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UOB forecasts 6.5 percent GDP growth for Vietnam despite global uncertainty

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12 months ago

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Singaporean-based United Overseas Bank (UOB) maintained its forecast for Vietnam’s gross domestic product (GDP) growth at 6.5 percent this year despite global uncertainty brought about by the conflict in Ukraine and soaring commodity prices.

UOB recently released its report on the economic growth of markets around the world, including Vietnam.

The report pegged its forecast for Vietnam’s GDP growth at 6.5 percent and core inflation rate at 3.7 percent this year.

UOB’s forecast for the country’s GDP growth is in line with the Vietnamese government’s goal of hitting a 6-6.5 percent economic expansion for 2022.

The bank’s report predicted that the country’s GDP growth will reach 7.6 percent in the third quarter of this year.

However, the inflation rate could rise to five percent in 2023 due to various risks and challenges, including the Russia-Ukraine conflict and related sanctions.

One of the optimistic signs of the Vietnamese economy is that foreign direct investment (FDI) inflows into the country increased in May despite the uncertain situation across the world, according to UOB.

Statistics on FDI from the Ministry of Planning and Investment show that in contrast to the decline in newly registered capital, adjusted capital and contributed capital increased sharply in May and continued to be the main pillars of the country’s FDI inflows.

Newly registered capital dropped 53.4 percent over the same period last year, while adjusted capital and contributed capital rose 45.4 percent and 51.6 percent, respectively.

Overall, Vietnam’s registered FDI in the first five months of 2022 only decreased 16.3 percent year on year to US$11.71 billion.

Among the 79 countries and territories investing in Vietnam, Singapore took the lead with nearly $3 billion, followed by South Korea with $2.06 billion and Denmark with $1.32 billion.

Binh Duong Province led the country in terms of FDI attraction with over $2.5 billion, Bac Ninh Province coming in second with $1.65 billion and Ho Chi Minh City at third place with $1.3 billion.

The removal of COVID-19 restrictions and the reopening of international tourism created new driving forces for the service sector, with UOB expecting tourism-dependent areas such as accommodation and food to grow in the second quarter after nine consecutive quarters of decline.

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Source: https://tuoitrenews.vn/news/business/20220623/uob-forecasts-65-percent-gdp-growth-for-vietnam-despite-global-uncertainty/67758.html

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PV Power receives “BB” rating for third consecutive year

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4 mins ago

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June 8, 2023

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Fitch Ratings has affirmed PetroVietnam Power Corporation (PV Power)’s long-term foreign-currency issuer default rating (IDR) at “BB” with a positive outlook.

PV Power receives “BB” rating for third consecutive year hinh anh 1Workers at Ca Mau 1 power plant (Photo: VNA)

Hanoi – Fitch Ratings has affirmed PetroVietnam Power Corporation (PV Power)’s long-term foreign-currency issuer default rating (IDR) at “BB” with a positive outlook.

This is the third consecutive year that PV Power has received “BB” rating with a positive outlook, the highest rating that a Vietnamese company can reach.

The rating, which is based on PV Power’s Standalone Credit Profile (SCP) assessment of “BB”, is on a par with the IDR of its 80% parent, Vietnam Oil and Gas Group (PVN, BB/Positive).

PV Power‘s SCP is driven by its strong market position as Vietnam’s second-largest electricity producer, accounting for around 5% of the country’s total electricity output and 5% of installed capacity in 2022. It also benefits from diversified fuel sources, long-term power-purchase agreements (PPAs) with Vietnam Electricity (EVN, BB/Positive) for more than 80% of its electricity output and a strong financial profile.

However, EVN’s IDR constrains PV Power’s SCP, even though PV Power’s financial profile is stronger than its SCP assessment indicates. The positive outlook is driven by the positive outlook on EVN’s IDR.

The rating is expected to help the firm attract more attention from international credit institutions. Currently, PV Power is investing in many projects with large capital needs such as Nhon Trach 3 & 4 Power Plants and a power project using imported liquefied natural gas (LNG) in Quang Ninh.

As of the end of the first quarter this year, PV Power’s total electricity production had surpassed 4 billion kWh, exceeding its plan by 16%, with a revenue of 7.91 trillion VND (337.04 million USD), 20% higher that its quarterly plan, up 10% year on year./.

Source: https://en.vietnamplus.vn/pv-power-receives-bb-rating-for-third-consecutive-year/253813.vnp

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Vietnam Fisheries Trade Union raises fishermen’s awarness on combatting IUU fishing

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1 hour ago

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June 8, 2023

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Vietnam Fisheries Trade Union (VFTU) on May 29 held a communication event aiming to raise awareness of union members on national sovereignty over seas and islands as well as on the prevention and combat of illegal, unreported and unregulated (IUU) fishing.

Vietnam Fisheries Trade Union raises fishermen's awarness on combatting IUU fishing hinh anh 1To remove the European Commission’s yellow card, it is necessary for ship owners to comply with legal documents on seas and islands while operating at sea. (Photo: nongnghiep.vn)

Khanh Hoa – Vietnam Fisheries Trade Union
(VFTU) on May 29 held a communication event aiming to raise awareness of
union members on national sovereignty over seas and islands as well as on the
prevention and combat of illegal, unreported and unregulated (IUU) fishing.

Participants at the event were updated on the current
situation of the country’s sea and islands, efforts to combat IUU fishing associated with the responsibilities of union members and fishermen towards having the “yellow card” imposed by the European Commission
on Vietnamese fishery products removed.

According to the Vietnam General Confederation of Labour, the
VFTU has 90 chapters in 16 out of 28 coastal provinces and cities, with nearly
18,000 members and over 5,200 fishing vessels of more than 15m in length.

In recent years, the VFTU has been proactive in popularising legal
documents on seas and islands and calling on its members and boat owners to combat
IUU fishing. It has coordinated with relevant agencies in providing national
flags, first aid kits and life vests to fishermen.

Vietnam Fisheries Trade Union raises fishermen's awarness on combatting IUU fishing hinh anh 2At the signing ceremony (Photo: nongnghiep.vn)

The trade union has timely issued statements rejecting the unilateral fishing ban in the East Sea by foreign countries, as well as protesting acts that hinder, drive away, attack and arrest people and property of union members and Vietnamese fishermen.

At the event, the
VFTU signed several cooperation agreements with enterprises such as Son Ha Group, Bao Viet Insurance Corporation and
Minh Hong Phuc Vietnam Co. Ltd. These agreements will create favourable
conditions for union members to access products and services at preferential
prices, thereby helping them feel secure while operating at sea, contributing
to protecting the country’s sovereignty over sea and islands./.

Source: https://en.vietnamplus.vn/vietnam-fisheries-trade-union-raises-fishermens-awarness-on-combatting-iuu-fishing/253811.vnp

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Vietnamese durian gets more farming area codes for export to China

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2 hours ago

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June 8, 2023

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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 1Illustrative 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

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