Vietnam's manufacturing sector returned to growth in August as some signs of recovery in demand supported renewed increases in both new orders and production, according to the S&P Global Việt Nam Manufacturing Purchasing Managers' Index™ (PMI).

The PMI moved back above the 50.0 mark for the first time in six months during August. At 50.5, the index was up from 48.7 in July and pointed to a marginal monthly improvement in business conditions in the sector.

Firms expanded their purchasing activity accordingly, but employment continued to fall marginally as firms were reluctant to take on extra staff given still fragile demand.

Renewed increases in prices were also recorded midway through the third quarter. Input costs rose for the first time in four months, while selling price inflation was signaled for the first time since March.

According to S&P Global, the nascent recovery in the health of the sector reflected tentative signs of demand improving.

Manufacturers recorded a first increase in new orders for six months, while new export business also rose following a five-month sequence of decline. Growth rates were modest, however, amid some reports of ongoing demand fragility.

Similarly, manufacturing production returned to growth in August, ending a five-month period of falling output. However, the rate of increase was only marginal.

Recoveries in output and new orders were most keenly felt in the investment goods category.

Firms responded to higher new orders and greater output requirements by expanding their purchasing activity at a solid pace. The rise was the first in six months and most pronounced since last September. In turn, stocks of purchases also increased, the second month running in which this has been the case.

The picture for employment was less positive, however, with row. That said, the pace of reduction was the weakest in this sequence and only marginal.

Ongoing reductions in employment reflected continued signs of spare capacity in the sector, with backlogs of work decreasing for the eighth consecutive month.

Firms also recorded a build-up of stocks of finished goods for the second month running amid some reports that weak demand had left finished products unsold.

August data pointed to a solid increase in input prices, thereby ending a three-month period of decline. A number of panelists linked higher input costs to rising oil prices, while increased food prices were also mentioned. In turn, firms also raised their own selling prices, albeit only slightly. The increase in charges was the first since March.

Suppliers' delivery times shortened for the eighth successive month as stocks at suppliers remained sufficient to deal with orders despite a pick-up in demand for inputs during August. The improvement in vendor performance was solid, albeit the least marked since May.

Tentative improvements in market demand helped to strengthen business confidence midway through the third quarter, with firms hoping for a continued recovery in the months ahead. Optimism in the 12-month outlook for production was the highest in five months, but still below the series average amid ongoing concerns around the strength of demand.

Andrew Harker, economics director at S&P Global Market Intelligence, said that the latest S&P Global Việt Nam Manufacturing PMI paints a more encouraging picture regarding the health of the sector than had been the case in recent months, with output, new orders, exports and purchasing all returning to growth.

Improvements were generally still quite muted, however, as demand conditions remained fragile. It is probably too early to say, therefore, that the sector is in full recovery mode.

Another key aspect from the latest survey was the end of the recent period of falling prices, with both input costs and selling charges up in August, often linked to higher oil prices, he said.

Foreign exchange rate forecast not to be under great pressure as in 2022
 
The foreign exchange rate has significantly fluctuated recently but experts forecast the rate in the remaining months of 2023 will not be under great pressure as in 2022.

The foreign exchange market in September and October 2022 was under huge pressure in the wake of global uncertainties. In this context, the State Bank of Vietnam (SBV) had to increase the selling price of the US dollar six times within just two months (from September to November 2022), with a total increase of VND1,720, equivalent to 7.4%.

This year, the dollar has recently also skyrocketed against the Vietnamese dong to exceed the threshold of VND24,000 per dollar. Vietcombank on September 5 listed the selling rate at VND24,240 while the rate at BIDV was VND24,230.

According to Tran Ngoc Bau, CEO of financial data provider WiGroup, the recent exchange rate shock is due to the rising dollar need of firms to pay some contracts. It is not because of a capital withdrawal out of Vietnam.

In addition, psychological factors also contribute to the recent volatility of the exchange rate as people are concerned that the scenario of September and October of 2022 will repeat.

However, Bau said the context in 2022 and this year is quite different.

