Vietnam’s shrimp industry has found itself surrounded by difficulties since the beginning of this year due to COVID-19 but many exporters are now looking forward to a comeback in the second half after the pandemic is brought under control globally.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), the country’s shrimp exports grew 2.6 percent to 383 million USD in the first two months of this year.

Despite posting a 37.5-percent decline in exports to one of its leading customers - China - which was in a nationwide lockdown, exports to other markets saw significant growth, for example Japan (16.5 percent), the US (22.3 percent), and the Republic of Korea (RoK) (12.4 percent).

The sector began feeling the pinch from COVID-19 in March, however, when the pandemic quickly spread throughout the rest of the world. Shrimp export value tumbled 15 percent year-on-year during the month to just 208 million USD, resulting in Q1 shipments falling 4.3 percent from a year earlier.

Most of Vietnam’s key markets have been badly hit by COVID-19, such as the EU and the US, where importers are suffering from shrinking sales and high inventories.

Authorities across Europe, the US, and the rest of the world have forced bars and restaurants to shut down and people to stay home, hitting seafood orders and causing prices to tumble.

VASEP estimates that about 20-40 percent of orders have been delayed or cancelled, with new orders being few and far between.

Domestic exporters have made every effort to remain resilient and survive amid the spread of the pandemic. Many have shifted focus to new foreign markets, boosted sales domestically, or created new processed products for supply to foreign retailers.

Insiders believe that if the pandemic fades by the end of the second quarter then global shrimp demand will likely rebound shortly after. They have advised local exporters to retain a certain amount of shrimp in stock so they are ready when orders return.

According to analysis from Rabobank, a fall in orders during the first half of 2020 will likely affect prices in the second half, since there may be large inventories in place.

Prices may fall during the current crisis but a steep rise is likely later in the year as supply dries up, assuming the market returns to normal, Robobank said./.

Bình Phước Province promises enterprises relief from difficulties caused by pandemic

The Bình Phước Province administration has worked with the developers of 13 industrial zones to remove difficulties faced by their tenants due to the COVID-19 pandemic.

These IZs have attracted more than US$2.1 billion worth of foreign investment and VNĐ6.3 trillion (US$268 million) worth of domestic investment and provided jobs to thousands of workers.

But the pandemic has interrupted production, causing 17 factories to shut down and 4,000 workers to lose their jobs or suffer reduced incomes.

The developers asked the People’s Committee to change land lease payments from annual to one-time mode.

Their tenants complained about the difficulties in arranging transportation for workers due to the social distancing requirement now.

Nguyễn Văn Lợi, Secretary of the province Party Committee, appreciated the companies for bringing their difficulties to authorities’ notice and told them to strictly follow social distancing norms to ensure workers’ safety.

He directed related departments and district authorities to quickly mitigate the difficulties faced by the businesses.

He also promised there would be policies to support workers affected by the pandemic.

Between January 29 and March 25 295 foreign workers returned to Bình Phước and were under medical supervision and in quarantine as directed by the Government. 

Binh Phuoc cashew processors face shortage of capital, raw materials

Binh Phuoc Province, known as the "capital of cashew" in the country, is facing problems processing cashews due to limited raw materials and capital.

The province has around 134,000 hectares of land for cashew, and over 1,400 processing and exporting businesses that sell to markets such as the US, Australia and China.

Only 30 of them are able to import raw cashews for processing. The rest are small and micro businesses.

Processing businesses need around 600,000 – 800,000 tonnes of raw cashew annually, but the province is only able to provide 200,000 tonnes. Imports, which come from African countries, Indonesia and Cambodia, have high costs, which reduces profitability.

During the first two months of the year, the province exported US$61.7 million worth of cashews, and the value of each tonne of cashews was 23.1 per cent lower than that of the same period last year.

Vu Manh Tung, owner of a cashew processing facility in Phu Rieng District, said there was a shortage of raw materials because businesses were not investing enough in material production zones, and co-operation between businesses and farmers was weak.

Other cashew processing facilities in the province are also receiving fewer orders compared to last year due to COVID-19, and some small businesses have had to close down.

In addition, lack of access to capital is a major concern, said Nguyen Anh Hoang, director of the Department of Industry and Trade.

Many businesses have had to take out loans, and when there is market turbulence, banks issue fewer loans or tighten loan conditions, making it harder for businesses to get loans.

The province is working on a plan for concentrated cashew production areas that will improve value chains and link farmers to businesses. It is also facilitating investment in hi-tech, traceability, and geographical indicators.

Businesses have been encouraged to diversify their products and improve marketing to their consumers. 

Cashew industry likely to miss export target due to pandemic: Vinacas

Pham Van Cong, Chairman of the Viet Nam Cashew Association (Vinacas), has said the cashew industry will struggle to achieve its export target of US$4 billion this year due to the novel coronavirus (COVID-19) pandemic.

The disease has caused many European and American countries to restrict the movement of people, so the demand for food reserves increased but there is difficulty in transport and processing of cashew nuts, according to Cong.

