Business

Stock market volatility expected amid coronavirus next week

Published

3 years ago

March 15, 2020

The bull and bear statue is seen outside the Hochiminh Stock Exchange building in District 1, HCMC – PHOTO: THANH HOA

HCMC – Even in a rebounding scenario, the VN-Index on the Hochiminh Stock Exchange is expected to experience wild volatility and revisit a support range of 710-740 points next week, according to Bao Viet Securities.

The brokerage said in a daily report that market uncertainties would remain given the coronavirus pandemic and the net-selling pressure from foreign investors.

As of late Saturday, the Vietnamese Ministry of Health reported four more coronavirus infections in Hanoi City, the northern province of Quang Ninh and HCMC, bringing the country’s total to 53.

Bao Viet said the benchmark index successfully retested the support zone of 710-740 points on Friday. Stocks have become oversold on a large scale, reinforcing the possibility of a short-term recovery.

The firm added the maturity of March 2020 futures contracts and exchange-traded funds’ portfolio review session will take place during the second half of next week. Therefore, the market may suffer strong volatility in the last sessions of the week.

Stock exposure should be maintained at 10-20% of the portfolio. Investors with a high stock proportion may consider lowering their exposure during the rising sessions, said the firm.

It also advised that investors with a high cash proportion should refrain from chasing such rallies and only consider buying stocks within the support zone of 700-740 points with low proportions, prioritizing portfolio-existing positions.

Viet Capital Securities reported that mirroring other Asian markets that traded wildly following Wall Street’s biggest drop since 1987, the VN-Index plunged 6% in early trading on Friday before climbing back in the rest of the session to close down by roughly 1% at 761.78 points.

The index ended the week down 14.5%, the largest weekly decline since August 2017. In addition, foreign investors net sold around US$28 million worth of shares on the southern bourse, the 24th consecutive net-selling session, according to Viet Capital.

Lender BID (-4.6%), the biggest drag, finished the week down more than 25%. Another bank, VCB, fell 1%, becoming one of the day’s top decliners. Conversely, STB gained 4.5%, TCB 1.7%, CTG 0.7%, MBB 0.9% and HDB 0.9%.

Gas and oil firms GAS and PLX lost 4% and 5% on Friday, taking their weekly losses to 26.5% and 27.3%.

Financial service provider TCH continued to nosedive.

Other notable decliners included insurer BVH (4.7%), mobile phone retailer MWG (2.8%), and dairy producer VNM (1.8%).

On the positive side, Vietnam’s largest private firm VIC and power firm POW were the top two gainers, up 0.8% and 6.1%. Investment firm NLG surged 6.8%, easing off its five-session losing streak.

On the Hanoi Stock Exchange, the HNX-Index lost 0.52% from a day earlier to end Friday at 101.38 points. More than 84 million shares worth around VND831 billion were transacted on the northern bourse that day.

Source: https://english.thesaigontimes.vn/75416/stock-market-volatility-expected-amid-coronavirus-next-week.html

Business

Vietnamese durian gets more farming area codes for export to China

Published

43 mins ago

June 8, 2023

TienphongNews

China has approved another 47 farming area codes and 18 packaging facility codes for importing durian from Vietnam, according to Ministry of Agriculture and Rural Development.

Vietnamese durian gets more farming area codes for export to China hinh anh 1

Illustrative image (Photo: thanhnien.vn)

Hanoi – China has approved another 47 farming area codes and 18
packaging facility codes for importing durian from Vietnam, according to
Ministry of Agriculture and Rural Development.

Farming area codes enable traceability and thus agricultural exports.

To qualify for export to China, durian need to weigh three kilogrammes or more,
meet stringent safety standards, have traceability stamps in English or Chinese,
and show the name of the packaging facility.

China, the world’s largest durian market, began importing the fruit from Vietnam
last year after approving 51 farming area codes.

The number has since increased to 293 along with 115 packaging facility codes.

According to statistics from the General Department of Customs, durian has been
identified as the fruit with the highest economic value.

Its exports in the first quarter were worth 153 million USD, 8.3 times up from
the same period last year, of which China accounting for 83%.

