Day: November 17, 2022

President Nguyen Xuan Phuc met representatives from leading Thai groups that are running large-scale projects in Vietnam as part of his trip to Thailand on November 17.

 

At a reception for Roongrote Rangsiyopash, President and CEO of SCG that is investing in the southern petrochemical complex project in Long Son commune in Ba Ria-Vung Tau province, Phuc lauded the group’s efforts in pursuing projects in Vietnam, particularly the petrochemical complex, seen as a key project in economic cooperation between the two countries.

 

The leader also praised the group for its engagement in social welfare in Vietnam, and expressed his hope that it will gain more successes in investment and production in the country.

 

Vietnam will do its best to facilitate the operation of SCG, he pledged.

 

Rangsiyopash promised to make the project green and environmentally friendly for public health while contributing to Vietnam’s economic development.

 

Meeting Vikrom Kromadit, Founder and CEO of Amata Group, which is implementing projects worth billions of USD in Vietnam, Phuc congratulated the firm on its successes in the southern provinces of Dong Nai and Ba Ria-Vung Tau.

 

He suggested the group expand its investment in Vietnam, noting that the country is working hard to improve its business environment and step up decentralisation, while protecting rights and interests of investors.

 

In reply, Kromadit said that Amata has operated in Vietnam for more than 25 years, and made notable achievements from projects in Long Binh and Long Thanh of Dong Nai, Quang Tri and Quang Ninh’s Ha Long.

 

Amata plans to launch smart city projects in Vietnam, he continued, suggesting Vietnam consolidate its land-related policies and handle difficulties in land reclamation and site clearance to support investors.

 

At another reception for CP Group Chairman Dhanim Chearnont, Phuc emphasised that CP remains a big brand in Vietnam, especially in husbandry, and food processing and exports.

 

CP has played a part in promoting the Vietnamese food and husbandry sectors, he noted.

 

He also suggested the group scale up its operations in Vietnam, closely coordinate with local authorities to boost the domestic husbandry sector, and accelerate processing of high-quality products, particularly those from livestock and poultry.

 

A representative from CP said the group will upgrade technologies and production and processing lines, and ensure product safety and quality in the Vietnamese market./.

Source: Vietnam News Agency

People-to-people exchanges play a very important role in Vietnam-Thailand relations, President Nguyen Xuan Phuc said while receiving President of the Thailand-Vietnam Friendship Association (TVFA) Sanan Angubolkul in Bangkok on November 17.

 

The Vietnamese President has been in Thailand for an official visit and attendance at the 29th APEC Economic Leaders’ Meeting.

 

At the reception, President Phuc lauded the association’s activities and contributions to the two countries’ traditional friendship, particularly regarding the bilateral cooperation in trade, economy, and investment, as well as cooperative ties between businesses and the people of Vietnam and Thailand.

 

He proposed the association focus on promoting the image and tourism of Vietnam, overhauling activities to boost the two nations’ comprehensive cooperation, and effectively connecting Vietnamese and Thai firms.

The President took this occasion to thank Thai authorities and the TVFA for their support for Thai people of Vietnamese origin, wishing that the TVFA will further facilitate associations of the community to make more contributions to the two nations’ friendship.

 

He expressed his belief that the association would continue making active contributions to the traditional friendship between the Vietnamese and Thai people and the Vietnam-Thailand strengthened strategic partnership.

 

Agreeing with the President, Sanan said in the context of the two nations’ marking a decade of their strategic partnership next year, the association will increase its activities serving their friendship exchanges and cooperation in trade, culture, education, and tourism.

 

Special attention will be paid to linking Vietnamese and Thai enterprises to seek business and investment opportunities, he added.

 

Some members of the TVFA are investing in Vietnam and hope to receive more support and favourable conditions from Vietnamese authorities, the official noted./.

Source: Vietnam News Agency

 

The Vietnamese stock market has just closed the first half of a rough November with a forgettable session. Selling force weighed on most of the industry groups, with the whole market recording nearly 400 stocks hitting floor prices.

 

The market benchmark VN-Index finished November 15 at 911.9 points, a decline of 3.1% from the previous day’s level. This was the lowest in more than 25 months since October 5, 2020.

 

A drop of 3.1% made the country’s stock market the biggest loser in Asia on November 15. Most of the major markets in the region such as Japan, China, and the Republic of Korea, have recovered well recently. However, the positive effect did not influence the Vietnamese stock market, according to cafef.vn.

 

Since the beginning of November, the benchmark has lost another 116 points, equivalent to a decrease of 11.3%. The losses were approximately the fall of the whole September, when the index dipped the most in 31 months since it hit the bottom during the COVID-19 pandemic period.

 

The market was even the world’s worst performer in a week, a month, a quarter, six months, and a year, since the beginning of the year, and from the peak.

