Tag: Vietnam

  • VN-Index starts week with a 0.4% drop

    VN-Index starts week with a 0.4% drop

    Vietnam’s benchmark VN-Index fell 0.40% to 1,274.77 points Monday.

    The index closed 5.14 points lower after dropping 21.60 points in the previous session.

    Trading on the Ho Chi Minh Stock Exchange decreased by 22% to VND22.990 trillion (US$903.2 million).

    The VN-30 basket, comprising the 30 largest capped stocks, saw 20 tickers fell.

    MSN of conglomerate Masan Group saw a 2.3% decline, BID of state-owned bank BIDV fell 2.1%, and VIB of private lender VIB closed 2.0% lower.

    Eight blue chips gained. SSB of lender SeABank went up 1.8%, followed by POW of electricity producer Petrovietnam Power Corporation with a 1.5% growth and HPG of steelmaker Hoa Phat Group, up 1.2%.

    Foreign investors were net seller to the tune of VND790 billion, mainly selling VHM of property giant Vinhomes and HPG of Hoa Phat Group.

    The HNX-Index for stocks on the Hanoi Stock Exchange, home to mid and small caps, fell 0.33%, while the UPCoM-Index for the Unlisted Public Companies Market went down 0.01%.

  • Gasoline prices tiptoe up

    Gasoline prices tiptoe up

    Gasoline prices rose slightly Thursday afternoon after hitting the lowest in nearly five months last week.

    The popular fuel RON95 went up 1.18% to VND22,230 per liter. Biofuel E5 RON92 rose 0.80% to VND21,310.

    Diesel increased by 1.13% to VND19,640.

    Regulators said that gasoline prices fluctuated last week after the U.S. Energy Information Administration lifted its growth forecast on global fuel demand while the military conflict between Russia and Ukraine continued.

    Gasoline prices rose 1.2-1.5% while oils went up 1.4-1.9%.

  • High aircraft lease prices make carriers reluctant to expand: Bamboo Airways CEO

    High aircraft lease prices make carriers reluctant to expand: Bamboo Airways CEO

    Rising jet leasing prices make Vietnamese airlines reluctant to expand their fleets since they fear their losses might then increase, Bamboo Airways CEO Luong Hoai Nam said.

    Airfares would only fall from the current high levels when airlines expand their fleets, he said Wednesday at a forum organized by Nhan Dan newspaper, pointing out that the number of planes has dropped by 60-70 since before Covid to 160.

    While aircraft are available for lease, prices are now high, he said.

    “If leasing more jets results in higher profits we would have done that already.”

    The price limits on domestic airfares, which have been around for decades, have made profits impossible, he claimed.

    Before the pandemic airlines used to make profits from international flights, but the high competition now has made that challenging, he said.

    He urged the government to reconsider the price caps, which go against market principles, to give airlines motivation to expand their fleets.

    Lai Xuan Thanh, chairman of the Airports Corporation of Vietnam, also called for removing the caps.

    Other countries use floor prices to prevent unfair competition and monopolies, he added.

    Nguyen Quoc Ky, chairman of Vietravel Airlines, said the cost of running an airline in Vietnam is very high due to the excessive dependence on foreign equipment, and even minor changes in the global market could result in a big impact on local airlines.

  • Factories in southern Vietnam struggle to hire workers

    Factories in southern Vietnam struggle to hire workers

    Many factories in southern Vietnam are having trouble hiring workers since prospective candidates prefer jobs that require low commitment and offer flexibility.

    Vietnam Samho, a footwear supplier to Nike, has needed 1,500 workers in the last two months for its plant in HCMC’s outlying Cu Chi District but has been able to recruit only 300.

    “It is stressful to be a human resources employee these days as hiring is increasingly difficult”, Nguyen Thanh An, chairman of the company’s labor union, said.

    An and his team have been traveling around southern Vietnam to hire people at a salary of VND7-8 millio (US$275-314) a month. The company is also willing to pay for their transportation to HCMC.

    But they have still struggled to complete the hire even as the company’s orders are increasing.

    The HCMC Center For Employment Services said last month 49,000 jobs were available but only 8,500 people applied. Almost 60,000 signed up for unemployment benefits, its data shows.

    “There is increasing demand for workers at factories but it is a challenge to find people willing to work,” Nguyen Van Hanh Thuc, director of the center, said.

    Some companies need thousands of workers and have increased their maximum recruitment age to 40 or 45, but still only a small number of candidates are applying, she added.

    HCMC’s neighboring industrial localities such as Dong Nai and Binh Duong provinces are also facing similar struggles to recruit workers, especially their garment, footwear and wood products sectors.

