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Jan.–June foreign investment reported at $14.03 bln, down 8.9%

As of June 20, the total newly registered, adjusted, and contributed capital to buy shares of foreign investors reached $14.03 billion, down 8.9 percent, according to the Ministry of Planning and Investment.

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Although newly registered capital has not fully recovered after the interruption of anti-pandemic measures in 2021, adjusted capital and contributed capital to buy shares increased strongly by 65.6% and 41.4%, respectively.

Foreign investors have invested in 18 sectors out of a total of 21 national economic sectors. The processing and manufacturing industry continued to lead with a total investment of nearly $8.84 billion, accounting for nearly 63% of total registered investment capital.

Real estate ranked second with total investment capital of over $3.15 billion, accounting for 22.5% of total registered investment capital. Information and communication industries, and science and technology activities had total registered capital of nearly $442.6 million and $408.5 million respectively.

In terms of the number of new projects, wholesale and retail, the manufacturing and processing industry, and professional science and technology activities are the industries that attract the most projects, accounting for 30.1%, and 25, respectively. 4% and 16.5% of total projects.

Singapore is the largest investor

In the first 6 months, 84 countries and territories have invested in Vietnam. Singapore leads with a total investment capital of over $4.1 billion, accounting for 29.5% of the total investment capital in Vietnam, down 26.6% over the same period in 2021.

South Korea ranked second with over $2.66 billion, accounting for nearly 19% of total investment capital, up 29.6% over the same period. With a Lego project with a total investment of over $1.3 billion, Denmark continues to rank third with a total registered investment capital of nearly $1.32 billion, accounting for 9.4% of the total investment capital.

According to the number of projects, Korea is still the partner with investors interested in and making new investment decisions as well as expanding investment projects and contributing capital to buy shares the most in the first 6 months of 2022 (accounting for 21.3% of the total number of projects, 35.9% of adjustments, and 36.7% of contributing capital to buy shares).

Foreign investors have invested in 49 provinces and cities across the country in the first 6 months of 2022. Binh Duong leads the way with a total registered investment capital of over $2.53 billion, accounting for 18% of the total registered investment capital and increasing 98.2% over the same period in 2021.

Ho Chi Minh City ranked second with a total investment capital of over $2.2 billion, accounting for 15.8% of total capital, up 55.2% over the same period. period. Bac Ninh ranked third with a total registered investment capital of nearly $1.63 billion, accounting for 11.7% of total capital and increasing more than 3.3 times over the same period in 2021.

In terms of the number of new projects, foreign investors still focus on investing a lot in big cities with convenient infrastructure such as Ho Chi Minh City, and Hanoi. In, Ho Chi Minh City leads in the number of new projects (40.4%), the number of public service providers (68.3%), and is second in the number of projects with capital adjustment (14% after Hanoi is 16.6%).

FDI sector records $15.8 billion trade surplus

Export turnover of the FDI sector continued to increase in the first 6 months of 2022. Exports (including crude oil) were estimated at nearly $136.36 billion, up 16% over the same period, accounting for 73.5% of export turnover.

Exports excluding crude oil were estimated at nearly $135.2 billion, up 15.8% over the same period, accounting for 72.9% of the country’s export turnover.

Export turnover of the FDI sector continued to increase in the first 6 months of 2022. Exports (including crude oil) were estimated at nearly $136.36 billion, up 16% over the same period, accounting for 73.5% of export turnover.

Exports excluding crude oil were estimated at nearly $135.2 billion, up 15.8% over the same period, accounting for 72.9% of the country’s export turnover.

Imports of the FDI sector were estimated at over $120.52 billion, up 16.1% over the same period and accounting for 64.8% of the country’s import turnover

Generally, in the first 6 months of 2022, the FDI had a trade surplus of over $15.8 billion including crude oil, and a trade surplus of nearly $14.7 billion excluding crude oil. Meanwhile, the domestic business sector had a trade deficit of nearly $16.4 billion.

Source: https://e.nhipcaudautu.vn/economy/janjune-foreign-investment-reported-at-1403-bln-down-89-3346415/

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Vietnam’s bond market slightly down in Q3, but up 21% yoy: ADB

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Vietnam’s local currency bond market at the end of the third quarter of 2022 showed a marginal contraction of 0.2 percent quarter-on-quarter (q-o-q) to VND2,323.5 trillion (US$97.4 billion), after its strong growth in the previous quarter, according to the latest Asia Bond Monitor (ABM) by the Asian Development Bank (ADB).

This slowdown has reserved the previous quarter’s rapid growth of 8 percent q-o-q, but compared with the same quarter in the previous year, Vietnam’s bond market grew 21.1 percent year-on-year (y-o-y) in the period, slowing from the 31.4 percent y-o-y expansion in the previous quarter.

The decline was mainly due to a contraction in the government bond segment and a slowdown in the corporate bond segment, the ABM, which was issued on Friday, reported.

Such a situation in Vietnam has resulted from the overall context that emerging East Asia witnessed the accelerating deterioration of financial conditions and rising bond yields between August 31 and November 4, largely driven by aggressive monetary tightening in major advanced economies in the world.

In respect of government bonds, Vietnam’s local currency government bond market at the end of September contracted 2.0 percent q-o-q to VND1,604.9 trillion ($67 billion).

Much of the decline can be attributed to central bank bills, whose outstanding bond stock fell significantly by 70.3 percent q-o-q in the third quarter of this year.

In contrast to the previous quarter’s aggressive expansion, the ABM said, central bank bills displayed the largest decline among all bond segments during the third quarter, with the total stock of central bank bills slumped to VND30.4 trillion ($1 billion) at the end of September from VND102.4 trillion ($4 billion) at the end of June.

