Two major stock exchanges saw a surge in revenue in the first half of 2020.

The average liquidity for a trading session in the first half of 2020 rose 24% year-on-year to VND5.8 trillion (US$250 million).

Amid the Covid-19 pandemic that causes severe economic impacts, strong liquidity in Vietnam’s stock market was a key reason leading to a surge in revenue of the country’s two major stock exchanges.

The Hanoi Stock Exchange (HNX) in its financial statement for the second quarter reported a 28% rise year-on-year in revenue to VND336 billion (US$14.48 million), of which the majority came from securities transaction, making up 88% of the total revenue, followed by government bond auctions with 4.8%.

This resulted in the stock exchange’s gross profit of VND289 billion (US$12.46 million), up 31% year-on-year, and a pre-tax profit of VND231 billion (US$10 million), up 8.4%.

Similar to HNX, the Ho Chi Minh City Stock Exchange (HOSE), home to the majority of large-caps, posted revenue of VND382 billion (US$16.46 million), up 17% year-on-year, with securities transaction accounting for 85% of total.

HOSE recorded an increase of 21% year-on-year in gross profit to VND351 billion (US$15.13 million) and a pre-tax profit of VND239 billion (US$10.3 million), up 19%.

Statistics from VNDirect Securities revealed the average liquidity for a trading session in the first half of 2020 rose 24% year-on-year to VND5.8 trillion (US$250 million), thanks to a surge in the amount of capital injected into the stock market.

It is estimated that over 25,000 new securities accounts were registered monthly in the January – June period, an increase of 53% year-on-year.

Vietnam was one of the best performing markets in the world in August as the VN-Index increased by 10.4% month-on-month.

A report from Viet Dragon Securities Company (VDSC) suggested the upward momentum of August and the expectation of new foreign capital could support the benchmark VN-Index to surpass its June peak at 900 points, and possibly reach 920.

Mooncake food safety tightened amid COVID-19

There is only three weeks to go until the Mid-Autumn Festival, a very special time of year in Vietnam, especially for kids. With COVID-19 making its presence felt, local mooncake producers are working hard to guarantee food safety so that customers can still have a festival full of joy.

Do Thi Minh Kha from Go Vap district in Ho Chi Minh City found a reputable shop to buy mooncakes as gifts for her family.

Food safety is the first thing she thinks of, followed by quality, price, and packaging.

Viewing it as a competitive edge, many mooncake businesses now pay greater heed to food safety. Having lived with COVID-19 for many months, companies have become proactive in disease prevention and control, focusing on controlling production chains and using technology to ensure safety.

In addition to controlling ingredient supplies, Ho Chi Minh City is also focusing on supervising distribution channels. Local agencies are working hard to address products lacking a clear origin or with poor quality that could harm consumers’ health.

Though this year is substantially different to previous years, companies haven’t narrowed production but instead planned to better meet market needs. Some expect improved turnover, believing that customers will still be willing to pay for traditional flavours during the Mid-Autumn Festival./.

Nine Vietnamese rice varieties given tariff quotas in EU

Nine Vietnamese fragrant rice varieties will enjoy tariff export quotas to Europe under the Europe-Vietnam Free Trade Agreement.

As part of the agreement, the EU will give Vietnam a quota of 80,000 tonnes of rice with a zero-per-cent tax rate per year, including 30,000 tonnes of milled rice, 20,000 tonnes of unmilled rice and 30,000 tonnes of fragrant rice.

The EU will also fully liberalise broken rice, helping Vietnam export an estimated 100,000 tonnes to the EU annually.

For products made from rice, the EU will bring the tax rate down to 0 percent after three to five years.

Rice plantations in Mekong Delta provinces account for about 25 percent of the total cultivated area, equivalent to about 1 million hectares. Fragrant rice output is estimated at 5.5 million tonnes.

The amount of fragrant rice exported to the EU was entitled to a preferential tariff quota of 30,000 tonnes, equivalent to 1.2 percent of the rice produced in the region./.

Underdeveloped technological base holds back Vietnam’s development: Minister  

Vietnam only has 10 years to turn things around, as the country’s population starts aging by 2030, Minister of Planning and Investment Nguyen Chi Dung has said.

While it took Japan and South Korea 40 years to be among the world’s most advanced countries, Vietnam, after 45 years of independence, remains a middle-income country with low competitiveness, according to Minister of Planning and Investment Nguyen Chi Dung.

The majority of Vietnamese enterprises mainly assemble components and parts imported abroad, which restricts them from further integrate into global value chains and form strong linkages with foreign peers, said Mr. Dung at a meeting on September 10 discussing the development of Vietnam’s science and technology sector in the 2021 – 2025 period.

The core issue for this problem is the underdeveloped technological base, stressed Minister Dung.

