Low bank rates fail to stimulate strong capital influx into stock market

Despite deposit interest rates at banks have reached historically low levels, it is premature to anticipate a significant influx of capital from banks into the securities market at this time.

The domestic stock market in Vietnam, comprising the Ho Chi Minh Stock Exchange (HoSE), the Hanoi Stock Exchange (HNX), and the Unlisted Public Companies Market (UPCoM), has shown improvement in transaction value since the beginning of the second quarter. The average session value has risen from 476 million USD in the first quarter to 677 million USD in the second quarter and further to 1.01 billion USD in the third quarter of 2023.

This growth can be attributed to the decrease in deposit interest rates and a more favourable macroeconomic context, encouraging investors to seek higher-risk and higher-profit investment opportunities in the stock market.

Although interest rates have reached historically low levels, even lower than during the COVID-19 pandemic when the State Bank implemented monetary policy measures to s
upport businesses and individuals, the stock market has not witnessed trading sessions with values exceeding 2 billion USD as it did during the pandemic.

Tran Minh Hoang, head of Analysis at Vietcombank Securities Company (VCBS), explains that the current context differs from the previous period, making it unlikely for a significant capital shift towards securities.

Hoang suggests that the Government and the State Bank are currently directing capital towards production and business activities while limiting speculative investments to prevent asset bubbles. Although credit growth for the entire economy reached 7.4% by the end of October 2023, significantly lower than the 11.6% increase during the same period in 2022 and far from the 14% credit growth target for 2023, banks still have excess liquidity. Hoang believes that low interest rates need to be maintained for a longer period to observe a substantial capital flow shift to the stock market.

Le Pham Duy Nhan, head of the Portfolio Management Department a
t Vietcombank Fund Management Company (VCBF), anticipates credit growth for the banking system to reach 11-12% in line with GDP growth projections of over 5%. While savings interest rates have dropped, allowing for reduced lending rates, credit growth has been slow due to challenging global and domestic macroeconomic conditions. Banks need to exercise caution in lending to minimise the risks of bad debt, which has recently increased significantly.

Nhan emphasises that for industry-wide credit growth to accelerate, it will take time for government support policies to penetrate the economy. Positive signals from major export markets are also necessary for Vietnam, given its highly open economy.

Observing the current market, investor Nguyen Xuan Bach notes attractive price ranges for many stocks, particularly in industries benefiting from expansion and real estate businesses with an advantage in land resources. However, cash flows into the market are not yet substantial, mainly consisting of short-term and alt
ernating movements. Bach advises investors to be cautious, analyse industry trends, and carefully select available stocks. Patience is crucial in finding the best buying points and avoiding hasty investments.

Le Pham Duy Nhan reveals that VCBF is maintaining a high proportion of stocks in long-term favoured industries such as information technology, industrial parks, logistics, and utilities due to their potential for stable profit growth. The retail and consumer sectors also present attractive opportunities due to their lower valuations resulting from weak domestic demand and declining profits.

Nevertheless, Nhan emphasises the importance of asset preservation, especially since the market has recently experienced a recovery. Short or long-term trading strategies should be based on individual preferences and stock types, but investors should allocate capital appropriately for their investments./.

Source: Vietnam News Agency

Vietnam exports shrimp to 100 countries, territories: Authority

Vietnam is exporting shrimp to about 100 countries and territories across the world, according to the General Department of Fisheries under the Ministry of Agriculture and Rural Development.

Speaking at the November 27 event on shrimp farming models and shrimp disease prevention held in the Mekong Delta province of Soc Trang on November 27, a representative from the general department said that in the 2010-2023 period, Vietnam had 644,000-737,000 ha of brackish water shrimp.

The country has emerged as the world’s second-largest shrimp supplier, accounting for 13-14% of the total value in the world.

However, Vietnam’s shrimp industry still has certain difficulties, for example low application of science and technology by farming households (only 18.9% of the total farming area), reliance on natural breeding sources, untightened linkages in the shrimp production chain, high production costs, and low competitiveness.

Director of the general department Tran Dinh Luan said that to boost the country’s shrimp i
ndustry development, localities need to reorganise production to reduce small farming areas, and to apply technical processes to reduce production costs and improve the competitiveness of Vietnamese shrimp products.

Meanwhile, State management agencies need to strictly manage breeds, control feed quality and prices, and promote production methods that help increase the efficiency of shrimp farming./.

Source: Vietnam News Agency

Carbon market development key to green transition

Low-carbon economic development towards a circular economy is becoming an inevitable tendency in the framework of the green transition with the creation and development of carbon markets seen as an increasingly crucial tool.

