Category: Business

The State Treasury mobilised a total of 31.95 trillion VND (1.31 billion USD) worth of government bonds and government-guaranteed bonds in November via 32 auctions on the Hanoi Stock Exchange (HNX), representing a month-on-month increase of 68.3%.

The State Treasury successfully issued 19.65 trillion VND worth of G-bonds, equivalent to 71% of the plan set for 2023, while the Vietnam Bank for Social Policies (VBSP) mobilised 12.3 trillion VND from bonds, equal to 87.2% of the year’s target.

Interest rates for the 5-, 10- and 15-year terms in the last session of November decreased slightly by 4, 17 and 20 basic points to reach 1.6%, 2.28% and 2.48%, respectively. That of the 30-year term was kept stable, at 3.05%.

On the secondary market, the total trading value of G-bonds traded via outright transactions during the month reached 113.14 trillion VND, while that via repos transactions was 21.17 trillion VND.

Foreign investors’ total trading value accounted for 2.05% of the total market trading value./.

S
ource: Vietnam News Agency

Bain Capital – a leading private investment firm with approximately 180 billion USD of assets under management, has agreed to pour another 50 million USD into Masan Group, raising its total investment in the enterprise to 250 million USD from 200 million USD announced in October.

The transaction is an equity investment in the form of Convertible Dividend Preference Share (CDPS) to be issued at a price of 85,000 VND (3.5 USD) per share which can be converted into ordinary shares at a 1:1 conversion ratio.

Proceeds from the transaction will be used to improve Masan’s financial indicators and de-lever its balance sheet.

In only two months from the first transaction, Bain Capital has invested 250 million USD in Masan. Masan expects that the transaction will be completed in several months.

According to Masan, despite short-term fluctuations in the financial market, Bain Capital’s increase in investment scale shows the investor’s strong confidence in Masan’s long-term strategy and prospects. This is evident in
Masan’s solid business results in the third quarter of 2023./.

Source: Vietnam News Agency

The southern province of Ba Ria-Vung Tau attracted nearly 1.38 billion USD in foreign direct investment (FDI) in the first 11 months of this year, an increase of 93.8% compared to the same period last year.

According to the provincial People’s Committee, in 11 months, the province attracted 21 FDI projects worth nearly 867 million USD. Meanwhile, 30 projects raised their investment capital by a total of over 510 million USD.

By November 2023, Ba Ria-Vung Tau was home to 457 foreign-invested projects with a total registered investment capital of more than 31.5 billion USD.

However, the inflow of domestic investment into the province dropped in the first 11 months of this year, with 15.86 trillion VND (653 million USD) registered, equal to just 68.8% of that of the same period last year. There were only 12 new projects with a total registered capital of 1.4 trillion VND, equal to 10.2% of the same period last year./.

Source: Vietnam News Agency

Vietnam may record a GDP growth rate of 5.19% in 2023, lower than the 8.02% expansion last year but still higher than many other countries in the region and the world, the Central Institute for Economic Management (CIEM) predicted.

Economic growth this year is forecast to show quarter-on-quarter improvement with the rate in the fourth quarter estimated at 7.72%, higher than 5.23% in Q3, 4.05% in Q2, and 3.28% in Q1, Dr. Nguyen Huu Tho, a representative of the CIEM research team told the Vietnam Economic Pulse forum held in Hanoi on December 6.

Meanwhile, 461 trillion VND (almost 19 billion USD) in public investment was disbursed during the first 11 months, 6.7% and 122.6 trillion VND higher than the disbursed during the same period of 2022.

Of the about 28.8 billion USD in foreign direct investment (FDI) registered during the period, 20.2 billion USD was implemented, the highest over the last five years. Vietnam has also delivered on proper control of inflation, he said.

Despite the positive results, res
earchers also pointed out certain problems affecting economic growth this year, including those related to the corporate bond market, the real estate market, and foreign trade.

Though economic growth is high – estimated at 5.19%, it still failed to meet the target of 6.5%, which may impact the development roadmap to 2030, they noted.

Apart from external factors like the complex geo-political situation in the world, global economic contraction and inflation, the Vietnamese economy has also been affected by internal factors such as problems in institutional building, overlapping legal regulations, and the slow reduction of business conditions and administrative procedures.

CIEM Director Tran Hong Minh said the country will have to make strong efforts to surmount internal and external economic headwinds. To secure breakthroughs in 2024 and beyond, appropriate economic policies and strategies are required to capitalise on achievements of the Fourth Industrial Revolution to overcome new difficulties and challen
ges.

UNDP Resident Representative in Vietnam Ramla Khalidi perceived that to recover strongly in 2024, Vietnam needs to take flexible solutions to current difficulties and challenges. In fact, innovation and energy transition processes are bringing about new opportunities for it to enter new markets, increase goods value, and promote export.