According to Mr. Dung, Vietnam only has 10 years to turn things around and take advantages of technologies for development since the country’s population starts aging by 2030.

In this context, the Industry 4.0 is a golden opportunity for Vietnam, the minister said, adding the country should focus on a national strategy for the Industry 4.0 and an ecosystem supporting the development of R&D and innovation companies.

At present, Vietnam has established a national innovative center with representative offices in five countries and the figure could be raised to 10 in the coming time, Mr. Dung said.

As investment in science and technology is a long-term process, Mr. Dung expected the country to prioritize major projects with strong spillover effects, attracting the participation of both foreign and domestic experts. The goal is to create new hi-tech products that have significant contribution to Vietnam’s socio-economic development, he said.

Vice Minister of Science and Technology Le Xuan Dinh said due to the economy's small scale, state budget allocated for science and technologies development is estimated at 0.53% of GDP, significantly lower than the global average of 2.23%.

A higher proportion, around 1.5 – 2% of GDP for R&D, is essential to create breakthroughs in economic development, Mr. Dinh said.

In the 2021 – 2025 period, it is estimated that VND8.45 trillion (US$364.3 million) is required for public science projects, while the Hoa Lac hi-tech park, of the largest of its kind in Vietnam, would need at least VND5.12 trillion (US$220.8 million) for further development in the next five-year period.

Vietnam exports nearly 900 million medical face masks in 8 months

The amount of face masks exported in August, however, declined by 12% month-on-month to 135 million units.

Vietnamese enterprises exported a total of 846 million medical face masks in the first eight months of 2020, according to the General Department of Vietnam Customs (GDVC).

In August, over 70 companies in Vietnam exported medical face masks to countries such as the US, Europe, Singapore, or South Korea, among others, with over 135 million units, down 12% month-on-month.

Notably, this marks a decline in two months runnning in Vietnam’s face mask export, following a 35% month-on-month decrease in July.

Since May, Prime Minister Nguyen Xuan Phuc approved the export of medical face masks and protective gear provided domestic demand and reserves are met.

However, the export turnover of face masks declined in July after the Covid-19 pandemic was gradually contained in many countries. In the domestic market, demand for face masks has also weakened as local people are calmer and more experienced in dealing with the Covid-19 pandemic.

Under the growing impacts of the Covid-19 pandemic, face mask production is considered a viable solution for garment companies in Vietnam to maintain operations and offset losses from lower demand for garments.

Hanoi seeks to resume economic activities

Hanoi is making efforts to fulfill its economic growth target at 4.5%-5% set for 2020.

Hanoi’s authorities have considered reopening a number of activities for the economic recovery of the capital city whose economic growth rate is aimed at 4.5%-5% this year.

Related agencies need to prepare for relaxing the operating conditions of services involving large  number of people or implying  high risk, Chairwoman of the Hanoi People’s Council Nguyen Thi Bich Ngoc said Friday.  

The move is aimed at pursuing the government’s dual target including containing the virus and developing economy to “boost revenues to offset damage caused by Covid-19”.  

In the preparations for the reopening of the economy, the municipal authorities have stressed the importance on ensuring safety in hospital, quarantine facilities, and at school.

Vietnam has begun the new academic year on September 5 with nearly 23 million schoolchildren from kindergarten to high school levels. Hanoi has the highest number of pupils with more than two million.

 Hanoi expects to boost economic growth to offset damage caused by Covid-19. Photo: Dantri
Hanoi has closed non-essential services since August 1 after SARS-CoV-2 resurfaced in the community in Vietnam last week of July.

So far, bar and karaoke lounges are still closed and the city maintains a 5K (in Vietnamese) message launched early this month by the Ministry of Health that means "Khau trang" (face mask) - "Khu khuan" (disinfection) - "Khoang cach" (distance) - "Khong tu tap" (no gathering) - "Khai bao y te" (health declaration).

Meanwhile, the authority keeps an eye on the implementation of precautionary measures toward foreign visitors after Vietnam announced to resume some international air routes.

Hanoi will become one of the main destinations of the incoming visitors.

Deputy Chairman of the Hanoi People’s Committee Ngo Van Quy has warned local authorities of risk might be caused by flows of visitors.

So far, Hanoi has undergone 25 days without local infections.

Samsung stays in Vietnam not just because of incentives: ADB expert  

To ensure its place among front-runners in attracting global FDI in the future, Vietnam should prioritize quality over incentives in attracting investment capital, said an ADB expert.

Many countries are offering Samsung better incentives than Vietnam, but the South Korean tech giant is still committed to the country, largely thanks to its constantly improving business environment and higher skilled labor forces, according to Mr. Nguyen Minh Cuong, principal country economist of the Asian Development Bank (ADB) in Vietnam.

