The stock market inched higher on Thursday after a week closed due to Tết holiday, buoyed by gains in bank stocks.

On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index increased for the fourth straight day, up nearly 4 points, or 0.33 per cent, to 1,202.5 points. This was its highest close in nearly five months.

The breadth of the market was positive, with 218 stocks edging higher while 95 ticked down. Liquidity also rose from the last session to more than VNĐ19.3 trillion (US$793.2 million) from VNĐ15.5 trillion.

The VN30-Index, which tracks the 30 biggest stocks on HoSE, also finished higher at 1,217.12 points, a 4.42 points increase, or 0.36 per cent. Seventeen ticker symbols in the VN30 basket gained, while eight fell and five stayed flat.

According to VNDirect Securities Corporation, an attractive market valuation and a significant recovery in the fourth quarter financial results are boosting market sentiment.

Market liquidity is expected to improve positively in the second half of February, when retail investors gradually return to the stock market after the Lunar New Year holiday. Rising domestic capital flow can boost the VN-Index's upward momentum towards the psychological resistance zone of 1,200-1,220 points this month.

Data compiled by a financial website vietstock.vn showed that bank stocks dominated the market's rallies today. In particular, Techcombank was the biggest gainer, up 2.95 per cent.

It was followed by MBBank (MBB), Vietnam Maritime Commercial Joint Stock Bank (MSB), Orient Commercial Joint Stock Bank (OCB), VPBank (VPB) and Vietnam International Commercial Joint Stock Bank (VIB). All the stocks soared 1.84 per cent.

Other stocks contributing to the upward trend were Hòa Phát Group (HPG), up 1.95 per cent, and Sabeco (SAB) climbed 1.04 per cent.

Gains were capped as some stocks still faced strong selling pressure. Of which, Asia Commercial Joint Stock Bank (ACB) posted the biggest loss of 2.86 per cent.

The HNX-Index on the Hà Nội Stock Exchange (HNX) also closed higher at 232.75 points, up 1.71 points, or 0.74 per cent.

During the session, more than 61.2 million shares were traded on the northern bourse, worth nearly VNĐ1.3 trillion.

Meanwhile, foreign investors were net sellers on both main exchanges. They set sold VNĐ325.8 billion on HoSE and VNĐ29.31 billion on HNX. 

Enterprises, authorities move to bolster industrial production

Vietnamese enterprises and authorities are taking action right from the start of 2024 to promote industrial production though many challenges remain in the global economy.

The General Statistics Office (GSO) reported that the Index of Industrial Production (IIP) in January fell 4.4% month on month but still went up 18.3% year on year. In particular, the processing - manufacturing sector expanded 19.3% from a year earlier, contributing 15.1 percentage points to the overall growth.

Notably, the January IIP posted year-on-year increases in 60 provinces and cities, with declining in just three others, the GSO said, attributing the fast expansion in some localities to sharp rises in the processing - manufacturing sector and the production and distribution of electricity.

Those recording high index rises in the processing - manufacturing sector include Quảng Ninh province 157.9%, Bắc Giang province 57.7%, Nam Định province 56.9%, Vĩnh Long province 51.2%, Kiên Giang province 47.7%, Phú Thọ province 39.4%, and HCM City 26.9%.

Though the global economy is still facing numerous difficulties and market demand has yet to recover, the country’s IIP has continued improving thanks to the efforts of producers to seek new orders and prepare goods for the Lunar New Year (Tet) holidays, according to the GSO.

In HCM City, production and business activities of local firms have become vibrant since the year’s beginning. The municipal Statistics Office noted the local IIP increased 26.9% year on year in January.

Among the companies based in the southern economic hub, the Toan Viet electronics and informatics company recently coordinated with partners to debut Việt Nam’s first set of artificial intelligence-powered desktop computer, named ROSA PC AI, that uses the Ryzen 8000G Series processors.

Experts held that despite impacts of the global economic recession, localities nationwide have applied flexible measures to create the best possible environment for investors to carry out projects while at the same time attracting new investors to high-tech and environmentally friendly industries.

