VIETNAM'S BUSINESS NEWS HEADLINES JUNE 19  02:18       Vietnam enjoys sharp increase in export of rice and medical masks Vietnam witnessed a sudden rise in the export of rice and medical masks during the first five months of the year, according to statistics released by the General Department of Vietnam Customs. In total, the country exported more than 321 million medical masks throughout the reviewed period, with up to 180 million masks being shipped abroad during May alone following the lifting of restrictions regarding the export of medical masks.  This figure represents a 1.3-fold-increase in comparison to the total export volume during the four-month period. In recent times, medical masks have started to be regarded as a special export item since the outbreak of the novel coronavirus (COVID-19) epidemic began in China before spreading globally. Within the domestic market, the price of face masks has remained stable and they are being widely sold at various distribution channels at reasonable prices. In addition to the sale of medical masks, the country also shipped large quantities of rice abroad during the reviewed period, with the rice export volume reaching approximately 954,000 tonnes in May alone, making over US$492 million, representing an increase of over 87% in volume and a 93% boost in value compared to the previous month. Indeed, the average export price of rice reached more than VND11.8 million per tonne during the five-month period, far higher than around 10 million per tonne that was seen during the same period last year. By the end of May, rice export volume stood at 3 million tonnes, grossing US$1.5 billion in revenue, whilst the average export price reached more than VND11.5 million per tonne. The largest quantities of Vietnamese rice products were exported to the Philippines, with more than 374,000 tonnes shipped there in May, exceeding US$183 million in turnover, making up 39% of the total export volume and with an average selling price of VND11.2 million per tonne. Overall, the nation shipped 1.3 million tonnes to the Philippines during the five-month period, accounting for more than 43% of the total export volume with an average price of only VND10.5 million per tonne. May saw the country export 155,200 tonnes to the Chinese market at a selling price of VND14.6 million, bringing the total export volume to the market to nearly 430,000 tonnes over five months with the average rice export price to China reaching VND13.7 million per tonne./. Japanese investment fund channels 8 million USD into Vietnam’s cinema chain Beta Media has just secured a deal to receive 8 million USD from Japanese investment fund Daiwa PI Partners. With this agreement, the entertainment company achieved an enterprise valuation of 1 trillion VND (43.15 million USD). In 2015, Beta Media received investment capital from Vietnam Investment Group (VIG), and 2.5 million USD two years later from Blue HK Financial Group (Hong Kong), with a valuation of 600 billion VND. Beta Media operates low-cost movie theater chain Beta Cinemas, which was launched in 2014, with 12 cineplexes and nearly 60 cinema halls nationwide. Daiwa PI Partners, a subsidiary of Daiwa Securities Group, engages in a wide range of investment areas and funds./. Vietnamese bananas marketed to Lotte Mart consumers in RoK Lotte Mart, working in collaboration with the Vietnamese Embassy in the Republic of Korea (RoK), hosted a trade promotion event Seoul on June 16 to introduce Vietnamese bananas to Lotte supermarket chain based across the RoK. Despite Vietnamese bananas being exported to the RoK market since 2014, the product has so far failed to penetrate major supermarket chains such as Lotte Mart.  However, recent years have seen the nation’s banana export turnover to the Korean market rise significantly with export volume increasing from 180 tonnes in 2015 to 6,685 tonnes in 2019, raking in US$4.2 million in the process. These positive results can largely be attributed to the fact that local firms have been actively co-ordinating efforts with Korean businesses and the Vietnamese Trade Office in the RoK, to improve the variety of products, while also ensuring that factors such as harvest, cultivation, preservation, and packaging are suitable for the tastes of Korean consumers. According to a number of commercial experts, Lotte Mart's outstanding capability in terms of distribution and quality management experience means that Vietnamese bananas such as LOPANG BANANA, a high-quality variety grown in the Central Highlands, will certainly win RoK consumers’ trust. Indeed, LOPANG BANANA is currently sold at nearly VND80,000 per 1.2kg, with Lotte Mart expected to import approximately 1,600 tonnes per year in order to distribute them through 81 locations across the Far East nation. With the import turnover of bananas reaching over US$300 million per year, banana is viewed as a commodity that the country has plenty of capacity to increase its market share within the RoK. In the near future, the Vietnamese Embassy in the RoK is set to continue working closely with Lotte Mart and other distributors in an effort to boost exports of Vietnamese banana to this potentially lucrative market./. Myanmar attracts over 4.1 billion USD foreign investment in 8 months Foreign enterprises have poured over 4.1 billion USD into Myanmar in the first eight months of fiscal year 2019-2020 (starting October 2019), according to figures issued by the Directorate of Investment and Company Administration (DICA) on June 15. The Myanmar Investment Commission (MIC) gave the investment licences to 178 foreign enterprises from October 1, 2019 to May 31. During the period, power sector attracted most investment capital with over 1.67 billion USD, followed by real estate and manufacturing sectors. From FY 1988-89 to FY 2019-20, the MIC gave the nod to 2,015 foreign enterprises, with investment capital of over 85.9 billion USD. Power sector took 26.60 percent of foreign investment, followed by oil and gas sector with 26.51 percent and manufacturing with 14.11 percent. Singapore, China and Thailand are leading investors in