Dang Phuc Nguyen, general secretary of the Vietnam Fruit Association, said the
fact that more farming area codes and packaging facility codes had been
approved by China was good news for durian growers and exporters.

It would enable Vietnam to increase exports to China, where demand is enormous./.

Source: https://en.vietnamplus.vn/vietnamese-durian-gets-more-farming-area-codes-for-export-to-china/253798.vnp

Business

Vietnam willing to join efforts for CPTPP elevation, IPEF negotiations

Published

2 hours ago

June 8, 2023

TienphongNews

Vietnam is ready to coordinate with other CPTPP member countries in implementing the 2023 rotating chair New Zealand’s initiatives on elevating the deal as a model one of the region and the world, affirmed Minister of Industry and Trade Nguyen Hong Dien.

Vietnam willing to join efforts for CPTPP elevation, IPEF negotiations hinh anh 1

At the Indo-Pacific Economic Framework for Prosperity (IPEF) ministerial meeting in Detroit, Michigan, the US (Photo: VNA)

Washington – Vietnam is ready to coordinate with other CPTPP member countries in implementing the 2023 rotating chair New Zealand’s initiatives on elevating the deal as a model one of the region and the world, affirmed Minister of Industry and Trade Nguyen Hong Dien.

Dien made his remarks while attending the recent ministerial meeting among members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in Detroit, Michigan, the US. Participating countries agreed that it is necessary to continue promoting the effective implementation of the agreement to bring full and practical benefits to people and enterprises, particularly small- and medium-sized ones.

While in Detroit, Dien also attended a meeting of ministers from ASEAN nations joining the Indo-Pacific Economic Framework for Prosperity (IPEF) and the IPEF ministerial meeting.

At these meetings, Dien stated Vietnam will continue to work closely with other IPEF countries, including those from ASEAN to complete basic negotiations of the initiative this year. For the IPEF’s Pillar III of Clean Economy, Vietnam wishes to see more cooperation activities among the ASEAN partners in clean energy production, and the development and transfer of technologies and solutions serving the elimination of greenhouse gases, among others, serving the energy transition of each country.

Lauding efforts by partner nations so far, the minister affirmed Vietnam always supports and is ready for discussion to contribute to the building of practical content suitable to each member’s development conditions.

He also called on participating countries to continue upholding the principles agreed upon from the beginning of negotiations.

On the occasion, the Vietnamese minister met with US Secretary of Commerce Gina Raimondo and Japanese State Minister for Foreign Affairs Yamada Kenji.

Raimondo told Dien that the US is ready to work with Vietnam to discuss some necessary flexible options to ensure that countries respect Vietnam’s legal system and work together on such a basis.

Dien affirmed that Vietnam will work closely with the US and other countries to ensure the overall success of the IPEF. He voice support for the US view of fair commerce, which does not discriminate, cause burden or restrict trade, or harm production and workers. Vietnam commits to continue to actively cooperate with the US to comprehensively address concerns of both nations, thereby maintaining their stable commercial relations, towards a harmonious, sustainable and mutually beneficial trade balance, the minister stated.

Meeting with Yamada, Dien welcomed the three ODA projects worth 61 billion JPY (434.2 million USD) freshly signed between Vietnam and Japan on the sidelines of the 49th G7 summit in Hiroshima. He said room remains extensive for the sides to work together in the fields of energy, food processing, support industries, and material technology.

The Vietnamese Government is committed to ensuring an open and stable business climate for enterprises of the two countries to operate and succeed in Vietnam, he said./.

Source: https://en.vietnamplus.vn/vietnam-willing-to-join-efforts-for-cptpp-elevation-ipef-negotiations/253797.vnp

Business

Cut on automobile registration fees to facilitate auto industry

Published

3 hours ago

June 8, 2023

TienphongNews

The Ministry of Industry and Trade supporting the reduction of automobile registration fees is considered to have a positive effect on the auto industry in the context of the automobile market facing many difficulties.

Cut on automobile registration fees to facilitate auto industry hinh anh 1

Illustrative image (Photo:haxaco.com.vn)

Hanoi – The Ministry of Industry and Trade supporting the
reduction of automobile registration fees is considered to have a positive
effect on the auto industry in the context of the automobile market facing many
difficulties.

