Vietnam has become one of the leading countries in Southeast Asia in attracting foreign direct investment (FDI), according to an article published on September 21 on the website gfmag.com of Global Finance Magazine.

The writing attributes it to a range of advantages of the country, including its favourable demographics as 40% of Vietnam’s population of 100 million are under 25. In addition, it has tariff-free access to the Southeast Asia region with 800 million people thanks to being a member of the Association of Southeast Asian Nations (ASEAN).

According to Thierry Mermet, CEO of Source Of Asia (SOA), a consultant to companies looking for business opportunities in Vietnam and ASEAN, the 2023 outlook for the business environment in Vietnam shows promising signs of improvement. He cited foreign direct investment capital reaching about 10 billion USD in the first quarter of 2023, an increase of 0.5% over the same period last year. Mermet predicted that this trend will continue in the near future.

The expert said that in the long term, Vietnam is really strengthening its position as one of the top three locations where European business leaders want to invest. According to the Business Confidence Index report conducted by the European Chamber of Commerce in Vietnam (EuroCham), 3% more leaders have picked Vietnam as one of the top three investment choices.

The article said that 90 countries and territories invested in Vietnam in the first half of this year; the top five are Asian countries. with the Republic of Korea in first place, accounting for 81 billion USD. It was followed by Singapore and Japan with 72 billion USD and nearly 70 billion USD committed, respectively. Notably, while the US stood in the 7th position in terms of investment capital, it is Vietnam’s first key export partner.

Another indicator of Vietnam’s attraction is homegrown electric vehicle (EV) manufacturer VinFast, which recently became the world’s third-largest automaker by market capitalisation, behind Tesla and Toyota.

According to Barry Elliott, Vice President of Tomkins Ventures and a supply chain guru long active in Vietnam, this not only signals a promising future for the EV industry in Southeast Asia in general, but also exemplifies Vietnam’s emerging prowess in manufacturing.

Meanwhile, S&P Global said that Vietnam’s robust economic growth is also a factor that helps attract foreign investors to the country. Although its economic growth slowed to 3.7% in the first half from 8% in 2022, the World Bank predicts a rebound in the second half of this year.

The S&P Global forecast an increase in mergers and acquisitions in Vietnam’s banking sector over the next two years as lenders seek to bolster their capital.

Thailand's Kasikornbank PCL is reportedly in talks to acquire consumer finance provider Home Credit Vietnam in a deal valued at about 1 billion USD. If successful, this would be the second-largest deal in Vietnam in 2023, following Sumitomo Mitsui Banking Corp.'s acquisition of a 15% stake in Vietnam Prosperity Joint Stock Commercial Bank in March.

According to Mukuru Kato, managing director and head of frontier markets research at EFG Hermes Research said deals will likely surge between 2023 and 2024, including among state-owned commercial banks (SOCBs), as the State Bank of Vietnam is keen to have a Vietnamese bank rank among the top 100 in Asia.

Ivan Tan, an analyst at S&P Global Ratings, said that acquiring a strategic stake in Vietnamese banks provides an opportunity for foreign investors to participate in the growth and tap the country’s favourable demographics via retail lending, particularly via digital channels.

Deputy PM receives General Manager of Bank for International Settlements

Deputy Prime Minister Le Minh Khai received General Manager of the Bank for International Settlements (BIS) Agustin Carstens in Hanoi on September 22.

At the reception, Khai highly appreciated BIS’s innovative activities through the establishment of innovation hubs with significant, effective projects.

He said the State Bank of Vietnam (SBV) has been actively participating in projects of the BIS Innovation Hub which helps improve the efficiency of state management and supervision of high-tech financial banking operations, ensuring national and international financial and monetary stability.

Vietnam hopes that BIS will pay attention to and continue to deploy forums and initiatives in Vietnam to further tighten the relationship between the two sides, and help Vietnam improve the efficiency of banking system management, Khai said.

For his part, Carstens said that BIS is an international monetary and financial institution that is considered the "bank of central banks" and now has 63 members.

BIS's offer to the SBV to become its official member affirmed that BIS highly appreciated Vietnam's position, he said, adding that its members are countries that can make important contributions to the global finance and economy.

Sharing the pillars of BIS's operations, Carstens emphasised that dialogue and cooperation among members help increase trust, thereby making faster decisions related to finance and banking. As Vietnam is a new BIS member, the country’s participation in those activities is important, he stressed.

The general manager hoped that the SBV will participate more and more actively in BIS's activities.

According to the general manager, from 2020 until now, fluctuations all over the world proved the important role of central banks, especially in responding to rising inflation. This is the first time high inflation has occurred simultaneously in many countries and central banks have taken "collective actions" to respond.

He highly appreciated the actions of Vietnam, particularly the SBV in fighting inflation, and ensuring the health of the Vietnamese economy.

