[Round-up] Vietnam Int’l Bonds Attractive, Brexit Hits Vietnamese Shares

Tuan Minh

18:14 24/06/2016

BizLIVE - International investors are waiting for the Vietnamese government to issue sovereign bonds in overseas markets. Local shares fell after Leave won in the Brexit referendum.

[Round-up] Vietnam Int’l Bonds Attractive, Brexit Hits Vietnamese Shares

Vietnamese shares fell after Leave won in the Brexit referendum.

Market Players Await Vietnam Int’l Bond Issuance
The term of Vietnamese international bonds is attracting attention on the market, which is an important premise for the next issuance and a condition for managing public debts effectively, said Nirukt Sapru, Standard Chartered CEO in Vietnam and ASEAN and South Asia Cluster Markets.
Vietnam should maintain close ties with foreign investors to keep them in the country besides trying to maintain its national credit rating, the CEO said at a meeting with Deputy PM Vuong Dinh Hue.
Vietnam, Poland Asked to Expand Cooperation in Strong Fields
Vietnam and Poland should continue expanding cooperation in fields of their strength and those they have demand for like tourism, education, food processing, and climate change response, as they have yet to fully tap their cooperation potential, the Vietnam News Agency reported.
The suggestion was made by National Assembly Vice Chairman Uong Chu Luu at his meetings with Polish Deputy Marshal of the Sejm (lower house) Malgorzata Kidawa-Blonska, Deputy Marshal of the Senate Adam Bielan, Chairman of the Sejm’s Foreign Affairs Committee Grzegorz Schetyna, and Deputy Chairman of the Senate’s Foreign and European Union Affairs Ryszard Majer, among others.
Vietnam CPI Rises 0.39% on Average Monthly in H1
Vietnam’s consumer price index (CPI) in the first half of the year saw a slight rise at an average of 0.39% each month, reported Vu Thi Thu Thuy, head of the Price Statistics Department under the General Statistics Office (GSO) on June 24.
The average index in the first six months of the year rose 1.72% compared to the same period last year, she said, warning that the price of health care services, education and fuel will pressure the CPI in the rest of the year.
Breakthroughs Needed to Lure Investment in Infrastructure
Deputy Prime Minister Trinh Dinh Dung has asked ministries and localities to make breakthroughs in attracting investment for Public Private Partnership (PPP) infrastructure projects.
The ministries and localities need to redefine PPP projects of priority, which will be screened by the Ministry of Planning and Investment before proposing the amount of capital to be supported by the government.
The ministry was asked to work with the Japan International Cooperation Agency (JICA) and other sponsors to build a mechanism to mobilize Official Development Assistance (ODA) sources for the PPP projects based on the calculations of disbursement of the committed agreements and the suitable loan limit in accordance with law on public debt management.
Hanoi’s Economy Grows 7.3% in H1
Hanoi’s gross regional domestic product (GRDP) expanded 7.3% in the first half of 2016, said the municipal People’s Committee.
The growth was driven by an annual growth of 7.8% in the industry and construction sector, a 7.5% increase in the service sector. The agro-fishery sector grew 2.1% year-on-year in the period.
Indonesian Expo Introduced to Vietnamese Businesses
The Indonesian Embassy in Vietnam on June 23 held a conference to introduce the 31st Indonesian Trade Expo which is scheduled to be held from October 12 to 16 in Jakarta, according to VNA.
According to the embassy, the event this year will focus on five groups of commodities, including home decoration, foods, fashion, life-style, and innovative products.
Deputy PM Directs Better ODA Use
Deputy Prime Minister Pham Binh Minh has requested improving the effective use of official development assistance (ODA) and preferential loans to ensure the safety of public debts, VNA reported.
The Deputy PM, who is also head of the National Steering Committee for ODA and Preferential Loans, asked ministries and agencies to comply with the government’s Decree No.16/2016/ND-CP dated March 16, 2016 on ODA management and use and a scheme on attracting, managing and using ODA and preferential loans between 2016 and 2020.
Petrolimex Earns $180 Million from Selling Stake for Japanese Firm
Vietnam National Petroleum Group (Petrolimex), the country’s largest fuel distributor, has raked in $180 million from selling 103.5 million shares or an 8% stake to JX Nippon Oil & Energy Vietnam Co.
With the transaction, Petrolimex has raised its registered capital to 11.39 trillion dong ($506 million).
Vietnam Shares End 1.82% Lower on Brexit
The VN Index of the Hochiminh Stock Exchange finished down 1.82% to 620.77 on Friday after Britons voted to leave the European Union, off an intraday low of 597.92.
The government of Ha Tinh province, which houses Formosa’s controversial steel mill, has asked its agencies to look into a project worth $2.5 billion proposed by Taiwan’s Wei Yu Engineering Co., Ltd., and report back by June 30, 2016.
Disbursements of foreign direct investment (FDI) in Vietnam have reached $7.25 billion in the first six months of this year, rising 15.1% from the same period of last year, according to data of the Ministry of Planning and Investment.
Overseas investors pledged to invest a total of $11.28 billion in the country in the period, soaring 105.5% from a year earlier, of which $7.5 billion was registered for 1,145 newly-licensed projects.