Some experts and cashew processors have forecast that cashew nut prices will fall further because it is not a main food. Consumers will prioritise spending on main foods during the pandemic.

Therefore, Cong told the Sai gon Giai phong (Liberated Saigon) newspaper that Viet Nam's cashew exports were expected to decrease in both volume and value. The total export value of cashew is estimated to reach $3 billion this year, $1 billion lower than the target.

According to the Ministry of Industry and Trade, the cashew export value in the first quarter of this year reached $644 million, an increase of only 0.8 per cent over the same period last year due to COVID-19.

The pandemic has also forced the association to delay the 2020 International Cashew Conference from March 2020 to next year, and also re-arrange plans on organising trade promotion delegations to China under the National Trade Promotion Programme, according to Cong.

With that situation, the association has recommended cashew processing and export enterprises to consider carefully before deciding to import raw cashew from other countries for processing, including from African countries and Cambodia. The enterprises should not purchase raw materials when they do not have yet cashew nut export contracts.

They need to collect market information from many sources, thereby assessing the local and global cashew markets and impacts on those markets, especially the impact of the pandemic, to ensure their production and business efficiency.

At the same time, cashew farmers are also facing many difficulties due to the pandemic. Therefore, Vinacas has called on the enterprises to promote purchasing of raw materials from the farmers. That will contribute to maintaining development of the local raw material regions. 

Travel industry demands coronavirus support

The HCM City Department of Tourism said it has submitted to the State Bank of Viet Nam a list of 31 travel and tourism firms that are seeking help to make it through the disruption caused by the COVID-19 pandemic.

They want new loans, cuts in their bank loan interest rates and more time for repayment so that they could remain in business and keep their employees.

The tourism industry is in urgent need of Government assistance to retain its workforce and recover as soon as the pandemic ends, Tran The Dung, deputy director of Young Generation Travel, said.

Nguyen Quoc Ky, general director of Vietravel, said the industry, which has been accounting for more than 10-11 per cent of the city’s economy for the last few years, needs a relief package from the Government.

It is now difficult for travel firms to get loans from banks since most of them have no assets to mortgage, he said.

Nguyen Thi Khanh, deputy head of the city Tourism Association, said the pandemic has crippled businesses and caused the loss of thousands of jobs.

Businesses find it difficult to access aid packages from the Government and banks, she said.

In the first quarter 90 per cent of more than 1,000 small and medium-sized travel businesses in the city suspended operations as the coronavirus brought tourism to a standstill.

Businesses in the city project losses of trillions of dong in the second quarter. 

Moody's reaffirms B1 credit rating for HDBank despite pandemic challenge

Global credit ratings agency Moody's Investors Service has reaffirmed the B1 credit rating for HDBank amid a challenging market situation due to the impact of the COVID-19 pandemic and social distancing orders from the Government.

Moody’s said the bank has good profitability, improving capitalisation and good portfolio of liquid assets and is making solid progress in risk management.

In its 2019 financial report released recently, HDBank had total consolidated assets of nearly VND229.48 trillion (US$9.78 billion), equity of VND20.38 trillion ($867.8 million) and profit before tax of nearly VND5.02 trillion ($213.8 million), its highest ever.

Return on average assets (ROAA) and return on average equity (ROAE) were 1.8 per cent and 21.6 per cent.

HDBank’s non-performing loan ratio continued to be strictly controlled, at less than 0.98 per cent, placing it among the banks with the lowest NPL ratios in the banking industry, a status it has enjoyed for many years.

Last year it received approval from the State Bank of Vietnam to adopt Basel II standards ahead of schedule, and its capital adequacy ratio (CAR) reached 11.2 per cent, much higher than the minimum of 8 per cent prescribed.

In the first three months of this year, despite the COVID-19 pandemic and the big changes it wrought in the domestic and global markets, HDBank achieved very positive business results.

Consistent with its sustainable development strategy, harmonising its economic development goals and accompanying the community in all activities, HDBank has always come up with timely development strategies suitable for each period.

In response to the COVID-19 outbreak, HDBank quickly established an emergency committee for epidemic prevention and control, and has carried out effective measures. It has taken practical measures to protect the health of its employees and customers, and ensure continuous and safe operation of its entire system nation-wide.

In joining hands to support the economy and customers in this challenging time, HDBank is offering many preferential programmes. It has set aside VND10 trillion ($426 million) to lend to producers and corporates who supply goods and services to supermarkets at interest rates starting at 6.5 per cent, VND5 trillion ($213 million) to lend to small and medium-sized enterprises and VND3 trillion ($127.6 million) for cutting fees and interest rates for enterprises that supply drugs and medical equipment.

It also offers preferential loans to individual and super small business customers affected by the pandemic at interest rates that are 2-4.5 percentage points lower than normal.

Besides, it has a VND1 trillion ($42,703) package to support the agricultural supply chain to ensure production and domestic supply of rice and help businesses facing difficulties due to saltwater intrusion in the Mekong Delta.

