HCM CITY — Global cross-border P2P payments and money transfer service provider MoneyGram International and Visa on Wednesday launched a real-time peer-to-peer (P2P) payment solution to Việt Nam.
It enables customers to transfer money from the US, UK and 18 other European countries to Việt Nam quickly and securely through Visa Direct.
They can transfer money almost instantly through the MoneyGram mobile app or website to any Visa cardholder in Việt Nam.
“We’ve already hit the ground running in 2021, and this latest integration with Visa Direct further improves our leading customer experience and will help execute our strategy to scale digital growth in one of the largest remittance markets in the world,” Grant Lines, global chief revenue officer at MoneyGram, said.
“We have built a modern, mobile and API-driven company that has enabled MoneyGram to become the preferred partner for cross-border transfers, and we are excited to continue to expand our real-time transfer capabilities with Visa Direct.”
Đặng Tuyết Dung, country manager, Visa Vietnam and Laos, said: “Cardholders can use any Visa debit or prepaid card to receive cross-border payments via Visa’s real-time push payment solution.
“This partnership with MoneyGram will … streamline the remittance transferring process.”
Việt Nam is one of the top 10 remittance recipients in the world.
With Visa Direct, customers can now transfer up to US$2,500 per transaction and $10,000 per day. From now until June 30 this year, consumers can send money to a Visa debit card in Vietnam without having to pay a fee. —
Great opportunity for Vietnam’s semiconductor industry
The scarcity of chip supply that began in late 2020 has affected most manufacturing industries.
In 1970-1980, late professor Tran Dai Nghia cherished a plan to build a semiconductor industry in Vietnam. He ordered a production line of Thomson-CFS (the predecessor of Thales Group, France), but due to poor infrastructure, supporting industries and logistics at that time, his efforts were unable to deliver the desired results.
Later, Dr. Dang Luong Mo (a reputable Vietnamese scientist in the microchip field in the world) also gave many enthusiastic proposals and projects with the desire to build a foundation for the microchip industry in Vietnam, but the results were modest. However, his research works have contributed to opening a new direction for the fledgling microchip industry in Vietnam.
From the constantly increasing demand of the global supply chain, the semiconductor sector has become more exciting and has become a field that receives a lot of favor. When manufacturing industries slowed down due to the current shortage of microchip supply, new opportunities for Vietnam opened up, and the semiconductor industry is now forecast to enter a new “golden time”.
Semiconductors account for a large proportion in export turnover of high-tech goods.
In recent years, the Vietnamese electronics industry has grown into the country’s most important industry. The total export turnover of these commodity groups in 2020 amounted to US$95.8 billion, equal to one third of the total export turnover of Vietnam.
Currently, Vietnam ranks 9th globally in the field of electronics exports.
Statistics from the General Department of Customs show that, for 2020, exports of telephones and components reached $51.18 billion, a slight decrease of 0.4% compared to 2019. Of which, export revenue from China was $12.34 billion, up by 48.8%; the EU – $10.06 billion, down 18.6%; the US – $8.79 billion, down 1.2%; South Korea – $4.58 billion, down 11% from the previous year.
For computers, electronic products and components, the export value reached $44.58 billion last year, up 24.1% compared to 2019. Specifically, the Chinese market accounted for $11.09 billion, 16% increase compared to 2019; the US market with $10.39 billion, up by 71.7%; the EU with $6.51 billion, up 28.7%; Hong Kong – $4.19 billion, up 38.2%.
In December 2020 alone, the export value of mobile phones and components hit $4.61 billion, up 4.6% over the previous month. With an impressive growth rate of 11.9%, computers, electronic products and components reached $2.31 billion of export turnover in the same period.
It is said that in the era of IoT (Internet of Things), market demand for products in the semiconductor industry will be very high.
The era of IoT opens new opportunities for Vietnam’s semiconductor industry.
