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VIETNAM BUSINESS NEWS MAY 10

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Businesses advised to stay vigilant to maintain export growth

VIETNAM BUSINESS NEWS MAY 10

Despite a rise in export revenue in the first four months of this year, experts suggested that businesses should not be too optimistic as the COVID-19 pandemic has seen complicated developments both in and outside the country.

Statistics from the Ministry of Industry and Trade (MoIT) showed that export value in April grew 44.9 percent over the same period last year, while that in the first four months of 2021 expanded 28.3 percent year on year to 103.9 billion USD.

The domestic economic sector earned 25.77 billion USD, up 12.8 percent, while the foreign-invested sector, including crude oil, raked in 78.14 billion USD, a rise of 34.4 percent and accounting for 75.2 percent of the total export value in the January-April period.

Tran Thanh Hai, Deputy Director of the Agency of Foreign Trade under the MoIT, said that in the first four months of this year, 19 products enjoyed export turnover of over 1 billion USD, accounting for 84.5 percent of the total export revenue, including five products earning over 5 billion USD.

Exports of agro-forestry-aquatic products reached 2.16 billion USD in April and 8.25 billion USD in the first four months of this year, up 7.9 percent year on year.

Meanwhile, fuel and minerals was the only group that suffered a reduction in export earnings, at 21.6 percent, to 922 million USD.

Hai said that processing sector was a bright spot in export in the first four months of this year with a rise of 31.2 percent to 89.73 billion USD.

Experts held that the export recovery of the majority of products will make important contributions to the country’s export revenue in 2021.

Meanwhile, imports in April reached 27 billion USD, up 43.5 percent year on year, resulting a trade deficit of 1.5 billion USD in the month. The figure in the first four months of this year was 102.61 billion USD, up 30.8 percent year on year, with a trade surplus of 1.29 billion USD.

Hai held that amid the complicated developments of COVID-19, businesses should be aware of changes in the world market to optimise opportunities and maintain the export growth trend.

The official advised exporters to further exploit markets in Africa and Oceania besides those in America and Europe.

It is forecast that import-export activities will continue to be expanded in the future when free trade agreements are being implemented in a comprehensive and effective manner, which will further facilitate Vietnam’s exports to other markets.

At the same time, prices of strong export products of Vietnam are forecast to rise, which will contribute to increasing export value.

However, according to MoIT’s Deputy Minister Do Thang Hai, import-export activities are still facing difficulties from difficult transportation, disrupted supply chains, and unstable market demands, as well as changes in food safety regulations in many markets.

He reminded businesses to continue improving their competitiveness and adaptation capacity to overcome difficulties, while actively reforming to tap new opportunities.

The deputy minister affirmed that in the future, the MoIT will continue to increase activities to support businesses in market expansion, administrative procedures, market information, while expanding trade promotions in online form to boost exports./.

VinFast to temporarily close Australian R&D division due to COVID-19

VinFast is planning to temporarily close its research and development (R&D) centre in Melbourne, Australia due to complications from the COVID-19 pandemic.

According to Australia-based newswire CarAdvice, the Vietnamese car maker will soon close its design and technical office in Port Melbourne after just over a year in the country. The establishment was home to nearly 50 former Holden, Ford, and Toyota engineers.

Responding to queries, VinFast stated that COVID-19 is the main reason behind the closure. The health crisis has hampered travel among the countries and the manufacturer is now looking to summon its strength to develop automobiles in Vietnam while the difficulties last. Employees who worked at the R&D centre will be arranged work in Vietnam.

However, VinFast’s Lang Lang test track in Australia will continue to operate normally.

VinFast in last June poured about $15-20 million to buy the test track and the emission laboratory in the suburbs of Melbourne. Its technical analyst department landed in the nation in December 2019.

Australia is one of the overseas markets VinFast eyes in its global expansion ambitions. According to Nguyen Thi Van Anh, deputy general director of VinFast, in the short term, the company focuses on researching vehicles using internal combustion engines and electric motors in Australia. VIR

Viet Nam needs to invest in processing, packaging of agricultural products: experts

Fruit and vegetable exporters should improve their processing technologies, especially in the post-harvest and packaging stages, to preserve their products longer and enhance their value, experts said.

Statistics from the Ministry of Agriculture and Rural Development show that the value of fruit and vegetable exports in the first quarter were worth US$950 million, a 6.1 per cent rise year-on-year.

Due to the impact of COVID-19, last year exports fell marginally to $3.26 billion.

According to Dang Phuc Nguyen, general secretary of the Viet Nam Vegetables Association, new-generation free trade agreements (FTAs) such as the EU-Viet Nam Free Trade Agreement (EVFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and Regional Comprehensive Economic Partnership (RCEP) are helping Vietnamese businesses increase fruit and vegetable exports this year.

The UK – Viet Nam Free Trade Agreement (UKFTA) effected late last year made more than 94 per cent of vegetables and fruits be exported tax-free, he said.

Many key products such as litchi, longan, rambutan, dragon fruit, and pineapple would benefit since tropical fruits originating from competing countries such as Brazil, Thailand and Malaysia do not have FTAs with the UK, he said.

Experts said to take advantage of opportunities and boost exports, businesses would need to improve the quality of their fruit and vegetable products to meet the standards required by importing markets.

Nguyen Quoc Toan, director general of the General Department for Agricultural Products Processing and Market Development, said post-harvest losses accounted for 10 per cent of rice output, 10-20 per cent of root and tuber crops and 10-30 per cent of fruits and vegetables.

In the Mekong Delta, Viet Nam’s rice bowl, post-harvest losses were worth more than VND3 trillion ($132 million) a year, he said.

The country’s preservation methods were basic and outdated, its transport, storage and cold storage were of poor quality, and there were very few deeply processed products, he said.

Packaging farm products also plays a very important role in preserving them after harvest, but Vietnamese businesses do not pay attention to that, according to experts.

Some 70 per cent of fruit and vegetable exports is to neighbouring China, mostly in fresh and unprocessed forms.

Little goes to South Korea, Japan, the US, or the EU because of storage and post-harvest processing limitations.

HCM City industrial revival well on course

With industrial production recovering month after month HCM City enterprises are confidently resuming investment and restoring production, especially of key industrial products, according to the city Department of Industry and Trade.

The index of industrial production (IIP) went up by 9.7 per cent year-on-year in the first four months of the year, a positive signal at a time when the global economy has been hit by the COVID-19 outbreak, it said.

