[Round-up] Vietnam’s SOE Equitisation Remains Slow, S. Korea's Investment Tops $50 Billion

Tuan Minh

19:10 12/06/2017

BizLIVE - As many as 96.5% of state-owned enterprises underwent equitization as of the end of March this year, but the privatized capital amount from these reached only 8%. The accumulated investment made by South Korean companies in Vietnam topped the $50 billion mark as of 2016.

[Round-up] Vietnam’s SOE Equitisation Remains Slow, S. Korea's Investment Tops $50 Billion

The accumulated investment made by South Korean companies in Vietnam topped the $50 billion mark as of 2016.

S. Korea's Accumulated Investment in Vietnam Tops $50 Billion
The accumulated investment made by South Korean companies in Vietnam topped the $50 billion mark as of 2016, with local businesses emerging as the No. 1 foreign investors in the Southeast Asian economy, according to the data compiled by the Korea Trade-Investment Promotion Agency (KOTRA).
Combined South Korean investment since 1988 stood at $50.5 billion, involving a total of 5,773 deals. South Korean firms' investment accounted for 30.8% of the total foreign direct investment during the cited period, the data showed.
Vietnam’s SOE Equitization Remains Slow
As many as 96.5% of state-owned enterprises (SOEs) underwent equitization as of the end of March this year, but the privatized capital amount from these reached only 8%, according to a report sent to the National Assembly.
Under the report reviewing the restructuring of public investment, SOEs and credit institutions, prepared for the National Assembly’s upcoming question-and-answer session, the divestment from SOEs remains slow, as up to 92% of the state capital has not been equitized.
Over $600 Million of FDI Poured into Property in 5 Months
Vietnam’s real estate market attracted over 600 million USD in foreign direct investment in the first five months of this year, according to the General Statistics Office.
The figure represented a nearly two-fold increase against the same period last year.
Commercial Banks Itching to Raise Deposit Rates
Some commercial banks have entered a new interest rate hike race for long-term deposits by raising rates by 0.1-0.2 percentage point, the Vietnam News Agency (VNA) reported.
According to Vuong Duy Lam, from the National Institute for Vietnam Finance under the Ministry of Finance, the commercials banks are prudent to shake up their capital in attempt to satisfy the State Bank of Vietnam (SBV)’s Circular 06/2016, which requires banks to lower the ratio of short-term funds used for medium and long-term loans from 60% in 2016 to 50% in 2017.
Interest Rates Likely to Stay Stable: Financial Watchdog
The prospect of stable interest rate in 2017 is being supported by macro factors and policies such as reduced pressure in exchange rate and drastic measures in tackling bad debt, the National Financial Supervisory Commission said.
In its latest monthly report, the committee said if the USD/VND exchange rate rises 1%, inflation will increase 0.17 percentage point, while noting that the VND/USD rate in commercial banks and the free market has shown a downward trend since early this year.
Jetstar Pacific Leads in Flight Cancellations, Delays
Low-cost carrier Jetstar Pacific has cancelled and delayed about 15.4% of 568 flights it operated in a week, according to the latest report released by the Civil Aviation Authority of Vietnam (CAA), based on the number of delays and cancelations in four Vietnamese carriers from May 31 to June 6.
Jetstar Pacific was followed by national flag carrier Vietnam Airlines which delayed 380 flights and cancelled ten others, or approximately 15%. VietJet Air came third with 328 delays and four cancellations among 2,311 flights, or 14.4%.
Binh Thuan Boasts Great Potential for Solar Power Development
Five solar power projects worth over 14.8 trillion dong ($651 million) have been approved to invest in the central coastal province of Binh Thuan as of May 2017.
Dry climate and sunny weather, especially in the northern area, are advantages allowing Binh Thuan to develop solar power apart from wind power mills.
Australia Starts Anti-Dumping Probe for Rod in Coils from Vietnam
The Australian Anti-Dumping Commission has opened an anti-dumping investigation on wire rod in coil imports from Indonesia, South Korea, and Vietnam.
According to the Vietnam Competition Authority under the Ministry of Industry and Trade, Vietnam’s products targeted by the investigation bear the HS codes of 7213.91.00.44, 7227.90.90.02, and 7227.90.90.42. Those products are currently not subject to tax when exported to Australia.
Up to 96.2% of Vietnamese consumers who shopped online last year intend to make at least one online purchase in the first half of 2017, according to Mastercard’s latest Online Shopping Survey.
The keenness on online shopping in Vietnam ranks second only to China (97.3%), and above other peers such as India (92.9%), Malaysia (92.8%) and Thailand (87.1%).
Foreign traders net purchased 255.35 billion dong ($11.2 million) worth of shares of Vietnamese listed companies last week, bringing the net buying value to $324.8 million year to June 9, according to exchange data.
MV Index Solutions (MVIS) has included the stock of FLC Faros Construction Company (ROS) in the MVIS Vietnam Index, the underlying index of the Van Eck Vectors Vietnam ETF (V.N.M ETF), in its second-quarter review.
V.N.M ETF added ROS to its portfolio with a weight of 6.5%, making the ticker the fourth-biggest in the basket. ROS was also the sole stock added in the review.

TUAN MINH

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