Market liquidity

This year Vietnam has exposed and corrected violations in these markets to "protect the rights of citizens and businesses," he said at a government meeting Thursday morning. Arrests of real estate and property company leaders allegedly involved in bond fraud have disrupted the bond market in recent months, with many companies buying back their issued bonds in fear of legal entanglement. Businesses have been complaining that they lack access to the credit needed for expansions because bond issuance is no longer a viable fundraising option. Depositors have been withdrawing their money from banks to protect their assets, which makes it difficult for companies to acquire loans. But PM Chinh said that the current crackdown would change these "short-term" problems. He added that three state task forces were now tackling capital issues in the property and bond markets. Minister of Finance Ho Duc Phoc, charged with solving the bond market problem, said earlier that bond issuers … [Read more...] about Vietnam needs to ‘protect’ citizens with market ‘rectifications:’ PM

Chargé d’Affairs Mark Tattersall and six new private sector partnerships . (Photo courtesy of Australian Embassy to Vietnam) Hanoi (VNS/VNA) - Six new private sector partnerships announced under the Australian Department of Foreign Affairs and Trade ’s (DFAT’s) Business Partnerships Platform (BPP) will promote the growth of sustainable carbon markets that deliver significant social and environmental benefits to communities in Vietnam. The six multi-stakeholder partnerships, supported by an investment of 3.3 million USD from DFAT, will leverage more than 3.7 million USD in private sector investment and resources towards improving the enabling environment for carbon markets projects in Vietnam that are able to deliver verifiable and sustainable social and environmental outcomes. The new partnerships will test and trial new approaches within voluntary market frameworks to reduce greenhouse gas emissions, lower carbon market entry barriers for producers, build the … [Read more...] about Australia supports carbon market partnerships in Vietnam

An advertisement for corporate bonds. (Photo: baodautu.vn) Hanoi (VNA) - After strong growth in the previous quarter, Vietnam’s currency bond market contracted 0.2% due to a decline in the Government bond market and slower growth in corporate bonds. On an annual basis, the market increased 21.1% to 97.4 billion USD. The information was released in a recent report by the Asian Development Bank (ADB). The country's Government bonds contracted 2% as the outstanding stock of central bank bills fell 70.3% from the previous quarter. Outstanding government bonds reached 67.3 billion USD. Expansion of corporate bonds moderated to 4.1% from the previous quarter, putting the segment at 30.1 billion USD. The report said that aggressive monetary tightening in advanced economies has pushed up bond yields and worsened the downturn of financial conditions in emerging East Asia. Regional currencies fell against the US dollar, equities dropped, and risk premiums widened between … [Read more...] about Vietnam’s bond market contracts amid monetary tightening

In an interview granted to Vietnam News Agency correspondents in Hong Kong, Mr To cited a forecast from the International Monetary Fund that Vietnam’s GDP growth is likely to come in at 7-7.5% this year, leading the five emerging economies in ASEAN, which include Indonesia, Malaysia, the Philippines, Thailand, and Vietnam . With its young population, rapid urbanisation, and abundant workforce, Vietnam is an attractive consumer market. It is also one of the fastest growing e-commerce markets in Southeast Asia. According to Bain & Company, Vietnam’s e-commerce sector has increased significantly in recent years, from 8 billion USD in 2020 to 13 billion USD in 2021 and is expected to hit 39 billion USD by 2025. The ASEAN-Hong Kong Free Trade Agreement, which officially took effect in June 2019, has played a huge role in promoting trade relations between Vietnam and Hong Kong. Localities in Vietnam and Hong Kong have witnessed close economic and trade cooperation over … [Read more...] about Plenty of space for growth in Vietnam’s consumer market

Customers at a branch of Bao Viet Holdings (BVH). BVH lost 1.3 per cent on Thursday. — VNA/VNS Photo The Vietnamese stock market settled lower on Thursday, ending its five-day gaining streak due to the slump of heavy-weight stocks. On the Ho Chi Minh Stock Exchange, the VN-Index lost 1.16 per cent, to close Thursday at 1,036.28 points. The index had risen 1.58 per cent, to close Wednesday at 1,048.42 points. Liquidity hit a 7-month high with more than 1.34 billion shares worth VND21.8 trillion (US$888 million) traded in the southern market. The market breadth was positive with gainers outnumbering losers by 281-166. Another 75 closed flat. Blue chips led the market downtrend. Nineteen out of the top 30 shares by market value and liquidity on the HoSE lost value and only nine gained. The VN-30 Index, tracking the 30 biggest stocks on HoSE, declined 0.63 per cent to close at 1,042.64 points. In the VN-30 basket, Property giant Vinhomes (VHM), steelmaker Hoa Phat Group … [Read more...] about Shares slump after five days of gains