Carstens affirmed those are the foundation for Vietnam's economy to soon return to a high growth trajectory. He said that the cooperation between BIS and the SBV in providing banking services is fruitful, including foreign exchange reserves.

Financial sector strongly focusing on digital transformation

The financial sector has been ardently advocating for digital transformation, as this endeavour will be a pivotal element in the national digital shift and will also bolster digital transformation across other sectors, according to officials.

At Vietnam Digital Finance 2023 (VDF-2023) themed 'Digital data: a driver for sustainable digital transformation in the financial sector', held on September 21 in Hanoi, Nguyen Duc Hien, deputy head of the Party Central Committee's Economic Commission, said that both in the world and in Vietnam, digital finance is in a period of explosive development with many diverse types of services.

Many studies have shown that digital finance improves the stability of the financial system and brings benefits to users of financial services, financial service providers, the government and the economy. It also helps increase access to financial services, especially for low-income groups, making an important contribution to financial inclusion.

For the financial industry alone, Hien stated that in recent years, the Ministry of Finance has issued resolutions and decisions on the Ministry of Finance's Digital Transformation Strategy until 2025 with an orientation to 2030; and the Operational Plan of the ministry’s Digital Transformation Steering Committee in 2023 to promote digital transformation.

According to Nguyen Viet Ha, Director of the MoF’s Department of Financial Informatics and Statistics, Prime Minister Pham Minh Chinh, who is also the chairman of the National Committee on Digital Transformation, in April this year, signed Decision No 17/QĐ-UBQGCDS promulgating the operation plan of the National Committee on Digital Transformation for 2023. Accordingly, the National Committee on Digital Transformation in 2023 focuses on directing and coordinating ministries, branches, and localities to continually promote digital transformation in the direction of bringing real and sustainable results.

Being considered as the ‘lifeblood’ of the economy, digital transformation in the financial sector will be one of the key factors for the national digital transformation and will help promote digital transformation in other industries, Hà noted.

In 2023, the digital transformation tasks for the entire nation in general, and the financial industry in particular, are very substantial, requiring high determination, immense effort, decisive actions and effective measures to achieve. For many consecutive years, the Ministry of Finance has consistently ranked first in the index of readiness for the development and application of information and communications technology (ICT Index), while it ranked second among ministries and branches providing public services in the Digital Transformation Index (DTI) in 2022.

The fields of tax, customs and treasury have always been at the forefront in implementing digital transformation, with notable results such as the electronic tax declaration, payment and refund system; and the implementation of 250 administrative procedures through the national single window mechanism.

Platforms for data construction and management have been developed to enhance compatibility between the information infrastructures of State agencies. This creates favourable conditions for electronic transactions between State agencies, organisations and individuals, while ensuring the sharing of financial sector data with other ministries, branches and localities.

To consistently maintain achievements and pursue digital transformation goals in finance and the State budget, Hien stated that the MoF needs to guide its affiliates to champion digital transformation, and foster a digital government and society. This will help in reducing costs, creating favourable conditions for firms, and ensuring satisfaction for the people.

Quang Binh province promotes investment in Japan

The central province of Quang Binh is active and open to investors and commits to accompany and create the most favourable conditions in order to turn investor ideas and its development goals into reality, an official has said.

Doan Ngoc Lam, Vice Chairman of the provincial People’s Committee, made the statement at an investment promotion conference in Tokyo on September 22.

Jointly organised by the Quang Binh provincial People’s Committee, the Vietnamese Embassy in Japan, Japan External Trade Organisation (JETRO) and ASEAN Centre, the event aimed to help businesses of the central province of Vietnam and Japan meet, exchange and explore investment cooperative opportunities in the future.

In his remarks, Lam said Quang Binh has an important strategic position on economic development corridors, converging many potentials and strengths to develop an integrated and diverse economy, especially tourism development.

Talking about Vietnam's potential, JETRO Vice President Nakazawa Katsunori highlighted that export turnover between Vietnam and Japan doubled in the past 10 years, and Vietnam has become an important partner and investment destination of Japan.

According to a survey conducted by JETRO among 3,000 Japanese companies with overseas investments, Vietnam ranks second among countries in which Japanese companies want to invest for six consecutive years. In addition, in 2022, there were up to 4,700 requests for advice from Japanese companies on the foreign investment environment related to Vietnam.

At the event, Honna Hitoshi, President and Representative Director of Japan's Erex Co. Ltd, briefed participants about his company's activities and biomass power projects in Vietnam, including the Quang Binh biomass power plant.

He said he hopes that the government will speed up investment licensing procedures and allow Erex to enjoy preferential import and investment taxes because the company will transport many machinery and equipment to Vietnam. He also expects the Vietnamese government to consider adjusting electricity purchasing prices, adding that this will help Erex reinvest in projects.

