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All three Vietnam bourses sink deep into the red

All three Vietnam bourses sink deep into the red

An investor looks at stock prices on a laptop at a brokerage in Ho Chi Minh City. Photo by VnExpress/Quynh Tran.

All three of Vietnam’s stock exchanges plunged further Monday, following four consecutive losing sessions of the benchmark VN-Index.

The VN-Index tumbled 2.65 percent, or 22.62 points to 829.36 points, falling to its lowest level since May 15. In this period, the index had peaked at 900 points on June 10, but profit-taking pressure for many consecutive sessions is causing the current corrective trend, analysts said.

The Ho Chi Minh Stock Exchange (HoSE), Vietnam’s main bourse on which the VN-Index is based, saw a whopping 358 stocks lose and just 53 gaining.

Total transaction volume was VND5.56 trillion ($240 million), an increase of 30 percent over the previous session, but still much lower than trading in May, a month of strong recovery for the VN-Index, when it had surged as high as VND7 trillion ($302 million) in multiple sessions.

The HNX-Index for stocks on the Hanoi Stock Exchange, home to mid and small caps, plunged 2.76 percent, and the UPCoM-Index for stocks on the Unlisted Public Companies Market shed 1.6 percent.

The VN30-Index for the market’s 30 largest capped stocks dropped 2.6 percent, with 28 tickers losing and two gaining.

Topping losses were SBT of agricultural firm TTC-Sugar, SSI of brokerage Saigon Securities Inc., and VPB of private VPBank, all falling 4.5 percent..

They were followed by POW of electricity generator PetroVietnam Power, down 3.9 percent, BVH of insurance giant Bao Viet Group, down 3.7 percent.

BID of Vietnam’s biggest state-owned lender by assets, BIDV, GAS of energy giant PetroVietnam Gas, and PNJ of jewelry retailer Phu Nhuan jewelry, all shed 3.5 percent. BID and GAS are two of the 10 biggest capped tickers on the VN30.

Of state-owned banks, CTG of giant VietinBank dropped 2.9 percent, and VCB of giant Vietcombank fell 2.2 percent, while MBB of mid-sized Military Bank lost 2.9 percent.

VIC of private conglomerate Vingroup, the largest capped stock on the HoSE, shed 2.9 percent, a significant loss given that this ticker seldom moves more than 2 percent each session. VRE of its retail arm Vincom Retail was down 3.1 percent, and VHM of its real estate arm Vinhomes dropped 2.1 percent.

In the opposite direction, CTD of construction giant Coteccons surged 4.8 percent, bucking the general market trend. The ticker had been fluctuating wildly within the last week, rising to its ceiling price twice but falling 6.1 percent in a session, after Coteccons announced a major personnel change to its board of directors last Monday.

Coteccons had revealed that Nguyen Sy Cong and Nguyen Tat Thang, two of its top executives, would resign and be replaced with personnel from Kustocem and The8th, two Singapore-based construction investors, who own 18.23 percent and 10.42 percent of the Vietnamese construction giant, respectively.

The only other gaining ticker was EIB of private Eximbank, which rose 1.4 percent.

Foreign investors continued to be net sellers on all three bourses to the tune of VND150 billion ($6.48 million), with selling pressure mostly on VNM of dairy giant Vinamilk, which fell 2.2 percent, and VIC of Vingroup.

Analysts forecast Monday morning that the stock market could see some serious losses this week, after the VN-Index fell for four consecutive sessions, snuffing out the excitement over the May recovery.

The narrowing of trading volume for the second week in a row has prevented the stock market from rising above the 870-point resistance threshold, they said.

Source: https://e.vnexpress.net/news/business/economy/all-three-vietnam-bourses-sink-deep-into-the-red-4122776.html

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Vietnam’s labour export market expected to recover soon

Vietnam’s labour export activities are showing signs of recovery from COVID-19.

Vietnamese labourers at Noi Bai International Airport heading to South Korea before the COVID-19. — Photo Department of Overseas Labour

Vietnamese labourers who have been working in Malaysia have been told they can return to work, but not until the end of August.

And moves are being made to allow workers to return to both South Korea and Taiwan in the near future.

The Department of Overseas Labour under the Ministry of Labour, Invalids and Social Affairs (MOLISA) has said the Malaysian Government officially announced to end the valid restricted movement order.

In a recent meeting, Prime Minister Nguyen Xuan Phuc assigned the ministry make arrangements to send labourers to countries which are safe and in need of workers.

Nguyen Gia Liem, the department’s deputy director, said the three markets received more than 90 per cent of the total of Vietnamese labourers in foreign countries.

Employers in South Korea and Taiwan wanted Vietnamese labourers to come back to resume their production as soon as possible. The Human Resource Development Services of Korea last month organised the Korean language proficiency tests in Ha Noi, HCM City and Da Nang, showing that this market would be soon re-openned.

Liem said the labour demand in Japan was also very high, especially in sectors of agriculture, taking care of the elderly and food processing. The two countries have been under negotiations to resume their labour market hopefully by the end of this month or the beginning of August.

Pham Do Nhat Tan, vice chairman of Viet Nam Association of Manpower Supply (VAMAS), said the labour export market has seen signs of recovery. It was expected that Japan would soon re-open. Local firms operating in the sector should prepare workers to meet the demand as soon as the country resume the market.

In addition, the Government should negotiate with Japan to have flexible solutions to bring workers to safe areas without COVID-19, he said.

In mid-June, Hoang Long CMS Company brought 29 workers to Taiwan following an order of Kymco Group for its electronic motorbike assembly factory.