Bau explained the current context is completely different from the end of 2022 when the dollar was actually withdrawn out of Vietnam due to fear of a chain breakdown. Currently, the Vietnamese banking system is much more stable and there is no withdrawal of capital.

Moreover, the current account balance is relatively strong, while it is forecast the overall balance this year will also have a slight surplus. Meanwhile, at the end of 2022, the current account was relatively weak as service exports didn’t recover and export surplus was weak, Bau said.

Besides, Bau said, regarding the interest rate difference between Vietnam and the US, the context is also completely different when last year the Fed raised interest rates strongly while under the current period, the Fed is going to the final stage of the interest rate hike cycle.

Inflation has also shown signs of increasing recently, but according to Bau, there is no basis for the indicator to exceed 3.5% this year. This factor will provide good support for the SBV to continue its policy of supporting the economy.

From the analysis of exchange rates and inflation, Bau believes the SBV will not increase interest rate in the near future, but the interest rate level from now until the end of the year will be flat or slightly decrease, not falling sharply as in recent times.

There is not much room left to reduce interest rates so the SBV can only cut the rate by one or two more times. Instead of using the interest rate tool, the SBV will focus on opening up the money supply and credit, applying many supportive policies for the banking industry, and being soft in regulation to expand money supply and credit, Bau predicted.

Hanoi supports businesses to exploit new markets

Hanoi is striving to achieve the growth target of 7.5% in industrial production and 7% growth in Gross Regional Domestic Product (GRDP) this year.

To this end, the municipal People’s Committee will focus on assisting businesses in expanding markets. Associations and enterprises will receive support to exploit traditional markets and explore potential markets such as Northern Europe, Eastern Europe, West Asia, South Asia, Africa and Latin America.

The city will also promote the dissemination of information about Free Trade Agreements so that businesses can understand the challenges and opportunities to enhance the expansion of production and investment, chain links, markets, and exports. The effectiveness of trade promotion activities will be improved along with promoting consumption in the domestic market, reducing inventory and connecting domestic enterprises with foreign businesses to secure orders through fairs and exhibitions.

Hanoi will continue to provide support for domestic enterprises participating in the supply chains of FDI enterprises and large global enterprises. Businesses will be assisted in digital transformation, technology application and transfer, building smart factory models and green production as well as customs clearance procedures at border gates.

The city will create favourable conditions for businesses to access credit capital sources with reasonable interest rates so that they can maintain and develop production and business.

It will continue to improve the business investment environment to attract investment in the fields of high-tech and supporting industries as well as foreign investment which is associated with sustainable development goals. Priority will be given to qualified projects with added value and competitive products, focusing on high-tech and supporting industries that use modern and environmentally-friendly technologies.

Regarding the development of production and business infrastructure, Hanoi will review and remove obstacles related to industrial clusters, managing to start construction of 20 industrial clusters in 2023.

It will solve difficulties for businesses in terms of land, capital, market, investment and logistics.

The city will speed up the implementation of projects, including a project to support small and medium-sized enterprises in the 2021-2025 period and a project to assist startups in the city in the 2019-2025 period and a plan to support small and medium-sized enterprises in digital transformation in the 2021-2025 period.

To attract more investors, the Hanoi administration will promote administrative reform, managing to reduce at least 20% of internal administrative procedures and at least 20% of compliance costs relating to business activities.

VinFast to attend global EV show in Canada

VinFast, Vietnam’s first electric vehicle (EV) maker, has announced it will attend the 2023 Fully Charged Live show, held for the first time in Canada from September 8-10.

At the event, VinFast will display its two key electric car models in the Canadian market, the VF 8 and VF 9. Frequent participation in major exhibitions in Canada strongly affirms VinFast's presence in one of the key global markets.

Fully Charged Live is a series of EV and sustainability showcases organised in Australia, Europe, the UK and North America since 2018. The 2023 edition will be the first of the series ever held in Canada. The event will take place at the Vancouver Convention Centre, featuring Electric Mobility providers, vehicles from across the industry and companies with a green focus.

Currently, the VF 8 is on sale across Canada starting at 53,600 CAD (39,277 USD) and features an industry leading warranty which covers each vehicle for 10 years/200,000 km and the high-voltage battery for 10 years and unlimited km. The VF 8 offers luxury styling and a range up to 425km. The large, three-row VF 9, starting at 103,750 CAD is now open for reservations.

