BUSINESS NEWS HEADLINES MAY 26
03:02Banks urged to promote digitalisation
The COVID-19 pandemic has caused a serious effect to the economy, but it has helped accelerate the race for banks to go digital.
With many
people looking for new options to deal with their financial affairs,
digitalisation of services and e-payments are becoming crucial.
Vu Tien Loc,
chairman of Viet Nam Chamber of Commerce and Industry (VCCI) told an online
forum held in Ha Noi yesterday there can be positives to take from the
pandemic.
“COVID-19
has been a catalyst that helps Viet Nam accelerate digitalisation of the
economy, businesses, banks as well as e-commerce,” Loc said.
Statistics
showed the country now has 70 credit institutions and intermediaries unit
such as E-wallets providing payment services online and through cell phone
apps. The total value of digital financial transactions topped VND7.3
quadrillion and 300,000 transactions via mobilephone so far.
Although
there has been progress building a legal corridor for digital payment
services, there were still obstacles in place. These have deterred digital
payments from expanding quickly and easily to customers who prefer
convenience, he said.
The Decision
No 645/QD-TTg on the overall plan of the national e-commerce development in
2021-25 period targets to have 55 per cent of the country’s population
shopping online and 50 per cent of small-and-medium sized enterprises having
business activities on e-commerce floors by 2025. The targets required
determination from firms and banks in promoting digitalisation and non-cash
payment.
Pham Tien
Dung, director of the Payment Department under the State Bank of Viet Nam
(SBV) said the current policies have lagged behind the technology development.
To promote
digital economy, banks should find ways to bring ordinary users to become
their digital customers. To support banks, the SBV recently drafted a
regulation on opening accounts by the electronic system, Know your customers
(eKYC). Banks must increase customer experience to make them satisfied with
products and services.
The central
bank was expected to submit a decree to replace the Decree No 101/2012/ND-CP
on non-cash payment in June. This would see Viet Nam having a definition for
electronic money and correspondent banks for the first time. This is the
basis for banks to develop comprehensive digital banking.
Dung said in
recent years, many digital banks have developed strongly, helping to improve
operational efficiency. For example, a traditional bank processing credit
files for businesses takes about a week, the digital bank can disburse for
businesses in around two hours by digitising all the data, using public
credit appraisal technology.
“The growth
rate of mobile banking in our country was 200 per cent, showing that we are
growing very well. On average, there were 30-50 million transactions through
the payment system,” he added.
However, the
SBV also said that the biggest barrier of digital banking development is
still habit and a push is needed to change people's mindsets.
He said
banks need to build a smart and diverse ecosystem to develop digital banking.
In digital banking and payments, it is impossible to mention the co-operation
between banks and fintech. Currently, 81 per cent of credit institutions
choose the co-operation model between banks and fintech for mutual
development.
In addition,
banks must also strengthen integration, connectivity of infrastructure and
applications of the banking industry with other industries and services to
expand the digital ecosystem.
Sharing
ideas, Huynh Ngoc Huy, chairman of LienVietPostBank said Government should
quickly build a national database, especially personal identification for
sustainable development of digital banks and e-payment system.
“When
building digital banking, it is important to have cryptocurrencies and a
national database of residents. If we can't connect to the national database
of the population, we can't identify it. Therefore, the Government should
immediately implement this because this is the root of the problem, through
which we will apply a lot of things, including digital banking development,”
Huy said.
Investors consider Vietnam as
safe investment destination after COVID-19
Many
investors have considered Vietnam as a safe investment
destination with a lot of advantages after the COVID-19 pandemic is
pushed back, heard a meeting of permanent government members chaired by Prime
Minister Nguyen Xuan Phuc in Hanoi on May 22.
The meeting
also saw the attendance of leaders from several ministries, sectors and
provinces and cities which have attracted large sums of foreign direct
investment (FDI), and economic experts.
According to
experts, the investment flow is expected to be poured into four industries:
information technology and high technology, electronic equipment, e-commerce
and logistics, consumer goods and retail. Therefore, localities should
recognise and seize this opportunity to draw investment.
PM Phuc said
Vietnam has achieved initial successes in fighting COVID-19, but it is
necessary to focus on developing the country to realise the dual target of
preventing the pandemic and boosting socio-economic development.
The PM asked
the participants to deliberate concrete measures to optimise the investment
flow shifted to Vietnam, especially from major multinational groups and
high-tech firms.
He suggested
attracting selective projects, aiming at big multinational groups utilising
new cutting-edge and environmentally friendly technologies.
The
Government leader requested building a project to address bottlenecks for
investors such as land clearance and human resources.
He agreed on
the establishment of a working group in charge of this matter, which is headed
by the Minister of Planning and Investment.
Emphasising
the role of the communication work, PM Phuc suggested promoting Vietnam as an
attractive investment for investors and tourists.
