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VN stock market 2020: many ups and downs

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The stock market witnessed rare strong fluctuations in 2020, reflecting the historical fear and strong expectations of investors.

The week before the last week of 2020 once again witnessed strong cash flow in the stock market. More than VND17 trillion worth of shares were transferred on December 23.

VN stock market 2020: many ups and downs

Prior to that, the market witnessed a series of trading sessions with trading volume of over VND10 trillion.

This was a good end for an unpredictable year.

Huynh Minh Tuan from Mirae Asset said that 2020 could be called a ‘crazy year’ for the Vietnam’s finance and securities market.

However, good things can be found in misfortune. According to Tuan, the ‘craziness’ was that money was available everywhere and the number of new securities investors (F0) saw a record high in 2020, which was equal to the last 10 years combined.

Securities companies reported that 50,000 new investors were joining the market each month. There were 600,000 new accounts this year.

A report found that securities companies had 1.5 million accounts in 2010. The figure had risen to 2.2 million by early 2020, which meant an increase of 700,000 accounts within 10 years. Meanwhile, the number of new accounts reached 600,000.

Another ‘crazy thing’ of the stock market was the sharp fall and then sharp rise of the VN Index. It fell from the 1,000 point threshold in late 2019 to 645 points in March 2020.

However, the index saw growth by the end of the year. It increased steadily in Q2 and Q3, then soared and made a breakthrough at the end of the year, moving towards the 1,100 point threshold.

The VN Index increased by 70 percent compared with the low in March.

According to Tuan of Mirae Asset, the finance market is witnessed big changes as money was getting cheaper and the bank deposit interest rates were on the decrease. This resulted in savings money flowing into the stock market.

A special aspect seen in 2020 was the strong rise of many listed companies amid the Covid-19 crisis. The pandemic hit most businesses hard, but many businesses still grew well, including Hoa Phat Group, Vinaconex, Novaland and Viettel Global.

The banking sector had a prosperous year in 2020. Some commercial banks, including VP Bank and Techcombank, reported a profit growth rate of 10 percent in the first nine months of the year.

Techcombank shares saw the price increasing by 60 percent in the last five months, from VND18,000 per share to VND29,400 per share.

This helped the stock asset value of billionaire Ho Hung Anh, president of the bank, soar from $1.1 billion to $1.7 billion as of December 21, according to Forbes.

MSN shares of Masan Group owned by billionaire Nguyen Dang Quang also saw the prices increase by 80 percent in the last three months, from VND53,000 to VND95,000 in mid-November.

The stock market witnessed rare strong fluctuations in 2020, reflecting the historical fear and strong expectations of investors.

At present, MSN is traded at VND84,000 per share. With the price level, Quang has $1.4 billion, an increase of $500 million.

Economy stable, stock market prospects good

As the pandemic has been under control in the country, the Vietnamese stock market recovered well. The VN Index has increased by 13 percent, among the top 10 markets with the best growth in the world.

The cash flow into the stock market was very strong, with the trading value increasing from VND5-6 trillion each session to VND15-17 trillion recently.

Analysts said that Vietnam’s stock market ‘swam against the current’ and stock prices increased because Vietnam controlled the epidemic well.

The macroeconomic stability was a fundamdental factor for the strong recovery and rise of the stock market. There were many bright spots in the economy, including satisfactory exports, high record trade surplus, and controlled inflation.

Most international institutions, including IMF, WB and ADB, have recently lifted their forecasts about Vietnam’s GDP growth rate to 2-3 percent.

Pyn Elite Fund said the Vietnamese stock market may cause big surprises in the 2020-2024 period. The sharp fall in bank deposit interest rates will drive investors to the stock market, which will help the VN Index rise to a 1,800 point peak.

Tuan predicted that the VN Index may increase by 15 percent next year to 1,300 points.

Kuwait has been upgraded into an emerging market and Vietnam is expected to benefit from this. 

Ha Duy

Source: https://vietnamnet.vn/en/feature/stock-market-2020-many-ups-and-downs-701150.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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Over 33,600 firms dissolve, suspend operations in Jan-Feb

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An employee is at work at a textile factory. The country saw over 33,600 firms leave the market or suspend their operations in the first two months of the year – PHOTO: VNA

HCMC – The country saw over 33,600 firms leave the market or suspend their operations in the first two months of the year, up 18.6% year-on-year, according to the Ministry of Planning and Investment.

Of the total, over 21,630 companies signed up to temporarily suspend operations, some 8,380 halted operations to complete dissolution procedures and over 3,590 were dissolved.

The number of newly-established firms in February dropped by 12.3% year-on-year at 8,040, while pledged capital surged by 85.6% at VND179.7 trillion. Besides, some 7,700 firms left the market in February, VietnamPlus news site reported.

Between January and February, some 18,130 companies were established, inching down 4% year-on-year, while the number of firms returning to the market, mainly active in the art, entertainment and education fields, and lodging and catering services, during the two-month period was 11,030, down 7.6% against the same period last year. However, the total registered capital increased by 12% to VND720.4 trillion.

Source: https://english.thesaigontimes.vn/80702/over-33600-firms-dissolve-suspend-operations-in-jan-feb.html

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