Founded in 2017, VinFast – a member of Vingroup JSC – is Vietnam’s leading automotive manufacturer committed to its mission of creating a green future for everyone. It manufactures and delivers a portfolio of electric SUVs, e-scooters and e-buses across Vietnam, the US, and, soon, Europe

On August 15, VinFast officialy listed on Nasdaq Global Select Market under the ticker symbol “VFS”.

17th int'l travel expo in full swing in HCM City

The 17th International Travel Expo Ho Chi Minh City 2023 (ITE HCMC 2023) opened in the southern metropolis on September 7, attracting over 400 domestic and international companies.

Themed “Connectivity, Growth, Sustainability”, the three-day expo is also seeing 199 buyers from 42 countries and territories which are Vietnam’s key and potential inbound tourism markets, including Japan, the Republic of Korea, China, Poland, the US, France, Malaysia, and New Zealand.

The organiser is expecting 25,000 visitors and more than 9,000 networking sessions to take place between the exhibitors and buyers.

Speaking at the opening ceremony, Phan Van Mai, Chairman of the HCM City People's Committee, stated that tourism in Vietnam and in the city has seen positive signs of recovery and development. In the first eight months, the southern economic hub welcomed nearly 25 million tourists. Among them, there were nearly 3 million foreigners, more than doubling that of the same period last year. The eight-month tourism revenue, meanwhile, exceeded 100 trillion VND (4.15 billion USD).

He said ITE HCMC is one of the events driving the growth of the international tourist markets to Vietnam, increasing the flow of tourists, and boosting tourism revenue through trade connections domestically and internationally.

Vietjet Air reports profit after audit

Budget carrier Vietjet Air has announced its audited biannual financial statements in 2023, with air transport revenue and consolidated revenue hitting 25.1 trillion VND (1.03 billion USD) and 29.5 trillion VND (1.21 billion USD), up 69% and 85% year-on-year, respectively.  

Ancillary revenue maintained a high growth rate, reaching 9 trillion VND, a two-fold increase from the same period last year, and accounting for 40% of the total revenue.

Separate and consolidated after-tax profits reached 48 billion VND and 137 billion VND, respectively, lower than the compiled financial statements due to higher marketing and advertising expenses for new international routes and deferred revenue of a financial revenue.

As of June 30, Vietjet's total assets reached over 71.2 trillion VND, while the debt/equity ratio and the liquidity ratio were 1.2 and 1.5, respectively, which were all within good range for the aviation industry.

By the end of the second quarter, Vietjet’s cash balance and cash equivalents reached 2.16 trillion VND. The airline paid a total of almost 2.8 trillion VND of direct and indirect taxes and fees to the State budget in the first six months of 2023.

Thanks to its sustainable business strategy, focusing on promoting the domestic market and pioneering a strong expansion of its international network to India, Australia, Kazakhstan, and Indonesia, Vietjet continued to record positive business performance in the reviewed period.

In the second quarter, Vietjet opened 11 new international routes to Australia, Indonesia, and India, lifting the total number of foreign routes to 75.

Vietjet was a pioneer in operating flights to the Indian market with seven routes connecting Hanoi and Ho Chi Minh City to Mumbai, Delhi, Ahmedabad, and Kochi.

Starting from mid-April 2023, the airline has opened three direct routes from HCM City to Australia's largest cities - Sydney, Melbourne, and Brisbane.

Vietjet has so far safely operated 65,900 flights and transported over 12.1 million passengers, including 3.5 million international passengers, up 26% and 30%, respectively, compared to the same period last year.

The total cargo volume transported by the airline reached 33,000 tonnes, surging by nearly 40% year-on-year./.

Hurdles remain in aquatic export: VASEP

Vietnam’s aquatic export recovery has yet to meet expectations although the negative growth rate has been eased, prompting businesses to further explore small markets in order to raise their sales.