The
Government, localities and sectors must create optimal conditions in terms of
production premises, necessary and attractive incentives, administrative
procedures, and human resources, he said.
Attracting
foreign investment with high-tech and high added value projects is an
essential trend, the PM said, adding that authorities should make it easier
for all economic sectors, particularly the private one, to successfully do
business in Vietnam./.
WB: Indonesia may lose market
confidence due to debts
The World
Bank (WB) has called on the Indonesian government to formulate a sound fiscal
strategy to “flatten the debt curve” and maintain financial market confidence
as debt mounts amid the COVID-19 pandemic.
Indonesia’s
debt-to-gross domestic product (GDP) ratio would rise to 37 percent this year
from 29.8 percent last year, driven by an increase in borrowings to cover for
the widening budget deficit and to cope with the economic slowdown and rupiah
exchange rate depreciation, according to WB senior economist for Indonesia
Ralph van Doorn.
The
Indonesian government should provide assurances over its fiscal strategy to
raise revenues back to at least the 2018 level to flatten the debt curve, he
said, adding the country risked losing market confidence over its
mounting debts.
He also
suggested Indonesia show a credible path for the economy to unwind
exceptional measures taken by the government to battle the pandemic.
Indonesia’s
budget deficit is expected to increase to 6.27 percent of
its GDP this year, more than double the initial ceiling of 3
percent,
The WB has
projected zero percent growth for the Indonesian economy under the baseline
scenario. However, the economy may contract 3.5 percent under the worst-case
scenario./.
Laos not immune to global
economic crisis: WB
Laos’
economic growth is projected to decline in 2020 due to the impact of the
COVID-19 pandemic and measures to contain its spread, unveiled a World Bank
report on the country’s growth and debt in the year.
The pandemic
will have a significant impact on various sectors of Laos, particularly
tourism, trade, investment and remittances, it said.
Lao economic
growth is projected to decline to 1 percent in the baseline scenario and
negative 1.8 percent in a worse-case scenario.
The economic
downturn has particularly affected the service sector. A sharp drop in the
performance of the travel, tourism and hospitality sectors – which account
for 11 percent of total employment and 22 percent of employment in urban
areas – has caused widespread job losses.
Between
96,000 and 214,000 additional people are estimated to fall into poverty as a
result of the pandemic.
The impact
of the COVID-19 is also projected to increase the fiscal deficit in 2020 to
between 7.5 and 8.8 percent of GDP, from 5.1 percent in 2019.
Consequently,
debt levels are expected to increase to between 65 and 68 percent of GDP in
2020, from 59 percent of GDP in 2019. Reserve buffers are expected to fall in
2020 and cover less than one month of imports.
The report
also includes a thematic section on Building Resilient Health Systems.
Evidence shows that Laos needs to invest more in building a resilient health
system to effectively respond to health emergencies.
At the same
time, it is important to ensure that adequate resources continue to be
available to provide quality essential health services to all citizens./.
Khanh Hoa launches programme
to stimulate tourism after COVID-19
A total of
74 firms will take part in a tourism stimulus programme in the
south-central province of Khanh Hoa, offering deals with discounts of up to
50 percent, Director of the provincial Department of Tourism Tran Viet Trung
told a press conference on May 22.
The press
conference was held by the province’s Departments of Tourism and Information
and Communications and the Nha Trang - Khanh Hoa Tourism
Association to launch the programme, which primarily sets its sights
on domestic visitors.
The move
aims to help Khanh Hoa revive the local tourism industry, which has been
majorly disrupted by the COVID-19 pandemic for nearly three months.
Trung said
participating companies, including 50 accommodation providers, 13 tourist
sites, 10 tour operators, and a transport firm, have vowed to offer visitors
discounts ranging from 20 to 50 percent.
The province
is calling on local tourism companies to develop new high-quality products
and services to spark demand.
The tourism
department plans to hold promotional events in several domestic markets, such
as Hanoi, Hai Phong, Ho Chi Minh City and Can Tho, while a seminar will be
organised to seek solutions to improving the quality of tourism in Khanh Hoa.
Khanh Hoa is
home to over 770 accommodation providers with more than 42,000 rooms in
total, including 86 hotels rated three to five stars with nearly 19,000
rooms.
Because of
the impact of COVID-19, the province expects to welcome just 3.2 million
visitors this year, including 1.5 million foreigners.
It received
7 million holidaymakers last year, including more than 3.5 million from
overseas./.
Thailand expects to harvest
24mn tonnes of rice in 2020
Thailand’s
Royal Irrigation Department (RID) expects more rain this year and a harvest
of 24 million tonnes of rice in the 2020-2021 crop.
The Rice
Policy and Management Committee believes that between November 2019 and April
2020, the Chao Phraya River basin will have 5.5 billion cubic metres of
water, which would cover 59 percent of the country’s water supply.
