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This represents an increase of 113,281 accounts compared to January 31. The majority of the new accounts were opened by domestic individual investors.
Specifically, domestic individual investors opened 113,097 new accounts, bringing the cumulative total to 7.47 million accounts. Although there was a significant increase in the number of new accounts, it still represents a decrease of about 10 per cent compared to January.
If each trading account corresponds to one investor, domestic individual investors now account for 7.5 per cent of Việt Nam's population participating in the stock market.
The number of securities accounts held by domestic institutional investors increased by 78 accounts, reaching 16,434 accounts.
In the foreign investor group, foreign individuals opened 117 new accounts in the past month, bringing the total to 41,131 accounts. Meanwhile, foreign institutional investors closed 11 accounts, reducing the total to 4,546 accounts.
The trend of opening securities trading accounts is occurring amid a bustling market that is increasingly dynamic and showing positive signs.
According to data compiled by the Hồ Chí Minh Stock Exchange (HoSE) in February, the VN-Index ended the trading month at 1,252.73 points, an increase of 7.59 per cent compared to the end of January and 10.87 per cent since the beginning of the year.
Stock market liquidity has also seen significant improvement, partly reflecting the optimistic sentiment of investors. On average, each trading session in February witnessed a volume of approximately 841.5 million shares with a trading value exceeding VNĐ20.6 trillion. Compared to the previous month, the volume and value increased by 15.9 per cent and 25.1 per cent, respectively.
As of February 29, there were 600 listed securities trading on the HOSE, including 396 stocks, 4 closed-end fund certificates, 14 ETF fund certificates, and 186 secured warrants, with a total listed volume of over 156 billion securities. The market capitalisation of stocks on the HOSE reached VNĐ5.07 quadrillion, an increase of 7.64 per cent compared to the end of January, or 11.23 per cent since the beginning of the year.
PM chairs meeting on monetary policies to remove obstacles, promote growth
Prime Minister Phạm Minh Chính and Deputy Prime Minister Lê Minh Khái chair the meeting to implement monetary policy management tasks in 2024 this morning, which focuses on removing difficulties for production and business to promote growth and ensure macroeconomic stability.
Addressing challenges from global economic uncertainties, Chính said that it is critical for Việt Nam to apply solutions to overcome the difficulties.
Credit growth rate drops in the first two months of this year compared to the same period last year, while the deposit volume remains huge at VNĐ14 quadrillion.
Other problems include high lending rates, rising non-performing loans, stagnant handling of weak banks and slow disbursement of credit support packages.
PM askes participants, especially commercial banks, to discuss and propose solutions to tackle problems regarding interest rates and exchange rates management to strengthen macroeconomic stability and control inflation.
Discussions should also focus on why enterprises still complain that they face capital shortage and difficulties in accessing banking credit, while deposits keep rising on low deposit rates.
He also questions whether the credit flow goes to the targeted sectors, and asks about the best policies to improve enterprises' access to banking credit as well as their capital absorption.
The conference also discusses measures to ensure the credit growth rate as set at 15 per cent for the full year, and continue to cut rates.
Apartment in Ho Chi Minh City below US$82,000 scarce
From the beginning of 2023 up to now, affordable and mid-range apartment segments in Ho Chi Minh City have been scarce.
The reports of the Market Survey Division and S22 Savills Ho Chi Minh City showed that in 2023, the country's economic hub did not have any apartments below VND2 billion (US$82,000) per unit; 90 percent of the mid-range apartment transactions were ranging from VND2 billion (US$82,000) to VND5 billion (US$204,000) per unit.
Some luxury apartment projects in Thu Duc City are now trading from VND100 million (US$4,080) per square meter.
It is predicted that from 2024 to 2026, the number of apartments priced from US$82,000 in Ho Chi Minh City will be scarcer and the supply sources will be mostly from VND5 billion (US$204,000) to VND10 billion (US$408,000) per unit.
Over 40 major Uzbekistani firms to explore co-operation opportunities with Vietnam
As many as 40 representatives of major businesses and corporations from Uzbekistan will arrive in Vietnam from March 18 to March 19 to seek investment opportunities.
The visit will be led by Uzbekistani Minister of Foreign Affairs Bakhtiyor Saidov, who is expected to pay an official visit to Vietnam from March 18 to March 19 at the invitation of Vietnamese Minister of Foreign Affairs Bui Thanh Son.
The visiting enterprises are operating in various fields such as agriculture, agricultural machinery, livestock, food, garment and textile, pharmaceuticals, tourism, commerce, and electronics.
A trade exchange will be held on March 19 for the business communities of both sides to seek investment opportunities and promote trade ties.
Since the establishment of diplomatic ties on January 17, 1992, economic and trade links between the two sides has achieved positive results, but has so far yet to match the potential of both sides. Therefore, there remains ample room for both countries to promote economic and trade ties moving forward.
Specifically, the nation boasts high demand for importing minerals and raw materials from Uzbekistan for production activities, while it can also export electronics, garments and textiles, footwear, and agro- forestry – fishery products, to meet the rising consumption demand in Uzbekistan.
Vietnam Airlines to launch direct flights to Germany’s Munich from October
National flag carrier Vietnam Airlines will begin its direct services from Hanoi and Ho Chi Minh City to Munich, one of the largest cities in Germany, from October this year.
