VIETNAM BUSINESS NEWS AUGUST 3
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Fees
of ATM and POS transactions via the National Payment Corporation of Vietnam
(NAPAS) will be cut by 50-75 percent from August 1. (Photo: VNA) |
The State
Bank of Vietnam (SBV) has directed credit institutions to reduce some
transaction fees from August 1 this year to support customers amid the
outbreak of the latest COVID-19 pandemic.
Accordingly,
fees of automatic teller machines (ATM), point of sale (POS) and interbank
transactions via the SBV’s National Payment Corporation of Vietnam (NAPAS)
will be cut from 50-75 percent from August 1 to the end of this year.
The move was
made after NAPAS announced a reduction of 50-75 percent on its service fees
on electronic switching for credit institutions which means that the profits
of financial institutions will not be affected by the cut. However, the SBV
also expects credit institutions to make a bigger reduction for their
customers than that of NAPAS.
This is the
second fee reduction from NAPAS this year. The firm last year also made
another three fee cuts totalling 530 billion VND.
NAPAS’s move
is aimed at helping to develop local cashless payment systems and promote the
Government's plan to encourage electronic payments for public services during
the pandemic.
Established
in 2004 by the Vietnam National Financial Switching Joint Stock Company
(Banknetvn), NAPAS has become the foundation of the national retail payment
infrastructure.
The firm is
administering and operating a switching system interconnected with more than
18,600 ATMs, 261,000 POS machines and 300 electronic payment companies. These
are in the fields of aviation, telecommunications, hotels and tourism, and
serve over 100 million cardholders from 48 domestic and international
commercial banks operating in Vietnam./.
MPI, Amazon launch digital sales support programme for SMEs
The Ministry
of Planning and Investment (MPI) in collaboration with Amazon Global Selling
Viet Nam has launched a programme to help small and medium-sized firms set up
their digital sales channels.
Deputy head
of MPI's enterprise development department Bui Thu Thuy said despite the
pandemic, Viet Nam's import-
\export
turnover in 2020 reached US$282.6 billion. However, 72.3 per cent of growth
was from FDI firms. Domestic firms, especially SMEs, still have a lot of
untapped potential for growth.
"We
hope to see SMEs from Viet Nam making more cross-border sales through Amazon
and other electronic platforms. The programme is designed to help them build
brands and take advantage of digital trade," she said.
SMEs which
join the programme will be provided with guidelines to set up online sales
operations on Amazon and other international digital commerce platforms. In
addition, sales experts from Amazon Global Selling Viet Nam will support SMEs
in brand-building, making business plans and taking steps in the business
digital transformation process. The ministry said it aims to support up to
100,000 SMEs by 2025 with the programme.
According to
business experts, digital commerce has been identified as an ideal sales
channel for SMEs, especially for those looking to enter foreign markets
thanks to its relatively low setup cost. There are 1.9 million SMEs operating
on their platform, according to an Amazon's report.
Vietnamese qua sau make their way to Australia
Twenty-two
tonnes of Vietnamese dracontomelon - locally known as qua sau - have arrived
in Australia, said the Vietnamese Embassy's trade representative office in
the country.
This is the
first time qua sau was imported, marketed and distributed in Australia.
The souring
agent, hugely popular and widely used in Vietnamese cuisine, fetches around
AUD$18 per kilo or AUD$390,000 (VND6.5 billion) for the whole shipment.
The trade
office has printed brochures to introduce the fruit's numerous uses and
benefits to local merchants and consumers. It said the fruits have a lot of
potential in Australia.
Despite the
pandemic, Viet Nam's agriculture exports to Australia during the first half
of the year recorded a 52 per cent increase compared to the same period in
2019, reaching US$40 million.
The trade
office said it has plans to promote the dracontomelon during the ongoing Viet
Nam Dragon Fruit Week in Australia.
Ben Tre works to realise 10 billion USD export target
The Mekong
Delta province of Ben Tre aims for an export value of 10 billion USD for 2021
– 2025, according to Vice Chairman of the provincial People Committee Nguyen
Minh Canh.
The province
is expected to see its value added increase from 1.4 billion USD in 2020 to
2.6 billion USD in 2025. Industrial products and handicrafts will continue to
account for the biggest proportion of its total export turnover at 76.3
percent, followed by processed aquatic products (16.5 percent), and fruit and
vegetables (7.2 percent). Top export markets for the province include the US,
Canada, the EU, China, the Republic of Korea, Japan, Australia, and ASEAN.
Canh said
during the period, the province targets to export products of its strengths
in terms of production, weather and soil conditions, while boosting the
productivity of goods with high quality and high value added.
Coconut is
the local key export earner, expecting to reel in 560 million USD in 2025,
meaning an annual average increase of 10.05 percent in the five years.
To achieve
such goals, the official noted the province will focus on boosting local
exporters' capacity, developing products, material sources and markets for
export, and building related infrastructure.
These works
will cover the improvement of local business climate, the support for
exporters to access technologies and loans, as well as the development of
research and technology transfer regarding the processing of Ben Tre’s key
export earners, among other activities.
The province
has about 130 exporters and its products are found in 128 countries and
territories. Turnover from its overseas shipments reached more than 656
million USD in the first half of 2021, up 14.11 percent from the same period
last year./.