Speaking at the event, Secretary of the Quang Binh provincial Party Committee Vu Dai Thang said the presence of a large number of Japanese companies showed their interest in the locality. He pledged that the province would do everything possible to create a fair, favourable, substantial, efficient and timely investment environment, to transform the potential and benefits into specific and practical results.

Vietnam's coffee exports to slow down in Q3

Vietnam’s coffee exports in the third quarter of this year will slow down because supply is no longer abundant, according to the Agency of Foreign Trade under the Ministry of Industry and Trade.

However, the exports will benefit from prices because the world's consumer tastes tend to shift to Robusta coffee.

In the 11 months of the 2022 - 2023 crop year from October 2022 to August 2023, Vietnam exported more than 1.6 million tonnes of coffee, a decrease of 2% compared to the same period of the previous crop year.

The output in this crop is forecast to be only about 1.5 - 1.6 million tonnes, down 10 - 15% compared to the 2021-2022 crop. 

There is not much coffee for export now. The supply is expected to improve from November until the new harvest season 2023-2024.

However, low inventories pushed export coffee prices in August to a new record of 3,054 USD per tonne, up 8% over the previous month and up 30% compared to the same period last year.

On average, in the first eight months of 2023, export coffee prices increased nearly 9% to 2,463 USD per tonne.

According to the Ministry of Agriculture and Rural Development, in the first eight months of 2023, Vietnam exported nearly 1.2 million tonnes, earning nearly 3 billion USD, down 5.7% in volume but up 32.3% in value thanks to increased selling prices.

Vietnam's largest coffee export markets included Germany, Italy, the US, and Japan.

According to the General Department of Customs, the country's coffee exports in August 2023 fell to the lowest level since November 2022, with a volume reaching 84,647 tonnes, worth 258.5 million VND (10,600 USD), down 22.3% in volume and 16% in value compared to the previous month.

Vietnam, Bangladesh boost economic cooperation

Vietnam defines Bangladesh, which is currently the country's second largest trading partner in South Asia, as its important partner and a potential investment destination for major corporations and enterprises of the Southeast Asian country in the future, National Assembly Chairman Vuong Dinh Hue said on September 22.

In his speech at the Vietnam-Bangladesh forum on policies and laws to promote economic, trade and investment cooperation in Dhaka capital, Bangladesh, Hue said with a favourable geographical location, Bangladesh is considered a gateway for Vietnamese businesses to enter and expand to other South Asian and Middle East markets, and vice versa, Bangladeshi businesses can expand to markets in the Association of Southeast Asian Nations (ASEAN) - the 5th largest market in the world with about 650 million people - and enlarge to partner countries which have signed free trade agreements with Vietnam.

The Vietnamese top legislator said that in the current context of the global economy, Vietnam and Bangladesh need to strengthen cooperation, facilitate trade for each other, and enhance connections between their businesses to maintain existing supply chains, jointly attract capital and technology to develop new industrial supply chains with high added value. The two countries should also strengthen cooperation in agriculture and fisheries, especially rice and food, textiles and garment, construction materials, infrastructure investment, development of e-commerce and digital economy, Halal industry and tourism, he continued.

He said that on that basis, the two countries will soon strive for a trade turnover of about 2 billion USD.

Appreciating that Bangladesh has greened its textile industry and maintained orders amid a decline in other countries, the NA Chairman hoped that the two countries will coordinate to develop the textile and garment value chain on the basis of joint work and non-competition.

He also asked businesses from both sides to actively exchange and promote cooperation in the field of agriculture, especially clean agriculture and green agriculture adapted to climate change, and aquaculture, including pearl farming and processing.

In particular, Hue also asked businesses and the Chambers of Commerce and Industry to urge the two countries to sign a new memorandum of understanding (MoU) in the field of agricultural cooperation soon as well as extend the MoU on agricultural cooperation on fisheries and breeding.

Shomi Kaiser, Vice President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), said the trade and investment cooperation relationship between the two countries is currently not commensurate with their potential.

The two countries have not signed a Free Trade Agreement (FTA), but Bangladesh has a large market and always wants to promote investment, business and trade cooperation in the spirit of mutual benefit, she noted, adding that Bangladeshi business community is ready to cooperate with Vietnamese enterprises.

Bangladesh's gross domestic product (GDP) reached 455 billion USD in 2022 and the country is aiming for 1 trillion USD in the near future.

According to Kaiser, the two countries have similarities in export markets and Vietnam has diverse export products.

Bangladesh is making efforts to resolve challenges to exit the group of low-income countries, she said, adding that in that spirit, Bangladesh wishes to share development experiences and strengthen investment and trade cooperation in the future.

At the forum, the Vietnamese top legislator witnessed the signing ceremony of MoUs between businesses of the two countries.

