Category: Business

Binh Dinh: By rapidly building a favourable environment for investors, Binh Dinh province has grown to be an appealing economic hub in central Vietnam, attracting both domestic and foreign investments in all key sectors.

This is attributed to the effort in boosting infrastructure development, Nguyen Tuan Thanh, Standing Vice Chairman of the Provincial People’s Committee, said at a press conference on March 23.

‘Infrastructure investment is seen as the province’s ultimate competitive edge. With airports, seaports, airways, railways, waterways and interconnected routes along the North-South and East-West economic corridors, as well as inter-regional and inter-district connections, Binh Dinh has essentially completed its infrastructure,’ Thanh said.

‘This comprehensive infrastructure network positions the province as a highly attractive destination for investment.’

Binh Dinh province also focuses on building industrial zones and clusters to attract major investors and manufacturers.

As per the development p
lan for industrial zones and clusters in the province, there are plans to establish 10-15 industrial zones covering a total area of about 7,500ha by 2030. Currently, seven industrial zones have been successfully launched and are in operation.

Meanwhile, it aims to establish 68 industrial clusters spanning an area of 3,470ha by 2030. Currently, there are already 42 operational industrial clusters, boasting an impressive occupancy rate of over 78%.

‘The land clearance process has been expedited and there has been a relatively cohesive investment in infrastructure,’ Thanh added.

Also contributing to the province’s successes are the improvements in labour force and administrative procedures.

Currently, 50% of the province’s population is of working age and they have been well trained to meet employment needs.

‘Every year, we can provide up to 3,000 appropriately trained workers for businesses,’ Thanh said.

On the other hand, the province has created optimal conditions for businesses, aiming to expedite admi
nistrative procedures.

In 2023, Binh Dinh province ranked 18 out of 63 provinces and centrally-run cities in terms of competitiveness index, while securing the top position in terms of satisfaction among its residents and businesses.

Furthermore, it organised numerous investment promotion conferences in the province and in various countries in Europe, North America and Asia last year.

These conferences are crucial opportunities for both domestic and foreign investors to learn about the potential, advantages and opportunities offered by Binh Dinh province.

Later this month, a trade promotion conference with the Vietnamese – Canadian Business Association (VCBA) will be held in Binh Dinh, the province’s leader shared.

Future AI hub

Given the core target of sustainable and green growth, the province has shown interest in developing the information technology industry, especially AI technology.

‘We use our best land fund for research and science. We have made extensive efforts to attract software companies,
including FPT, to set up their factories here,’ Thanh said, adding that the establishment of such an ecosystem will drive the province to become a powerhouse in artificial intelligence and advanced science and technology in Vietnam as well as the region.

In 2021, FPT officially launched the Quy Nhon Artificial Intelligence Research and Application Centre in Quy Nhon city, Binh Dinh. And last May, the company continued to build a research, production and expert training centre complex here. The construction project has a total investment of more than 2 trillion VND (44.7 million USD)./.

Source: Vietnam News Agency

Binh Dinh: By rapidly building a favourable environment for investors, Binh Dinh province has grown to be an appealing economic hub in central Vietnam, attracting both domestic and foreign investments in all key sectors.

This is attributed to the effort in boosting infrastructure development, Nguyen Tuan Thanh, Standing Vice Chairman of the Provincial People’s Committee, said at a press conference on March 23.

‘Infrastructure investment is seen as the province’s ultimate competitive edge. With airports, seaports, airways, railways, waterways and interconnected routes along the North-South and East-West economic corridors, as well as inter-regional and inter-district connections, Binh Dinh has essentially completed its infrastructure,’ Thanh said.

‘This comprehensive infrastructure network positions the province as a highly attractive destination for investment.’

Binh Dinh province also focuses on building industrial zones and clusters to attract major investors and manufacturers.

As per the development p
lan for industrial zones and clusters in the province, there are plans to establish 10-15 industrial zones covering a total area of about 7,500ha by 2030. Currently, seven industrial zones have been successfully launched and are in operation.

Meanwhile, it aims to establish 68 industrial clusters spanning an area of 3,470ha by 2030. Currently, there are already 42 operational industrial clusters, boasting an impressive occupancy rate of over 78%.

‘The land clearance process has been expedited and there has been a relatively cohesive investment in infrastructure,’ Thanh added.

