[Round-up] Vietnam Shares Hit 8-year High, Economic Growth Slows

Tuan Minh

18:40 29/09/2016

BizLIVE - Vietnamese stocks are on track to reach the highest level since the 2008 global financial crisis. Vietnam’s gross domestic product expanded 5.93% in the first nine months of this year, below a 6.53% growth rate recorded for the same period of last year.

[Round-up] Vietnam Shares Hit 8-year High, Economic Growth Slows

Vietnam’s gross domestic product expanded 5.93% in the first nine months of this year, below a 6.53% growth rate recorded for the same period of last year.

Japanese Businesses Eye Vietnam Agriculture
An increasing number of Japanese firms are interested in investing in Vietnam, particularly in the agriculture sector, the Vietnam News Agency reported, citing Tanoi Masahiko of Japan’s Ministry of Agriculture, Forestry and Fisheries as saying at the third Vietnam-Japan Agricultural Cooperation Dialogue on September 27.
“Japanese businesses want Vietnam to keep improving its business climate, offering favorable conditions to investors and addressing problems relating to intellectual property rights, transparency and taxes,” he said.
Vietnam Stocks Hit Post-2008 High
Vietnamese stocks are on track to reach the highest level since the 2008 global financial crisis, with the Hanoi Stock Exchange Index gaining 0.89% Thursday, marking the ninth straight day of share gains.
Vietnam is one of Asia’s best-performing regions this year, gaining 18% in U.S. dollar terms. In the past two weeks, the VN Index gained 3.8%, outperforming MSCI Frontier markets by 3.1 percentage points, according to Barrons.com
SCIC to Entirely Divest from Maritime Bank
State Capital Investment Corporation (SCIC) has offered to auction 2.4 million shares, equivalent to a 0.2% stake, in Hanoi-based Vietnam Maritime Joint Stock Bank at a starting price of 11,700 dong ($0.52) each.
The auction will take place on October 26 on the Hanoi Stock Exchange and be open to both foreign and domestic investors.
Bac Lieu Province Cancels Thermal Power Plant on Environmental Concerns
Vietnam’s Mekong Delta province of Bac Lieu has cancelled plans for a coal-fired thermal power plant in order to pursue clean-energy options, according to local media.
The provincial government wants to reserve water resources for seafood farming and is asking for permission to build wind turbines instead.
Total outstanding loans in the Vietnamese banking system expanded 10.46% in the year to September 20, compared to a 10.78% growth in the same period of last year, according to the General Statistics Office (GSO).
Total deposits at banks, meanwhile, outstripped with a 12.02% expansion, compared to 8.9% in the same period of 2015.
Intel Vietnam, a subsidiary of the world's largest chipmaker, has turned down rumors that it would shut down its office, and confirmed news that a layoff is on the cards, local media reported.
The downsizing is part of the Intel Corp’s global restructuring plan announced in April this year, said the firm’s Marketing Director Pham An Duong told press late on Wednesday.
Vietnam exported $14.8 billion worth of goods to China while spending $36 billion on imports from that market in the first nine months of this year, resulting in a trade deficit of $21.3 billion, down 12.5% from a year earlier, according to data of the Vietnamese customs authorities.
Vietnam’s gross domestic product (GDP) expanded 5.93% in the first nine months of this year, below a 6.53% growth rate recorded for the same period of last year, due to a decline in the mining industry and a poor performance of agriculture, according to official data.
The country’s economic growth accelerated to 6.40% in the third quarter (Q3), from 5.78% in Q2 and 5.48% in Q1, the General Statistics Office has said in a press release.
Vietnam’s GDP growth will likely remain rapid in comparison with other Asian countries as long as reforms are pursued, Frederic Neumann, an economist at HSBC, has said in a note.
Among bright spots, the latest PMI survey shows that the manufacturing sector – the sector that attracts most foreign direct investment (FDI) – continued to expand in August for the ninth straight month, even as some Asian countries and most Western economies have struggled to stay above the water line.
Ho Chi Minh City Lures $2.3 Billion in Foreign Investments in Jan-Sep
The southern metropolis Ho Chi Minh City has attracted $2.3 billion in foreign investment in the first nine months of this year, including $1.13 billion in direct investment, according to VNA.
The city also allowed 1,294 foreign investors to buy shares and contributes capital to businesses, amounting to around $1.18 billion.
Thailand Proposes Anti-dumping Duty on Vietnamese Steel Products
Thailand has proposed the imposition of anti-dumping duty at a maximum of 40.49% on Vietnam’s steel products imported into the country, according to the Ministry of Industry and Trade’s Vietnam Competition Authority.
On September 20, the Thai Ministry of Trade released its proposal on imposing anti-dumping duty from 7.94% to 40.49% on Vietnam’s cold rolled steel plated or coated with the alloy of aluminum-hot dipped galvanized in the Thai market.
EU Re-imposes Anti-dumping Duty on Vietnam’s Footwear
The European Commission (EC) has decided to re-impose a definitive anti-dumping duty and collecting definitely the provisional duty imposed on imports of certain footwear with uppers of leather originating in Vietnam.
According to a recent statement, the EC announced the extension of anti-dumping measures on Vietnamese footwear with uppers of leather for 15 months. The measures expired on March 21, 2011.
NYSE-listed GE Energy Financial Services, a GE Capital business unit, and Ireland-based Mainstream Renewable Power Ltd. have struck a deal to develop, build and operate large scale wind power plants in Vietnam, which is thirsty for electricity to fuel its economic growth.
Their joint wind projects will have a value of up to $1.5 billion, with GE putting up a portion of the funding and providing technology, The Wall Street Journal reported, citing a Mainstream Renewable executive as saying.

TUAN MINH