Disbursed public investment up 5.6 percent in seven months
The
disbursed public investment declined in July due to the surge
in COVID-19 cases, but it still grew 5.6 percent in the first seven
months of 2021 as compared to the same period last year.
The General
Statistics Office (GSO) reported that the disbursed capital sourced from
the State budget was estimated at 38.3 trillion VND (nearly 1.7
billion USD) in July, down 1.7 percent month on month and 12.4 percent year
on year.
The figure
between January and July reached 210.8 trillion VND, equivalent to 44.3
percent of this year’s target and up 5.6 percent from the same period last
year.
The sum
comprises 35.2 trillion VND managed by central agencies and another 175.6
trillion VND by localities, respectively rising 12.7 percent and 4.3 percent
year on year, statistics show.
The COVID-19
resurgence has affected the implementation of public investment projects in
19 southern provinces and cities which are applying social distancing
measures under the Prime Minister’s Directive 16/CT-TTg, as well as some
others imposing anti-pandemic measures under Directive 15/CT-TTg, the GSO said.
It cited
localities as reporting that many projects have been halted or lagged behind
schedule, but investors, management boards, and contractors are making
efforts and pledge to accelerate project implementation after the social
distancing period is over.
Vietnam exports 22 tonnes of frozen Indochina Dragonplum fruit
to Australia
It is the
first time a large batch of 22 tonnes of frozen fruits of Indochina
Dragonplum (scientific name Dracontomelon duperreanum) trees from Vietnam has
been shipped to Australia, the Vietnam Trade Office in Australia has said.
With the
lowest selling price of 18 AUD per kg in the Australian market, the shipment
would fetch more than 390,000 AUD.
As such,
with its harvest season lasting from June to September, the potential of the
export of the fruit is not inferior to that of other fruits being exported to
Australia.
The fruit,
called Sau in Vietnamese, is used in Vietnamese cooking for its sour taste.
It is also often preserved in sugar to make a cooling drink in summer.
The trade
office has worked closely with the Uu Dam company in promoting the fruit in
Australia via advertisement on social networks targeting key consumption
areas, sales promotion with prizes, and step-by-step introduction to large
distribution systems. The office will soon launch an English-language cooking
book featuring recipes using the fruit.
According to
the agency, although many cities in Australian are under social distancing
measures and the transport of goods for export faces many difficulties, in the
first half, Vietnam’s export of fruits and vegetables to Australia posted a
record growth of more than 52 percent compared to the same period in 2019,
reaching more than 40 million USD. If other key agricultural products like
cashew nut, peppercorn, coffee and rice are included are taken into account,
the total export value amounted to 110 million USD./.
Newly established enterprises decreases 22.8 percent in July
As many as
8,740 enterprises with total registered capital of 122.8 trillion VND (5.34
billion USD) were established in July, according to the General Statistics
Office (GSO).
These
figures were sharply down by 22.8 percent and 25.3 percent in the number of
newly registered enterprises and the registered capital respectively from the
previous month.
This was
considered a significant decrease since the outbreak of the COVID-19 pandemic
with complicated changes due to the rapid spread of the Delta variant.
Despite a
sharp decrease in July, the number of newly established enterprises in the
first seven months of the year still increased by 0.8 percent over the same
period last year with 75,800 enterprises. As a result, more than 1
quadrillion VND would be added to the economy in the near future.
The country
also had nearly 26,600 firms registering to increase their capital by a total
of 1.36 quadrillion VND.
In addition,
29,600 enterprises returned to operation, up 3.6 percent over the same period
last year, bringing the total number of newly established enterprises and
those returning to operation in the seven month period to 105,400. On
average, nearly 15,100 businesses were newly established and returned to
operation every month.
However, the
number of enterprises halting their business or waiting for dissolution also
increased significantly by 25.5 percent compared to the same period last year
with 79,700 enterprises. Of which, nearly 40,300 firms halted business,
representing a 23 percent year-on-year increase; 28,000 enterprises stopped
operating and were waiting for dissolution procedures, up 28.6 percent.
Another 11,400 companies completed dissolution procedures, up 27.4 percent.
Thus, on average, nearly 11,400 businesses withdrew from the market a month.
According to
GSO, the complicated situation of the COVID-19 pandemic and implementation of
social distancing in 20 localities have affected the business registration in
the first seven months of the year.
The number
of newly established enterprises in the period decreased in some sectors such
as electricity, gas, water production and distribution by 63.7 percent;
accommodation and food services down 10.7 percent; employment services,
tourism, rental of machinery and equipment, furniture and other support services
decreased by 10.5 percent; and construction 3.7 percent.
Phan Duc
Hieu, Deputy Director of the Central Institute for Economic Management
(CIEM), said that the pandemic has had a strong impact on the goods supply
and demand chains, impacting business opportunities, causing the number of
enterprises entering the market to decrease sharply.
In the
context of many difficulties and challenges due to COVID-19, the Government
has issued policies to support businesses as well as directed ministries and
localities to provide them with favourable conditions.
Hieu
expected that with the Government's strong solutions in fighting COVID-19,
the disease would be controlled and repelled as quickly as possible.
Production and business activities would be vibrant and newly established
enterprises would increase again./.
