Friday, May 4, 2018


Samson:  Vietnam : G-bonds worth US$92mn raised in auction

 3rd May, 2018 

The value of G-bonds issued in 2018 is estimated at some VNĐ180 trillion, with the focus being on long-term maturity and keeping the interest rate at low levels

HÀ NỘI — The State Treasury of Việt Nam raised over VNĐ2.1 trillion (US$92.08 million) via Government bond (G-bond) auctions in Hanoi Stock Exchange (HNX) on May 2.

The auctions offered a total of VNĐ5 trillion worth of G-bonds with different maturities. Four tenures were offered at HNX, including five-year and seven-year bonds valued at VNĐ1 trillion each alongside 10-year and 15-year bonds valued at VNĐ1.95 trillion each.

The auction of five-year bonds mobilised VNĐ64 billion at the average interest rate of 2.97 per cent per year. The rate was the same as that during the previous auction on April 24.
Some VNĐ1.045 trillion worth of 10-year bonds were sold at the average yield rate of 4.15 per cent per year in the auction, 0.05 per cent higher than those of the previous auction.

A combined VNĐ1 trillion worth of 15-year bonds were purchased at the average yield rate of 4.5 per cent in two auctions, an increase of 0.03 per cent per year from the April 24 auction.

No bond was sold at the seven-year bond auction.

The State Treasury of Việt Nam has raised more than VNĐ48.57 trillion worth of G-bonds since the beginning of 2018.

The National Financial Supervisory Commission has predicted that the G-bond market in 2018 will see modest changes against last year, thanks to the economic growth of more than 6.7 per cent and inflation of below four per cent.

The value of G-bonds issued in 2018 is estimated at some VNĐ180 trillion, with the focus being on long-term maturity and keeping the interest rate at low levels.

G-bonds worth VNĐ159.9 trillion with an average maturity of 13.52 years, up 4.81 years against 2016, were issued last year. The bonds had an average annual interest rate of some 6.07 per cent, down 0.2 percentage points against 2016, according to the Ministry of Finance.  LINK


Samson: Việt Nam makes trade surplus of US$3.39bn

 3rd May, 2018

HÀ NỘI — Việt Nam made a trade surplus of US$3.39 billion in the first four months of 2018, in which foreign direct investment (FDI) sector, including fuel, took the lead with $11.17 billion. This was reported by the General Statistics Office (GSO). Meanwhile, the domestic-invested sector experienced a trade deficit of $7.78 billion in the January-April period.

The country’s export turnover increased by 19 per cent year-on-year to $73.76 billion in the first four months of this year, of which the domestic-invested sector reached $20.28 billion, up 17.9 per cent, while FDI sector earned $53.48 billion, rising by 19.4 per cent and occupying 72.5 per cent of the country’s total exports.

According to GSO, the United States remained the largest export market for Việt Nam during the period, with an export turnover of $14 billion, increasing by 12.7 per cent compared to the same period last year. The European Union and China ranked second and third, with $13.2 billion (up 16 per cent) and $10.7 billion (up 29 per cent), respectively. They were followed by ASEAN countries, Japan and South Korea, with $7.9 billion, $5.8 billion and $5.8 billion, respectively.

In terms of imports, the country spent $70.37 billion to import goods from January to April, up 10.1 per cent year on year. Imports accelerated due to the growth of several commodities, including electronics and computers worth $13.4 billion, up 22.3 per cent; mobile phones and components, which were valued at $4.4 billion, up 9.8 per cent; and petrol and oil worth $2.8 billion, up 31.6 per cent.

China remained the largest import market for Việt Nam, with a turnover of $18.1 billion, increasing by 5.8 per cent year on year. It was followed by South Korea with $15.5 billion (up 7.6 per cent), ASEAN market with $9.9 billion (up 14.5 per cent) and Japan with $5.9 billion (up 16.1 per cent).

Agro-forestry-fishery export rises

During the first four months of the year, the country’s export value of farming, forestry and fishery products reached $12.3 billion, a year-on-year surge of 11.9 per cent, according to the Ministry of Agriculture and Rural Development.

The country raked in $6.5 billion from exports of major agricultural products, $2.4 billion from seafood and $2.7 billion from major forestry products, up 11.9 per cent, 13 per cent and 7.9 per cent against the same time last year, respectively.

The United States (US), Japan, China and South Korea were the top four importing markets for Vietnamese seafood in the first three months of this year, accounting for 52 per cent of total seafood export value. The markets having strong growth in seafood export value included the Netherlands (55.7 per cent), China (44.6 per cent) and the United Kingdom (33.8 per cent).

During the period, the country shipped 2.16 million tonnes of rice abroad, earning $1.1 billion, year-on-year increases of 21.7 per cent in volume and 37.7 per cent in value.

Average export price for rice in the first quarter of this year gained 15 per cent to reach $501 per tonne. China continued to be the largest importer of Vietnamese rice when it purchased 411,600 tonnes, or 29.1 per cent of the rice market share.

Rice export enjoyed strong growth in Indonesia (up 378 times), Iraq (up 16.7 times), Malaysia (up 3.3 times), Ivory Coast (up 67.1 per cent), Ghana (up 57.4 per cent), China’s Hong Kong (up 46.2 per cent) and Singapore (up 24.6 per cent).