According to Research and Markets forecasts, the global Industrial IoT (IoT) market is expected to reach $263.4 billion by 2027, with at an annual growth rate of 16.7% in the period 2019-2027. With about 7 billion devices connected via the Internet in the next 2 years, this number could increase many times by 2025, according to Dr. David Bray, CEO of People Centered Internet (USA).
Dr. Bray also said that this is an opportunity for Vietnam to leapfrog not only in Southeast Asia but also in the world in the field of IoT. semiconductor industry will be an important platform because all IoT devices are chip-dependent. In the current global chip crisis, semiconductor factories are seeking an “escape” from China, and Vietnam can become an ideal destination for technological eagles to “nest”.
Is Vietnam the ideal destination for semiconductor investors?
In Vietnam, the semiconductor industry is considered a platform to support and promote the development of other industries, contributing to economic development in depth. This is an economic sector determined by the Government to have products in the list of 9 national products and is an important way to convert scientific and technological achievements into high value-added commercial goods.
Currently, with the influence of the 4.0 industrial revolution, the semiconductor market in developing countries is also growing strongly. In particular, Vietnam is known as an emerging market in Asia, highly appreciated by analysts and foreign enterprises with great potential for development. The increase in consumption demand is the direct cause of the strong growth of Vietnam’s semiconductor factories, attracting investment from many foreign corporations in recent years.
In the Government’s Action Program to implement the Politburo’s Resolution No. 23-NQ/TW dated March 22, 2018 on a national industrial development policy to 2020, with a vision to 2045, the Ministry of Information and Communications was assigned to submit to the Prime Minister for approval a program to develop the information technology, electronics – telecommunications industry to 2025, with a vision to 2030.
In particular, the Ministry is assigned to propose mechanisms and policies to prioritize development of a number of areas: software, digital content, hardware, and electronics – telecommunications at the world’s advanced level, meeting the requirements of the 4. 0 Industrial Revolution; and mechanisms and policies to increase the added value of domestic enterprises in the global value chain.
Will the semiconductor industry enter a new “golden age”?
Thanks to the policy and legal corridors that facilitate the investment and development of high-tech products, the semiconductor chip sector has become a top priority. Industrial parks and high-tech parks in Hanoi, Ho Chi Minh City, Da Nang, Thai Nguyen, Bac Ninh and Bac Giang… with favorable geographical location and abundant human resources have become attractive destinations for investors.
Most recently, Intel Products Vietnam Company (IPV, under Intel Corporation, USA) received a project adjustment investment certificate with an additional investment of $475 million to build the most modern chip test and assembling facility in the Ho Chi Minh City Hi-Tech Park (SHTP), bringing the total investment capital of Intel in Vietnam to $1.5 billion.
Samsung HCMC CE Complex (SEHC) has just been approved to shift from a high-tech enterprise to an export processing firm, which creates favorable conditions for supporting businesses in the supply chain of Samsung, especially those in the semiconductor industry.
The project of SNST & Finger Vina (South Korea), with the goal of designing integrated electronic circuits, with total investment of nearly $1 million, was put in operation in the first quarter of 2021.
Thus, the semiconductor industry in Vietnam has strong momentum to become a spearhead economic industry, in line with the global digital transformation trend today.
Is interbank rate climb worrisome?
Interest rates are the most important focus of attention this year as many believe after a year implementing the loose monetary policy, the authorities concerned are going to tighten them.
Will the recent surge in interest rates on the interbank money market (Market 2) exert adverse effects on the market between banks and their corporate and individual clients (Market 1)?
|When it comes to capital inflows, banks have considerably built up their charter capital in recent years and set out plans for drastic capital hike this year. – SGT Photo: Tran Ngoc Linh|
Interest rates on the Interbank market, the channel allowing banks to lend and borrow money among them, suddenly surged in late April. More precisely, the overnight rate climbed to 1.2% per annum, the highest during this past year. Such a level is also nearly three times higher than in the preceding week, 4.5 times higher than in the beginning of the month and 100 basis points higher than in early this year.
