China has emerged as the sixth largest investor in Vietnam, with new projects surging sevenfold, reported the Ministry of Planning and Investment’s Foreign Investment Agency.

A prime example is the interest shown by Goldwind, a global leader in wind turbine manufacturing, in establishing a state-of-the-art wind turbine component manufacturing and assembly plant in the northern port city of Hai Phong. With over 47,000 turbines supplied and a total installed capacity exceeding 97 GW, Goldwind’s interest signals a significant boost for Vietnam's renewable energy sector.

The recent Hai Phong investment promotion conference in China’s Shenzhen city saw the awarding of seven new and expanded investment certificates to Chinese investors, totaling nearly 200 million USD. These investments span a range of industries, including solar panel production, electronic components, and automotive parts manufacturing. Additionally, the Hai Phong Economic Zone Authority (HEZA) also signed four memoranda of understanding with major Chinese investors.

Minister of Planning and Investment Nguyen Chi Dung highlighted a positive shift in Chinese investment toward hi-tech and green energy sectors, such as technology, electronics, manufacturing, infrastructure, renewable energy, and electric vehicles. This marks a departure from traditional investments in labour-intensive industries like furniture, steel, and apparel

Notable projects from Chinese giants such as Goertek, BYD, Radian, Brotex, Wingtech, Deli, and Trina Solar have already established their presence in Vietnam, with investments ranging from millions to billions of USD.

Beyond investment, China remains Vietnam's largest market for agricultural products. According to the General Department of Vietnam Customs, two-way trade exceeded 100 billion USD for the first time in 2018 and soared to 171.2 billion USD in 2023, accounting for over 25% of Vietnam's total export-import turnover.

As many as 11 types of Vietnamese fruit, including mango, dragon fruit, and durian, are among the top exports to China, said General Secretary of the Vietnam Fruit and Vegetable Association Dang Phuc Nguyen.

Prof. Nguyen Mai, Chairman of the Association of Foreign Invested Enterprises (VAFIE), attributed Vietnam's appeal to its favourable geographic location, relatively low labour costs, affordable land rentals, and tax incentives. The availability of locally produced raw materials, which can be exported with added value, also further enhances Vietnam's attractiveness to Chinese investors, he said./.

Transport sector plans to reach public investment disbursement rate of 98% this year

The Ministry of Transport plans to disburse 75.824 trillion VND (3.03 billion USD) or 98.5% of the allocated public investment to the ministry this year, according to the Department of Planning and Investment's report.

As of the end of July, the ministry reports a disbursement rate of 49.2%, meaning that around 30.8 trillion VND had been disbursed.

As the sum of capital to be disbursed in the remaining months of this year remains large, at more than 45 trillion VND, the pressure to fulfil the public investment disbursement goal is significant.

Disbursement is being hampered too with numerous projects still in the process of completing investment procedures or facing with bottlenecks in site clearances, along with forecasts of unfavourable weather conditions on the way, the department said.

The department urged greater determination from developers and contractors to speed up the disbursement process and added they will be keeping close watch on progress.

In 2025, the ministry plans to disburse around 77.642 trillion VND worth of public investment, an increase of 5.175 trillion VND compared with the previous plan.

The total public investment planned to be allocated to the Ministry of Transport is 396.435 trillion VND in 2021-25 period./.

Bac Ninh remains an FDI magnet

The northern province of Bac Ninh continues to be a top destination for foreign direct investment in Vietnam, thanks to its investor-friendly environment, modern infrastructure, and abundant workforce, according to the Ministry of Planning and Investment’s Foreign Investment Agency.

Chinese investors, particularly those from Shenzhen, are showing keen interest in Bac Ninh's semiconductor and high-tech chip manufacturing sectors, said Hu Wen Da, Chairman of Zhong’an Jichuang Investment Co., Ltd. The province's attractive investment climate has prompted the company to consider investing in the area and encouraging other Chinese firms to follow suit.

Bac Ninh has experienced a surge in foreign investment this year, with 279 new projects approved since the beginning of the year, a 53.3% increase compared to the same period last year. Additionally, existing projects have received an additional 1.2 billion USD in investment, while capital contributions and share purchases totalled 40.9 million USD.