“Strategic investors like Samsung make their investment decisions based on a country’s overall competitiveness, rather than what incentives they could receive,” Mr. Cuong told Hanoitimes in an interview.

Samsung previously denied rumors that it was planning to shift part of the smartphone production from Vietnam to India, and affirmed that all production facilities in northern Vietnam are operating as normal.

The denial was made after The Economic Times, an Indian news website, reported that the South Korea-based conglomerate hoped to produce devices worth US$40 billion in India by taking advantage of the Production Linked Incentive (PLI) scheme of the Indian government.

Nikkei Asian Review in August also revealed Samsung are planning to shift production of personal computers and TV from China to Vietnam after having decided to close two plants in Chinese cities of Suzhou and Tianjin.

“To ensure Vietnam’s place among front-runners in attracting global foreign direct investment (FDI) in the future, the country should prioritize quality over incentives in competing with other nations for new investment capital,” Mr. Cuong added.

More importantly, the ADB expert said attracting FDI based on incentives in terms of land and taxes may result in severe consequences, including transfer pricing.

This would become a significant issue as many experts have raised concern over ASEAN countries’  race to the bottom in FDI attraction. Different level of tax incentives between countries in the region could only encourage multinationals to turn to transfer pricing activities, Mr. Cuong said.

Meanwhile, given the already weak linkage between foreign-invested and domestic firms in Vietnam, more incentives for foreign companies would only make it hard for local companies to compete and form a strong bond with their foreign peers.

In this regard, Mr. Cuong expected Vietnam to focus on improving the quality of human resources, infrastructure and legal environment, adding these are key factors to attract high qualify FDI projets.

As Vietnam becomes more selective in attracting FDI, the economist suggested the scale of investment projects should not be a matter, but all should be welcomed if they meet criteria of technology transfer, using environmentally friendly technologies and promoting linkages with local enterprises, among others.

“Investors with modest funding may not have advanced technologies like multinationals, but they are more willing to form linkages with local firms, a key step for the latter to further integrate into global value chains”, Mr. Cuong asserted.

Singapore-based firm seeks long-term contract for LNG supply in Vietnam

Vietnam sets an ambitious plan to develop LNG-to-power projects to make this a major energy source for the country.

Singapore-headquartered Delta Offshore Energy (DeltaOE) has submitted a request for proposal (RFP), the first one of its kind for Vietnam, for a 25-year gas sales agreement.

 Delta Offshore Energy seeks for 25-year LNG supply for power project in Vietnam. Image: AP
It’s aimed to seek suppliers of liquefied natural gas (LNG) for the company’s 3,200-MW power project in Vietnam.

The supply of estimated 2.5 to 3 million tons per annum (mtpa) of LNG will be priced on either a delivered ex-ship (DES) basis or free-on-board (FOB) basis for bidding that will be closed by September 27, the company has said.

The cargoes will be delivered to the Offshore LNG regasification facility in Vietnam’s southern province of Bac Lieu which is located the company’s power project.

The power project, that has been approved by the government of Vietnam with the inclusion in the national Power Development Plan 7 and the issuance of the Investment Registration Certificate in January 2020, is scheduled to start in 2021 with completion in 2024.

With an investment of US$4 billion, it will be the first large-scale LNG project in Vietnam to be developed by a foreign investor.

Engineering Managing Director for DeltaOE Bobby Quintos said “Delta Offshore Energy’s Bac Lieu project addresses Vietnam’s need for an LNG import terminal to provide access to growing the LNG industry as a feedstock for electricity generation.”

Delta Offshore Energy focuses on developing clean energy solutions as the future for meeting the power generation needs of emerging economies. It originates structures and co-develops clean energy projects with a particular focus on the rapidly evolving power sector in Vietnam.

Vietnam plans to build its first power plants connected to new LNG import terminals from 2021 to 2025, its trade minister said on Monday.

It’s an ambitious move that could make LNG a major energy source for the country, according to Reuters.

The Institute of Energy of Vietnam is drafting a new master power development plan and has compiled a list of 22 LNG power plants with a combined capacity of up to 108.5 gigawatts (GW), the first of which will become operational by 2023.

That would be nearly double the country's total installed generation capacity of 56 GW, and more than twice Thailand’s capacity of about 46 GW, Reuters reported.

Vietnam GDP growth in 9-month period estimated at 1.76%  

The country’s economic expansion in the third quarter is expected to be in a range of 1.04 – 1.69%.

Vietnam’s GDP growth in the first nine months of this year is estimated at 1.51 – 1.76%, according to the Ministry of Planning and Investment (MPI).

Meanwhile, the country’s economic expansion in the third quarter is expected to be in range of 1.04 – 1.69%.

The MPI also set up two growth scenarios for the fourth quarter, with a baseline scenario at 2.06% and at 2.86% for positive ones.

