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Finance Ministry urges stricter control over risky corporate bonds in Vietnam

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The Ministry of Finance (MoF) has tightened control over risky corporate bond issuance.

MoF urges stricter control over risky corporate bonds in Vietnam

Stricter rules are needed to control risk at growing corporate bonds issuances. Photo: Duc Thanh

The MoF has published a document requesting the State Securities Commission (SSC), the Finance and Banking Department under the MoF, and the Vietnam Stock Exchange to strengthen inspection of the corporate bond market.

In recent years, corporate bonds have emerged as one of the most crucial elements in capital mobilisation but have also exposed retail and institutional investors to higher risks.

Finance Minister Ho Duc Phoc also urged the Finance and Banking Department to coordinate with relevant parties in implementing new regulations on corporate bond issuance while at the same time completing regulations on market management and supervision.

One of the priorities is to tighten the issuance of private corporate bonds with no or low-quality collaterals.

The SSC was also assigned to strengthen inspection and examination of individual corporate bonds issuances.

The market regulator will focus on monitoring the issuance of small- and medium-sized businesses, startups, or enterprises operating in high-risk sectors.

The SSC shall report more serious instances of fraud or inappropriate actions to the police.

The MoF is tightening the inspection of the corporate bond market as the volume of private corporate bond issuances continued to increase in the first six months of 2021.

In general, in H1/2021, businesses conducted 306 bond issuances, including 293 private placements with a total value of VND176.828 trillion ($7.7 billion), a more than 8 per cent jump compared to the same period last year, and 13 issuances to the public valued at VND15.375 trillion ($668.5 million), equivalent to 50.3 per cent of the public issuance volume in 2020 (not including the issuance of international bonds by some major players like Vingroup or BIM Group).

Source: VIR

Source: https://vietnamnet.vn/en/business/mof-urges-stricter-control-over-risky-corporate-bonds-in-vietnam-772026.html

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Vietnam to build $305mn airport in northern resort town

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Prime Minister Pham Minh Chinh issued a decision on Thursday to approve the construction of an airport in Sa Pa, a famous resort town in the northern Vietnamese province of Lao Cai, at an estimated cost of almost VND7 trillion (US$305 million).

The project, developed under the public-private partnership (PPP) format, is located on a 371-hectare plot in Cam Con Commune, Bao Yen District.

The first phase of the construction will start this year and will build the airport to a capacity of 1.5 million passengers a year before doubling it to three million passengers following the second stage in 2028.

The government will be charged with site clearance while private companies will undertake construction of the project. 

The government will contribute VND2.73 trillion ($119.8 million), or 39 percent of the funds, and private investors will cover the rest. 

Construction is expected to last four years and the investors are forecast to break even after 46 years. 

Sa Pa Airport is one of six new airports approved for construction by 2030.

Vietnam has 22 airports at present.

In the first six months of 2021, Lao Cai welcomed 1.1 million tourists, up 21 percent year on year, according to the Ministry of Culture, Sports, and Tourism.

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Source: https://tuoitrenews.vn/news/business/20211022/vietnam-to-build-305mn-airport-in-northern-resort-town/63719.html

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Effective linkage chain of safe agricultural production in Hà Nội

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Leaders of Hà Nội Department of Agriculture and Rural Development visited a linkage model of chicken raising for eggs with high economic efficiency in Liên Châu Commune, Thanh Oai District, Hà Nội. — Photo courtesy of Hà Nội Department of Agriculture and Rural Development

HÀ NỘI — Despite the complicated developments of the COVID-19 pandemic, thanks to agricultural production in the direction of safety, clear origin, and signing of product consumption contracts, agricultural product chains in Hà Nội are still promoting efficiency.

Director of An Phát General Agricultural Service Cooperative in Thanh Trì District Lưu Ngọc Nam said that in order to ensure a stable source of safe vegetables for supermarkets, convenience stores and collective kitchens, the cooperative has linked with 120 farming households in Yên Mỹ Commune, Thanh Trì District to produce more than 20ha of clean vegetables.

In addition, it also signed a contract to cover all vegetables produced in accordance with VietGAP standards in the communes of Yên Mỹ, Duyên Hà, and Vạn Phúc.

Director of Hoàng Long Cooperative in Thanh Oai District Nguyễn Trọng Long said that the cooperative supplied more than two tonnes of pork to the market every day.

Thanks to close links with the distribution system, the A-Z pork consumption chain of the cooperative has been maintained stably during the pandemic.

It is expected that people’s demand for food will increase by 15-20 per cent at the end of the year.

The cooperative was promoting re-herding and taking good care of the herd to supply the market at the end of the year with a possible output of more than 100 tonnes per month, said the director.

Production line of the Ba Vì Farm Milk Joint Stock Company. — Photo hoinongdan.org.vn

The modern milk production line of the Ba Vì Farm Milk Joint Stock Company has an initial capacity of about 6 tonnes per day.