Bui Ta Hoang Vu, the department’s director, said in April the IIP increased by 3.3 per cent from the preceding month, with manufacturing growing by 2.8 per cent and electricity production and distribution by 25.6 per cent.

A report from the city Statistics Office showed that production in the city’s four key sectors increased by 11.7 per cent year-on-year in April, with electronics output up by 27.7 per cent, mechanical engineering by 17.5 per cent, food and beverages by 7.4 per cent, and pharmaceutical chemicals by 2.4 per cent.

Of tier-2 industrial sectors, 24 out of 30 expanded in April, with wood, bamboo and rattan processing and electrical equipment manufacturing sectors achieving robust growth, it said.

But traditional sectors saw a decline of 4.4 per cent, with leather and leather-based products down by 3.2 per cent and garment production by 12.6 per cent.

The consumption index for the processing and manufacturing sectors increased by 11.9 per cent.

The stockpile index came down for a number of sectors, including by 33.3 per cent for coke and refined petroleum products, 19.7 per cent for motor vehicle manufacturing, and 11.8 per cent for other metal products.

Despite the pandemic and closed borders, the city’s exports managed to grow.

The Statistics Office said the city’s trade increased by 21.3 per cent, as exports rose by 13.9 per cent and imports by 27.7 per cent.

Foreign direct investment is a major driver of import-export growth.

China remained the largest export market for HCM City’s enterprises, buying over US$3.5 billion worth of goods, up 11 per cent, followed by the US, Hong Kong, Japan, and the EU.

Retail sales, services recover

Sales of retail products and services in the first four months of 2021 in HCM City rose by nearly 8 per cent year-on-year.

Revenues from them were worth VND366.2 trillion (US$15.85 billion)

In April alone growth was 23.3 per cent year-on-year.

April saw a large number of promotions during the Hung Kings Memorial Festival (April 21), Reunification Day (April 30) and International Labour Day (May 1), which boosted sales.

With the retail market recovering, many businesses, especially foodstuff and consumer goods companies such as Masan and Kido, saw revenues grow sharply in the first quarter compared to the same period last year.

Companies are now stabilising their production chains and cutting costs besides offering promotions to attract customers and stimulate demand.

The country’s retail products and services sales for the period were worth nearly VND1.7 quadrillion, a 10 per cent increase year-on-year.

Retail sales accounted for nearly 80 per cent of it. 

April’s CPI inches down 0.04 percent

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Vietnam’s consumer price index (CPI) in April was down 0.04 percent against the previous month while up 2.7 percent year on year, according to the General Statistics Office.  

The index in the first four months grew 0.89 percent year-on-year, the lowest growth rate since 2016.

Compared to the previous month, a downturn was seen in the prices of four out of 11 main groups of goods and services, with housing and construction materials taking the lead (0.43 percent), followed by post and telecommunication services; food and catering services, among others.

The General Statistics Office’s Price Statistics Department attributed the CPI price rise in the first four months to a hike in domestic and export prices of rice as well as the higher demand for the grain for the Lunar New Year (Tet) festival.

The core inflation rates in April and the first four months of 2021 compared to the same periods last year were the lowest in the past five years./.

E-commerce brings Vietnamese agricultural products to global market 

Many Vietnamese small and medium enterprises are using e-commerce platforms to seek outlet for their products.

Chilica, a Vietnamese brand name of chili sauce and fermented ground chili, has become a familiar product of many Vietnamese families and those in many foreign countries over the world after nearly one year of being sold via e-commerce transactions.  

In early 2020, Tomcare’s Director Nguyen Thanh Hien had to cancel the launch of the new product due to the Covid-19 outbreak. He then promoted and sold it on leading e-commerce platforms such as Tiki, Sendo, Lazada, Shopee. His efforts were paid off.

After promoting on the e-commerce sites in a few months, Chilica had its distributors in all provinces. Currently, this brand is found on the shelves of modern supermarkets such as Aeon Mall, Co. op Mart, and Satra, and being exported to Australia. 

Furthermore, Tomcare Bio Tech Co., Ltd will sell products on  Amazon in the coming months. “Through this channel, Chilica not only engages consumers in the US but also in many other countries in the world,” Hien told Hanoitimes. 

Chilica was one of the many small and medium enterprises using e-commerce platforms to seek outlets for their products. 

To expand customer network, the sachi nut business owned by Do Thi Kim Thong also decided to sell online. “Compared with traditional retail channels, sales on e-commerce floors have doubled in recent time,” said Do Thi Kim Thong, Chairman of Kim Thong Trade, Tourism, Import-Export Cooperatives said. 

Like Hien and Thong, Tran Dinh Trong, Director of the Eatu Fair Agricultural Service Cooperative in Buon Me Thuot city in the Central Highlands province of Dao Lak, learned e-commerce sale techniques. She expected growth in sales and awareness of coffee products will increase through online platforms compared to traditional channels in the coming time. 

“The quality of coffee is very good, but since it is sold through many intermediate channels, we don’t earn much profit. Through this e-commerce platforms, we believe more customers will understand our coffee, and our profit margin would increase,” she said. 

Before the pandemic period, the item has not been popular on e-commerce channel. But now the situation is changing.  

Due to the impact of the Covid-19 epidemic, online shopping is increasingly popular and an inevitable trend for the future.

Selling farm produce on e-commerce sites is a solution that local manufacturers and businesses have turned to in recent times in order to boost sales as well as the process of digital transformation, according to Dang Hoang Hai, Director of the Vietnam e-Commerce and Digital Economy Agency (iDEA) under the Ministry of Industry and Trade. 

Since April 2020, Lazada has seen the opening of thousands of food and agricultural stores on the e-commerce site. Over the past six months, daily sales of fresh and processed food have grown enormously, especially during the year’s major shopping festivals, a representative from Lazada to Hanoitimes said.

Accelerating distribution channel via e-commerce 

Recently, the iDEA shaking hands with leading e-commerce platforms have supported Vietnamese manufacturers to distribute goods via the online shopping channel, called the Vietnamese online booth.  

The online booth also required local manufacturers to meet national standards in terms of quality, traceability and safety, so as to increase customers’ trust on products sold online. Many of them have opportunities to learn and build digital transformation plans, as well as operate on the e-commerce site amid the Covid-19 pandemic.  

The iDEA will expand the cooperation with other e-commerce floors to promote Vietnamese products in the domestic and international markets in the coming time, Hai said. 

Lazada’s representative said that the e-commerce floor will continue to expand cooperation with vendors and brands across the country to diversify supplies for customers. “The core issue is that the products need a reliable brand and a clear origin,” he said. “When customers receive the best quality products, they will shop on the online platforms more often.”