The country can also step up attracting investment and make use of advanced technology such as semiconductor and artificial intelligence technologies to seize these opportunities so as to secure higher-level development and escape from the middle-income trap, she suggested./.

Source: Vietnam News Agency

The northern province of Bac Giang’s gross regional domestic product (GRDP) grew by 13.45% this year, topping the nation.

Accordingly, the province’s growth rates of industry-construction, agro-forestry-fishery, and services hit 17.25%, 2.63%, and 6.56%, respectively.

Meanwhile, its industrial index of production (IIP) for the entire year went up by 20.2%, with the processing and manufacturing industry growing by 20.5%, and the production and distribution sector of electricity, gas, steam, and air conditioners up by 5.7%.

As of November 30, Bac Giang attracted 3.2 billion USD of investment, the highest amount ever recorded. Regarding new foreign direct investment (FDI) capital, excluding new sums added to existing projects, it ranked second nationwide after Quang Ninh province.

Notably, in September, the Korean-funded Hana Micron Vina Co. Ltd. inaugurated its semiconductor manufacturing plant, the first of its kind in the northern region, at Van Trung industrial park in Viet Yen district. The effective i
mplementation of the project is expected to lay the foundation for developing a semiconductor manufacturing ecosystem in the province and the region. It also presents an opportunity for Bac Giang to attract more high-tech projects in the near future.

The Red River Delta province, situated about 50 km to the east of Hanoi capital, has a favourable geographical and economic location. Surrounded by major economic hubs, ports, and national highways, it is located at the crossroads of major trade routes. It lies adjacent to the Hanoi – Hai Phong – Quang Ninh key economic triangle. It is 110 km from Huu Nghi Border Gate with China, 100 km from Hai Phong seaport, and 40 km from Hanoi’s Noi Bai International Airport. The locality has favourable weather conditions and is less affected by natural disasters, with stable stratigraphy, fertile land, and beautiful natural landscapes./.

Source: Vietnam News Agency

The Eurasia region, comprising 28 countries stretching from Eastern Europe to Central Asia with a population of more than 400 million and a total GDP of nearly 4.5 trillion USD, is considered a potential export market of Vietnam, according to experts.

Statistics from the General Department of Vietnam Customs showed that due to fluctuations in the world economic and political situation, trade between Vietnam and Eurasia reached 13.3 billion USD in 2022, down 9.7% year on year. In the first nine months of this year, the figure dropped 6.5% year on year to 9 billion USD, with Vietnam’s exports falling 1.2% to 6.3 billion USD.

However, Director of the Ministry of Industry and Trade (MoIT)’s European-American Market Department Ta Hoang Linh said that the Eurasian market still boasts great potential for Vietnamese export products, as Vietnam’s export revenue to the region has accounted for just 0.4% of the total import value of this region.

Besides, the two sides have set up many institutions and solid framewor
ks serving as a foundation for bilateral trade cooperation, including the Vietnam – Eurasian Economic Union (EAEU) Free Trade Agreement, EU-Vietnam Free Trade Agreement (EVFTA) and 14 joint committees and inter-governmental committees, Linh noted.

The official underlined that these cooperation mechanisms have operated effectively, paving the way for businesses of both sides to strengthen cooperation in many areas, especially trade and investment. A large community of Vietnamese people in the region also support trade and investment between the two sides.

Vietnamese Trade Counsellor in Bulgaria Nguyen Thanh Hai said that the annual import demand of Central Eastern European countries has reached about 1.6 trillion USD, but Vietnam’s export turnover to these countries in 2022 only reached 7.8 billion USD, accounting for 0.5% of the total. This showed that there is still a lot of room for Vietnamese export enterprises to exploit the market.

Meanwhile, export turnover from Vietnam to the Western Balkans is curr
ently still below 20 million USD each year and is mainly through intermediary countries in the EU.

Vietnamese Trade Counsellor in Russia Duong Hoang Minh said that the presence of Vietnamese products like spices, sauces, fresh and dried fruits, drinks, and foods is increasing in Russia and members of the Commonwealth of Independent States (CIS), including Azerbaijan, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan and Uzbekistan.

However, he said that the Vietnam Trade Office in Russia has received negative feedback on Vietnamese products’ quality and labelling. At the same time, Vietnamese exporters also reported a number of problems with partners in these markets.

Minh said that the Vietnam Trade Office in Russia is willing to help domestic firms to verify information of their partners. He advised exporters to consider the use of rail freight for export to the CIS countries.

Linh said that amid the instability in the world economic situation, it is necessary for exporters to update the mar
ket information and policies in importing countries, while optimising marketing, payment and transport solutions.

The MoIT will work with Vietnamese Embassies in the region and Vietnam Trade Offices abroad to support domestic firms in tapping new cooperation opportunities and help them deal with difficulties during trade activities, the official said./.

Source: Vietnam News Agency