Posts

Posted on

Vietnam economy to grow by 6% in 2024: HSBC


HCM City: Vietnam’s economy will grow by 6% in 2024, faster than in 2023, according to economists of HSBC Vietnam.

James Cheo, Chief Investment Officer, Southeast Asia and India, Global Private Banking and Wealth, HSBC, said that the strength of the Vietnam economy in 2024 would come from a combination of consumer and investment spending.

The strong inflows of foreign direct investment will likely continue in 2024, buttressing Vietnam’s manufacturing sector. The nascent recovery of the global trade cycle will boost Vietnam’s exports. Furthermore, Vietnam is likely to witness a gradual uptick in international tourism.

‘Inflation is fairly stable but there could be an upside risk from higher-than-expected energy or food prices, we think that Vietnam’s monetary authority will stay vigilant and keep policy rates on hold for this year. We forecast the Vietnamese dong to move towards 24,400 VND against the US dollar by the end of 2024,’ said Cheo.

HSBC Global Private Banking (HSBC GPB) expects the beginning of
Fed rate cuts in June 2024, US soft landing, corporate earnings recovery, and solid Asia growth to improve global risk appetite and investment outlook of equity and bond markets in 2024.

For the next six months, HSBC GPB adopts a mild risk-on investment strategy with underweight on cash, mild overweight on US Treasuries and global investment grade bonds and tactical overweight on hedge funds.

‘As we look ahead into 2024, we see two positive drivers supporting global financial markets. Major western central banks have done rate hikes amid continued disinflation and the US economy is heading for a soft landing. These two positive developments should support recovery of global risk appetite in 2024. Positioning for slower but positive global growth and Fed rate cuts starting in June 2024, putting cash to work in quality bonds, US and Asian equities and alternatives should deliver diverse sources of return and income to optimise portfolio performance and mitigate market volatility,’ said Fan Cheuk Wan, Chief In
vestment Officer, Asia, Global Private Banking and Wealth, HSBC.

‘We see quality bonds as the most attractive asset class for H1/2024 ahead of the first Fed rate cut. We focus on locking in still attractive yields via our overweight in US and UK government bonds and investment grade bonds across developed and emerging markets. Although global growth should remain below trend growth in 2024, the US growth engine continues to run, thanks to the resilient US consumer and government stimulus supporting investment and innovation in technology and healthcare. Equity valuations now see better fundamental support from earnings recovery that we anticipate in 2024, which provides a potential upside for stocks that can deliver on earnings expectations. We expect the global AI investment boom will extend into 2024, reinforcing our bullish view on the global, US and Asian IT sectors,’ noted Fan.

‘Going against the global headwinds, Asia’s robust private wealth accumulation, resilient middle-class consumers, digital tran
sformation and green transition offer solid domestic drivers to support healthy economic growth. We forecasted that Asia ex-Japan GDP will grow 4.5% in 2024, close to double the average global growth of 2.4%, led by India’s 6.0%, Indonesia’s 5.2%, and China’s 4.9% growth this year.’ added Fan./.

Source: Vietnam News Agency

Posted on

Domestic aviation industry poised for full recovery in late 2024


Hanoi: Vietnam’s aviation market is expected to fully recover in late 2024, closely tied to the positive trajectory of the Asia-Pacific, according to the Civil Aviation Authority of Vietnam (CAAV).

The agency cited the International Air Transport Association (IATA) as saying that the global aviation industry is forecast to make a full recovery by the end of this year, with the Asia-Pacific to report a net profit of 1.1 billion USD in the year.

The Vietnamese aviation sector would serve about 84.2 million passengers this year, up 15% from 2023 and 6% from 2019 when the COVID-19 pandemic broke out.

Of the volume, the number of international passengers is set at 42.7 million, representing increases of 15.8% and 6.4% as compared with 2023 and 2019, respectively.

Meanwhile, the industry would handle 1.16 million tonnes of cargo in 2024, up 8.5% year-on-year and equivalent to 92.2% of the 2019 figure, the CAAV added.