Hai Duong lychee to be sold on e-commerce sites 

Hai Duong lychee brand has recently conquered many tough markets such as the US, Australia, EU, Japan, and Singapore.

Thieu lychee under the One Commune One Product Program (OCOP) in the northern province of Hai Duong will be sold on Vietnam’s leading e-commerce sites from May 18. 

This is the first time Hai Duong farmers to sell their lychee online via Alibaba.com, Voso.vn, Sendo.vn and Lazada.vn.

Traceability is a mandatory requirement for agricultural products to be sold on the e-commerce platform, said Nguyen Thi Minh Thuy, Director of the VTPA’s Information Technology Application Center.  

To bring products to e-commerce, the Hai Duong Department of Agriculture and Rural Development in coordination with the Vietnam Trade Promotion Agency (VTPA) has recently organized a training program on traceability and promotion activities on the e-commerce platforms.  

The training course draw 100 participants who are manufacturers of OCOP-labeled products and members of the Agricultural Service Cooperative. Through the course, they will be taught on techniques to improve the product quality and boost sale via e-commerce.

 It’s reported that Hai Duong’s agricultural products are plentiful but the farmers are still struggling to sell because they depend on traditional channels, which are unstable.  

Hai Duong lychee brand has recently conquered many tough markets such as the US, Australia, EU, Japan, and Singapore. 

Hai Duong has been growing lychee in more than 9,000ha with an estimated production of 55,000 tons per year. Around 40% of the province’s litchi output is sold in the domestic market, and 5% for export. 

Despite the Covid-19 pandemic, the province had a successful litchi crop with an estimated volume of 43,000 tons in 2020. The total value reached a record of over VND1.1 trillion (US$47.5 million), up nearly 50% against 2019.

Hai Duong province to develop 10 – 15 more industrial parks

Hai Duong is planning to develop an additional 10 – 15 industrial parks (IPs) with the total area of about 5,000ha so that this northern province will become a truly attractive destination for investors, according to a provincial leader.

Secretary of the provincial Party Committee and Chairman of the provincial People’s Council Pham Xuan Thang told a recent meeting that Hai Duong always stands side by side with businesses and will create the best possible conditions for investors in IP infrastructure to build facilities and attract secondary investors, thus generating practical economic benefits for businesses and the province.

At the event, local leaders handed over the Prime Minister’s approval of investment intention to investors in four IPs and the provincial People’s Committee’s decisions to set up four others.

The Prime Minister has so far approved 18 IPs covering 3,517ha of land in Hai Duong, 14 of which have been estabished with the total area of 2,567ha.

Among the 14 established parks, 11 that cover 1,732ha of land have had their infrastructure completed with an average occupancy rate of 82 percent. They are accommodating more than 300 projects from 21 countries and territories, including 235 FDI projects worth over 4.7 billion USD and 64 Vietnamese projects worth some 17.67 trillion VND (772 million USD). Those projects have created jobs for more than 108,000 people and contributed 1.7 trillion VND to the budget annually.

Thang said that apart from developing IPs, Hai Duong will also step up investment promotion, strongly improve its business climate and Provincial Competitiveness Index, and attract investment in a more selective manner./.

ADB proposes ending funding for coal power plants

The Asian Development Bank (ADB) will stop financing new coal power plants, the main source of power supply in developing countries, under a draft energy policy released earlier this week.

The ADB, which provides loans and grants for projects in the poorest countries in the Asia Pacific region, said its current policy was “no longer adequately aligned with the global consensus on climate change”.

“Coal and other fossil fuels have played a large part in ensuring access to energy for the region’s economic development, but they have not solved the energy access challenge, and their use harms the environment and accelerates climate change,” the Manila-based bank said in the document.

The lender will also no longer fund “any coal mining, oil and natural gas field exploration, drilling or extraction activities”, the document said.

However, under certain conditions, it would provide funds for natural gas projects and “hybrid electricity solutions” involving fossil fuels as backup systems, according to the draft.

Between 2009 and 2019 the ADB funnelled 42.5 billion USD into energy sector projects in Asia, where around 60 percent of electricity is generated by coal, its data show.

The final version of the energy policy is expected to be submitted to the ADB board of directors by October./.

Vietnam’s upholstered furniture subject to Canadian anti-dumping duties

Certain upholstered domestic seating originating from Vietnam and China now is subject to anti-dumping duties in Canada, according to the Ministry of Industry and Trade’s Trade Remedies Authority of Vietnam (TRAV).

Citing a preliminary determination of dumping released by the Canada Border Services Agency (CBSA) earlier this week, the TRAV said provisional duties will be collected on the subject goods that are released from customs on or after May 5, 2021.

Estimated amount of subsidy has been decided to be 0 percent for seven Vietnamese manufacturers, including Delancey Street Furniture Vietnam, Timberland, Motomotion Vietnam, UE Vietnam, Vietnam Hang Phong Furniture, Wendelbo Interiors A/S and Wendelbo SEA, and 11.73 percent for all other exporters in the country.

The seven producers will receive separate anti-dumping duty rates ranging from 17.44 percent to 89.77 percent while all others get 101.5 percent.

The CBSA is requesting Vietnamese manufacturers to answer additional questions for the final determination.

The TRAV has urged the concerned exporters to keep a close watch on the case and fully cooperate with the CBSA during its investigation. They must also closely coordinate with the TRAV to receive timely support./.

SBV allows rescheduling of debt repayments for borrowers

The State Bank of Vietnam (SBV) has told financial institutions to reschedule debt repayments to help customers affected by the COVID-19 pandemic.

Under Circular No 03/2021/TT-NHNN dated April 2, 2021, the central bank gives permission to financial institutions to reschedule debts with repayment obligations incurred from January 23, 2020 to the end of this year.

The time to restructure repayments is not to exceed 12 months from the day financial institutions begin the process.

The circular allows commercial banks and other financial institutions to keep the debt classification for COVID-19 borrowers unchanged.

Experts from the VNDIRECT Securities Corporation said the amount of restructured debts may increase but will not have a critical impact on banks’ return on assets.

According to the SBV’s figures, as of mid-November 2020, repayments on more than 341.8 trillion VND (14.83 billion USD) worth of outstanding debt had been rescheduled. 

Secretary General of the Vietnam Banks Association Nguyen Quoc Hung said that the circular will help financial institutions handle the challenges that come with restructuring debts, adjusting payment terms, and reducing or exempting interest rates in a sensible fashion.