In 2020, Vietnam targets an economic growth rate of 2% in normal conditions and 2.5% if favorable factors emerge, while uncertainties could lower the country’s GDP growth to 1.69%.

In a government meeting on September 4, Minister of Planning and Investment Nguyen Chi Dung said out of 12 socio-economic development goals in 2020, seven are highly likely to be achieved and potentially exceed their set targets.

The Vietnamese government remains steadfast in ensuring macro-economic stability and focusing on three major growth driving forces, namely investment, export and domestic consumption, added Mr. Dung.

Mr. Dung forecast negative impacts from the Covid-19 pandemic to persist for the whole 2021.

With growing global uncertainties, Vietnam’s major economic partners are predicted to take at least two to four years to return to their pre-Covid-19 levels. However, Vietnam’s GDP growth could rebound to around 6.7% in 2021, for which the government is set to continue to look for a rapid and sustainable economic growth rate, Mr. Dung suggested.

The MPI’s GDP forecast for this year is not vastly different from that of World Bank in July with 2.8%, making Vietnam the fifth fastest-growing economy globally, while HSBC also expected the country to reach growth of 2.9%.

In the first half of 2020, Vietnam’s GDP expanded 1.81% year-on-year, the lowest six-month growth rate in the past 10 years, but is still a spotlight in Asia.

Fitch affirms state-run PetroVietnam's rating at BB with stable outlook   

The Hanoitimes - PVN accounts for about a third of the country's refined product output and supplies gas for power plants that make up about 15% of Vietnam's power generation.

Fitch Ratings has affirmed Vietnam Oil and Gas Group's (PetroVietnam) Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB' with a Stable Outlook.

PVN's IDR is capped by that of its parent, the Vietnam sovereign (BB/Stable), under Fitch's Government-Related Entities (GRE) Rating Criteria, stated the rating agency, adding the company is wholly owned by the state, which exerts significant influence over its operating and financial policies. 

Meanwhile, Fitch assesses PVN's Standalone Credit Profile (SCP) at 'bb+', reflecting the company's conservative financial profile, diversification and integration. Such assessment is support by PVN's position as Vietnam's largest upstream oil and gas producer, which has exclusive rights to Vietnam’s oil and gas reserves by regulation.

Fitch expected PVN’s earnings before interest, taxes, depreciation and amortization (EBITDA) to fall by about 55% and 30% in 2020 and 2021, respectively, from 2019, amid the weak oil price environment. 

However, it is expected that PVN would continue to maintain a net cash position over the next two years, as Fitch anticipated a delay in PVN expansion plans. Fitch believed the earnings of PVN's upstream, refining and oil distribution segments will be dampened severely in 2020. However, earnings from its gas distribution, fertilizer and power businesses would remain relatively stable, Fitch added.

PVN holds interests in all of Vietnam's upstream oil and gas assets, accounts for about a third of the country's refined product output, and supplies gas for power plants that make up about 15% of Vietnam's power generation. PVN also accounts for about 80% of Vietnam's fertilizer production.

Reopening economy, Vietnam to receive 20,000 int'l arrivals per month  

The country expects international arrivals from mid-September with the reopening of international air routes.

By relaunching international flights this September, the country expects the entry of 20,000 people per month through international airports of Noi Bai, Tan Son Nhat and Can Tho, Minister – Head of the Government Office Mai Tien Dung said at the online government meeting on Covid-19 prevention on September 11.

From September 15, the country will reopen four international routes to Japan, South Korea, China and Taiwan (China), and from September 22, flights to Cambodia and Laos will be resumed.

For boarding, passengers must have papers certifying their negative test results for nCoV, issued 5 days before departure, and undergo a 5-7-day paid quarantine period when entering Vietnam. During the quarantine period, the passenger will be tested for coronavirus twice.

Those with negative results will continue to self-isolate for another 14 days under local supervision. In case they show signs of SARS-CoV-2 infection, they will be sent to concentrated quarantine centers. The cost of isolation and testing is borne by the incoming person, regardless of whether their nationality is Vietnamese or foreign.

For passengers in transit to a third country, if their latest test for coronavirus takes place over 14 days prior departure, they must test again before boarding. He/she could take the test at the airport or at place of residence after paying VND1.2 million (US$51.5) for the PCR test.

According to Mr. Dung, hotels and accommodation establishments at localities are ready to host and provide paid quarantine to 20,000 people on entry who are required to install mobile tracking app during their stay.

At the meeting, Prime Minister Nguyen Xuan Phuc said the country has not confirmed any local infection over the past eight days, indicating that the country has initially contained the pandemic.

The prime minister required international flights to be resumed in phases in a cautious manner to avoid new outbreaks caused by incoming people.  

As of September 11, Vietnam has confirmed 1,059 cases of nCoV infection, including 402 imported. About 35 people, all with pre-existing medical conditions, died from the disease.