Vietjet's profit reaches over 5.53 million USD in first half
The Vietjet
Aviation Joint Stock Company (HOSE: VJC) announced consolidated revenue and
pre-tax profit of over 8.38 trillion VND (365 million USD) and 127 billion
(5.53 million USD), respectively, in the first half of this year.
Revenue in
passenger transport in the period surpassed 5.81 trillion VND (253 million
USD), generating a pre-tax profit of 13.7 billion VND (nearly 600,000 USD),
according to its financial results for H1 released on August 2.
In the
second quarter, Vietjet’s air transport revenue hit over 2.97 trillion VND,
up 51 percent year-on-year thanks to high travel demand in April. The airline
had also sought ways to lift the cargo sector despite the impact of the
fourth wave of COVID-19 in Vietnam this quarter.
Its
consolidated revenue totalled above 4.33 trillion VND in the second quarter.
Vietjet said
it has ventured into financial and project investments aiming to expand its
business portfolio in support of the air transport sector while optimising
equity capital during the temporary aviation slowdown.
By the end
of June, the airline's total assets reached 44 trillion VND. Its
debt-to-equity ratio stayed at as low as 0.73 while the liquidity ratio
remained at 1.5, which were considered in the safe zone and a good
performance in the aviation industry.
From January
to June, Vietjet had transported more than 4.8 million passengers on 34,000
flights. The airline had also focused on refining operation protocols and
boosting its cargo operations, resulting in a 40-45 per cent year-on-year
growth with a total of more than 37,000 tonnes of cargo delivered.
Together
with strategic partners in the Sovico Group, Vietjet had played a very active
role in the national fight against the COVID-19 pandemic by operating
repatriation flights, donating to the National Vaccine Fund, granting
ambulance vans to local health departments and sponsoring medical equipment
for intensive care units (ICUs).
It had also
airlifted healthcare workers and medical equipment free of charge while
organising charity kitchens to provide meals for pandemic-affected citizens.
Still
pursuing the customer-centric strategy, Vietjet is striving to be innovative
and creative to digitalise all of its services and operation protocols, to
optimise costs per flying hour and to expand its business in order to
increase productivity and service quality./.
EVFTA - A catalyst for Vietnamese businesses: diplomat
The European
Union-Viet Nam Free Trade Agreement (EVFTA) has created a favourable corridor
for trade between the two sides and brought new impetus to economic
cooperation between Viet Nam and the EU, Nguyen Van Thao, head of the Mission
of Viet Nam to the EU, has said.
Thao, who is
also Vietnamese Ambassador to Beligum and Luxembourg, told Vietnam New Agency
in an interview on prospects for further promoting the EVFTA in the future.
He said the
agreement took effect on August 1 last year at a hard time when EU countries
were very heavily affected by the COVID-19 pandemic. This year, the pandemic
has continued to break out in Southeast Asian countries. Viet Nam is not an
exception. The country has also suffered big impacted by the pandemic.
However,
trade turnover between Viet Nam and the EU still reached US$50 billion last
year, and grew by 4.5 per cent in the last five months of 2020.
This was an
encouraging result given the context of 2020 when the EU’s Gross Domestic
Product (GDP) declined by 6.2 per cent, he said.
In addition,
the EU's economy shrank 0.4 per cent in the first quarter of this year, but
two-way trade turnover still increased by 15 per cent. Thus, Thao said, it
affirmed the strong effect of the EVFTA.
According to
the Ambassador, this positive outcome has shown that Vietnamese products have
met the high standards of the EU market. At a time when the EU is facing many
difficulties, Vietnamese goods can still enter this market, contributing to
maintaining and diversifying supply chains in the context of global supply
chain disruptions.
Thao
emphasised that there’s huge potential between Viet Nam and the EU to tap.
EU countries
want to import agro- forestry- fishery products outside the bloc at a value
of more than $150 billion per year, while Viet Nam's export turnover of these
items to the EU is about $5 billion, he said, adding that the incentives from
the EVFTA with a tariff rate of 0 per cent, and harmonious trade conditions
will help increase the country’s export turnover to the EU.
However, the
ambassador said there is still much work to be done in the coming time.
It is
necessary for the Vietnamese government to continue to exchange and negotiate
with the EU to perfect standards, regulations and mutual recognition to help
the two sides' goods penetrate more deeply into each other's markets, he
said.
Thao said
that trade and technical barriers need to be removed. It is essential for the
Vietnamese side to push for early ratification of the EU-Viet Nam Investment
Protection Agreement (EVIPA) because trade and investment have a very close
relationship. The agreement has now been signed and is awaiting ratification
by the parliaments of EU member states.
EVIPA will
promote two-way investment with high-tech and innovative services, the
ambassador said, adding that applying new European technologies will help
increase the competitiveness for Vietnamese products and enhance trade
growth.
Referring to
the skills that Vietnamese businesses need to supplement to stay firmly in
the EU "playground" in the near future, Thao stressed that more
capital should be poured in to improve the competitiveness for their products
in terms of quality and scale to meet the high standards of the European
market, while ensuring a sustainable supply for European customers.
In addition,
it is a must for Vietnamese enterprises to learn about business opportunities
as well as the legal system of the EU, the customs, and consumption habits of
European people, the Ambassador said.