The Vietnam Association of Seafood Exporters and Producers (VASEP) reported that the country shipped abroad some 846 million USD worth of aquatic products in August, much higher than that in previous months, pushing the eight-month revenue to nearly 5.8 billion USD.

However, the export market is unpredictable this year, the association said, elaborating that after the value reached 808 million USD in May, it got bogged down in the two subsequent months, which was unusual as compared with previous years.

VASEP’s Communications Director Le Hang explained that the global economic slowdown and high inventories by enterprises have resulted in demand contraction and price competition.

Given export difficulties in such major markets as the US and China, tra fish exporters are pinning their hope on smaller ones like Germany, New Zealand, and Sweden, which saw year-on-year increases of 25%, 17%, and 25% in revenue, respectively.

For shrimp exports, although rosy signs were seen in the US market, the stagnation has remained in the markets of Japan and the Republic of Korea (RoK) since March.

Notably, Vietnam’s tuna exports to the RoK rose impressively, exceeding 7 million USD in the first seven months of this year, a 2.5-fold increase from the same period last year.

Vietnam's canned tuna accounts for nearly 77% of the RoK's total import of this product.

VASEP forecast that the country’s aquatic export revenue will top 9 billion USD this year.

Vietnam forks out less for imported meat

Vietnam imported more than 60,800 tonnes of meat and meat products worth 124.85 million USD in July, a year-on-year fall of 1.1% and 11.2%, respectively, according to the Agency of Foreign Trade under the Ministry of Industry and Trade.

During January – July, Vietnam splashed out over 723 million USD on purchasing 356,400 tonnes of foreign meat and meat products, down 8.4% in value but up 1.6% in volume as compared to the same time last year.

In July, Vietnam’s imports from India, Brazil and the Republic of Korea fell while those from Russia, the US and Poland saw an increase as compared to the same month in 2022.

The main types of imported meat and meat products included poultry and offal, fresh chilled or frozen beef, and fresh chilled or frozen pork, among others.

Imports of poultry, buffalo meat and beef tended to decline, while those of pork and offal of pigs, buffaloes and cows increased year-on-year.

EV charging stations enticing for investors

As electric vehicles become more popular, developing charging stations and equipment is a promising area for investment.

Chinese battery firm Gotion last month invested $150 million in Vietnamese electric vehicle (EV) manufacturer VinFast by acquiring 15 million ordinary shares, representing 0.7 per cent of this company’s total equity.

Gotion is a collaborative partner with VinES Energy Solutions Corporation, an energy solutions provider under Vingroup, in a joint venture to manufacture lithium batteries in the Vung Ang Economic Zone in the central province of Ha Tinh, with the project representing a substantial investment of $275 million.

VinES holds a 49 per cent stake in the venture, while Gotion embraces the remainder. The venture’s primary objective is to develop and produce rechargeable batteries used in EVs and energy storage systems.

“In addition to battery manufacturing, charging stations are also a new potential area right now,” said Vu Tan Cong, deputy director general at Vietnam Automobile Industry and Trading Business Consultants.

In Vietnam, only VinFast and EVIDA are substantially providing electric vehicle battery charging station services.

VinFast is developing charging stations with about 150,000 charge ports nationwide, with a cost of 13 US cents per kWh, while EVIDA is developing public charging stations with a unit price of 38 cents per kWh, adding the activation fee of 20-84 US cents.

“VinFast is currently making up for the losses of charging stations and will gradually increase prices in the near future,” Cong said. “Assuming the charging fee is 34 US cents per kWh, if each station charges 100 cars a day, they can gain $1,000 per day and over $30,000 per month.”

Top enterprises such as ABB and Siemens have expressed their intention to expand the electric charging station business market in Vietnam.

In February, ABB e-mobility supported Audi on the roll-out of its first electric car for the Vietnamese market. ABB’s diverse e-mobility solutions support varying EV charging requirements of customers, which represents the first step in the development of a comprehensive charging network from ABB.

“Vietnam will be one of the countries that ABB E-mobility will support in growing its electric vehicle charging infrastructure. We will focus on how to support the e-mobility market in Vietnam through ABB E-mobility initiatives, such as offering digital solutions for charging infrastructure to ensure consumers have a seamless charging experience,” said Wee Jin Lee, Asia-Pacific regional leader of ABB E-mobility.