Previously, from April 1, Vietnam stopped all air connections with other countries. Recently, a number of foreign airlines reopened international routes to Vietnam, but only for bringing goods in and taking passengers out of Vietnam.

The country continues to conduct repatriation flights according to the plan of the Ministry of Foreign Affairs, with priority given to passengers who are in difficult circumstances, experts, high-tech workers. All incoming people must undergo quarantine for 14 days.

Direct flights expected to promote Con Dao tourism

Opening more direct flights to Con Dao Island, a tourism hotspot off southern Ba Ria – Vung Tau province, is an opportunity for the tourism destination, experts have said.

Vo Huy Cuong, Deputy Director of the Civil Aviation Authority of Vietnam (CAAV) told a seminar held in the central province of Thanh Hoa on September 12 that demand to visit Con Dao has been high for many years and is still rising. However, it has been difficult to fly to the island.

Cuong said in addition to flights from HCM City or the southern city of Can Tho to Con Dao, visitors could travel by boat, but it takes at least nine hours from HCM City and four hours from Ba Ria-Vung Tau province in calm sea conditions to reach the tourism site.

Con Dao Airport is located on the island and investing in lights for night operation is difficult due to weather and environmental conditions. It is not allowed to operate 24 hours a day, making flights only available during the day.

Vietnam Air Services Company (VASCO), a subsidiary of Vietnam Airlines, is the only airline currently operating regular flights to the island, flying from HCM City and Can Tho. It can carry up to 68 passengers per flight.

Bamboo Airways will launch new direct flights from Hanoi, Hai Phong and Vinh to Con Dao from September 29.

“It is a great effort to reach a maximum of 24 visits to Con Dao per day. Bamboo Airways' three non-stop flights to Con Dao will meet the need of spiritual tourism, assist in solving problems about take-off time at Tan Son Nhat International Airport. It will also help serve the increasing travel demand and reduce travel time and gas consumption for connecting flights,” he added.

Dang Tat Thang, Vice Chairman cum General Director of Bamboo Airways, said the company's goal since its establishment has been to connect localities with few flights.

Thang said his first trip to the island took 12 hours as he had to fly from HCM City.

Bamboo Airways struggled to open the routes in the past as the airline had previously considered using an Airbus A319 aircraft for the flight. However, the airport's runway needed to be extended.

During a business trip, he experienced the new generation of the Embraer 195 jet and was very impressed. With the approval of the CAAV, Bamboo Airways took six months to deploy this route. The airline will use the Embraer E195 jet on the route, transporting 124 passengers each flight.

“According to statistics from the CAAV, up to 90 percent of tourists visiting Con Dao are people from the northern region as the island is famous for spiritual tourism. That was why Bamboo Airways chose Hanoi, Hai Phong and Vinh - the three cities with the largest population in the north to open the direct flights,” he said.

Trinh Hang, Director of the Department of Tourism of Ba Ria-Vung Tau province, said that in the past, tourists had to fly to Con Dao by helicopter, which was very expensive. Since the airport was built in 2004, at the peak, despite there were 26 weekend flights and 5-8 flights on weekdays, yet many tourists still complained of not being able to buy tickets.

“With the new route of Bamboo Airways, tourists from the north can travel more conveniently, without having to connect from HCM City or Can Tho. The locality has been trying to develop infrastructure. Currently, a lot of investors are working to provide better services to tourists. The province has also calculated a plan for sustainable tourism development and considering development but still retains the ecosystem,” Hang said.

According to Dinh Ngoc Duc, Director of the Tourism Market Department under Vietnam National Administration of Tourism (VNTA), Con Dao’s tourism potential is enormous as the number of tourists coming to the island has increased by 400 percent in the last few years despite the lack of flights and poor traffic infrastructure. With the three new routes, he assessed that more tourists would come thanks to the convenience.

He also expressed his wish to develop Con Dao sustainably, attracting visitors, but not at all costs to protect the island.

“The three new routes of Bamboo Airways together with other provinces are the starting point of the second stimulus tourism programme in the last months of the year. VNTA will accompany airlines, destinations and enterprise in the programme,” he said.

Trinh Van Quyet, Chairman of FLC Group and Bamboo Airways, said being people doing business in the aviation and tourism sectors want to help tourism flourish again.

FLC proposed Ba Ria-Vung Tau province and the Airports Corporation of Vietnam (ACV) approve funding to install lights at Con Dao Airport to allow the airport to increase flight capacity at night.

At the forum, many travel firms said they expected the tourist market to Con Dao to thrive thanks to the new direct flights and that they would work with Bamboo Airways to offer package tours.

In 2019, Con Dao welcomed nearly 400,000 tourists, up 37 percent compared to 2018./.