Similarly, the interest rates for the one-week, two-week and one-month terms picked up 100-120 basis points against the beginning of the year, and 2.5-3.5 times greater than in early April. The hike worries quite a few people as they fear the liquidity pressure in the banking system is returning and the interest rate rise may send its ripple effect to Market 1, which means that banks may start to revise up their deposit rates again.
According to analysts, interest rates are the most important focus of attention this year, as many believe after a year implementing the loose monetary policy, the authorities concerned are going to tighten it. Recent reports by several institutions also forecast interest rates may start to rise again in the second half of this year, as a number of countries are showing signs of beginning their tightening monetary policy.
As per statistics of the General Statistics Office, credit growth in the banking industry as of March 19 was 1.47%, 2.7 times higher than the rate of only 0.54% in capital mobilization. The most up-to-date credit growth figure was 3.34% in mid-April, which might mean the demand for loans has further risen and the growth in deposits until now has probably failed to keep pace with the credit growth rate.
If this trend continues, it is inevitable that the system’s liquidity will further decline. If this is the case, one cannot rule out the possibility of banks competing for deposits once again. However, there are still factors that help stabilize interest rates, while the recent rise of interbank interest rates is probably just temporary.
Prior to any long holiday, interest rates on Market 1 often grow rapidly as banks are in need of capital to meet their liquidity safety and short-term solvency ratios. They will later slide back.
For example, in the latest surge, although the lending rates in Market 2 increased sharply for the shorter terms, there was hardly any change in the rates for the three-month, six-month and nine-month terms compared to the beginning of the month. Moreover, they even significantly went down against the beginning of the year. Therefore, if this demand for liquidity is only temporary, it will probably not exert any pressure onto the bank-to-customer market.
Interest rates supporters
Meanwhile, at present and in the immediate future, there are factors that help interest rates remain stable as mentioned above. The first is inflation is still at a low level, evidenced by the fact that the consumer price index (CPI) in April recorded the second consecutive month of reduction compared to the preceding month, with a slight decrease of 0.04%. So far, the CPI has only picked up 1.27% against the beginning of the year and 2.7% year-on-year, far from the target of 4% for the whole year.
Notably, from the third quarter onward, a handsome sum of the dong will possibly be pumped out from the six-month foreign currency sales contracts that commercial banks signed with the State Bank of Vietnam (SBV) early this year. That amount of money may help stabilize the liquidity of the dong in the system. In recent years, the volume of the dong pumped out via the foreign currency buying activities carried out by the SBV has played a key role in supporting the liquidity of the system.
Faced with accusations of currency manipulation by the U.S. Department of the Treasury in late 2020, the SBV has switched to buying foreign currencies in a six-month term early this year, but basically this policy may be supportive to the liquidity of the system. In addition, the United States has lately removed Vietnam from her list of currency manipulators. This indicates the intervention in the market for foreign exchange spot transactions may no longer have to bear great pressure. In other words, the central bank may resume the policy on buying foreign currencies via both spot and forward contracts.
Another supporting factor is considering the fact that prices in the real estate market are on the constant rise in an unhealthy way in some localities, which means probably a certain volume of bank loans has been spent on swing trading in this investment channel, the agencies in charge will tighten their grip to cool down the steep housing prices. The SBV, meanwhile, will probably formulate other policies in a bid to limit the volume of credit poured into risky industries, such as real estate or securities, thereby curbing credit growth in the process.
When it comes to capital inflows, banks have considerably built up their charter capital in recent years and set out plans for drastic capital hike this year. Also, they have successfully issued long-term bonds and valuable papers, which helps reduce the dependence on deposits from individual customers, who often come only when offered high interest rates.
As per deposit rates, in April, whereas several banks lifted their deposit rates (up 0.6 percentage point for terms of six months or longer at GPBank, up 0.2 percentage point also for terms of six-month or more at VPBank, and up 0.2 percentage point for terms of 1-3 months at PGBank), some others further lowered such rates: down 0.1 percentage point for terms of six months or longer at Kienlongbank, down 0.2-0.3 percentage point for terms of 6-11 months at VIB, down 0.2 percentage point for 3-5 month terms and 0.1 percentage point for terms of 12 months or more at Techcombank, down 0.2-0.4 percentage point for all terms at MBBank, etc.
