Australian plums will soon be on shelves in Vietnam under the two-way agricultural market access agreement between the two countries that brings Australian plums to Vietnam and Vietnamese passion fruit to Australia, according to the Australian Government.

Australia’s agriculture, fisheries and forestry exports to Vietnam reached 3.7 billion AUD (2.5 billion USD) during 2023-2024, with growing trade for stone fruit to further solidify the relationship with the Southeast Asian country, Australia’s sixth largest export market.

The agreement supports the Vietnamese agricultural industry’s target of becoming a 100-billion AUD sector, and the Australian horticultural sector’s 20-billion AUD goal by 2030.

Negotiations are well underway for the next pairing of Vietnamese pomelos and Australian blueberries.

Australian Minister for Agriculture, Fisheries and Forestry Julie Collins described the new market access as a significant milestone for the stone fruit industry, and the Vietnam – Australia trade ties, saying accelerating mutual market access reflects the strong relationship between the two countries, and serves as a driving force to support the Australian agricultural sector to capitalise on export opportunities.

The Australian government is focusing on opening doors for the sector, and this is a positive step in achieving the goal, providing another key market for trade diversification, she added.

Meanwhile, Australian Minister for Trade and Tourism Senator Don Farrell affirmed that bolstering Australia’s trade with Southeast Asia, including Vietnam, is a top priority of the Australian government, stating stronger trade with Vietnam means more jobs, and better wages for workers in the horticulture industry.

Passion fruit has become the fifth fruit of Vietnam to be officially exported to Australia, following mango, longan, lychee, and dragon fruit. Currently, the fruit is available in over 60 countries and territories./.

Increasing presence of Vietnamese goods, traders in RoK benefits both sides: minister

Vietnamese Ambassador to the Republic of Korea (RoK) Vu Ho joined the RoK’s Minister of Small- and Medium-sized Enterprises (SMEs) and Startups Oh Young-joo and German Ambassador Wilfried Schmidt in a visit to Kyungdong, a traditional market in downtown Seoul, on September 13.

Kyungdong is the largest general and herbal medicine market in the RoK. Many Vietnamese people are also doing business here.

During the tour, held one day ahead of the Chuseok (mid-autumn) holiday – the largest festival in the RoK, Minister Oh introduced the traditional market model of her country and events held during the holiday.

She said that this year, the national consumption festival, called the September Donghaeng Festival, is held abroad for the first time to introduce outstanding products of Korean SMEs. It opened in Hanoi in late August.

The official expressed her hope that cooperation efforts by Vietnam and Germany, which are important economic partners of the RoK, will help promote economic development in the three countries in the future.

The RoK is stepping up the export of Made-in-Korea products to foreign markets, including Vietnam.

Oh told the Vietnam News Agency that the increasing presence of Vietnamese goods in the RoK as well as Vietnamese traders in local traditional markets is good for both sides. Therefore, authorities of the RoK are working hard to promote this.

The Government of the RoK is also actively coordinating to handle procedures so that livestock products from Vietnam can enter its market, she noted, adding that the two sides recently completed procedures for importing Vietnamese pomelo.

However, the import of seafood, livestock, vegetables, and fruit needs to comply with stringent quarantine regulations, so policy cooperation is necessary for more quality products of Vietnam to access the Korean market, the minister said./.

Weak liquidity hampers stock market growth

The stock market continued to experience a quiet trading week, as investors remained cautious ahead of key macro-economic events.

One major factor influencing this sentiment is the upcoming US Federal Reserve (Fed) interest rate meeting, scheduled for mid week, where the first rate cut of the year is expected.The market is also anticipating the State Bank of Việt Nam's response following any Fed adjustment.

In addition, Typhoon Yagi, the most significant storm in three decades, severely disrupted business activities in northern Việt Nam.

Over the past week, the VN-Index continued its downward trend with low liquidity. The worst day was last Tuesday (September 10), when the VN-Index dropped by 12.5 points, followed by three sessions of sideways trading within a narrow range.

By the end of trading on Friday, the VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) closed at 1,251.71 points, while the HNX-Index on the Hà Nội Stock Exchange dropped to 232.42 points.

For the week, both indices posted losses, with the VN-Index down 1.75 per cent and the HNX-Index falling by 0.95 per cent.

Liquidity on both exchanges was higher compared to the post-holiday trading week (due to a full five trading sessions instead of three), but the average transaction value per session across all three exchanges dropped by 21.29 per cent. The value of matched orders on HoSE during the last two sessions of the week fell below VNĐ10 trillion, marking the lowest level since 30 October 2023.