Indonesia’s budget revenue nears 70 bln USD in eight months

The Indonesian Finance Ministry has said the State revenue till August this year reached 1.028 quadrillion rupiahs (some 69.5 billion USD), or 60.2 percent of the amended state budget that amounted to nearly 1.7 quadrillion rupiah.

The amount was lower than 1.189 quadrillion rupiahs in the same period last year, or 54.9 percent of the target in 2019 state budget which totaled 2.165.1 quadrillion rupiahs said Vice Minister of Finance Suahasil Nazara.

He added that the debt ratio till the end of August 2020 reached 34.53 percent of the gross domestic product (GDP).

The debt ratio was up among others due to the increase in the issuance of state securities and the widening state deficit in an effort to contain the COVID-19 pandemic.

The State deficit was predicted to touch 6.34 percent of the GDP until the end of 2020, or 1.039 quadrillion rupiahs./.

Construction steel sales projected to recover in year-end months

Construction steel sales are predicted to recover in the remaining months of 2020 after a fall in the January-August period due to impacts from the COVID-19 pandemic, according to the Vietnam Steel Association (VSA).

VSA Vice Chairman Trinh Khoi Nguyen said that in the short term, the domestic market will see higher demand after the social distancing period ended, thus bettering sales of construction steel from September.

A VSA report showed that production of construction steel in the first eight months of 2020 reached more than 6.6 million tonnes, down 6.9 percent year on year. Meanwhile, stales of the product reached 6.66 million tonnes, a decrease of 5.8 percent over the same period last year, including 906,962 tonnes exported abroad, down 5.9 percent.

Currently, construction steel inventories stand at more than 604,000 tonnes, which is at a medium level.

The COVID-19 pandemic outbreak in Da Nang in late July and its spread to some other localities greatly affected the recovery of business and production activities as well as the whole economy.

In the first eight months of 2020, production of steel of all kinds reached more than 16 million tonnes, down 5 percent year on year, while sales it nearly 14.44 million tonnes, a decrease of 6.9 percent, including 2.74 million tonnes exported, a drop of 13.8 percent over the same period in 2019.

The increased disbursement of public investment in August and the first eight months of 2020 rose 45.4 percent and 30.4 percent year on year, respectively, the highest in the five-year period thanks to the Government’s efforts to speed up the recovery of business and production, which helped promote sales of steel.

As a result, steel production exceeded 2.34 million tonnes in August, up 11.36 percent over the previous month, while sales reached over 2.07 million tonnes, up 5.88 percent compared to that in July. Export volume also rose 8.81 percent to 462,138 tonnes.

In August 2020, the price of material for construction steel continued the rising trend that began in late July.

The VSA noted that domestic firms are competing fiercely to maintain their market shares, leading to only slight adjustments in steel prices despite the increase in material prices.

HCM City’s EPZs, IPs to be upgraded to hi-tech parks

Ho Chi Minh City’s Department of Planning and Architecture is preparing a plan to turn several industrial parks (IPs) and export processing zones (EPZs) into hi-tech industrial parks.

The hi-tech industrial parks will use modern technology such as automation, robots, design software, and other advanced technologies.

The move is part of the city’s industrial infrastructure development plan for 2020 – 2045 on which the department is working.

As part of land planning, priority will be given to industrial infrastructure, supporting industries, and hi-tech industries.

Existing industrial parks will also be upgraded, and incentives will be offered to encourage investment in the parks./.

Vietnam Fair underway in AEON supermarkets in Japan

The Vietnam Fair is underway in 40 AEON supermarkets across Japan from September 11-13.

On display are apparel, processed food, consumer goods, interior decorations, handicrafts and hi-tech devices.

Co-organised by the Vietnamese Embassy’s Vietnam Trade Office in Japan and AEON Group, the event is expected to popularise Vietnamese goods to Japanese consumers and expand trade ties with Japanese partners and AEON’s importers in particular.

It is also part of a project on promoting Vietnamese firms’ participation in foreign distribution system till 2020, and meant to deliver on commitments under the memorandum of understanding signed between the Vietnamese Ministry of Industry and Trade and AEON Group, towards raising Vietnam’s exports to AEON to 500 million USD this year and 1 billion USD by 2025.

Speaking at the event, Vietnamese Ambassador to Japan Vu Hong Nam thanked AEON Group for successfully holding editions of the event since 2016, importing and distributing Vietnamese lychees.

He added that the Vietnamese Embassy will continue working closely with the two countries’ authorities to complete procedures to bring Vietnamese longans to Japan and bring Japanese tangerines to Vietnam.

Industrial sector helps promote Vinh Phuc economic growth

The northern province of Vinh Phuc’s industry has been growing to become a key economic sector that contributes greatly to the local gross regional domestic production (GRDP).

