Illustration photo The international lender published the East Asia and Pacific Economic Update themed “Managing Headwinds,” on April 24. According to the WB, Viet Nam’s economy continues to show fundamental strength, supported by robust domestic demand and export-oriented manufacturing. The extreme poverty rate is estimated to have declined to below 3%. While the medium-term outlook is broadly favorable, significant downside risks are tied to weak external demand, global financial volatility, and incomplete banking and state-owned enterprise (SOE) reforms. On the upside, Viet Nam is strongly positioned to benefit from numerous free trade agreements that are coming into force now and over the forecast period. Economic growth in developing East Asia and the Pacific is projected to soften to 6% in 2019 and 2020, down from 6.3% in 2018, largely reflecting global headwinds and a gradual policy-guided slowdown in China, the World … [Read more...] about WB forecasts VN’s growth to moderate to 6.6% in 2019
Trade investments in balance sheet
BUSINESS NEWS IN BRIEF 14/1
HSG exports steel sheets to US Steel producer Hoa Sen Group reported that it shipped 17,000 tonnes of steel sheets to the US worth US$14 million on Thursday. The company has been exporting to the US since 2014 and shipments have been increasing recently. A company spokesperson said the shipment proves the company’s capacity and global competitiveness since exports to the US and EU have been hit by the trade barriers they have imposed. Hoa Sen has exported to over 75 nations and territories. In 2017-18, it produced nearly 1.9 million tonnes of steel worth over VND34.4 trillion ($1.5 billion), up 13 per cent in volume and 32 per cent in value over the previous year. Revenues from domestic sales were worth over VND22 trillion ($964 million), up 34 per cent, and exports fetched $538 million, up 27 per cent. Its profit after tax was VND410 billion ($18 million). It uses advanced technologies to meet the standards expected in international markets like the US, the … [Read more...] about BUSINESS NEWS IN BRIEF 14/1
Dow sinks below 23,000; Nasdaq flirts with a bear market; Oil in free fall
The Dow dropped 464 points, or 2%, on Thursday. The index closed below 23,000 for the first time since October 2017. The Nasdaq lost 1.6% and only narrowly avoided closing in its first bear market since the Great Recession. The S&P 500 declined 1.6%. And US oil prices are in free fall, ending below $46 a barrel for the first time since August 2017. The latest wave of selling shows how worried investors have become about the eventual demise of the economic expansion. Those jitters were exacerbated by concerns that the Federal Reserve is making a mistake by continuing to raise interest rates. "Equity markets are quickly approaching the capitulation phase after having broken below critical support," Sam Stovall, chief investment strategist at CFRA Research, told CNN Business. Market sentiment wasn't helped by a surprise deepening in the budget fight in Washington either. House Speaker Paul Ryan said President Donald Trump won't sign the spending bill needed to prevent a government … [Read more...] about Dow sinks below 23,000; Nasdaq flirts with a bear market; Oil in free fall
European stocks retreat in face of Fed rate hike
European stocks retreat in face of Fed rate hike, Source: AFP/File | Ben Stansall Wall Street stocks, which had tumbled on Wednesday after the Fed defied unprecedented pressure from President Donald Trump to raise rates, slid further on Thursday. In Japan, the Nikkei plunged to a 15-month low after the Dow struck its lowest level of 2018 on Wednesday. Oil prices meanwhile dived to fresh 15-month lows, prolonging volatility that has gripped the crude market in recent weeks. In Europe, London's benchmark FTSE 100 index slid 0.8 per cent, with losses capped by stronger-than-expected UK retail sales data. In the eurozone, Frankfurt's DAX 30 shed 1.4 per cent and the Paris CAC 40 slumped 1.8 per cent. Both are near lows for the year. The euro, meanwhile, hit a six-week high at US$1.1486. On the corporate front, shares in Airbus plunged nearly 10 per cent after French daily newspaper Le Monde said the European aircraft manufacturer could face fines of several billion dollars under a US … [Read more...] about European stocks retreat in face of Fed rate hike
BUSINESS NEWS IN BRIEF 15/11
Mai Linh launches cooperative to attract idle cars Mai Linh Group on November 15 will officially introduce and start the operation of Hoa Binh Xanh Taxi Cooperative in HCMC, which will call for the participation of owners of idle cars. According to the group’s press release, the cooperative is expected to offer more choices to the group’s customers. Early joiners of Hoa Binh Xanh Cooperative will be exempt from the management fee until December 31. They will also receive a uniform, free training courses and practicing certificates. After that, they will have to pay the management fee of only 13.9% of revenues for the duration of their contracts. Hoa Binh Xanh Cooperative will share Mai Linh’s taxi booking app and use call center 1055. The cooperative’s taxicabs will not be forced to have bright colors or be repainted in green, the traditional color of Mai Linh. However, they will have a lightbox highlighting the word “Taxi,” the Hoa Binh Xanh logo … [Read more...] about BUSINESS NEWS IN BRIEF 15/11