He also
underscored the importance of coordination among Vietnamese businesses,
saying if they work together, it will create a higher competitiveness in
terms of quantity, negotiation, and building a network of relationships in
Europe.
Only by
doing so, can Vietnamese businesses succeed in the coming time and take full
advantages of what the EVFTA brings about, the ambassador said.
Agricultural production and circulation must be maintained
during social distancing
Amid strict social distancing across the country, leaders of the agriculture
industry told all localities to help facilitate both agricultural production
and the trading and circulation of products and not to disrupt the supply in
the near future.
At the
online meeting, set up by the Ministry of Agriculture and Rural Development
(MARD) to connect suppliers and buyers of agro products, Le Thanh Tung,
deputy director of the Department of Crop Production, said: “700,000 hectares
of summer-autumn rice or 3.8 million tonnes of rice will be harvested in the
southern provinces in August when about 1.1 million tonnes of vegetables and
fruits from both the Mekong Delta and Lam Dong will also be harvested.
However, the regional consumption demand is only about 500,000 tonnes.”
Tung told
the meeting they should make plans to sell the rest in other regions as well
as consider exporting. There were about 640,000 tonnes of mango, banana,
dragon fruit, durian, grapefruit, orange, longan, pineapple and jackfruit due
to be harvested this month, so markets needed to be found.
According to
Tung, the period from May to August is not the busiest time for harvesting
for most fruit trees in the southern provinces and the output is low.
However, as consumption was slowing down in some places due to congestion in
the transportation stage, there may be problems moving forward.
Nguyen Chi
Thien deputy director of southern Long An Province’s Department of
Agriculture and Rural Development said that because of social distancing
travel restrictions the province is running out of labourers to harvest rice
as well as rice traders. The freight force of local cooperatives still faced
difficulties in testing for COVID-19 too.
Thien said
even for people who have COVID-19 test certificates they are only valid for
72 hours, it is difficult for them to transport dragon fruit to the north as
their certificates will expire in the middle of the journey.
Long An has
proposed the Ministry of Transport implement quick test points along the way
to mitigate this problem.
Truong Kien
Tho, deputy director of An Giang’s Department of Agriculture and Rural
Development, said that there were thousands of hectares of rice to be
harvested but there were less and less traders and farmers had no warehouses
to store their rice.
Tho said:
"Agricultural production activities should be considered essential and
should be prioritised. If farmers stop production, it will delay the crop,
affecting both the quality and output in the future so relevant groups should
consider solutions for farmers to work and traders to trade under the social
distancing directive.”
Vo Quan Huy,
director of Huy Long An Co., Ltd said that if Viet Nam does not focus on
maintaining production, the supply chain will be interrupted within the next
two months. In addition, the circulation of agricultural production materials
must be more open so as not to interrupt production activities.
Nguyen Dinh
Tung, general director of Vina T&T Import-Export Company said the fixed
time from 6 am to 6 pm to work outdoors was a problem, adding that farmers
harvest from 4 am until 6.30 am to fit in with the nature of the work.
Currently, his productivity is only about 20 to 30 per cent of what it was
before.
Tung whose
company specialises in exporting fresh fruits to the US, Australia and Canada
added: “If the fresh fruit can not be picked up on schedule, it will affect
the whole export shipment and the fruit quality. Previously, businesses could
process and export a few containers of fruit every day, but now it takes many
days to complete a container, incurring a lot of extra costs."
MARD Deputy
Minister Tran Thanh Nam said as agricultural products are now abundant and
there is an oversupply of some products, “it is important to focus on
smoother transportation,” adding it was not only to meet the needs of
consumption in each region, but also to connect with other regional supply
chains to export.
Nam said in
some localities with complicated COVID-19 developments, epidemic control had
to be prioritised, leading to bottlenecks in the supply, circulation and
distribution of agricultural products.
At the
meeting, MARD suggested leaders of all cities and provinces do their best to
facilitate the stable production and speedy circulation of agricultural
commodities.
In the first
half of 2021, Viet Nam’s agricultural sector earned US$24.23 billion from
exports, an increase of 28.2 per cent compared to that of the same period
last year.
HCM City focuses on helping locals buy produce
HCM City has
been working on a number of solutions to ensure its populace can access the
abundance of essential goods available in other provinces amid the strict
social distancing in place.
Nguyen
Nguyen Phuong, deputy director of its Department of Industry and Trade, said
other provinces produce large volumes of foodstuffs and other essential
goods, even to excess in certain cases.
Transportation
of such goods to the city might still face problem sand smooth distribution
within the city remains harder to achieve but solutions are being found
expeditiously, he said.
As of July
30 only 27 out of 237 traditional markets remained open, none in the inner
city, he said.
So people
have to depend on supermarkets and other modern retailers, but some of them
have also closed down and the rest could only remain open until 5pm due to
the city’s new curfew, and this is making it harder to supply goods, he said.
Some places
have few or no large supermarkets, and the small stores there could easily
run out of stocks, he admitted.
His
department is working on partially reopening traditional markets to increase
the supply of fresh farm produce, and they could be even safer than
supermarkets in terms of preventing virus infections, he said.
New sites
for selling agricultural produce would be set up near markets that could not
be reopened, with traders from such markets selling there, he said.
