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Vietnamese stock index takes historic nosedive

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Sell-off intensified on Vietnam’s southern stock exchange on Tuesday as the VN-Index of the Ho Chi Minh Stock Exchange (HOSE) dropped a whopping 61 points, with nearly US$1.1 billion in trade made over the course of the day.

Panic filled the HOSE as its benchmark index took a major plunge on Tuesday, with traders dumping their holdings while simultaneously bottom fishing for a good deal.

The market’s free fall is a first for many in Vietnam, many of whom are new individual investors in the market.

Since early 2020, Vietnam’s newest generation of investors has pumped a great deal of cash into the stock market, helping the Vietnam Index to re-establish its 1,000-point mark.

However, Tuesday morning’s trading session saw the index drop 75 points at times, an unprecedented swing in the market’s history.

As bottom feeders began pumping money into collapsed stocks, the index perked up slightly.

Various blue chips and midcap stocks saw steep losses, including Vingroup (VIC), Vietcombank (VCB), Vinhomes (VHM), BIDV (BID), Vinamilk (VNM), PetroVietnam Gas (GAS), Vietinbank (CTG), Hoa Phat Group (HPG), Techcombank (TCB), and Vietnam Rubber Group (GVR).

Some, however, managed to rise over the day, including F.I.T. Group (FIT), Thanh Cong Textile (TCM), Garmex Saigon (GMC), and Saigontel (SGT).

By the end of the session, the VN-Index was down 60.94 points, or 5.11 percent, compared to its previous day close at 1,131.

With more than 986 million stocks traded, turnover on the Ho Chi Minh City bourse hit more than VND20.3 trillion (US$$880 million).

The VN30 Index, an index tracking the performance of the top 30 stocks for market cap and liquidity listed on the southern exchange, tumbled 66.02 points by end of the day to 1,107.32.

On the Hanoi Stock Exchange (HNX), the HNX-Index lost 6.48 points, or 1.3 percent, against the previous session, to the 224.02 mark, while the HNX30 – which tracks the movements of the 30 leading shares – skidded 23.58 points at 354.39.

The total trading volume on the three markets HOSE, HNX and the market for unlisted public enterprises (UPCoM), tallied almost VND25.5 trillion ($1.1 billion).

Over the past months, the VN-Index has consistently been on an upward trajectory, surpassing its previous high of 1,200 points.

Commenting on Tuesday’s market tumult, Huynh Minh Tuan, brokerage director of Mirae Asset Vietnam, said volatility of such scale was unexpected and might be attributable to a surge of “exit the market at all cost” mentality.

“Though anticipated, the extremities in this session are high enough to surpass the peak in the COVID-19 outbreak,” Tuan said.

According to Tuan, investors should consider this a chance to alleviate the pent-up pressure from the market, as the supply of stocks with profitability potential and margin funding is ample.

This will help break the state of gridlock as the VN-Index has entered the 1,200 resistance zone.

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Source: https://tuoitrenews.vn/news/business/20210121/vietnamese-stock-index-takes-historic-nosedive/58910.html

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UK investors eye renewable energy in Vietnam

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Investors from the UK were showing significant interest in investing in renewable energy projects in Vietnam, especially wind power, 

expecting the Vietnamese Government to introduce long-term support policies as well as simplification of procedures for project implementation.

UK investors eye renewable energy in Vietnam hinh anh 1

A wind farm in Binh Thuan province (Photo: VNA)

British Ambassador to Vietnam Gareth Ward said at the UK – Vietnam Renewable Energy Dialogue on Wednesday that clean energy was becoming a global trend, adding that every 1 investment USD in clean energy would help generate from 3-8 USD.

The Vietnamese Government in 2015 approved the renewable energy development strategy to 2030 with a vision to 2050 which aimed to increase the percentage of renewable power from 35 percent in 2015 to 38 percent in 2020 and 43 percent in 2050.

The Government also introduced incentive policies to encourage the development of wind power, biomass energy, energy from waste and solar power.

Hoang Tien Dung, Director of the Ministry of Industry and Trade’s Electricity and Renewable Energy Authority, said developing renewable energy was important in the context that sources for hydropower were being exhausted, thermopower was limited due to commitments to global climate change and gas-fired power had high production costs.

According to the draft national power development planning for 2021-30 period with a vision to 2045, Vietnam had large potential for renewable energy development which was estimated to amount up to 855GW, mostly solar power (434GW), and wind power (375GW). The potential for off-shore wind power was estimated at 158GW.

Off-shore power was attracting increasing interest from foreign organisations and investors, Nguyen Ninh Hai, Head of the Renewable Energy Department under the Electricity and Renewable Energy Authority, said.

Hai said that as off-shore wind power was a new thing to Vietnam, the Ministry of Industry and Trade was cooperating with some research organisations to have a comprehensive evaluation about the off-shore wind power development potential in the country.

Bui Vinh Thang, Director of Mainstream Renewable Power Vietnam, said that the Government’s planning and policies played a very important role for renewable energy investors, especially in wind power and off-shore wind power.

Benjamin Dubas, a representative from Lightsource BP, said that renewable energy investors expected the transparency and stability of policies in the long term to invest in Vietnam, especially feed-in tariffs (FIT).