The same day, the NA Chairman hosted receptions for Joshoda Jibon Nath, Vice President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and leaders of the Bangladesh - Vietnam Chamber of Commerce and Industry (BVCCI) and the Dhaka Chamber of Commerce and Industry (DCCI).

At the meeting with FBCCI Vice President Nath, Hue said he hoped that the federation will strengthen its role in helping Vietnamese businesses learn about investment opportunities in Bangladesh's industrial parks, especially 100 special industrial parks and 26 high-tech industrial zones that have been implemented in conjunction with the South Asian nation's investment attraction policies.

For his part, Nath said Bangladesh is negotiating to sign a number of free trade agreements, hoping Vietnam will play a role in connecting with the Southeast Asian market. Vice versa, Bangladesh can connect cooperation between South Asian countries and Southeast Asian nations, he said.

Meeting with leaders of BVCCI and DCCI, the Vietnamese top legislator asked them to closely coordinate with the authorities of Vietnam and Bangladesh to promote their roles as bridges and actively support enterprises of the two countries in studying, connecting, and investing in the two countries.

The two organisations should collaborate with relevant agencies of the two countries to promote and introduce Vietnam's culture, people, business and investment environment, which is being improved to Bangladesh's business community, and vice versa, Hue added.

Later the day, Chairman Hue had working sessions with leaders from the Doreen Group, Abdul Monem Limited (AML), Bangladesh Association of Pharmaceutical Industries (BAPI), and Association of Travel Agents of Bangladesh (ATAB), during which he affirmed that the National Assembly and Government of Vietnam will accompany with and create favourable conditions for foreign investors, including those from Bangadesh, to carry out investment and business activities and exploit strengths of each country.

He also informed them about policies, laws and orientations of Vietnam, while urging Bangladeshi groups and associations with their networks of offices and banches to serve as a bridge to bring potential investors inside and outside Bangladesh to come to make investment in Vietnam.

Lotte keen for further investment in Hanoi development projects

Lotte Group of the Republic of Korea (RoK) is always seeking fresh opportunities to expand its investment in the Vietnamese market and would be honoured to receive proposals in new projects.

This announcement was made by Shin Dong-bin, chairman of Lotte Group, at a meeting with Secretary of Hanoi Party Committee Dinh Tien Dung in Hanoi on September 22.

Shin briefed his host on the grand opening of the Lotte Mall West Lake project, which took place in Tay Ho district on the same day.

Through the valuable support of Hanoi’s authorities, Shin said that the Lotte Mall West Lake project, which broke the ground in 2016, has now become operational.

He expressed his expectation that Lotte Mall will develop to become a vibrant commercial hub in the capital, with an estimated annual footfall of 10 million visitors which will contribute to creating employment opportunities for approximately 10,000 workers.

The Lotte chairman also proposed extending the project's operating period from 2010 to 2060, instead of the previously approved period of 1996 to 2046.

Shin also expressed hope that Vietnam in general and Hanoi in particular will support Busan to win the right to host The World Expo 2030.

The Hanoi Party leader for his part welcomed Shin’s proposal, and said he would direct relevant agencies to study it and then report to the Prime Minister.

Dung also proposed that Lotte Group help develop Hanoi according to its development master plan and invest in two satellite cities that fall under the capital's jurisdiction. These cities to be developed into a smart city, and a technology and innovation city, respectively, are located across the Red River in the districts of Dong Anh, Me Linh, and Soc Son.

The Hanoi leader briefed his guest on the Government’s recent decision to transfer the Hoa Lac High-Tech Park to Hanoi, which is set to have a population of about two to three million with a high proportion of intellectuals.

He called on financiers from the RoK to invest in the high-tech park for win-win cooperation.

Chinese locality Anhui promotes tourism in Ho Chi Minh City

The mountainous Chinese province of Anhui introduced and promoted its culture and tourism potential at a conference in Ho Chi Minh City on September 22.

Anhui is home to an array of landscapes such as Huangshan Mountain, Changjiang (Yangtze) River, Huai River, and Xin'an River that attract a large number of visitors each year.

Speaking at the event, Bui Thi Ngoc Hieu, deputy director of the Ho Chi Minh City Tourism Department, noted that China is one of the main tourism markets for Vietnam.

Chinese tourists ranked third among foreign arrivals in Ho Chi Minh City in 2019, amounting to more than 1.2 million, she reminded.

Hieu expressed optimism that through the event tourism services and products of both Vietnam and China, particularly Ho Chi Minh City and Anhui, would be increasingly developed.

For his part, Zhen Yi, representative of Anhui province, shared that Ho Chi Minh City is the most vibrant tourism market in Vietnam. Currently, residents of the southern city have to transit in Quangzhou and Shanghai if they wish to fly to the Chinese locality.
He outlined his hope that through the conference there will be direct flights with attractive prices launched in the near future to connect Ho Chi Minh City and Anhui, thereby meeting the demands of people from the two sides.