The non-stop flights on the Hanoi-Munich route will be performed twice a week, departing from Hanoi on Fridays and Sundays and from Munich on Mondays and Saturdays.
Meanwhile, there is one weekly flight on the Ho Chi Minh City-Munich route, with the plane departing from the Vietnamese city on Mondays and returning on Tuesdays. Vietnam Airlines will add one more flight to the route from December.
The carrier now has four direct routes from Hanoi and Ho Chi Minh City to Germany’s Frankfurt and Munich. Wide-body Boeing 787 aircraft are used for the services.
Tickets to Munich are now available on Vietnam Airlines’ website, mobile app, and official ticket offices and agents nationwide./.
Vietnam - Argentina's most important market in ASEAN: Official
Vietnam is the most important market of Argentina in the Association of Southeast Asian Nations (ASEAN), said the Secretary of Agriculture, Livestock and Fisheries of Argentina, Fernando Vilella.
Speaking to a Vietnam News Agency reporter on the sidelines of the 2024 Argentina Agricultural Exhibition Expoagro in Buenos Aires, the official said that Vietnam is also a key market in Argentina's trade development strategy.
He emphasised that Vietnam is an important trade partner and a major customer of Argentina's agricultural industry as Vietnam is one of the leading soybeans/corn importers of Argentina.
He also expressed his wish for stronger trade cooperation between Argentina and Vietnam, including the exchange of high-quality products and the import of Vietnamese goods.
Meanwhile, agricultural engineer Mariano Winograd said he is participating in a project on cooperation between Vietnam and Argentina in aquaculture, adding that a group of Vietnamese agricultural experts will arrive in Argentina next month to implement a cooperation project with the northern province of Misiones in growing dragon fruit, citrus, and guava.
Eduardo Larocreus, a member of the bioeconomy advisory board under the Ministry of Economy of Argentina, expressed his desire to exchange experiences, knowledge and technology for peri-urban bioeconomy development with Vietnam, towards sustainable development and environmental protection.
Argentina is one of Vietnam's leading partners in the Americas. In the 2007 – 2022 period, bilateral trade increased nearly 13 times, from 378 million USD to 4.88 billion USD, making Argentina the 5th largest trading partner of Vietnam in the Americas. Meanwhile, Vietnam is Argentina's 6th largest trading partner. Argentina is currently one of the leading suppliers of corn and animal feed to Vietnam. Agricultural products make up 92% of Vietnam's import value from Argentina.
Vietnam's main exports to Argentina include phones and components; computers, electronic products and components; footwear; machinery, equipment, spare parts; raw materials and accessories for garment-textiles and footwear.
Cashless payment in Vietnam increases popularity
The State Bank of Vietnam has just informed of positive signs for payment without using cash in the country, proving that this method has been wholeheartedly welcomed by the public.
Statistics from the Vietnam State Bank reveal that until the end of January 2024, the number of ATMs in the country was nearly 21,000. This was a drop of 1.7 percent compared to this time last year. Payment via ATMs reduced by 15.14 percent in quantity and 18.76 percent in value.
Meanwhile, the number of POS terminals saw a rise of 32.7 percent to reach about 555,000 items. This shows a gradual shift to cashless payment in the community. This payment type experienced a growth of 63.3 percent in quantity and 41.5 percent in value.
The figures for payment via the Internet also increased by nearly 58 percent in quantity and 32.4 percent in value; via mobile devices by 69 percent in quantity and 41 percent in value; and via QR codes by even 893 percent in quantity and 1,062 percent in value, which is extremely impressive.
Transport firms implement policies to motivate workers in key construction projects
Transportation companies have implemented numerous favourable policies on accommodation and salary incentives to motivate and inspire workers in their tasks, aiming to accelerate the completion of transportation projects across the country.
At the construction site of Package XL01 of the North-South Expressway project passing Chí Thạnh-Vân Phong area, the headquarters of the operations committee of Đèo Cả Group is designed with luxurious and modern facilities, including office spaces, meeting rooms, dining areas and accommodations.
Trương Công Đạt, director of Package XL01 operations committee, stated that the accommodations for staff and workers are designed to be self-contained, equipped with hot water tanks, air conditioning, and fans to ensure the health of the workers. A mini football field and a relaxing landscape area are set up for workers to exercise after a hard-working day.
The total investment cost for the area is over VNĐ8 billion (US$323,980), he said.
With 25 years of experience in construction and transportation, Đỗ Ngọc Kiên, who was in charge of mechanical construction at Tuy An Tunnel of Package XL01, said the 30 workers under his management said what reassures them about their workplace was the accommodation policies.
"In the past, construction site accommodations were often makeshift camps with very harsh living conditions, especially for days of scorching heat, torrential rain, or chilly strong winds. Now the dining and resting areas for workers have been much improved, ensuring their physical and mental well-being," Kiên said.
Kiên said the primary factors that keep workers committed to a company is salary, bonuses and living standards.
Engineers and workers have never experienced delayed payments or dissatisfaction with their welfare benefits, he stressed.
Having been involved in the construction of several tunnels such as Cù Mông and Cổ Mã, Bùi Hồng Vận, head of the drilling team at Tuy An Tunnel, said work is always steady, with tasks never running out.
