Indonesia News Gazette

Hanoi: Domestic construction companies will continue to face difficulties in the second quarter of this year with capital shortage top of their problems, a report has revealed.

Up to 42.2% of surveyed firms said they met more difficulties in Q1; 41.5% said their business operation were stable and 16.3% experienced better business in Q1, according to a General Statistics Office report.

In Q2, 27.1% anticipated their business operation would be more difficult; 40.7% expected stable business and 33.2% foresaw better business performance compared to Q1.

Amid the current difficult context, 46.4% of enterprises called on capital support such as preferential loans, more convenient and faster loan procedures, and reduced lending interest rates.

Meanwhile, 44.3% suggested assistance in raw materials such as ensuring supply and stabilising raw material prices; 38.3% expected that bidding information would be more open and transparent; and 32.9% emphasised the importance of speeding up administrative reforms.

A Vie
tnam Report survey also showed that 55.6% of construction enterprises encountered difficulties in terms of working capital. Bank credit had been expanded, and interest rates had decreased, but construction firms, especially small and medium-sized, still found difficulty in accessing loans as their financial conditions failed to meet commercial banks’ requirements.

Experts said that to ease the difficulties of the construction industry, it was necessary to solve some main problems such as reducing costs, improving the competitiveness of businesses and perfecting investment and business environment

Creating the favourable conditions for the firms to get bank loans and facilitating their market access should be also included, they said.

The nation’s construction industry faced considerable challenges in 2023. Rising material prices, higher debt taken by builders, and dampened demand during the pandemic had all resulted in the downfall of hundreds of construction firms in the Vietnamese market in recent quarte
rs.

To spur economic growth and development in the country, the Government had been increasingly investing in transport infrastructure. Several projects were completed in the second half of 2023, with many more planned to be finished over the next 2-3 years. These projects were expected to keep supporting the recovery of the struggling industry in Vietnam over the short to medium term./.

Source: Vietnam News Agency

Bangkok, Lotus responds to government policy by the Ministry of Commerce that wants to help reduce the cost of living for Thai people, especially parents with school-age children, by organizing two discount campaigns from today until May 31, 2024.

Miss Worawan Phianlikitwong Senior Director Marketing Division, Lotus said that around the start of the school term is a time when Thai people, especially parents with children, There is a greatly increased cost burden. Lotus therefore organized 2 big campaigns to help ease the cost burden for the people, including the “Rollback, Reduce Big, Really Save” campaign, joining forces with famous brands. Discounts on more than 850 essential products, including the campaign “Back to school – start the new semester fully at Lotus’s” that helps reduce the burden of expenses on parents at the start of the new semester. With products and promotions that meet every student need. And there is also a project ‘Take your child to school’ invites Thai people to join in donating ne
w pairs of shoes to youth in need at Lotus donation points nationwide.’

The ‘Rollback, Big Discounts, Really Save’ campaign presents promotions that meet the needs and desires of customers with an army of products at special prices that Lotus joins forces with over 130 well-known brands to present essential products with real discounts, real savings, real savings. Covers products in 35 categories, totaling more than 850 items, with fixed prices for a full 5 weeks, guaranteeing good value at all Lotus branches nationwide with products necessary for the daily life of Thai people. Both fresh and frozen food Consumer products such as white jasmine rice, peanut oil, seasoning sauce, instant noodles, baby diapers, tissue paper, dishwashing liquid, shower cream, etc., including electrical appliances and clothing. and many other essential products

Source: Thai News Agency

Hanoi: The volume of corporate bonds maturing in 2024, though lower than that in 2023, is till at a high level, mostly in industries with payment risks such as real estate and renewable energy, according to a report by the Ministry of Finance (MoF).

The ministry said as of the end of 2023, the outstanding corporate bond debt stood at about 1 quadrillion VND (39.27 billion USD), issued by 432 businesses. Among them, the total value of bonds maturing in 2024 is 240.1 trillion VND (9.43 billion USD), lower than the 261.6 trillion VND recorded last year.

Credit institutions had the largest outstanding bond debt by the end of 2023 with 357.2 trillion VND. The figure for real estate businesses was 351.4 trillion VND.

The volume of real estate corporate bonds due in 2024 is 99.6 trillion VND, issued by 92 organisations. The MoF forecast that there will be difficulties for a number of businesses in paying corporate bond debt worth about 35.8 trillion VND, accounting for 35.9% of the volume of mature bonds of real
estate businesses, and recommended real estate businesses continue to closely monitor their ability to repay bond debt.

For the remaining group of businesses, the combined outstanding bond debt is about 300 trillion VND, accounting for 29.8% of the total outstanding debt, for bonds issued by 222 businesses. Their maturity volume in 2024 is 87.3 trillion VND for bonds issued by 102 organisations.