Myanmar./. Singapore’s unemployment rate hits decade high The latest labour market report released by the Ministry of Manpower (MOM) reveals that the country’s unemployment rate in the first quarter of 2020 hit 2.4 percent, the highest in a decade. Total employment, excluding foreign workers, recorded its largest quarterly contraction on record as it shrank by 25,600 in the first quarter after growing by 19,800 in the previous quarter. The decline was more than what was seen during the severe acute respiratory syndrome (SARS) outbreak in the second quarter of 2003 and the global financial crisis in the first quarter of 2009, when employment contracted by 24,000 and 8,000 respectively. The food and beverage, arts and entertainment, and administrative sectors saw the largest decline in job vacancies, while openings in areas like infocomm technology and health care increased. The construction, trade and tourism-related industries were among those most impacted by reductions in employment. The number of people employed in F&B, construction and retail trade saw the sharpest employment declines, falling by 8,300, 5,800 and 5,400 respectively. Singaporean Manpower Minister Josephine Teo cautioned that the full effects of COVID-19 were not yet felt in the first quarter. Activity levels in January were still quite high given the new year festivities, she said. And though tourism had been badly hit since February, most travel restrictions were not yet in place and the “circuit breaker” did not take effect until April. Therefore, there could be many more employees placed on shorter work weeks or temporary layoffs, she noted. As for the future, Teo said that Singapore has to get ready for more layoffs and to help those who have lost their jobs. “We have to try our very best to open up more pathways for the job seekers,” she said, citing the national jobs strategy that aims to create 100,000 job opportunities. Part of the strategy is to have the public sector bring forward its hiring plans./. Malaysia’s AirAsia to resume all domestic routes from July Malaysian budget carrier AirAsia Group will restart all domestic routes from July, Chief Executive Officer Tony Fernandes said on June 15, after the government eased movement curbs for containing the coronavirus. Malaysia allowed interstate travel to resume last week as part of the government’s plan to revive an economy hit hard by the pandemic after declaring that the coronavirus was successfully brought under control. Fernandes said the airline will run flights over its entire domestic network and at full seat capacity, according to government guidelines, though frequency would depend on demand. “We’re seeing very strong demand. Very, very strong. People want to fly, people want to go home, they want to resume business,” Fernandes was quoted by Reuters as saying at a company event to launch the airline’s new agriculture e-commerce platform. Fernandes said the platform, called OurFarm, aims to connect local farmers directly to businesses, besides serving as the main source of fresh produce for AirAsia’s in-flight food outfit, Santan. The airline group also intends to expand its cargo business transporting produce from the farmers on the platform in the next three to four months. Fernandes said the group will “use our planes to get farmers to extend their market beyond the local area that they operate in” such as flying fish directly to North Asian markets or Singapore./. Real estate businesses seek ways for recovery pathway after COVID-19 A significant number of real estate businesses are looking to recover from the impact caused by the novel coronavirus (COVID-19) epidemic through making adjustments to their business strategies in an effort to capture the attention of prospective buyers who are keen to settle down or make an investment. The COVID-19 pandemic has had a profound impact on the entire national economy, in which the property market has been greatly affected. In Ho Chi Minh City, in addition to the efforts of enterprises, the State management agency has also been active in taking steps to remove difficulties and legal obstacles that previously suspended real estate projects had faced.  According to a report published by the Ministry of Construction detailing the housing and real estate market during the first quarter of the year, the number of successfully traded products stood at approximately 14% of the overall number of existing products on the market. This figure marks a four-year low, and equivalent to roughly 40% compared to the same period from last year. With the impact of the epidemic causing about 80% of real estate trading floors nationwide to close or suspend operations due to there being no transactions, the Ho Chi Minh City Real Estate Association (HoREA) have said this has led to a slowdown in the property market to hit the first quarter of 2020. Indeed, statistics indicate that house purchases and sales have suffered a decline of about 70%, with revenue dropping by around 80%. Nguyen Huong, general director of Dai Phuc Land Company, said the COVID-19 epidemic has greatly disrupted the development scenario of firms. This means that businesses must move to develop the housing segment for those who have real housing needs, while simultaneously adjusting their business strategies in a bid to attract the attention of customers who wish to settle down or invest in the property market. “After the pandemic, property firms should apply incentive payment policies with customers only paying 30% in advance after receiving their houses and paying the rest after 24 months. This very good financial solution has seen an increase in transactions in late April and in early May,” Huong noted. Bui Ngoc Duc, CEO of Dat Xanh (Green Land) Group, underlined the need to develop sales based on technology platforms as opposed to launching sales through major conferences that would see crowds of people descend on a venue. This shift would help both customers and salespeople make more interactions through software solutions in a more convenient and easier manner. In the context of the current real estate market, Le Hoang