The province has ambitious plans for the future. A recently-approved list outlines 167 projects covering over 11,600 ha, with a focus on agriculture, commerce, services, residential and urban development, social housing, industrial zone infrastructure, and social amenities.

Major global corporations, including Goertek, Amkor, Foxconn, Suntory Pepsico, and Victory Giant Technology, are looking to expand their operations in Bac Ninh.

To reach the goal of attracting a total of 7 billion USD in foreign investment this year, the province is taking a series of measures to improve business environment, enhance workforce quality, and promote investment opportunities./.

Exporters, producers urged to pay more attention to int'l standards

For Vietnamese branded goods to come in a large quantity and affirm their positions in international distribution systems, Vietnamese exporters and manufacturers need to keep improving product quality and adapting to importers’ requirements on quality standards, quarantine, packaging, and product origin traceability, according to experts.

Many major export markets such as the EU and the US have imposed strict requirements on standards and the environment, especially green transformation for imports from Vietnam. This requires Vietnamese manufacturers and businesses to invest not only in production costs but also quality management, conformity assessments, or certifications.

Director of the Trade Promotion Agency under the Ministry of Industry and Trade (MoIT) Vu Ba Phu said that to support businesses, the agency regularly updates them on markets and their trade policies and standards for imports.

It also strengthens the innovation of trade promotion activities to diversify export markets and develop domestic ones, Phu said.

In addition to organising trade fairs and exhibitions in countries, the agency also sends delegations to international conferences, trade events to promote specific products.

Phu said that such activities have supported enterprises in finding stable sources of raw materials for export production, diversifying export markets, taking advantage of free trade agreements, strengthening connections, and participating deeply in the global value chain.

He added that Vietnam has been paying more attention to consumption activities on digital platforms, especially for seasonal agricultural products.

The MoIT is focusing on helping businesses improve their business skills on digital platforms, develop brands, and build capacity for businesses in six key economic regions across the country.

For examples, Phu’s agency recently launched trade promotion programmes in localities including Lao Cai, Ha Noi, Dak Lak, Ha Giang, and Bac Giang with livestreams on the Tik Tok platform to promote local specialties which brought about a total revenue of over 2 billion VND (nearly 80,000 USD) and reached over 50 million viewers.

Phu affirmed that the application of digital platforms in trade promotion is a decisive factor for the success of businesses in the current digital transformation context.

In 2025, the MoIT will continue to support businesses in developing markets, diversifying exports, and improving competitiveness. Trade promotion activities will focus on potential markets, key product lines and make use of digital technologies.

The ministry has been developing and implementing trade promotion plans towards key market groups and priority product groups in each period, in line with developments in the world economy, Phu noted./.

Vietnam enhances supply chains for sustainable organic agriculture

Organic agricultural products are gaining traction among consumers due to their sustainability, safety, and nutritional benefits. However, despite the rising demand, organic farming only accounts for a small portion of Vietnam's agricultural sector.

Experts have acknowledged the importance of strengthening supply chains to drive the sustainable growth of organic agriculture and secure better incomes for farmers.

The Vietnamese government has demonstrated a strong commitment to developing organic agriculture through a series of policies aimed at fostering this sector. The Party Central Committee's 2022 Resolution No. 19-NQ/TW on agriculture, farmers, and rural areas emphasises the promotion of green, organic, and circular agriculture.

Earlier, in 2018, the government issued Decree No. 109/2018/ND-CP on organic agriculture, followed by Decision No. 885/QD-TTg in 2020, which set out a comprehensive plan for organic agriculture development from 2020 to 2030. These policies are designed to align Vietnam's organic agriculture with global trends.

Dao Thanh Van, Vice President of the Vietnam Organic Agriculture Association (VOAA), highlighted that organic farming is a global trend, with 191 countries and territories engaging in organic practices, of them 74 having specific regulations for organic production. In Vietnam, traditional organic farming has been practiced for centuries, yet it remains limited in scale.

As of late 2023, Vietnam had approximately 495,000 hectares dedicated to organic farming, representing 4.3% of the country's total agricultural land and 0.69% of the global organic farming area.