In the northern province of Vinh Phuc, some large investment projects have become operational, including the Bhflex Vina-1 electronic component factory worth VND816 billion (US$33.5 million), a vehicle production and assembly plant invested with VND564 billion by the Aeon Motor Vietnam Co. Ltd, and an VND840 billion plant project that produces trays and boxes for industrial and e-commerce activities.

These businesses are promoting production and expected to enjoy vigorous growth in 2024 and 2025.

Trương Thanh Hoài, Director of the Industry Agency under the Ministry of Industry and Trade, said that this year, the agency will press ahead with effectively implementing the Government-approved enterprise support policies to remove obstacles to production and business activities, particularly in such key export sectors as textile - garment and leather - footwear, along with foundation industries like automobile, mechanics, and steel.

It will accelerate the completion and inauguration of new industrial production projects to serve export and domestic consumption, he went on.

For its part, Vĩnh Phúc will continue strongly reforming its growth model, with a focus on industrial development. It will shift from an industrialisation policy based on traditional advantages like geographical location, cheap labour, and natural resources to the one based on modern competitive edges like human resources quality, labour productivity, infrastructure, and progressive regulations.

The province will also effectively step up dialogue with, and assistance for enterprises to recover and boost industrial growth, according to local authorities.

Phi Thi Huong, Director of the GSO’s Industry and Construction Statistics Department, recommended localities increase demand stimulation and promotional programmes to fuel purchasing power, thus helping expand the domestic market for enterprises amid export difficulties. They should also hold more business-matching events to help firms seek partners and boost sales.

Meanwhile, Minister of Planning and Investment Nguyễn Chí Dung said this ministry will propose the building of some preferential mechanisms and policies to assist large enterprises to grow further. Part of the assistance will be sourced from the Investment Support Fund, collection from the global minimum tax, and other legal sources. 

VinFast introduces first right-hand drive electric vehicles
 
Vietnamese automotive manufacturer, VinFast, has officially launched its first right-hand drive electric vehicles for the Indonesian market at the Indonesia International Motor Show (IIMS) 2024.

During the IIMS 2024 held in Jakarta from February 15-25, VinFast is showcasing a variety of models, including VF 5, VF e34, VF 6, VF 7, VF 8, and VF 9.

VinFast is planning to collaborate with local suppliers to establish a network of 5,000 charging stations in Indonesia, aiming to significantly boost the adoption of electric vehicles.

In a bid to penetrate the Indonesian market, VinFast also plans to build a factory in Indonesia with a projected capacity of around 50,000 cars per year. With the goal of achieving a domestic localisation rate of up to 40%, the VinFast factory is expected to create thousands of jobs and promote the local electric vehicle industry.

Also on February 5, the automaker signed a letter of intent on cooperation with the first 5 dealers in Indonesia.

RoK’s fashion brand Nerdy wants to expand foothold in Vietnam
 
Street style fashion brand Nerdy of the Republic of Korea (RoK)’s cosmetic and clothing company APR on February 11 announced its plan to expand operation in Vietnam, with the opening of more stores in this market.

Through its partnership with local fashion distribution company Maison Retail Management International (MRMI), APR now has four offline stores in Vietnam, including two in Hanoi and two in Ho Chi Minh City. The first store was opened at Vincom Dong Khoi shopping mall in January 2023.

Among Nerdy's local stores, the one at Lotte Mall West Lake (Hanoi) has reported the most robust business results, followed by the outlet in VivoCity, Ho Chi Minh City.

The brand targets Vietnamese youths like it does in the RoK. A Nerdy representative said spring/summer sportswear have been favoured among Vietnamese consumers, helping the brand gain increasing revenue.

The MRMI is planning to open its own TikTok shop in addition to Nerdy's online shop to serve the growing demand for online shopping among Vietnamese youths.

Petrol prices increase sharply to nearly VND24,000 per litre

Domestic retail petrol prices were revised up from 3pm on February 15 by the Ministry of Industry and Trade, and the Ministry of Finance.

Accordingly, the price of RON95-III went up VND650 to VND23,910 per litre, while that of E5RON92 rose VND710 to VND22,830 per litre.