"We, as transportation workers, are always away from families. Therefore, the group has a policy to boost our morale such as arranging buses for us to return home during Tết holidays. We have social insurance paid, receive fair and timely wages, and bonus for outstanding performance,” he said.
“The meals provide adequate nutrition. Those who work late are provided with supper to maintain their health for work. Therefore, many workers want to stay long-term with the company,” Vận said.
In recent years, a series of important national transport projects have received more investment to meet the Prime Minister’s requirement on speeding up progress.
As one of the few domestic transportation enterprises recruiting foreign experts and skilled engineers with favourable salaries, Ngọ Trường Nam, CEO of Đèo Cả Group, said the group has never delayed salary of the 7,377 employees of the company.
“Even in the most challenging times, instead of resorting to temporary layoffs or wage cuts for employees, we tried to allocate suitable work for workers and prepared precautionary financial reserves to manage risks. We have established a culture of never owing or delaying salaries for employees,” he said.
As planned, the workload will continue to increase by approximately 30 per cent compared to the previous year due to the construction of new projects such as the Đồng Đăng-Trà Linh Expressway, Hữu Nghị-Chi Lăng Expressway, Khánh Hoà-Buôn Ma Thuột Expressway, HCM City’s Ring Road 3 and Ring Road 4 passing through Bình Dương Province.
The group’s demand for labour recruitment this year is expected to reach over 3,000 employees.
Nam said the group will organise training activities, facilitating access to new knowledge for employees and applying it practically to enhance the quality of work.
Phạm Văn Khôi, chairman of the Board of Directors and CEO of Phương Thành Tranconsin Investment and Construction Company, stated that as transportation projects resume, transportation enterprises need policies to attract high-quality labour and keep workers returning to their previous jobs.
“The construction of expressway projects demands expedited progress, involves numerous large-scale items, and entails complex techniques, so high-quality workers are a crucial factor, determining the success or failure of construction companies,” he said.
Khôi said to achieve this, transportation enterprises must prioritise welfare schemes regarding salaries and bonuses for workers.
Hanoi concentrated promotion programme expects 2,000 businesses
Hanoi’s concentrated promotion programme, slated for May, July, and November this year with discount of up to 100%, expects the engagement of 1,000-2,000 businesses from all economic sectors, according to the city Department of Industry and Trade.
The department said that along with meeting shopping demands of locals, the programme aims to provide chances for businesses to sell their products and reduce inventories, thus promoting production and business activities, contributing to boosting the city’s socio-economic development.
The programme will start on April 30, featuring 100 booths with promotion from 30-100%.
In November, the programme will take place in all localities across the capital city, with about 800-1,000 venues. Various events have been planned within the programme’s framework, including a Hanoi shopping festival and Hanoi Mega Sale events.
The highlight of the programme in November is the Hanoi Midnight Sales 2024 and Black Friday events from November 29-30 with the involvement of 200 businesses, trade centres, supermarkets, and business facilities.
The programme is expected to connect supply and demand, promote domestic consumption and boost sales revenue for businesses, thus increasing the retail sales of products and revenue.
Workshop to examine bright investment prospects in 2024
Leading economic experts and business representatives will examine bright spots of investment in Vietnam this year at a workshop to be held in Hanoi on March 26.
Along with presentations delivered by leading think tanks, the workshop will include two sessions that are expected to touch upon a number of macro-economic issues such as trends of capital flows, potential investment spheres, experiences in attracting foreign direct investment (FDI) capital flows, and measures to help businesses maximise the benefits from opportunities from these capital flows.
The event also provides an ideal venue for experts to evaluate signs of improvement in the real estate and stock markets, thereby identifying potential investment opportunities moving forward.
During the first two months of 2024, Vietnamese FDI attraction increased by nearly 40%, with the Purchasing Managers' Index (PMI) in February reaching 50.4 points, a slight rise compared to January’s 50.3 points.
The figure indicates the improvement of the manufacturing industry as the number of new export orders has increased significantly.
By devising concrete strategies through the workshop, Vietnamese businesses are fully capable of taking advantage of opportunities from FDI capital flows and can be deeply integrated into the world economy.
Vietnamese products to make way to Japanese supermarket’s shelves
Vietnamese agricultural products have more opportunities to hit the shelves of Japanese supermarket chain Aeon as Aeon Topvalu will attend the Vietnam Int'l Sourcing 2024 event to be held by the Ministry of Industry and Trade on June 6-8 in HCMC.
On the threshold of the event, General Director of Aeon TopValu Vietnam Shiotani Yuichiro had a working session with the MoIT’s European–American Market Department, saying he has a great expectation when joining the sourcing fair.
There is a great demand for Vietnamese agricultural products and processed products in the markets where Aeon is present, he said, adding through last year's event, Aeon TopValu found suppliers for its supermarket chain in China, Thailand, and Malaysia.
Along with persuading its purchasers from China, Japan, Malaysia, Thailand, and Vietnam to engage in the event, Aeon TopValu will continue joining hands with the MoIT to organise the Vietnamese Products Week in Japan in 2024, providing more chances for Vietnamese goods to break into Japan – the No.1 fastidious market in Asia, he said.