Chau, HoREA President, suggested businesses across the country should strive to overcome difficulties by restructuring their investments and key products. Furthermore, there must be a particular focus made to affordable housing products in order to meet the needs of the majority of citizens. To facilitate a pathway to post-epidemic recovery for real estate enterprises, Chau proposes that insurance agencies allow businesses to extend the deadline for their social insurance payments from March to June. In addition, the State Bank and direct commercial banks have been asked to consider delaying interest rate payments for banks that had debts arising during the first quarter of the year. Additionally, the Ho Chi Minh City People's Committee has recently directed relevant departments and agencies to devise solutions aimed at dealing with difficulties and problems faced by property businesses, primarily focusing on the project implementation process, changing land use purposes, and construction investment. Ho Chi Minh City has to date handled 30 projects facing difficulties as a means of creating the best possible conditions for real estate firms to revitalise themselves in the aftermath of the COVID-19 epidemic, whilst also speeding up the settlement of relevant administrative procedures. Moreover, property businesses must try to improve their own actions and pay close attention to proper investments made in business strategies in accordance with the law./. Vietnam enjoys US$1 billion in trade surplus in May Vietnam produced trade surplus worth roughly US$1 billion in May, thus raising the country’s five-month surplus to over US$3.5 billion, the General Department of Customs reported. The department’s preliminary data showed Vietnam earned US$19.19 billion from exports in May alone, up 9.1% compared to May 2019, and imported US$18.18 billion worth of commodities, down 0.9%.  Meanwhile, the first five months of the year saw Vietnamese export value fall 0.9% compared to the same period last year to nearly US$100.21 billion, and the import value decline 4.6% to US$96.67 billion. However, exports to Vietnam’s major markets all increased considerably, including China (up US$2.43 billion), the US (up US$700 million), the EU (up US$502 million) and ASEAN (up US$22.8 million).   Worthy of note is that in the review period 5 groups of export commodities that earned turnover of more than US$1 billion each include computers, electronic products and components; phones and accessories; garments and textile; machinery, equipment and spare parts; and footwear. The May figures showed the export market has begun to pick up in the context of the novel coronavirus being gradually brought under control in a number of markets./. China likely to increase Vietnamese lychee imports China, which consumes about half the global lychee output, is projected to increase the import of the fruit this year to meet the local increasing demand, and Vietnam, with the lychee harvest season in full swing, has emerged as a main supplier. The International Trade Center (ITC) reported that China's import of fresh lychees rose by 4.64% annually in the 2015 - 2019 period. In the first four months of this year alone, China imported up to 173 tonnes of lychees worth US$190,000, up 77% in volume and up 288.7% in value over the same period last year.  Due to the impact of the COVID-19 pandemic, China’s lychee imports from Vietnam fell considerably over the same period in 2019, while imports from Thailand increased sharply. Statistics showed that the price of lychees imported from Thailand during the first four months of 2020 was 3.3 times higher than that of Vietnam. In April 2020, the price of Thai lychees was traded at US$1.17/kg, while that of Vietnamese just stood at US$0.35/kg. China is a leading global consumer of lychees. Every year, it purchases approximately 1.55 million tonnes from abroad for local consumption, making up 50% of global output. In addition to consuming fresh lychees, China uses the fruit to make jams, confectionery, medicine, juice and wine, therefore lychee is in short supply in the mainland.   In early June, Vietnam allowed more than 300 Chinese dealers to enter and purchase lychees from Bac Giang province, one of the country’s lychee growers and producers. With a high demand of lychees for local consumption, the import of Vietnamese lychees is expected to increase sharply in the coming weeks when the lychee harvest season is in full swing in Vietnam./.  Programme to foster international market links for Vietnamese businesses unveiled Vietnamese enterprises looking for new technologies or to promote their products internationally markets are encouraged to participate in the VCIC CONNECT Programme. The "Technology transfer, investment promotion and international market connection" programme, organised by the Vietnam Climate Innovation Centre (VCIC), seeks to help local firms find strategic global partners for technology, finance and trade. It targets Australia and the Republic of Korea to start with since they are strong in technology and have close economic ties with Vietnam. The programme priorities businesses in energy efficiency, sustainable agriculture, water management and filtration, renewable energy, information technology used to respond to climate change, and other technologies related to climate change. Firms can register to participate at https://bit.ly/VCICConnect until June 20. The programme will also help Australian and RoK technology groups, research institutes and universities identify partners for technology transfer in Vietnam. Selected Vietnamese companies will receive consultancy and training from VCIC experts in making document profiles and project proposals and assistance in the negotiation process with foreign partners, and make trips to RoK or Australia to connect with foreign partners sponsored. Speaking at a seminar to launch the programme in HCM City on June 11, Nguyen Duc Nghiem, director of VCIC project management board, said, “In the last five years VCIC has built partnerships with many local and foreign organisations and associations, investment