Enterprises and the healthcare front
|A medical worker prepares AstraZeneca’s Covid-19 vaccine for injection – PHOTO: VNA|
For enterprises, protecting the people’s health does not look like their mandate, but hundreds of local businesses have rolled up their sleeves for the common cause in the midst of the raging Covid-19 pandemic. Aware of their corporate social responsibility, enterprises across the country have opened their coffers, pouring out hundreds of billions of Vietnamese dong to finance the national vaccination drive.
Just three weeks ago, the Vietnam Fatherland Front Committee of HCMC organized a function to receive donations from enterprises for the city’s program to buy vaccines for fighting the Covid-19 pandemic, and the enthusiasm from enterprises amazed many attendees.
“As of April 23 this year, the city had received more than VND200 billion from 31 organizations and individuals,” said To Thi Bich Chau, head of the Vietnam Fatherland Front Committee of HCMC, at the function. That is not to mention donations in kind worth nearly VND70 billion contributed to the city’s vaccination drive.
At the event, Hung Thinh Corporation donated a huge sum of VND50 billion to buy vaccines. Nguyen Nam Hien, deputy general director of Hung Thinh Corporation, noted that the corporation has responded to the call from the Vietnam Fatherland Front Committee of HCMC, contributing VND50 billion for HCMC and other localities to buy vaccines. “Apart from this donation, we will continue to support other activities of HCMC and the country to fight the Covid-19 pandemic,” he promised.
In fact, this huge donation is just a part of the corporation’s CSR program to support the community in tough times. When the pandemic surfaced last year, Hung Thinh already donated nearly VND50 billion in cash and in kind, including Covid-19 diagnosis machines, portable X-ray machines, protective gears for medical personnel, and other essential items for frontline workers.
Numerous other enterprises in the country have since early this year also given big bugs for the vaccination program.
On February 25, An Phat Holdings handed over VND20 billion to help the northern province of Hai Duong acquire vaccines for the local people who were then struggling with the third wave of Covid-19 outbreaks. Pham Van Tuan, a senior executive of An Phat Holdings, remarked that the company wished to join forces with the provincial government and other entities to quickly contain outbreaks. Earlier that same month, An Phat Holdings had already donated VND10 billion plus medical supplies worth VND3.5 billion to the provincial government to help with the fight against Covid-19.
In similar gestures, Thaiholdings and LienVietPostBank on February 5 donated a combined VND21 billion to the Ministry of Health to acquire Covid-19 vaccines. Minister of Health Nguyen Thanh Long, speaking at the donation ceremony, highly regarded the generosity of the two companies, stressing “access to Covid-19 vaccines is a top priority of the healthcare sector.”
The minister also reckoned the development of domestic vaccine candidates, saying initial but encouraging results have been achieved. Nanogen has surpassed the first-stage clinical trial and is ready for the second-stage trial, said the minister, referring to the local vaccine candidate. Meanwhile, two other locally-developed candidates by IVAX and VABIOTEC have yielded highly-prospective pre-clinical results.
The development of local Covid-19 vaccines has also earned strong support from local enterprises. Besides giving financial support to buy vaccines, the multi-sector business corporation Vingroup on February 27 handed VND20 billion to the Ministry of Health to support the clinical trial of Covivac vaccine by IVAX. This support, said Minister Long at the donation ceremony, would help speed up the clinical trial of the local vaccine candidate, helping the country launch a Made-in-Vietnam Covid-19 vaccine in the coming time.
According to the health ministry’s website, Vingroup is a strong pioneer in backing the fight against Covid-19. Last year, the group provided over VND1,270 billion, or more than US$50 million, to fund activities against the pandemic, including manufacturing ventilators, acquiring medical machines, and financing projects to respond to Covid-19 outbreaks.