    Binh Duong data shows that over 3,200 companies sought 41,000 workers in the first five months.

    Dong Nai factories last month needed 10,700 workers but there were not enough candidates. Thuc said young people nowadays prefer jobs with high flexibility such as ride-hailing and delivering.

    The increasing number of factories in provinces also dissuade people from moving to big cities where living expenses are higher, she added.

    An said there is a perception that rural areas are “safer” after many workers were stuck in cities during the Covid-19 pandemic, and so many choose to live in their hometown.

    Nguyen Duc Loc, head of the Institute of Social Life Research, said the changing economy is creating new kinds of jobs which make people feel there is no point in making a long-term commitment to a factory which could lay them off any time.

    Many therefore prefer short-term jobs, he said.

    “Workers are more selective in choosing a factory now.”

    Businesses that laid off people quickly in the past would now struggle to hire workers, he added.

  • Vietcombank enables online registration for gold purchases

    State-owned Vietcombank has introduced an online registration system for gold bar purchases starting Wednesday.

    Customers can register to buy gold from 9 a.m. daily and collect their orders in the afternoon.

    Vietcombank said that it promises to keep all customer information confidential and only use it for gold bar transactions.

    Vietcombank assures that all customer information will remain confidential and will only be used for gold bar transactions. This initiative makes Vietcombank the first of the four state-owned banks to offer online registration for gold purchases.

    At other state-owned banks, such as Agribank, BIDV, and VietinBank, customers still need to queue for tokens in the morning and return in the afternoon to collect their gold.

    Since earlier this month, long queues have been seen at these banks as the State Bank of Vietnam (SBV) began distributing gold bars through them. Some customers have been lining up as early as 4 a.m. to secure tokens, with each branch serving only 20-40 customers per day.

    The SBV recently confirmed that there is sufficient gold to meet retail demand. However, the bank noted that some individuals have been hiring others to queue in order to hoard gold and drive up prices. Consequently, the SBV has requested government officials to investigate signs of speculation.

    The price of Saigon Jewelry Company gold bars has remained steady at nearly VND77 million ($3,026.37) over the past four days, approximately 8.5% higher than the global rate.

  • Government advisers want gold transactions taxed

    Government advisers want gold transactions taxed

    Advisers to the State Bank of Vietnam (SBV) have proposed taxing gold transactions to prevent speculation and price manipulation.

    “Taxing gold will reduce the demand of some buyers, especially those who buy to speculate and to manipulate price”, said Nguyen Thi Mui, a member of the Financial Policy Advisory Council, at a meeting with the SBV on Sunday.

    She added that taxing gold buyers will urge them to invest in other assets and eventually lower gold prices, which will also ensure fairness with non-gold investors.

    Le Xuan Nghia, former deputy chairman of the National Financial Supervisory Committee, said that taxing is the most efficient measure to prevent smuggling.

    “It is sometimes even more effective than administrative policies in preventing smuggling”.

    Gold has been the most profitable asset this year, with a 22% gain in five months that exceeds that of bank deposits, stocks, and bonds.

    Analysts have said that the lack of safe-haven assets have urged people to buy gold while property recovery is slow and stocks have yet to be popular among the majority of the population.

    Gold prices have been since last week as the central bank began selling gold bars through four state-owned lenders at prices lower than market rates to narrow the gap between domestic and global rates.

    Gold is now at VND76.98 million ($3,028.32) per tael, unchanged since Friday.

  • Samsung factories in Vietnam back in the black after losing quarter

    Samsung factories in Vietnam back in the black after losing quarter

    Samsung’s four factories in Vietnam made a combined profit of US$1.2 billion last quarter after losing $181 million in the fourth quarter of 2023. Samsung Thai Nguyen (SEVT), the Korean conglomerate’s best-performing plant in Vietnam, accounted for $707 million.

    The two plants in Bac Ninh Province, Samsung Electronics Vietnam (SEV) and Samsung Display Vietnam (SDV), contributed $300 million and $123 million. Samsung Electronics HCMC CE Complex (SEHC) was $40.7 million in the black.

    They accounted for 23% of their parent’s quarterly profit. Their revenues totaled $16.25 billion, up nearly $2 billion from the previous quarter.

    In the final quarter of 2023 SEV, SEVT and SEHC reported combined losses of nearly $221 million, with SDV being the only profitable operation.

    Last quarter Samsung achieved global revenues of 71.92 trillion won ($54 billion), up 13% year-on-year.

    It said revenues increased thanks to the sales of the Galaxy S24 smartphone series and higher semiconductor prices.

    The depreciation of the won against major currencies had a positive impact on profits, it said.