It decided
to boost rice crops in the 2020-2021 period by allocating more than 9.5
million ha to the grain, including 4.4 million ha for jasmine rice, over
330,000 ha for Pathum Thani rice, more than 2.15 million ha for normal rice,
2.6 million ha for sticky rice, and about 90,000 ha for other types.
RID Director
General Thongplew Kongjan said this farmland is expected to produce up to
24.65 million tonnes.
As the
second-largest rice exporter in the world, behind India, Thailand expects to
ship 7-8 million tonnes worth 4.2 billion USD this year - the lowest level in
seven years./.
Da Nang working hard to
accelerate post-pandemic economic recovery
Authorities
in the central city of Da Nang have adopted a series of measures to bolster
its post-pandemic economic development, focusing on attracting investment,
promoting production, business, and exports, stimulating domestic tourism and
consumption, and addressing difficulties facing key projects.
Secretary of
the municipal Party Committee Truong Quang Nghia said the municipal People’s Committee
and relevant agencies have been directed to effectively implement support
policies to promote production and business activities, accelerate the
disbursement of public investment, and ensure social security.
He urged the
People’s Committee and relevant agencies to actively propose major targets
and budget balance plans for 2020 while focusing on building socio-economic
development plans and medium-term public investment plans for the 2021-2025
period.
Nghia
stressed the need to complete adjustments to the general planning of Da Nang
city by 2030 and vision to 2045, and design an economic development strategy
to 2030.
Da Nang
plans to submit a resolution on the pilot of organising the urban
administration model as well as specific mechanisms and policies for Da Nang
city to the National Assembly for approval, he said.
Nghia also
asked for solutions to quickly support and remove difficulties facing key
industrial sectors such as automobile manufacturing, the rubber industry, and
electronic components.
It is
necessary to build plans and scenarios and mobilise resources to recover the
tourism sector, he said.
The COVID-19
pandemic has had an impact on Da Nang’s economic indicators. In the first
four months of this year, the number of tourists to the city and tourism
revenue fell 57.6 percent and 51.2 percent, respectively.
The total
retail sales of goods and services was down 6.8 percent, while export
turnover fell 8.4 percent./.
Vietnam records trade deficit
in first half of May as exports drop
Vietnam reported
a trade deficit of nearly 1 billion USD in the first half of May as exports
reached only 8.22 billion USD – the lowest level since the beginning of this
year (excluding the first half of January when the Tet holiday fell on), the
General Department of Customs announced has announced.
Only two
groups of products posted an export turnover of at least 1 billion USD during
the period including computers, electronics and components at some 1.5
billion USD and telephones and parts at 1 billion USD. That brought export
earnings of these products total to 13.6 billion USD and 16.4 billion USD,
respectively so far this year.
Several
other staples with an encouraging export value were textile and garment with
828 million USD, totalling 9.47 billion USD to date this year; machinery,
equipment and parts with 753.5 million USD, totalling more than 7.5 billion
USD and footwear with 587 million USD, totalling 5.94 billion USD.
Meanwhile,
the country imported nearly 9.2 billion USD worth of goods in the first half
of May with computers, electronics and components and machinery, equipment
and parts recording respective earnings of 2.1 billion USD and 1.4 billion
USD, according to the department.
Since the
beginning of this year to mid-May, the nation’s trade value hit about 177
billion USD. Of the total, more than 89 billion USD came from exports while
the remainder of 88 billion USD from imports. That resulted in a trade
surplus of more than 1 billion USD, the department noted.
The Ministry
of Industry and Trade predicted that Vietnam’s export value would increase
again in the second half of this year if the pandemic was controlled in the
second quarter.
The ministry
would continue to give priority to promoting trade connections between
Vietnamese enterprises and foreign partners, and the introduction of
made-in-Vietnam goods to domestic and international consumers.
Vietnam has
set a goal of reaching 300 billion USD export value target by the end of this
year after four-year trade surplus record. Last year, the country’s trade
surplus hit a record high of 9.9 billion USD, the highest level seen in the
past four years./.
Thailand promotes airport
city project in Eastern Economic Corridor
The Eastern
Economic Corridor Policy Committee of Thailand has agreed with a draft
contract on the 290-billion-baht (over 9 billion USD) eastern airport city
project at U-tapao airport.
Local media
on May 22 reported that the project is one of five megaprojects under the
government's infrastructure development in the Eastern Economic Corridor
(EEC).
As
scheduled, after the draft contract is approved by the Thai cabinet, the
country’s navy will sign a 50-year contract with the BBS consortium to
implement the project.
Covering an
area of more than 10sq.km, the project includes a third passenger terminal at
U-tapao airport, a commercial gateway and a ground transport centre, an MRO
(maintenance repair and overhaul) centre, a cargo complex and an aviation
training centre.
It is
expected to earn the government 305 billion THB from land lease and
revenue-sharing and 62 billion THB from tax.
In the first
five years, the project will create 15,600 jobs.