funds and reputed technology companies. “We have also organised many activities to help businesses enhance their competitiveness, especially in science and technology, and create opportunities for businesses to reach out to international partners”./. Trade counselor advises firms to optimise EVFTA Vietnamese Trade Counsellor to Germany Bui Vuong Anh has outlined important notes for domestic enterprises to make the most of the EU-Vietnam Free Trade Agreement (EVFTA) ratified recently by the Vietnam National Assembly. The ratification of the EVFTA marked a fairly good start but it is more important for Vietnamese companies to explore ways to optimise benefits from the trade deal to boost exports to Germany, according to Anh. The EVFTA supplements the World Trade Organisation (WTO), Anh told the Vietnam News Agency's correspondents, adding that Vietnam and Germany have basically completed required procedures to set up a joint committee for economic cooperation this year. Germany plays a vital part in the EU and it is a major importer of most of Vietnam’s key products shipped to the EU, he said. Germany has become one of Vietnam’s leading trade partner in recent years, with the two-way trade exceeding US$15 billion in 2019, of which exports to Germany hitting nearly US$11 billion. The trade counselor urged domestic producers to enhance productivity and use of advanced technology in production while adding values for their products and meeting Germany’s health and food safety requirements. They should bring into full play the special mechanism from both the EVFTA and the Vietnam – Germany joint committee for economic cooperation to gain broader access to the German as well as EU markets, he added./. Tra fish exports to EU see a sharp fall due to COVID-19 By mid-May, Vietnamese Tra (Pangasius) exports to the European Union were valued at US$53.4 million, down by nearly 36% compared to the same period last year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP). The VASEP attributed the fall to the novel coronavirus pandemic which has been taking its toll on economies globally, including those in the EU. By the time, the EU had dropped to fourth place in the top 5 largest Pangasius export markets of Vietnam, after China, Hong Kong (China), the US and ASEAN.  Indeed, the first 5 months of this year saw Vietnamese Pangasius exports to the EU decrease continuously. In addition, Pangasius material prices also dropped as Vietnam's biggest Pangasius export market, China, stalled, leading to a decrease in the export value of Pangasius to the EU. The COVID-19 pandemic is yet under control in Europe. The Eurozone economy is forecast to nosedive to a record level of about 7.75% this year. These factors are to have a great impact on Pangasius exports to the EU this year, and the value of Pangasius exports to this market is likely to further decline in the near future. To lessen the impact, the fisheries sector is to strengthen the control of aquaculture conditions and the quality of inputs. It will encourage farmers and processors to join the interconnected supply chain network to operate according to the supply and demand law in the market./. Indonesia seeks economic opportunities in Vietnam post-COVID-19 Indonesian entrepreneurs should strive to take advantage of greater business opportunities in Vietnam in the post-COVID-19 period to increase exports to this market, said Indonesian Ambassador to Vietnam Ibnu Hadi. The Indonesian Ambassador made the statement during a recent teleconference held to discuss the Vietnamese economic recovery following the COVID-19, along with the opportunities that exist for Indonesian businesses.  The diplomat noted that Vietnam has effectively controlled the COVID-19 epidemic with no new community infections for nearly two months in a row. It is now focusing on efforts to reboot the economy aimed at stimulating domestic consumption and boosting exports. An export-driven economy like Vietnam with export turnover last year alone reaching US$264 billion is presenting plenty of opportunity for Indonesian businesses to supply raw materials and semi-finished products to the nation, said Ibnu Hadi. In addition, he suggested Indonesian businesses take advantage of tax reductions and preferential measures offered to businesses by the Vietnamese government to deeply penetrate into the market. The Ambassador outlined how the two countries have always been rivals in terms of the coffee, pepper, rubber, and textile industries, noting Vietnamese success in becoming one of the 10 main economic partners of Indonesia. It is time for Indonesia to stop treating Vietnam merely as a competitor but to seize opportunity to make inroads into this potential market, said Ibnu Hadi, adding that the Jakarta business community must learn from Hanoi’s experience in connecting with the global supply chain./. Four-month crab exports increase sharply to US$44.5 million Vietnam’s crab exports were worth US$44.5 million in the first four months of this year, a 40% year-on-year increase, according to the Vietnam Association of Seafood Exporters and Producers (VASEP). The main markets were China, the US, Japan, and the EU. China, which was only the fourth largest buyer in the same period last year, bought more than US$13 million worth of the crustacean, up nearly 394%. Exports to Japan grew by 37.4% to US$10.3 million. But shipments to the US and EU decreased by 18.3% and 17%, respectively. China also increased import of Vietnamese fish cakes and surimi by 37% to US$14.8 million. It was the only major market to increase the import of fish cakes and surimi from Vietnam. VASEP said Chinese demand for seafood has recovered since March. Vietnam’s exports to the country increased by 35% in April and 20% in May. Japanese demand for Vietnamese seafood has also been robust. In May, exports were up 9% after increasing by 16% in April. VASEP said that with this rate of growth, Japan would continue to be one of the largest markets for Vietnam this year and help offset much of the decline in exports to the US and the EU./. Businesses want more support to help them