At the event, travel businesses of the two localities also signed a cooperation agreement to further develop tourism services in the future.

Vietnam among largest rubber suppliers to Japan

The nation is currently the eighth largest rubber supplier to the Japanese market, behind only Indonesia, Thailand, the Republic of Korea, Singapore, and the United States, according to the Import-Export Department under the Ministry of Industry and Trade.

The Import-Export Department quoted statistics compiled by the General Department of Customs as saying that Vietnamese rubber exports to Japan reached 5.470 tonnes worth US$8.98 million in the first eight months of the year, down 10.4% in volume and down 27.6% in value over the same period from 2022.

The average export price of rubber to this market stood at US$1,565 per tonne, down 19.2% over the same period in 2022.

The country’s natural rubber is the primary product exported to the Far East nation. Of the various types, SVR CV60 accounted for the largest portion of total exported rubber at 39.89%, followed by SVR 3L at 36.68%, and SVR 10 at 13.22%, respectively.

According to the Import-Export Department, since the beginning of the year, national rubber exports to the Japanese market have faced a number of difficulties, resulting in a fall in both quantity and value of exports to the market.

Viet Nam, Bangladesh boost economic cooperation

Việt Nam defines Bangladesh, which is currently the country's second largest trading partner in South Asia, as its important partner and a potential investment destination for major corporations and enterprises of the Southeast Asian country in the future, National Assembly Chairman Vương Đình Huệ said on Friday.

In his speech at the Việt Nam-Bangladesh forum on policies and laws to promote economic, trade and investment cooperation in Dhaka capital, Bangladesh, Huệ said with a favourable geographical location, Bangladesh could be considered a gateway for Vietnamese businesses to enter and expand to other South Asian and Middle East markets, and vice versa, Bangladeshi businesses can expand to markets in the Association of Southeast Asian Nations (ASEAN) - the 5th largest market in the world with about 650 million people - and enlarge to partner countries which have signed free trade agreements with Việt Nam.

According to the Vietnamese top legislator, in the current context of the global economy, Việt Nam and Bangladesh need to strengthen cooperation, facilitate trade for each other, and enhance connections between their businesses to maintain existing supply chains, jointly attract capital and technology to develop new industrial supply chains with high added value. The two countries should also strengthen cooperation in agriculture and fisheries, especially rice and food, textiles and garment, construction materials, infrastructure investment, development of e-commerce and digital economy, Halal industry and tourism.

He said that on that basis, the two countries would soon strive for a trade turnover of about US$2 billion.

Appreciating that Bangladesh has greened its textile industry and maintained orders amid a decline in other countries, the NA Chairman hoped that the two countries would coordinate to develop the textile and garment value chain on the basis of joint work and non-competition.

He also asked businesses from both sides to actively exchange and promote cooperation in the field of agriculture, especially clean agriculture and green agriculture adapted to climate change, and aquaculture, including pearl farming and processing.

In particular, Huệ also asked businesses and the Chambers of Commerce and Industry to urge the two countries to sign a new memorandum of understanding (MoU) in the field of agricultural cooperation soon as well as extend the MoU on agricultural cooperation on fisheries and breeding.

Shomi Kaiser, Vice President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), said the trade and investment cooperation relationship between the two countries was currently not commensurate with their potential.

The two countries had not signed a Free Trade Agreement (FTA), but Bangladesh had a large market and always wanted to promote investment, business and trade cooperation in the spirit of mutual benefit, she noted, adding that the Bangladeshi business community would be ready to cooperate with Vietnamese enterprises.

Bangladesh's gross domestic product (GDP) reached $455 billion in 2022 and the country is aiming for $1 trillion in the near future.

According to Kaiser, the two countries have similarities in export markets and Việt Nam has diverse export products.

Bangladesh is making efforts to resolve challenges to exit the group of low-income countries. In that spirit, Bangladesh wishes to share development experiences and strengthen investment and trade cooperation in the future.

At the forum, the Vietnamese top legislator witnessed the signing ceremony of MoUs between businesses of the two countries.

The same day, the NA Chairman hosted receptions for Joshoda Jibon Nath, Vice President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and leaders of the Bangladesh - Việt Nam Chamber of Commerce and Industry (BVCCI) and the Dhaka Chamber of Commerce and Industry (DCCI).

At the meeting with FBCCI Vice President Nath, Huệ said he hoped that the federation would strengthen its role in helping Vietnamese businesses learn about investment opportunities in Bangladesh's industrial parks, especially 100 special industrial parks and 26 high-tech industrial zones that had been implemented in conjunction with the South Asian nation's investment attraction policies.