As regards corporate bonds, growth in the corporate bond segment moderated to 4.1 percent q-o-q in the period from 9.5 percent q-o-q in the previous quarter, according to ABM.

At the end of September, the total outstanding corporate bond stock climbed to VND718.6 trillion ($30 billion) and was mainly dominated by the banking and property industries, which collectively accounted for 75.3 percent of the aggregate corporate bond stock.

Vietnam’s top 30 corporate issuers, largely comprising firms from the banking and property sectors, including a few finance and energy firms, had an aggregate bond stock amounting to VND448.6 trillion ($18.8 billion) at the end of September, which was equivalent to 62.4 percent of the total local currency corporate bond market. 

The top corporate issuer remained the state-owned Bank for Investment and Development of Vietnam (BIDV), with an outstanding bond stock of VND58.4 trillion ($2.45 billion) at the end of the July-September period, accounting for 8.1 percent of the total corporate bond stock of Vietnam.

The ABM also noted that the Vietnamese government promulgated Decree No. 65 in September, amending the existing regulations on the offering and trading of privately issued bonds, with an aim to enhance transparency and sustainability in the bond market by tightening disclosure requirements and imposing stricter conditions on bonds’ private placements. 

The new legal document was developed to protect investors in several key areas, such as limiting the purpose of bond proceeds, implementing new requirements on the issuer’s credit rating, and mandating additional disclosures by the issuers. 

According to the Vietnam Bond Market Association (VBMA), the total volume of corporate bond issuance in the third quarter of 2022 decreased by about 68 percent y-o-y.

Construction and real estate groups saw the most declines in bond issuance value in the period, with the drops of 98.7 percent and 93.4 percent, respectively.

Most corporate bonds issued in the third quarter of 2022 had maturities of 1-3 years, accounting for about 52 percent of the total issuance volume, with an average issuance yield of 7.17 percent per year, a slight increase from the quarter earlier.

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Source: https://tuoitrenews.vn/news/business/20221126/vietnams-bond-market-slightly-down-in-q3-but-up-21-yoy-adb/70203.html

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Modern pharmacies thrive in Vietnam

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Vietnam has witnessed the fast growth of pharmacy chains as Vietnamese people’s spending on pharmaceutical products amounted to US$6.6 billion last year, according to the Vietnam Report.

Vietnam’s healthcare market was valued at $16.2 billion by 2020, accounting for 6 percent of the country’s gross domestic product (GDP). 

Total health spending increased from $16.1 billion in 2017 to over $20 billion in 2021, and is projected to reach $23.3 billion in 2025 and $33.8 billion in 2030, with an annual average growth rate during the 2020-30 period expected at 7.6 percent.

Nearly 90 percent of pharmaceutical manufacturing, distribution and trading enterprises reported higher revenue, and some 80 percent of them recorded profit growth in the first nine months of this year compared to the same period in 2021, according to a survey conducted by the Vietnam Report in October and November.

The experts participating in the survey said that the COVID-19 pandemic created a faster shift in the revenue structure of the pharmaceutical industry in different ways.

The outbreaks of the viral disease caused people to limit their visits to hospitals and switch to buying drugs to treat COVID-19 symptoms and health supplements in the post-COVID-19 period.

Big names in the pharmaceutical retail industry such as Long Chau, Pharmacity, and An Khang are wasting no time expanding their market dominance.

They aim to reach 7,300 pharmacies by 2025, or 16 percent of the domestic market share.

These modern pharmacy retailers win market share from traditional pharmacies as the government gradually introduces stricter regulations for pharmaceutical retail businesses, including tighter control over prescription drugs and the rollout of electronic prescriptions.

Besides, public hospitals’ more caution in drug procurement offers more advantages to pharmacies.

On the other hand, over-the-counter drugs accounted for ten percent of pharmacies’ sales in 2021 and continued to improve by the end of the first quarter of 2022.

The experts expect the market to become more competitive in the future due to the emergence of new businesses.

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Source: https://tuoitrenews.vn/news/business/20221126/modern-pharmacies-thrive-in-vietnam/70198.html

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Citigroup converts $1 mln worth of bonds in Vietnam’s property developer No Va Land to 271,000 shares

Vietnam’s fourth-biggest listed property developer No Va Land said Citigroup has converted $1 million worth of its five convertible bonds into around 271,000 shares of the company.

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Reuters previously reported No Va Land was firing staff and seeking urgent cash as it struggles to pay creditors, showing signs of distress in the real estate sector.

The Vietnamese government’s move to tighten rules on corporate bond issuance and restrict their refinancing have left some developers facing a credit crunch.

The conversion price, according to a No Va Land statement dated November 22, was at 85,000 dong ($3.42), while shares were trading at 21,950 dong as of 0431 GMT on Thursday, the lowest level since the company listed on Ho Chi Minh Stock Exchange.

Trading of company shares were lacklustre over the past month, data from Ho Chi Minh Stock Exchange shows. However, a large volume of 128 million shares of the company was traded on the day of conversion.

Founded in 2007, No Va Land is active mostly in residential property and luxury resorts. The company’s share value has dropped nearly 76% since the beginning of this year.

No Va Land has been the biggest issuer of corporate bonds among Vietnam’s property firms this year, says industry body Vietnam Bond Market Association, placing debt worth 9,857 billion dong ($396.3 million).

In a separate statement, No Va Land said it has actively worked with both domestic and international financial institutions to ensure financial health and to be fully prepared for the upcoming period.

($1 = 24,847 dong)

Source: Reuters

Source: https://e.nhipcaudautu.vn/companies/citigroup-converts-1-mln-worth-of-bonds-in-vietnams-property-developer-no-va-land-to-271000-shares-3349242/

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