In the January-April period, cashew exports experienced sound expansion in terms of both volume and value. Some 103,000 tonnes of cashew were shipped abroad at a value of $1.04 billion, rising 23.1 per cent in quantity and 31.9 per cent in value from the same time last year.

The US, China and the Netherlands remained the three top export markets of Vietnamese cashew. They made up of 34.4 per cent, 13.6 per cent and 13.3 per cent of the market share, respectively.

The export value of vegetables and fruits went up nearly 30 per cent year-on-year to over $1.32 billion in the first four months, including $353.8 million in April.

Earnings from coffee regained a slight rise of 0.4 per cent to $1.3 billion despite an 18.1 per cent increase in volume with 691,000 tonnes. Germany and the US continued to be the two largest export markets of Vietnamese coffee, accounting for 25 per cent of the total export value of coffee.

Meanwhile, the export value of cassava went up 3.2 per cent to $376 million but export volume of this products dropped sharply 24.7 per cent to 1.1 million tonnes in the period.
China was still the largest export market of Vietnamese cassava, accounting for 88 per cent of the total exports.

In a stark contrast, rubber and pepper saw their export values down of 21.4 per cent and 33.2 per cent, respectively.

The ministry estimated that the country splashed $9.5 billion on purchasing foreign agro, forestry and fishery products in the four-month period, growing 11.7 per cent year-on-year.    LINK


Samson:  Vietnam investors seek spots at DC summit

 4th May, 2018

HCM CITY — More than 30 Vietnamese investors participated in a seminar held on Thursday in HCM City as part of the US Mission to Việt Nam’s ongoing recruitment for the SelectUSA Investment Summit in Washington, DC in June.

The first “Invest in the US” seminar, co-organised by the US Consulate General and AmCham HCM City, described the benefits of investing in the US, home to the largest amount of FDI in the world.

Experts from Baker & McKenzie law firm provided Vietnamese investors with an introduction on the legal and foreign exchange requirements for outbound investment and gave presentations on best practices for establishing operations in the US.

One of the benefits of investing in the US is the variety of opportunities that exist across the country’s 52 states and territories. Representatives from the US states of Idaho, Iowa, and Pennsylvania spoke about investment opportunities in their states.

Fred Burke, senior partner from Baker & McKenzie, highlighted how Việt Nam’s GDP growth was fueling greater interest in investing in the US.

“It is often said that investment follows trade, and Việt Nam’s trade with the US has grown enormously in recent years such that it is one of Việt Nam’s top export markets.  It should come as no surprise, therefore, that Vietnamese firms are looking to invest in the US to support their trade relations and take advantage of opportunities there,” Burke said.

The Investment Summit promotes the US as a premier investment destination and connects qualified foreign firms with US economic development organisations to facilitate business investment and job creation.

Last year’s SelectUSA Investment Summit hosted by US Secretary of Commerce Wilbur Ross drew the largest crowd yet, with over 3,000 registered participants.

With 28 delegates, Việt Nam had the 12th largest delegation at the summit and the largest delegation from Southeast Asia.   LINK

Samson:  Vietnam : Foreigners allowed to own 49% of commodity exchange

 3rd April, 2018

HÀ NỘI — Foreign investors will be allowed to contribute capital to establish commodity exchange in Việt Nam as per Decree No. 51/2018/NĐ-CP, which will be effective from June 1, 2018.

However, their ownership in the exchange should not exceed 49 per cent of its charter capital. Foreign investors are also permitted to trade goods on the commodity exchange as clients and can become members of the exchange (brokers or traders) without ownership restraint.

A brokerage member must have a charter capital of VNĐ5 billion (US$220,000) or more while a trading member must have at least VNĐ75 billion.

The decree stipulates that the commodity exchange must have a charter capital of at least VNĐ150 billion ($6.6 million) and an IT system that meets technical requirements in processing purchase and selling orders as well as a software solution with a capacity of tracing transactions, payment and delivery for at least five years.

The Ministry of Industry and Trade will be responsible for verifying and granting the establishment licence.

The decree, which was issued on April 9, amends and supplements a number of articles of the government’s Decree No. 158/2006/NĐ-CP, dated December 28, 2006, on the conditions for the establishment of commodity exchange.  LINK


Samson:  Vietnam : Ha Noi to host World Economic Forum on ASEAN in September

 4th May, 2018

The organising committee of the WEF ASEAN held its first meeting in Hà Nội yesterday

HÀ NỘI — The World Economic Forum on ASEAN (WEF ASEAN) 2018 is scheduled to take place in Hà Nội from September 11-13, focusing on entrepreneurship and the fourth industrial revolution (Industry 4.0).

The Prime Minister has set up an organising committee headed by Deputy Foreign Minister Bùi Thanh Sơn for the event.

The organising committee held the first meeting in Hà Nội on Thursday to discuss coordination mechanisms between sub-committees, relevant ministries, departments and localities in preparation for the forum. Members also looked at plans to conduct security and logistics work to ensure the event’s success in terms of politics, diplomacy, economics and culture.

Deputy Foreign Minister Bùi Thanh Sơn, head of the committee, stressed that the forum is one of the country’s most important external activities in 2018, which aims to increase Việt Nam’s position in the world and promote the country among global leading enterprises. He requested sub-committees and members of the organising committee proactively work together to gear up for the event.

The WEF was established in 1971 as a non-profit foundation and headquartered in Geneva, Switzerland. The forum engages the foremost political, business and other leaders of society to shape global, regional and industry agendas.   LINK

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