Siemens, meanwhile, will offer Vietnamese customers a range of chargers that are smart and flexible. These solutions are deployable in a wide spectrum of use cases for EV charging, such as residential, workplaces, commercial malls, industrial fleets, gas stations, and highway stopovers.

Arjun Raju, head of E-Mobility for Siemens in Asia-Pacific, said, “Through the partnership with EVS signed in April, Siemens is introducing its state-of-the-art e-mobility solutions supporting the roll-out of more EV charging infrastructure in Vietnam, which is essential to growing the adoption of zero-emissions EVs in the country.”

Experts said that the EV charging station networks should be invested in early before expecting the EV’s popularity. The investments in the development of the EV charging station network can be by state-owned, private, and foreign-invested companies.

In line with the country’s action programme for the transition to green energy and mitigation of CO2 and methane in the transport industry, automobiles powered by conventional engines are to be phased out by 2050. By 2040, the manufacturing and importing of motor vehicles equipped with traditional engines will be limited.

BMI Research has predicted that Vietnam’s EV sales in 2023 will double compared to 2022, to about 18,000 units, and sales growth will be over 25 per cent annually over the next 10 years, equivalent to 65,000 units per year.

The Vietnam Automobile Manufacturers Association predicts that the number of EVs in Vietnam will reach about one million units by 2030 and increase to 3.5 million units by 2040.

However, in the view of Cong, the current support and incentive policies on EVs are not yet strong enough to encourage people to use them.

Vietnam emerges as growth engine with focus on higher quality FDI

Vietnam’s strategic shift to ‘higher quality’ foreign direct investment (FDI) pushes Vietnam ahead of other growing Southeast Asian economies.

According to a joint report ‘Vietnam: A Global Engine of Growth’ released by Golden Gate Ventures and Boston Consulting Group on September 7, there is an expected increase in trade for ASEAN of $1 trillion by 2031, with China, Japan and South Korea, the EU and the US being some of the largest contributors. Within ASEAN, Vietnam will take centre stage in under a decade, as the country is already leading the pack in GDP growth.

The report points out that Vietnam’s emergence as a frontrunner in global high-tech manufacturing amid escalating geopolitics between China and the West has also buoyed the market’s performance in recent years. With the continued uncertainty between the West and China, Vietnam has emerged as a hotspot for FDI especially for the high-tech manufacturing sector, with Asia Pacific nations as some of its major contributors.

Vietnam’s FDI disbursement has been accelerating at a steady compound annual growth rate of 6.4 per cent from 2015 to 2022 and is set to continue, on the back of the Vietnamese government’s administrative report, legal and tax incentives.

Since 2020, Apple, Foxconn, Google, Hyundai, Intel, LG Electronics and Samsung are some of the global behemoths that have set up new manufacturing facilities in Vietnam, presumably to de-risk their reliance on China.

For the past five years, the world has watched Vietnam’s growth closely, comparing its trajectory to other ASEAN markets like Indonesia. In a strategic move, the Vietnamese government has pivoted its economic engine from ‘high speed’ to ‘high quality’: de-emphasising low-cost, labour-intensive industries to focus on innovation and building its talent pipeline as it lays the groundwork for building its digital, green tech and high-tech industries.

If this momentum keeps up, Vietnam is well on its way to becoming a global tech powerhouse, following in China’s footsteps of over a decade ago.

The Vietnamese government has highlighted several key factors that define ‘high quality FDI’, namely, value-added investments to its people, including education, research and development and supply chain linkages; encouraging advanced, new high-tech and clean-tech enterprises; and businesses that drive environmental impact by improving standards and technical regulations in line with regional and global standards.

“The move from drawing ‘any and all FDI’ to being a magnet for ‘high quality FDI’ is perhaps the nation’s most strategic one to-date, helping to break the country out of the ‘emerging market’ status to a global growth engine.

This move is yet another key inflection point in Vietnam’s story as a growing economic powerhouse and sets the tone of the nation’s next golden decade of growth,” said Vinnie Lauria, founding partner for Golden Gate Ventures.