District
authorities should assist distributors by providing vehicles to transport
goods from suppliers so that more goods could be sold, he said.
More and
more mobile sales trips are also being organised around the city, with
schedules being uploaded on the department’s Communist Youth Union Facebook
page.
Checks on
transport of essential goods around the city have been made less stringent.
Delivery
workers transporting such goods are now allowed to travel across the city
instead of being confined to one assigned district as was the case for the
last few days.
HCM City is
the COVID-19 epicentre of the country with more than 90,000 cases since the
fourth outbreak began in late April. Social distancing began on May 31, and
more and more stringent preventive measures have been put in place as the
number of cases keeps rising.
Newly established firms decreases in July
Viet Nam had 8,740 newly-established enterprises with total registered
capital of VND122.8 trillion (US$5.34 billion) in July, according to the General
Statistics Office (GSO).
These
figures were sharply down by 22.8 per cent and 25.3 per cent in the number of
newly registered enterprises and the registered capital respectively from the
previous month.
This was
considered a significant decrease since the outbreak of the COVID-19 pandemic
with complicated changes due to the rapid spread of the Delta mutation.
Despite a
sharp decrease in July, the number of newly established enterprises in the
first seven months of the year still increased by 0.8 per cent over the same
period last year with 75,800 enterprises. As a result, more than VND1
quadrillion would be added to the economy in the near future.
The country
also had nearly 26,600 firms registering to increase their capital by a total
of VND1.36 quadrillion.
In addition,
29,600 enterprises returned to operation, up 3.6 per cent over the same
period last year, bringing the total number of newly established enterprises
and those returning to operation in the seven month period to 105,400. On
average, nearly 15,100 businesses were newly established and returned to
operation every month.
However, the
number of enterprises halting their business or waiting for dissolution also
increased significantly by 25.5 per cent compared to the same period last
year with 79,700 enterprises. Of which, nearly 40,300 firms halted business,
representing a 23 per cent year-on-year increase; 28,000 enterprises stopped
operating and were waiting for dissolution procedures, up 28.6 per cent.
Another 11,400 companies completed dissolution procedures, up 27.4 per cent.
Thus, on average, nearly 11,400 businesses withdrew from the market a month.
According to
GSO, the complicated situation of the COVID-19 pandemic and implementation of
social distancing in 20 localities have affected the business registration in
the first seven months of the year.
The number
of newly established enterprises in the period decreased in some sectors such
as electricity, gas, water production and distribution by 63.7 per cent;
accommodation and food services down 10.7 per cent; employment services,
tourism, rental of machinery and equipment, furniture and other support
services decreased by 10.5 per cent; and construction 3.7 per cent.
Phan Duc
Hieu, Deputy Director of the Central Institute for Economic Management
(CIEM), said that the pandemic has had a strong impact on the goods supply
and demand chain, impacting business opportunities, causing the number of
enterprises entering the market to decrease sharply.
In the
context of many difficulties and challenges due to COVID-19, the Government
has issued policies to support businesses as well as directed ministries and
localities to provide them with favourable conditions.
Hieu
expected that with the Government's strong solutions in fighting COVID-19,
the disease would be controlled and repelled as quickly as possible.
Production and business activities would be vibrant and newly established
enterprises would increase again.
Sacombank makes $73.4m profits from selling treasury stocks
Sacombank sold out all 81.56 million treasury shares (equivalent to 4.33 per
cent of its charter capital) on the stock market on July 27 for more than
VND2.438 trillion (US$106.2 million), earning a profit of VND1.684 trillion
($73.4 million).
It was one
more important mandatory task in its restructuring approved by the State Bank
of Vietnam after the merger.
Nguyen Duc
Thach Diem, a member of the board of directors and CEO of the bank, said,
“After handling Sacombank's treasury shares, we have completed one of the
objectives of the restructuring project, contributing to increasing
liquidity, increasing the efficiency of capital use as well as improving the
capital adequacy ratio for the bank.”
Sacombank is
making unrelenting efforts to soon accomplish the restructing project’s
objectives to regain its position in the market and get approval to pay
dividends to shareholders despite facing many new challenges, she added.
It also
plans to sell all 13.87 million shares it owns in the Sacombank Securities
Joint Stock Company, equivalent to a 10.21 per cent stake, in August as part
of its strategy to restructure investments and increase revenues to
supplement capital for its businesses.
At the end
of the first half of the year the bank had total assets of VND504.5 trillion
($21.97 billion), deposits of VND 447.6 trillion ($19.5 billion) and loans
outstanding of VND 361.1 trillion ($15.7 billion), up 6.1 per cent since the
beginning of the year.
Its profit
before tax was VND2.424 trillion ($105.58 million), or 60.6 per cent of its
full-year target.
It recovered
VND 6.61 trillion ($288 million) worth of bad debts and outstanding assets in
the first half to reduce its non-performing loans ratio by 0.1 percentage
point for the year to 1.54 per cent.
Its capital
adequacy ratio (CAR) is 9.75 per cent, up 0.22 percentage points from the
beginning of the year.
Share to keep positive trend on rising liquidity
Shares are expected to move positively this week on significant growth of
both scores and liquidity, brokerages said.