recover after the pandemic The Government needs to have more practical and quicker support policies to help businesses, especially small ones, recover from the effects of the COVID-19 pandemic, business executives have said. The General Statistics Office said in the first five months of the year, 26,000 firms temporarily ceased operations, well more than a third up from the same period last year. Nearly 6,100 businesses closed down, down 5 per cent, 2,200 of them in wholesale and retail and automobile and motorbike repair, it added. The prolonged pandemic has had a severe impact on the Vietnamese business community, especially small companies. They need financial support as well as policies to recover after the pandemic. The Government has come out with a number of policies that seek to help businesses resume operations. Recently, it submitted a tax cut proposal to aid businesses to the National Assembly for approval. It seeks to cut the corporate income tax by 30 per cent this year for firms which have revenues of up to VND50 billion (US$2.61 million) and 100 workers. But Lu Nguyen Xuan Vu, CEO of Xuan Nguyen Group Joint Stock Company and a member of the executive committee of the HCM City Union of Business Associations, said while these policies are practical their enforcement has been tardy. “We expect these policies to benefit businesses faster because it is essential for them to recover [quickly] after the pandemic.” Regarding to the tax cut proposal, he said an income tax reduction of 30 per cent would not be beneficial since very few businesses would make profits this year. Many businesses and business groups have urged the Government to reduce the value-added tax for at least one year, especially for businesses involved in agriculture. If the Government cuts value-added tax from 10 per cent to 3-5 per cent, production costs and prices would go down, and consumers would buy, they said./.  Vietnamese High-Quality Goods awards given away to more than 600 firms More than 600 businesses received the 2020 Vietnamese High-Quality Goods awards at a ceremony held in HCM City on Friday. They make a range of products such as sauces, spices, confectionary, non-alcoholic beverages, cosmetics, jewellery, electrical and household machinery; dairy products, farm produce, pharmaceuticals, and dried foodstuff and instant foods. For the first time, because of the COVID-19 epidemic in the first quarter that continues to have a negative impact on the market, the Vietnamese High-Quality Goods certification will be valid for two years since businesses need time to recover, according to the High Quality Vietnamese Product Business Association, which gives the awards. The 24th annual awards were based on a survey done by directly interviewing 12,699 households and 2,564 sellers in provinces or cities in key economic centres across the country and an online survey using a specialised app that received 2,000 responses. The survey was checked for transparency of information by authorised agencies and relevant industries and checking for transparency of information. Vu Kim Hanh, chairwoman of the association, said it also granted Vietnamese High Quality Goods Integration Standard certificates to 44 companies, taking the number so far to 146, 118 of them in the food sector. The certification is based on Vietnamese and global Good Agricultural Practices (VietGAP and GlobalGAP) standards./. SHB to raise capital to US$832 million Sai Gon-Ha Noi Joint Stock Commercial Bank (SHB) plans to increase charter capital to VND19.3 trillion (US$832 million) in 2020. The bank will issue bonus shares at a rate of 10 per cent in the third or fourth quarter of the year to raise capital. Every shareholder will receive one bonus share for every 10 shares they have. SHB on May 6 completed issuing 500 million new shares to raise its capital to VND17.558 trillion. Of the income brought by the share issuance, SHB will spend VND400 billion upgrading its technological background and expanding its office network. The rest of the income will be spent on enlarging its lending capacity. SHB will keep increasing its capital in the future to strengthen sustainability and financial health, Chairman Do Quang Hien told the bank’s annual shareholder meeting on Monday. No cash dividend also means more money for the bank to settle VND1 trillion worth of VAMC bonds that SHB owes to the Vietnam Asset Management Company, he said. A total of VND6.08 trillion worth of non-performing loans (NPLs) are set to be recovered this year. There are challenges to come this year because of the COVID-19 pandemic, he said. “Local companies, especially exporters, will still be struggling to recover after the crisis is over.” The coronavirus crisis has made SHB more cautious with its earnings target this year. In 2020, SHB expects total assets will rise by 11.8 per cent year-on-year to VND408.45 trillion and deposits will gain 16 per cent year-on-year to VND334.64 trillion. Total lending is expected to grow by 15 per cent year-on-year to VND306.12 trillion and pre-tax profit is projected to move up only 8 per cent year-on-year to VND3.27 trillion. Pre-tax profit has been cut from the previous forecast, which was expected to rise 41 per cent year-on-year to VND4.35 trillion. In the first five months of the year, SHB recorded VND1.3 trillion worth of pre-tax profit. Participants at the meeting also discussed SHB’s plan to give up part of its ownership in SHB Finance Company (SHBFC). The Board of Directors plans to sell part of the bank's shares at SHBFC to foreign investors. The deal must be passed by the State Bank of Vietnam (SBV). The divestment deal is expected to boost SHB’s income and help the bank reach international markets. The bank also plans to move its shares to the Ho Chi Minh Stock Exchange from the Ha Noi Stock Exchange. SHB shares (HNX: SHB) fell 1.2 per cent to end Monday at VND15,800 apiece./. Corporate bond issuance drops a tenth in May Total value of corporate bond issuance fell 10 per cent month-on-month to VND27.06 trillion (US$1.17 billion) in May, according to the Ha Noi Stock Exchange. Eighty per cent of the bonds were medium-term with maturities of three to five years. Banks and property developers remained the biggest issuers but their issuance values declined. Banks’ corporate bond issuance was down a fifth monthly in May to VND11.5 trillion and real estate firms’ was halved to VND4.75 trillion. On the other hand, corporate bond issuances in the service and construction sectors rose to VND5.63 trillion and VND2.6 trillion, respectively. The biggest bond issuers in May included the Vietnam Prosperity Joint Stock Commercial Bank (VPBank) with VND6.3 trillion, the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) with VND3.09 trillion, and property firm Phu Long with VND1.4 trillion. After the first five months, 100 companies made nearly 580 bond issuances, raising a total of VND91.6 trillion worth of corporate bonds.  