It is also enhancing technology application and promoting cashless payment solutions. 

Phu Nhuan Jewellery sees revenue up but profit down in Q1

Phu Nhuan Jewellery JSC (PNJ), the largest jewellery retailer in Viet Nam, reports revenue up 5 per cent but profit down 4 per cent in the first quarter of this year.

The company earned revenue of VND5 trillion (US$213 million) and post-tax profit of VND411 billion in Q1.

This year, PNJ targets to achieve revenue of more than VND19 trillion and post-tax profit of VND1.35 trillion. Thus in Q1, the company completed 26% of the revenue target and 30% of the profit target.

Particularly in March, despite difficulties due to the COVID-19 pandemic, PNJ's monthly revenue still recorded a growth rate of 6 per cent over the same period last year, mainly thanks to the growth of 75 per cent of revenues from the sale of gold pieces.

During the month, retail sales decreased by 10 per cent due to temporary closures and social distancing orders under the Government's directives to prevent and combat the COVID-19 pandemic.

PNJ has closed 85 per cent of its stores since the last week of March. Of those, all stores in HCM City and Ha Noi, which contributes 55 per cent of total revenue, have been closed. This greatly affects PNJ's profit, as 90 per cent of the company's gross profit comes from the jewellery retail segment.

Although revenue from online sales in Q1 increased by 173 per cent against last year, the proportion of online sales was still very small, accounting for only 1 per cent of total revenue.

This year, PNJ targets revenue growth and profit growth of 12 per cent and 13 per cent, respectively.

However, Rong Viet Securities JSC (VDSC) said the current situation could make the plan infeasible.

"COVID-19 is greatly affecting PNJ's business results. The jewellery retail segment is suffering heavily from social distancing orders and temporary closures," VDSC said.

Cash-rich firms more resilient amid pandemic

Cash-rich companies are in much better shape to weather market crises amid the impact of the COVID-19 pandemic than their peers on the stock market, said VNDirect Securities Corporation (VNDS).

“The COVID-19 pandemic has not only caused a global disruption but also threatened to bring about a worldwide economic recession,” stated the newly released report by VNDS.

Investments in companies with strong finances help safeguard returns during market crises because businesses with ample cash will be better able to cope with challenges and recover faster than others, VNDS said.

“At this time, the COVID-19 pandemic acts like a natural selection process, opening up new business opportunities, especially for businesses with strong financial capacity to gain market share, leaving their opponents far behind,” VNDS said.

VNDirect Securities Corporation has filtered out businesses with abundant cash balances to help investors determine the stocks with high investment potential.

To classify businesses, VNDirect applied a filtering method to all 1,023 stocks on the three floors of HoSE, HNX and UPCOM, excluding companies in the banking, insurance and securities VNDirect.

Under VNDS's filtering method, a cash-rich company has average weekly liquidity, or matched volume, of more than 10,000 shares; market capitalisation of over VND200 billion (US$8.5 million), net cash/market capitalisation ratio of more than 50 per cent and debt/equity ratio lower than 1.

Based on the filtered list, VNDS expects recovery from oil and gas stocks such as Petrovietnam Fertilizer & Chemicals Corporation (DPM), PetroVietnam Technical Services Corporation (PVS), PetroVietnam Oil Corporation (OIL) and PetroVietNam Low Pressure Gas Distribution JSC (PGD).

The industrial real estate and logistics stock groups are also expected to recover faster than other sectors thanks to the movement of capital from China to Viet Nam and free trade agreements involving Viet Nam.

Meanwhile, the construction industry, especially the civil construction sector, is not tipped for success due to the gloomy real estate market in 2020.

Despite rising demand for housing, the postponement of project licensing and capital pressure will weigh on real estate developers in the post-disease period, VDNS said. 

PV Gas set for huge profit decrease

PetroVietnam Gas Corporation JSC (PV Gas) expects to see massive sales and profit decreases this year.

The firm predicts it will record more than VND66 trillion (US$2.79 billion) in sales and VND66.2 billion in profit after tax for 2020, down 13 per cent and 45 per cent respectively compared to last year.

PV Gas’s management board said in the firm's annual report that it aimed to ensure the progress of investment projects which will secure the use of 9.2 billion cubic metres of gas for local households.

The report said the global economic and political situation, especially the COVID-19 pandemic, meant there were a lot of problems to cope with.

The firm added that the increasing cost of maintaining its facilities, declining sources of gas and lower prices for the products created more problems.

PV Gas's sales and profits plummeted in the first quarter. The firm earned VND17.5 trillion in revenue, down 6.6 per cent from the same period last year while pre-tax profit and post-tax profit also fell about 31 per cent year-on-year to VND2.6 trillion and VND2.1 trillion, respectively.

According to Phu Hung Securities Joint Stock Company (PHS), global oil prices are still unstable due to a sharp decrease in demand caused by the pandemic. Oil prices have plummeted from $60 barrel at the beginning of 2020 to only $20 and fluctuated sharply.

