VIETNAM BUSINESS NEWS FEBRUARY 10

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HOSE to put KRX trading system into operation this year

HOSE to put KRX trading system into operation this year hinh anh 1

The Ho Chi Minh Stock Exchange (HOSE) will mobilise all resources to implement important tasks this year, focussing on putting the trading system provided by the Korean Exchange (KRX) into operation.

Phan Van Mai, Chairman of the HCM City People’s Committee said, as the nucleus of the Vietnamese stock market, HOSE should strive to meet international standards, contributing more to the city’s economic recovery.

The city will focus on completing a project turning itself into a regional and international financial hub to promote the development of the stock market, he said.

Deputy Minister of Finance Nguyen Duc Chi said one of the important tasks of the securities industry in 2022 is putting the KRX trading system into operation on schedule, ensuring it operates efficiently and securely.

Vietnam welcomes nearly 9,000 international tourists under pilot programme

As of February 7, Vietnam welcomed 8,967 international tourists since a pilot programme was launched last November, according to the Ministry of Culture, Sports and Tourism.

The ministry said on February 9 that foreign arrivals visited the Mekong Delta province of Kien Giang, and the central provinces of Khanh Hoa and Quang Nam, which have been selected for the programme together with central Da Nang city and northern Quang Ninh province.

Most of them came from Russia, Uzbekistan, Kazakhstan, the Republic of Korea, Singapore, the UK, the US and Canada.

As many as 16 travel firms, 82 lodging facilities, 28 tourist sites, eight shopping centres and 48 transportation companies in the five targeted localities have registered and been eligible to join the first phase of the programme.

The first phase has been rolled out in line with COVID-19 prevention and control regulations, and received the warm response from holiday-makers, the ministry said.

The ministry, therefore, has proposed implementing the second phase of the programme from now to March 30, conducting COVID-19 tests for tourists at their accommodations, and expanding tourist destinations.

International tourism activities, including both inbound and outbound tours, should be fully resumed from March 31, the ministry said.

Price management authority proposes solutions to curb inflation after Tet

The Ministry of Finance’s Department of Price Management (DPM) has proposed several solutions to curb the rising tendency of inflation after Tet.

According to the price management authority, domestic gas and petrol prices are facing upward pressures due to impacts from the world market. In the next fuel price adjustment, which will begin on February 11, gas and petrol prices are expected to be adjusted up, creating inflationary pressure on overall prices.

The Government’s stimulus packages and the postponement of the roadmap to market price for State-managed goods have also come into play, the department added.

To keep CPI growth rate at 4 per cent set by National Assembly, the authority suggested effective coordination between proactive fiscal policies and flexible monetary policies to rein in core inflation and boost economic recovery.

Vietnam’s aviation expected to strongly rebound this year

The recent resumption of domestic and international air routes are building hope that the sector will strongly rebound this year, following a tough year for business in 2020 and 2021.

According to the Civil Aviation Authority of Vietnam (CAAV), domestic airlines operated 126,280 flights in 2021, down 41.7 per cent year-on-year, and nearly 60 per cent from pre-pandemic levels. Regular international flights had been completely frozen since the first wave of the pandemic, except for those bringing home overseas Vietnamese, or carrying foreign experts.

The General Statistics Office (GSO), under the Ministry of Planning and Investment, said Viet Nam welcomed only 111,100 international arrivals by air last year, a drop of 96.4 per cent from the previous year.

In December 2021, when international flights resumed, the number of international visitors to Viet Nam expanded by 14.2 per cent from the previous month.

Experts said the Vietnamese aviation sector has surmounted the deepest point of the crisis. Domestic transport will recover to some 70-75 per cent of pre-pandemic levels, while international transport will reach 25 per cent. The figures are expected to rise higher in the last quarter of this year.

Vietnam Airlines General Director Le Hong Ha suggested further upgrading infrastructure and speeding up the implementation of major projects like Long Thanh Airport will ensure sustainable recovery and development of the sector.