On the Ho
Chi Minh Stock Exchange, the VN-Index increased 1.27 per cent to close Friday
at 1,310.05 points, expanding the weekly gain to 3.3 per cent.
An average
of 523 million shares were traded on the southern exchange during each session
last week, worth VND17 trillion (US$738.6 million).
“The
VN-Index exceeded the 1,300-point mark last Friday with an increase in
liquidity,” said experts from BOS Securities Joint Stock Company (BOS).
“Technical
indicators all show the possibility that the market will continue to gain in
the coming sessions. Most likely, VN-Index will maintain its uptrend and head
to the area of 1,330 points
next week," they said.
Sharing the
same view, MB Securities Joint Stock Company (MBS) said the stock market had
gained significantly in both scores and liquidity, along with strong net
buying of foreign investors.
“Cash inflow
was strong and market breadth was also positive. Liquidity reached the
highest level in the past three weeks. Foreign investors had returned to be
net buyers with a total value of nearly VND500 billion in the week,” MBS
said.
“The market
has entered a new uptrend thanks to the support of liquidity and the boost
from the group of large-cap stocks,” MBS said.
An expert
from Saigon-Hanoi Securities Joint Stock Company (SHS) said this week, the
market would likely enter a struggling phase when the profit-taking pressure
increases in the resistance area of 1,300-1,350 points.
Construction
materials stocks gained the most last week. Pillar stocks in this group
increased strongly such as Hoa Phat Group (HPG), up 3.3 per cent, Hoa Sen
Group (HSG), up 6.7 per cent, and Nam Kim Group (NKG), up 7 per cent.
They were
followed by information technology stocks, with gainers such as FPT
Corporation (FPT), up 3.9 per cent, and CMC Telecom (CMG) up 18.2 per cent.
Bank stocks
also performed well with notable gainers of Vietcombank (VCB), rising 1 per
cent, Bank for Investment and Development of Vietnam (BID) gaining 2.2 per
cent, Techcombank (TCB) rising 3.2 per cent, Military Bank (MBB) gaining 4.1
per cent, VPBank (VPB) climbing 4.3 per cent, Saigon-Hanoi bank (SHB) up 5.3
per cent, Vietinbank (CTG) up 5.8 per cent and Asia Commercial Bank (ACB)
increasing by 9.5 per cent.
The consumer
goods sector rose thanks to a 5-per cent increase in Ha Noi Beer Alcohol and
Beverage Joint Stock Corporation (BHN), a 3.5-per cent increase in Saigon
Beer Alcohol and Beverage Company (SAB), and a 12.6-per cent increase in
Masan Group (MSN).
The
remaining groups all had positive growth such as industrial, oil and gas,
consumer services, finance, community utilities, pharmaceutical and medical
services.
In the first
six months of 2021, the stock market made impressive growth with the VN-Index
being the world's strongest rising index with 15.8 per cent, said financial
news site tinnhanhchungkhoan.vn.
The steep
decline of the local stock market as the coronavirus ravaged economies lured
many new punters to the market.
The number
of newly opened trading accounts in six months reached 619,911 accounts, an
increase of 58 per cent compared to the number of 2020. According to the
Vietnam Securities Depository Center, June witnessed an unprecedented large
number of 140,054 new personal accounts.
According to
VSD, by the end of June, there were 3.4 million securities accounts of
individual investors opened.
“The index
is expected to gain but there will still be a strong divergence among stocks.
The index needs to break through the 1,296-1,305 resistance zone to challenge
the 1,350-1,380 resistance zone in the short term,” said Bao Viet Securities
Co.
“Banking,
securities and steel stocks may slowly recover and accumulate to create a new
short-term base. Capital flow will focus more on mid-cap and small-cap stocks
in industries such as real estate, seaports and exports,” it said.
“Investors
should increase the proportion of stocks in the portfolio to 40-50 per cent.
They may consider increasing short-term positions during fluctuations and
corrections in the coming sessions,” it said.
Banking and finance sector prioritises cyber security
Digital
transformation of the banking and finance sector has made cyber security and
information safety a major concern.
The COVID-19
pandemic has increased e-commerce, bringing new risks along with the new
convenience.
Digitalization
and the coronavirus pandemic have caused Vietnamese consumers to dramatically
change their shopping behavior. Increasingly, they are purchasing products
and services online and making payments electronically.
But Duong
Manh Hung, CEO of the Vietnamese Network Security Company (Vsec), says new
technologies in the banking and finance sector has led to increased bank
fraud and other criminal behavior.
He added,
“As the pandemic has gotten worse, e-payment has been used more widely, but
it has brought risks in the form of bugs or security loopholes in the
e-payment systems. Hackers take advantage of these loopholes to steal
customers’ personal information or gain administrator access to sensitive
data and functions.”
According to
experts in financial security, customers’ personal information, passwords,
and financial information are often vulnerable to cybercriminals. There are
many opportunities to commit fraud, steal data, or install viruses and
malware.
The
situation is becoming more alarming as Vietnam's banking industry begins its
digital transformation for the retail market, says IT expert Pham Minh Thanh.
“Hackers can
directly attack the applications of banks and other businesses, websites, or
online applications. They can also send fake emails to trick users or
administrators into revealing sensitive information. Hackers can attack the
infrastructure of a business and steal or corrupt its customer
information," said Thanh.