Despite its modest scale, Vietnam has successfully implemented several effective organic farming models that have significantly enhanced the reputation of Vietnamese agricultural products.

According to Lam Dong province's Department of Agriculture and Rural Development, the Central Highlands province has over 1,500 hectares which have been certified organic, with 1,308 hectares meeting international standards and 270 hectares satisfying Vietnamese standards.

By the end of 2023, Lam Dong had facilitated the creation of 10 organic production and consumption chains, which have generated higher profits for local farmers compared to conventional farming methods.

Meanwhile, the southern province of Binh Duong has 600 hectares under organic cultivation. Pham Van Bong, Director of the provincial Department of Agriculture and Rural Development, revealed that the province has implemented a plan to develop its organic agriculture development strategy from 2020 to 2030, aiming to maintain certified organic cultivation areas by 2025.

Organic agriculture not only delivers higher economic returns but also equips farmers with enhanced knowledge and skills, encouraging a shift from traditional practices to safer and more responsible farming methods. Organic products are distributed through supermarkets, clean agricultural stores, and exports, effectively meeting market demand.

Experts believe that organic agriculture aligns with Vietnam's agricultural restructuring policy, which aims for increased added value and sustainable, environmentally friendly development. This approach also enhances the global competitiveness of Vietnamese agricultural products.

However, long-term success in organic farming requires close collaboration among all stakeholders within the organic production system.

Le Minh Linh, Deputy Director of the National Agricultural Extension Center, emphasised that collaboration is key to developing a modern agricultural sector that balances the interests of all participants. Organic agricultural production under chains can be organised through horizontal linkages (farmer-to-farmer, cooperative-to-cooperative, enterprise-to-enterprise) or vertical linkages (farmer-cooperative-enterprise). These linkages are essential for increasing value and ensuring sustainability in both crop and livestock sectors./.

Conference discusses prospects for RoK Korea-Vietnam ICT investment cooperation

The Republic of Korea (RoK) Consulate General in the central coastal city of Da Nang on August 16 hosted a conference on the prospects of the two countries's ICT investment cooperation, with the participation of municipal leaders, Vietnamese and Korean enterprises and IT experts, and students from universities across the central region.

At the event, Consul General Kang Boosung noted that the two nations have upgraded their relationship to a comprehensive strategic partnership after three decades of diplomatic ties, building on active bilateral exchanges. Their leaders have agreed to strengthen and expand cooperation across multiple sectors, including technology and science, information and communication, agriculture, and energy. This agreement is being implemented through the establishment of the Vietnam-Korea Institute of Science and Technology (VKIST) and the promotion of IT cooperation projects in digital transformation.

The conference aims to share diverse perspectives on the current state of the RoK’s semiconductor industry, which has garnered significant attention from Vietnam, insights from VKIST experts, as well as the prospects of the sides’ ICT cooperation from the viewpoint of their younger generations, Kang said.

The consul general expressed his hope that more Korean ICT enterprises will invest in Vietnam's central region, with stronger Vietnam-RoK partnership in the field expected to opening up numerous career opportunities for Vietnamese students.

Tran Ngoc Thach, Deputy Director of the Da Nang Department of Information and Communications, stated that the city is gradually becoming an attractive destination for investors, startups, and IT enterprises. It has consistently led the nation in IT readiness and digital transformation indices for many years.

The RoK remains among key nations in Da Nang’s investment attraction policy, the official said, adding that the central economic hub has already prepared land funds, and infrastructure in concentrated IT zones, and software and high-tech parks for businesses to implement their projects.

Currently, Da Nang has 37 institutions offering IT-related training, with approximately 6,000 graduates each year, Thach said.

At the conference, participants discussed the prospects for cooperation between Vietnamese and Korean businesses, as well as the advantages, difficulties, and challenges in their partnership in the time to come./.

M&A market waiting for big deals

After a booming period, foreign investment flows into Vietnam via mergers and acquisitions (M&A) have slowed down over the past few years, and the market is still waiting for big deals.

In the first seven months of 2024, foreign investment channeled into new and existing projects increased sharply compared to the same period last year, by 35.6% to 10.8 billion USD and 19.4% to nearly 5 billion USD, respectively.