Kanit
Sangsubhan, the EEC Office's secretary-general, said the project will be
completed in 2023 along with the high-speed railway linking the three key
airports of Don Mueang, Suvarnabhumi and U-tapao./.
Indonesia, RoK sign MoU on
oil and gas cooperation
Indonesian
energy producer, PT Pertamina, and a consortium of companies of the Republic
of Korea (RoK) signed a memorandum of understanding (MoU) to explore business
cooperation opportunities in Indonesia’ oil and gas industry, specifically in
the Refinery Development Master Plan (RDMP) of Dumai in Riau.
The signing
was carried out online on May 20, witnessed by head of the Investment
Coordinating Board Bahlil Lahadalia.
The state
construction firm, PT Nindya Karya, also involved in the deal while the
Korean consortium was represented by DH Global Holdings Co. Ltd.
The 1.5
billion USD project is expected to increase domestic oil and fuel production
capacity, reduce the reliance on oil imports and address the current account
deficit in the future, said Lahadalia in an official statement released on
May 21.
The deal is
accordance with the Indonesian Government’s efforts to support the
acceleration of the implementation of mega projects under the National
Strategic Projects.
Pertamina
Director, Ignatius Tallulembang, said the third parties will conduct a study
on upgrading the Dumai Refinery, expressing his hope that there will be an
important milestone in December.
Pertamina
aimed to double its capacity to 2 million barrels per day, produce
environmentally friendly fuel products of the Euro5 standard and
petrochemical products./.
Bac Giang to host lychee
trade promotion teleconference next month
The northern
province of Bac Giang will host a teleconference on June
6 to promote the domestic consumption and export of
lychee, a local specialty, as the harvest season has just come.
The video
conference will connect representatives from the Government Office, the
Ministry of Agriculture and Rural Development, the Ministry of Industry and
Trade, trade offices and embassies in Vietnam of China, Japan, and Thailand,
leading local and foreign retailers such as Aeon, the Central Group, Mega
Market, Saigon Co.op, Hapro and Vinmart, and a number of major wholesale
markets and distributors.
It is part
of a series of promotional events Bac Giang is holding to boost sales of
lychee.
Luc Ngan and
Tan Yen districts, home to the largest lychee areas in the province, will
prepare a list of foreign wholesalers who have demand for lychee and ask
authorities to allow their entry into Vietnam to purchase the fruit. They
will also formulate plans to quarantine these traders, in line with
regulations.
Bac Giang
currently has more than 28,100 ha of lychee, with output likely to increase
10,000 tonnes to 160,000 tonnes this year. This includes 45,000 tonnes of
early-ripening lychee harvested on an estimated area of 6,000 ha and 115,000
tonnes of lychee from the main crop on an area of 22,100 ha.
The harvest
is expected to last until July 10.
VietGAP-standard
lychee has been grown on 15,000 ha this year, or half of the province’s total
area. Output is forecast at 110,000 tonnes, or 68.7 percent of the total.
Bac Giang
has developed different plans and scenarios for lychee trade promotion this
year in response to the COVID-19 outbreak, which is still ravaging many
countries around the world. It has set its sights on several main markets,
such as Japan, the US, Australia, the EU, and China.
Japan has
approved a total of 19 Production Unit Codes (PUCs) for 103 ha of lychee in
the province, including 98 ha in Luc Ngan and 5 ha in Tan Yen.
The province
has also received 18 PUCs for 218 ha of lychee in Luc Ngan’s six communes for
export to the US, Australia, and the EU./.
Asian Banker names
Techcombank best bank for SMEs in 2020
The Vietnam
Technological and Commercial Joint Stock Bank (Techcombank) has been named
2020 Best Solutions Provider for Small and Medium-sized Enterprises (SMEs) by
prestigious magazine The Asian Banker.
The magazine
said the bank has solidified its position as a one-stop solutions provider
for SMEs in Vietnam with a value chain-focused strategy and business model.
Head of
Research and Survey at The Asian Banker, Mobasher Kazmi, said leading experts
have been impressed by the bank’s deep customer insight in addressing the
evolving needs of SMEs, which led to its strong income and profit growth in
2019.
The bank has
targeted the six consumption-led economic sectors that contribute almost half
of Vietnam’s GDP.
Vishal Shah,
Head of Techcombank’s Business Banking Division, said that within its growing
footprint of more than 300 branches nationwide, Techcombank has enabled a
dedicated business unit focused on SMEs and mid-corporate businesses through
43 dedicated branches.
He added
that the bank continues to upgrade its Fast E-Bank online banking platform to
improve customers’ experience in terms of speed, convenience, efficiency, and
security.
It also
introduced Overseas Remittance-embedded Foreign Currency Exchange with
enhanced functionalities to support internal customer control and risk
management.
The bank
also launched a preferential loan package of 20 trillion VND (869 million
USD) to businesses affected by COVID-19./.