To ensure the source of raw milk, the company has co-operated with more than 20 dairy farming households in Ba Vì District, purchasing about 1.5-2 tonnes of milk per day for pasteurised milk production and other dairy products.

With a modern double-sealed technology platform, a processing capacity of approximately 2,000 tonnes per year, the company has now launched more than 20 types of products, with a wide consumption market across the country.

Not only bringing good revenue, the linkage model of cow milk production also brings stable income for dozens of livestock households and about 50 employees.

Assessing the effectiveness of the chain of agricultural product consumption, the director of the Hà Nội Agro – Forestry – Fisheries Quality Assurance Sub-Department Nguyễn Thị Thu Hằng said that 141 chain links from production to consumption in Hà Nội was currently showing good results. The production in the linked chain not only helped increase economic value but also contributed to raise income for workers.

Consumers also benefit from agricultural products with clear origin, safety and quality assurance.

Currently, in the context of the COVID-19 pandemic, measures to stabilise the supply of food are very important.

In order for the chains to continue to be effective in all situations, Vice Chairman of Thanh Oai District People’s Committee Nguyễn Trọng Khiển said that the district has a policy to support funding for communes to increase training courses, raise awareness and production techniques of typical local agricultural products, build brands, and connect with businesses to sign contracts to consume products.

Nguyễn Văn Chí, director of the Hà Nội Rural Development Sub-Department and deputy chief of the standing office of the co-ordination office of the Hà Nội New Rural Development Programme, said that to support agricultural production and consumption, Hà Nội was trying to implement the form of consuming agricultural products through online channels and social networks in order not to disrupt the production and supply chains of agricultural products in the area.

Deputy Director of Hà Nội Department of Agriculture and Rural Development Nguyễn Ngọc Sơn emphasised that in order to support entities participating in the chain, Hà Nội’s agriculture sector was creating favorable conditions for localities to promote the transformation of agricultural economic models in the direction of concentrated farming, thereby forming a large commodity supply chain.

At the same time, it also provided loans from the Hà Nội National Agriculture Extension Center (NAEC) for agricultural producers and developers to apply high technology to ensure a safe supply of agricultural products for consumers.

Source: https://vietnamnews.vn/economy/1063199/effective-linkage-chain-of-safe-agricultural-production-in-ha-noi.html

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Mekong Delta Province maintains factory restrictions over ‘high risks’: officials

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Mekong Delta Province maintains factory restrictions over ‘high risks’: officials

Inside the factory of rice cracker producer Want Want Vietnam in Tien Giang Province. Photo courtesy of Want Want Vietnam.


Mekong Delta province of Tien Giang is still imposing the stay-at-work model because of high Covid-outbreak risks driven by low vaccination, an official said.

With only around 45 percent of workers vaccinated, the province cannot risk spreading infection with many returning from other provinces, said Nguyen Nhat Truong, head of Tien Giang Industrial Hub Management Committee, at a press briefing Thursday.

He was responding to a recent letter from 19 factories demanding the stay-at-work and one-route-two-destinations models be removed so they could resume normal operation.

Although 109,000 workers across industrial parks have been half-vaccinated, or nearly 100 percent, 14 days have yet to pass in accordance with official health requirements, Truong said.

He added that in early August the province had to shut down 10 companies due to contagion, which shows the low compliance among workers in imposing safety measures.

Chau Thi My Phuong, head of the Propaganda Department of Tien Giang Provincial Party Committee, said the province is allowing workers from ‘green’ zones to commute to ‘green’ factories.

‘Green’ refers to an area deemed safe from Covid-19.

However, business representatives at the meeting disagreed with officials.

They said that among the 19 companies that sent a joint letter requesting government intervention to lift restrictions in Tien Giang, over 80 percent of workers had received their first vaccination shot for 14 days.

Some companies even have a full vaccination rate of 30 percent, making them eligible to resume production according to the government’s latest decree on gradual economic reopening.

They added that the ‘green-green’ model is difficult to impose as only three factories are approved to operate under this scheme with only 10 percent of their total workforce.

The stay-at-work model is not viable either as factories are required to close immediately when one Covid-19 case is found.

“This is not in line with the government’s strategy to fight the pandemic while keeping manufacturing going,” a business representative said.

If these restrictions are not lifted, companies would lose customers and have to pay a penalty for failing to fulfill contracts.

The 19 businesses with nearly 70,000 workers on Oct. 19 sent a letter to the Prime Minister requesting his intervention in lifting Tien Giang restrictions.

They want the stay-at-work model removed and workers who live in areas with low, average and high risks to be allowed to commute to work using personal transport.

On the government’s Covid-19 scale, the province currently puts itself at Level 2 out of 4, or at average risk.

Source: https://e.vnexpress.net/news/business/economy/mekong-delta-province-maintains-factory-restrictions-over-high-risks-officials-4375421.html

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