PHS said as the pandemic was still complicated, it would continue to affect production and trading of natural gas, causing potential losses for revenue and gross profit PV Gas.

However, the securities firm also stated that as PV Gas’s growth driver was its exclusive distribution of natural gas in Viet Nam, it should be able to cope. PV Gas has a 100 per cent market share of natural gas and is the top LPG supplier, accounting for 75 per cent of LPG market share.

Gas demand for gas power plants is forecast to continue to grow strongly due to increased demand. In the long term, Viet Nam's LPG market has a lot of potential for developing residential and LPG needs for industrial customers, said the securities firm.

Shares of PV Gas with the sticker of GAS fell by more than 41.5 per cent in the first quarter. However, in the first half of April, along with the recovery of the stock market, it increased by 21.5 per cent.

Yesterday, each share of GAS was rated at VND67,700 on the Ho Chi Minh Stock Exchange. 

Thailand’s tourism hard hit by COVID-19 pandemicThailand is likely to welcome only 16 million foreign tourists in 2020, much lower than the pre-COVID-19 pandemic target of 40 million, according to the Tourism Authority of Thailand (TAT).

The estimates have the country losing almost 24 million international tourist arrivals and 1.9 trillion baht (58.4 billion USD) in revenue.

The TAT also forecast the number of domestic holiday-makers stand at 60 million, far below the target of 172 million before the COVID-19 outbreak.

Total revenue of the tourism sector is estimated at 1.12 trillion baht (34.4 billion USD) in 2020, down 62.8 percent from the record 3.01 trillion baht in 2019.

TAT Governor Yuthasak Supasorn said that this revised forecast assumes tourism activities can resume in May, with the outbreak in Thailand levelling off while overseas infections subside.

The industry needs to watch the situation closely before commencing business, he noted, adding while the number of new COVID-19 cases in Thailand is falling on a daily basis, the tourism sector can't drop its guard. Instead it should wait for the related authorities to give the final say on when to lift the lockdown or travel restrictions.

Tourism has been the driving force for Thailand’s growth in recent years. Before the COVID-19 outbreak, the country expected that revenues from the industry would contribute at least 20 percent to the nation’s GDP this year. However, tourism was the first industry hard hit by the pandemic.

Statistics showed that the sector’s revenue decreased by nearly 40 percent in the first quarter to 335 billion baht, while the number of foreign tourists fell by 38 percent to 6.7 million.

By April 18, the country had recorded 2,733 infection cases, including 47 fatalities./.

Phu Nhuan Jewellery sees revenue up but profit down in Q1

Phu Nhuan Jewellery JSC (PNJ), the largest jewellery retailer in Viet Nam, reports revenue up 5 per cent but profit down 4 per cent in the first quarter of this year.

The company earned revenue of VND5 trillion (US$213 million) and post-tax profit of VND411 billion in Q1.

This year, PNJ targets to achieve revenue of more than VND19 trillion and post-tax profit of VND1.35 trillion. Thus in Q1, the company completed 26% of the revenue target and 30% of the profit target.

Particularly in March, despite difficulties due to the COVID-19 pandemic, PNJ's monthly revenue still recorded a growth rate of 6 per cent over the same period last year, mainly thanks to the growth of 75 per cent of revenues from the sale of gold pieces.

During the month, retail sales decreased by 10 per cent due to temporary closures and social distancing orders under the Government's directives to prevent and combat the COVID-19 pandemic.

PNJ has closed 85 per cent of its stores since the last week of March. Of those, all stores in HCM City and Ha Noi, which contributes 55 per cent of total revenue, have been closed. This greatly affects PNJ's profit, as 90 per cent of the company's gross profit comes from the jewellery retail segment.

Although revenue from online sales in Q1 increased by 173 per cent against last year, the proportion of online sales was still very small, accounting for only 1 per cent of total revenue.

This year, PNJ targets revenue growth and profit growth of 12 per cent and 13 per cent, respectively.

However, Rong Viet Securities JSC (VDSC) said the current situation could make the plan infeasible.

"COVID-19 is greatly affecting PNJ's business results. The jewellery retail segment is suffering heavily from social distancing orders and temporary closures," VDSC said. 

Cash-rich firms more resilient amid pandemic

Cash-rich companies are in much better shape to weather market crises amid the impact of the COVID-19 pandemic than their peers on the stock market, said VNDirect Securities Corporation (VNDS).

“The COVID-19 pandemic has not only caused a global disruption but also threatened to bring about a worldwide economic recession,” stated the newly released report by VNDS.

Investments in companies with strong finances help safeguard returns during market crises because businesses with ample cash will be better able to cope with challenges and recover faster than others, VNDS said.

“At this time, the COVID-19 pandemic acts like a natural selection process, opening up new business opportunities, especially for businesses with strong financial capacity to gain market share, leaving their opponents far behind,” VNDS said.