EVN calls for investment in
solar power plants on reservoirs
Electricity
of Vietnam (EVN) is seeking investors in new electricity projects, including
solar power plants on reservoirs, in an effort to ensure the safe and stable
operation of the country’s electricity market.
Home to
nearly 7,000 reservoirs covering millions of square kilometres, Vietnam has
the conditions necessary to develop solar power plants on water surfaces,
with total capacity amounting to 15,000 MW.
According to
Deputy Minister of Agriculture and Rural Development Nguyen Hoang Hiep, the
Ministry has received numerous proposals for solar power plants on reservoirs
over the last three months.
The 420 MWp
solar power plant in the semi-flooded area of Dau Tieng Reservoir in southern
Tay Ninh province and another with a capacity of 47.5 MWp on the Da Mi
Reservoir in south-central Binh Thuan province are the first of their kind in
the country and are operating successfully.
These
projects have safely churned out commercial electricity for the national
power grid, said Nguyen Dinh Chien, Deputy Director of the Da Nhim-Ham
Thuan-Da Mi Hydropower JSC in Binh Thuan.
According to
Hoang Tien Dung, Head of the Ministry of Industry and Trade (MoIT)’s
Electricity and Renewable Energy Authority, as at May 11, 6,000 MW of solar
and wind power had been turned out commercially.
Some solar
and wind power plants have been transferred partially or fully to foreign
investors from Thailand, the Philippines, and China, he added.
Regulations
allowing private and foreign investors to engage in electricity development
without Government guarantee have made the sector more appealing to
investors.
Under its
production and business plan for 2016-2020, EVN is to diversify the
mobilising of capital at home and abroad and effectively use State budget
funds for site clearance in service of power projects.
EVN Director
General Tran Dinh Nhan said the group will continue to coordinate with
relevant ministries and agencies to accelerate the capacity release of the
solar power projects, which are scheduled to be completed in the third
quarter of this year.
In climate change-hit Tiền
Giang, rice farmers switch to fruits, vegetables
More rice
farmers in the Cửu Long (Mekong) Delta province of Tiền Giang have switched
to other crops as part of efforts to adapt to climate change.
In Cai Lậy
and Cái Bè districts in the upstream area of the Tiền River, a tributary of
the Mekong, they either switched completely or rotated rice with other crops
in the ongoing 2019 -20 dry season, according to the provincial Department of
Agriculture and Rural Development.
Cái Bè now
uses more than 5,300ha of low-yield rice paddies to grow speciality fruits
and rotates vegetables and rice on another 1,200ha.
Phạm Văn
Thanh, head of the Cái Bè Bureau of Agriculture and Rural Development, said
farmers had grown many high-value vegetables like bitter gourd, cucumber and
onion.
They have
short growing periods and high yields, and require less water and offer
higher profits than rice, according to Thanh.
Farmers who
grow vegetables in the two districts earn three to five times more than from
rice, according to the department.
Trần Lý Ngự
Bình, head of the Cai Lậy Bureau of Agriculture and Rural Development, said
to enable rice farmers to switch to other crops, the district has upgraded
irrigation canals and built new ones to ensure sufficient water.
Cai Lậy has
invested more than VNĐ29.6 billion (US$1.3 million) so far this year in 67
irrigation projects.
Cái Bè has
spent more than VNĐ56 billion ($2.4 million) to build 167 irrigation
projects, dredge canals and upgrade sluices to keep out saltwater.
Affected
areas
Drought and
saltwater intrusion have affected nearly 60,000ha of crops in the 2019 -20
dry season in the province’s western region, which includes the two districts
and Cai Lậy Town.
They include
more than 23,000ha of rice and 36,000ha of speciality fruits.
Besides
improving irrigation facilities, the localities have also installed water
salinity testing devices along rivers.
The Cái Bè
District People’s Committee has installed 25 of them in communes along the
Tiền River to measure salinity on a daily basis.
Communes and
farmers have hundreds more of the devices.
In Cai Lậy,
in areas that lack saltwater prevention dykes, authorities have told farmers
how to store water and keep out saltwater in the Hàm Luông River, one of the
province’s largest.
Authorities
regularly provide information about saltwater intrusion and the schedule for
opening and closing sluices to farmers so that they know when to draw water
from rivers and canals for irrigation.
The province
has transported water from other places to save speciality fruit crops, which
are facing a severe shortage of water due to drought and saltwater intrusion.
Around
2,275ha of fruit orchards have been affected by the water shortage, with
2,186ha being damaged by 30 – 70 per cent and the rest by more than 70 per
cent.
Tiền Giang,
the country’s largest fruit producer, has more than 77,700ha under fruits,
which include specialty fruits like Lò Rèn milk apple, Hòa Lộc mango, Ngũ
Hiệp durian, and Chợ Gạo dragon fruit.
The province
grows more than 1.5 million tonnes annually.