Circular No 03 amends and supplements a number of articles in Circular No 01/2020/TT-NHNN dated March 13, 2020./.

Bac Ninh’s IPs strive to realise dual goals

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The fourth outbreak of COVID-19 in Vietnam has had a negative impact on socio-economic development in pandemic-hit localities. In order to continue to successfully carry out the “dual goals” of maintaining effective production while combating the pandemic, the northern province of Bac Ninh has strengthened measures to ensure safety at its industrial parks.  

These are the compulsory regulations of one enterprise at the Thuan Thanh II Industrial Park in Thuan Thanh district, Bac Ninh province. All workers entering the company’s grounds must wear a face mask, have their temperature checked, and wash their hands with sanitiser.

Workers must also keep a safe distance from each other.

The TalWay Vietnam Company Limited at the Que Vo Industrial Park started operations in 2019 and was then heavily affected by COVID-19 throughout 2020. It developed a specific strategy of exploiting its stronger products to achieve its targets for this year.

Bac Ninh has 10 industrial zones with more than 300,000 workers, and most businesses have maintained production and strictly followed regulations on COVID-19 prevention and control./.

Steel sector making rapid strides forward

Vietnam’s steel sector has witnessed strong development in terms of capacity, output, and products in the recent past.

Data from the Vietnam Steel Association (VSA) shows that steel billet output surged 40-fold to surpass 12 million tonnes in 2015 from just 300,000 tonnes in 2000.

Meanwhile, output of finished steel products hit more than 26 million tonnes in 2015, growing over ten-fold since 2000.

Product diversification also helps Vietnam’s steel sector make great strides forward in the region and have a more important role to play in the international arena.

The country will switch to electric arc furnaces from the current blast furnaces, according to steel expert Nguyen Van Sua.

Another point of note in domestic steel development is the scale of projects. Since 2004, world-calibre projects have been built by firms such as Hung Nghiep Formosa Ha Tinh and the Hoa Phat Group.

Deputy Director of the Hoa Phat Dung Quat Integrated Complex, Dinh Van Chung, said its hot-rolled coil (HRC) has been in constant demand.

Hoa Phat will invest in another project with a capacity of 5 million tonnes a year at Dung Quat by early 2022, which will primarily be involved in HRC production and will use modern technology, he added.

Vietnam is likely to develop special-purpose steel in the time to come.

VSA President Nghiem Xuan Da underlined that steel companies must keep a close eye on the market and enhance their competitive edge to promptly make adjustments and sustain long-term development.

The State also needs to devise suitable strategies for the sector, towards guiding companies to invest more in technology./.

Disbursement of State-funded public investment in April at record since 2017

The disbursement of public investment sourced from the State budget in April was estimated at 30.4 trillion VND (1.32 billion USD), a year-on-year surge of 23.9 percent, and reaching the highest monthly level since 2017, according to the General Statistics Office.

During January-April, 98.7 trillion VND worth of investment from the State budget was disbursed, accounting for 21.5 percent of the annual plan, and rising 16.3 percent from the same time in 2020.

Of the total figure, 15.1 trillion VND was disbursed by central agencies, or 19.6 percent of the yearly plan, and up 25.5 percent year-on-year. The remainder was disbursed by localities, making up 21.9 percent of the plan, and rising 14.8 percent.

Meanwhile, the amount of public investment capital disbursed in the four-month period reached more than 86 trillion VND, or 18.65 percent of the plan assigned by the Prime Minister. The rate of disbursement of domestic capital was 20.74 percent and foreign capital – 2.02 percent, much lower than the same period last year.

Localities and sector with high disbursement rate were Thai Binh province (76.74 percent), Ha Nam province (50.57 percent), the State Audit (46.89 percent), Hung Yen province (43.21 percent), Thanh Hoa province (42.39 percent), and Quang Ninh province (39.62 percent).

Earlier this year, Minister of Planning and Investment Nguyen Chi Dung said public investment would focus on key national projects with important roles in enhancing regional links and creating new drivers and room for economic growth.

Last year saw the highest public investment disbursement rate in 2016-2020 as the Government identified public investment as a major driver for growth in the context of the COVID-19 pandemic./.

Vietnam maps out plan to develop collective economy, cooperatives

The Ministry of Planning and Investment (MoPI) has submitted a plan on developing the collective economy and cooperatives for the 2021-2025 period to the Prime Minister for approval.

The plan is part of efforts to carry out the strategy on developing the collective economy and cooperatives for the 2021-2030 period, thus laying a ground for ministries, agencies and localities to devise annual programmes and schemes in fields under their management.

It comprises goals, development orientations, measures, costs and ways of implementation.

The MoPI’s Agency for Cooperative Development said amid the global integration era in the next decade, cooperatives enjoy many chances to access new technologies, attract foreign investment, especially from major partners in farm produce processing and export.

However, they will face increasingly intense competition both at home and abroad due to climate change, growing population, and rapid urbanisation which fuel stronger demand for safe and quality products.

In order to develop the collective economy and cooperatives sustainably, the agency suggested raising public awareness and their role and position in the new situation.

According to the agency, there were over 26,000 cooperatives nationwide last year, with 6.1 million members. Up to 100 cooperative alliances group more than 630 cooperatives and over 119,000 cooperative groups with about 1.6 million members.

Due to small scale and uneven development among regions, their growth remained low and contributions to the country’s gross domestic product fail to meet demand.

Linkages between collective economic entities and cooperatives, and other economic sectors remains weak while coordination among State management agencies, socio-political and mass organisations in the effort is limited and ineffective/.

Vietnamese firms’ overseas investment surges in first four months

Vietnamese firms invested 545.9 million USD in overseas projects in the first four months of 2021, a year-on-year rise of 7.9-fold, according to the Ministry of Planning and Investment.

There were 18 new projects receiving investment certificates with total registered capital worth 142.8 million USD, up 2.7-fold against the same period last year.

In addition, 403.2 million USD was pumped into nine existing projects, surging 25.5-fold.

A major part of the capital outflow – 270.8 million USD – was poured into science-technology projects, accounting for 19.6 percent of the total figure. Wholesale and retails followed with 147.8 million USD.

The US was the top destination for Vietnamese capital in the period with 302.3 million USD, holding a lion’s share of 55.4 percent.

Cambodia came second with 89.1 million USD, followed by France, Canada, Germany and the Netherlands.

As of April 20, Vietnam had 1,417 valid overseas projects totaling 21.8 billion USD, mainly in the sectors of mining (36 percent of total capital) and agro-forestry-fisheries./.