However, investment via capital contributions and share purchases was still on the downward trend. There were 1,795 capital contribution and share purchase transactions totalling nearly 2.27 billion USD during the period, respectively falling 3.1% and 45.2% year on year, according to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.

In the last five years, 2019 witnessed a boom in this form of investment.

Statistics showed that foreign investors conducted 9,842 transactions valued at 15.47 billion USD in 2019, surging 56.4% from a year earlier. However, investment via capital contributions and share purchases has dropped since then.

The value stood at 7.47 billion USD in 2020, 6.9 billion USD in 2021, and 5.15 billion USD in 2022, respectively down 51.7%, 7.7%, and 25.2%. It reached 8.5 billion USD in 2023, soaring 65.7% from 2022, but was equivalent to just over half of the peak of 15.47 billion USD seen in 2019.

Impacts during three years of the COVID-19 pandemic, plus geopolitical uncertainties, have led to a plunge in M&A deals worldwide.

Data from London Stock Exchange Group (LSEG) revealed that the global M&A market recorded only 2.9 trillion USD in transaction value in 2023, down 17% year on year. That was the first time since the 2008-2009 global financial crisis the world’s M&A market had contracted by over 10% in two consecutive years. The market in Asia-Pacific alone shrank by 25%.

Dau tu (Vietnam Investment Review) cited Le Xuan Dong, Director of EY Parthenon Strategy at EY Consulting Vietnam JSC, as saying that the M&A market in Southeast Asia has tended to decline in terms of both transaction number and value, and Vietnam is not an exception.

Although there haven’t been large deals since the start of 2024, a recent report by Savills Vietnam pointed out several notable transactions. For example, Kim Oanh Group recently teamed up with NTT Urban Development, Sumitomo Forestry, and Kumagai Gumi Co. Ltd of Japan to develop The One World, a 50ha residential area in the southern province of Binh Duong. Nishi Nippon Railroad of Japan bought a 50% stake in the 45.5ha Paragon Dai Phuoc project for about 26 million USD from Nam Long Group.

Particularly, Tripod Technology Corporation of Taiwan (China) purchased an 18ha industrial land lot in the southern province of Ba Ria - Vung Tau from Sonadezi Chau Duc. It has spent 250 million USD on building an electronic component factory there, like many other Taiwanese firms who are continually pouring capital into this field in Vietnam.

Troy Griffiths, Deputy Managing Director at Savills Vietnam, held that industrial real estate will witness stable demand, supported by the foreign investment inflow and infrastructure development. M&A deals in this field are forecast to bounce back.

Economists perceived that the entry into force of real estate-related laws, namely the 2024 Land Law, the 2023 Housing Law, and the 2023 Law on Real Estate Business, from August 1 will give a boost to M&A activities in this area.

However, the market is still waiting for major transactions, not only in real estate but also retail, manufacturing, and finance - banking, like what used to be made.

Data from the FIA indicate that during January-July this year, Japan, with nearly 595 million USD, still ranked first among countries and territories investing in Vietnam via capital contributions and share purchases. It was followed by Singapore (500 million USD) and the Republic of Korea (323 million USD). Investors from Taiwan poured 160 million USD, the Cayman Islands 184 million USD, and China 124 million USD.

These are also the investors that have conducted large M&A deals in Vietnam in recent years, and the market is waiting for them to spend big in the time ahead./.

Petrol prices inch up on August 15

The Ministries of Industry and Trade and of Finance have decided to increase the retail prices of petrol products, effective from 3pm on August 15.

Accordingly, the price of E5RON92 bio-fuel is capped at 20,882 VND (0.83 USD) per litre, an increase of 167 VND per litre. Meanwhile, the price of RON95-III rose by 179 VND to reach 21,852 VND per liter.

For the diesel fuel 0.05S and kerosene, the maximum prices are set at 19,230 VND and 19,572 VND per litre, up 89 and 161 VND per litre, respectively. Mazut oil 180CST 3.5S is now sold at no more than 16,245 VND per kg, rising by 217 VND per kg.