VPBank to sell 17 million
treasury shares to employees
The Viet Nam
Prosperity Joint Stock Commercial Bank (VPBank) will sell 17 million treasury
shares for current employees in 2020, worth a total VND170 billion (US$7.31
million).
The
issuance, which accounts for 0.67 per cent of its total shares, would be
submitted to its annual shareholder meeting, scheduled to be organised on May
29, for approval.
The shares,
with a price of VND10,000 each, will be restricted from trading for three
years, the bank said in a document sent to shareholders.
However, the
management board could decide to loosen the restricted time for transfer
depending on human resource policies. Thirty per cent of the shares will be
restricted from trading for one year. Thirty-five per cent of the shares will
be available for trading after two years and shareholders will be able to
trade the remainder after three years.
The issuance
was expected to be implemented in the third quarter of this year.
VPBank
targeted to increase its total assets by 12.7 per cent to VND425.1 trillion
in 2020, customer deposits and valuable papers planned to reach VND299.7
trillion, an increase of more than 10 per cent and an outstanding loan of
VND304.7 trillion, an increase of 12 per cent. The bank also targeted
before-tax profit of VND10.2 trillion, down 1.1 per cent compared to 2019
while non-performing loans (NPL) ratio would be under 3 per cent.
The bank’s
leaders said they have seen positive business results in terms of credit
growth, revenue and consolidated profit despite the affects of COVID-19.
VPBank
expected that the banking sector would regain its growth by the end of second
quarter this year while the pandemic is under control, pushing recovery of
production and business activities.
The bank
planned to not pay dividends for 2019 to retain the capital for its business
activities.
At the
upcoming shareholder meeting, VPBank would vote for its management board and
Supervisory Board in 2020-25 period. The current members such as Ngo Chi
Dung, Bui Hai Quan, Lo Bang Giang and Nguyen Duc Vinh would be still in the
voting list. Nguyen Van Phuc, a member of the Independent Board of Directors
would be a new candidate this term.
Tiki commits
to support VPBank’s business households
E-commerce
platform Tiki has become the fourth partner of VPBank to join the bank’s
“Household Business Academy” programme, which enables business owners to
conduct transactions via online channels in light of the social distancing
order, as well as to maintain their revenue sources.
Accordingly,
Tiki would have consultants to support the first 200 household businesses
participating into the programme and open an online shop at https://tinyurl.com/vpbank-tiki.
The households would be given training on online trading on the e-commerce
platform.
In addition,
they would also be offered preferential policies such as free designs of
image and banners for ads, Tiki Ads and a livestream Tiki live advertising
package.
A Tiki
representative said this e-commerce floor has seen strong growth in the first
months of this year. It was estimated that there were 3,000-4,000 orders a
minute at peak times on this platform.
VPBank said
the participation of Tiki in its programme has affirmed that digital
transformation has been a vital trend for household businesses in the current
context. The launch of its “Household Business Academy” programme has been in
time to support the businesses overcome difficulties caused by COVID-19.
“We expect
that household businesses could take advantage of the support from e-commerce
floors to have good results for their online trading,” he added.
The pandemic
has caused changes in consumers’ shopping habits, opening new opportunities
for online trading. Statistics from the Ministry of Industry and Trade showed
that revenue of traditional markets in Ha Noi was reduced by 50-80 per cent
in the first four months of the year. Meanwhile, that from online shopping
through e-commerce increased by 20-30 per cent.
After a
month of launching, the bank’s programme attracted participation of more than
12,500 household businesses nationwide. Hundreds of household businesses have
successfully applied online sale skills.
Earlier,
three partners including Shopee, Sendo and Be also joined the programme.
SSI asset management to IPO
new fund by end of June
SSI Asset
Management Co Ltd (SSIAM) will launch an IPO for its exchange-traded fund ETF
SSIAM VN30 between May 26 and June 29.
The new fund
mimics the movement of the large-cap tracker VN30-Index, which contains the
30 largest stocks by market value and trading liquidity on the Ho Chi Minh
Stock Exchange (HoSE).
The initial
value of the fund is estimated at VND50 billion (US$2.13 million).
SSIAM gained
approval from the State Securities Commission for the IPO on Friday.
SSI
Securities (SSI), Mirae Asset Vietnam Securities and BIDV Securities are the
managers of the fund, while the supervisor is the Joint Stock Commercial Bank
for Foreign Trade of Vietnam (Vietcombank).
The ETF will
be listed on HoSE following the offering.
SSIAM VN30
ETF is the second fund that tracks the large-cap VN30-Index. The first is the
VFMVN30 ETF managed by VietFund Management (VFM) with a total value of VND6
trillion ($255.75 million).
According to
SSIAM, the 30 stocks in the VN30 basket account for 73.4 per cent of total
market capitalisation. Those stocks are also leading companies in their
sectors.