Foreign investors continued their net selling trend, with VNĐ1.12 trillion in net sales on HoSE, mainly targeting MSN (VNĐ316.83 billion), HPG (VNĐ309.95 billion), and VPB (VNĐ249.19 billion).

However, head of macro and market strategy at VNDIRECT Securities, Đinh Quang Hinh, remains optimistic about the outlook of Việt Nam's stock market in the remainder of the year.

He sees the VN-Index surpassing the 1,300-point mark as feasible, supported by several factors. The Fed will probably cut interest rates by 0.75 percentage points by year-end, while lower inflation and exchange rate pressures provide room for the State Bank of Việt Nam to focus on economic growth, increase money supply and maintain low interest rates. Additionally, the earnings of listed companies continue to improve and progress is expected on market upgrades.

Hinh also observed that historically, market peaks occur during periods of active trading, while market bottoms tend to form when liquidity is low.

Thus, he believes that the VN-Index is currently accumulating for a year-end rally, and investors should take advantage of this period to increase their stock holdings around the 1,250-point support level. He suggests focusing on sectors with strong growth potential, such as banking, securities, export-related industries (including textiles, seafood, and wood) and industrial real estate.

According to SHS, in the short term, the VN-Index is showing a negative trend, trading below its 20-day moving average, which is in the range of 1,265-1,270 points.

The VN-Index continues to face pressure as it tests the 1,250-point level, which is both the highest point of 2023 and a support range for medium-term accumulation. This level is considered reasonable given the market's growth prospects, with expectations of gradual market differentiation, potentially opening up opportunities for reasonable accumulation based on corporate growth prospects and Q3 2024 earnings results. However, current trading activity has not yet shown a significant return of short-term capital flows, according to SHS.

SHS expects that this week, the VN-Index may continue to face downward pressure towards the 1,250-point level, with a potential recovery to test the nearest resistance around 1,265 points. For short-term trading, investors should wait for the VN-Index to break out of the corrective trend that has persisted since August 29. 

Eco-industrial parks vital to achieving net zero emission target by 2050

The development of eco-industrial parks (eco-IPs) is an effective solution to lower emissions enough to meet the net zero target by 2050 in Việt Nam. However, there are still many obstacles, especially in terms of mechanisms.

The rapid development of industrial parks in recent times has put great pressure on the living environment of residents, according to Vương Thị Minh Hiếu, Deputy Director General of the Department of Economic Zone Management (DEZM) under the Ministry of Planning and Investment (MPI).

Up to 13 per cent of operating IPs have not built wastewater treatment plants, threatening the health of the surrounding communities, she noted.

Hiếu held that sustainable development is no longer a slogan, but has become an inevitable trend that helps enterprises determine their vision and strategic business orientation, thus many localities and IP infrastructure investors consider forming eco-IPs an urgent need to create competitive advantages.

Furthermore, the development of eco-industrial parks and green industrial parks has also become a mandatory requirement to meet green consumption needs and fulfill the commitment at the 26th United Nations Climate Change Conference (COP26) to achieve the goal of net zero emissions by 2050.

By 2030, the country aims for 40-50 per cent of localities to convert existing IPs into eco-IPs and 8-10 per cent of localities have orientations to build eco-IPs right in their plan making.

The Swiss Government has pledged to continue working with the United Nations Industrial Development Organisation (UNIDO) to accompany Việt Nam in promoting eco-industrial parks associated with the circular economy in the 2024-28 period, according to DEZM.

Its project, approved by the MPI in August, replicates the eco-industrial park approach to promote the circular economy in Việt Nam and has a total budget of US$3.6 million, which is sponsored by the Swiss Federal Department of Economic Affairs, Education and Research (EAER). The projected eco-industrial parks are to be transitioned in Hải Phòng, Bắc Ninh, Đồng Nai, HCM City and Long An.

The MPI is coordinating with the World Bank to support the construction of eco-IPs in Bình Dương, carry out water circulation networks for several industrial parks with a high concentration of textile and garment activities in Hưng Yên and Thừa Thiên-Huế. The goal is to promote the efficient use of energy in the eco-IPs following the Korean model.

Bruno Jaspaert, executive director of the Deep C Industrial Park in Hải Phòng, said Việt Nam does not have preferential policies specifically for developing eco-IPs, thus it will take time and efforts to build these zones.