The two ministries decided to keep the petrol price stabilisation fund unchanged.

They noted that the global petrol market during this adjustment period (from August 8 to 14) was influenced by several factors, including new developments in the Middle East conflict, rising US crude oil reserves, and the ongoing Russia-Ukraine conflict./.

Vietnamese coffee producer gets 25-mln-USD loan from Dutch investment fund

Phuc Sinh Corp, a coffee and pepper producer and exporter of Vietnam with over 14 years of commitment to sustainable development, will receive a 25-million-USD loan from SAIL Investments’ Netherlands-based & Green Fund, for developing a sustainable coffee value chain without deforestation.

This is the fund's first investment in a Vietnamese enterprise, showing a positive signal for Vietnam's agriculture sector in attracting sustainable investments from international financial markets.

Through this partnership, the Dutch investment fund will provide financing for Phuc Sinh to promote agricultural transformation towards a sustainable coffee value chain without deforestation.

Addressing the ceremony to announce the information on August 15, Phan Minh Thong, Chairman of the Board of Directors of the Phuc Sinh Corp, said this investment is a significant step forward in Phuc Sinh's sustainable development strategy.

The company is committed to improving the quality of its products and also ensuring that the production process contributes to environmental protection and community support, he said, noting that the collaboration will help Phuc Sinh advance to sustainable development, thus providing long-term value for both the company and the society.

With the long-term investment and support from the fund, Phuc Sinh pledges to speed up the transformation of Vietnam's coffee industry towards traceable and deforestation-free supply chains, focusing on improving the quality and value of Vietnamese coffee and promoting sustainably-produced products on a global scale.

By applying responsible agricultural practices, Phuc Sinh aims to set a standard for the sector, contributing to protecting the ecosystem and promoting sustainable economic development in Vietnam.

Operated by SAIL Investments, a global sustainable investment manager with its headquarters in the Netherlands, & Green Fund invests in companies worldwide that can demonstrate separating commodity production from deforestation, and protecting biodiversity while ensuring social inclusiveness. The fund targets industries that lead to deforestation, such as palm oil, soybean, animal protein, and forestry.

By the end of 2023, the fund's portfolio has contributed to protecting 3.1 million hectares of forests and reducing 13.2 million tCO2-e (carbon credits)./.

Vietnam attends international food expo in Hong Kong (China)

Vietnamese enterprises are showcasing their products at the 34th Food Expo which kicked off in Hong Kong (China) on August 15.

There are some thematic events held on this occasion, including Beauty and Wellness Expo, Home Delights Expo, Hong Kong International Tea Fair, and Food Expo PRO, attracting some 1,860 exhibitors from 30 countries and territories.

The expo offers an opportunity for Vietnamese enterprises to promote their products to international consumers, particularly those in Hong Kong.

The booths of the Vietnam Trade Office in Hong Kong and businesses display many Vietnamese specialties, such as renowned ST25 rice, fish sauce, processed vegetables and fruits, canned fruits, frozen seafood, cashew products, bird's nest drinks, and confectionery.

Vietnamese Consul General in Hong Kong Le Duc Hanh said the economic and trade relations between Vietnam and Hong Kong have been developing strongly in recent years, particularly in the first half of this year as Hong Kong became the second largest investor in Vietnam. Recalling the visit to Vietnam by Chief Executive of the Hong Kong Special Administrative Region (China) John Lee Ka-chiu from July 31 to August 2, she said it has created many favourable premises for the trade and investment relations to advance to a new height, adding Vietnamese enterprises are increasingly interested in bringing their products to the world, and Hong Kong is a very suitable place for them to achieve this goal.

Vu Thi Thuy, head of the Vietnam Trade Office in Hong Kong, said the number of Vietnamese booths at the expo this year is higher than previous editions. Notably, Vietnamese enterprises pay attention to not only product quality but also packaging and design, she said. On the first day of the expo, Vietnamese products received positive feedback from Hong Kong and international customers.

Organisers expect the number of visitors to the event this year will exceed the 480,000 recorded last year./.

