Business

Vietnam’s five-month FDI disbursement rises 7.8 percent

Disbursed volume of FDI reached $7.71 billion over the last five months, up 7.8 percent from the same period last year, according to the Ministry of Planning and Investment.

Published

2 years ago

June 7, 2022

TienphongNews

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As of May 20, Vietnam attracted $11.71 billion in FDI, equal to 83.7 percent of the same period last year.

Of the above figure, foreign investors pledged to invest $4.12 billion in 578 new projects, down 53.4 percent, and to add $5.61 billion in 395 existing projects.

Meanwhile, the accumulative value of share purchase by foreign investors rose 51.6 percent to $1.98 billion.

Foreign capital has been poured into 18 out of 21 economic sectors, with processing and manufacturing making up the lion share, $6.8 billion or 58.2 percent of the total registered capital, followed by real estate, information-communications, and science-technology.

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

The southern province of Binh Duong, the northern province of Bac Ninh and Ho Chi Minh City attracted the most foreign investments, with more than $2.52 billion, nearly $1.65 billion and over $1.3 billion, respectively.

Source: VGP

Source: https://e.nhipcaudautu.vn/economy/vietnams-five-month-fdi-disbursement-rises-78-percent-3345986/

Business

Former S.Korean president calls on firms to invest in northern Vietnamese province

Published

42 mins ago

December 9, 2023

TienphongNews

Former South Korean President Lee Myung Bak called on his country’s enterprises to invest in Thai Binh Province, northern Vietnam at an investment, trade, and tourism promotion conference held in the province on Saturday.

At the conference held by the Thai Binh administration, the former South Korean leader expressed his pleasure at the considerable development of the Vietnam – South Korea cooperation in various sectors.

In 2022, the two countries elevated their ties to a comprehensive strategic partnership.

The two countries’ bilateral trade reached $88 billion last year. South Korea was the largest provider of foreign direct investment (FDI) in Vietnam, at US$80.5 billion.

According to Lee, there is still a lot of room for the two sides’ further cooperation.

The Korea Desk Thai Binh model, which promotes South Korean investment in the Southeast Asian country, has proved effective.

“I expects the local authorities to enhance dialogues to promptly remove difficulties and provide the maximum support for South Korean enterprises,” Lee said.

Nguyen Khac Than, chairman of the People’s Committee of Thai Binh Province, says the province always creates favorable conditions for investors. Photo: T.Thang / Tuoi Tre

Nguyen Khac Than, chairman of the People’s Committee of Thai Binh Province, says the province always creates favorable conditions for investors. Photo: T.Thang / Tuoi Tre

Nguyen Khac Than, chairman of the People’s Committee of Thai Binh Province, stressed that the Thai Binh – South Korea investment, trade, and tourism promotion conference was important to open up many new cooperation opportunities between Thai Binh and South Korean partners as well as between the two countries as a whole.

Thai Binh is considered a dynamic province with great potential and competitiveness.

Its gross regional domestic product was estimated at VND68 trillion ($2.8 billion), 1.3 times higher than that in 2020. The province’s average economic growth is likely to reach 8.56 percent in 2021-23.

Thai Binh has a young workforce with some 1.2 million laborers. It can provide about 40,000 laborers, including 25,000 trained ones.

The province has attracted over $3 billion in FDI this year. South Korean investors have registered to pour $256 million into 30 projects in the Vietnamese province.

However, the figures were modest and not commensurate with the province’s potential, Than added.

“With a favorable geographical location, traffic systems, human resources, and a land bank for large industrial production, Thai Binh is an ideal destination for investors,” he remarked.

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Source: https://tuoitrenews.vn/news/business/20231203/former-skorean-president-calls-on-firms-to-invest-in-northern-vietnamese-province/77070.html

Business

Vietnam’s e-commerce to hit 20.5 billion USD this year: conference

Published

4 hours ago

December 9, 2023

TienphongNews

Vietnam’s e-commerce is expected to reach 20.5 billion USD this year, affirming its important role in the national digital economy, heard a conference held by the Vietnam E-commerce and Digital Economy Agency under the Ministry of Industry and Trade (MoIT) in Hanoi on December 1.

Vietnam’s e-commerce to hit 20.5 billion USD this year: conference hinh anh 1

A view of the conference. (Photo: VNA)

Hanoi – Vietnam’s e-commerce is expected
to reach 20.5 billion USD this year, affirming its important role in the
national digital economy, heard a conference held by the Vietnam E-commerce and
Digital Economy Agency under the Ministry of Industry and Trade (MoIT) in Hanoi
on December 1.

In his remarks, Deputy Minister Do Thang Hai noted
that the domestic e-commerce market has witnessed the formation of a secondary
service supply system, referring to technology platform services in support of
e-commerce transactions, marketing services, online marketing communications
and delivery services.

The official pointed to obstacles to e-commerce in
Vietnam relating to ensuring traceability of goods, safety and security of personal
information, and the logistics infrastructure.