For his part, Nath said Bangladesh was negotiating to sign a number of free trade agreements, hoping Việt Nam would play a role in connecting with the Southeast Asian market. Vice versa, Bangladesh could connect cooperation between South Asian countries and Southeast Asian nations, he said.

Meeting with leaders of BVCCI and DCCI, the Vietnamese top legislator asked them to closely coordinate with the authorities of Việt Nam and Bangladesh to promote their roles as bridges and actively support enterprises of the two countries in studying, connecting, and investing in the two countries.

The two organisations should collaborate with relevant agencies of the two countries to promote and introduce Việt Nam's culture, people, business and investment environment, which is being improved, to Bangladesh's business community, and vice versa, Huệ added.

Later on Friday, Chairman Huệ had working sessions with leaders from the Doreen Group, Abdul Monem Limited (AML), Bangladesh Association of Pharmaceutical Industries (BAPI), and Association of Travel Agents of Bangladesh (ATAB), during which he affirmed that the National Assembly and Government of Việt Nam would accompany and create favourable conditions for foreign investors, including those from Bangladesh, to carry out investment and business activities and exploit strengths of each country.

He also informed them about policies, laws and orientations of Việt Nam, while urging Bangladeshi groups and associations with their networks of offices and branches to serve as a bridge to bring potential investors inside and outside Bangladesh to come to make investment in Việt Nam. 

Tây Ninh approves two large-scale high-tech agricultural projects

The People's Committee of Tây Ninh Province has approved in principle the development of two large-scale high-tech agricultural projects in the locality. 

The first project is a chicken farm using a closed model, to be built by the Ninh Thuận-based southeast high-tech agriculture company in Tân Châu District. The farm, worth VNĐ60 billion (nearly US$2.5 million), covers about 67,400sq.m. It is expected to start construction in March 2024 and put into operation in May 2025.

The second is a high-tech cigarette production factory, to be developed by Tây Ninh Tobacco One Member Ltd Co. It will span over 20,200sq.m in Tân Biên District. 

The investor said it will sign purchasing agreements with existing raw material growing areas in Lạng Sơn, Cao Bằng, and Long An provinces.

Tây Ninh is part of the southern key economic zone also comprising HCM City, and Bình Dương and Long An provinces. Its Mộc Bài border gate plays a major role in facilitating trade.

In the first half of this year, the province's economy grew by 4.07 per cent, the second highest rate in the southeastern region.

During the period, it also attracted $896 million worth of investment, in which foreign investment increased 130 per cent over the same period last year, according to the committee. 

Relevant authorities have been instructed to create favourable conditions for new investment projects, especially by resolving land-related issues.

Local authorities will help businesses take advantage of supportive policies. 

Shark Tank to start sixth season next week

The sixth season of Shark Tank Vietnam, a reality television series where start-ups seek investments from a panel of investors, will be broadcast starting September 25.

Produced by TV Hub and VTV Digital, the show will be on air every Monday at 20:30 on VTV3.

This season, Shark Tank Vietnam will have 16 episodes featuring 56 startups.

The sixth season of Shark Tank comes amid an economic slowdown. In the first eight months of this year, 40,000 companies had to close, an increase of nearly 27 per cent year-on-year. 

Therefore, the new season of this reality show is considered as an opportunity for start-ups to accelerate their businesses.

Shark Tank this year will feature many new investors who are known as “sharks”, including Phạm Thanh Hưng, deputy chairman of Cen Group; Nguyễn Hoà Bình, CEO of NextTech Group; Lê Hùng Anh, managing director of BIN Corporation Group; Louis Nguyễn, CEO of Saigon Asset Management; Erik Jonsson, partner at venture capital firm Antler; Lê Hàn Tuệ Lâm, director of Nextrans Vietnam; and Bùi Quang Minh, chairman of Beta Group.

Each of the investors specialises in different kinds of startups.

For example, Phạm Thanh Hưng will focus on start-ups who do business in traditional sectors and apply technology in their production.

Louis Nguyễn will seek start-ups in the sectors of technology, health-care, education and F&B who are in the Series A+ round. He also prefers firms that have good ESG practices.

Erik Jonsson, meanwhile, likes B2B startups who promise revenue of US$100 million after five to seven years.

After five seasons, Shark Tank has helped push the development of start-ups in Việt Nam. Many start-ups have reached high growth in revenue after joining the show.

Á Châu English Centre reached a growth of 30 per cent and opened three more locations after the show. The company gets an additional 400-500 students in each location after only one year instead of two or three years like in the past.

Startup CoolMate, meanwhile, received 1.6 million viewers to its website. They have about 3,000-4,000 orders per day and revenue for 2023 is expected to increase by 80 times over the previous year.

To date, 243 startups have participated in the show and 143 of them have been invested in by sharks. 