According to Dung, FIT pricing was applied to accelerate investment in renewable energy in the first stage in Vietnam but this mechanism would not be maintained for a long period and be replaced by competitive bidding when the technology development helped push down prices of solar and wind power.

He added that the national power development planning which was being completed would give priority to renewable energy on the basis of ensuring balance of power sources and the power transmission between regions.

The ministry expected to continue receiving support from the UK in renewable energy, especially off-shore wind power which the UK had experience in and Vietnam had large potential.

By the end of 2020, the total renewable energy output accounted for around 25 percent of the total output worth 69,000MW of the Vietnam’s power system. There were 148 solar power projects with a total capacity of more than 8,800MW, 100,000 rooftop solar power projects with a total capacity of 9,300MW, and 11 wind power projects with a total capacity of 511MW./.VNS

Source: https://vietnamnet.vn/en/business/uk-investors-eye-renewable-energy-in-vietnam-715833.html

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Mitsubishi pulls out of central Vietnam coal plant

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Mitsubishi pulls out of central Vietnam coal plant

The logo of Mitsubishi Corporation is displayed at the entrance of the company headquarters building in Tokyo, Japan, April 26, 2016. Photo by Reuters/Issei Kato.


Japan’s Mitsubishi Corp has decided to pull out of a coal-fired power plant in central Vietnam amid growing international concern about environmental impacts.

The Japanese trading house will pull out of the 2-gigawatt Vinh Tan 3 project, planned to be located in the southern province of Binh Thuan, because of climate change targets, Reuters reported, citing two anonymous sources.

Without mentioning Vinh Tan 3 specifically, Mitsubishi said in a statement that it was committed to reducing its investment in coal power in line with international climate goals.

The 2-gigawatt plant was originally scheduled to come online in 2024.

OneEnergy, a joint venture of Mitsubishi and Hong Kong’s CLP group, holds a 49 percent interest in the $2 billion project. State-owned utility Vietnam Electricity owns another 29 percent. Chinese companies are handling materials procurement, construction and equipment delivery.

This marks Mitsubishi’s first withdrawal from a coal plant project. The trading house has said it will not build any new facilities of this type after Vung Ang 2, a Nikkei report said.

Mitsubishi still has a stake in the Vung Ang 2 coal power plant being built in the central province of Ha Tinh, which is more widely known after being subject to critical scrutiny by environmental and other groups as well as investors.

Source: https://e.vnexpress.net/news/business/companies/mitsubishi-pulls-out-of-central-vietnam-coal-plant-4240625.html

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Unable to cover expenses during Covid-19, owners sell hotels at cheap prices

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Many offers to sell coastal hotels in Da Nang have appeared on real estate forums these days. Most of them are located in districts Son Tra and Ngu Hanh Son.

Unable to cover expenses during Covid-19, owners sell hotels at cheap prices

A hotel put up on sale

On just one real estate website on February 22 many ads were listed.

A 4-star hotel on Vo Nguyen Giap street, 600 square meters, with 19 stories, 125 rooms and 2 conference rooms is offered at VND440 billion.

Hotels on the major streets of Ha Bong, Tran Bach Dang, Ho Nghinh, Vo Nguyen Giap and Ho Xuan Huong are offered at tens or hundreds of billions of dong.

Hoang Lam, the owner of a hotel on Tran Bach Dang street, said accommodation service providers have been hit hard by Covid-19.

“We have been struggling to survive by cutting costs. However, as capital is getting exhausted, hotel owners have to liquidate assets to pay bank debts,” he said.

“Selling hotels is unavoidable as there is no source of revenue, and the operation cost is high,” he said.

Do Van Hien from Dana Hotel, a broker, said a lot of hotels in Da Nang have been put up for sale since the second Covid-19 outbreak.

“The hotels for sale are 2-4-star. The prices have fallen by 20 percent and buyers are mostly from northern provinces,” Hien said.

According to Hien, 3-star hotels are priced at VND20-100 billion, while 4-star hotels are at least VND280 billion. The value of hotels depends on the locations, area, quality, numbers of rooms and brands.

The transactions of 4-5-star hotels, which have strong brands, are confidential. Hotel owners only work with prestigious brokers, and buyers have to prove their financial capability.

Hien said no one wanted to sell hotels in 2016-2019 because they could make a high profit from the business. But since 2020, guests are coming in dribs and drabs, and operation costs and loan interest rates are high.

Cao Tri Dung, chair of the Da Nang Tourism Association, admitted that tourism services have become nearly frozen and many hotels have been put up on sale.

“The pandemic resurgence before Tet blocked sources of guests. Ninety percent of clients cancelled or postponed plans to come to Da Nang,” he said.

He said this is common in a market economy, and that it is time to restructure the accommodation segment.

According to Da Nang People’s Committee, the total number of guests staying at accommodation facilities in the city in January 2021 was 251,094, a 65.6 percent decrease compared with the same period last year. 

Ho Giap

Source: https://vietnamnet.vn/en/business/unable-to-cover-expenses-during-covid-19-owners-sell-hotels-at-cheap-prices-715493.html

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