The purchasers want to seek Vietnamese producers who can meet Aeon’s criteria and standards to become the retailer’s sustainable suppliers not only for its supermarkets in Vietnam but also for its system across the globe, according to the Aeon representative.
The event aims to promote direct linkages between Vietnamese manufacturing and exporting enterprises with foreign retail distribution networks and importers. It includes a series of workshops, seminars, business matching activities, and an exhibition called “Vietnam International Sourcing Expo”.
This is the annual premier sourcing fair in Vietnam, bringing together the leading manufacturers and exporters in the country.
Kon Tum to develop 50 new OCOP products
Kon Tum will develop 50 new OCOP products by the end of 2024 to leverage the comparative advantages of the province.
The People's Committee of Kon Tum Province recently issued a plan to implement the One Commune One Product (OCOP) Programme in 2024, with the goal of having at least 250 OCOP products rated three stars or above by the end of the year, an increase of 50 products compared to 2023.
Specifically, among the 50 OCOP products rated three stars or above that Kon Tum Province aims to produce in 2024, there are seven potential five-star products, five four-star products, and 38 three-star products.
The seven potential five-star products, including Kon Tum Swallow Nest Water by Kon Tum Swallow Nest Company; Sáu Nhung Special Coffee, Tinh Coffee by Sáu Nhung Agriculture, Production, and Trading Cooperative; Ngọc Linh Ginseng Tea Powder, Ngọc Linh Ginseng Collagen Drink by Ngọc Linh Tu Mơ Rông Kon Tum Ginseng Company; De Măng Đen Coffee Powder by Măng Đen Coffee Group Company; and Authentic Tea product by Đông Trường Sơn Clean Tea Cooperative, will be proposed by Kon Tum Province for evaluation and recognition as national OCOP products by the central government.
In addition to developing new OCOP products, Kon Tum Province continues to maintain and improve the quality of OCOP products that have already been recognised with stars.
The province aims for at least 30 per cent of OCOP entities to establish closed value chains, linked to stable raw material areas, with priority given to OCOP products that have been evaluated and rated.
The province aims for around 50 per cent of OCOP entities to be cooperatives and 30 per cent to be small and medium-sized enterprises, with at least 30-50 per cent of OCOP entities participating in modern retail channels.
The province will implement a pilot model directed by the central government under the OCOP Programme phase 2021 - 2025, focusing on developing macadamia raw material area and gradually enhancing processing capacity and developing products according to OCOP standards, aiming towards five-star OCOP products.
Kon Tum also prioritises the development of OCOP products that leverage the comparative advantages of the locality, focusing on building stable raw material areas, prioritising products that use local labour, and avoiding adverse effects on the environment.
It aims to minimise unprocessed raw products.
Currently, Kon Tum province has 200 OCOP products rated three stars or above, including one product that is a five-star national OCOP product: Darmark Roasted Ground Coffee by Nguyễn Huy Hùng Coffee Company.
Hanoi to hold trade events throughout 2024
The capital city is to hold a series of trade promotion programmes in April, May, July and November this year, according to the city's Department of Industry and Trade.
The events are expected to attract more than 2,000 businesses from home and abroad and to create favourable conditions for businesses to stimulate demand, reduce inventory and contribute to the city's economic life.
According to the department, the events have been scheduled to begin in April and continue throughout the year in May, July, and November, which will form the city's main push to increase consumer spending and deliver high-quality products at discounted prices. Trade promotion events including the "Hà Nội Shopping Festival", the "Hà Nội Mega Sale", the "Golden Day - Shocking Prices" and the "Hà Nội Midnight Sale" are the key highlights of this year's programme, which thousands of businesses have signed up for.
Trần Thị Phương Lan, director of the department, said the programme has been popular with the consumers and well-received by the business community in the last few years.
Favourable policies needed to lure investments via M&A deals: Experts
Compared to three years ago, domestic investors outperformed on the merger and acquisition (M&A) market, but the most valuable deals still belonged to foreign investors, heard a conference on M&A trends in Ho Chi Minh City on March 12.
The event was organised by the Business Association of High-Quality Vietnamese Products in coordination with relevant units.
According to the Vietnam M&A Transformation report by KPMG, the total value of M&A transactions in Vietnam reached 4.4 billion USD in the first ten months of 2023, involving over 260 deals. The average deal value stood at 54.5 million USD.
Nguyen Tuan Anh, a lecturer at RMIT University Vietnam, Saigon South Campus, said consumer goods and non-essential goods among the potential industries in Vietnam's M&A market. Investors will target businesses with stable and long-term product investment strategies including agriculture and food with the basic foundation of the economy - food production and distribution, he added.
To create an open environment for the M&A market and attract foreign investments, experts recommended that it is necessary to promulgate more favourable policies for divestment activities, along with shortening the duration for a M&A deal.
It should be noted that environmental, social, governance (ESG) trends will increase and become one of the key factors driving M&A deals. Statistics showed that every year, at least two out of five deals require ESG during the appraisal process.
Regarding the M&A trend, Huynh Thanh Binh Minh, Director of TAEL Partners Investment Fund in Vietnam, pointed out that completing a capital call and carrying out an M&A deal involve the engagement of many units. Businesses need to proactively evaluate the company's strengths and build a management strategy that has the ability to attract capital, she said, adding that it is necessary for them to restructure corporate governance activities, business strategies, market orientations and brand building.