According to the MoF, if interest rates will be maintained at the current low level, the capital mobilisation costs will be reduced, encouraging businesses to invest in business expansion, and improving their debt repayment ability. However, the ability of restoring production and ensuring debt repayment obligations depends on particular industry and economic situation at home and abroad, it said./.

Source: Vietnam News Agency

Bangkok, The private sector believes the 10,000 baht top-up project via Digital Wallet will help stimulate the economic engine to move forward, supporting GDP in 2025.

Dr. Pacharapoj Nantaramas, Executive Vice President and Chief Economist of Krung Thai Bank, revealed that Krung Thai expects GDP in 2024 to be at 2.7%, slightly reduced from the original forecast. The main factor comes from accelerating disbursement. Budget for 2024, including if there are policy measures such as FTAs ??or measures to stimulate tourism. It will further help support the Thai economy to grow even more this year. By adjusting economic forecasts It does not yet include the 10,000 baht top-up project via Digital Wallet, which the government estimates that the project will result in an increase in GDP of 1.2 – 1.6%. We still have to wait and see. When will the project start? According to the news, it is expected that the project will be approved in the 4th quarter of this year, so it is seen that it will not have much effect on the
GDP in 2024, but it will likely have a major effect on the GDP in 2025.

However, we still need to keep an eye on the Iran-Israel conflict if it drags on. To the point of closing the oil export route or not? Will this cause the world economy to decline or not, which will also affect the Thai economy?

Meanwhile, Mr. Therdsak Thaweethiratham, Deputy Managing Director, Research Division, Asia Plus Securities, sees that the Thai economy is now beginning to gain momentum from the disbursement of the budget in 2024 and, most recently, the Cabinet approved the top-up project. 10,000 baht through Digital Walle will be a boost to the Thai economy and the Thai stock market.

However, when stimulating the economy with high-value money The stakes will be high as well. When 500 billion baht of money enters the system and the engine starts You can move forward. There will be no risk. But if the engine stumbles and then died in the middle of the road Therefore still need to keep a close eye on that But if we look at the sp
ending plan, there are two cycles: the cycle that citizens spend with shops and the second cycle that shops use to spend so they can exchange money. It should give a picture of the rotation in the period of 6 months to 1 year and we must follow the signs of the economic engine to see how far it can move forward.

Source: Thai News Agency

Hanoi: Exporters should further strengthen trade connections and improve the quality of their goods to sustain export growth to China as this is no longer a “lenient” market, said insiders.

Vietnam’s exports to China continue to be a bright spot in the context that many major economies around the world are facing difficulties, which strongly impacts Vietnam’s foreign trade activities.

According to the Ministry of Industry and Trade, in the first quarter of 2024, import and export activities to China – Vietnam’s largest trading partner – continued to show a positive recovery.

Vietnam’s exports to the country hit an estimated 12.68 billion USD, up 5.2%, ranking second after the US, while spending 29.4 billion USD on imports from China, up 24.4% year-on-year, maintaining its position as Vietnam’s largest import market. Last year, two-way trade reached approximately 171.2 billion USD, accounting for over 25% of Vietnam’s total import-export turnover.

China consistently maintains its position as Vietnam’s larg
est importer of fruits and vegetables with 14 key agricultural exports, marking up 61.5% of the Southeast Asian nation’s total fruit and vegetable export turnover.

Other contributors to the turnover of Vietnam’s exports to China include computers, electronic products, and components; mobile phones and components; cameras, camcorders, and components; machinery, equipment, spare parts; and processed foods.

Representative of the Vietnam Trade Office in Beijing Luong Van Tai said China’s economy shows positive signs of recovery, therefore if Vietnamese goods meet standards, it will be very advantageous to enter this market.

The stable Vietnam-China trade cooperation has contributed to promoting bilateral trade development, he added.

With its advantages in market size, consumption trends, and geographical location, China remains a key market for Vietnamese exports. Realising its commitments under the ASEAN-China Free Trade Agreement, China has reduced tariffs on over 8,000 products imported from Vietnam.

Furt
hermore, as the shipping charges are rising, many Chinese businesses have been seeking import sources in surrounding regions, including high-quality agricultural products and fruit from Vietnam.

However, experts said that China is no longer an “easygoing” market as before but a highly competitive one now, especially for agricultural and fruit products.

To capitalise on existing advantages, ministries, sectors, localities, and especially businesses need to change their approach and improve the quality of their exports, they said, adding that Vietnamese businesses should strictly adhere to regulations regarding product quality and origin traceability to penetrate deeper into this large market.