Also contributing to the province’s successes are the improvements in labour force and administrative procedures.

Currently, 50% of the province’s population is of working age and they have been well trained to meet employment needs.

‘Every year, we can provide up to 3,000 appropriately trained workers for businesses,’ Thanh said.

On the other hand, the province has created optimal conditions for businesses, aiming to expedite admi
nistrative procedures.

In 2023, Binh Dinh province ranked 18 out of 63 provinces and centrally-run cities in terms of competitiveness index, while securing the top position in terms of satisfaction among its residents and businesses.

Furthermore, it organised numerous investment promotion conferences in the province and in various countries in Europe, North America and Asia last year.

These conferences are crucial opportunities for both domestic and foreign investors to learn about the potential, advantages and opportunities offered by Binh Dinh province.

Later this month, a trade promotion conference with the Vietnamese – Canadian Business Association (VCBA) will be held in Binh Dinh, the province’s leader shared.

Future AI hub

Given the core target of sustainable and green growth, the province has shown interest in developing the information technology industry, especially AI technology.

‘We use our best land fund for research and science. We have made extensive efforts to attract software companies,
including FPT, to set up their factories here,’ Thanh said, adding that the establishment of such an ecosystem will drive the province to become a powerhouse in artificial intelligence and advanced science and technology in Vietnam as well as the region.

In 2021, FPT officially launched the Quy Nhon Artificial Intelligence Research and Application Centre in Quy Nhon city, Binh Dinh. And last May, the company continued to build a research, production and expert training centre complex here. The construction project has a total investment of more than 2 trillion VND (44.7 million USD)./.

Source: Vietnam News Agency

Hanoi: Vietnam’s ambition to elevate its stock market from “frontier” to “emerging” status by 2025 faces two key hurdles, including pre-trade margin requirements for foreign investors and foreign ownership ratios in certain sectors, said Deputy Director of the Securities Market Development Department under the State Securities Commission (SSC) Pham Thi Thuy Linh.

Despite successfully meeting 7 out of the 9 established criteria for the upgrade, the two other requirements remain considerable roadblocks.

To tackle the pre-trade margin requirement challenge, Linh revealed ongoing discussions with international rating agencies are being conducted to seek viable solutions. Additionally, the SSC has proposed regulatory amendments and supplements to the Ministry of Finance (MoF). These revisions, if implemented, would eliminate the need for a 100% cash margin requirement for foreign institutional investors, provided they can demonstrate a secure payment process.

Regarding the foreign ownership ratios, the SSC is c
ollaborating with the MoF and the Ministry of Planning and Investment (MPI) to conduct a comprehensive review across various industries. The SSC has proposed that the MPI work alongside other relevant ministries and agencies to expand foreign ownership limits in non-essential sectors. This critical information, translated into English, is expected to be publicly available soon.

The SSC is also making efforts to improve information disclosure regulations, specifically for public and large-scale listed companies. The proposed amendments, once approved by the MoF, would mandate English disclosure for both regular and irregular information updates. The implementation timeline for these changes would see English disclosures become mandatory for regular information and large-scale company listings starting January 1, 2025. Irregular information disclosures would follow suit by January 1, 2026, with the requirement encompassing all public companies by January 1, 2028.

The World Bank has projected that if Vietnam’s
stock market achieves the coveted “emerging” status, it could attract an additional 25 billion USD in fresh investment capital from international investors by 2030./.

Source: Vietnam News Agency

Hanoi: Vietnam’s ambition to elevate its stock market from “frontier” to “emerging” status by 2025 faces two key hurdles, including pre-trade margin requirements for foreign investors and foreign ownership ratios in certain sectors, said Deputy Director of the Securities Market Development Department under the State Securities Commission (SSC) Pham Thi Thuy Linh.

Despite successfully meeting 7 out of the 9 established criteria for the upgrade, the two other requirements remain considerable roadblocks.

To tackle the pre-trade margin requirement challenge, Linh revealed ongoing discussions with international rating agencies are being conducted to seek viable solutions. Additionally, the SSC has proposed regulatory amendments and supplements to the Ministry of Finance (MoF). These revisions, if implemented, would eliminate the need for a 100% cash margin requirement for foreign institutional investors, provided they can demonstrate a secure payment process.