VIETNAM BUSINESS NEWS MAY 10

Hanoi boosts sale of rural products

With many craft villages and a huge amount of products qualified for the One Commune One Product (OCOP) programme, Hanoi has many strengths in rural economic development.

To increase the products’ value and boost exports, the city will adopt a number of solutions to facilitate sales of OCOP and craft products.

According to Nguyen Van Chi, head of Hanoi’s Rural Development Division under the municipal Department of Agriculture and Rural Development, the city has more than 1,300 craft villages, 5,000 agricultural products tagged with QR codes and 1,054 OCOP products.

The products are diverse in design and type and are of good quality. Many of them have been exported to large markets such as the US, Japan, the EU and Russia, namely garment and ceramic products, textile and embroidery and wooden furniture.

“Hanoi has focused on connecting with provinces and cities across the country and building product value chains to promote trade to enhance the products’ value and promote exports,” Chi said.

Nguyen Thi Kim Loan, Vice Chairman of the Thach That District People’s Committee, said the district plans to set up cooperatives to act as focal points for cooperation with firms in the sale of products because domestic and foreign enterprises can’t sign contracts with each household.

In addition, coordination from businesses and distributors was essential to provide information on consumption trends to help locals produce handicraft and OCOP products that meet market demands, she said.

Nguyen Trung Thanh, an artisan from Bat Trang ceramics village in Gia Lam district, said besides quality and design, it was necessary to show the cultural value contained in each product to satisfy the demand of foreign customers.

Tran Thi Phuong Lan, Acting Director of Hanoi’s Department of Industry and Trade, said together with craft and OCOP product development, the city focused on trade promotion activities.

Last year, Hanoi held four events to promote the trade of OCOP products associated with the culture of regions across the country. The events attracted large numbers of foreigners who live and work in Hanoi.

In the future, the department would continue to support businesses, co-operatives and households to promote products consumption through fairs, conferences and trade connection activities, Lan said.

She also said on April 28, the Hanoi Department of Industry and Trade in collaboration with the Department of E-Commerce and Digital Economy under the Ministry of Industry and Trade and Amazon Global Selling held a seminar on exporting Vietnamese goods to the world with Amazon.

Facilitating Vietnam’s development of cross-border e-commerce were among issues discussed at the seminar.

“Given the complex development of the COVID-19 pandemic, cross-border commerce is becoming an indispensable tool for enterprises to expand their business and export handicraft and OCOP products,” Lan said.

Deputy Director of the Hanoi Investment, Trade and Tourism Promotion Centre Nguyen Thi Mai Anh, said this year the centre would work with five districts in the city to train producers about trade promotion for OCOP products, equipping them with more skills in marketing and selling products at home and abroad.

Nguyen Ngoc Son, Deputy Director of the municipal Department of Agriculture and Rural Development, said the city recently issued a plan on rural development in 2021.

Under the plan, the city would assist 10 craft villages in building and registering collective trademarks and provide financial support for 5-10 rural development projects.

Special attention would be paid to strengthening links for product consumption, he said.

Hanoi aims to evaluate and classify at least 2,000 OCOP products by 2025. To obtain the goal, the city needs to boost information dissemination and urge broader participation.

In accordance with Plan No 42 on the development of OCOP showrooms associated with craft village tourism in Hanoi this year, the city will set up 30-40 new showrooms displaying and selling OCOP products. Each district and town will have at least two OCOP showrooms.

The municipal People’s Committee will ask agencies and localities to inspect and supervise the operation of OCOP showrooms and organise promotional programs to enhance the consumption of quality products, including those from cities and provinces nationwide.

The city so far has 630 OCOP products with a three-star rating and above, exceeding the target of having at least 500 OCOP products./.

Local enterprises must deal with challenges in FTA implementation

Vietnamese enterprises need to be proactive in terms of gaining knowledge of incentives, whilst simultaneously managing themselves in order to deal with gaps and weaknesses occurring in the implementation of free trade agreements (FTAs), according to economic experts.

The negotiation, signing, and implementation of a series of FTAs in recent years has offered positive conditions for local firms to promote their exports and connections, whilst enjoying deeper participation in the global value chain and production network.

In the context of the novel coronavirus (COVID-19) pandemic both last year and in the early months of this year, FTAs have increasingly emerged as a bright spot in the overall picture of the nation’s economic growth.

The Ministry of Industry and Trade reports that as of April, authorised agencies and organisations have issued more than 127,296 sets of C/O form EUR.1 (Certificate of Origin), with a turnover of more than US$4.78 billion to 27 EU countries. In addition, enterprises exporting goods to the EU market also self-certify the origin for roughly 3,585 consignments worth over US$10.88 million in order to enjoy tariff preferences in line with the EU-Vietnam Free Trade Agreement (EVFTA).

Tran Thanh Hai, deputy director of the Import and Export Department under the Ministry of Industry and Trade (MoIT), says that goods with C/O form EUR.1 mainly consist of footwear, seafood, garments and textiles, agricultural products, and products such as cereals and electronics. Import markets are mostly based in countries that have seaports, distribution hubs, and transshipment centres within the EU, such as Belgium, Germany, the Netherlands, and France.

Alongside the EVFTA, the Regional Comprehensive Economic Partnership (RCEP) will cover a vast market with 2.2 billion consumers, thereby accounting for approximately 30% of global GDP and being the largest free trade area in the world.

Furthermore, the UK-Vietnam Free Trade Agreement (UKVFTA) also appears to have shown many positive signs in recent times, with Vietnamese exports to the UK during the first half of the year increasing by 22.1% over the same period from last year.

In terms of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), in just two years since the implementation of the deal, trade turnover between the nation and the other 10 CPTPP countries has reached US$77.4 and US$78.2 billion, up by 3.9% and 5%, respectively compared to 2018.

Nguyen Thi Cam Trang, deputy director of the Import and Export Department under the Ministry of Industry and Trade, says that in the context of almost all CPTPP partners reducing imports, the country has still achieved growth which indicates that the CPTPP has been creating a range of positive effects.

There is no denying that participating in new generation FTAs is benefiting the nation in terms of tariff reduction. However, the implementation of these trade deals also poses numerous challenges to many industries, especially in relation to quality and standards.

Nguyen Khanh Ngoc, deputy director of the Europe – America Market Department under the MoIT, commented that FTAs are also contributing to increasing competition pressure for the national economy and local enterprises. This thereby requires local businesses to comply with high standards of rules as a means of taking full advantage of opportunities and limit commercial disputes.