The sharp fall since the beginning of November caused the market to lose 463 trillion VND (19.6 billion USD) in market capitalisation on the Ho Chi Minh Stock Exchange (HoSE). In just half a month, the market dropped more than 500 trillion VND in market capitalisation on three exchanges. Compared to the peak in early April, the loss even reached nearly 2.68 quadrillion VND.

 

The market was in a bear state amid a wave of margin calls of many real estate business leaders, casting a shadow on many stocks. The sell-off activities created a domino effect, causing a number of stocks to hit floor prices.

 

Despite the strong corrections, bottom-fishing demand remains weak as a part of cash flow has been disbursed to production. Higher interest rates also stimulated more investors to shift to less risky assets like bank savings. Moreover, the tightening management of corporate bond issuance activities and limited credit room somewhat affected the stock market’s sentiment.

 

Looming sentiment dragging the market’s liquidity to the lowest level since the beginning of 2021 with the average matching value on HoSE less than 8.7 trillion VND. There are no longer billion-dollar trading sessions like the boom period one year ago, but more and more sessions below 10 trillion VND.

 

At that time, cash inflows from foreign investors became a highlight as they continuously net bought during the period. From the beginning of November until now, they net bought more than 6.2 billion VND on HoSE alone, the largest figure in recent months. Earlier this year, they net sold nearly 4.2 trillion VND.

Capital flows from East Asia and Thailand continue to play an important role in attracting foreign investors to return to the market. Outstanding passive funds such as Fubon ETF and Diamond ETF continuously attract money with a value of hundreds, even trillions of dong. In addition, well-known foreign funds like Dragon Capital and VinaCapital also showed signs of disbursing recently.

 

The attractive valuation of the Vietnamese stock market is one of the appealing factors to foreign investors. Data from Bloomberg showed that the VN-Index’s price to earning ratio (P/E) is currently at 9.4x, even lower than the bottom hit at the end of March 2020 and equivalent to the bottom during the 2011-12 crisis.

 

Although short-term difficulties are inevitable, Dragon Capital believes that many risks have been priced-in and the market valuation is in a very attractive area.

 

Similarly, ACB Securities Company (ACBS) also assesses that the VN-Index still maintains a greater attraction for long-term investors compared to peer-to-peer markets with P/E of 9.8x.

 

SGI Capital believes that the market has been at the oversold zone corresponding to the historical cheap valuation area.

 

“The nature of the stock market is always volatile and difficult to predict in the short term, investors who can overcome the current crisis will reap great results when the market and the economy return to the growth cycle,” said the investment fund./.

Source: Vietnam News Agency

 

President Nguyen Xuan Phuc on November 17 attended and opened the 2022 Vietnam Goods Week in Thailand, which has attracted the participation of more than 70 businesses.

 

The event, from November 16-20, is being jointly held by the Vietnamese Ministry of Industry and Trade (MoIT) and Central Retail Vietnam at CentralWorld – one of the biggest commercial centres in the world.

 

Since its launch in 2016, the programme has made it easier for Vietnamese goods to access the distribution system of Central Group – a leader in retail and service business in Thailand, according to MoIT Deputy Minister Do Thang Hai.

 

With 45 booths, the exhibition is displaying the best of Vietnamese products, while promoting tourism and culture in Vietnamese localities. It is expected to welcome 500,000 visitors.

 

Central Retail Vietnam will be a strategic partner of the MoIT in trade promotion and market expansion under an agreement signed within the framework of the programme.

 

President Phuc is in Thailand for an official visit to the country and attendance at the 29th Asia-Pacific Economic Cooperation (APEC) Economic Leaders’ Meeting from November 16-19. /.

Source: Vietnam News Agency

 

Within the framework of the 25th ASEAN-China Summit, leaders of ASEAN nations and China discussed a series of measures to promote their comprehensive strategic partnership for sustainable development across all fields, actively and effectively contributing to peaceful cooperation, stability and prosperity in the region and in the world, said Spokeswoman of the Ministry of Foreign Affairs Le Thi Thu Hang.

 

Hang informed a regular press conference of the ministry in Hanoi on November 17 that ASEAN and China also adopted a joint statement on the occasion of the 20th anniversary of the Declaration of the Conduct of Parties in the East Sea (DOC), in which the two sides reaffirmed the significance and importance of this document for maintaining peace, security and stability in the East Sea.

The two sides have completed the first round and are conducting the second round of review of the single negotiating text for a draft Code of Conduct in the East Sea (COC), showing their desire to soon reach a practical, effective COC that is in accordance with international law, especially the 1982 United Nations Convention on the Law of the Sea (UNCLOS), thus contributing to the maintenance of peace, security and stability in the region, and creating a favourable environment for the peaceful settlement of disputes in the East Sea, the spokeswoman added./.