According to the provincial People’s Committee, nine out of 20 industrial parks and clusters approved by the Prime Minister have become operational. The locality has had more than 10,500 businesses.

In the 2015-2020 period, the average growth of the province’s industrial-construction production value is estimated to reach 12.1 percent per year, nearly doubling the target set at the resolution released at the 16th Party Congress of the province.

The sector also makes up more than 65 percent points to the whole economic growth of the province.

The added value of the processing-manufacturing sector of the province accounts for 4.5 percent of the added value of the sector in the whole country. Meanwhile, electronic spare parts have been the leading export products of Vinh Phuc, accounting for 40 percent of the province’s industrial sector’s production value.

At the same time, automobiles and motorbikes have been the leading industrial products of the province, which has long been the largest hub of automobile and motorbike production hub of the whole northern region.

Besides, supporting industry has been formed and developed rapidly, especially for the manufacturing, electronics and information technology sectors.

According to the Vinh Phuc People’s Committee, the development of industrial sector has helped promoted the economic growth of the locality, increasing budget collection and creating jobs for labourers.

In the 2016-2020 period, the province’s economic growth is estimated at 8 percent per year, while average budget collection in the period rose 30.3 percent per year, with domestic collection entering the top localities across the nation in the field and the second in the Northern region.

Particularly, in 2020, the scale of the province’s economy is estimated at 128 trillion VND, 1.63 times higher compared to that in 2015. The per capita GRDP is likely to reach 110.4 million VND per year, while labour productivity hit nearly 200 million VND per person per year, up 9.43 percent and higher than the average figure of the country.

In order to promote the industrial sector’s growth, Vinh Phuc will continue to strengthen investment promotion activities, along with administrative reform and the removal of difficulties for business and production.

At the same time, the province will better the implementation of mechanism and policies in market production, investment mobilisation as well as science and technology application and support industry development.

Alongside, the province will train and effectively use human resources, while supporting investors in the locality.

Between 2016 and 2019, Vinh Phuc attracted 2.5 billion USD in foreign direct investment (FDI) and some 55.28 trillion VND (2.38 billion USD) in domestic direct investment (DDI).

As of the end of June 2020, Vinh Phuc had been home to 392 FDI projects with total registered capital of 5.57 billion USD, according to statistics of the provincial Department of Planning and Investment.

The projects were run by investors from 18 countries and territories. The Republic of Korea has the most projects with 210, followed by Japan, China and Thailand.

Many global groups have made their presence in Vinh Phuc, such as Toyota, Honda, Sumitomo from Japan, Piaggio from Italy, De Heus from the Netherlands, Daewoo, Haesung Vina, Partron Vina, Cammsys from the Republic of Korea, Prime Group from Thailand and Weldex from the US.

Vinh Phuc has designated 18 industrial parks with total area of 5,228 ha in a master plan to 2020 approved by the Prime Minister. By now nine industrial parks have received investment certificates. Industrial parks in Vinh Phuc have good technical infrastructure and professional management, thus contributing to attracting investors to the province. They reported an average occupancy rate of nearly 62 percent.

Indonesia, Australia sign MoU on tax information exchange

Indonesia and Australia have signed a memorandum of understanding (MoU) on tax information exchange, announced the Indonesia’s Taxation Directorate General (TDG) on September 9.

The MoU, signed by the TDG and the Australian Taxation Office, will help them exchange tax information automatically under the double tax avoidance treaty from August 19.

The move would help fight tax avoidance committed by taxpayers by underreporting their income and assets abroad, in line with a global commitment to create transparent taxation.

Thailand warns risk of increasing jobless amid economic woes

The number of unemployed workers in Thailand reached 2.5 million in the first half of 2020, and will keep growing next year if state stimulus packages are not strong enough to battle economic woes, according to the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) of Thailand.

Supant Mongkolsuthree, Chairman of the Federation of Thai Industries, said the unemployment rate is expected to increase if the government's economic stimulus measures are not strong and many rehabilitation projects are delayed.

Many businesses, particularly those operating in tourism and export sectors, remain weak, though some have slowly recovered, he added.

Supant also expressed concern about a second wave of COVID-19 infections in the country as infection rates spike in many Asian countries, including Myanmar, which borders Thailand.

Kalin Sarasin, Chairman of the Thai Chamber of Commerce, said JSCCIB will ask the government to abandon some unnecessary laws and regulations in order to facilitate business operations.

Meanwhile, the Thai government has been promoting measures to create jobs, in the context that the country is trying to recover its economy from the effects of the health crisis.

The Thai Ministry of Labour has planned to create year-long jobs for 260,000 students graduating from universities and vocational schools. The budget for this plan is expected to be 23.47 billion baht (750 million USD).