After Shark Tank, 10 startups have successfully raised capital worth millions of US dollars.

Shark Tank is an American business reality television series that premiered in 2009. The show is the American franchise of the show Dragons’ Den, which originated in Japan as Money Tigers in 2001. 

Deputy PM meets leader of Japan's MOECO company

Deputy Prime Minister Trần Hồng Hà hosted a reception in Hà Nội on Thursday for President and CEO of Mitsui Oil Exploration Co., Ltd. (MOECO) Hidenori Harada.

Hà told his guest that Việt Nam always appreciates and welcomes cooperation projects between Japanese and Vietnamese businesses.

Amid fluctuations in the world economy, Việt Nam wants to maintain and develop collaboration and investment ties with Japanese businesses, he said.

Regarding Block B - Ô Môn gas project chain being implemented by MOECO and partners, the Deputy PM stated that policies of the Vietnamese State will ensure that the project operates throughout its life cycle, in a stable and long-term manner, and benefits investors so that the project chain is truly a bright spot in economic cooperation between Japan and Việt Nam.

Updating the host on the implementation of the project chain, Hidenori said that MOECO is working with partners to prepare investment procedures with the active support of the Vietnamese Ministry of Industry and Trade.

He thanked and appreciated the important direction of the Vietnamese Government to solve difficulties and obstacles for the project.

Enterprises expect easier access to credit

Enterprises expected access to banking credit to be made easier to quench their thirst for capital during the process of recovering production and business.

Trần Sỹ Thanh, Chairman of the Hà Nội People’s Committee, said at the conference to connect businesses and banks held by the State Bank of Việt Nam (SBV) on Thursday in Hà Nội that the credit policies failed to cover and support all businesses.

Thanh said that he expected banks to take timely actions to provide credit to enterprises while enterprises still have the ability to absorb capital. If the capital came late, it would be difficult for enterprises to survive, he said.

Lê Vĩnh Sơn, President of the Hà Nội Association of Main Industrial Products (Hami), said that small and medium-sized enterprises (SMEs) encountered a lot of difficulties in borrowing money from banks, including complicated procedures and prolonged loan approval times.

Sơn said that the slow reduction of rates also made it difficult for enterprises, proposing rates be lowered by 1-2 per cent, which could be sourced from the banks’ profits.

“I do not suggest banks lower credit standards, but they could be more flexible in assessing some financial criteria,” Sơn said.

Trịnh Thị Ngân from the Hà Nội Association of SMEs said that the 2 per cent per year interest rate support programme primarily benefited large companies, while many SMEs, which needed the support most, found it difficult to access it.

Banks should simplify procedures for SMEs to allow them to access banking credit, Ngân said.

Nguyễn Trọng Hoa, director of a steel company, said that the interest rates should be lowered to around 6 per cent.

SBV Governor Nguyễn Thị Hồng mentioned that the central bank would ask credit institutions to continue to reduce costs and accelerate digital transformation to create room for lowering rates. Additionally, Hồng said enterprises should be transparent in their financial situations and cash flow so that credit institutions would not be hesitant to provide lending.

Nguyễn Thanh Tùng, director of the Bank for Foreign Trade of Việt Nam, shared that the bank would allocate VNĐ1.85 trillion from its profit to support existing loans.

Tùng also emphasised that credit standards could not be lowered to prevent an increase in bad debts in the future.

Hà Thu Giang, Director of SBV’s Credit Department, pointed out that the pressure on banking credit was immense because other capital-raising channels, such as the corporate bond and securities market, were not very efficient.

Senior economist Võ Trí Thành stated that the challenge of improving credit access and capital absorbability required a comprehensive solution that considered the entire economic system, not just the banking sector.

The SBV reduced rates four times by approximately 0.5-2 per cent in total during the first nine months of this year to support the economy.

Frasers Property, Gelex Group break ground on maiden project in Bắc Ninh

Singapore-based property developer Frasers Property Vietnam and GELEX Group, Việt Nam's leading investment group, have jointly broken ground on Industrial Centre Yen Phong 2C in the northern province of Bắc Ninh.

The groundbreaking ceremony of Industrial Centre YP2C, the first industrial and logistics project in the north of Việt Nam since the two firms signed a partnership agreement earlier in March, was held on September 19.

It is scheduled to be completed in the second quarter of 2024 and will feature 34,500 sqm of high-quality industrial and logistics space designed in accordance with Frasers Property’s Premium Estates concept that reflects its commitment to creating healthy, sustainable, and high-performing industrial assets.

The 3-in-1 multi-functional industrial space will seamlessly integrate showroom, office, and production assemblies with 7,000 sqm dedicated for a green recreation park and on-site service centre to support occupier wellbeing on the estate.