With such favourable conditions as signing many free trade agreements, a large population and stable geopolitics, Vietnam is a potential M&A market. However, insiders said Vietnam must have rational policies and mechanisms to attract capital in various fields through M&A deals as the capital flows into Southeast Asian countries are the same./.
Forum connects Binh Phuoc with European businesses
The southern province of Binh Phuoc introduced its potential and incentives to invite European investors to invest in industry, trade, and high-tech agriculture in the province at a business forum held in Dong Xoai city on March 12.
Giving a brief introduction of Binh Phuoc, Chairwoman of the provincial People’s Committee Tran Tue Hien said her province, about 110km from Ho Chi Minh City, is a rubber and cashew production hub. It owns an abundant land reserve for developing industrial parks, trade, service and urban areas, and high-tech agricultural projects.
The province is home to comprehensive and gradually modernised infrastructure, along with 13 industrial parks that cover 4,686 ha and has an occupancy rate of 69%.
She went on to say that there are 413 foreign direct investment (FDI) projects worth US$4.25 billion in Binh Phuoc at present. They include 17 projects with combined capital of US$523 million from Europe, accounting for 12.3% of the total.
With good infrastructure, good human resources, good policies, and good public services, Binh Phuoc will serve and satisfy investors, including members of the European Chamber of Commerce in Vietnam (EuroCham), at its best, Hien stated.
The official pledged that her province will always stand side by side with businesses and are ready to create the best possible conditions for foreign investors, including European ones.
Gabor Fluit, chairman of EuroCham Vietnam and CEO of De Heus Asia, said Binh Phuoc holds a strategic location in the southern key economic region and acts as an important gateway connecting Vietnam with Cambodia and other regional countries. With an abundant land resource, it offers attractive investment chances in agriculture, aquaculture, food processing, and large-scaled production. Besides, favourable climate conditions also make it an ideal candidate for large renewable energy projects.
Thanks to the EU - Vietnam Free Trade Agreement (EVFTA), under which nearly 99% of tariffs will be eliminated and reduced in the next decade, Binh Phuoc is well-positioned to benefit from the expanded access to the EU market with 500 million people, he said.
Deputy Minister of Agriculture and Rural Development Phung Duc Tien said EuroCham businesses are not only technologically strong but also financially capable while the EU is a highly potential market for Vietnam’s agricultural sector. Therefore, the presence of European businesses will not only help Binh Phuoc sustainably develop agriculture but also contribute to local socio-economic development.
PV Power's electricity sales drop nearly by half in Feb
The PetroVietnam Power Corporation (PV Power)'s electricity sales revenue for February 2024 dropped by nearly 45 per cent compared to the same period last year, according to the latest report by the company.
PV Power pointed out that it should be noted that February is the end of the dry season in both the northern and southern regions of the country, as well as the beginning of the dry season for the central region. February also coincides with the Tết (Lunar New year) Holiday, a period typically sees significantly lower demand for power.
The average electricity price for the period was reported to be around VNĐ1,420 per kWh, lower than the average variable fuel price used in PV Power's gas power plants, which has resulted in negative effects on the plant's finances and operation.
The largest revenue contributors were the Cà Mau 1 and Cà Mau 2 power plants, located in the southernmost province of Cà Mau, which reported VNĐ839 billion (US$34 million) in sales, followed by the Vũng Áng 1 power plant with sales of over VNĐ645 billion.
Measures were taken to ensure maximum efficiency was achieved at the plants. As prices increased toward the end of the period, the plant's operation has been largely considered as effective, according to PV Power.
Meanwhile, other power plants including the Đakđrinh Power Plant, the Hủa Na Power Plant, Nhơn Trạch 1,2,3,4 power plants have been operated at different capacities, depending on system demand during the period and minimising the use of resources.
Regarding the completion of the Nhơn Trạch 3 and Nhơn Trạch 4 power plants, the overall progress has been reported at 80.2 per cent, slightly below the 86.2 per cent target. PV Power and the Electricity Trading Company (EPTC) have signed a power purchase agreement (PPA) as both sides agreed on the electricity price for the plant's output.
This month, PV Power has set a sales revenue target of VNĐ3 trillion, a 6.6 per cent increase from the same period in the previous year and almost double the figure for last February.
Corporate bond market quiet in February
The corporate bond market is quiet in the beginning of this year with only three separate corporate bond issuances in February with a total value of VNĐ1.16 trillion (US$47 million), 68 per cent lower than January.
According to Việt Nam Bond Market Association, the market remains gloomy when regulations on corporate bond issuance are tightened, including criteria for professional individual investors and credit rating.
Specifically, Hải An Transport and Loading Joint Stock Company (HAH) successfully issued a batch of VNĐ500 billion worth of bonds at a fixed rate of 6 per cent per year, five-year term. The rate is the lowest in the market in the first two months of this year, only slightly higher than the current deposit rates of 4-5 per cent.
Hà Nội Highway Investment and Construction issued a batch worth VNĐ550 billion with 117-month term. The rate for the first period is 10.1 per cent and the following periods is the average medium-term lending rate of Vietcombank, BIDV, Vietinbank and Agribank.