VNDirect Securities Corporation has filtered out businesses with abundant cash balances to help investors determine the stocks with high investment potential.

To classify businesses, VNDirect applied a filtering method to all 1,023 stocks on the three floors of HoSE, HNX and UPCOM, excluding companies in the banking, insurance and securities VNDirect.

Under VNDS's filtering method, a cash-rich company has average weekly liquidity, or matched volume, of more than 10,000 shares; market capitalisation of over VND200 billion (US$8.5 million), net cash/market capitalisation ratio of more than 50 per cent and debt/equity ratio lower than 1.

Based on the filtered list, VNDS expects recovery from oil and gas stocks such as Petrovietnam Fertilizer & Chemicals Corporation (DPM), PetroVietnam Technical Services Corporation (PVS), PetroVietnam Oil Corporation (OIL) and PetroVietNam Low Pressure Gas Distribution JSC (PGD).

The industrial real estate and logistics stock groups are also expected to recover faster than other sectors thanks to the movement of capital from China to Viet Nam and free trade agreements involving Viet Nam.

Meanwhile, the construction industry, especially the civil construction sector, is not tipped for success due to the gloomy real estate market in 2020.

Despite rising demand for housing, the postponement of project licensing and capital pressure will weigh on real estate developers in the post-disease period, VDNS said. 

PV Gas set for huge profit decrease

PetroVietnam Gas Corporation JSC (PV Gas) expects to see massive sales and profit decreases this year.

The firm predicts it will record more than VND66 trillion (US$2.79 billion) in sales and VND66.2 billion in profit after tax for 2020, down 13 per cent and 45 per cent respectively compared to last year.

PV Gas’s management board said in the firm's annual report that it aimed to ensure the progress of investment projects which will secure the use of 9.2 billion cubic metres of gas for local households.

The report said the global economic and political situation, especially the COVID-19 pandemic, meant there were a lot of problems to cope with.

The firm added that the increasing cost of maintaining its facilities, declining sources of gas and lower prices for the products created more problems.

PV Gas's sales and profits plummeted in the first quarter. The firm earned VND17.5 trillion in revenue, down 6.6 per cent from the same period last year while pre-tax profit and post-tax profit also fell about 31 per cent year-on-year to VND2.6 trillion and VND2.1 trillion, respectively.

According to Phu Hung Securities Joint Stock Company (PHS), global oil prices are still unstable due to a sharp decrease in demand caused by the pandemic. Oil prices have plummeted from $60 barrel at the beginning of 2020 to only $20 and fluctuated sharply.

PHS said as the pandemic was still complicated, it would continue to affect production and trading of natural gas, causing potential losses for revenue and gross profit PV Gas.

However, the securities firm also stated that as PV Gas’s growth driver was its exclusive distribution of natural gas in Viet Nam, it should be able to cope. PV Gas has a 100 per cent market share of natural gas and is the top LPG supplier, accounting for 75 per cent of LPG market share.

Gas demand for gas power plants is forecast to continue to grow strongly due to increased demand. In the long term, Viet Nam's LPG market has a lot of potential for developing residential and LPG needs for industrial customers, said the securities firm.

Shares of PV Gas with the sticker of GAS fell by more than 41.5 per cent in the first quarter. However, in the first half of April, along with the recovery of the stock market, it increased by 21.5 per cent.

Yesterday, each share of GAS was rated at VND67,700 on the Ho Chi Minh Stock Exchange. 

Cambodia: Air passenger numbers drop over 90 percent due to COVID-19

Cambodia’s aviation industry is almost completely decimated due to travel restrictions triggered by the COVID-19, with air passenger numbers dropping more than 90 percent as of April this year, the Khmer Times reported.

On a positive note, the sector is expected to make a recovery some time in the second half of the year, the newspaper said.

According to Sin Chansereyvutha, spokesperson of the Cambodian State Secretariat of Civil Aviation (SSCA), passenger numbers fell by more than 20 percent in January, over 50 percent in February, over 70 percent in March and more than 90 percent in April.

The impact of COVID-19 on the aviation sector has been “huge,” he told a press conference on April 16.

The International Civil Aviation Organisation (ICAO) has recently forecast two scenarios on the impact of the COVID-19 pandemic, based on either a V or U-shaped scenario.

The V-shaped would compare with the experiences of Severe Acute Respiratory Syndrome (SARS) in 2003. Based on this scenario, the aviation sector drops fast but quickly recovers.

Currently there are no local airline companies that have announced bankruptcy, said Sin. Local carriers are surviving as the Cambodian government’s policy has offered exemption of minimum tax for three months and allowed airlines to set up debt-repayment plans, he added.

In addition, some flights from the Republic of Korea, Japan, China and Dubai are still operating.

At present, Cambodia has five domestic airlines and one national carrier. The majority of the local airlines are targeting the Chinese market which has also been severely impacted by the COVID-19 pandemic.

There are almost no flights in Cambodia; while China allows only one flight per week for one airline from Cambodia. They are losing huge profits and they have cut staff and reduced staff salaries, Sin said.