Nam A Bank to issue shares to increase charter capital Nam A Commercial Joint Stock Bank will issue nearly 111 million shares to raise its charter capital from VND3.89 trillion to VND5 trillion (US$214.6 million). Nearly 44 million shares will be sold to existing stakeholders and 16.7 million shares in an employee stock ownership plan (ESOP) at the offering price of VND10,000 each. The rest will be issued publicly at a price no less than market value and book value. Registry to buy shares will be open from June 23 to July 13. The bank’s ESOP shares are being issued from June 15 to July 4 and ESOP shares will be restricted from transfer for one year. The bank expects to collect more than VND1.1 trillion from the share issuance, which would be used to improve its financial capacity, expand its operation network, found subsidiary companies and increase charter capital from VND3.89 trillion to VND5 trillion. At the end of May, Nam A Bank’s stakeholders voted to hold the shareholders’ meeting online. The bank planned to hold shareholders’ meeting on March 28 but the meeting was delayed due to the COVID-19 pandemic./. LienVietPostBank plans to list on HOSE LienVietPostBank has announced a plan to shift its listing from the Unlisted Public Company Market (UPCoM) to Ho Chi Minh Stock Exchange (HOSE) in 2020. In a report sent to shareholders, LienVietPostBank said that the shift aimed to improve its image and brand identity in both domestic and international markets. The listing would also help enhance its share’s liquidity as the VN-Index is highly representative of Viet Nam's stock market and often used by investment funds as a benchmark to measure investment efficiency. LienVietPostBank also planned to increase its charter capital by issuing shares to pay dividends for existing shareholders with a rate of 10 per cent in 2020. It would also offer foreign investors with a rate of less than 4.99 per cent. LietVietPostBank has been one of the few banks paying dividends regularly since its establishment. The bank said the capital increase was necessary to help them follow strict regulations on capital adequacy ratio (CAR) regulated by the State Bank of Viet Nam and meeting Basel II standards. This would also improve the bank’s financial capacity, operation scale and competitiveness in the following years. According to the audited financial report, LienVietPostBank posted a pre-tax profit of more than VND2 trillion (US$86.1 million) in 2019, up 68 per cent year-on-year and surpassing 107 per cent of the yearly target. This was the highest pre-tax profit level since its establishment. Of which, the service sector saw impressive results, especially bancassurance with a high growth rate of 217 per cent. It contributed to growth in service sector revenue in 2019 by 2.5 times over the previous year. Other business targets also saw high growth such as capital mobilisation rising 20 per cent to VND166.1 trillion, outstanding loans increasing 16 per cent to VND140.8 trillion and total assets rising 15 per cent to VND202 trillion./.  KDC to return to confectionary, unveils ambitious plans KIDO Group will return to its core business of confectionery from the third quarter of this year, a company leader announced at its annual general meeting in HCM City on Monday. This announcement comes more than five years after the company sold its snack business to a foreign company, Modelez International. “With advanced technology, great experience and a huge distribution system comprising 400,000 points of sale, we expect to be the second biggest confectionary producer in the country after two years of coming back,” Mai Xuan Tram, deputy general of KIDO Group, told the meeting. The company would focus on products that are in huge demand like snacks, specialities and gifts, he said. Demand for specialities and gifts is huge since the country has two major holidays, the Lunar New Year and the Mid-autumn festival, besides several other festivals for which consumers need to give gifts, he said. With a size of VND51 trillion (US$2.19 billion), the confectionery market is huge, he affirmed. The return to the confectionery business is among the company’s restructuring strategies, one it believed would benefit both it and shareholders. It has been acquiring some companies and started a new business in the beverages sector. The restructure would leverage the production and distribution capabilities of its subsidiaries and increase its business scale, and enable it to use resources efficiently, the company said. It would increase the stock value and liquidity for shareholders, it said. Following the restructure KIDO Group hopes to increase net revenues by two and a half times from 2020 to over VND28.1 trillion ($1.2 billion). For fiscal year 2020 it has set a revenue target of VND8.23 trillion ($354 million) and a profit before tax target of VND330 billion ($14.2 million), up 14 per cent and 17 per cent./.  