Domestic air carriers said they will operate about 33,800 flights during the Lunar New Year (T
et) holiday, or between January 24 and February 2, up 14% year-on-year and 21% as compared with normal days.

There will be some 24,200 domestic flights, representing increases of 2% from the same period last year and 27% compared with normal days; and 9,600 international flights, up 60% and 9% respectively.

The busiest routes include Hanoi-Ho Chi Minh City, HCM City-Da Nang/Vinh/Dong Hoi/Quy Nhon/Chu Lai/Thanh Hoa/Hue/Tuy Hoa, and Can Tho-Vinh, and vice versa.

The airlines expect to fly 7.2 million passengers during Tet, the biggest holiday in the year in Vietnam, of them more than 5 million domestic, up 4% year-on-year./.

Source: Vietnam News Agency

Posted on

PM orders sufficient petrol supply during Tet


Hanoi: Prime Minister Pham Minh Chinh has recently signed an official dispatch, ordering competent ministries, sectors and corporations to fully and drastically roll out measures to ensure sufficient petrol supply for production, business and consumption during the Tet (Lunar New Year) holiday which lasts from February 8 to 14 this year and the time ahead.

The official dispatch was issued amidst complicated and unpredictable developments across the globe with the risk of energy supply disruptions and rising energy prices.

Accordingly, the Minister of the Industry and Trade was asked to keep a close watch on the domestic and global petrol markets, enhance examination and direction to make timely adjustments to the petrol allocation in line with the market situation.

The minister should work to prevent supply disruption, while joining hands with relevant ministries and agencies to impose strict punishment on any organisations and individuals who violate petrol business activities. Besides, the ministry shoul
d coordinate with the Ministry of Finance to adjust petrol prices in accordance with the current regulations and market, and ensure the harmonised benefits of the State, enterprises and people.

Meanwhile, the Minister of Finance was requested to work with the Ministry of Industry and Trade and traders to consider the adjustments of related costs that are used in calculating the prices of petrol products, and strictly carry out the regulations on electronic invoice issuance for each sale and data connection with the tax authority.

The Chairman of the Commission for Management of State Capital at Enterprises and the Ministry of Industry and Trade must direct the Vietnam Oil and Gas Group (Petrovietnam) and the Vietnam National Petroleum Group (Petrolimex) to pen rational production and distribution plans.

The Minister of Information and Communications is responsible for working with the Ministries of Industry and Trade, and Finance to direct press agencies to provide the public with official, timely and accu
rate information on petrol supply./.

Source: Vietnam News Agency

Posted on

Special preferential import tariffs issued to boost Vietnam-Cambodia trade


Hanoi: The Government has issued Decree 5/2024/ND-CP on special preferential import tariffs for Cambodian goods as part of the implementation of the Vietnam-Cambodia trade promotion agreement for the 2023-2024 period.

The decree provides details on special preferential tax rates and conditions for being entitled to those rates, including being on the list in Appendix I to the decree, having C/O form S issued by authorised agencies of Cambodia, and being transported through pairs of border gates stipulated in Appendix III to the decree.

Besides, the decree also stipulates tariff and import quotas specifically for rice and unprocessed tobacco leaves originating from Cambodia.

Under the decree, rice products produced with the support of Vietnamese firms, households and individuals in Cambodian provinces bordering Vietnam, upon import into Vietnam, must comply with existing regulations on export and import taxes.

For rice and unprocessed tobacco leaves originating from Cambodia and imported into Vietnam by Vi
etnamese enterprises for re-export to other markets, the decree mandates adherence to the temporary import and re-export mechanisms established by the Vietnamese Government and relevant regional and global agreements signed by both countries./.

Source: Vietnam News Agency

Posted on

Petrol prices edge up on January 25 afternoon


Hanoi: The petrol prices were revised up from 15:00 on January 25 by the Ministry of Industry and Trade, and the Ministry of Finance.

Accordingly, the price of popular RON95-III stood at 23,407 VND (0.95 USD) per litre, up 925 VND, while E5RON92 was raised 753 VND to cost 22,171 VND per litre.

