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Vietnam News Roundup: July 5 to July 11


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Banking and Finance News

Corporate bond issuances jumped in June

There were 30 corporate bond issuances in June worth VND 42,147 billion or US$1.66 billion representing a more than two-fold increase over corporate bond issuances in May, according to data compiled by the Vietnam Bond Market Association. This brings the total value of corporate bond issuances at the halfway mark in 2024 to VND 115,207 or US$4.53 billion, about 34 percent of the value of corporate bonds issued over the whole of 2023. 

Vietnam bank bond issuances skyrocket in June

Vietnam’s banks issued 42,147 billion or US$1.51 billion worth of bonds in June across 24 bond issuances, according to data from the Vietnam Bond Market Association. This was a significant jump over May in which they carried out just 19 bond issuances worth VND 9,945 billion or US$391.2 million.

State Bank short-term lending hits US$2.4 billion

The State Bank of Vietnam has continued to issue treasury bills to suck up excess liquidity in the economy. There are currently US$4.8 billion worth of T-bills outstanding as of the close of business on July 11. Also of note, the State Bank has outstanding loans to local banks to the tune of US$2.4 billion.

See also: Vietnam Dong Tracker: Daily Updates

Outstanding loans

IssuedDaysMaturingVNDUS$% p.a.
4-Jul711-Jul5,178$203,616,8674.50
5-Jul712-Jul5,850$230,061,7804.50
8-Jul715-Jul10,000$393,266,0344.50
9-Jul716-Jul10,000$393,267,6074.50
10-Jul717-Jul15,000$589,898,0674.50
11-Jul718-Jul15,000$589,898,0674.50
Total61,0272,400,008,422

*billions

Outstanding T-bills

IssuedDaysMaturingVNDUS$% p.a.
13-Jun2811-Jul2,650$104,216,0204.25
27-Jun1411-Jul9,200$361,806,5604.50
14-Jun2812-Jul700$27,528,7604.25
28-Jun1412-Jul6,100$239,893,4804.50
17-Jun2815-Jul2,650$104,216,0204.25
1-Jul1415-Jul12,300$483,719,6404.50
18-Jun2816-Jul5,150$202,533,0204.25
2-Jul1416-Jul13,850$544,676,1804.50
19-Jun2817-Jul6,450$253,657,8604.25
3-Jul1417-Jul14,100$554,507,8804.50
20-Jun2818-Jul7,550$296,917,3404.25
4-Jul1418-Jul9,550$375,570,9404.50
5-Jul1419-Jul12,000$471,921,2074.50
8-Jul1422-Jul2,300$90,451,6404.50
9-Jul1423-Jul4,500$176,970,6004.50
10-Jul1424-Jul5,050$198,600,3404.50
11-Jul1425-Jul7,050$277,253,9404.50
Total121,150$4,764,441,427

*billions

Car news

Singapore EV battery maker increases Vietnam investment by US$5.5 million

The Singapore subsidiary of Hong Kong-based Leoch Battery intends to invest an additional US$5.5 million in its southern Vietnam operations, bringing its total investment to US$35.1 million. This is expected to increase the factory’s capacity to 6.5 million auto batteries and 200,000 lithium battery components a year.

Notably, Vietnam is very much a part of the wider global move toward electric vehicles. Specifically, EV sales in the Vietnamese market are predicted to reach an average annual growth of 25.8 percent from 2023 to 2032, up to 65,000 units from 8,400 in 2022, according to BMI

 See also: Vietnam’s Automotive Industry 2024: Foreign Investor Cheat Sheet

Energy news

State power provider records 2023 loss of more than US$1 billion

Vietnam’s state electricity provider, Electricity Vietnam or EVN, recorded a loss in 2023 of VND 26.77 trillion or US$1.05 billion. The bulk of that loss was made up of interest payments which totalled VND 18.99 trillion or US$747.1 million. This is after a loss in 2022 of VND 20.75 trillion or US$816 million.

Of note, retail electricity prices in Vietnam are regulated and, though permitted, price rises are not all that common. This has led to EVN often selling electricity below cost price. Back in  January, it was losing about VND 142.5 per kilowatt-hour sold. Though there has been a price increase since then it was only 3 percent which seems unlikely to help clear the mountain of debt the state power provider has now accumulated.

See also: Electricity in Vietnam: Foreign Investor Cheat Sheet 2024

Manufacturing news

Japan noodle firm to invest US$87 million in northern Vietnam

Acecook Vietnam, a subsidiary of the Japanese instant noodle firm Acecook, plans to begin operations of a VND 2,200 billion or US$ 86.6 million investment in the northern province of Hung Yen in the second quarter of 2027. 