Lạc Hồng Tourism issued VNĐ115 billion worth of bonds of three-year term. The rates for the first four periods are fixed at 9 per cent per year and for the following periods, are the average of 12-month deposit rate of Vietcombank, BIDV, Vietinbank and Agreement plus 4.3 per cent per year.
Data from WiGroup showed that the real estate and banking sectors which used to be major issuers in the market have not seen any new issuance in the first two months this year.
The rates average 8.05 per cent in February, lower than the same period last year at 10.77 per cent.
This demonstrated that loosening monetary policy, low banking interest rates and a sharp decrease in Government bond interest rates over the same period support the rates of financial assets such as bonds, according to WiGroup.
A total of VNĐ5.965 trillion worth of corporate bonds is issued in the first two months of this year, two public issuances worth VNĐ2.65 billion and two separate issuances worth VNĐ3.315 billion.
Also in February, businesses bought back VNĐ2 billion bonds before maturity, dropping by 68 per cent against the same period last year.
Thus, it is estimated that more than VNĐ255 trillion bonds will mature by the year end, 38.4 per cent are of the real estate sector.
Seven issuers announced late payment of principal and interest in the month with a total value of about VNĐ6.2 trillion.
According to Đỗ Bảo Ngọc, Deputy Director of Việt Nam Construction Securities Joint Stock Company, the biggest concern of investors today when buying corporate bonds is ensuring safety of their capital.
The violations of Tân Hoàng Minh Group and Vạn Thịnh Phát in the corporate bond market, along with a number of real estate companies failing to pay principal and interest, have made investors cautious.
“The problem is no longer about yields. Even if bond yields are raised, investors are still cautious. This is a common psychology that holds back transactions in the bond market,” Ngọc said.
Investors are now paying more attention to legal regulations and carefully studying information and operation of issuers, including financial capacity and credit rating.
According to economist Đinh Trọng Thịnh, tightened regulations will help the bond market be safer and more sustainable in the long run, providing an effective channel for capital raising.
Plastics & Rubber Vietnam 2024 exhibition kicks off in HCM City
The 11th international exhibition on plastics and rubber technology, materials and machinery opened in Ho Chi Minh City on March 13, with the participation of more than 60 booths showcasing products in the plastics-rubber industry from 12 countries and territories, including the UK, Germany, China, Singapore and Vietnam, among others.
With a total area of 3,300 sqm, the three-day Plastics and Rubber Vietnam 2024 offers an opportunity for domestic and foreign businesses to access the latest technologies in the industry as well as seek potential business partners.
Speaking at the opening ceremony, General Director of Informa Markets Vietnam Ben Wong said that the event is expected to connect leading suppliers from all around the world with Vietnamese enterprises while promoting international trade across the plastics and rubber industry.
Besides, a series of seminars will be held in the framework of the exhibition on different perspectives on circular economy and recycling in the plastics and rubber industry, he added.
Commercial Counsellor at the Austrian Embassy in Vietnam Dietmar Schwank shared that Vietnam is a potential market for plastic, rubber and many other industries. The Austrian Embassy's Commercial Section Ho Chi Minh City is always ready to support Vietnam in investment, technology transfer and specialised experience, he said.
According to Mordor Intelligence, the scale of Vietnam's plastics market is expected to reach 10.92 million tones in 2024 and 16.36 million tonnes by 2029, growing at a compound annual growth rate (CAGR) of 8.44% in the period of 2024 – 2029.
Despite effects of the global economic situation, stimulus policies and business support activities have contributed to maintaining the growth of Vietnam's plastic industry. Along with plastics, Vietnam's rubber industry also showed positive signs in the first months of the year. The industry's exports in January 2024 reached 260,000 tonnes, worth 365 million USD, up 92.6% in volume and 99.8% in value year on year./.
Finance Ministry announces to pay visits to insurance enterprises
The Ministry of Finance announced that it has a plan to pay visits to six insurance enterprises in 2024.
According to the Ministry’s plan, inspectors from the Ministry will work with six insurance enterprises on the implementation of insurance sales through credit institutions and branches of foreign banks in the field of personal longevity insurance.
At the 31st session of the National Assembly Standing Committee, Minister of Finance Ho Duc Phoc reported a number of contents related to the group of issues to the NA.
The head of the financial industry said that in 2024, the Ministry of Finance plans to inspect 6 insurance enterprises, focusing on inspecting the implementation of insurance sales through credit institutions and foreign bank branches about longevity insurance.
According to the above report, Vietnam's insurance market has experienced more than a quarter of a century of high growth with average rate of 20 percent per year and is relatively stable. Insurance companies basically completed their strategy for insurance market development from 2011 to 2020.
However, due to rapid development, in recent times, the insurance market, especially life insurance, has had a number of problems regarding the quality of consulting activities, as well as care and customers’ insurance benefits.
At the same time, the market only had traditional distribution channels in insurance in the past; however, in recent times, many other distribution channels have been formed. Various alternative distribution channels include organizational agents, typically distribution channels through banks or bancassurance - an arrangement between a bank and an insurance company, through which the insurer can sell its products to the bank's customers. The insurance company benefits from increased sales and a broader client base without having to expand its sales force. Bancassurance helps insurance operations become more diverse, but also creates more complexity, which needs to be identified and rectified to operate healthily.