TAC to pay special dividend of 75 per cent Tuong An Vegetable Oil Joint Company announced business targets for this year at its annual general meeting in HCM City on Friday. It expects revenues to increase by 10 per cent to VND4.56 trillion (US$196 million) and profits by 13.2 per cent to VND193 billion ($8.3 million). The dividend for 2020 will be 20 per cent. A special dividend of 75 per cent will be paid in the future after TAC is acquired by KIDO Group. TAC said it would seek shareholders’ votes for the takeover in July. To achieve the year’s targets, the company announced a number of solutions like developing premium products. Its chairwoman, Nguyen Thi Hanh, said measures would also be taken to expand the distribution system including through online sales. The company would strive to increase awareness of its brands among consumers, she said. Last fiscal year had been a tough one for TAC due to the COVID-19 outbreak and the volatility in the oil market, she said. But revenues exceeded the target by 7.84 per cent to reach VND4.1 trillion ($176.4 million). Profit was more than 25 per cent over the target at VND171 billion ($7.4 million). Earlier, on Thursday, the company announced its results for the first half of 2020, with net revenues jumping by 30 per cent year-on-year to VND2.22 billion ($,94.7 million) and profits by 25.5 per cent to VND322 billion ($13.8 million). The cooking oil market last year was worth VND31 trillion ($1.34 billion) and is expected to grow to VND35 trillion ($1.5 billion) in the next five years./.  Indonesia’s imports plunge further in April-May Indonesia’s imports nosedived in April and May in the wake of declining demand caused by the COVID-19, said head of the Statistics Indonesia (BPS) Suhariyanto on June 15. Imports of consumer goods shrank 23.08 percent and 39.83 percent, respectively, in April and May from a year earlier due to fewer domestic purchases. The goods items included fruits, air conditioners and other electronic products imported from China as well as date palms from the Middle East, according to data from the BPS. During the period, imports of raw materials plummeted 43 percent to 6.11 billion USD, while imports of capital goods shrank 40 percent to 1.39 billion USD./. Vinh City to be economic and cultural centre of the north central region by 2023 The Prime Minister has just approved the project to develop Vinh City, Nghệ An Province, into an economic and cultural centre of the north central region by 2023 in the spirit of Resolution 26-NQ/TW of the Politburo. According to Decision 827/QĐ-TTg, Vinh City will be built to become a civilised and modern city, which is the centre of the north central region in the fields of finance, commerce, tourism, science and technology, information technology, hi-tech industry, healthcare, culture, sports, education and training. The city targets to gain a growth rate of added value (according to 2010 comparative prices) of around 10-11 per cent per year in the period of 2020-23. The total value added (at current prices) accounts for about 25-30 per cent of the province's GDP. The average added-value per capita is about VNĐ141.7 million (US$6,081). Regarding social development, the city strives to reduce the rate of poor households in the area to below 0.25 per cent by 2023 and sustainable poverty reduction for near-poor households. The rate of trained people reaches over 70 per cent, of which vocational training reaches 46 per cent./.  Singapore retains top spot as world's most competitive economy Singapore has retained its top spot as the world's most competitive economy in the latest edition of the IMD World Competitiveness Ranking. The country kept the top slot for a second straight year in the annual list of 63 economies, which analyses their ability to generate prosperity. The factors behind Singapore's success include its strong economic performance, which stems from robust international trade and investment, employment and labour market measures. IMD noted the relative ease of setting up business, the availability of skilled labour and cutting-edge technological infrastructure in Singapore. Stable performances in both Singapore's education system and technological infrastructure - telecommunications, Internet bandwidth speed and high-tech exports - also played key roles, it said. Making up the top five after Singapore were Denmark, Switzerland, the Netherlands and Hong Kong (China). As a group, they illustrate the strength of many small economies amid the disruption caused by the coronavirus pandemic, the Institute for Management Development (IMD), which is based in Lausanne, Switzerland, said in a statement on Tuesday (June 16). The rankings are based on responses in the first quarter of 2020 from business executives on questions about how they perceive their country's economy and hard data from 2019./. Indonesian Gov’t eyes 4.5-5.5 percent economic growth in 2021 The People's Representative Council of Indonesia on June 15 approved a draft economic development and recovery plan for 2021 submitted by the Government, which eyes 4.5-5.5 percent in economic growth. The draft plan sets targets of curbing inflation at 2-4 percent, maintaining the value of rupiah at 14,900-15.300 rupiahs per USD, increasing the output of exploited crude oil to 677,000-737,000 barrels per day, and controlling State budget overspending at 3.21-4.17 percent of GDP. The Indonesian Government said that when making the plan, it had taken into account possible risks as well as national economic development and recovery potential. Recently, the Organisation for Economic Cooperation and Development (OECD) forecast that the Indonesian economy could witness a 3.9 percent contraction this year if it is hit by a second wave of COVID-19, noting that the contraction would be the first since the 1997 financial crisis. The OECD report highlights the rocky path that lays ahead for Southeast Asia’s biggest economy as the government seeks to spur an economic recovery by reopening the economy this month after more than two months of partial lockdown. The think-tank projected the economy to shrink 2.8 percent this year if the government manages to avoid a second wave of infections. Thailand to launch 1-baht savings bonds Thailand is planning to sell 200 million THB (6.4 million USD) worth of savings bonds at an unprecedented face value of 1 THB each through the blockchain-based e-wallet system of Krungthai Bank (KTB). Local media cited Patricia