According to the National Economic and Social Development Council of Thailand (NESDC), the country’s Gross Domestic Product (GDP) in the second quarter of 2020 decreased by 12.2 percent year on year, the sharpest fall since the 1998 crisis.

Varying forecasts for stock market, plenty of opportunities for investors

Market analysts and securities companies have varying forecasts for the stock market this week, saying investors should eye potential stocks at reasonable prices.  The benchmark VN-Index on the Ho Chi Minh Stock Exchange edged up 0.02 per cent to close Friday at 888.97 points.

The southern market index declined a total of 1.39 per cent last week.

An average of 348.7 million shares were traded on the southern exchange each session last week, worth VND7.3 trillion (US$314.7 million).

According to Mirae Asset Vietnam Securities Co, the VN-Index was in a correcting process after testing the resistance zone of 900 points last week. The index was showing signs of balancing at 883-885 points and the next technical support level is expected to be 875-880 points.

The company said cash flow is set to flow into stocks with positive six-month business results.

MB Securities JSC said the market was in an accumulation stage and price fluctuations are being narrowed with trading volume decreasing.

“Therefore, the domestic market would have a chance to recover in the coming sessions," the company said.

“Technically, the VN-Index is facing the resistance zone of 900 points, groups of stocks of energy and food and beverage will attract the cash flow,” it added.

According to Tran Xuan Bach, a stock analyst at Bao Viet Securities Co, the VN-Index will fluctuate between 880-885 points and 895-905 points for several sessions.

“Overall, we maintain our positive outlook on market movements in the short term,” Bach said.

“Market corrections are necessary for several stock sectors to cool down and accumulate for their impulsiveness and could possibly offer opportunities for investors to participate in the market at a reasonable price. Stock sectors with macroeconomic benefits are expected to attract investors once revisiting fair prices.

“The maturity of September futures contracts will take place on Thursday while VanEck and FTSE will have their Q3 portfolio review next week,” Bach said.

He said the stock exposure should be maintained at 50 per cent of total investment.

“Investors who already sold previously may consider reopening buying positions at support 880-885 points. Investors with high stock exposure should consider lowering short-term stock exposure at resistance 900-905 points,” he said.

Saigon-Hanoi Securities JSC (SHS) said the VN-Index had fallen after five consecutive gaining weeks with increasing liquidity, which indicated selling pressure during the week was relatively strong.

It forecast that this week the VN-Index would continue to decline with the nearest support zone about 875 points.

With the market falling again last week, most major stock sectors also dropped.

According to SHS statistics, oil and gas stocks fell the most with notable losers of Viet Nam National Petroleum Group (PLX) decreasing 3.7 per cent, PetroVietnam Oil Corporation (OIL) falling 2.5 per cent, PetroVietnam Drilling & Well Services Corporation (PVD) down 2.7 per cent, PetroVietnam Technical Services Corporation (PVS) falling 2.4 per cent, PetroVietnam Gas JSC (GAS) dropping 3.8 per cent and PV Power (POW) declining 3.8 per cent.

Banking stock also performed poorly with Vietcombank (VCB) falling 3.1 per cent, Vietinbank (CTG) down 1.5 per cent, Bank for Investment and Development of Viet Nam (BID) losing 3.9 per cent, VPBank (VPB) declining 2.6 per cent, Military Bank (MBB) decreasing 1.1 per cent, Techcombank (TCB) losing 2.5 per cent and Asia Commercial Bank (ACB) falling 1.4 per cent.

Stocks in the “Vin” family also fell sharply. Vingroup (VIC) decreased by 3.1 per cent and Vinhomes (VHM) lost 2.9 per cent.

On the other side, stocks in the fertiliser sector gained ground, such as Petrovietnam Fertilizer & Chemicals Corporation (DPM) increasing by 4.9 per cent, Binh Dien Fertilizer Joint Stock Company (BFC) rising by 10.7 per cent, and PetroVietnam Ca Mau Fertiliser JSC (DCM) increasing by 2.5 per cent.

In the seaport industry, Gemadept Corporation (GMD) rose 5.4 per cent and Vietnam Container Shipping Joint Stock Corporation (VSC) increased 0.9 per cent.

Real estate stocks such as Phat Dat Real Estate Development Joint Stock Company (PDR) increased 19.2 per cent, Ba Ria - Vung Tau House Development JSC (HDC) rose 5.9 per cent and Nam Long Investment Corporation (NLG) climbed 1.4 per cent.

According to the Vietnam Securities Depository (VSD), in the first 11 days of September, VSD issued 107 new trading accounts to foreign investors, of which there were 74 individual investors and 12 organisations.

Earlier in August, VSD issued 296 new trading accounts to foreign investors.

The recent increase in the number of foreign trading accounts has been a positive signal amid the COVID-19 pandemic, which has caused the number of foreign investors entering Viet Nam to plummet.