The CAAV has requested carriers to mobilise all resources to increase flights from northern and central localities to HCM City, it said.

PM underlines banking sector’s role in maintaining macro-economic stability

The banking sector plays the key role in maintaining the macro-economic stability and other major balances of the economy, stated Prime Minister Pham Minh Chinh at a New Year meeting with leaders and staff of the State Bank of Vietnam (SBV) on February 8.

Leaders of the SBV reported to the PM that last year, despite COVID-19 impacts, thanks to flexible management of credit growth, credit balance of the whole system rose compared to that in 2020, while the exchange rate was kept stable and interest rate was on a downward trend.

This year, the SBV will focus on removing difficulties for business and production activities, supporting pandemic-hit businesses and people, and restructuring credit institutions in association with settling bad debts, they said.

The Government leader stressed that the domestic and world economy will continue to face many challenges due to COVID-19 in 2022, and asked the SBV to strengthen analysing and forecasting activities, while continuing to use monetary policy tools in a proactive, flexible and synchronous manner, as well as coordinating fiscal policies and other macro-economic policies to reign in inflation and create optimal conditions for people and businesses to access capital for production recovery and development.

Banks aim to rein in bad debt in 2022

While commercial banks made progress in limiting financial risk last year, it will be a challenging task to improve credit quality and rein in rising bad debts in 2022, according to banking experts and officials.

The State Bank of Vietnam (SBV) said that banks had managed to accomplish many of the important objectives set by the SBV in its restructuring scheme to handle bad debt during 2016-20. However, many objectives were not met because of the adverse effects of the pandemic.

By the end of 2021, bad debt was 1.9 per cent, a slight uptick from 1.69 per cent reported in 2020. However, the figure rose to 3.79 per cent once counting the debts sold to Vietnam Asset Management Company.

As part of the country’s effort to support economic recovery, banks have implemented measures to extend credit grants, as well as reduce the interest rates and fees for affected businesses.

The timeline, which was established in 2019 before the pandemic hit, requires banks to bring down short-term capital use for medium and long-term loans to 40 per cent by January 1, 2020, 37 per cent by October 1, 2021, 34 per cent by September 30, 2022 and finally to 30 per cent by October 1, 2023.

Commercial banks have reported reduced bad debt in their 2021 financial reports. Bad debt at the Ban Viet Joint Stock Commercial Bank went down to 2.5 per cent from 3 per cent in 2020, TP Bank 0.9 per cent from 1.14 per cent, BIDV 0.81 per cent from 1.76 per cent.

In addition, banks made strides in making provisions for bad debt last year. Vietcombank reported the highest coverage at 424 per cent, BIDV at 235 per cent, VietinBank at 171 per cent, all well ahead of the schedule set by the SBV.

Mekong Delta should become role model in climate change adaptation: Minister

The Mekong Delta, the largest agricultural hub of Vietnam, should be confident to surmount difficulties and become a role model in climate change adaptation in the world, said Minister of Agriculture and Rural Development Le Minh Hoan.

Agriculture will remain a pillar of the economy in the coming years, so it needs to grow in a new direction which is shifting from separate development within each locality to inter-locality and inter-regional connectivity to boost common development, he told a meeting with agriculture officials of the 13 Mekong Delta localities in Bac Lieu province on February 9.

Hoan said the local agriculture sector should adopt the production models generating high economic values and enriching farmers.

Highlighting the tasks for 2022, the minister asked the localities to boost eco-farming to meet the global consumption demand, noting that agriculture should not be developed at the expense of the environment or people’s health.

Vietnam – Russia trade hit 6.3 billion USD in 11 months of 2021

The two-way trade between Vietnam and Russia hit 6.3 billion USD in the first 11 months of 2021, up 21.7 percent year-on-year, according to Vietnamese Trade Counselor in Russia Duong Hoang Minh who cited statistics from the Federal Customs Service of Russia.

During the period, Vietnam exported 4.5 billion USD worth of goods to Russia, posting a yearly rise of 20.4 percent.