Mongkhonvanit, director general of the Public Debt Management Office (PDMO), as saying on June 16 that the minimum subscription is set at 100 THB per investor. She noted with the blockchain system, PDMO can break up the amount of the savings bond face value to as low as 1 THB from the regular 1,000 THB, enabling investors to better access the saving alternative. The Thai Government previously handed out 1,000 THB in the Taste, Shop, Spend scheme through KTB's Pao Tang e-wallet, making it easier for people now to subscribe to the imminent bonds through a blockchain-based e-wallet system, Patricia said, adding that those who are interested in subscribing must have accounts at KTB and apply to the bank's e-wallet. Son La province expands organic farming The northern mountainous province of Son La has emerged as a leading grower of fruit in recent years thanks to its well-chosen policy of moving in the direction of organic farming. The Chieng Hac cooperative in Yen Chau district is among the pioneers in Son La in shifting to organic cultivation. The cooperative’s members have chosen to focus on clean and safe agricultural practices since the founding more than 10 years ago. With more than 20 hectares of land under mango, the cooperative is able to export about 50 tonnes of fruit each year to Australia and China, generating average income of 200 million VND (8,575 USD) a year for each member. Director of the cooperative Ha Van Son said members strictly follow rules on recording the entire cultivation process from the origin of saplings, soil conditions, the type of fertilizers to the procedures in caring for trees and harvesting fruit. The cooperative uses only organic fertilizers and herbicides, he said, noting that their costs in the first years of cultivation would be higher than the costs of inorganic counterparts, but would then decrease, because the soil would gradually become more fertile, raising the productivity and fruit quality over the years. Nguyen Huong Long, a member of the Chieng Xuan cooperative in Van Ho district, owns a 7-ha mango orchard and three hectares of fish ponds. He said he uses fermented small fish, maize and soy bean as fertilizer for mango. For insecticide, he uses ginger, garlic and chili. Used to be the largest maize growing province in the country, Son La has switched to fruit trees and quickly become the second biggest fruit producer with more than 71,000 ha of orchards. Son La has developed 73 supply chains of organic fruits, bringing together 78 firms and agricultural cooperatives that produce a total of 13,000 tonnes of fruit a year. Director of the province’s Department of Agriculture and Rural Development Nguyen Thanh Cong said in 2020, Son La will allocate more than 6.5 billion VND to assist agricultural companies and cooperatives in expanding organic farming. Local authorities will also take measures to encourage farmers to change their farming habits and adopt biological technologies in production. At the same time, the province plans to support the development of products of local advantage and supply chains towards sustainable and safe agricultural production. Eight Vietnamese businesses eligible to import pigs from Thailand Eight out of the 15 Vietnamese registered businesses are eligible to import live pigs from Thailand with the estimated number of more than 1.9 million heads, according to the Department of Animal Health under the Ministry of Agriculture and Rural Development. Currently, one company has declared quarantine to import 500 pigs from Thailand to Vietnam for slaughter. The pigs are scheduled to be sent to a quarantne area in central Nghe An province on June 17, the department said. Earlier, the ministry had given the green light to the import of live pigs from Thailand for farming and slaughter, starting from June 12. The Department of Animal Health was assigned to issue detailed guidance on sanitary measures for the imported pigs in line with existing regulations to prevent animal disease and ensure the safety of the domestic herd. This is the first time Vietnam has permitted the import of live pigs, in a bid to counter skyrocketing pig prices in the domestic market. JICA-funded project helps Da Nang develop Lien Chieu port Representatives of the People’s Committee of central Da Nang city and the Japan International Cooperation Agency (JICA) signed a Memorandum of Understanding (MoU) on conducting survey and data collection for the Lien Chieu Port development project, at a working session in the city on July 17. Chairman of the municipal People’s Committee Huynh Duc Tho appreciated JICA’s recent contributions and support for Da Nang, especially for the project that needs to be upgraded urgently. He expressed his hope that the two sides will further expand cooperation in other fields, including healthcare, education, socio-culture and investment, in the time to come. For his part, Chief Representative of JICA in Vietnam Shimizu Akira emphasised the importance of the Lien Chieu port project to the development of Da Nang as well as the region. According to Akira, JICA will carry out researches, and coordinate with relevant departments and agencies of Da Nang to complete the project as scheduled. JICA would like to continue supporting Da Nang in projects of planning, research and socio-economic development in the coming time, he said. The survey and data collection project will be carried out from July to November this year, using official development assistance (ODA) of the Japanese government. The development of Lien Chieu Port is one of two key projects that aim to turn the central city into a main logistics centre in ASEAN and the East-West Economic Corridor (EWEC) that links Laos, Myanmar, Thailand and Vietnam. Da Nang, in cooperation with the Ministry of Transport, has been speeding up the pre-feasibility study on the construction of the Lien Chieu Port for operation in 2022. It could allow access of cargo ships of up to 100,000 deadweight tonnage (DWT) and container ships with loading capacities from 6,000 to 8,000 twenty-foot equivalent unit (TEUs) as well as 10,000DTW liquid cargo vessels./. VNN