    During a meeting with Prime Minister Pham Minh Chinh last month, the company’s CFO, Park Hark Kyu, said it plans to invest a further $1 billion annually in Vietnam to add to its existing $22 billion.

    It also plans to increase its number of local suppliers and enhance training for its workforce, he said. Since 2014 the number of Vietnamese businesses involved in Samsung’s supply chain has increased 12-fold to 309 now. It is the largest foreign direct investor in Vietnam, where it currently produces over 50% of all its mobile phones.

  • VinFast recalls over 2,000 EVs

    VinFast recalls over 2,000 EVs

    VinFast is recalling 2,097 electric vehicles to fix various technical issues.

    Some of the VF e34 and VF 5 Plus cars produced between September 2023 and April 2024 face the threat of bolts securing the upper cover of the high-voltage battery becoming loose, leading to a potential reduction in the water resistance.

    This issue affects 23 VF e34 and 131 VF 5 Plus units. VinFast will inspect and tighten the bolts and replace the high-voltage battery if needed.

    VF 6 Plus vehicles produced between March 18 and April 9 this year have a potential defect that could cause the brake fluid hose connectors to crack, leading to possible brake fluid leakage.If the brake fluid drops below the minimum threshold, a warning will appear on the control screen, and the braking system’s effectiveness will be reduced. The number of p otentially affected vehicles is 47.<

    VinFast will inspect and replace the brake fluid hoses in the affected vehicles free of charge.

    In VF 8 and VF 9 (Eco and Plus) cars manufactured between August 2022 and March 2024, incorrect airbag types might have been installed in certain places.

    After approximately 10,000 kilometers of use, an airbag warning and inspection request may appear on the screen.

    If the airbags are not of the correct type, they may not deploy in the event of a severe collision under certain conditions.

    In all, 1,134 VF 8 Eco and VF 8 Plus vehicles and 762 VF 9 Eco and VF 9 Plus vehicles are being recalled.

    VinFast has reported these issues to the Vietnam Register and will individually notify vehicle owners, asking them to bring their vehicles to authorized service centers.

  • Thailand heatwave gives Vietnam edge in durian exports to China

    Thailand heatwave gives Vietnam edge in durian exports to China

    Thai industry insiders say the ongoing heatwave in Thailand might reduce durian production, allowing Vietnam to increase its supply to China.

    A heatwave in April and May reduced Thailand’s harvest, which normally commands higher prices than its Vietnamese peers.

    In April the country recorded a temperature of 44.2 degrees Celsius, compared to the all-time record of 44.6 degrees last year. So far this year Thailand has recorded 61 people dying over heatstroke, higher than the total number in 2023.

    High heat causes the skin to crack or the fibers to dry out in some durians, Sam Sin, development director at S&F Produce Group, a Thai firm that exports durian to China said.

    In China’s Zhejiang province, fruit importer Huang Dapeng mentioned in a WeChat forum that some durians were becoming “overheated,” leading to their sale at prices below the market rate.

    Farmers reported that the heat is causing durians to ripen more quickly, preventing them from reaching their full size and reducing their market value.

    According to China’s General Administration of Customs, in April, China’s import price for Thai durians was US$5.80 per kilogram, marginally higher than the overall average of US$5.38 per kilogram. In contrast, Vietnamese durians were priced at US$4.22 per kilogram.

    Thai durians exported to China in the first four months of 2024 had lost 49% of their value over the same period last year.

    Another concern for Thai durian growers is drought, which could reduce the yields.

    The serve weather condition may reduce Thailand’s durian production this year by 42%, or around 540,000 tons, the Nation quoted Aat Pisanwanich, an expert on international economics and adviser to Intelligent Research Consultancy as saying.

    Vietnam gains on Thailand

    Drought and heatwaves increase durian production costs in Thailand, as farmers face additional expenses to transport water to their farms to sustain their durian trees.

    Conversely, Vietnamese exporters, who gained permission to sell fresh durians in China about three years ago, benefit from cost savings by shipping the fruit across a single land border.

    This logistical advantage results in lower prices for Vietnamese durians. In April, China’s import price for Vietnamese durians was 27% lower than that of Thai durians, at $4.22 per kilogram, according to data from China’s General Administration of Custom

    In the first quarter of this year, Vietnam exported 36,800 tonnes of durian to China, compared to just 17,900 tonnes from Thailand, official data show.

    Thailand maintained a 66% market share in China during the first four months of this year. However, according to Chinese customs data, Vietnam’s share by value rose by 82% in the period.

    Dang Phuc Nguyen, general secretary of Vietnam Fruits & Vegetables Association, said that farmers in the southern region have successfully applied new techniques in growing durian.