The Trade Promotion Agency under the ministry has recommended actively exchanging and connecting information related to market demand and trade regulations and policies of China, and actively participating in international trade fairs and exhibitions to establish direct connections and boost trade activities, thus fost
ering stable, long-term, and effective economic and trade cooperation.

Deputy Director of the agency Hoang Minh Chien said the ministry has been sending delegations of Vietnamese businesses to various Chinese localities and trade fairs there, while welcoming many delegations of Chinese localities and enterprises./.

Source: Vietnam News Agency

Bangkok, Krungthai COMPASS Research Center advises the business sector to accelerate the adoption of the circular economy concept. Create opportunities to increase income, reduce costs, and answer the question of reducing greenhouse gas emissions. Highlighting “finance for sustainability and finance for transition” as important tools to help businesses adapt.

Dr. Pacharapoj Nantaramas, Executive Vice President and Chief Economist of Krung Thai Bank, revealed that the concept of circular economy (Circular economy) is a hot global mega trend. In an era where every party is looking for sustainable growth. and build immunity from raw material shortage problems. and production costs are high from geopolitical risks and a polarized world economy Reflected from the results of a survey of major entrepreneurs around the world on their adherence to the circular economy concept. Thai entrepreneurs Therefore, adjustment to a circular economy should be accelerated. to create opportunities and cope with the changes that
come with such megatrends In particular, regulations around the world are paying more attention to this issue, such as Europe, which has begun enforcing new sustainability disclosure regulations (Corporate Sustainability Reporting Directive or CSRD) in fiscal year 2024, which is the first to include factors. circular economy and affecting as many as 50,000 companies. In the next 2-3 years, Europe may enforce the Digital Product Passport measure, which requires manufacturers to publish product information to consumers. which covers the circular economy as well It is a challenging factor for Thai exporters.

‘The circular economy will create new opportunities. to entrepreneurs Both opportunities to reduce costs Opportunity to increase income and opportunities to reduce greenhouse gases International research indicates that the circular economy will increase efficiency and reduce costs by reducing materials in production by 28%, increasing global income by as much as 10 trillion USD by 2030, and helping reduce g
reenhouse gases around the world. up to 39%, which Thailand still has the potential to develop a lot in the circular economy This is reflected in the rate of reuse or recycling of waste by companies listed on the stock exchange. The average rate is 33% by the transportation and logistics business. Media and publications Personal items and medical supplies The rate is less than 10%, compared to Europe and South Korea which are as high as 46% and 60% respectively,’ Dr. Pacharapoj said.

Mr. Natthaporn Srithong, analyst at Krungthai COMPASS Research Center, said that sustainable finance and transition finance are important tools to help the business sector adapt to a circular economy and green business. In 2023, To date, approximately US$984 billion in sustainable debt has been issued globally. while in Thailand it is nearly 180 billion baht and it is expected that in the future it will expand even more. From the trend of net zero emissions, for example, Japan plans to issue Transition bonds worth 20 trillion ye
n or 135 billion USD in the next 10 years, while in Thailand there are additional supporting factors from Launch of the “Thai ESG” fund, including the Thai banking sector preparing to offer financial products that support the business sector’s transition to environmental sustainability (Transition Finance Product) in the beginning of the third quarter of 2024.

‘Thai entrepreneurs should quickly adapt to challenges from trading partner countries’ regulations. Especially preparing information such as information on the use of recycled production factors. and waste management information as well as adjusting to seek new opportunities Including considering raising funds through Sustainable and Transition Finance, while the government should have supporting measures such as incentives and knowledge support for the business sector. Especially in the SME group and measures to change consumer behavior to be more consistent with the circular economy,’ Mr. Natthaporn said.

Source: Thai News Agency

Bangkok, SET closed today at 1,357.46 points, an increase of 7.94 points (+0.59%), trading value 46,656.12 million baht.

Stock trading today Index moves in positive territory By making the lowest point of 1,353.35 points, making the highest point at 1,362.53 points. As for securities, changes today increased by 363 securities, decreased by 107 securities, and remained unchanged by 182 securities.

Source: Thai News Agency

Bangkok,, SET is accepting applications for selection to the position of SET Manager until 30 Apr. 2024, joining in driving the Thai capital market.

The Stock Exchange of Thailand (SET) is accepting applicants for selection to the position of Manager of the Stock Exchange of Thailand. From today until 30 April 2024, this is to provide an opportunity for those with knowledge, ability, experience and understanding of the capital market. Including determination to join in driving the Thai capital market. Under the organization’s vision “To Make the Capital Market ‘Work’ for Everyone” which aims to develop the capital market to benefit all sectors.

You can follow the details of the steps and selection process, other information, and download the application form. at the Stock Exchange website www.set.or.th .

Source: Thai News Agency