The new fund
is expected to become a good-quality and low-cost option for investors. It
will help increase capital flowing into investment funds and make investors
pay more attention to fund certificates in addition to buying stocks.
On March 18,
SSIAM’s exchange-traded fund SSIAM VNFIN LEAD debuted on HoSE.
Gelex CEO to raise ownership
Chairman and
CEO of the Vietnam Electrical Equipment Joint Stock Corporation (Gelex)
Nguyen Van Tuan plans to up his stake in the company by 3.07 per cent.
The firm’s
CEO will buy 15 million shares from May 26 to June 24, equal to 3.0722 per
cent of the company’s total outstanding shares.
The company
has recently announced a plan to sell its logistics arm in the third quarter
of the year in an attempt to restructure its portfolio and focus more on
electrical equipment and infrastructure sectors.
Gelex has
also decided to offload a 20.25 per cent stake in Dong Nai Port JSC.
Gelex
shares, listed on the Ho Chi Minh Stock Exchange with code GEX, gained 1.5
per cent to trade at VND17,150 (US$0.73) apiece on Friday. Shares have gained
14.3 per cent in the last three weeks.
In
January-March, Gelex earned VND3.5 trillion ($150 million) worth of net
revenue, up 14.2 per cent on-year. But net profit dropped 43 per cent on-year
to VND93.5 billion due to increased selling, financial and management
expenses.
MPI introduces
state-of-the-art operating platform
Viet Nam's
Ministry of Planning and Investment (MPI) on Friday launched a cutting-edge
integrated operating centre that is capable of collecting, analysing and
disseminating information in the shortest time possible with the highest
accuracy.
Minister
Nguyen Chi Dung said the centre was built to integrate existing databases of
the ministry’s subsidiaries. It is expected to issue early and clear
warnings, improve the country’s socio-economic landscape as well as enhance
the MPI’s internal management.
The centre
uses information and analytical technology to assist policymakers to make
timely decisions and respond to a wide range of issues, including those that
have been anticipated and emergencies, according to Nguyen Nhu Son, director
of the MPI’s IT Centre. Information is integrated from six national
information portals on business registration, foreign investment, public
investment, procurement network, investment management and statistical
databases.
“It can be
viewed as the ministry’s “brain” which offers overviews and insights
involving the MPI,” said Dung.
The centre
will continue bringing in other information systems and databases to track
missions of the Government and Prime Minister, monitor public servants,
manage dossiers and even hold teleconferences.
HCM City-Vung Tau ferry
service to be launched in September
HCM City is
set to launch a ferry route linking the city's Can Gio District and the
popular beach city of Vung Tau in Ba Ria-Vung Tau Province from September.
Bui Hoa An,
deputy director of the municipal Department of Transport, said that the work
on the project has mostly been completed for the operation scheduled to start
from September 2.
Six ferries
will be used for the 15-km route which will take around 30 minutes. They can
transport 350-500 passengers, 100 motorbikes and 20 cars and make 24 return
trips a day.
The proposed
one-way ticket is VND50,000 (USD2.17) per person.
The service
will help to shorten the travel between HCM City and Vung Tau City.
At present,
the wharf construction is underway which is slated for completion for nearly
one month to come.
The ferry
route is also expected to promote tourism in the HCM City’s coastal suburban
district of Can Gio where owns great potentials for tourism development.
According to
experts, the ferry service will help to ease pressure on roads connecting HCM
City and Vung Tau City, including the HCM City-Long Thanh-Dau Giay Expressway
which often faces traffic congestion during holidays.
Tran Song
Hai, general director of Cong Nghe Xanh DP Ltd. Co. which operates the
high-speed HCM City-Vung Tau catamaran said that the travel demand between
the two cities has been on the rise. So, it is necessary to open the ferry
route which can carry bulky goods.
Solutions sought to turn Can
Tho into centre of Mekong Delta region
A seminar
was held in Can Tho on May 23 to discuss measures to turn the city into a
centre of the Mekong Delta region with sustainable development.
Participants
to the event analysed and assessed potential and advantages of Can Tho city
as well as achievements made by the municipal authorities over the last 15
years.
They
proposed solutions, mechanisms and policies to remove bottlenecks, thus
promoting rapid and sustainable development in the locality in the time to
come.
Addressing
the seminar, head of the Party Central Committee’s Economic Commission Nguyen
Van Binh stressed the need for Can Tho to take measures to adapt to
increasing complicated climate change in the region.
He said
attention should be paid to promoting industry and service development,
especially scientific and technological services in the fields of health,
education and training, towards turning Can Tho into a centre of providing
solutions on science and technology in all fields for the Mekong Delta
region.
Binh urged
the municipal authorities to focus on upgrading and developing infrastructure
systems, especially those serving transport, economic development, education,
science and technology, and human resources training.
Regarding
agricultural development, Professor Vo Tong Xuan, principal of Nam Can Tho
University, said the city needs to find big investors and businesses that are
capable of seeking export markets for local agricultural products.