Regarding the foreign ownership ratios, the SSC is c
ollaborating with the MoF and the Ministry of Planning and Investment (MPI) to conduct a comprehensive review across various industries. The SSC has proposed that the MPI work alongside other relevant ministries and agencies to expand foreign ownership limits in non-essential sectors. This critical information, translated into English, is expected to be publicly available soon.

The SSC is also making efforts to improve information disclosure regulations, specifically for public and large-scale listed companies. The proposed amendments, once approved by the MoF, would mandate English disclosure for both regular and irregular information updates. The implementation timeline for these changes would see English disclosures become mandatory for regular information and large-scale company listings starting January 1, 2025. Irregular information disclosures would follow suit by January 1, 2026, with the requirement encompassing all public companies by January 1, 2028.

The World Bank has projected that if Vietnam’s
stock market achieves the coveted “emerging” status, it could attract an additional 25 billion USD in fresh investment capital from international investors by 2030./.

Source: Vietnam News Agency

Geneva: A working delegation from the northern province of Thai Binh, in collaboration with the Switzerland-Vietnam Business Gateway (SVBG) and the Swiss-Asian Chamber of Commerce (SACC), held a seminar in Zurich city on March 22 to showcase local investment potential and attract Swiss businesses to the locality.

Speaking at the event, Chairman of the provincial People’s Committee Nguyen Khac Than said Thai Binh boasts advantages in land bank for industrial development, with 10 industrial zones and 49 industrial clusters covering nearly 3,000ha ready to welcome investors.

Thai Binh always welcomes investors from around the world, especially those from Switzerland, to explore and invest there, he said, hoping that the Vietnamese Embassy in Switzerland and business support organisations such as Swiss Global Enterprise, SwissMEM, Swiss Textiles, SACC and SVBG will facilitate connections between the province and Swiss companies and investors.

Thai Binh commits to all possible support for foreign firms, especia
lly those from Switzerland, to boost cooperation and investment, he added.

In the Q and A session, the Vietnamese delegates discussed Thai Binh’s specific areas open to Swiss investment, including finance, banking, insurance, manufacturing, pharmaceuticals, food processing, renewable energy and tourism services./.

Source: Vietnam News Agency

Hanoi: Nearly 20 commercial banks in Vietnam have adjusted deposit rates since the beginning of this month, with most lowering rates.

One of the Big4, the Bank for Investment and Development of Vietnam (BIDV), earlier this week reduced online deposit rates by 0.2 percentage points for terms of 1-11 months and 24-36 months, and by 0.1 percentage points for 12-18 month term.

The Vietnam Bank for Agriculture and Rural Development (Agribank) cut deposit rates by 0.1 percentage points and only maintained a 3% per year rate for 6-9 month terms from March 15.

Agribank has the lowest 1-5 month term rate among the Big4, at 1.6% per year.

Among the Big4, deposit rates at Vietinbank are slightly higher, at 1.6-5% per year.

Earlier this week, Saigonbank suddenly increased rates for long-term deposits, while reducing short-term rates. Accordingly, rates for 1-12 month deposits were cut by 0.1-0.2 percentage points while 18-36 month term rates increased by 0.2-0.4 percentage points to around 5.4-5.8% per year.

From t
he beginning of March, 17 commercial banks have adjusted their deposit rates so far, four of which cut rates more than twice, including BaoViet Bank, GPBank, BVBank and PGBank. Rates for online deposits are currently around 1.6-6.2% per year.

Sacombank offers the highest rate for 36-month term at 6.2%.

The highest rate for 1-2-month term belongs to CBBank at 3.6%, followed by MSB and NCB at 3.5%, Dong A Bank at 3.3%, and VietBank, Viet A Bank and OceanBank at 3.1%.

For 6-month term, ABBank offers the highest rate at 4.7%.

Only eight banks offer rates higher than 5% for 12-month deposits.

According to statistics of the State Bank of Vietnam, deposits at banks were estimated to total 13.5 quadrillion VND (302 billion USD) as of the end of 2023, the highest figure ever recorded.

A report by broker VNDirect forecast that the central bank might cut operating rates by another 0.5 percentage points in the second quarter of 2024, bringing the refinancing rate to 4% and discount rate to 2.5%.

Accordingly, the a
verage 12-month deposit rate is expected to remain low at around 4.5-5% per year in 2024.

The Government also asked for efforts to lower lending rates to support socio-economic recovery./.

Source: Vietnam News Agency