The data
networks of the government, banking and finance, and healthcare sector store
valuable personal information, financial transactions, and critical
infrastructure data, making them a tempting target for cybercriminals
Vsec’s
Deputy Director Le Thanh Tung underlined the complexity and difficulty of
information security and safety in the financial and banking sector by
listing a number of recent cyberattacks.
“First, the
customers who are using the bank’s services can be attacked directly. One
popular fraud is making customers believe that a provided link is reliable.
Thinking the fake link is a real link, customers “log in” only to have their
username and password stolen. Customers may also be asked to provide an OTP
code to make a money transfer. Many customers will do as they are instructed.
This fraud takes place quite often. What we tell people is that no bank will
ask their customers to provide passwords or OTP codes via phone or message or
chat,” said Tung.
He touched
upon the second fraud that involves collecting customer data entered at an
ATM by installing a data reader device. Criminals can get passwords this way
and create fake ATM cards. Banks are aware of and paying greater attention to
this form of fraud, but it is still happening in some places.
Complete
digital transformation is not yet compulsory for ordinary banks, but it is
extremely important for fintech businesses, which have grown strongly in
Vietnam in recent years.
For these
businesses, securing users’ information is vital because all their
transactions are online, said Nguyen Huy Du, CEO of DuCapital Holding, which
specializes in developing new technology.
Du added,
“Fintech companies are careful to select customers who have their own
information security systems to protect themselves on top of the services
offered by the fintech companies. Generally speaking, fintech companies have
what I call a concept or an intention right from the very beginning when they
organize money-related business activities in the digital environment.”
Vietnam is
facing lots of challenges to its digital transformation – resources, user
skills, culture, and awareness.
Here is
Tung’s advice for businesses and individuals to ensure information security
during this period of digital transformation: “Individuals and organizations
should pay attention to the following factors: First, the human factor;
second, creating regulations and processes to ensure information security;
third, equipment infrastructure; and finally, solutions.”
Tung
commented, “All of these factors are closely linked to information security,
which we need to become knowledgeable about and take steps to reduce risks
and be prepared for a timely response to any threat.”
Durian prices fall as Covid-19 restrictions keep produce on
farms
Durian prices
have sharply fallen in Dak Lak Province as farmers are unable to sell their
produce due to the lockdown in various provinces and cities.
Durian
harvest season arrived when Cu Kuin District applied social distancing rules
to curb Covid-19. H'Li Ka from Ea Mta Village said the local people couldn't
go out so they weren’t able to sell anything. She had to freeze some of the
durian and many other households had to throw away the fruit.
Farmer
Nguyen Van Nam in Village 8 said, "This time last year, traders would go
directly to my garden and durian prices were from VND40,000 (USD1.70) to
VND50,000 per kilo. Now no one comes, saying that they didn't know how to
sell their durian. The prices dropped to only VND15,000 per kilo. I’ve worked
here for 10 years and this is the first time the prices have dropped so
low."
Dang Huy, a
farmer in Cu M'gar, said he estimated to harvest 30 tonnes of durian but
could only sell several kilograms at a time.
"I
tried to sell to traders in other provinces but not many freight trucks
operate now. Buon Ma Thuot City is also applying social distancing. I have
suffered VND1bn (USD43,300) in losses and may fail to repay my bank
debts," he said.
Nguyen Van
Dung, chairman of Ea Tieu Commune, said the durian prices were only VND7,000
(3 US cents) to VND18,000 per kilo. He has asked the farmers to gather their
durian in one place and he would help bring them to the checkpoints to sell
to traders.
Pham Van
Khoa, chairman of Ea Ktur Commune said they would review the losses of the
farmers for compensation.
Farmers in
Gia Lai Province are also facing difficulties. Farmer Le Cong Hung said he
had 30 avocado, 20 jackfruit and 200 papaya trees but couldn't find any
outlets even when the avocado price dropped to VND4,000 per kilo.
Nguyen Van
Hop, head of Chu Se District Department of Agriculture and Rural Development
said they would guide the farmers to advertise their products online. Doan
Ngoc Co, deputy director of Gia Lai Department of Agriculture and Rural
Development said they would work with the Department of Industry and Trade
and local businesses associations to find the best solutions to help farmers.
Indian newspaper: VN emerging as post-pandemic economic power in
region
Vietnam and
India are emerging as economic powers in the region that will make a
difference in the post-pandemic times, The Economic Times cited Indian
Ambassador to Vietnam Pranay Verma as saying.
New Delhi –
Vietnam and India are emerging as economic powers in the region that will
make a difference in the post-pandemic times, The Economic Times cited Indian
Ambassador to Vietnam Pranay Verma as saying.
The
ambassador was speaking at a recent webminar on global trade and investment
opportunities for Indian industry in Vietnam organised by India’s PHD Chamber
of Commerce and Industry (PHDCCI).
Vietnam and
India have emerged as global trade partners due to their policy initiatives
and increase in their trade and investments, he said.
While
applauding PHDCCI’s diligent efforts in fostering business and trade
relations of India with other countries of the world, Verma discussed
challenges faced in Vietnam related to disruption in production, supply
chain, logistics, and many more yet at the same time arising of new
opportunities in areas of technology, business practices, trade relations,
diversifying partners and trade baskets.