“Non-tariff barriers to imported goods in the markets of FTA participating countries with Vietnam will tend to increase with the high trend of protection and application of technical, labor and protection standards.  This is seen as a big challenge for businesses, affecting the ability to capitalize on tariffs,” Ngoc states.

Various economic experts believe that in order to make the most of opportunities from FTAs and to minimise the challenges faced, domestic businesses need to be proactive in grasping the advantages that FTAs bring, whilst also dealing with their “holes” and weakness.

To increase opportunities enjoyed by Vietnamese businesses to expand their export markets through the CPTPP, Do Thi Thu Huong, Vietnam Trade Counselor in Canada, notes that local firms must be more proactive in terms of grasping the advantages in the framework of the trade deal. In particular, import tax incentives can have a direct impact on the price mechanism between both buyers and sellers, therefore it can be considered as a basis for negotiation with partners.

“The rules of origin in the CPTPP are new and very complicated, so local businesses need to invest human resources to learn the rules and procedures to prove the origin to be able to enjoy tax incentives. Besides, management agencies should promote more online tools, organise seminars and instructions in each field and industry so that businesses can learn and seek useful information,” Huong adds.

Vĩnh Long follows safe-tourism criteria

The Cửu Long (Mekong) Delta province of Vĩnh Long’s Department of Culture, Sports and Tourism has released safe tourism criteria to ensure control and prevention of COVID-19.

Tourist agencies must strictly follow the Ministry of Health’s 5K messages to wear masks, frequently disinfect hands, keep a safe distance, refrain from gatherings, and make health declarations to all visitors.

The department has also encouraged tourist agencies and tourism service suppliers to offer new promotions.

Nguyễn Trọng Tín, head of the tourism management office of the department, said the province has asked every tourism business to implement safety criteria, and regularly self-assess COVID-19 prevention and control requirements.

The businesses must monitor customers’ daily health and notify medical facilities and local authorities when detecting a suspected case of SARS-CoV-2 infection.

The department has sent a group of investigators to check the COVID-19 prevention and control measures at accommodations, tourism areas and service suppliers. Measures include temperature measuring devices, medical masks, hand sanitisers and health declaration.

Vĩnh Long is known for special tourism products in four groups: homestays and ecological tours to fruit gardens, tours to understand local cultural figures, agriculture tours, and tours to handicraft villages.

The province now has nearly 100 homestays, guesthouses and hotels and 40 tourism areas, mostly located in Long Hồ District.

It has 25 standard homestays, two of which reached the ASEAN homestay standard in the 2017-2019 and 2019-2021 periods.

With a dense system of canals and rivers and rich gardens of tropical fruits, the province has 50 gardens offering snacks, meals and fruits like custard apple, dragon fruit, grapefruit and rambutan.

It also hosts 44 provincial level historical-cultural sites and 11 national level sites, and 25 handicraft villages making rattanware, leaf weaving, rice crepes, ceramics, and forging metals.

Phạm Thị Ngọc Trinh, owner of Út Trinh Homestay in Long Hồ District, said the homestay has several activities interacting with local culture to attract more visitors after the effects of COVID-19.

The homestay offers cooking classes of special dishes in the region, traditional games, and tours to handicraft villages that attract a large number of visitors every weekend.

The facility is also organising classical drama shows, allowing tourists to enjoy the performance and meet with artists and learn how to act and do make-up for a performance.

Trinh said although the homestay welcomes a large number of visitors on weekends and holidays, they take all preventive measures.

According to the province’s Department of Culture, Sports and Tourism, Vĩnh Long’s tourism sector has revived this year despite facing difficulties caused by COVID-19.

The number of visitors reached more than 240,000 in the first four months of this year, including 9,000 visitors during the Reunification Day and International Labour Day holiday from April 30 to May 3.

The tourism sector earned around VNĐ122 billion (US$5.25 million), including VNĐ5.6 billion ($240,800) from the holiday.

Increase in Viet Nam – Belgium trade brings more opportunities for investors: experts

The vietnam-briefing.com published by Dezan Shira & Associates – a consultancy firm on foreign investment in Asia – has run an article, emphasising that since the EU-Viet Nam Free Trade Agreement (EVFTA) took effect in August 2020, Belgium has played a significant role in promoting trade and foreign investment into Viet Nam.

According to the article, major sectors that Belgian investors have particularly shown interest in are industrial zones, food and beverage, processing and manufacturing, pharmaceutical, and renewable energy.

It notes that with increasing trade and investment between Belgium and Viet Nam, Belgian investors have opportunities to invest in Vietnamese industries, favouring the economic and political landscape between the two countries.

Over the past decade, trade and investment relations between Viet Nam and Belgium have improved considerably. This has been attributed to Viet Nam’s growing economy and the expansion and globalisation of some Belgian corporations.

The article quotes Riccardo Benussi, Head of European Business Development of Dezan Shira & Associates, saying that more Belgian companies are looking to invest in Viet Nam, especially with the implementation of the EVFTA and subsequent reduced tariffs.

As of March 2021, Belgium has 78 investment projects in Viet Nam, with a total registered capital of US$1.1 billion, ranking 23rd among 131 countries and territories investing in Viet Nam.

Viet Nam is Belgium’s 14th largest trade partner, with a trade value reaching approximately $707.55 million in 2020, up 6.7 per cent compared to 2019.

In the first seven months of 2020, due to the COVID-19 pandemic, Viet Nam’s export value to Belgium totalled $1.4 billion, down 17.7 per cent year-on-year. Viet Nam imported $459 million worth of goods from Belgium, up 11.9 per cent year on year.

The article says these figures demonstrate that while Vietnamese exports to Belgium experienced a depression, Belgium’s exports to Viet Nam still grew, which is a positive signal for the future of bilateral trade between the two countries.

In 2019, within the EU, Belgium was the seventh-largest exporter to Viet Nam and the sixth largest in 2018. Belgium’s top exports to Viet Nam in 2020 were chemicals (46.2 per cent), and machinery and equipment (13.7 per cent). Meanwhile, Viet Nam’s top exports to Belgium were textiles, footwear and headgear, and base metals.

The most substantial Belgium investment in Viet Nam is the development and operation of an industrial park cluster known as the Deep C Industrial Zone (initially named the Dinh Vu Industrial Zone – DVIZ).

Geert Dom, Head of Marketing & Sales for DEEP C Europe and the US, said that DEEP C had attracted over 130 projects with foreign investors of different nationalities such as Belgium, Germany, Japan, the Republic of Korea, the US, and Singapore. Looking towards the future, DEEP C would still be attracting more Belgian and other investors to do business and establish factories and warehouses in this industrial zone.