According to Finance Minister Ho Duc Phoc, in 2022 and 2023, the Ministry of Finance inspected 10/17 life insurance enterprises that sell insurance through credit institutions and branches of foreign banks with insurance premium revenue through the bancassurance channel accounting for 96.83 percent of the total revenue from the bancassurance channel of the entire life insurance market.
Through inspection, inspectors have discovered violations through the bancassurance channel such as violations in promulgating processes and regulations and violations related to product fee schedules.
Since then, the authorities have proposed a total financial settlement of VND 21,000 billion. Additionally, inspectors imposed administrative sanctions against 2 insurance enterprises collecting VND310 million along with a number of other additional sanctions.
In 2024, according to the approved plan, the Ministry of Finance plans to inspect 6 insurance enterprises. In particular, there will be an inspection of the implementation of insurance sales through credit institutions and foreign bank branches for two life insurance enterprises namely Mirae Asset Prévoir Life Insurance Company Limited and Cathay Insurance Company Life Vietnam.
To address the market, the Ministry of Finance has submitted to competent authorities for promulgation and additional amendments of many legal regulations to promptly adjust arising market problems and enhance transparency to protect insurance buyers.
Specifically, the Ministry will standardize several regulations on insurance contracts to ensure the rights of insurance participants and supplement more regulations to enhance the responsibility of insurance enterprises in the process of consulting and concluding insurance contracts to make it clearer while insurance buyers are given correct advice, enough information, and clarity about product so that they can choose right insurance products voluntary as per their real needs.
Moreover, the Ministry will supplement additional regulations to prevent banks from forcing people to buy insurance or giving incorrect advice on investment-linked insurance products.
Accordingly, the Minister said that credit institutions operating as insurance agents must clearly explain to customers that insurance products are not products of credit institutions. Buying insurance is not a mandatory condition to use other products and services of credit institutions operating as agents. Such credit institutions are not allowed to carry out insurance agency activities such as the introduction of various insurance kinds, offer to sell, or arrange the conclusion of investment-linked insurance contracts for customers within 60 days before and after 60 days after the full loan disbursement date in order to avoid bank staff forcing loan borrowers to buy insurance.
For investment-linked insurance products, insurance agents or employees in insurance agency operations must record the consulting process, including the customer's confirmation of insurance participation on a voluntary basis and in accordance with financial needs. The insurance company is not allowed to issue a contract in case the recording content does not contain the insurance buyer's confirmation of participating in insurance on a voluntary basis.
SBV withdraws VND30 trillion from system
The State Bank of Vietnam (SBV), the central bank, has issued nearly VND30 trillion of G-bonds after a four-month hiatus.
The central bank sold VND15 trillion of 28-day G-bonds to six of 18 entities participating in the auctions held on March 11. A similar volume of G-bond was sold to seven of 14 bidders on the following day, with all having an annual coupon of 1.4%, according to the Vietnam News Agency.
The latest G-bond sale comes amidst a gradual decline in interbank interest rates in recent weeks. However, the G-bonds offered at this auction come with a much lower coupon rate than the 2.13% for the one-month term in the interbank market, indicating an excess of liquidity in the banking system.
Market watchers said that this bond issuance was aimed at reducing idle cash in the banking sytem and stabilizing the Vietnam dong-U.S. dollar exchange rate.
The resumption of G-bond sale echoes what was done in September 2023 when the exchange rate came under pressure as a result of abundant liquidity and sluggish credit growth.
Between September 21 and November 8 last year, the SBV issued a staggering VND360.3 trillion of 28-day G-bonds.
Deputy Governor of the SBV Pham Thanh Ha said that the decision to resume bond issues would help regulate short-term bonds and reducing excess liquidity in the system to minimize impact on interest rates.
He emphasized the importance of balancing interest rates and exchange rates despite stable interbank market rates.
On February 22, seasonal factors led to a spike in interbank interest rates, squeezing short-term liquidity and pushing overnight rates up to 3.7% per year. However, these rates stabilized towards the end of the month, returning to lower levels.
Since then, overnight interest rates have plummeted to 0.8% per year, down by a significant 78% from their peak. Short-term rates, including those for tenors of one month or shorter, have also experienced notable declines, now ranging between 1.07% and 2.06% per annum.
More land handed over to second metro line project in HCMC
More cleared land has been handed over to HCMC’s second metro line, which connects Ben Thanh Market in District 1 and Tham Luong Depot in District 12, bringing the total area of land already cleared for the project to 90%.
District 3 held a ceremony this morning, March 12, to hand over 42 pieces of land taken back from 42 households and 15 pieces of land from 15 organizations to the Management Authority for Urban Railways of HCMC to build Metro Line No. 2.
The total area of land needed to be cleared for the project in District 3 is nearly 7,200 square meters, with 112 households and organizations affected, according to the district authority.
The 11-kilometer-long Ben Thanh-Tham Luong urban railway will pass through six districts and require over 251,000 square meters of land from 585 households and organizations.
Originally scheduled for completion in 2026, the completion date of the project was later rescheduled to 2030.
Metro Line No. 1, HCMC’s first urban railway, links Ben Thanh Market and Suoi Tien Theme Park in Thu Duc City. It is expected to be put into commercial service in July this year.