The World Bank Group’s Country Report on Climate and Development for Vietnam in 2022 highlights that the effects of climate change cost the country roughly 10 billion USD in 2020, approximately 3.2% of GDP. By 2050, the entire economic expense associated with climate change could reach 523 billion.

The carbon market has been identified as a key solution for Vietnam to reach its net zero goal in the near future, according to Pham Viet Bien Cuong, Director of the Centre for Environmental Protection and Response to Climate Change.

Global trade and investment are driving the development and acceleration of green standards, incorporating new requirements related to labour, the environment, sustainable development and the reduction of carbon emissions.

In addition, there is an increasing n
eed for bilateral and international cooperation, as well as efforts related to green fields. Vietnam has a great chance to achieve its green transformation objectives and establish its place in the world’s green value chains at this pivotal juncture.

Cuong also said that the basic principle of the market’s operation was that polluters should compensate for their emissions into the atmosphere by exchanging and trading carbon credits.

Factories and manufacturing companies emit a certain amount of CO2. If they exceed the allowed level, they must buy more carbon credits. On the flip side, businesses emitting less than the limit can sell their extra carbon credits to those exceeding the limit, according to Cuong.

The carbon credit market plays a vital role in helping enterprises and the country’s economy shift from brown to green, lowering greenhouse gas emissions and boosting national GDP and company profits.

At a seminar last week about developing the carbon market, Nguyen Minh Vu, Deputy Foreign Minister, a
ffirmed that green transformation was a new driving force for sustainable growth and a key strategy for Vietnam to establish its position in the global green value chain.

The Organisation for Economic Cooperation and Development (OECD) highlighted the Vietnamese Government’s efforts to promote green growth and sustainable development and expressed their impression of the country’s commitment to net-zero emissions made at the 26th UN Climate Change Conference (COP26). They maintained that Vietnam had enormous potential for creating a vibrant, effective, and high-quality carbon market.

To date, Vietnam is one of the four nations with the highest number of investment projects registered under the clean development mechanism, having received 40.2 million carbon credits to date for 150 projects.

However, Vietnam is facing many challenges in the carbon market construction and development process, such as a lack of legal framework, international cooperation, and limited awareness.

To deal with these problems, Vi
etnam has issued a number of significant strategic initiatives on sustainable development and green growth, one of which is a development plan for instruments related to carbon pricing, particularly a market for compliant carbon.

Vietnam intends to guide the implementation of domestic and international carbon credit exchange and offsetting mechanisms in accordance with the provisions of law and international treaties, accelerate the development of regulations on carbon credit management and greenhouse gas emission quota exchange activities, and pilot a carbon credit trading floor starting in 2025./.

Source: Vietnam News Agency

?? Morning digest November 28

The following is a list of selected news summaries reported last night by the Vietnam News Agency.

– Vietnamese President Vo Van Thuong and Japanese Prime Minister Kishida Fumio agreed to elevate Vietnam-Japan relations to a ‘Comprehensive Strategic Partnership for Peace and Prosperity in Asia and the World’ at their talks in Tokyo on November 27.

Reviewing the bilateral ties over the past 50 years, the two leaders noted with satisfaction the strong, comprehensive, and practical development of the relations across all areas, with high political trust and a strong connectivity in economy, human resources, and locality-to-locality bonds. Read full story

– Vietnam and Japan on November 27 issued a joint statement on the elevation of their relations to a comprehensive strategic partnership for peace and prosperity in Asia and the world on the occasion of an official visit to Japan by President Vo Van Thuong and his spouse.

At the invitation of Japan, H.E. Mr. Vo Van Thuong, President of the Socialist Republi
c of Vietnam, and Madam Phan Thi Thanh Tam made an official visit to Japan from 27 to 30 November 2023. During the visit, Their Majesties the Emperor and Empress meet with and host a court luncheon in honor of President Thuong and Madam. H.E. Mr. KISHIDA Fumio, Prime Minister of Japan, and President Thuong attended the ceremony by Guard of Honor, held the summit meeting, attended the joint press conference, and witnessed the signing ceremony of cooperation documents. President Thuong also delivered his policy speech at the National Diet of Japan and visited Fukuoka Prefecture. Read full story

– Prime Minister Pham Minh Chinh urged the acceleration of public investment disbursement, striving to disburse at least around 676 trillion VND (27.8 billion USD) or 95% of the target this year while chairing an online meeting in Hanoi on November 27 between permanent Government members and ministries, agencies and localities.