The research and development of the Law on Industrial Parks and Economic Zones to ensure the enhancement of international competitiveness of industrial park and economic zone models is one of the key tasks that the MPI will implement together with other ministries, agencies, and localities in the coming time, Hiếu said.

According to Hiếu, IPs must pioneer changing the direction of development, focusing on promoting the development of eco and green industrial park models. Science, technology, and innovation should be considered a pillar for future development. Focus should be placed on attracting selective investment, and proactively contacting and closely following the world's leading corporations in the industries and fields that Việt Nam prioritises. 

Eximbank to pay cash dividend for the first time in a decade

Eximbank plans to distribute its first cash dividend payout in a decade, totalling around VNĐ522 billion (US$21.3 million).

The Hồ Chí Minh City Stock Exchange (HoSE) has announced the final registration date for both cash and stock dividends for the year 2023 by Eximbank.

The lender will pay a cash dividend of 3 per cent, or VNĐ300 per share. With over 1.7 billion shares in circulation, it is estimated that the bank will need to allocate approximately VNĐ522 billion ($21.3 million) for this payment.

This marks Eximbank's first cash dividend payout in a decade, with the last one issued to shareholders in June 2014.

The ex-dividend date is set for September 19, with the final registration date following on September 20. Shareholders can expect cash dividends to be disbursed by October 4.

The bank also plans to issue 121.9 million new shares at a rate of 7 per cent, meaning shareholders with 100 shares will receive seven new shares each. If the issuance is successful, the bank’s charter capital will rise from nearly VNĐ17.5 trillion to nearly VNĐ18.7 trillion.

Previously, Eximbank distributed stock dividends at rates of 20 per cent and 18 per cent for the year 2023 in February and October 2023.

In the second quarter, Eximbank saw a notable 38 per cent increase in net interest income, totalling over VNĐ1.5 trillion.

Other income also surged by over VNĐ213 billion, a threefold rise compared to the same period last year.

However, foreign exchange operations witnessed a 33 per cent decline and securities investment activities lost VNĐ5 billion.

Operating expenses rose by 21 per cent to VNĐ934 billion, while credit risk provisions increased by 24 per cent to VNĐ221 billion. The bank reported a profit before tax exceeding VNĐ813 billion, up 52 per cent from last year.

For the first half of the year, Eximbank recorded profits before tax of over VNĐ1.47 trillion, a 5 per cent increase year-on-year. 

PM orders price stabilisation and essential goods security after Typhoon Yagi

Prime Minister Phạm Minh Chính has asked authorities at all levels to ensure supplies of food and essential goods for households affected by super Typhoon Yagi.

On late Friday he issued an official document, detailing measures to be taken by chairs of provinces and market management authorities in the northern region to support people in need, especially those that have been isolated by floods and landslides.

He asked for the prices of food, petrol and essential items to be monitored carefully to avoid goods hoarding, which might lead to a decrease in supplies and price hikes.

The essential items include medicines, hygiene items, textbooks, school supplies, plant seeds, animal feed, and biological products used in farming.

The PM also asked local authorities to repair houses, schools, and hospitals, remove uprooted trees from roads, ensure electricity and water supplies, and maintain telecommunication services for the people.

He asked the Minister of Industry and Trade to collaborate with the military, transport, and health forces to deliver essential goods to isolated areas.

The ministry is also tasked with stabilising prices in the market, identifying those who take advantage of the situation to make illegal profit, and working with Vietnam Electricity (EVN) to make sure pumping stations work properly.

PM Chính asked the Minister of Agricultural and Rural Development to guide and help farmers to resume agricultural production.

They need to drain floodwater out of the fields as quickly as possible to minimise damage to rice and fruit crops, and switch to other production plans if needed.

He also asked the Minister of Finance to work with the General Department of State Reserves to review and identify the needs of affected localities, and supply food, essential items, and disinfectants to support them.

Deputy Ministers Bùi Thanh Sơn, Lê Thành Long, Hồ Đức Phớc are tasked with directing and monitoring the relief efforts. 

PTSC granted $550 million contract for Block B

Phú Quốc Petroleum Operating Company (PQPOC) has signed an engineering, production, construction and installation (EPCI 1) contract for a Block B project to American contractor McDermott and PetroVietnam Technical Services Corporation (PTSC).

PQPOC, a subsidiary of PetroVietnam, oversees the upstream segment of the Block B-Ô Môn gas-to-power project.

The EPCI 1 contract, valued at around US$1.1 billion, encompasses design, technology equipment supply, construction and installation work.