A third contributing factor to the ‘perfect confluence’ of events driving Vietnam’s growth is the series of recent regulatory reforms that have created a more conducive environment for businesses in Vietnam.

Globally, Vietnam is ranked 70th out of 190 countries for ease of doing business, and 7th out of 78 countries as the best country to start a business, ahead of the likes of the Philippines and the US.

Vietnam enjoys a strategic geographic location where important maritime and air routes converge, serving as an indispensable link into the global supply chain. This positioning is helped by the country’s economic, trade and investment relationships with 224 countries and territories, as well as its sizeable and talented workforce.

“While Vietnam’s growth story may share a few similarities with other fast-growing economies like Indonesia and China, the Vietnam context is highly unique and interesting because the socioeconomic environment is vastly different, the market has its unique risks and opportunities, and the country’s growth strategy is much more sophisticated and orchestrated than before,” said Il-Dong Kwon, managing director and partner, head of Boston Consulting Group Vietnam.

Apple relocates 11 manufacturing units to Vietnam

Apple has finalised the relocation of 11 of its audio device production facilities to Vietnam, marking a significant shift in the company's global supply chain strategy.
 
The American tech giant's vote of confidence in the Vietnamese manufacturing sector was discussed by Nguyen Thang Vuong from the Europe-America Market Department of the Ministry of Industry and Trade (MoIT) during an online forum on Vietnam's role in the global supply chain on September 6.

“Meanwhile, Intel has initiated the expansion of its Phase 2 chip verification plant in Ho Chi Minh City, involving an investment amounting to a staggering $4 billion,” said Vuong.

According to Vuong, a shift in the global supply chain has become increasingly evident. For instance, besides the recent strategic moves and multi-billion dollar commitments from Apple and Intel, Danish conglomerate Lego is investing in a factory in the southern province of Binh Duong with an outlay of $1 billion.

“Several prominent American corporations, such as Boeing, Google, and Walmart, have announced plans to extend their supplier networks and manufacturing bases in Vietnam following extensive research into the local investment environment,” he added.

Particularly noteworthy is the colossal shift by Samsung in relocating its entire mobile phone production line predominantly to Vietnam and India. Remarkably, 60 per cent of Samsung's global smartphone output is now manufactured in Vietnam.

This migration of manufacturing groups to Vietnam offers indigenous businesses enhanced access to Western markets and an influx of foreign direct investment (FDI), especially from Northeast Asia. However, these developments also bring formidable challenges for Vietnamese enterprises seeking to integrate into the expansive supply chains of these global juggernauts.

In an interview with local newspaper Tien Phong, Do Thi Thuy Huong, vice-chairwoman of the Vietnam Supporting Industries Association (VASI), highlighted that alongside Apple’s relocation, major conglomerates such as Foxconn, Luxshare, Pegatron, and Wistron are also expanding their existing manufacturing bases in Vietnam.

“The rapid influx of foreign capital, particularly in the electronics sector, is evident. Samsung’s investment in the largest research and development centre in Southeast Asia, valued at $220 million in Hanoi, serves as a testament. Another key player, Hansol Electronics from South Korea, recently secured investment permission for two projects in the southern province of Dong Nai, amounting to $100 million.”

To stay ahead and cater to these industry giants, VASI asserts that local governments need to formulate stronger policies to ensure domestic businesses possess the capability to assimilate technologies and compete sustainably in the market.

A prime focus should be on discerning, high-quality technologies that align with the existing technical prowess of domestic manufacturing and assembly groups. Crucially, any technology introduced should be environmentally conscious and promote the inclusion of Vietnamese suppliers within a stipulated timeframe.

Ngo Khai Hoan, deputy director of the Industrial Department under the MoIT, expressed that while Vietnam had previously capitalised on its inexpensive labour force, rising labour costs are now diminishing this advantage, especially when compared to nations like India, the Philippines, and Cambodia.

“Understanding the potential of domestic supporting industries is vital for attracting FDI. In light of this, the Industrial Department plans to foster initiatives that include policy development, capacity-building for local enterprises, and facilitating connections between domestic businesses and multinational corporations like Samsung and Toyota,” said Hoan.