In the first 11 months of this year, nearly 461 trillion VND (19.2 billion USD) in public in
vestment capital was disbursed, reaching 65.1% of the target, or 6.77% higher than the same period last year. Though the figure was better than last year, 41 ministries and centrally-run agencies along with 24 localities posted disbursement rates lower than the national average. Read full story

– National Assembly (NA) Chairman Vuong Dinh Hue on November 27 hailed agencies and localities for the success of the 9th Global Conference of Young Parliamentarians that took place in Hanoi from September 14-18.

Chairing a meeting to review the event organisation, the NA Chairman said that the conference’s success is beyond expectations as leaders of the Inter-Parliamentary Union (IPU), and domestic and international delegates appreciated the preparation and results of the event. Read full story

– Vice President Vo Thi Anh Xuan’s official visits to Denmark and Norway from November 20-25 was an opportunity for Vietnam to consolidate the friendship with its traditional partners, while bolstering cooperation amidst ra
pid changes in the world and development in each country, Deputy Minister of Foreign Affairs Le Thi Thu Hang has said.

In an interview with the Vietnam News Agency, the diplomat said the visits to Denmark and Norway, the first made by Xuan, aimed at carrying out the 13th National Party Congress’ foreign policy of independence and self-reliance for peace, friendship, cooperation and development, multilateralisation and diversification of foreign relations, and deepening relations with traditional partners. Read full story

– The Vietnam Department of Peacekeeping Operations on November 27 coordinated with agencies of the Ministry of National Defence and the International Committee of the Red Cross (ICRC) to organise a training course on the International Humanitarian Law for officers and personnel who are expected to join Vietnam’s Level-2 Field Hospital Rotation 6 and Engineering Unit Rotation 3.

A total of 156 trainees took part in the four-day training course which provides them with basic and essential k
nowledge about the International Humanitarian Law, conflict environments, those who are protected under the law, and kinds of violations. Read full story

– About 150 enterprises of Vietnam and China joined in a conference held in Beijing on November 27 to promote bilateral economic, trade, and investment connections.

Addressing the event, Hoang Minh Chien, Deputy Director of the Trade Promotion Agency under the Vietnamese Ministry of Industry and Trade, said that trade between the two countries has sustained stable and sustainable growth, by 5.5% from 2021 to over 175 billion USD in 2022. It surpassed 103 billion USD during the first eight months of 2023. Read full story

– Deputy Director of the Vietnam Trade Promotion Agency (Vietrade) under the Ministry of Industry and Trade Le Hoang Tai and Pascale Delcomminette, CEO of Belgium’s Wallonia Foreign Trade and Investment Agency (AWEX), on November 27 signed a letter of intent (LOI) to initiate cooperation in trade promotion between the two sides.

at the signing ceremony in Hanoi, Belgian Ambassador to Vietnam Karl Van Den Bossche expressed his delight at the visit to Vietnam by an economic and trade delegation from the Wallonia region, adding that through this trip, he expected increases in Belgium’s exports to Vietnam and vice versa so as to balance the two-way trade./.Read full story

Source: Vietnam News Agency

Vietnam Fatherland Front, Chinese People’s Political Consultative Conference step up ties

Delegates of the Vietnam Fatherland Front (VFF)’s Central Committee and the Chinese People’s Political Consultative Conference (CPPCC) shared their working experience at a conference held in Ha Long city, the northern province of Quang Ninh on November 28.

The conference drew the participation of nearly 140 delegates from the VFF’s Central Committee and VFF chapters in Quang Ninh, Lao Cai, Dien Bien, Cao Bang, Ha Giang, Lai Chau and Lang Son provinces, the CPPCC National Committee and its committees in Yunnan province and Guangxi Zhuang Autonomous Region.

Highlighting the roles of the VFF and the CPPCC in the political life in each country, especially in promoting the national strength, Vice President and General Secretary of the VFF Central Committee Nguyen Thi Thu Ha said the two sides have enjoyed fruitful cooperation over the past time.

CPPCC Vice Chairman Wang Yong said that the conference will help nurture the close friendship between the two nations, while promoting the bilateral relations in the s
pirit of ‘friendly neighbourliness, comprehensive cooperation, long-lasting stability, and looking forward to the future’ in the 21st century.

At the event, delegates exchanged experience in improving and promoting the role of supervision and social criticism work, and participating in Party and government building, collecting and reporting the people’s opinions to the Party and State, thus contributing to national construction and defence.

Both sides agreed to bolster friendship exchanges and cooperation in various fields, and promote the implementation of common perceptions of high-ranking leaders for a stable and healthy development of the Vietnam – China relations in the coming time.

Besides, they reached consensus on stepping up cooperation between the VFF and the CPPCC at all levels, and promote their roles in enhancing people-to-people exchanges and popularising the Vietnam-China traditional friendly neighbourliness./.