Lim Hua Tiong, CEO of Frasers Property Vietnam, said, “Bắc Ninh is a strategic manufacturing hub in the Northern Key Economic Zone that is contributing to Việt Nam’s push to move up the value chain. We are delighted to partner with GELEX Group on Industrial Centre YP2C. Its premium ready-built-factory and ready-built hybrid spaces are versatile and well-positioned to cater to the unique requirements of customers, which support the country’s industrial transformation and attractiveness as a key investment destination.”

Nguyễn Trọng Hiền, chairman of GELEX Group, said, “Industrial Center YP2C is being developed, constructed, managed, and operated by Frasers Property Vietnam, leveraging their exceptional capabilities in accordance with international standards. Furthermore, their expertise and understanding of the domestic market in regional infrastructure align perfectly with GELEX’s vision. We are confident that Industrial Center YP2C will exceed the expectations of our customers, serving as the cornerstone of Việt Nam’s premier green and sustainable industrial park.”

As a multinational real estate developer, Frasers Property takes a long-term view for its projects and has committed to green-certify its owned and asset-managed properties as part of its sustainability goals.

Industrial Centre YP2C will be designed to meet LEED (Leadership in Energy and Environmental Design) certification standards with strong sustainability and technology features aimed to support workplace productivity as well as the health and wellbeing of occupiers.

These include the use of construction materials in the project which prioritise natural light, promoting energy efficiency and the enhancement of building life-cycle impact reduction.

Multiple open-end funds record positive performance in 9 months

Multiple open-end funds have reported significant profits since the beginning of 2023, although last year many suffered losses or low profits due to market declines.

Many open-end funds have recorded higher rates of return compared to the market average. Among them, the VinaCapital-VESAF Fund recorded the highest rate with a 37% increase in profits, followed by SSISCA with a nearly 36 per cent increase, VCBF-MGF with 35 per cent, DCDS 34.8 per cent, DCBC 28.7 per cent, while the benchmark VN-Index only 20 per cent.

Nguyễn Hoài Phương, the Investment Director and Fund Manager of VinaCapital-VESAF, stated that in the early months of 2023, the portfolio of the fund underwent significant changes in the proportions of stock groups based on assessments of macroeconomic policies and growth prospects of the economy.

Stock selection of Vietcombank Fund Management Company (VCBF) is based on in-depth analysis and valuation of each company. With careful selection of companies, the fund's portfolio tends to decrease less when the market declines and increase more when the market rises, said Nguyễn Thị Hằng Nga, Deputy General Director of VCBF.

The fund pursues long-term investments and holdings. The company does not engage in continuous buying and selling of stocks because it believes that consistently predicting short-term market trends is impossible, while the fund has the ability to predict the long-term growth of companies. With this strategy, the oldest equity fund managed by VCBF, VCBF-BCF (established in August 2014), has held stocks that have increased in value by 5 to 7 times, such as FPT Corporation (FPT), Asia Commercial Bank (ACB), Phú Nhuận Jewelry (PNJ) and Military Bank (MBB).

VCBF maintains a diversified portfolio, which helps minimise risks during market declines and benefits from market recoveries, she said.

According to Nga, the VCBF-MGF Fund was established when market valuations were very high, but since its inception, the fund recorded an increase of more than 3 times, while the VN30 index increased by 1.9 times.

DC Corporate Investment Fund (DCBC), the second public fund managed by DCVFM, allocates about 20 per cent of its investment capital to bonds and cash and 80 per cent to equities, mainly stocks of large-cap companies with good growth potential. The allocation ratio between these two types of securities can fluctuate +/- 10 per cent, depending on market conditions.

Open-end funds with outstanding results compared to the general market are gradually attracting more investors. However, the prices of fund certificates fluctuate according to the laws of supply and demand and market prospects. Therefore, investors are advised to be patient when investing in fund certificates, especially to maintain investments during market downturns, Nga said.

In uncertain situations, investors should allocate their investments into multiple instalments, and when the market declines, they need to maintain discipline and continue to implement their investment plans.

Risk management has been a priority for open-end funds in recent years, contributing significantly to their effectiveness amidst unpredictable macroeconomic conditions in both domestic and global markets, said Nguyễn Hoài Phương, the Investment Director and Fund Manager of VinaCapital-VESAF.

The selection of stocks based on strict criteria and risk management for the investment portfolio becomes particularly important. Currently, assessing the valuation and growth potential of individual companies and stocks is much more important than looking at the overall market valuation, she said.

Open-end funds are demonstrating flexibility in investment decisions. Currently, as the market has experienced an impressive upward trend for nearly five months since the end of April 2023, causing stocks in general to no longer be cheap, the correct selection of stocks, portfolio restructuring, and appropriate adjustments to the proportions of industry sectors will determine the effectiveness of the fund's investments. 

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