He also
underlined the importance to make planning on official agricultural growing
areas to ensure the provision of materials for enterprises, while enterprises
should cooperate with farmers to form production chains meeting new
standards, thus producing clean materials to provide for businesses.
Can Tho
recorded stable economic growth in the 2006-2019 period, with an annual
average growth rate of 7.23 percent, higher than the nation’s average growth.
GDP per capita reached 88.3 million VND in 2019, seven times higher than that
in 2005.
The city has
affirmed its central role in the Mekong Delta in some areas such as education
- training, health, culture, science and technology, and social security.
Indonesia to receive 56
million USD from Norway for reducing emissions
Indonesia is
set to receive a 56 million USD grant from Norway as the first payment for
the Southeast Asian nation’s success in reducing deforestation and carbon
emissions under the Reducing Emissions from Deforestation and Forest
Degradation (REDD ) cooperation scheme.
According to
a statement from the Indonesian Environment and Forestry Ministry issued on
May 21, the grant would be handed over in June – coinciding with the
commemoration of a decade of climate funding cooperation in which Indonesia
would receive a total of 1 billion USD for protecting its tropical forests.
Indonesian
Environment and Forestry Minister Siti Nurbaya said the grant was a
result-based payment.
“This is
going to be the first payment for Indonesia’s achievement in its REDD effort
during the period between 2016 and 2017,” The Jakarta Post newspaper quoted
the minister as saying.
The ministry
reported to Norway that Indonesia saw a decline in the deforestation rate in
the 2016-2017 period, with 480,000 hectares of forest lost that was believed
to have prevented the release of about 4.8 million tonnes of carbon dioxide
equivalent (CO2e) emissions to the atmosphere – a figure lower than the
baseline agreed upon by both countries.
According to
the verification process conducted by the Norwegian government from November
last year to March, the emissions reduction achieved by Indonesia in the
2016-2017 period was counted at 11.2 million tonnes CO2e – higher than its
initial report of 4.8 million tonnes.
According to
Minister Siti, each tonne of CO2e under the scheme is valued at 5 USD,
referring to the price designated by the World Bank for the REDD scheme.
She said
Indonesia expects to receive another round of payments for its progress in
the 2017-2018 period and onward.
The fund
will be channeled through the Indonesian Environmental Estate Fund (BPDLH), a
public service agency tasked with managing funds related to environmental
protection and conservation. The agency was launched in October last year.
The fund
will be used to finance community-based environmental recovery efforts under
President Joko Widodo’s direction.
Cambodia’s bicycle export
surges despite pandemic
Cambodia’s
export of locally-assembled bicycles has increased in the context that
bicycle industries around the world rust during the ongoing COVID-19
pandemic.
Local
channel BTV News reported that Cambodia exported some 498,000 bicycles worth
about 119 million USD in the first quarter of this year, 10 million USD
higher than that of the same period last year.
Cambodia
Chamber of Commerce vice-president Lim Heng said exports of locally-assembled
bicycles can only gain traction as traffic and health concerns force people
to reconsider their primary means of transportation.
Bicycle
exports are expected to continue to increase in the second quarter when local
people still avoid public transportation and need to use bicycles to
exercise, said Heng.
He
highlighted that now is the opportunity to invest in bicycle assembly in
Cambodia for export.
According to
the Royal Academy of Cambodia's economic researcher Hong Vanak, although some
orders were cancelled in the first three months of this year because of the
pandemic, Cambodia’s bicycle export is still a bright spot, making an
important contribution to the national economic development.
A report of
the World Bank shows that Cambodia exported a total of 1.52 million bikes to
the European market in 2018, raking in 331 million USD.
Vietjet offers promotional
tickets to celebrate Int'l Children's Day
Vietjet is
offering more than 2 million super-saver tickets priced from only 1,600 VND
on all 45 of its domestic routes, the airline announced on May 24.
The
programme aims to celebrate International Children's Day on June 1 and
Vietnamese Family Day on June 28.
"This
is a gift from Vietjet so children and their families can experience a joyful
summer and connect in all parts of the country," Vietjet said in a
statement.
The tickets
will be available between May 25 and June 1, 2020 on www.vietjetair.com and
the Vietjet Air mobile app.
The flight
period will run from June 1, 2020 to December 31, 2020 (excluding national
holidays).
Earlier this
month, the airline also launched a promotional campaign with more than
200,000 tickets priced at zero VND on all routes until June 30.
From now
until June 30, each Vietjet flight will have 25 seats at a price of zero VND
(excluding taxes and fees) for travel companies, with the others available
for purchase by individuals, the airline said.
With 45
domestic routes covering the country and an on-time performance rate of 97.4
percent, Vietjet is in position to stimulate domestic tourism and create
favourable conditions for people to travel after the COVID-19 pandemic.
VNN
|
Thứ Ba, 26 tháng 5, 2020
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