Vietnam Newswire

Hanoi: Credit ratings agency Fitch Ratings has recently revealed upgrades for several banks, in the wake of its decision to raise Vietnam's national credit rating to BB with a long-term outlook of "Stable". It upgraded the Long-Term Foreign-Currency Issuer Default Ratings (IDR) of three major banks, namely VietinBank, Vietcombank, and Agribank, from BB to BB with a "Stable" outlook. Additionally, the Military Bank (MB)'s credit rating has also been elevated to BB with a "Stable" outlook. With improving business environment, Fitch Ratings also raised the operating environment (OE) scores for the Vietnamese banking system, anticipating that the economy will continue to recover and grow robustly over the medium term. Credit conditions have gradually eased since the beginning of this year, thanks to decisive and appropriate monetary policy actions. At the same time, Fitch anticipated the financial efficiency of the Vietnamese banking sector to recover next year, buoyed by rising credit demand and improved net interest margins of commercial banks. The non-performing loan (NPL) ratio is also expected to improve as the economy rebounds. Fitch forecast a GDP growth of 6.3% for Vietnam in 2024. Additionally, stable asset quality indicators and enhanced profitability contribute to the improved credit ratings for these banks. Dr. Vo Tri Thanh, member of the National Financial and Monetary Policy Advisory Council, said the upgrade holds significance as it enables banks to access international funding sources more easily, leading to cost saving through securing capital at more favourable interest rates. He said with the current credit rating, there is a need for further improvement in financial health, position and brand to strengthen investor confidence, expand business opportunities, and improve business prospects./. Source: Vietnam News Agency

Hanoi: Only three share auctions have been organised in the Vietnamese stock market so far this year, the lowest number since 2007, according to recent statistics from the Hanoi and Ho Chi Minh Stock Exchanges (HNX and HoSE). The auctions had a total value of 2.7 trillion VND (111 million USD). The HoSE recorded a single successful auction, with Petrolimex divesting 120 million shares (equivalent to a 40% stake) in PGBank (PGB) with a value of 2.56 trillion VND. On the HNX, there were two successful auctions involving Tia Sang Battery (TSB), selling 3.44 million shares, and EVNNPC auctioning 2.34 million shares. The total value of share auctions on the Hanoi bourse reached nearly 164 billion VND. The decline in share auction activities can be attributed to various factors, including the challenging macroeconomic conditions in 2023. The VN-Index has struggled to surpass the 1,100-point threshold for several months, reflecting the difficult situation in the stock market. Experts point out that the lack of n otable new companies entering the market is one of the reasons for the decline in share auctions. This has led to a continuous decrease in auction values over the years, from a peak of 130 trillion VND in 2017 to only 2.7 trillion VND last year. The number of newly listed shares in 2023 remains modest. Both exchanges have listed only nine new stock codes and one fund certificate, with many of them being transferred from UPCoM and not considered entirely new listings. Companies like Nova Consumer (NCG), Ton Dong A (GDA), and VNG (VNZ) have decided not to list and are only traded on UPCoM. Moreover, several stocks have been delisted from the HoSE and the HNX due to violations of information disclosure regulations and financial losses. Dinh The Hien, an economic expert, said that the lack of new listings is primarily due to businesses not perceiving the favourable timing for going public. After a challenging year, the stock market has only experienced a slight recovery, making it unfavourable for businesses t o raise capital at reasonable costs through IPOs. "State-owned enterprises face additional challenges in the equitisation process as they require strategic partners to participate. However, the global economic difficulties caused by the COVID-19 pandemic have led to a narrowing of operations for many manufacturing corporations and financial investors, making it more challenging for state-owned companies to find strategic investors." Hien emphasised the importance of a vibrant market with new products and listings. The presence of more listed businesses and quality stocks attracts investors and contributes to the development of the capital market./. Source: Vietnam News Agency

Hanoi: Vietnam ranked second in Asia-Pacific in the rate of consumers' frequency of art performance attendance inside and outside the country in the January-December period at 41%, only after India at 45%, according to the latest Green Shoots Radar report released by Visa, the world's leading electronic payment firm. According to the report, 40% of Vietnamese travelled abroad to enjoy performances, especially to Thailand and the Republic of Korea. Dang Tuyet Dung, Visa Country Manager for Vietnam and Laos said that the return of tourism and live music performances signals an extremely positive trend. During cross-border travel, card payment plays a key role in providing a safe and secure ticket purchasing experience through contactless payment, she said, adding that consumers can also pay for event items, prepare travel plans and shop seamlessly using a bank card. The report also predicted three major tourism trends in 2024, with continuous increase in domestic and international travel demand to attend liv e music performances. The second trend is that Vietnamese consumers will still maintain positive attitude. According to the report, four out of 10 consumers in Asia-Pacific said they believe that the domestic economic situation will improve in the coming year. In Vietnam, 75% of consumers continued to show optimism about the domestic economic outlook, much higher than that of Indonesia at 64% and the Philippines at 50%. As a result, 16% of surveyed Vietnamese consumers said they plan to buy new cars, while 55% shared their intention to spend more in 2024, higher than the region's average at 50%. At the same time, consumers are predicted to increase personal savings. Despite their intention to spend more, the majority of consumers said that they plan to set aside a larger budget for savings purposes. In Vietnam, 43% of surveyed consumers said that they hope to make more personal savings which account for 10-29% of their income, it said, adding that the rate is higher than the region's average at 36%./. Sourc e: Vietnam News Agency