The list of donors for the fight against Covid-19 has been extending over the past year since the pandemic hit the country. These include Nestle Vietnam and Lavie – the latter being a member of Nestle Group – donating nearly VND40 billion, and Vietcombank giving VND4.2 billion to Hai Duong Province to buy a Covid-19 diagnosis machine, among others.
Vaccines for own workers
Before giving their helping hand to the community, many enterprises have earlier pledged to protect their own workers by seeking approval from health authorities to vaccinate their employees against Covid-19.
Kim Oanh Group, for example, in early March unveiled its plan to acquire over 5,000 vaccine doses for its employees and their relatives who will be given the shot all free of charge upon approval from the health ministry, according to Tuoi Tre. Hung Thinh Corporation has also announced its plan to buy over 14,000 doses of Covid-19 vaccines for all its staff and their familities. This similar move has also been announced by other enterprises, including Dat Xanh, An Gia, Hi-Kool Vietnam, and Gotec Land among others.
Nguyen Dinh Trung, chairman of Hung Thinh, said the corporation as well as many other enterprises are willing to finance inoculation against Covid-19 for all their employees and their relatives. “Such a move is not only a necessary response to protect the workforce as the most valuable asset of enterprises, but also a corporate responsibility to share the burden with the State, the community and the entire society,” Trung was quoted in Giadinh.net. He furthered that with vaccines as a shield, the war against Covid-19 will certainly come to success.
In a recent meeting, Minister of Health Nguyen Thanh Long rallied the participation of the business community in the vaccination drive, saying their support would help the country realize the program to safeguard all the people from the pandemic. According to the ministry, Vietnam needs to import some 150 million doses of Covid-19 vaccines this year, which will require huge financial resources and exert great pressure on the State budget.
Although protecting the people’s health is not a mandate of the business community, their active participation, either via direct donations to the relevant State agencies or through vaccination plans for their own workers, is also a great contribution to the common cause of the nation to ward off the pandemic for the good of the economy and the community. Such contribution is all the more urgent now that the fourth wave of Covid-19 has attacked the country, with hundreds of infections confirmed each day, which requires not only efforts by State agencies, healthcare authorities and other frontline workers, but also the participation of enterprises. To some extent, enterprises joining the drive can also be considered as frontline forces.
Truong Sa – Vietnam’s sacred archipelago
Great opportunity for Vietnam’s semiconductor industry
31 new cases of COVID-19 on Wednesday morning, including 30 local cases
Toy story: how a Saigon public bus pimps its ride
Vietnam football squad suffer training injuries
Khanh Van looks confident in US for Miss Universe 2021
BIM Land raises US$200 million via debut issuance of Singapore-listed bonds
Việt Nam’s first high-potency drugs zone opens in Bình Dương
Conditions in place for offshore development
Khanh Van departs for Miss Universe 2021 pageant in US
Da Nang museums attracting domestic visitors with free entry policy
Nom, nom, Việt Nam – Episode 76: Fried cheese sticks
In Sa Pa, ethnic children forced to peddle on streets in bitterly cold night
Nom, nom, Việt Nam – Episode 74: Huế beef noodle soup
New pedestrian mall to become new hotspot in HCM City
Entertainment-Sports2 weeks ago
Khanh Van looks confident in US for Miss Universe 2021
Business2 weeks ago
BIM Land raises US$200 million via debut issuance of Singapore-listed bonds
Business4 days ago
Expanding fast food outlets place strain on obesity worry
Business1 week ago
VIETNAM BUSINESS NEWS MAY 10
Business4 days ago
VIETNAM BUSINESS NEWS MAY 14
Business1 week ago
VIETNAM BUSINESS NEWS MAY 9
Entertainment-Sports6 days ago
US gaming company acquires Vietnamese esports team
Entertainment-Sports2 days ago
Khanh Van clinches Top 21 finish at Miss Universe 2020