Though during this tough situation in the aviation sector, there are still some new investments in airports and the expansion of existing international airports are still ongoing, he noted./.

Thai economy suffers worst setback in 60 years

The COVID-19 pandemic has hit Thailand’s economy harder than any event in the last six decades, with its GDP projected to fall 4 percent and 10 million jobs to be lost, according to the University of the Thai Chamber of Commerce (UTCC).

Director of the UTCC’s Centre for Economic and Business Forecasting Thanawat Phonwichai said the Thai Chamber of Commerce (TCC) confidence index fell to its lowest point in March since January 2018 as a result of the pandemic.

The country could still recover in the fourth quarter, he added, if the situation stabilises.
The centre predicts Thailand’s economy will contract by about 4 percent in 2020, stemmed in part by the government’s 1.9 trillion baht (58 billion USD) stimulus measures. Without this help, it said, the figure would be 8.8 percent.

It also proposed the Government lower interest rates, suspend debt and tax payments, and reduce electricity and water tariffs while compensating employees who are outside of the social security system.

In order to support local people affected by COVID-19, the Ministry of Commerce has recently launched a campaign cutting prices of 72 consumer goods by between 5 and 58 percent, which will remain in place until June 30.

Goods include food and beverages, frozen food, additives, daily consumer products, and body care and hygiene products./. 

Vietjet secures longer repayment timeline on aircraft loan

Vietnamese airline Vietjet has announced reaching an agreement with lenders HSBC, Citibank, and the World Bank to delay the repayment of its loans.

The debt Vietjet has secured a delay and moratorium on is one it took up to purchase aircraft. This postponement could ensure temporary liquidity for Vietjet amidst a jittery market.

“Vietjet has reached agreements with domestic and international financial institutions to delay the payment for 70-80 per cent of our aircraft for 3-12 months,” Vietjet said in a statement.

The budget airline also reaffirmed its plan of slashing operating expenses by 30-70 per cent in a bid to shore up capital. Deferring loan repayment is one of the ways.

As the COVID-19 pandemic continues to spread, the global air industry is recalibrating its response to a threat that might be its worst since the financial crisis a decade ago.

“This is part of our efforts to maintain normal operations and prepare for a strong rebound when the pandemic is over,” Vietjet vice president Nguyen Thi Thuy Binh told Reuters.

Binh also said the company’s cargo volume has increased significantly during the lockdown, including transporting medical supplies.

Domestic airlines on April 15 evening announced they are increasing flight frequency between Hanoi and Ho Chi Minh City from April 16 onwards.

Vietjet plans to operate two daily flights between the two cities, one daily flight each between Hanoi/Ho Chi Minh City and Danang.

The airline made up the largest portion of the aviation market at the end of 2019 with around 42.2 per cent. However, the escalating tensions of the outbreak have pushed Vietjet into financial struggles, with the number of flights in March dropping 39.3 per cent on-year.

Investors, on the flip side, cheered Vietjet's repayment postponement, as shares soared in recent days. Vietjet's ticker (VJC) closed higher, to reach VND117,400 ($5.10) as of April 17.

Earlier this month, local aviation market was bracing to welcome its fifth player named Vietravel Airlines with the total investment of $30.43 million. The airline will be headquartered at Phu Bai International Airport (the central province of Thua Thien-Hue).

Viet Tien foresees 70 per cent drop in profit due to COVID-19

The COVID-19 lockdown deeply altered Viet Tien Garment Corporation's (UPCoM: VGG) outlook, forcing it to revise its profit plan to an estimated drop of 70 per cent this year.

Viet Tien has just published the documents related to its coming shareholders' meeting that will take place on May 24.

The global textile market in 2019 experienced many rises and falls due to the US-China tension, protectionism, and changing technical barriers. This also hampered consumption at big markets, putting much burden on garment firms.

The difficulties of Viet Tien are not unique. The company’s latest financial report showed that its net sales last year reached nearly VND9.036 trillion ($392.87 million), down 7 per cent on-year. The pre-tax and after-tax profit hit VND504 billion ($21.9 million) and VND418 billion ($18.17 million), down 13 and 12 per cent on-year, respectively.

Despite the fact that the 2019-performance was not as bright as expected, the firm’s leader board is still confident in its capacity for profit. According to the documents, most subsidiaries and joint-venture companies earned profit. As of the end of 2019, Viet Tien’s total consolidated assets were valued at nearly VND4.983 trillion ($216.65 million), up 6 per cent on-year. The capital structure remained safe and the owner’s consolidated equity also rose by 19.5 per cent on-year.

Nevertheless, since early 2020, the COVID-19 pandemic has crossed a great many international orders and caused great shortcomings in material supplies. Moreover, the closure of the three biggest markets (the US, the EU, and Japan) that make up 65 per cent of the local garment export turnover, also domestic firms into a corner.