Hanoi: A workshop discussing measures and appropriate policies to help Vietnamese businesses enhance their brand position during the process of international economic integration was held by the Vietnam Institute of Economics (VIE) under the Vietnam Academy of Social Sciences in Hanoi on December 19. In his opening speech, Director of VIE, Assoc. Prof. Dr. Bui Quang Tuan said developing and protecting Vietnamese brands plays a crucial role in the development of the business community and the national economy, stressing that in the context of Vietnam's increasingly open economy and strong integration into the global economy, this task becomes even more essential. He mentioned limitations in this work, saying that the brand development and protection of Vietnamese businesses still lacks professionalism, and that Vietnamese brands appear relatively indistinct in the eyes of international consumers and the competitive advantage of Vietnamese exports primarily relies in prices rather than value. Dr. Nguyen Quoc Thinh, former head of the Marketing Faculty of the Vietnam University of Commerce, cited a recent report by Brand Finance that said the value of Vietnam's national brand rose by 11% to 431 billion USD in 2022 from 388 billion USD in 2021. He said that to successfully build a brand, businesses need to perfect their products, enhance brand identity set and touchpoints, and promote communication activities to introduce their brands and expand distribution channels. Meanwhile, Dr. Khong Quoc Minh from the Intellectual Property Department (IPD) under the Ministry of Science and Technology underlined the importance of refreshing brands to meet new requirements and directions in keeping up with market trends and competing with rivals./. Source: Vietnam News Agency

HCM City: Many Singaporean businesses and investors have given priority to Ho Chi Minh City in their operational expansion plans, especially in the fields of finance, trade and high technology. Representatives of Singaporean firms expressed their interest in the city at a meeting with local leaders jointly held by the HCM City Investment and Trade Promotion Centre (ITPC), and the Singaporean Consulate General on December 19. Reviewing progress in Vietnam-Singapore relations, Chairman of the municipal People's Committee Phan Van Mai said two-way trade exceeded 9.1 billion USD last year, and Singapore has become Vietnam's fifth biggest trading partner and the largest foreign investor in the Association of Southeast Asian Nations (ASEAN). Singapore has been the biggest foreign investor in HCM City, he said, adding that by the end of November, the country had ran 1,821 projects worth 14.2 billion USD, making up nearly 25% of the total FDI in the southern largest economic hub. Being aware of the importance of FDI to local economic development, HCM City has taken many solutions to accelerate administrative reform and create favourable conditions for foreign firms to operate in the city, the official said. Singaporean Consul General Kho Ngee Seng Roy said Singaporean businesses have considered Vietnam, including HCM City, as an attractive investment destination. According to Le Thi Huynh Mai, Director of the municipal Department of Planning and Investment, HCM City is working to become a centre of high tech and digital technology, and a regional finance centre. Therefore, in the short and medium terms, HCM City prioritises investments in digital economy, industry 4.0-based economy, automation industry, precision mechanics, new materials, pharmaceuticals, biological industry, high-tech agriculture, environmental technology, and clean energy, she said. At the same time, the city is calling for foreign investments in research and development activities, innovation, startup and technology transformation, the officia l continued. For the long run, it targets high-tech projects that satisfy environmental standards, and offer the transformation of knowledge, technology and administration, she added, noting that the southern economic hub is also working to lure investments in transport and social infrastructure. Mai pledged that HCM City will work harder to remove obstacles for businesses and create optimal conditions for them to operate effectively, safety and sustainably in the city./. Source: Vietnam News Agency