A report by the Ministry of Industry and Trade showed that, in the first four
months of 2023, automobile production decreased by 19.3% compared to the same
period last year. Besides, car inventory in recent years has also been quite
high.

Nguyen Ngoc Thanh, Deputy Director of the Department of Industry under the
Ministry of Industry and Trade, said that many reasons greatly affected the
consumption of automotive products such as difficult access to bank capital,
high interest rates, high exchange rates and inflation, leading to high
inventory of auto products in recent years.

According to the Vietnam Automobile Manufacturers Association (VAMA), domestic
car production sharply declined in the first four months of this year. Car sales
were also on a downward trend. This caused concern among many manufacturing
enterprises. In some localities, there might be a deficit in budget revenue,
and workers have lost their jobs.

Sales of the whole market in April 2023 only reached 22,409 vehicles, including
15,748 passenger cars, 6,487 commercial vehicles and 174 special-purpose
vehicles. All segments had a sharp decrease compared to March 2023 such as
passenger cars down 27%, commercial vehicles down 19% and special-purpose vehicles
down 51%.

The cause of this decline is believed to be the cessation of the registration
tax reduction policy. Many domestic automobile enterprises are also facing
fierce competition for market share.

The above difficulties are most clearly reflected in the business results of
the first three months of the automobile enterprises.

Vietnam Engine and Agricultural Machinery Corporation – JSC (VEA) reported a profit
after tax of nearly 1.37 trillion VND (58.3 million USD) in the first quarter,
down 7% over the same period last year.

VEAM’s profits mainly came from joint ventures and associates such as Honda,
Toyota, and Ford. Meanwhile, selling and administrative expenses were almost
unchanged in the first three months of this year.

Not only manufacturers, automobile distributors also recorded a dismal first
quarter of 2023.

Savico (SVC), a distributor of many brands such as Toyota, Ford, Honda,
Hyundai, Mitsubishi, and Volvo, recorded a profit after tax of only 14.7
billion VND, down nearly 85% compared to the same period in 2022, and decreased
more than 11 times compared to the previous quarter. The amount of inventory of
the enterprise exceeded 2 trillion VND.

Haxaco (HAX), which distributes Mercedes-Benz brand cars, also recorded a
revenue decrease of more than 40%, at less than 1 trillion VND. Profit before
tax was only 5.6 trillion VND in the first quarter, down about 92%.

If the Government continues to apply the policy of reducing registration fee by
50% and bank interest rates returning to attractive levels, electric vehicles
can create a breakthrough for the auto industry. In Vietnam, the auto market is
forecast to prosper again. At the same time, according to SSI Research, auto
stocks will attract cash inflows.

In 2022, along with the strong decline of the VN-Index, the market prices of
many auto stocks decreased from 34% to more than 40%.

Since the decree on reducing registration fees took effect on December 1, 2021,
automobile stocks, especially those of big car distribution giants in Vietnam,
skyrocketed significantly.

Specifically, in the session on December 1, 2021, three stocks of HAX, SVC and
VEA gained to near the ceiling prices.

Notably, SVC shares increased to the ceiling continuously, bringing the market
price from 96,000 VND per share to 126,000 VND per share – the historical peak
price – in the morning session of December 7, 2021.

Investors can have faith in auto stocks if the registration tax reduction
policy takes effect again, said SSI Research.

SSI said it was too early to assess the impact of electric vehicles on the
automobile industry in Vietnam. Car manufacturers have just begun to test
electric vehicle sales to gauge consumer interest. Vietnam still does not have
a strategy to develop charging station infrastructure for electric vehicles.
Moreover, the price of electric vehicles is still high compared to petrol
versions.

On the other hand, despite the sluggishness, some car manufacturers, such as
Toyota, still have plans to increase prices. The reason stems from the risk of
global inflation, exchange rate fluctuations, and increased input costs causing
car prices to be higher than previously./.

Source: https://en.vietnamplus.vn/cut-on-automobile-registration-fees-to-facilitate-auto-industry/253793.vnp