Meanwhile, Filippo Bortoletti, Senior Manager for Dezan Shira’s Ha Noi Office, noted that apart from industrial zones, Belgian investors also played a significant role in the Vietnamese food and beverage (F&B) industry.

Belgium investments were focused on the supply chain of the industry, catering ingredients to restaurants, F&B factories, and retail, he said.

Viet Nam’s manufacturing and processing industry also proves to be a prospective investment sector for Belgium corporations. Over the years, most of the investments that Belgian investors have made in Viet Nam are in seaports, infrastructure, real estate, manufacturing, and power generation.

Pharmaceuticals is also a significant sector for foreign investment in Viet Nam. Most EU investors source raw pharmaceutical materials from the EU, ship them to Viet Nam, manufacture and process the products in Viet Nam before they re-export the products back to the EU.

Thanks to the EVFTA, about 71 per cent of import tariffs have been eliminated. Moreover, non-tariff barriers also brought opportunities in improving intellectual property rights and direct pharmaceutical imports. This means that Belgian investors can establish an entity to import pharmaceutical products and sell to local distributors or wholesalers. In addition, Belgian investors are also eligible to build warehouses and perform clinical research and trials, the article said.

The article also notes that Viet Nam is an attractive investment destination for green energy production projects, and it is predicted that many foreign investors, especially those from the EU, will continue to establish and expand their businesses in this sector in the country.

The increase in bilateral trade between Belgium and Viet Nam, as well as the increasing FDI from Belgium, demonstrate bright prospects for the two countries’ relations, it says, adding that the long-term presence and successful investment of Belgian companies in Viet Nam offer a good indication and reference for business opportunities in the country.

US firms interested in Vietnamese supply chain

A new report has found 43 per cent of US-based respondent companies cited Viet Nam among their top three buying geographies as of early 2021, doubled from 2019, according to the Q1 2021 report from QIMA, a US provider of supply chain compliance solutions.

The report surveyed more than 700 businesses with international supply chains.

The data shows a 16 per cent year-on-year increase in demand for inspections and audits in Viet Nam in the first quarter of this year, which represents a third consecutive quarter of growth that had initially begun as a post-lockdown rebound in mid-2020, the article cited a report from QIMA, a provider of supply chain compliance solutions.

This growth is more than just a return to pre-pandemic levels, as Q1 2021 inspection demand has, on average, doubled compared to Q1 2019.

The appetite for Viet Nam sourcing is far from satisfied and is poised to redefine the sourcing landscape in 2021: around a third of buyers globally and 38 percent of US-based buyers name it among countries from where they plan to buy more in 2021.

The website says Viet Nam was not the only country in the region to benefit from expanded business volumes, as data on inspection and audits demand in Southeast Asia show double-digit growth across the board, fueled by the renewed interest from American and European brands alike. 

Source: VNA/VNS/VOV/VIR/SGT/Nhan Dan/Hanoitimes

Source: https://vietnamnet.vn/en/business/vietnam-business-news-may-10-734362.html

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Private enterprises lack internal strength and driving force to develop

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How will Vietnam overcome challenges to realize its development plans? Nguyen Dinh Cung, former head of Central Institute for Economic Management (CIEM), shares his perspective with VietNamNet.

Private enterprises lack internal strength and driving force to develop

One of the great successes of economic reform in Vietnam since doi moi (renovation) is the establishment of a community of businesses from different economic sectors with many ownership modes. Vietnamese enterprises are operating under similar legal forms as in other market economies.

High in quantity, small in scale

In terms of quantity, enterprises in the private sector account for the overwhelming proportion, 97 percent, while SOEs (state owned enterprises) account for 0.38 percent and FIEs the remaining.

The enterprises employ 16 million workers. The workers in SOEs account for 7 percent, private enterprises nearly 60 percent and 33 percent in FIEs (foreign invested enterprises).

In terms of total assets, SOEs account for 28 percent, private enterprises 53 percent and FIEs 29 percent.

In terms of stockholder equity, SOEs account for 20 percent, non-state owned enterprises 56 percent and FIEs 24 percent.

In terms of net revenue, SOEs account for 14.5 percent, non-state owned 57 percent and FIEs 28.5 percent.

In terms of pre-tax profit, SOEs account for 21 percent. The figures are 36 percent for non-state owned enterprises and 43 percent for FIEs.

If considering financial efficiency, the ROE (return on equity) is 9 percent for SOEs, 4.5 percent for non-state owned enterprises and 15 percent for FIEs. Meanwhile, the profit to sale ratio is 5.6 percent for SOEs and FIEs, while it is just 2.4 percent for non-state enterprises.

The figures show that while private enterprises account for the overwhelming proportion, they mostly have small and micro scale, with very few enterprises having medium scale. They have low technology and low competitiveness.

Lacking inner strength and driving force to develop

This is attributed to several reasons:

First, the ratio of profit to revenue and to assets is too low. Stockholder equity is not high enough for re-investment and development. Therefore, most private enterprises have to rely on working capital from relatives and friends. Only a small part of the enterprises can access bank loans.

Most private enterprises lack capability to innovate and receive technology transfer, and lack the driving force to research, develop and renovate technology. In other words, private enterprises lack inner strength and motivation for development.

Second, one part of private enterprises doesn’t want to expand investment to become large enterprises.

This is attributed to unclear and overlapping laws which can be understood and implemented in different ways by different state management agencies. The bigger that enterprises become and the more business fields they cover, the higher legal risks they face, which may cause big losses or loss of all of their assets that had been created over decades.

While private enterprises account for the overwhelming proportion, they mostly have small and micro scale, with very few enterprises having medium scale. They have low technology and low competitiveness.

In this situation, there is no reliable and effective tool and institution, especially independent courts, capable of protecting their rights and benefits.

Third, another part of private enterprises wants to grow but cannot, because they cannot access resources for investment and development. Surveys have found that capital costs are too high. The inability to get enough capital and access land are the big barriers for private enterprises in this group.

Fourth, some of the hundreds of thousands of private enterprises are crony enterprises. The number of these enterprises is not high if compared with the total number of operating enterprises, but they appropriate significant resources and deprive business opportunities from authentic investors and businesses.

The enterprises of this kind contribute to creating an unfair business environment which lacks transparency; distort the allocation of national resources; and distort the value and constrict the business motivation of genuine businesses.

