trillion VND, showing a significant increase of 142%.

Businesses in Vietnam and around the world in general are making strong investments in technology, including automation on data platforms, analytics, and artificial intelligence. These investments have two main objectives - to increase operational efficiency while reducing costs, and to enhance values and customers’ experiences.

Vietnam has set a target to achieve a contribution of 20% to the GDP from the digital economy by 2025, and 30% by 2030.

However, during the process of digital transformation, businesses are facing barriers such as the leadership's awareness and mindset towards digital transformation; negative attitudes of employees, group interests, fear of multitasking; or concerns about data loss and security, among others.

Such obstacles are evident in the cases of clients that are consulted by Syllog, a Singapore-based company that provides consulting services in digital transformation and technology implementation, from 2021 to 2023.

"The most important aspect of digital transformation for a company, in addition to creating a culture of utilising data and automating processes on a data platform, is to establish a foundation and save resources for the company to transition to the data analysis and artificial intelligence phase, enabled by a standardised data system" said Hanh Nguyen, co-founder of Syllog.

“When properly advised and implemented, digital transformation enables businesses to unlock their potential, optimise resources, and achieve sustainable development,” she added.

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