As a result, VGG was forced to alter its business plans to accommodate these negative impacts and forecast plunges in revenue and pre-tax profit by 30 and 70 per cent, to VND6.3 trillion ($273.9 million) and VND150 billion ($6.5 million) this year.

Delta Electronics to establish Vietnamese subsidiary

Delta Electronics (Thailand) Pcl. announced via the Stock Exchange of Thailand that it will establish a new subsidiary in Vietnam following its Board of Directors meeting held at the company headquarters in Samutprakarn, Thailand.

Delta Thailand’s Board of Directors announced that it will officially establish the new Vietnamese subsidiary within the second or third quarter of 2020. The wholly-owned subsidiary of Delta Thailand will be incorporated in Vietnam with the registered capital of $500,000. The new company will trade and provide smart and green business solutions using Delta's electronics products to benefit stakeholders and support local customers.

Jackie Chang, president of Delta Electronics (Thailand), said, “Delta is eager to tap into the vast potential of the Vietnamese market and work with our local partners to support the country’s development. Delta’s solutions for manufacturing automation, data centres, renewable energy, and e-mobility are critical to smart city transformation and can add great value for local customers while boosting their competitiveness. We expect Vietnam to play a key role in driving regional development, and Delta is ready to take an active role in the country’s growth story.”

As a smart and green solutions provider, Delta Thailand works to develop and install localised total solutions for customers in Southeast Asia. In Vietnam, Delta works with partners in the telecom and manufacturing sectors to create high-performance, energy-efficient, flexible, and sustainable solutions that deliver on the company’s brand promise: Smarter. Greener. Together.

HZO sets foot in Vietnam for its "China Plus One" policy

Vietnam is considered the ideal destination in the “China Plus One” policy of HZO, a global leader in delivering world-class protective nanocoatings that safeguard electronics from the most demanding corrosive and liquid environments.

HZO has announced the opening of a manufacturing facility in Yen Phong Industrial Park, marking its first factory in Vietnam.

This facility will bolster manufacturing capabilities, supporting industry diversification into various markets, including consumer electronics, industrial, IoT, automotive, and medical devices.

HZO selected Vietnam as its newest manufacturing location based on proximity to current clients, access to new prospects, availability of talent, favourable economic climate, and attractive operating costs.

This most recent facility addition builds upon HZO’s global footprint that includes 14 locations with manufacturing located throughout China, Hungary, and North America. HZO will harness the support and demand from current customer programmes in ramping up production, driving scale, and expanding resources to meet market demands.

“HZO’s Plus One initiative will bring to the local market the industry’s most advanced protective nanocoating technology for electronic devices,” said Andreas Morr, chief operations officer, HZO. “Society depends on everything from smartphones to autonomous vehicles, and hearing aids to smart factories, creating the demand for devices to be protected from the most challenging environmental conditions.”

The sprawling 80,000 square foot campus is equipped with the latest innovations from HZO, including next-generation coating equipment designed, developed, and built in-house, along with its patented Spectrum of Protection solutions, which draws from a diversity of materials. The new manufacturing site is expected to provide employment for a workforce of over 2,500 in the next three years.

This real estate expansion comes on the heels of strong business growth and is one of several new investments HZO has announced in recent months. These investments include a new global headquarters outside Raleigh NC, the latest generation of Parylene and plasma coating machines, two dozen new intellectual property assets, and expansion of key leadership positions, including the announcement of James Fahey as CEO.

Long An attracts $114.6 million of foreign investment in first quarter

In the first quarter of 2020, the southern province of Long An attracted the total foreign capital of $114.6 million, up $26.5 million compared to the same period last year.

In the first quarter of 2020, Long An granted 26 investment certificates to foreign investment projects with the total committed capital of $105.7 million and raised $120 million for 11 operational projects. The total capital, both newly-registered and added capital, is $114.6 million, increasing by $26.5 million compared to the same period last year.

Long An has attracted $6.324 million in foreign investment with 1,049 projects so far. There are 585 projects in operation, which takes 55.7 per cent of the total registered projects. These projects have disbursed$3.624 million, or 57.3 per cent of the total committed capital.

In the first quarter, domestic investors registered 341 new businesses with the capital of VND3.41 trillion ($148.26 million).

So far, there have been 11,697 businesses registering capital of VND307.561 trillion ($13 billion) within the province.

There are 16 industrial zones in operation on a total of 2,293 hectares, with 86.46 per cent of the land area being used. The total industrial land area being used increased by 18.37ha in the first quarter. Economic Zones along the border have received two foreign-invested projects with the total capital of $75 million. There are 21 industrial clusters with the total fulfilment rate of 89.7 per cent at the moment. Additionally, the state budget also reached VND4.62 trillion ($197 million), 27.5 per cent higher than the target.

According to Tran Van Can, president of Long An provincial People’s Committee, COVID-19 has affected the consumption of main agricultural products such as dragonfruit, as well as the import-export and manufacturing operations of businesses.

Moreover, the impacts of water shortages were aggravated by rapid saline intrusion, which are drying out and killing plants, and have ruined 990ha of crops.