Vietnam’s plant-based exports to Russia fetched 282 million USD, up 21.6 percent over the same period last year.

Among the key agricultural exports to Russia that posted strong values in January – November last year were coffee with 153 million USD (up 20 percent); fruit and nuts, 75.5 million USD (up 38 percent). Dried mango is a noteworthy export as it raked in 9.1 million USD, 10 percent higher than that reported in the same period of 2020, and accounting for over 92 percent of Russia’s total import value of this commodity.

Reference exchange rate up 4 VND

The State Bank of Vietnam set the daily reference exchange rate for the US dollar at 23,108 VND/USD on February 10, up 4 VND from the previous day.

With the current trading band of +/-3 percent, the ceiling rate applicable for commercial banks during the day is 23,801 VND/USD and the floor rate 22,414 VND/USD.

The opening-hour rates at commercial banks decreased.

At 8:30am, Vietcombank listed the buying rate at 22,510 VND/USD and the selling rate 22,820 VND/USD, both down 10 VND from February 9. BIDV also cut both rates by 20 VND, listing at 22,550 VND/USD (buying) and 22,830 VND/USD (selling).

Programme to support private firms in sustainable business development

Deputy Prime Minister Le Minh Khai has signed a decision approving a programme to support private enterprises in sustainable business development in the 2022-2025 period.

The major objective of the programme is to boost private businesses’ sustainable development with harmony between economic interest and cooperate social responsibility as well as environmental protection, thus contributing to completing 17 sustainable development goals in 2030.

It also aims to mobilise social resources for the growth of the ecosystem supporting the firms in sustainable business so that they can make positive contributions to job generation, improvement of living conditions for low-income people and disadvantaged groups, environmental protection and climate change response in Vietnam.

The programme will be implemented on a national scale, covering all private enterprises implementing sustainable business, relevant organisations, ministries, agencies and localities. The programme will give support to the firms in building sustainable business strategies and plans.

Those that are recognised as sustainable firms will receive assistance in personnel training, technology access, digital transformation, capital resources access, communications and trade promotion. Small and medium-sized enterprises (SME) will receive the highest support in sustainable business development from the State budget in line with the Law on SME Support and relevant legal documents.

Shares extend gains on property, steel stocks

Vietnamese markets extended gains and ended higher on Wednesday, thanks largely to sharp rises in property and steel shares.

The market benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) increased 0.29 per cent, to finish the trading day at 1,505.38 points.

The index had increased 0.22 per cent to finish Tuesday at 1,500.99 points.

The market breadth was positive as 161 stocks declined while 291 rose and 45 ended flat.

Nearly 794.7 million shares were traded on the southern market, worth VND25.2 trillion (US$1.1 billion).

The 30 biggest stocks tracker, VN30-Index, climbed 0.13 per cent to finish at 1,552.44 points.

Of the VN30 basket, 16 stocks increased while 14 decreased.

Meanwhile, on the Ha Noi Stock Exchange (HNX), the HNX-Index gained 1.51 per cent to close at 424.19 points.

The northern market index had gained 0.22 per cent to close Tuesday at 417.89 points.

During the session, nearly 65 million shares were traded on HNX, worth VND1.9 trillion.

Vinatex’s net profit rises sharply last year

Vietnam National Textile and Garment Group (Vinatex)’s post-tax profit in the last quarter of 2021 was nearly 500 billion VND (22.03 million USD), tripling the figure recorded in the same period of the previous year.

The group reported net revenue of over 16.09 trillion VND last year, up nearly 16 percent year-on-year, and net profit of 857 billion VND, representing a 2.6-fold rise.

The marked results in the fourth quarter are attributable to the acceleration of production after disruptions due to the COVID-19 pandemic, and material stockpiling since mid-2021 in anticipation of soaring prices, a representative from the group explained.

The group’s net revenue from sales and services in the last three months of 2021 reached over 4.98 trillion VND, a year-on-year increase of 39 percent.

Its turnover from financial activities also jumped by 44 percent to 94.7 billion VND.