    “Durian is a strong advantage for Vietnam in competing for the China market. There are times when Vietnamese sellers are the only ones with supply”, he said.

    Last year China bought $2.1 billion worth of durian from Vietnam, but the figure can reach as high as $3 billion this year, he added.

  • Samsung plans to add $1B to Vietnam investment annually

    Samsung plans to add $1B to Vietnam investment annually

    Samsung plans to add about US$1 billion to its investment in Vietnam annually, Chief Financial Officer (CFO) of Samsung Electronics Park Hark-kyu said as he met with Prime Minister Pham Minh Chinh in Hanoi Thursday.

    PM Chinh applauded Samsung’s efforts and determination while doing business in Vietnam, calling on the firm to view Vietnam as a strategic manufacturing and export base.

    He affirmed that the Vietnamese government always attaches importance to improving the investment climate and pledges to create favourable conditions for long-term operations of foreign enterprises.

    It will continue providing optimal conditions for the projects of Samsung to operate fruitfully and develop sustainably in Vietnam in the spirit of harmonising interests and sharing risks, he said.

    Park noted Samsung has invested $22.4 billion in Vietnam so far and plans to add about $1 billion to its investment in the Southeast Asian country annually.

    Aside from research, development, manufacturing, and export of electronic and high-technology products, the group has also been investing in supporting industries and manpower training for Vietnamese companies, and helping local firms to engage in its production and supply chain, he said.

    Samsung hopes to continue developing to contribute to Vietnam’s foreign trade and economic growth, the CFO added.

    He spoke highly of Vietnam’s investment and business climate as well as the PM’s readiness to listen to and assist enterprises, adding Samsung will continue standing side by side with the country on the development path.

    Appreciating Samsung’s building of an R&D center and participation in manpower training in Vietnam, Chinh asked the group to coordinate closely to effectively run the training centers based at the National Innovation Centre (NIC), step up cooperation to turn digital technology enterprises of Vietnam into partners in its ecosystem, increase investment in and expand the R&D center, and boost assistance for startup, innovation, and manpower training in the country.

    He also welcomed Samsung’s production and business plan, calling on it to continue helping Vietnam further improve domestic companies’ capacity so that they can join in Samsung’s supply chain more effectively.

    Samsung should continue seeing Vietnam as a strategic base for manufacturing and exporting its key products to international markets, particularly when the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU – Vietnam Free Trade Agreement (EVFTA), and the Regional Comprehensive Economic Partnership (RCEP) already took effect, Chinh suggested.

  • Hanoi apartment prices up 38% in 5 years

    Hanoi apartment prices up 38% in 5 years

    Hanoi apartment prices have risen by 38% from 2019 and prices have shot up even in buildings that are 5-10 years old, according to the Ministry of Construction.

    Many projects sell at over VND60 million ($2,367.80) per square meter, rising to even VND150 million in some places, it said in a recent report.

    The smallest apartment (40 sq.m) at Heritage West Lake to the northwest of West Lake is priced at VND3.8 billion.

    A 30-square-meter unit at Masterise West Height in the southwest of the city starts at VND1.8 billion.

    “Apartments continue to attract interest from buyers with residential needs and medium- and long-term investors,” the ministry said.

    Prices have been rising rapidly since the end of last year due to a widening gap between supply and demand. In the last six months, many projects have seen prices rise by 20-25%.

    According to property consultancy CBRE, prices on the secondary market jumped by 17% year-on-year in the first quarter, the highest increase ever recorded.

    The average price of old apartments is VND36 million per square meter. But no new apartment projects were launched during the first quarter.

    The Ministry of Construction wants the city People’s Committee to identify and punish speculators who have been driving up property prices.

    But analysts called it a futile quest and suggested it should be tackled with policies such as imposing taxes for ownership of multiple properties.

  • Sacombank assures no loss on $141M loan to Bamboo Airways

    Sacombank assures no loss on $141M loan to Bamboo Airways

    Sacombank has assured that it will not lose the VND3.58 trillion (US$141 million) it has lent to Bamboo Airways, citing that the loans are secured by high-value assets.

    The loans used to be secured by its shares and assets of property developer FLC, its former owner, Sacombank CEO Nguyen Duc Thach Diem said at its annual general meeting Friday.

    But when new owners took over the airline, the bank persuaded them to pledge high-value properties in HCMC instead, and the loans are now classified as “qualified debt,” meaning they have the lowest risk of turning into bad debts, she said.

    “It is certain that Sacombank will not lose the money it has lent to Bamboo Airways,” she said.

    Sacombank decided to invest in the airline, which has been going through major restructuring after being sold by FLC.