HCM City to host 18th int’l travel expo in September

The 18th International Travel Expo Ho Chi Minh City (ITE HCMC 2024) with the theme “Sustainable Travel Travel – Creating Future” will be held from September 5-7 at Saigon Exhibition and Convention Centre (SECC), the Tourism Department of HCM City announced on August 15.

So far, more than 450 exhibitors and 200 international buyers from 33 countries and territories, including big travel agents such as Flight Centre Travel Group, Intrepid (both of Australia), and DERTour group’s Exim Tour, have registered to participate in the event.

ITE HCMC 2024 will be held in a hybrid format, a combination of physical booths and online events such as 2D Online Booths, and Online Appointment Schedules between international buyers and sellers.

One of the key tasks of ITE HCMC 2024 is to expand the international visitor market to Vietnam. Therefore, the travel expo will be a meeting point for domestic and international tourism businesses, especially those in the lower Mekong River countries, to seek business opportunities and provide diverse products to customers. It is also a place for units to access new products and business models, welcoming the "wave" of sustainable tourism development.

In the framework of ITE HCMC 2024, a series of seminars, conferences, and tourism forums will take place with the participation of Government, MOCST’s leaders, local tourism management agencies, domestic and international travel businesses. Speakers will discuss together to promote sustainable tourism development through ESG (E - Environmental, S - Social, G - Governance, which aims to evaluate and measure factors of sustainable development), responsible tourism associated with nature protection.

Remarkably, “Net Zero Travel & Tourism - Creating future” will be the theme of the High-level tourism forum at this ITE HCMC. The organising board hopes that the forum will bring many practical solutions and propose many policies to develop tourism in the direction of green growth, sustainability and environmentally responsibility.

ITE HCMC 2024 also receives strong support from strategic partners such as Vietnam Airlines Corporation (Vietnam Airlines) - the official airline of the expo; The European Chamber of Commerce in Vietnam (EuroCham), Vietjet Air and international airlines inviting members and international partners to attend the exhibition./.

Hanoi fair promotes made-in-Vietnam goods

Various made-in-Vietnam products, ranging from consumer goods, industrial and agricultural products, handicrafts, to “One Commune-One Product” items, are being displayed at a fair in Hanoi’s Tay Ho district.

The event, which lasts from August 15-19 with about 90 booths, is to respond to the campaign “Vietnamese prioritise Vietnamese goods” launched in the capital city.

It offers a chance for businesses to promote their products and set up consumption connections, and for consumers to access quality Vietnamese products.

The fair is among the 73 programmes and events sketched out this year by the municipal Department of Industry and Trade, aiming to remove difficulties for businesses, said its Deputy Director Nguyen The Hiep.

Statistics show that in the first seven months of this year, Hanoi’s index of industrial production (IIP) grew 5.2% from the corresponding time last year, and its total retail sales of goods and revenue from consumer services reached 475.3 trillion VND (18.97 billion USD), up 10% year-on-year. Meanwhile, its export turnover stood at 10.4 billion USD, up 10.8% year-on-year.

In the rest of this year, the city will continue putting in place drastic solutions to spur economic development, focusing on implementing the programme on socio-economic recovery and development, improving the business environment and the competitiveness of domestic enterprises, and removing obstacles for the real estate market to promote production and public investment disbursement.

The department has also urged other departments, agencies, and the People’s Committees of districts and townships to continue their support to businesses in trade promotion and consumption connectivity, while stepping up the communications work./.

Banks race to issue bonds to raise capital

Many banks have issued large amounts of bonds to raise thousands of billions of VND, pushing interest rates to around 8% per year, much higher than that of normal savings.

BVBank has recently announced the public offering of bonds in the first phase through direct issuance at the bank’s transaction offices. BVBank plans to have six issuances with a total of 56 million bonds. In which, the first phase will offer 15 million bonds, with a term of six years and a fixed interest rate of 7.9% per year for the first year. From the second year, the reference interest rate is the 12-month individual savings interest rate of four banks Vietcombank, VietinBank, BIDV and Agribank plus a margin of 2.5% per year.

With each bond having a face value of 100,000 VND, BVBank expects in the first phase, it will mobilise 1.5 trillion VND from the public bond channel. The bank targets individual customers and organisations in its public bond offering this time.