BNP Paribas accompanies banking development in Vietnam
(VEN) - Aymar De Liedekerke Beaufort, who heads BNP Paribas in Vietnam, explained why the country was attractive to foreign banks, and how his bank has contributed to the nation’s growth. Bamboo Bike Cycling in Mekong Delta (CSR event of BNP Paribas Ho Chi Minh City Branch in 2017) Having been in Vietnam since 1989, what do you think about the development of the banking industry in the country? Tremendous efforts have been made by the State Bank of Vietnam over the past few years to improve the quality of the balance sheets of many commercial banks. The Vietnamese banking industry has therefore become healthier and is a key player in supporting Vietnam’s gross domestic product (GDP) growth. Credit growth is something we carefully look at and BNP Paribas Vietnam’s credit growth mirrored Vietnam’s significant 18 percent Credit Growth in 2017. The Vietnamese banking industry is very well positioned to implement and follow Basel II … [Read more...] about BNP Paribas accompanies banking development in Vietnam
Economic growth will likely hold up fairly well in the near term
With growth moderation likely in the second half of the year for exports, agriculture, and construction—and with continued contraction in mining—GDP growth for the whole year is now seen slightly lower than earlier forecast. As inflation is on an upward trend and unlikely to change course in the near term, inflation forecasts for this year and next are revised up. The current account surplus is forecast to narrow more than foreseen in April.Photo: tapchitaichinh.vnUpdated assessmentVietnam posted 7.1% GDP growth in the first half of 2018, up from 5.8% in the same period in 2017 (Figure 3.4.44). On the demand side, rising income lifted private consumption growth to 7.2% from 7.0% a year earlier. Private investment remained robust, supported by high credit growth and strong foreign direct investment (FDI).Exports of goods and services rose by 15.7% by volume in the first half of the year from 14.4% a year earlier. Strength in exports, domestic private consumption, and … [Read more...] about Economic growth will likely hold up fairly well in the near term
BUSINESS IN BRIEF 13/9
The 7th international exhibition on technology, equipment and solutions for electricity transmission and distribution (Electric & Power Vietnam 2018) opened in Ho Chi Minh City on September 12. Especially, it is organised in parallel with an international exhibition on renewable energy called “Renewable Energy Vietnam 2018”, contributing to promoting the development trend of electricity in the world. The exhibitions attracted 180 entities from 22 countries and territories across the world, including six groups of international booths supported by international associations such as the Indian Electrical & Electronics Manufacturers’ Association, and Germany’s Federal Ministry for economic Affairs and Energy. The events see big brands in energy and technology industry such as the East Sea Energy Environment Group, the Song La Technical Equipment Co., Ltd, and the Solar Energy. According to BT Tee, General Director of UBM Vietnam, the … [Read more...] about BUSINESS IN BRIEF 13/9
Tesla unveils Shanghai factory plans amid US China trade row
The Shanghai deal marks the biggest overseas foray yet for Tesla, which is looking to expand into global markets AFP/WANG ZHAO Musk said the plant, which has been in the works for a year, would eventually have an annual production capacity of 500,000 cars, and he hoped it would be "completed very soon." The announcement of the new Tesla venture comes as US companies face pressure from US President Donald Trump to keep manufacturing jobs at home, and as Beijing and Washington spar over terms of a trade in a fight that only last weekend significantly hiked the price of imported Teslas sold in China. Analysts noted that the announcement included no details about how much the plant would cost or how it would be financed. China already is the world's biggest electric car market and is expected to grow further due in part to favorable government policies for the environmentally-friendly vehicles. "Shanghai will be the location for the first Gigafactory outside the United States," Musk … [Read more...] about Tesla unveils Shanghai factory plans amid US China trade row
BUSINESS IN BRIEF 29/4
VN firms cosy up to Asia-Pacific partners Construction begins on TAFiCO’s second production line Maybank Kim Eng Securities ups capital Masan Group shareholders approve ambitious sales targets Honeywell opens first Asian cyber-security centre in Singapore Vinafood II starts trading on UPCoM Vinafood II was officially started trading on unlisted public company market (UPCoM) and registered to list 114.8 million shares with the code VSF, yesterday. Reference price on the first trading day was VND 10,100 per share, yesterday. In 2018, Vinafood II said it plans to speed up trade promotion program to food products, exploit large-scale trade markets such as China and Africa. Vinafood II’s representative affirmed this year sees its strong demand for exports. As per plan, Vinafood II will try the diversification of rice export markets, not to depend on the existing ones. It targets to … [Read more...] about BUSINESS IN BRIEF 29/4