    In February the bank’s former deputy CEO, Phan Dinh Tue, took over as chairman of the airline.

  • Taxi firm Vinasun’s profits down by half

    Taxi firm Vinasun’s profits down by half

    Taxi firm Vinasun’s profits plummeted by 58.5% to VND22 billion ($868,000) in the first quarter, a near two-year low, according to a company disclosure.

    The Ho Chi Minh City-based company said profits dropped because it had to spend money on “supporting drivers and partners.”

    Revenues were down 15% to VND278.6 billion.

    The company aims to hire experienced drivers by paying better this year, and buy 700 new cars, mostly Toyota hybrids.

    It plans to study the possibility of using three-wheel electric vehicles.

    It targets revenue of VND1.1 trillion this year, down 9% from last year, and profits of VND80.5 billion, down by half.

    Despite slashing its payroll in recent years the company expects to face challenges to its recovery this year.

  • Vietnam tops Southeast Asia in number of Apple suppliers

    Vietnam tops Southeast Asia in number of Apple suppliers

    U.S. company Apple had Southeast Asia’s highest number of suppliers in Vietnam last year and fourth highest globally.

    There were 35 suppliers as of the 2023 financial year (which ended on Sep. 30), according to the Supplier List announced by Apple recently.

    In Southeast Asia, Thailand (24 suppliers), Malaysia (19) and the Philippines (17) followed Vietnam.

    Globally Vietnam was behind China (158), Taiwan (49) and Japan (44).

    In 2016-23 Vietnam saw the strongest increase in the number of suppliers with the entry of Foxconn, Luxshare and others.

    There are factories in Vietnam that produce parts for Apple’s AirPods, iPad and Apple Watch.

    Analysts expect Vietnam to account for 65% of Apple’s Airpods, 20% of iPad and Apple Watch and 5% of Macbook by 2025.

    Apple CEO Tim Cook last week visited Vietnam and met Prime Minister Pham Minh Chinh.

    The company said it would buy more parts produced by suppliers in Vietnam and promised to support the country’s innovation efforts.

    China remains at the top of Apple’s supply chain, accounting for 42% of its production.

  • FPT and Nvidia to build $200M AI factory in Vietnam

    FPT and Nvidia to build $200M AI factory in Vietnam

    Vietnam IT giant FPT Corp will spend $200 million building an AI Factory that incorporates technology from U.S. chipmaker Nvidia.

    The factory, which will serve as a sovereign cloud, will not produce hardware but instead will focus on AI research and development using Nvidia’s latest technologies, including Nvidia AI Enterprise software and frameworks and Nvidia H100 Tensor Core Graphic Processing Units, FPT said in an press release Tuesday as its leaders sign the partnership with their Nvidia counterparts in Hanoi.

    The factory will create applications and solutions on generative AI (a type of AI that can create new content and ideas), autonomous driving and green transformation.

    “This empowers FPT to realize the vision of transforming Vietnam into an AI nation and accelerating the adoption of AI applications in Asia, including but not limited to Vietnam, Japan, and Korea.”

    FPT chairman Truong Gia Binh said that the company’s vision is to “turn Vietnam into an AI hub of the world.”

    Nvidia vice president of worldwide AI Initiative Keith Strier said: “By accelerating innovation in healthcare, agriculture, climate, manufacturing, and more, AI has the potential to improve lives and strengthen the economies of every nation.”

    “FPT is working with Nvidia to empower organizations across Vietnam to drive transformation, helping the country become an AI nation,” he added.

    FPT plans to incorporate Nvidia’s training content into university and high school curricula to develop high-tech human resources. The corporation wants to have at least 30,000 students in the program within five years.

    As part of the collaboration, FPT has joined the Nvidia Partner Network as a Service Delivery Partner and aims to become a Global Systems Integrator, leveraging the full potential of Nvidia’s cutting-edge products and technologies to develop bespoke cloud services, hardware, software, and most importantly, generative AI solutions.

    The two companies will develop cloud gamming in Vietnam through Nvidia’s service GeForce Now.

    Strier on Monday had a meeting with the Minister of Planning and Investment, Nguyen Chi Dung, which reinforced the efforts in building and developing Vietnam’s semiconductor and AI ecosystem.

    A source said that Nvidia’s purpose for this visit to Vietnam is to work with parties to establish a research, development, and training center for AI, install supercomputers, and possibly relocate a portion of graphic processing units production for supercomputers to Vietnam.

    Nvidia CEO Jensen Huang in December last year visited Japan, Singapore, Malaysia and Vietnam to look for potential partners. He emphasized that Asia is the new global tech hub and wants to expand his company’s presence here.