International media highlights Vietnam’s investment opportunities

Emerging markets (EM) like Vietnam can provide potential growth opportunities for investors who do their due diligence, according to an article published by ETF Trends, a leading source in Exchange Traded Funds (ETF) news of the US.

The article said investing in EMs can come with its own nuances, particularly because each country’s performance can vary with respect to their economic stability.

The COVID-19 pandemic certainly roiled a lot of EM opportunities in 2020, but certain countries that were able to respond swiftly muted its economic effects.

Vietnam, for example, was able to rebound from the pandemic due to a quick, pointed response by its government, the article noted.

Binh Duong-based businesses need up to 50,000 labourers

Businesses in the southern industrial hub of Binh Duong are needing 40,000-50,000 labourers, mostly unskilled workers, in order to promote production after the long Lunar New Year (Tet) holidays.

According to the provincial Centre for Employment Services, the processing-manufacturing sector has the highest demand for labourers.

Notably, Shyang Hung Cheng Co. Ltd., Ampacs International Co. Ltd. and Rockdale Spear Co. Ltd. are recruiting 1,000 workers each. The average wage these companies are offering is 12-13 million VND (528-572 USD) per month.

Currently, the centre is organising job sessions in both in-person and online formats to connect labourers and businesses, while providing free recruitment information to job-seekers via Zalo and Facebook.

Export-import turnover up 83 percent during Tet holiday

Vietnam’s export-import turnover hit an estimated 3.05 billion USD during the Lunar New Year (Tet) holiday which lasted from January 29 – February 6, a hike of 83 percent compared to the same holiday last year.

According to the General Department of Vietnam Customs, as many as 2,462 businesses were engaged on import and export activities, and 20,460 customs declarations were processed in the reviewed period, 2.56 and nearly 2 times higher than the figures reported in the same period last year, respectively.

During the nine-day holiday, Vietnam exported commodities to 80 countries and territories, raking in 1.47 billion USD. Meanwhile, it spent 1.58 billion USD on imports.

China remained the largest importer of Vietnamese goods with a total value of 400 million USD, accounting for 27.3 percent the total export turnover. It was followed by the US (347.6 million USD), the Republic of Korea (RoK) (86 million USD), Hong Kong (China) (59 million USD) and Japan (41.8 million USD).

Vietnam imported nearly 548 million USD worth of goods from the RoK in the period, marking up 34.7 percent of the total import value.

Meanwhile, from the beginning of this year to February 6, the country’s export-import value totaled 61.85 billion USD, down 10.5 percent year-on-year, with a trade surplus of 680 million USD, the department reported.

NA Chairman attends groundbreaking of biodegradable resin factory in Hai Phong

National Assembly Chairman Vuong Dinh Hue on February 9 attended the groundbreaking ceremony of a PBAT biodegradable resin factory project by An Phat Holdings JSC in the northern port city of Hai Phong.

This will be the first green material manufacturing plant in Southeast Asia.

The plant, located in Nam Dinh Vu Industrial Park, has a designed capacity of 30,000 tonnes per year. With a total investment of up to 120 million USD, the construction is scheduled to take 24 months.

Once operational, the plant is expected to meet 100 percent of the raw material needs of An Phat Holdings and serve the company’s export. It is also hoped to generate jobs for around 200 high-quality workers.

Service sector’s personnel demand forecast to soar in early 2022

In the context of many sectors gradually recovering, the demand for human resources in early 2022 is forecast to increase sharply, especially in some service industries.

According to Pham Thi Hoai Linh, Human Resources Director at Navigos Group, fast-moving consumer goods (FMCG) businesses have just experienced a challenging year due to the impact of the COVID-19 pandemic. Therefore, in the first quarter of 2022, the recruitment demand in this field is bustling again as businesses begin to use their new budget sources, she said.

The information and telecommunication technology sector is also expected to have big demand for competent personnel in artificial intelligence (AI), Big Data, Crypto and Blockchain. However, the supply of human resources for these fields is limited, leading to a fierce competition between enterprises, added Linh.

