[Round-up] PM Encourages Startup Movement, VietJet Air to Launch IPO on HOSE

Tuan Minh

23:26 17/10/2016

BizLIVE - Prime Minister Nguyen Xuan Phuc has called on young people to bolster involvement in the “Startup Youth” program. VietJet Air is speeding up a plan to launch an initial public offering on the Ho Chi Minh Stock Exchange by the end of this year.

[Round-up] PM Encourages Startup Movement, VietJet Air to Launch IPO on HOSE

Prime Minister Nguyen Xuan Phuc has called on young people to bolster involvement in the “Startup Youth” program. Photo: VGP

Better Solar Power Policy Needed: Experts
Investors have been looking for a synchronous policy to address difficulties faced in solar power projects in Vietnam, the Vietnam News Agency (VNA) reported.
Chairman of Son Ha Group Le Vinh Son said that investors were interested in solar power projects in Vietnam but faced difficulties which include few legal frameworks, mechanisms and human resource for the production and application of renewable energy.
Vietnamese Fruit Exporters Look for Support
Vietnam has shown strong growth in fruit and vegetable exports in recent times, but for the sustainable development of exports more support from the state and enterprises is required, according to VNA.
Integration would also make Vietnam’s exports of fruit and vegetables face more technical barriers in export markets, including quarantine conditions and food safety regulations. In addition, the production of fruit and vegetables in Vietnam was still at a small scale and had unstable quality levels.
Vietnam PM Encourages Young People to Boost Startup Movement
Prime Minister Nguyen Xuan Phuc has called on young people to bolster involvement in the “Startup Youth” program.
Under the program, students at universities and junior colleges will be supported to realize their initiatives and start-ups idea. Young people in rural areas will be assisted in deploying their projects in agriculture-related innovation and technological application. Meanwhile, young entrepreneurs will get help in corporate administration, innovation and integration.
Vietnam Airlines Completes Procedures to Become Joint-Stock Company
National flag air carrier Vietnam Airlines has completed procedures to become a joint-stock company after launching an initial public offering in late 2014, the corporation announced on October 16.
The airline will then undertake procedures to list its shares on the stock exchange in the time ahead.
More Internet Users Help E-Commerce Grow: Experts
The strong growth of smartphone and internet users in Vietnam offers further opportunity for the development of e-commerce, VNA reported, citing experts at a recent seminar held in HCM City.
Deepesh Trivedi, e-commerce head for South East Asia at Facebook, said that in Vietnam mobile sharing, including texts, videos and photos on Facebook, had spiked during the shopping season up to 40%.                                         
Association Proposes Sugar Import Auctions
The Vietnam Sugar Cane and Sugar Association has proposed that the Prime Minister allow importing raw sugar instead of refined sugar to save foreign currency for the 2016-2017 crop.
According to the proposal, the association asked the PM to instruct the Ministry of Industry and Trade to officially promulgate the auction mechanism on sugar import quotas following the first successful pilot auction in September.
Total outstanding loans at banks in Ho Chi Minh City expanded 13.26% between January and September to nearly 1,400 trillion dong ($62.7 billion), marking the fastest pace for the same period since 2012.
Similarly, mobilization growth reached a four-year high at 11.37% in the nine-month period, totaling 1,740 trillion dong ($78 billion) at the end of September, according to the State Bank of Vietnam (SBV) – HCM City branch.
Vietnam’s private budget carrier VietJet Air is speeding up a plan to launch an initial public offering (IPO) on the Ho Chi Minh Stock Exchange (HOSE) by the end of this year, Chief Executive Officer and Founder Nguyen Thi Phuong Thao told the Nikkei Asian Review.
The IPO plan has been confirmed by VietJet Managing Director Luu Duc Khanh, who said at a meeting with investors in Ho Chi Minh City last week, VietJet Managing Director Luu Duc Khanh said that the carrier has carried out roadshows overseas, and is preparing for another at home before debuting on the HOSE in the final months of this year.
A number of Vietnamese banks, led by state-controlled Vietcombank, have reduced interest rates on short-term loans for several industries in the context of abundant liquidity in the banking system, aiming to aid the country’s economic growth.
Vietcombank, officially known as Bank for Foreign Trade of Vietnam, has offered rates of 6% per year at most for short-terms loans given to companies of five prioritized sectors and start-ups, down one percentage point.
Commercial banks in Vietnam had a combined 347 trillion dong ($15.5 billion) worth of non-performing loans unsolved as of June 2016, equivalent to 9.2% of GDP in the first half of 2016. The amount includes $9.7 billion in stock at the central bank-run Vietnam Asset Management Company, or VAMC, according to Ho Chi Minh City Securities Corp.

TUAN MINH