Source: Vietnam News Agency

PM leaves for COP28, official visit to Turkey

Prime Minister Pham Minh Chinh, his spouse, and a high-ranking delegation of Vietnam left Hanoi on November 28 afternoon to attend the 28th UN Climate Change Conference of the Parties (COP28) and have several bilateral activities in the United Arab Emirates (UAE) and pay an official visit to Turkey from November 29 to December 3.

The PM is accompanied by Minister and Chairman of the Government Office Tran Van Son, Minister of Natural Resources and Environment Dang Quoc Khanh, Minister of Labour, Invalids and Social Affairs Dao Ngoc Dung, Deputy Minister of Defence Pham Hoai Nam, Deputy Minister of Public Security Le Van Tuyen, Deputy Chief of the Communist Party of Vietnam Central Committee Office Bui Van Thach, and Deputy Foreign Minister Do Hung Viet, among other officials.

The trip reaffirms Vietnam’s consistent policy on green growth and climate change response as well as its role and position in regional and international cooperation frameworks.

Furthermore, it contributes to consolidating political
trust and enhancing the effectiveness of cooperation between Vietnam and the UAE, as well as Turkey. It sends out a message about the Southeast Asian nation’s strong commitment and responsible contribution as a peaceful, sincere, and reliable partner. Vietnam is ready to enhance friendship, dialogue, and mutually beneficial cooperation, thereby joining other nations in building a regional and international environment of peace and stability.

The PM’s Turkey visit and activities in the UAE are meaningful as Vietnam is celebrating the 45th and 30th anniversary of its diplomatic ties with Turkey and the UAE, respectively./.

Source: Vietnam News Agency

Vietnamese, Cuban young army officers gather at seminar

Young officers from the Vietnam People’s Army (VPA) and the Cuban Ministry of Revolutionary Armed Forces gathered at a seminar in Hanoi on November 28 to tighten the loyal solidarity between the two countries and armies.

Speaking at the event, Col. Tran Viet Nang, head of the VPA’s Youth Department said the activity aims to popularise the traditions and relations between the two countries’ armies and people, their culture and people while nurturing revolutionary ideals and fostering the spirit of dedication among the young generations of both armies and countries as a whole.

The two sides briefed each other on the general situation of the two countries and armies, and discussed measures to further strengthen the bilateral special relationship.

The Vietnamese side affirmed that the young officers of VPA will always stand shoulder to shoulder with the Cuban people and comrades from the Cuban Ministry of Revolutionary Armed Forces,

On the occasion, Nang proposed that both sides strengthen their fight agains
t all sabotage plots and tactics of hostile forces aimed at dividing the solidarity between the two countries and armies. He also suggested increasing exchanges and improving professional competence for young officers, with an initial focus on medical field.

While in Vietnam from November 23-December 3, the Cuban delegation paid tribute to President Ho Chi Minh at his mausoleum and toured the Presidential Palace and Ho Chi Minh Museum in Hanoi. They also attended a meeting hosted by leader of the VPA’s General Political Department, and exchanges with some military schools./.

Source: Vietnam News Agency

President Vo Van Thuong’s official visit makes headlines in Japan

Japan’s press agencies have highlighted President Vo Van Thuong’s ongoing official visit to the country, especially the elevation of bilateral relationship to a Comprehensive Strategic Partnership for Peace and Prosperity in Asia and the World.

The Japanese government’s official website on November 27 ran an article on the talks between President Thuong and Prime Minister Kishida Fumio, which took place earlier the same day.

With the theme of ‘Japan, Vietnam to strengthen security and economic ties,’ another article published by Japan Today on November 28 said the announcement of the new partnership meant that Japan has now gained the status of Vietnam’s ‘top-tier partner.’

It cited Kishida as saying at a joint press conference after their meeting that Vietnam is ‘a key partner in achieving a free and open Indo-Pacific.’

Thuong also said that close cooperation between the two countries contributes to the region’s peace and prosperity, according to the article.

‘Kishida and Thuong agreed to expand their
cooperation in wide range of areas from trade, climate change and economy to achieve a free and open Indo-Pacific,’ it said.

Public broadcaster NHK and Tokyo Broadcasting System (TBS) also covered the meetings between the Vietnamese leader and former Secretary-General of the ruling Liberal Democratic Party (LDP) of Japan Nikai Toshihiro, former PM Yoshihide Suga, and members of the Japan-Vietnam Parliamentary Friendship Alliance.

President Thuong’s visit from November 27-30 is his first official visit to Japan as the head of state, and the fourth by a Vietnamese State leader since the two countries set up their diplomatic relations 50 years ago.

It is taking place in the context that Vietnam and Japan have enjoyed fruitful cooperation in all fields./.

Source: Vietnam News Agency