Friday, June 15, 2018



Samson:  Vietnam : Government Clampdown Great For Inward Investment

 15th June, 2018 by Brian Spence

As I have highlighted several times in this column, Việt Nam now has the second fastest growing economy in the world, after China.

Given its new position in the world, there is a growing confidence and entrepreneurial spirit in the air. Many are realising that investment does not just mean property, cash or the bank but have begun investing in the Vietnamese stock market, private equity and in their own businesses. You could call Việt Nam ‘start up Việt Nam’.
We also see a growing interest in myriad of investment opportunities internationally. This outward investment trend is something I intend to write about later, but for today we are going to take a look at the interest that the global market has in this bustling, innovative and youthful Vietnamese economy and how you can benefit from this.

Interest from the global economy in the Vietnamese growth story is huge, however the perception that Việt Nam has a history of corruption has been a major stumbling block for potential international investors. Before significant inward investment will flood into Việt Nam, and flood it will, if the Vietnamese Government continue their crackdown on corruption.

The global economy has been impressed by the recently mounted ‘a big anti-graft’ campaign. The objective of the extensive campaign was part of its bid to rid the banking sector of corruption, reform the public sector and improve its global image.

It went after corrupt officials and took down some of the biggest offenders. This is a bold statement to the world that ‘Việt Nam is open for business.

S&P have recently invited senior leaders in the international business community to join their Việt Nam mergers and acquisition interest group with a view to inward investment into Việt Nam. There are already over 100 registered international CEO’s and senior figures signed up to explore pre-IPO opportunities in Việt Nam. The formula of experienced international investors and Vietnamese business opportunity is a sure-fire recipe for success.

So how can you take advantage of these new initiatives?

Vietnam Silicon Valley (SVS) is a fantastic Ministry of Science and Technology and Vietnamese Government’s initiative directed at stimulating the growth of technology start-ups in Việt Nam. It was launched in 2013 and seeks to create an ecosystem of innovations and technology commercialisation in Việt Nam – by combining Vietnamese entrepreneurial spirit and innovative nature with the most successful practices that the US and Europe has to offer in start-up development and mentoring, accelerators, and venture capital funding and investing.

Every year, VSV produce a ’Start-up Call’ from which they give investors access to more than 300 early stage start-ups in Việt Nam. From this pool, VSV go through a screening process and shortlist 30 start-ups that they feel have what it takes to succeed. They then invite potential investors to attend an ’Investor interview’ with the 30 start-ups to pick 10-20 teams. The teams will then be invited to participate in the VSV one month pre-boot camp programme. At the end of the month, VSV will make their final decision on which team will receive your investment and enter the VSV boot camp.

If you are a potential investor then it is well worth checking out the VSV website  at http://www.siliconvalley.com.vn/     LINK


Samson: Vietnam's State Treasury raises over VNĐ65.8 trillion from G-bonds

 15th June, 2018

HÀ NỘI — The State Treasury of Việt Nam has mobilised over VNĐ65.8 trillion (US$2.89 billion) via Government bond (G-bond) auctions at the Hà Nội Stock Exchange (HNX) since the beginning of 2018.

From mid-April till date, the interest rates of different terms of G-bonds have continued to increase. Most recently, an auction at HNX on Tuesday raised VNĐ4.2 trillion worth of G-bonds.

As much as VNĐ2.1 trillion were mobilised from 10-year bonds with an annual interest rate of 4.32 per cent, up by 0.02 per cent against the previous auction on June 6.

Bonds with 15-year and 20-year maturity terms raised VNĐ1.6 trillion and VNĐ500 billion, with annual interest rates of 4.65 per cent and 5.18 per cent, respectively, both up by 0.02 per cent from the previous auction on June 6.

The National Financial Supervisory Commission has predicted that the G-bond market in 2018 will see modest changes against last year, thanks to an 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 by 4.81 years against 2016, were issued last year.

The bonds had an average annual interest rate of some 6.07 per cent, down by 0.2 percentage points against 2016, according to the Ministry of Finance.   LINK
Samson:  Việt Nam regards Luxembourg important partner: PM

 15th June, 2018

HÀ NỘI — Việt Nam always regards Luxembourg as an important friend and partner, Prime Minister Nguyễn Xuân Phúc said at his reception for Jean Asselborn, Minister of Foreign and European Affairs of Luxembourg in Hà Nội on Thursday.

PM Phúc welcomed the signing of a framework agreement on co-operation between the two governments, saying it creates a co-operation framework suitable for the new situation, especially in co-operation for development and climate change response support.

He spoke highly of Luxembourg as the fifth biggest European Union investor in Việt Nam and expressed his hope that the two countries will work to facilitate their businesses to meet and partner in the fields of finance-banking, tourism and green growth.

The two countries should accelerate the completion of all remaining issues of the Investment Protection Agreement (IPA) and launch relevant procedures to sign the Free Trade Agreement on the sidelines of the upcoming 12th ASEM, the leader said.

Phúc expected that the European country will continue aiding Việt Nam in responding to climate change, and speed up co-operation with the country in building and developing the financial and banking markets as it has a lot of experience and has carried out a number of efficient co-operative programmes with Việt Nam in the field.

Minister Asselborn said Luxembourg’s maintenance of official development assistance for Việt Nam over the past 25 years showed its respect to developing the ties with Việt Nam.
He expressed his delight at the growing trade value between the two countries and pledged that his country will work together with Việt Nam to raise the value.

He spoke highly of PM Phúc’s speech relating to environmental protection at the recent G7 Outreach Summit and offered the sharing of his country’s experience in green bond model for application in Việt Nam.

He expected that the EU and Việt Nam will soon sign their free trade agreement to facilitate the stronger co-operation between Việt Nam and other EU members in the future.   LINK

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