Particularly, Navigos Search predicted that recruitment in the industrial and resort real estate would increase sharply in the first six months of this year.

The Centre of Forecasting Manpower Needs and Labour Market Information of Ho Chi Minh City said that the city would need around 255,000 to 310,000 workers in 2022 based on the pandemic situation.

In the scenario of the pandemic developing complicatedly, affecting the socio-economy growth, there will be around 255,000 to 280,000 vacant jobs. The recruitment demand for the first quarter is 71,500-78,500; 59,600-65,500 for the second; 60,600-66,500 for the third; and 63,300-69,500 for the fourth quarter.

In case the pandemic is put under control, the largest economic hub of Vietnam will need around 280,000 to 310,000 labourers. Of which, the city will be likely to lack around 78,500 to 86,900 workers, 65,500 to 72,500, 66,500 to 73,500 and 69,500 to 77,100 ones in the first, second, third and fourth quarter, respectively.

The demand for trained employees will account for over 86 percent. Of which, the need for those holding tertiary degrees would account for 20.74 percent

HCM City in need of 44,800-55,600 workers after Tet

As Ho Chi Minh City applies flexible measures to adapt to the new normal and curb the spread of COVID-19, firms are rolling out recruitment plans after Tet (Lunar New Year) holiday with about 44,800-55,600 vacant positions to be filled.

According to the city’s Centre of Forecasting Manpower Needs and Labour Market Information, the available jobs are primarily in the fields of textile-leather footwear; food manufacturing and processing; mechanics; chemicals, pharmaceuticals and rubber products; and wholesale and retails, among others.

Over 86.39 percent of the positions are for those with training, with 21.58 percent of them seeking those holding bachelor’s and higher degrees.

Human resources demand in HCM City has been on the rise and the labour market posted positive changes. Many businesses are recruiting hundreds of work hands. In particular, the rapid development of the e-commerce prompts rising demand for delivery services, resulting in firms’ constant need for personnel.

Quang Ninh aims to host some 10 million tourists in 2022

The northern coastal province of Quang Ninh is determined to quickly and sustainably recover the local tourism this year by welcoming between 9.53 million to 10 million visitors, including 1.5 million foreigners, said Vice Chairwoman of the provincial People’s Committee Nguyen Thi Hanh.

According to Hanh, the province boasts the highest rate of people getting third COVID-19 vaccine shots in Vietnam as well as a safe, flexible, and effective adaptation to the pandemic.

Via communications campaigns, the development of new products, including night-time economic activities, and the organisation of large-scale tourism, sport, and cultural events, the province’s tourism recovery programme this year targets a full restoration of all activities and products; and safety for tourists.

Hanh informed that in February and March, the local authorities will work with big travel companies and competent agencies of such key tourist markets as Hanoi and Ho Chi Minh City.

From January 1 to June 30, Quang Ninh offers a 50-percent discount of tickets to many destinations like the Yen Tu scenic site, Ha Long Bay, and the province’s museum and library.

HCM City earns VND3,100 billion from tourism services during Tet holiday

Ho Chi Minh City’s tourism market recorded positive signals during the Lunar New Year holiday, known locally as Tet, fetching VND3,100 billion in revenue between January 29 and February 6, according to the municipal Department of Tourism.

Of the total, roughly VND300 billion came from services at tourist destinations, VND1,200 billion from lodging services, and VND1,600 billion from other tourism services such as dining and transportation costs.

Travel firms operating in Ho Chi Minh City revealed that the number of travelers during the Lunar New Year holiday has increased sharply to approximately 300,000, with Suoi Tien Tourist Site in Thu Duc City and Dam Sen Culture Park in District 11 welcoming over 85,000 visitors altogether between February 1-6.

These promising signs are anticipated to provide fresh impetus for a tourism boom in the upcoming summer season, said the executive.

VIETNAM BUSINESS NEWS FEBRUARY 10

Source: VNA/SGGP/VOV/VNS/VNN/VGP

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