Auditor doubts HAG’s financial viability

An auditing firm has cast doubt on Hoang Anh Gia Lai JSC’s (HAG) ability to operate as a going concern, citing its accumulated losses of nearly VND3 trillion as of the end of June this year.

In HAG’s reviewed semi-annual financial statements, Ernst & Young Vietnam put the company’s accumulated losses at VND2.96 trillion, coupled with short-term debt exceeding short-term assets by over VND2 trillion as of June 30.

These findings have raised significant questions about HAG’s ability to sustain its operations.

The report also indicated a 5% reduction in post-tax profit compared to HAG’s self-reported figures.

Despite a 55% increase in revenue, the company’s post-tax profit declined by 27.3% to VND385 billion. Ernst & Young’s audit led to an additional adjustment, reducing the reported profit by VND19 billion.

The fruit sector was HAG’s most profitable segment, generating gross profit of VND488 billion, constituting 77.7% of the company’s total gross profit for the period.

HAG managed to reduce its financial costs by half, primarily due to the absence of long-term financial investment provisions, but interest expenses surged by VND100 billion compared to the same period last year.

HAG’s total outstanding debt increased by VND1.09 trillion versus the beginning of the year, reaching VND15.69 trillion by the end of the second quarter.

The firm’s HAG shares inched up 0.22% to close at VND9,200 per share today, September 5, with a matching volume of around 14.7 million shares.

VNR proposes upgrading two railway stations

Vietnam Railways (VNR) has put forth a VND445-billion project to upgrade two railway stations, Song Than in Binh Duong Province in the south of the country and Cao Xa in Hai Duong Province in the north, to facilitate international cargo transport.

In a recent proposal sent to the Ministry of Transport, VNR suggested allocating VND150 billion for the upgrade of Song Than station and VND295 billion for the renovation of Cao Xa station.

According to VNR, infrastructure at Song Than railway station, including the railway itself, warehouse, cargo yard, and the water drainage system, is deteriorating. Its poor conditions have led to an inability to fulfill the cargo transportation requirements of the region.

As the most crucial cargo railway station in the southern region, Song Than serves as a pivotal hub for cargo reception and distribution for all southern provinces. It is set to become one of the six primary international multimodal transport terminals, facilitating the import and export of goods between Vietnam and China.

To support international freight services and multimodal transport operations, VNR has also suggested developing two new cargo yards on over 9,000 square meters of land at Song Than. This move would integrate seamlessly with the logistic center and bonded warehouse situated within the Song Than Industrial Park.

VNR also plans to establish a maintenance service center for container trucks, facilities for handling refrigerated cargo, and other auxiliary facilities.

For Cao Xa railway station, which is an important link on the Hanoi-Haiphong railway section, VNR is looking to introduce a new cargo loading track, upgrade management and customs offices, and expand the warehouse and cargo yard capacities to meet the requirements of international freight services.

Flash sale of internationally famous brands to be held in HCMC

From September 8 to 10, a large-scale flash sale of internationally famous brands such as Gucci, Dior, and Chanel will be held for the first time in Ho Chi Minh City.

This afternoon, the Ho Chi Minh City Department of Industry and Trade held a press conference to inform about the plan of the flash sale in Ho Chi Minh City in 2023 to connect supply and demand for consumers and tourists. This is an opportunity to shop for branded goods at preferential prices ranging from 5 percent to 90 percent.

Accordingly, the flash sale will take place at Tan Son Nhat Pavillon Hotel at 202 Hoang Van Thu Street in Phu Nhuan District from September 8 to 10. The products are quite diverse including cosmetics and clothes of many famous brands.

The program belongs to a series of focused promotional events taking place in Ho Chi Minh City to make the city become a modern shopping center, attracting domestic and regional tourists.

Deputy Director of the Ho Chi Minh City Department of Industry and Trade Nguyen Nguyen Phuong said that from September 7 to 9, the International Tourism Fair of Ho Chi Minh City 2023 (ITE HCMC) will be held. This flash sale is a highlight to attract potential customers to ITE HCMC to have more shopping destinations.

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