The prices of diesel oil 0.05S and kerosene were capped at 20,376 VND and 20,544 VND per litre, up 182 VND and 8 VND, respectively.

Meanwhile mazut oil 180CST 3.5S was sold at no more than 15,494 VND per kilogramme, a fall of 14 VND.

During this fuel price adjustment, the two ministries decided to use the petrol price stabilisation fund for mazut oil only./.

Source: Vietnam News Agency

Posted on

Vietnam – India multi pillar partnership grows on firm foundations: Diplomat


Hanoi: Indian Ambassador to Vietnam Sandeep Arya lauded the robust and healthy progress of the Vietnam – India comprehensive strategic partnership in 2023 and shared plans and orientations aimed at elevating the bilateral relations with Vietnam in the time to come in an interview with the Vietnam News Agency prior to the advent of the Year of the Dragon.

Reporter: How do you evaluate the relationship between India and Vietnam in 2023? What are the notable highlights?

Ambassador Sandeep Arya: The India-Vietnam comprehensive strategic partnership encompasses the entire spectrum of cooperation from political and official exchanges, promoting trade and investment, expanding business-to-business relations, deepening defence and security cooperation, advancing development initiatives, maintaining sound coordination in international forums, provincial-level engagements, progressing tourism and culture, and people-to-people ties.

In 2023, our Prime Minister met in May and December during multilateral summits, and
we had active exchanges covering ministerial visits in the field of defence, public security, external affairs, agriculture, law, and culture. Vietnamese Deputy Minister of Industry and Trade Phan Thi Thang and Additional Secretary of the Indian Ministry of Commerce and Industry Rajesh Agrawal co-chaired the 5th meeting of the Vietnam-India Joint Sub-Commission on Trade in New Delhi in August, while Vietnamese Minister of Foreign Affairs Bui Thanh Son and his Indian counterpart Subrahmanyam Jaishankar co-chaired the 18th meeting of the Vietnam-India Joint Committee for Economic, Trade, Science and Technology Cooperation in Hanoi in October. The meetings reviewed overall relations in October 2023 and generated ideas for further work in various fields.

Numerous activities in terms of exchange of business delegations, tourism promotion visits, defence training, exercises, ship visits, technical visits in economic areas, and cultural exchanges progressed the bilateral partnership steadily during 2023. We coordin
ated well in the United Nations and other forums and we are glad that Vietnam participated at the level of the President and Foreign Minister in the two virtual meetings of the Voice of Global South Summit hosted by India in January and November 2023. Overall, the partnership saw healthy progress last year and has laid the framework for further joint work in 2024 and beyond.

Reporter: Vietnam – India comprehensive strategic partnership is considered a partnership for “people”. Can you share with us some specific programmes or plans to be taken to enhance people-to-people exchanges as well as to intensify solidarity and strategic trust to further advance bilateral relations?

Ambassador Sandeep Arya: I like your description of ‘people’s partnership’ which captures enormous affinity, respect, and appreciation at the level of our peoples, be it Buddhist heritage, Yoga, tourism, culture or academic interest, or the steadfastness of India’s solidarity with Viet Nam over seven decades. The Archaeological Survey of
India completed the restoration and conservation of the three tower groups of A, H and K at My Son World Cultural Heritage Site in Quang Nam province a year back, and the next phase of restoring three more sites in Vietnam has been initiated.

Under the Mekong Ganga Cooperation initiative, we undertake ten community projects annually in Vietnam that relate the benefits of government-level cooperation to local communities throughout Vietnam. As many as 37 such facilities have already been completed, and nine more are in advanced stages of completion.

About 200 education and training scholarships in India per year expand the outreach of our cooperation to people across Vietnam. More than ten provincial delegation exchanges took place last year. Several cultural troupes visited in both directions presenting arts and music in numerous localities. A bilateral conference on opportunities for cooperation in Ho Chi Minh National Academy of Politics in December 2023 involved over 100 scholars to assess areas for enha
ncing bilateral cooperation in the future. Publicly reported data mentioned that Indian tourists as the ninth largest source of Vietnam in 2023. Yoga, Buddhist, and scholarly linkages continued to prosper last year and engage people as real partners in the India-Vietnam friendship.