Marketing authorisations (MAs) have been a pressing issue among multinationals and the Vietnamese government and the Ministry of Health (MoH) has made a number of actions to deal with it. What is the current situation? Tran Ngoc Anh, representative of the US-ASEAN Business Council Member companies of the US-ASEAN Business Council highly valued the issuance of Resolution No.12/2021/UBTVQH15 at the end of 2021, which enabled the continued use of MAs scheduled to expire before the end of 2022. The MoH then issued a list of about 10,000 drugs with MAs expired in 2021 and extended until the end of 2022, thus creating favourable conditions for the drugs to continue their imports into Vietnam and ensuring supply for hospitals to meet examination and treatment demands. Until now, all the issues related to MA for the drugs in 2022 have been dealt with. However, starting from January 2023, these 10,000 drugs and around 8,000 others will then expire. We are very concerned about … [Read more...] about The legal adaption measures expected from pharma groups

The Vietnam Rubber Association (VRA) last month proposed to the Ministry of Finance (MoF) to consider applying a VAT policy on preliminarily processed rubber and latex, similar to other agricultural products. The VRA also urges for the application of preferential corporate tax for income from the harvest of liquidated rubber trees, like other crop products, and a land rent exemption policy for replanted rubber areas during the construction period. The goal is to remove difficulties for the entire value chain, from rubber growers to exporters. Rubber producers continue to brood over tough prices and tax complexities, photo Le Toan In Ho Chi Minh City, Hoa Thuan Trading Co., Ltd. is still waiting for a tax refund of $2 million for rubber exports. Representative Tran Le Thu said, “When completing tax refund procedures in Ho Chi Minh City, the company have to wait for the agency to verify invoices for purchasing raw materials in the provinces.” Thu also pointed towards “a … [Read more...] about Rubber producers continue to brood over tough prices and tax complexities

The Law on Land (LoL) and the Law on Residential Housing (LoRH) issued in 2013 and 2014, respectively, are among the main laws applicable to the property market. However, due to certain restrictions in the legal framework, foreign investment in Vietnam’s property market has not reached the level expected by authorities. The authorities are in the process of amending both laws, and the draft amendments have been published for public consultation. Thang Nguyen-Special counsel, ACSV Legal Foreign investors can put money into Vietnam’s property market through directly buying and reselling residential houses, developing real property projects for sale or for lease, or acquiring existing projects. For non-nationals looking to buy residential properties in Vietnam, the draft amended laws contain no notable change compared to prevailing laws. Currently, the total number of units owned by foreigners must not exceed 30 per cent of the total number of units in one condominium … [Read more...] about Law tweaks can allure real estate investors

Illustrative image. (Photo: SGGP) From December 1, some commercial banks have continued to raise deposit interest rates sharply by more than 1 percent per annum compared to before. Specifically, VietCapital Bank continues to adjust deposit interest rates in some terms by 0.8-1.1 percent to the highest level of 9.5 percent per annum. This is the bank's third adjustment since September 2022. VietCapital Bank increased the deposit interest rates for six and 12-month terms from 7.6 percent and 8.2 percent per annum to 8.4 percent and 9.2 percent per annum. Meanwhile, long-term deposits of 18, 24, 36, 48, and 60 months have risen to 9.4 percent per annum. Especially, if depositing money online, customers will receive an interest rate of 8.8 percent per annum for a six-month term, 9.4 percent per annum for a 12-month term, and 9.5 percent per annum for a 24-month term. It is also the highest interest rate at VietCapital Bank applied to personal deposits. Not only increases interest … [Read more...] about Bank deposit interest rates still climb continuously

The Vietnam Textile and Apparel Association (Vitas) forecasts that the business results of textile and garment enterprises in the fourth quarter will decline compared to the same period last year due to the impact of many geopolitical factors. Importers in the United States, EU, and Japan have been lowering prices and reducing orders. Despite this, textile and garment exports in the first 10 months of 2022 reached $37.9 billion, up 17.2 per cent over the same period last year. Textile groups at pains to regather momentum, source: shutterstock Vitas chairman Vu Duc Giang said, “Enterprises’ warehouses are full and inventories are so large that many customers are forced to stop ordering or even delay the delivery time. Businesses are missing 35-50 per cent of orders for November and December.” The outlook for apparel orders in 2023 is clouded by the effect of the inventory cycle extending from Q4. This is also an indicator that the textile and garment industry will face … [Read more...] about Textile groups at pains to regather momentum