Of note, Vietnam’s instant noodle market comprises about 50 manufacturing enterprises, both domestic and foreign. Acecook and Masan together hold the largest market share of 33 percent at the end of 2022, according to a report by UK-based market research firm Euromonitor.

See also: Manufacturing in Vietnam 2024: Ultimate Guide

Retail news

Malaysian hardware retailer establishes first store in Vietnam

Malaysian home improvement retailer, Mr DIY has opened its second store in Vietnam, following the opening of its first store in the country last year, according to Inside Retail. The new store is located in Aeon Mall Tan Phu Celadon in Ho Chi Minh City.

See also: How to Open a Retail Store in Vietnam: Ultimate Guide 2024

Stock market news

Vietnam records just one IPO in first half 2024, tied lowest among SEA peers

Vietnam recorded just one IPO in the first half of 2024, raising US$37 million, accounting for about 3 percent of the total value of IPOs among the six Southeast Asian countries included in Deloitte’s Southeast Asia Mid-Year IPO Snapshot 2024 report.

That single IPO was Hanoi-based DNSE Securities which officially listed under the ticker DSE on the Ho Chi Minh Stock Exchange at the start of July. Notably, this was the first new listing of a securities firm on the local bourse in the last five years.

Foreign traders net-with draw US$161.7 million from local bourse

Foreign traders have continued to sell down their positions in the Ho Chi Minh City Stock Exchange. In total, just over US$161.7 million was withdrawn from the market over the last five trading sessions to the close of business on July 11. This brings the total net withdrawn from the market by foreign traders to just shy of US$2.29 billion so far this year.

See also: Vietnam’s Foreign Investor Stock Sell-Off: Unpacked 2024

Foreign trader activity, last five trading days

BuySellChange
DateVND*US$VND*US$VND*US$
5/71,572$61,821,7301,945$76,490,626-373-$14,668,896
8/71,635$64,299,3183,900$153,374,520-2,265-$89,075,202
9/72,548$100,204,6862,997$117,862,420-449-$17,657,733
10/73,891$153,020,5794,922$193,566,510-1,031-$40,545,931
11/72,412$94,856,2422,406$94,620,2816$235,961
Total12,058$474,202,55416,170$635,914,356-4,112-$161,711,802

*billions

Source: www.hsx.vn 

Trade news

Vietnam exports up 14.9 percent January to June

Vietnam’s exports hit US$33.7 billion in June bringing the country’s total exports for the year to US$190.7 billion, an increase over 2023 of 14.9 percent. This growth was buoyed by double-digit increases in exports of computers, phones, and garments and textiles.

See the data here: Vietnam Exports Tracker: June 2024 Update [data set] 

Vietnam imports up 17.3 percent January to June

Vietnam’s imports hit US$30.5 billion in June bringing the country’s total imports for the year to US$178.9 billion, an increase over 2023 of 17.3 percent. This growth has been buoyed by double-digit increases in imports of coal, ores and other minerals products, and iron and steel.

See the data here: Vietnam Imports Tracker: June 2024 Update [data set] 

US Department of Commerce finds Vietnam paper plates subsidised 237.65 percent

The US Department of Commerce–or the DOC–has made a preliminary finding in a case brought by several paper plate producers in the US against paper plates from several Vietnamese manufacturers which the claim are being unfairly subsidised. 

Five of the six firms investigated were found to be subsidised to the tune of 237.65 percent. Notably, four of these firms failed to respond to the DOC’s request for information at all, and one failed to provide all of the information requested. The sixth, Go-Pak Paper Products Vietnam, the only company to sufficiently engage with the DOC, was found to be subsidised by just 5.48 percent.

Of note, Vietnam has requested a review of its non-market economy status, under the guise that it is being unfairly treated in trade remedies cases. In the context of the DOCs’ comments above, however, it seems unlikely market economy status will make much of a difference.

See also: Unpacked: Vietnam’s Non-Market Economy Review

Waste management news

South Korea to develop resource recycling industrial park in Vietnam

A memorandum of understanding for a resource recycling industrial park has been signed by Vietnam’s Ministry of Natural Resources and Environment and South Korea’s Ministry of Environment.

Of note, Vietnam is one of the world’s largest waste producers, generating roughly 60,000 metric tons of waste daily. With just 10 percent recycled and the bulk of what remains buried.

The week ahead

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