RoK’s Gyeongbuk, Chungbuk firms engage in business talks in Hanoi
Nearly 100 one-on-one business meetings between Vietnamese importers and enterprises from Gyeongbuk and Chungbuk provinces of the Republic of Korea (RoK) have been arranged during a recent trade exchange programme in Hanoi, said the Korea Trade-Investment Promotion Agency in Hanoi (KOTRA Hanoi).
The participating firms shared the view that the event offered an opportunity for them to engage in new cooperation in the post-COVID-19 recovery period.
They brought to the event high-quality products, including cosmetics, fresh fruits, fruit juice, functional foods, medicines, dental equipment and electronics.
The programme was the inaugural RoK-Vietnam trade event of 2024.
Nearly 50 trade delegations and exhibitions are scheduled this year, said Tran Thi Hai Yen, head of the KOTRA Hanoi Office.
KOTRA Hanoi has been instrumental in facilitating numerous trade events between Vietnamese enterprises and Korean firms annually, with the objective of promoting the entry of the RoK's high-quality products into the Vietnamese market and fortifying economic ties between the two nations./.
HortEx Vietnam 2024 draws nearly 200 agricultural brands
HortEx Vietnam 2024, the sixth international exhibition and conference for horticultural and floricultural production and processing technology in Vietnam, opened in Ho Chi Minh City on March 13.
The event attracted over 200 exhibitors from 25 countries and territories around the world, including the Netherlands, China, France, Germany, Greece, Thailand, the US, the UK and Australia, among others. The three-day event is is expected to welcome 8,000 visitors.
Kuno Jacobs, Director of Nova Exhibitions, said that HortEx Vietnam has become the largest professional meeting place in Southeast Asia for businesses and experts in the industry, and helped Vietnamese businesses access advanced technology in the world and expand export markets.
Director of the Department of Crop Production under the Ministry of Agriculture and Rural Development Nguyen Nhu Cuong said Vietnam's fruit and vegetable export turnover reached a record of nearly 5.7 billion USD in 2023. The vegetable, flower and fruit market is expected to develop rapidly and become a bright spot in the context that Vietnam's economy is forecast to grow even more positively in the coming time.
HortEx Vietnam 2024 is a good opportunity for Vietnamese and international businesses to cooperate and share with each other as well as seek and expand markets. At the same time, through seminars and forums, experts and businesses share information on the current situation and solutions to overcome limitations in the production and export of vegetables, flowers and fruits of Vietnam towards sustainable development, he noted.
On the occasion, HorEx Vietnam organisers signed cooperation agreements with the German Agricultural Society (DLG), the organizer of Agritechnica, the world's leading agricultural machinery exhibition.
In addition to showcasing equipment and technologies in the vegetable, flower, and fruit field, the expo will feature thematic seminars, B2B business matchmaking, and a fruit and vegetable export forum./.
Vietnam welcomes Denmark's renewable projects: Deputy PM
Vietnam always rolls out the red carpet for projects that lay the foundation for the development of the renewable energy industry, helping the Government complete policies and the investment environment in the sector, Deputy Prime Minister Tran Hong Ha said on March 13.
He made the statement while hosting a reception for Deputy Head of Mission of the Danish Embassy in Vietnam Mette Ekeroth and President and CEO of Vestas Group Anders Runevad.
Highlighting the comprehensive cooperation between the two countries as well as Denmark’s support for Vietnam over the past years, particularly in the areas of environment and climate, Ha said Vietnam is carrying out the Just Energy Transition Partnership (JETP) by working closely with G7 countries, Denmark and international partners.
Vietnam is accelerating a shift to clean energy from fossil fuels and developing an industrial renewable energy ecosystem and services while upgrading power transmission lines, and speeding up smart power grid construction, he said. He called on Denmark to share experience and provide technological and financial support for the country so that it can carry out such initiatives as greenhouse gas emissions reduction, green transition and just energy transition.
The Deputy PM highlighted that Vietnam is completing an action plan to realise the National Power Development Plan VIII (PDP VIII) to ensure a suitable, balanced and stable structure of power sources, including thermal power, hydropower, solar power and wind power. He also discussed the guarantee of the grid’s safety as well as the optimisation of investment and economic efficiency.
Against this backdrop, the country hopes to receive Denmark’s support in terms of tools, experts, technologies and measures to sew up the plan, branch out renewable energy and quickly shift from fossil fuel-based energy to renewables, he said.
He expressed his wish that both sides will continue prioritising cooperation in the green economy and completion of the legal system for power, energy, circular economy and carbon market, while promoting collaboration between businesses and encouraging them to carry out renewable energy projects.
Mette Ekeroth, for her part, affirmed that the establishment of the Green Strategic Partnership between Vietnam and Denmark has an important role to play in elevating the bilateral cooperation in sustainable development, climate change adaptation, green transition and energy transition to a new high.
Denmark is proud to be a partner of Vietnam, helping the country pen its energy outlook report so as to roll out the power development plan soon, she said, adding the country commits to joining hands with Vietnam to deliver on the JETP.
Meanwhile, the Vestas leader spoke highly of Vietnam’s priority to develop renewable energy in its PDP VIII, saying his group established a branch in Vietnam and wants to contribute to the strategy that makes Vietnam an industrial hub for renewable energy in the region./.
Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes
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