Source: Vietnam News Agency

Prime Minister Pham Minh Chinh held a meeting with more than 300 voters in the Mekong Delta city of Can Tho on November 17 following the fourth session of the 15th National Assembly.

 

The local voters expressed their confidence in the instruction and management of the Party, the National Assembly and the Government, which have helped boost socio-economic recovery and development, and fight corruption and other negative phenomena.

 

They raised concerns over personnel issues and the shortage of drugs and medical equipment.

 

The voters suggested launching more social housing projects for low-income earners, building more expressways, promoting wind power and seeking solutions to climate change in Mekong Delta and Can Tho in particular.

 

PM Chinh provided more updates on the fourth sitting of the 15th legislature, from October 20 to November 15, and briefed them on the socio-economic situation in 2022 as well as tasks and solutions for 2023 and the years to come.

 

He noted that despite a host of challenges, the socio-economic situation has seen marked achievements, and 14 out of 15 targets set for the whole year are expected to be fulfilled. He also highlighted achievements in cultural and social affairs, institutional building, national defence and security, and external relations.

 

Given this, the NA has adopted decisions and resolutions which say greater efforts should be made to maintain macro-economic stability, control inflation, spur growth and ensure major economic balances, Chinh said.

 

The leader pointed to other tasks and solutions for 2023 such as bettering intuitional building and perfection, improving the business environment, and stepping up efforts to fight corruption and other negative phenomena.

 

The PM directly cleared up questions and concerns of the voters regarding cyber space management, the resignation of many medical workers, the shortage of medical equipment, textbooks, housing for low-income earners, and corruption combat.

 

The leader asked ministries and agencies to continue collecting voters’ petitions./.

Source: Vietnam News Agency

The Ministry of Foreign Affairs will continue to direct the Vietnamese Embassy in France and the Delegation of Vietnam to UNESCO to coordinate with the Ministry of Culture, Sports and Tourism (MCST) and relevant agencies to implement procedures to bring the Nguyen Dynasty’s imperial seal ‘Hoang de chi bao’ (Treasure of the Emperor) from France to Vietnam as soon as possible, said spokeswoman Le Thi Thu Hang.

 

At a regular press conference of the ministry in Hanoi on November 17, Hang said recently, under the Government’s timely direction, the Ministry of Foreign Affairs, the Vietnamese Embassy in France and the Delegation of Vietnam to UNESCO have worked on all channels to proposed interventions to stop the auction of the seal and ownership transfer to the Vietnamese side. They exchanged diplomatic letters and notes; officially contacted and met with the diplomatic advisor of the French President,  the French Ministries of Foreign Affairs, and of Culture, UNESCO leaders, and other relevant specialised departments.

 

“We have also discussed with the French auction house Millon and consulted organisations specialising in cultural and artistic heritage, and individuals involved to acquire information and notify relevant agencies in Vietnam, creating a basis for negotiations,” the spokeswoman said.

 

On October 19, Millon announced its auction of 329 antiquities, including two dating back to the Nguyen Dynasty (1802-1945) – a golden seal made in 1823 under the reign of King Minh Mang (1820 – 1841) and a golden bowl made under the reign of King Khai Dinh (1917-925).

 

After the confirmation of the authenticity of the seal, a Vietnamese inter-ministerial delegation and the auction house agreed to transfer them. The MCST said on November 14 that the sides agreed to carry out relevant legal processes and procedures for the repatriation of the seal to Vietnam in accordance with the laws of both nations, in the spirit of their mutual understanding and the Vietnam-France friendship and relationship./.

Source: Vietnam News Agency

Bank Indonesia (BI) on November 17 raised its key interest rate by 50 basis points for a third consecutive month, saying it will enhance its response to “high” inflation expectations amid a strong economic backdrop.

 

BI Governor Perry Warjiyo told an online news conference that the “front-loaded” and “pre-emptive” move was aimed at anchoring inflation expectations and stepping up support for the rupiah.

 

While the global economy was slowing and some countries were facing recession risks, he said activity in Southeast Asia’s largest economy was improving.

 

The central bank stuck to its forecast that growth will be at the upper end of its 4.5%-5.3% forecast range in 2022, adding GDP will be “high” next year.

 

With the move, BI has increased interest rates by a total of 175 bps since August, matching the scale of its last tightening cycle in 2018.

 

While Indonesia’s inflation rate eased to 5.71% in October, it remained above BI’s 2-4% target range for the fifth straight month and near a seven-year high of 5.95% in September.

 

Warjiyo said the market’s current consensus forecast for end-2022 inflation of 5.9% was “too high” compared with BI’s revised expectation of 5.6%. Core inflation was expected to peak at 3.7% in the first quarter of 2023, he said./.

Source: Vietnam News Agency