It is the enterprises of this kind that make it difficult for other enterprises to access resources and business opportunities. This is a major obstacle for the development of private enterprises.

Large private groups vulnerable

Vietnam now has some large-scale private enterprises, called economic groups. There are some similarities and differences between the economic groups and groups in some Asian economies prior to 1979 as follows:

The similarities include investment in multi business fields; reliance on bank loans; lack of transparency in administration and business; and relatively friendly relations with the government. They are big if compared with the size of the economies, and so they are not allowed to collapse.

Regarding differences, some foreign economic groups specialized in manufacturing, developed strong R&D (research and development), and expanded their business across the region and the world. They have had specific products and strong brands. Meanwhile, Vietnamese private economic groups mostly target the domestic market, focusing on real estate and consumer services. They still cannot develop and master technologies in their fields and don’t have global competitiveness.

It is obvious that Vietnam’s private economic groups are not as powerful as Asian private economic groups before 1979, and they are vulnerable. If the businesses collapse, it will take a longer time to recover them and the collapse may cause bigger losses to the national economy.

Therefore, developing the private sector, including economic groups, in a balanced, effective and sustainable manner must be a top priority task in the coming time.

It is necessary to amend unreasonable policies to help private enterprises increase their strength and overcome obstacles so they can feel secure to expand investment for development.

The 13th Party Congress Resolution has set specific goals for Vietnam’s socio-economic development.

By 2025, Vietnam would become a developing country with industry going towards modernization and income surpassing the lower average level.

By 2030, Vietnam would become a developing country with a modern industry and higher than average income.

By 2045, it would become a developed country with high income.

Nguyen Dinh Cung

Source: https://vietnamnet.vn/en/feature/private-enterprises-lack-internal-strength-and-driving-force-to-develop-former-head-of-ciem-748432.html

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Excited but anxious: Hanoi business owners reopen

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Though they eagerly reopen after being closed for 27 days due to the Covid-19 outbreak, many Hanoi businesses are also worried about changing consumer behaviors.

Closed restaurants inside a shopping mall in Ha Dong District, Hanoi, June 20. Photo by VnExpress/Duc Minh.

Closed restaurants inside a shopping mall in Ha Dong District, Hanoi, June 20. Photo by VnExpress/Duc Minh.

After Hanoi authorities announced that indoor dining and hairdressing can resume on Tuesday, Bui Quang Hung, co-founder of barber shop chain 30Shine, showed his excitement with a post on social media saying, “see you Hanoians on Tuesday morning.”

He said the shops would open from 7.30 a.m. until late night to clear a backlog of almost a month.

“Men have to visit the barber once every three weeks on average because they feel irritated if their hair is one to two centimeters too long.”

There would be two or three times the usual number of customers for two weeks, he said based on his experience from previous waves.

But some other businesses are less hopeful.

Trieu Nguyen Quan, owner of the Goofoo Gelato chain of ice cream shops, does not expect many customers for 10 days after reopening since people are afraid of the pandemic.

Hoang Tung, CEO of fast-food restaurant chain Pizza Home, said the outbreak could cause him to lose a number of customers since people have adopted a new habit of eating at home.

To survive the stop-start nature of their business amid the pandemic, many have sought to improve their business model. Tung said Pizza Home has closed some stores that were not doing well but has expanded into home delivery and apps.

“The restaurants have to operate both online and offline, and must be prepared for the worst, which is closure, amid the pandemic.”

Goofoo Gelato too has managed to pull on thanks to online sales.

Quan said he plans to increase the number of outlets but only after vaccination. He said vaccination is the only way to make him feel secure and the ultimate solution for businesses to open and the economy to revive.

Around 2 percent of the population has received the first shot, and 0.1 percent has received both.

Vietnam has received delivery of around three million vaccine doses so far, and is expected to get over 120 million this year.

It seeks around 150 million in all to cover 70 percent of its population.

Source: https://e.vnexpress.net/news/business/industries/excited-but-anxious-hanoi-business-owners-reopen-4298384.html

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Market falls on strong selling forces

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A worker collecting latex in a rubber plantation of Vietnam Rubber Group (GVR)’s member in Chư Păh District, Gia Lai Province. The company shares posted the biggest losses yesterday. — /VNA Photo

HÀ NỘI — Shares inched down on Wednesday, weighed by strong selling pressure across most sectors despite gains in some large-cap stocks. 

The market benchmark VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) declined by 0.22 per cent to 1,376.87 points. The market’s breath stayed negative with 298 stocks falling, while 94 stocks rose and 51 ended flat. 

The liquidity was high as more than 710.77 million shares were traded on the market, worth over VNĐ21.1 trillion (US$528.6 million).

The market was weighed by selling forces despite rallies in large-cap stocks, especially bank stocks. 

The VN30-Index, which tracks 30 biggest stocks in market capitalisation on HoSE, climbed slightly 0.02 per cent to 1,489.53 points. Twenty stocks of the VN30 basket plummeted, while only nine jumped and one stayed unchanged. 

Stocks in many sectors posted negative performance yesterday with material stocks leading the market’s trend. Vietnam Rubber Group (GVR) witnessed the biggest losses, down 2.47 per cent, followed by No Va Land Investment Group Corporation (Novaland, NVL), Vingroup JSC (VIC) and Mansan Group (MSN), down 0.5 – 1.57 per cent.

However, the losses were limited by gains in bank stocks. Of which, Vietcombank (VCB) was the biggest gainer in the market, up 1.95 per cent. Other stocks witnessing big increases were Vietinbank (CTG), VPBank (VPB) and Saigon Beer – Alcohol – Beverage Corporation (SAB), up more than 1.5 per cent. 

The market has fluctuated since the beginning of the week with alternative up and down sessions. 

Analysts from Saigon – Hanoi Securities JSC (SHS) said that based on Elliot Theory, there is still room for an upward trend with a resistance level of around 1,400 points. 

Investors who took profits last week should refrain from opening long positions at the current price and wait until the market corrects deeper to come back, SHS added. 

On the Hà Nội Stock Exchange (HNX), the HNX-Index plunged 0.41 per cent to 315.8 points. 

During the trading session, more than 126.2 million shares were traded on the northern bourse, worth nearly VNĐ3 trillion. 

Meanwhile, foreign investors returned to the market as they net bought a value of VNĐ159.5 billion on both exchanges. Of which, they net bought a value of VNĐ144.44 billion on HoSE, and a value of VNĐ15.06 billion on HNX. —

Source: https://vietnamnews.vn/economy/979411/market-falls-on-strong-selling-forces.html

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