To remove them, he suggested that Online Friday, a
big online shopping programme in the year, be promoted to achieve the
targets of developing the e-commerce market sustainably, and further protecting
the rights and interests of consumers and other insiders.

He also said experts should work on orientations for the
sustainable development of Vietnam’s e-commerce in the time ahead, and the
State and businesses raise digital technology solutions to boost the e-commerce
ecosystem.

At the conference, management agencies, e-commerce
platforms, payment intermediaries, and banks committed to joining the digital ecosystem,
protecting the rights of consumers and others engaging in e-commerce
transactions.

Within the framework of the conference, there was a
seminar on digital ecosystem solutions to enhance the protection of consumers
and others in e-commerce transactions in Vietnam./.

Source: https://en.vietnamplus.vn/vietnams-ecommerce-to-hit-205-billion-usd-this-year-conference/272161.vnp

Business

Construction ministry to auction 49% stake in Song Hong Corporation

The Ministry of Construction plans to auction 13.2 million shares in Song Hong Corporation, equivalent to 49.04% of capital, according to the Hanoi Stock Exchange’s filing.

Published

6 hours ago

December 9, 2023

TienphongNews

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The starting price is VND10,500 per share, which is 4.7 times more than the closing market price of SHG on December 7. The auction is scheduled to take place on December 22 at the Hanoi Stock Exchange. From November 30 to December 15, investors can register for the auction and make deposits.

In the past 6 months, SHG shares traded around VND2,000 per share and had almost no transactions for many consecutive sessions. Closing the session on December 7, this stock stopped at VND2,200 per share.

This is not the first time the Ministry of Construction has auctioned SHG shares. In 2020, the Ministry of Construction organized an auction for all SHG shares owned by the Ministry with a starting price of VND10,000 per share, while the price of SHG shares at that time was only about VND2,000 per share.

However, the Hanoi Stock Exchange announced a temporary suspension to ensure compliance with the government’s regulations at that time and wait for instructions from the competent authority.

Song Hong Corporation is one of the first member units of the Ministry of Construction, established in August 1958 with the name Viet Tri Architecture Company. In August 2006, this enterprise was converted to a parent-subsidiary company model and named Song Hong Corporation. The current charter capital is VND270 billion.

Song Hong Corporation launched its initial public offering (IPO) in 2009 with a starting price of VND14,000 per share. In April 2015, Song Hong Corporation was listed on UPCoM with a starting price of VND9,600 per share.

Since equitization, and especially after being listed on UPCoM, the company’s business situation has regressed and continuously suffered losses. Especially in 2018, the corporation had a record loss of nearly VND388 billion.

Capital recovery at construction projects has resulted in a sizable capital backlog, which Song Hong Corporation raised at the Annual General Meeting of Shareholders every year. This affects the corporation’s reputation with credit institutions as well as incurring capital costs.

The poor financial situation and serious imbalance also make it difficult to access new projects and jobs because Song Hong Corporation is unable to win bids.

In the first six months of 2023, the corporation had no revenue from construction activities and only recorded nearly VND4 billion from providing services, down 82% over the same period.

Interest expenses of more than VND36 billion are the main reason why the company lost nearly 27 billion VND in the first half of the year, increasing the accumulated loss by the end of the second quarter of 2023 to VND1,293 billion.

In the review report, CPA Vietnam Auditing Company Limited made a series of exclusionary conclusions when it was not possible to collect records of the reconciliation of receivables, and at the same time, it was not possible to collect sufficient appropriate evidence about the estimated amount. The receivable room needs to be appropriated.

CPA Vietnam also cannot express an opinion on the completeness of liabilities and the impact of this issue on the financial statements.

The audit also emphasized that, as of June 30, the corporation had short-term debt exceeding short-term assets by nearly VND987 billion. The accumulated loss is VND1,293 billion, and the negative equity is VND987 billion.

The company’s ability to operate depends on the recovery of debts, improving the efficiency of the rental business, and capital support from shareholders. These conditions make CPA Vietnam doubt the corporation’s ability to continue operating.

As of June 30, total assets were more than VND985 billion. Short-term receivables are nearly VND381 billion, of which customers’ receivables are VND169 billion. The company recorded bad debt of more than VND381 billion with a recovery value of about VND118 billion.

Inventories are at VND405 billion, mainly the unfinished production and business costs of the Vung Ang 1 Thermal Power Plant and other projects.

The amount of cash and cash equivalents is more than VND4 billion, while outstanding financial debt is more than VND313 billion. In addition, the company also recorded approximately VND913 billion in other payable expenses such as loan interest, and accrual of the cost of construction projects,…

The company’s real estate asset portfolio includes two plots of property at 70 An Duong, Tay Ho District, Hanoi, which serves as the corporation’s headquarters, and one piece of land at the Lao Cai branch.

There is also the Royal Song Hong Hotel project (Vinh Phuc), which has received approval from the Ministry of Construction to allow the company to look for partners to transfer the project.

Source: https://e.nhipcaudautu.vn/market/constructionministry-to-auction-49-stake-in-song-hong-corporation-3356605/