The board of directors of ACB has recently also approved a plan to issue individual bonds for the second time in the 2024 fiscal year with a maximum total scale of 15 trillion VND. Accordingly, ACB will issue a maximum of 150,000 bonds with a par value of 100 million VND per bond. The issuance price is equal to the par value, with a maximum term of five years. The purpose of bond issuance is, according to ACB, to serve lending and investment needs and ensure compliance with safety indicators as prescribed by the State Bank of Vietnam.

The bonds have a maximum term of five years and a fixed or floating interest rate, depending on market demand. The offering subjects are institutional investors who meet the legal regulations for professional securities investors.

Previously, Agribank and HDBank also offered bonds to the public to raise thousands of billions of VND. This year, Agribank offered 10 trillion VND in bonds to the public to institutional, individual, and foreign investors at all its transaction offices nationwide. Agribank’s bond interest rate is nearly 7% a year.

At HDBank, the public bond issue has a term of seven years. The bank expects to raise 1 trillion VND with a floating interest rate, applied to the entire term of the bond. The interest rate is calculated by the reference interest rate plus a margin of 2.8% per year.

A report by the Vietnam Bond Market Association (VBMA) showed that last month, there were 33 private corporate bond issuances worth 31.3 trillion VND and one public issuance worth 395 billion VND.

There have been 175 private bond issuances worth 168 trillion VND and 12 public issuances worth more than 4.5 trillion VND to date this year. Among the private issuances, rated bonds account for 7% of the value.

Banking was the industry with the largest proportion of bond issuance value in the first seven months of this year, accounting for 68.2% of the total issuance value./.

Total assets of Vietnamese credit institutions rise by 4.97%

Total assets of the Vietnamese credit institution system by the end of June 2024 reached more than 21.07 quadrillion VND, an increase of 4.97% compared to the end of 2023, the State Bank of Vietnam (SBV)’s latest data show.

Accordingly, the group of State-owned commercial banks, including Agribank, VietinBank, Vietcombank, BIDV, VietinBank, CB, GPBank, and Oceanbank, had total assets of nearly 8.75 quadrillion VND, up 5.05% from the end of 2023.

The group of joint-stock commercial banks had total assets of more than 9.43 quadrillion VND, up 5.0%.

The group of joint-venture and foreign banks had total assets of more than 1.94 quadrillion VND, an increase of 4.26%, and the group of financial and financial leasing companies had total assets of 302.3 trillion VND, up 0.16%.

The Bank for Social Policies, the Cooperative Bank and the People's Credit Fund had total assets of 377.1 trillion VND, 67.3 trillion VND and 192.04 trillion VND, respectively, up 7.57%, 18.1% and 7.5% compared to the end of 2023.

Meanwhile, statistics from Q2 2024 financial reports published by commercial banks show that BIDV continued to be the bank with the largest total assets in the market, with 2.52 quadrillion VND at the end of the second quarter of 2024. VietinBank followed with more than 2.16 quadrillion VND while Vietcombank ranked third with more than 1.9 quadrillion VND.

According to the SBV’s data, the charter capital of the credit institution system also recorded growth compared to the end of 2023.

Specifically, by the end of June 2024, the total charter capital of the credit institution system reached nearly 1.07 quadrillion VND, an increase of 6.6% compared to the end of 2023. In which, the group of State-owned commercial banks had a total charter capital of 228 trillion VND, an increase of 4.75%, while the group of joint-stock commercial banks had a total charter capital of more than double that of the group of State-owned commercial banks with 587.85 trillion VND, an increase of 8.35%.

The SBV also reported that by the end of June 2024, the ratio of short-term capital for medium and long-term lending of the credit institution system was 28.1%, of which the ratio of State-owned commercial banks was at 23.58%, joint-stock commercial banks, 40.02% and finance and financial leasing companies, 33.99%.

The ratio of outstanding loans to total deposits of the credit institution system by the end of June 2024 was 78.25%, of which State-owned commercial banks had a ratio of 82.62%, joint-stock commercial banks, 80.78% and joint-venture and foreign banks, 42.23%./.

Source: VNA/VOV/VNS/VNN