Verma
emphasised that there is a need for Vietnam and India to take advantage of
each other’s economic strength for increasing business relations between the
two nations, at the same time leverage each other’s global value chains to
utilise each other’s trade network.
There is
also a need to look at the domestic market, especially in India that can
offer growth opportunities to Vietnam with focus on e-documentation and
e-payments which help to increase business growth and foster B2B engagement,
connecting MSMEs.
There is a
need for structural improvement where the government and business partners
need to work in sync and also improve shipping connectivity between the two
nations.
He further
added that mutual recognition of standards and certifications will have a
positive impact on the trade and electrical machinery vertical.
Counselor Do
Thanh Hai spoke about the flow of economic and trade opportunities between
Vietnam and India despite the pandemic, saying the economic and trade
exchange will pick up in the time to come.
There is a
restructuring of the global supply chain and both nations have the
capabilities to take advantage of the opportunity. With the strategic
location of both nations and change in reforms, there will be an increase in
trade exchange and will be a driving engine for the global economy in near
future, he said.
Manufacturing enterprises worry about production disruptions
Manufacturing
enterprises have expressed concern over disruptions in the supply chain after
many businesses, especially in southern cities and provinces, were forced to
shut down during the fourth Covid-19 wave, which began in late April.
According to
stricter anti-pandemic measures that have been imposed recently, to maintain
operation, manufacturing enterprises have to provide meals and accommodation
at the factories, dormitories or hotels for their workers.
Besides, the
workers are not allowed to travel to work by private vehicles. Therefore, the
companies must have coaches or buses to transport the employees.
There are
currently only more than 500 businesses in HCMC that can meet these
requirements on Covid-19 infection prevention and control.
According to
representatives of four industry associations including the Vietnam Textile
and Apparel Association, the Vietnam Leather, Footwear and Handbag
Association, the Vietnam Electronic Industries Association, and the
Handicraft and Wood Industry Association, up to 90% businesses active in
these industries have closed down, causing disruptions in the supply chain.
In the
textile and apparel industry alone, 97% of businesses have suspended their
operations.
According to
Pham Van Viet, chairman of the board of directors of Viet Thang Jean Company
Limited, the company is able to provide accommodation at the factory for only
35% of its 3,500 workers, making it hard for the company to fulfill orders.
Truong Thi
Chi Minh, vice chairwoman of the Vietnam Association of Supporting
Industries, said up to 50% of the association’s member enterprises have seen
their revenues decline sharply. During the fourth wave of Covid-19, many
enterprises in the South have been temporarily closed down and even those
that remain operational are unable to fulfill their orders.
“Many of
them are small and medium enterprises, which are the most vulnerable to the
pandemic,” she added.
Moreover,
some manufacturers are concerned that delays in production, shipment and
delivery as well as the inability to fulfill orders will prompt their
customers to switch suppliers.
Some
businesses said that if the pandemic prolongs and they are not able to resume
operations soon, they will go bankrupt.
According to
the industry associations, Covid-19 vaccination is the only solution for
manufacturing firms to maintain production and hope for recoveries.
The four
industry associations have recently written to the Government asking for help
to import the Covid-19 vaccines after they have found a vaccine supply source
in the United Arab Emirates (UAE).
The
associations said they need support from the Government to negotiate with the
Royal Strategic Partner in the UAE to facilitate import procedures.
The four
suggested that the Government and the Ministry of Health either help them
negotiate with the UAE firm for the purchase or appoint an eligible
Vietnamese importer to do vaccine import procedures.
They expect
the Government and the relevant agencies to create the most favorable
conditions for them to access the vaccines soon so that workers of their
member businesses can get vaccinated, helping maintain production amid the
fast spread of the Covid-19 pandemic.
Kien Giang promotes tourism in difficult situation
Over the
past two years, especially since the beginning of the year, the country’s
tourism sector, including that of Kien Giang Province, has been severely
affected by the COVID-19 epidemic.
However,
amidst difficult situation, Kien Giang has still managed to maintain tourism
stimulation and tried to fulfil the “dual goal” of preventing and controlling
the epidemic while developing tourism
Two options for tourism development
In the first
six months of 2021, Kien Giang’s tourism sector effectively implemented the
“dual goal” by welcoming over 2.3 million tourists (reaching over 33% of the
all-year plan) and earning over VND2.680 trillion (over US$11.6 million).
Regarding
the field of investment, the province attracted two projects worth total over
VND1 trillion (US$43.4 million)So far, Kien Giang Province has attracted 327
investment projects into tourism worth total nearly VND359.5 trillion (over
US$1.56 billion), with a total area of 10.162 hectares. Specifically, 70
projects have been put into operation, 82 others are under construction and
the remainder are in the process of preparing procedures. into tourism
industry in Phu Quoc City, with a total area of 21.7 hectares.
According to
Director of Kien Giang Provincial Department of Tourism Bui Quoc Thai, the
province will implement a tourism growth scenario in line with the situation
of COVID-19 epidemic and the locality’s reality under two options in the last
six months of this year.
Source:
VNA/VNS/VOV/VIR/SGT/SGGP/Nhan Dan/Hanoitimes
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