Hanoi: Vietnam Airlines Corporation achieved positive financial results, with total consolidated revenue reaching 71.77 trillion VND (nearly 2.95 billion USD) in 2022. The figure was announced at Vietnam Airlines' 2023 annual general meeting of shareholders held last weekend. The figure exceeded the plan set by the general meeting of shareholders by 20% and was 2.4 times higher than the results in 2021. Additionally, the number of consolidated losses decreased compared to the plan reported at the 2022 annual general meeting of shareholders. In terms of passenger transportation, Vietnam Airlines carried 18.24 million passengers, surpassing the planned number by 7.5%. The international tourist output reached more than 2.47 million visitors, while domestic visitors reached 15.77 million. These figures exceeded the planned targets by 9% and represented a 14.2% increase compared to 2019. The year 2022 presented significant challenges for the aviation industry, including rising input costs, particularly fuel co sts. The average fuel price in 2022 was 124.4 USD per barrel, which was 14.1 USD higher than planned (110.26 USD per barrel). This increase led to fuel costs rising to approximately 2.4 trillion VND. Compared to 2019, fuel costs increased by about 7.6 trillion VND. Moreover, the USD appreciated significantly against other currencies in the past two decades, resulting in higher input costs due to the high USD/VND exchange rate. Furthermore, 2022 was marked by major global changes in politics, economics, and society. The international air transport market began reopening on March 15, but many countries still had entry and quarantine regulations in place, which made passengers hesitant to travel. China's "zero-COVID" policy froze its market, and conflicts between Russia and Ukraine, along with the potential risk of a European economic recession, added to the challenging environment. Despite these difficulties, Vietnam Airlines proactively developed plans for various scenarios and operated its production and bu siness activities in line with market recovery. The company prioritised safety in epidemic prevention and control while balancing operational efficiency. By the end of 2022, Vietnam Airlines had restored its entire domestic flight network compared to pre-pandemic times and resumed operations on over 70% of international routes. Transport output exceeded the yearly plan by 7-8%. The corporation also implemented cost-cutting measures to enhance efficiency. Total cost reductions in 2022 amounted to approximately 7.2 trillion VND, with efforts such as negotiating price reductions and implementing savings initiatives contributing to cost savings of around 4.29 trillion VND./. Source: Vietnam News Agency

Hanoi: Minister of Industry and Trade Nguyen Hong Dien had a working session with leaders of Sirius International Holding of the UAE in Hanoi on December 19 to discuss business and investment cooperation opportunities in Vietnam. Akshay Kumar Mahajan, Director for investment at Sirius International Holding - an Abu Dhabi-based subsidiary focusing on digital transformation of International Holding Company (IHC), said that within the framework of the recent 28th United Nations Climate Change Conference (COP28) in the UAE, leaders of his company had a meeting with Vietnamese Prime Minister Pham Minh Chinh. This visit to Vietnam by a delegation of Sirius International Holding shows the firm's wish to promote substantive cooperation with Vietnamese partners in such potential fields as developing smart grids, carbon credit trading ecosystem and infrastructure, e-commerce, and cryptocurrency, he noted. Minister Dien said Vietnam has been deeply integrating into the world via 16 bilateral and regional free trade a greements, and it is accelerating the negotiation on and signing of a comprehensive economic partnership agreement with the UAE. He also provided more information about Vietnam's commitment to achieving net zero emissions by 2050, the development of the energy sector and carbon credit trading, and e-commerce growth. Vietnam and the UAE have agreed on the content of the comprehensive economic partnership agreement and plan to sign this deal in early 2024, he said, adding that the agreement is expected to help foster UAE business investment in the Southeast Asian country. Minister Dien invited Sirius International Holding to work with Vietnamese firms in the fields it is interested in to tap into cooperation opportunities to be generated by the coming agreement. Akshay Kumar Mahajan expressed his hope to soon find out potential partners in Vietnam in the time ahead./. Source: Vietnam News Agency

Hanoi: To gain a firm foothold in the European market, Vietnamese enterprises have been advised to soon adapt to the European Green Deal (EGD) to meet new requirements of this choosy market. According to the Vietnam Chamber of Commerce and Industry (VCCI)'s Centre for WTO and International Trade, in the first 10 months of 2023, Vietnam's export value to the EU surpassed 36 billion USD. To achieve sustainable export, it is necessary to have appropriate preparations and be ready to comply with the EGD, which is an urgent requirement for Vietnamese manufacturers and exporters in the coming time, according to experts. However, a recent survey by the VCCI showed that 88-93% of respondents have never heard or have only briefly heard about the deal. The EGD, launched in 2020, is a package of policy initiatives aiming to set the EU on the path to a green transition, with the ultimate goal of reaching climate neutrality by 2050. In fact, since the enforcement of this deal, there have been many green policies that have directly affected foreign goods imported into this region as well as production and export of products from Vietnam to this market. Accordingly, Vietnam's exports forecast to be most impacted by the green transition process in the EU in the coming time include electric and electronic products, machinery, equipment and components, farm produce, aquatic products, wood and wooden products, iron and steel, garments, and footwear. VCCI Vice President Nguyen Quang Vinh said that as regulations on the EGD are diverse, without a common roadmap, Vietnamese businesses need to proactively learn about and understand the regulations and policies which have affected the industries and products so as to have thorough preparations and suitable transition. Some economists advised businesses themselves to identify difficulties and challenges facing their products caused by EGD regulations so as to accurately grasp and regularly update specific EU green policies related to each type of export to gradually adapt to and e nsure compliance with mandatory requirements. They also stressed the need for the State to issue policies to support enterprises in green industrial development, and those to attract more investment./. Source: Vietnam News Agency