PTSC said that its contract is valued at approximately $550 million, following the Letter of Limited Authorisation (LLOA) signed in October 2023.

Vietcap Securities JSC (VCSC) said that this signals PetroVietnam's earlier-than-expected final investment decision.

The progress of Ô Môn 3 and 4 is slightly ahead of schedule. Ô Môn 3 is now expected to begin commercial operations in the fourth quarter of 2029 (previously 2030), while Ô Môn 4 will come online in the fourth quarter 2027 (previously 2028).

However, Ô Môn 2 is slightly delayed compared to its initial plan, with commercial operations now projected to begin in the first quarter of 2028 (previously 2027). Overall, the target to receive the first gas flow in 2027 remains on track.

VCSC expects the forthcoming full contracts for the remaining EPCI 2, 3 and 4 packages, estimating a value of approximately $1 billion for PetroVietnam in the near term.

VCSC forecasts that with these contracts, PTSC's current profit in 2024 and 2025 might reach VNĐ1.121 trillion (up 9 per cent year-on-year) and nearly VNĐ1.6 trillion (up 39 per cent year-on-year) respectively. 

Banks take measures to support typhoon-affected customers

Commercial banks are responsible for sharing the burden of those who were severely affected by Typhoon Yagi, officials from the State Bank of Vietnam (SBV) have said – including by restructuring debts or lowering interest rates for storm-stricken customers.

Initial statistics show that nearly 12,000 customers with total estimated outstanding loans of more than VNĐ26 trillion in Quảng Ninh Province and Hải Phòng City were severely affected by the typhoon.

At a Thursday meeting about financial damage to banks and customers in Quảng Ninh Province and Hải Phòng City, Deputy Governor of the State Bank of Vietnam (SBV) Đào Minh Tú directed banks in affected areas to implement plans to support those affected. Potential plans include restructuring debt payment terms, maintaining debt groups unchanged and considering exempting or reducing interest rates for affected customers.

Aside from debt and risk settlement plans for customers who have suffered heavy losses and are unable to pay, banks will also be required to continue providing new loans to customers to restore production and business after the storm.

Bank representatives said that they are quickly implementing solutions to support customers facing difficulties after the typhoon.

VPBank on Friday announced that it would reduce interest rates by 1 percentage point for medium- and long-term loans and by 0.5 percentage points for short-term loans from September 13 to December 31 for customers in all provinces and cities directly affected by Typhoon Yagi.

Lê Duy Hải, deputy general director of VietinBank, said the bank will quickly assess the overall damage to customers to get a better idea of appropriate support measures.

Lê Trung Thành, deputy general director of BIDV, said that the bank continues to update information from branches in affected provinces and cities to assess the level of damage to customers, and that it plans to restructure debts and reduce interest rates. The bank considers this an urgent task that needs to be prioritised.

Domestic lending interest rates may further decrease, but not much after the US Federal Reserve (Fed)’s expected interest rate cut this month, experts forecast.

Economic commentators so far believe that the possibility of the Fed cutting interest rates this month is more than 90 per cent.

Investment Director of Vietcombank Fund Management Company Limited (VCBF) Dương Kim Anh said there will be no direct correlation between the Fed's benchmark interest rate and deposits in Việt Nam, or even the yield on Vietnamese government bonds, but there will be an indirect impact through the domestic foreign exchange rate.

According to Anh, domestic market developments over the past month show that the Vietnamese đồng has been gradually increasing in value and the depreciation of the đồng has so far decreased significantly compared to the level in May this year, when the đồng depreciated by nearly 5 per cent.

When the pressure on the đồng is reduced, the pressure on interest rates will no longer exist. Under this context, the SBV adjusted the open market operation (OMO) interest rate in the domestic market.

Anh also believes that Việt Nam's economic indicators for the first eight months of this year were positive, but based on the low growth of 2023, consumer demand was not really ‘healthy’ and inflation was nearly 4 per cent.

Việt Nam therefore still needs to maintain low interest rates to support businesses and promote consumption to achieve growth rate of up to 6.5 per cent this year and retain the growth momentum in 2025.

The Fed's interest rate cut will have a positive short-term impact on the Vietnamese exchange rate policy as it can help the SBV maintain low interest rates to support the economy. In the long term, it can affect Việt Nam's exports, Anh said.

Meanwhile, Investment Consulting Director of Maybank Investment Bank Phan Dũng Khánh said that the Fed's interest rate cut is related to the US dollar index (DXY). In the first half of this year, the Fed was expected to lower interest rates, but the DXY tended to increase and only decreased again since the beginning of the third quarter, when the possibility of the Fed's interest rate reduction reached more than 90 per cent.

