[Round-up] Modi’s Visit to Enhance Vietnam-India Ties, Foreign Stock Traders Turn Sellers in Vietnam

Tuan Minh

20:00 31/08/2016

BizLIVE - The upcoming Vietnam visit of Indian Prime Minister Narendra Modi is of significant importance to the future growth of the Vietnam-India ties. Overseas traders are set to be net sellers of securities traded on the Hochiminh Stock Exchange this year for the first time in a decade.

[Round-up] Modi’s Visit to Enhance Vietnam-India Ties, Foreign Stock Traders Turn Sellers in Vietnam

The upcoming Vietnam visit of Indian Prime Minister Narendra Modi is of significant importance to the future growth of the Vietnam-India ties.

Vietnam Wants More IMF Macroeconomic Policy Consultations
Vietnam expects to receive more macroeconomic policy consultations from the International Monetary Fund (IMF) in the time ahead, Prime Minister Nguyen Xuan Phuc told IMF Resident Representative in Viet Nam Jonathan Dunn in Hanoi on August 30.
Dunn promised that the fund would closely partner with competent Vietnamese agencies to give advice on macroeconomic policy, helping guide local economic development on the right track.
Vietnam Gov’t Okays $51 Billion Investment for 21 Target Programs
The Vietnamese government has approved a total investment of 1,139 trillion dong ($51 billion) for 21 national target programs in the 2016-2020 period, covering multiple sectors.
Among them, the Ministry of Agriculture and Rural Development will manage three programs covering agricultural restructuring, fisheries and forestry development and disaster prevention with a combined investment of $29 billion.
Indian PM’s Visit Hoped to Lift Vietnam-India Ties to New Height
The upcoming Vietnam visit of Indian Prime Minister Narendra Modi is of significant importance to the future growth of the Vietnam-India ties, the Vietnam News Agency (VNA) cited Ambassador to India Ton Sinh Thanh as saying.
During the visit, the first made by an Indian PM in 15 years after the visit of PM Atal Bihari Vajpayee in 2001, the two sides are scheduled to review bilateral partnership over past years and map out orientations and measures to lift up the relations to a new height, said the diplomat.
Vietnam Gov’t Approves Privatization Plans of 48 SOEs
A total of 48 state-owned enterprises, including six corporations, had their equitization plans approved as of August 20.
According to the Corporate Finance Department under the Finance Ministry, the total real value of the enterprises is nearly 32 trillion dong ($1.44 billion), of which 23.2 trillion dong ($1.04 billion) corresponds to the state.
Formosa Pays off $500 Million in Compensation for Fish Die-off
Formosa Ha Tinh Steel Company has transferred $500 million to the Vietnamese government it had committed in compensation for mass fish deaths caused by toxins discharged from its steel mill in April.
The information was given by Minister of Natural Resources and Environment on August 30.
Japanese Aquaculture Firms Eye Vietnamese Market
Miyagi prefecture of Japan will assist local enterprises specializing in producing and processing aquatic products to make inroads into the Vietnamese market, according to VNA.
Since the incident in the Fukushima nuclear power plant No.1 in 2011, enterprises in Miyagi have met with difficulties in exporting seafood to other countries. Now, the locality is seeking new markets in Asia, including Vietnam.
Inter-bank Rates Hit Record Low
Following the continuous decline over the past weeks, inter-bank rates of less-than-one-month tenors hit a record low, staying at below 1% per year, according to a report by Bao Viet Securities Company.
Thanks to abundant liquidity, the inter-bank rates for all tenors last week reduced by roughly 50 basis points (bps) to 0.59% per year for overnight loans, 0.59% for one-week loans and 0.92% for two-week loans.
Hanoi to Speed up ADB-backed Projects
Hanoi will speed up the implementation of projects funded by the Asia Development Bank (ADB), Chairman of the municipal People’s Committee Nguyen Duc Chung told Country Director of the bank in Vietnam Eric Sidgwick at a meeting in Hanoi on August 30.
During the meeting, the two sides reviewed the ADB-backed projects, and acknowledged that the Nhon-Hanoi Station urban railway and the Lang-Hoa Lac water supply project are behind schedule.
Foreign Investors Turn Sellers in Vietnam after 10-Year Spree
After pumping in $3.4 billion since 2006, overseas traders are set to be net sellers of assets traded on Ho Chi Minh City Stock Exchange this year for the first time in a decade, according to data compiled by Bloomberg.
“The root cause is really the market access," said Lai Yeu Huan, a Singapore-based senior fund manager at Nikko Asset Management Ltd., which has 10% allocated to Vietnam equities in a Southeast Asian fund it set up in November, and doesn’t plan to add to those holdings. “That triggers the low level of liquidity.”
As many as 30 Japanese companies operating in the agricultural and food processing sectors joined a Jetro-held business matching event in Hanoi on August 30 to find Vietnamese partners to ship their products to Vietnam.
The companies, most of which are newcomers here, showcased a wide range of products, from confectionery, beverages to beef and seafood.

TUAN MINH

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