Reporter: Economic, trade and investment cooperation is a key pillar and also a strategic goal in the two countries’ relationship. How do you evaluate the potential for collaboration in this area in 2024 and the following years?

Ambassador Sandeep Arya: Economic, trade, and business relations are a high priority, taking into account strong national economic growth and development in both our countries. We are working at the level of the two governments, business associations and chambers, and promoting business interactions, participating in exhibitions and trade fairs, supporting province-level engagements to uplift economic relations between India and Viet Nam. In particular, an ongoing review of the 2009 ASEAN-India Trade in G
oods Agreement, which should be completed in 2025, will make the trade regime more diverse and facilitative.

Agriculture, fishery, engineering goods, electrical and electronic goods, chemicals and and pharmaceuticals, mineral processing, energy (both hydrocarbon and renewable), infrastructure development, transport services, and tourism are some sectors that have enormous potential for further growth. We are discussing and hoping to progress and conclude ways of streamlining and increasing trade in these areas. Greater business-to-business engagements are another important part of our efforts to realise the full potential of bilateral trade and business relations.

Technology could make an enormous contribution to our efforts to expand economic relations. Digital technologies, telecommunication, start-up innovations, defence, and renewable energy are witnessing rapid developments in both countries and we are taking up sectoral exchanges in these areas. Banking, digital payments as well as improved direct s
hipping services are another area that has significant opportunities to expand bilateral economic relations ahead.

The year 2024 has started on a positive note with the visit of Deputy Prime Minister Tran Luu Quang to India on 10-11 January 2024, his participation in the Vibrant Gujarat Global Summit, a Vietnam -India Business Forum, and meetings with Indian Ministers and businesses. We plan more energetic and focused efforts in the economic domain, enhancing trade, business tie-ups, and technological cooperation initiatives which you will see unfold during the course of 2024.

Reporter: Vietnam aims to foster the development of cultural industries for economic growth. Can you share with us India’s experience on how to make cultural industries a key contributor to your country’s economy?

Ambassador Sandeep Arya: Tourism and culture are important dimensions that also nurture economic growth and progress. There are numerous similar efforts in India and Viet Nam in developing tourism tapping nationwide strengt
hs, using the One Community One Product (OCOP) programme (the One District One Products (ODOP) initiative in India) to promote local products, and broadbasing connectivity and logistics beyond major cities.

Promoting handicrafts and local arts, including ethnic culture is an area of ongoing efforts that involves traditional heritage in the national growth journey. Active efforts to enhance the outreach of provinces to other countries also promote local and cultural participation in economic development. Cinema, television series, and music play an important role in linking culture with economic progress. Culture also serves as an important medium for connecting the diaspora and beyond to national economic endeavours.

Reporter: What are your impressions on the culture, and people of Vietnam after more than a year in your role as Indian ambassador here? What’s the message you would like to send to Vietnamese people for the New Year?

Ambassador Sandeep Arya: I am deeply impressed by the strong similarities be
tween the people, their traditions, customs, practices, and life in India and Vietnam. This is represented in the centrality of family bonds, importance of beliefs, regard for ancestors, Buddhist thoughts, and emphasis among families on education and progress. The significance of traditional music, arts, and culture in life in both countries is also noteworthy. In daily life, I see the striking resemblance in terms of the vibrancy, dynamism, energy, and aspirations of the youth and entrepreneurship as well as the path to the progress of the people. I believe these similarities translate into deep respect, appreciation and affinity among the people of the two countries.

I convey my heartiest wishes for happiness, prosperity, and fulfillment to all the Vietnamese people on the occasion of Tet. I also wish for a stronger partnership between the two countries in the New Year, with the support of the generous and affable people of Vietnam./.

Source: Vietnam News Agency