The domestic exchange rate on the free market has occasionally increased to VNĐ26,000 per dollar, but is now returning to VNĐ25,000 per dollar. However, the exchange rate of the đồng against the dollar is relatively stable.

Businesses often complain about high interest rates, but only a few of them complain about the exchange rate. There were times when the đồng depreciated against the dollar, but compared to the euro or Japanese yen, the depreciation of the đồng was very low. The đồng is currently in a good position thanks to the dollar's downward trend, Khánh said.

At the same time, Khánh added that it is difficult for the dollar to decrease further, as the DXY is currently at 100. Thus, pressure on the domestic exchange rate will be reduced.

Regarding domestic interest rates, Khánh said it is incorrect to think that the Fed's interest rate cut means a period of cheap money is on the horizon. In fact, the Fed's interest rate is at 5-5.5 per cent, which is still at a very high level and far from neutral. It is therefore possible for banks to further reduce interest rates, but not much.

Sharing the same view, Hồ Hữu Tuấn Hiếu, an investment strategy expert at Saigon Securities Incorporation, said the savings interest rate has increased since the beginning of this year due to the warming up of credit growth, but it is not a problem for liquidity in the banking system. This is an expectation, not a concern.

The Fed's interest rate cut will create room for domestic monetary policy-makers to stabilise domestic interest rates, which helps recover the economy and other assets, Hiếu noted. 

Industrial innovation to boost sustainable growth for the southeast region

Industrial production is supporting the steady growth of the southeast region, with HCM City moving towards high-tech industries and Bình Dương expanding its role as a key industrial centre.

In the southeast region, local authorities are using various strategies to facilitate industrial development, concentrating on new technologies, green materials and energy, and sustainable growth.

The People's Committee of HCM City said that the Industrial Production Index (IIP) increased by 6.4 per cent in the first eight months of 2024 compared to the same period last year, with the mining sector growing by 51.4 per cent, manufacturing by 6.1 per cent, and electricity production and distribution by 6.7 per cent.

In the same period, the manufacturing sector’s consumption index increased by 9.7 per cent.

Significant growth was seen in rubber and plastic products, which rose by 41.2 per cent, wood processing and wood-based products jumped 34.9 per cent, and chemical products increased 18.9 per cent.

However, the contribution of industry has been steadily decreasing, now making up only 17.8 per cent of the city’s gross regional domestic product (GRDP), while the service sector accounts for 65.6 per cent of the city’s economy.

Experts said that HCM City's industrial sector has become outdated, relying on resource-intensive and labour-heavy processes with low added value. Therefore, transitioning towards high-tech industries is seen as essential for the city’s ongoing development.

Nguyễn Ngọc Hòa, chairman of the HCM City Business Association, said that industrial transformation will add significant value to the city, meeting both domestic and international demand. This new direction will help HCM City avoid falling behind global standards and improve the quality of products for the local market.

In Bình Dương Province, several industrial parks and multi-sector industrial clusters have been developed, with numerous large-scale supporting industry projects from international corporations such as Kolon (South Korea), Polytex Far Eastern (Taiwan), Tetra Pak (Singapore), Mitsubishi (Japan), and Lego (Denmark).

Bình Dương is now a key industrial centre in Việt Nam, featuring 28 active industrial parks covering 7,000 hectares, with more than 93 per cent of the space already leased.

Key areas like electronics, telecommunications, mechanics, and export manufacturing are crucial to the province’s economic development.

HCM City is actively pursuing several initiatives to ensure sustainable development. One such effort includes transforming five outdated export processing zones into eco-industrial parks, high-tech areas, or logistics areas.

The city is also encouraging innovative startups that focus on sustainability through competitions and projects.

Bình Dương Province aims to become a centre for smart manufacturing, with widespread application of automation in production to enhance productivity, quality, and competitiveness.

According to its vision until 2030, the industrial and construction sectors will constitute 64 per cent of the economy, with 87 per cent of the workforce trained to meet the demands of the industrial sector.

Bình Dương is also taking steps to boost growth, including setting up the “Bình Dương innovation zone” project to promote digital transformation and improving industrial infrastructure alongside urban development.

These initiatives will attract greater foreign investment and improve the province’s competitiveness, positioning Bình Dương as a leading destination for global companies in industrial production, high technology, and industrial services. 

VNS/VNA/VOV/VNN