Danang sounds horn for investors in Lien Chieu Port infrastructure

Danang People’s Committee is looking for investors to join in the development of shared infrastructure at Lien Chieu Port, which has the total investment of VND3.43 trillion ($149.13 million).

Danang is looking for investors in the infrastructure that sets the foundations to put Lien Chieu Port underway
Danang People’s Committee has submitted a document requesting the prime minister's approval for the investment planning to call for private investment into the shared infrastructure part of the Lien Chieu Port project.

The infrastructure for calling investment is harbour area, container yard, warehouse complex, breakwater, pier, waterway, and transport system, among others. It is the part of Group A special maritime transport projects for which the government approved the investment planning and Danang People’s Committee granted the investment certificate.

This shared infrastructure will have the total investment capital of VND3.43 trillion ($149.13 million), 87.4 per cent of which is allocated from the state budget. More than VND2.99 trillion ($130 million) of the investment will go to cover construction costs, while the rest will go for the procurement of equipment and site clearance, among others.

This project will meet the demand for infrastructure to create the conditions for the development of the first two harbours which will be able to handle ships with the capacity of 100,000 DWT, as well as container ships of 6,000-8,000 TEU. The total cargo going through these harbours will be 3.5-5 million tonnes per year.

According to the project’s pre-feasibility study, Lien Chieu Port will become a major wharf area of an international gateway port in the central region.

Danang expected investment preparation to be finalised timelyand the project would begin construction and be put into operation during 2020-2022. Once completed, the port will ease the pressure on Tien Sa and Son Tra ports as well as urban traffic.

At present, the quantity of general cargo handled by Danang seaports is forecast to grow by 16.2 per cent on-year (22.6 per cent for container shipments).

The load is estimated to reach 10 million tonnes in 2020 and 30 million tonnes in 2030. Correspondingly, from 2020, the load will exceed not only the handling capacity of Tien Sa Port but also of transport infrastructure in the city centre, causing serious traffic congestions and badly affecting the environment as well as tourism growth.

Tien Sa Port is getting full to bursting and cannot be expanded, thus it is imperative to construct Lien Chieu Port and make it the new the international gateway to the country. The development of this seaport is of critical importance since it helps to maintain Danang’s position in the regional growth.

Thai Super Energy to invest $457 million in four solar power plants in Vietnam

Thai-listed energy firm Super Energy Corporation has recently announced that it would invest in four solar power plants in Binh Phuoc province, Vietnam with the total capacity of 750MW.

Accordingly, Super Energy Corporation would pay approximately $73 million to purchase controlling stakes of 70-100 per cent of the four Loc Ninh 1-4 solar plants through a subsidiary in Vietnam.

The total transaction value would be no more than $457 million, cited from its regulatory filing to the Securities and Exchange Commission of Thailand. After the investment in the solar plants, the $384 million is set to be poured into the construction which is already underway and will be finished by the end of this year.

Super Energy calculated that returns on investment from the four solar power projects would be around 17 per cent for each project.

“This will enhance the company's strengths and competitiveness in the future and continue to generate revenue for the company. It also expands the company's investment abroad. They will receive investment incentives in renewable energy from the Vietnamese government, such as tax benefits and access to finance,” Super Energy said in its statement.

This new investment comes only a month after the Thai firm announced the $51.2 million acquisition of Thinh Long Phu Yen Solar Power. “Vietnam is a country with high potential for renewable energy development, especially solar and wind energy,” it said. The country is seeing increased interest from overseas investors in the renewable energy sector, according to DealStreetAsia.

VIR also published an in-depth analysis of Decision No.13/2020/QD-TTg – which was issued last week – on encouraging mechanisms for solar power development in Vietnam. The newly-ratified decision sets the deadline of December 31 for solar systems of any scale as commercial operation date and enjoy the feed-in tariff 2 (FiT2) rate, which is considered to be financially attractive.

"Along with the increased FiT for wind and biomass recently announced, Vietnam is undergoing a strong energy transition towards renewable energy following the directives and goals indicated in the Politburo’s Resolution No.55-NQ/TW on the orientation of the National Energy Development Strategy of Vietnam to 2030, with vision to 2045," rooftop solar expert Mai Van Trung told VIR.

There is also huge potential for international developers and investors to join mergers and acquisitions activities.

Previously, another Thai energy firm Gunkul Engineering Pcl. (Gunkul), through its arm Bright Green Power, expressed interest in investing in solar power plants in Tay Ninh province, Vietnam.

SkyX Solar, a subsidiary of VinaCapital Group, has inked a joint venture agreement with SAIGONTEL to build and operate rooftop solar projects for industrial facilities within the industrial parks affiliated with the latter.

On the flip side, Aboitiz Power Corporation from the Philippines confirmed its decision of terminating its planned acquisition of Vietnam’s Mekong Wind due to a condition precedent being unmet by the agreed longstop date.

VNN/VNA/VNS/VOV/VIR/SGT