Nghiem Quoc Hung, the company’s chairman cum general director, said labourers were provided with accommodation and isolated for 14 days before starting work.

Vu Thanh Hai, director of international investment and service company, Interserco, also said they have started to complete procedures for labourers to move to Taiwan this month. Workers in production sectors would be given priorities. Some Taiwanese companies have already arranged quarantine areas for Vietnamese labourers.

Viet Nam aims to send 130,000 labourers to work overseas this year. However, the country has so far only sent 33,500 people to foreign markets in the first half of the year due to the pandemic, reducing 40 per cent from the same period last year. In May only, local businesses sent just 126 workers abroad.

In the last six months, more than 5,000 Vietnamese labourers in overseas markets returned home because of COVID-19. — VNS

Source: https://vietnamnet.vn/en/business/vietnam-s-labour-export-market-expected-to-recover-soon-656394.html

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Bến Tre urged to step up public investment disbursement

Prime Minister Nguyễn Xuân Phúc works with leaders of the Mekong Delta’s Bến Tre Province on Thursday in Hà Nội. — VNA/ Photo

HÀ NỘI — Prime Minister Nguyễn Xuân Phúc on Thursday urged the Mekong Delta province of Bến Tre to work hard to complete yearly targets and tasks, with the local public investment disbursement rate set at at least 90 per cent.

He pointed out difficulties caused by the COVID-19 pandemic and drought facing the locality, and its low disbursement rate.

Bến Tre should utilise opportunities from international integration, especially free trade agreements (FTAs) to which Việt Nam is a member like the EU-Vietnam Free Trade Agreement (EVFTA), he said.

The PM praised Bến Tre for its high provincial competitiveness index and other indices, and asked the locality to step up administrative reform and improve the local business environment.

More attention should be paid to management of climate change projects, he said, stressing that Bến Tre needs to take a step ahead in digital transformation to pave the way for digital economic development.

PM Phúc agreed in principle on Bến Tre’s mobilisation of resources from different economic sectors in building a transmission line system connected to renewable energy projects in the province.

It was reported that Bến Tre’s socio-economic development has been impacted by COVID-19 and drought.

The pandemic has forced 55 businesses to dissolve and more than 130 others to suspend their operations. As of mid-June, the province had received 6,200 applications for unemployment benefits.

Meanwhile, drought has affected 5,300ha of rice, 28,00ha of fruit trees and 2,000ha of giant river prawns, with total economic losses amounting to VNĐ1.66 trillion (US$71.65 million). —

Source: https://vietnamnews.vn/economy/749431/ben-tre-urged-to-step-up-public-investment-disbursement.html

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Vietnam should speed up public investment disbursement to lure Japanese investments: official

More than 1,000 Japanese businesses participated in the teleconference, which sought ways to attract Japanese investments into Vietnam, held on July 9, 2020 – PHOTO: MPI

HCMC – Vietnam should seek to fast-track disbursement for public investment projects and improve transparency in policy execution to attract Japanese investments, a Japanese official said at a teleconference on July 9 held by the Vietnamese Ministry of Planning and Investment, the Japanese Embassy in Vietnam, the Japan External Trade Organization and the Japan Bank for International Cooperation to boost Japanese investments in Vietnam.

More than 1,000 Japanese businesses in Japan and around the world took part in the event, reported the Vietnam News Agency.

Envoy Okabe Daisuke from the Japanese Embassy in Vietnam stated that Japanese investors have shown keen interest in Vietnam.

A survey on Japanese enterprises in Asia and Oceania conducted by JETRO in February 2020 revealed that 63.9% of Japanese businesses doing business in Vietnam said they would further step up activities in the Southeast Asian nation.

This rate was highest among the Association of South-East Asian Nations and third in Asia and Oceania, behind Bangladesh and India.

Daisuke urged Vietnam to speed up capital disbursement for public investment projects. He said Japan is ready to support the country in the execution of projects that would bolster economic growth.

The country also needs to ensure transparency, fairness and effectiveness in implementing policies and further foster international integration in order to lure investments, according to the envoy.

Aguin Toru, Chief Representative of JBIC’s Hanoi Office, said the bank considers Vietnam a key area and an important partner of Japan in many fields, such as infrastructure, manufacturing and natural resources.

The bank has offered support to 82 projects implemented by Japan’s small- and medium-sized enterprises in Vietnam, according to Aguin Toru.

Meanwhile, Deputy Minister of Planning and Investment Vu Dai Thang told the participants that Vietnam has successfully controlled the novel coronavirus pandemic, adding that the country has also adopted many policies, including the revised Law on Investment, the revised Law on Enterprises and the Public-Private Partnership Law.

He stressed that the Vietnamese National Assembly has approved the European Union-Vietnam Free Trade Agreement and the EU-Vietnam Investment Protection Agreement.

Do Nhat Hoang, director of the MPI’s Foreign Investment Agency, noted that Vietnam has political stability, high economic growth, abundant human resources, a potential market and an increasing per capita income.

Vietnam has also expanded international integration and cooperation with other economies worldwide, stated Hoang.

Vietnam occupies a strategic position as it takes some three to five hours to fly from the Southeast Asian country to Asia’s investment hubs, such as Thailand, China, Japan and India, according to the official.

He stated that Vietnam has also come up with preferential policies to attract foreign investment, with priority given to new technology, environmentally friendly and high-value projects.

“We have representatives in Japan’s cities and provinces to support Japanese businesses,” he said, adding that partners could get in touch with the Foreign Investment Agency and investment support centers in the Northeast Asian nation.

Source: https://english.thesaigontimes.vn/77549/vietnam-should-speed-up-public-investment-disbursement-to-lure-japanese-investments-official.html

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