The prices of diesel oil 0.05S and kerosene were capped at VND21,360 and VND21,220 per litre, up VND660 and VND640, respectively.

Meanwhile, mazut oil 180CST 3.5S is now sold at no more than VND15,900 per kilogramme, an increase of VND310.

In the latest adjustment, the two ministries decided to make use of the petrol price stabilisation fund for mazut oil, at VND300 per kilogramme.

The past week saw global petrol prices rise to US$101.8 a barrel for petrol RON95, up 3.5% from the previous adjustment. Elsewhere, the price of diesel oil and mazut also climbed to US$108.15 a barrel and US$449.9 per tonne.

India to lose out to Vietnam in smartphone exports race

India’s Deputy IT Minister Rajeev Chandrasekhar has stated in government documents that India fears losing out to both China and Vietnam as it seeks to become a major smartphone export hub and must "act fast" to lure global companies with lower tariffs, according to Reuters.

In its article, Reuters revealed that smartphone manufacturing is a key part of Indian Prime Minister Narendra Modi's ambitions to boost the economy and to create jobs by attracting companies such as Apple, Foxconn, and Samsung.

India is the world's second-largest mobile market where production grew by 16% year on year to US$44 billion last year.

Reuters reports that the Indian Government explained the success is mostly due to financial incentives given to companies to produce more. However, several lawmakers and firms shared that their high tariffs can be viewed as a deterrent for companies de-risking their supply chains beyond China. Indeed, nations such as Vietnam, Thailand, and Mexico have all raced ahead in phone exports by offering lower tariffs on components.

"India has high production cost due to highest tariffs amongst key manufacturing destinations," wrote Chandrasekhar in the documents seen by Reuters.

"The geopolitical realignment is forcing supply chains to shift out of China... We must act now, or they will shift to Vietnam, Mexico, and Thailand," he stressed.

Reuters quoted US Ambassador Eric Garcetti saying foreign investments were not flowing into India at the pace they should be, instead they were going to countries like Vietnam due to tariffs.

In his documents, Chandrasekhar flagged how lower taxes in China and Vietnam have helped to boost their exports. Exports accounted for only 25% of India's smartphone production last year, compared with 63% of China's US$270 billion worth of production and 95% of Vietnam's US$40 billion worth, he said.

India has set a target of accounting for 25% of global electronics manufacturing by 2029, although official documents show its stake is currently at just 4%, even though Apple, Foxconn, and Xiaomi have all recently boosted production. 

Cambodian exports to Vietnam soar 116% in January 2024

Cambodian earned US$373 million from exporting commodities to Vietnam in January 2024, representing an increase of 116.6% year on year, according to the General Department of Customs and Excise of Cambodia (GDCE). 

The GDCE did not reveal the detail, but statistics from the Cambodian Ministry of Commerce show that its main exports to Vietnam include rice, rubber, cashew nuts, cassava, corn, bananas, mangoes, tobacco and natural resources.

Currently, Vietnam is Cambodia’s second largest export market, after the US and ahead of China, Japan, and Thailand.

In January alone, Cambodia raked in US$1.97 billion from exports, up 27% year on year.

Lim Heng, vice president of the Cambodian Chamber of Commerce, attributed the rapid export growth to the gradual recovery of the global economy plus the increasing domestic production.

Cambodia has a large export market due to enjoying preferential tariffs with a number of partners, as well as the enforcement of bilateral and multilateral free trade agreements that Cambodia has signed with partners, said Lim Heng.

He expressed his belief that Cambodia’s export trade turnover would keep increasing in 2024 thanks to diverse and quality export products at competitive prices.

In addition to textiles and garments, Cambodia is also an exporter of agricultural products, electronic components, electronics and many essential goods.

Positive outlook for Vietnamese exports in 2024

There are positive signs ahead for Vietnamese exports in 2024 thanks to the recovery of the global economy, increasing consumption demand, and the effective enforcement of free trade agreements (FTAs). 

The Ministry of Industry and Trade (MoIT) aims to increase total export turnover this year to US$377 billion, up about 6% compared to 2023, and maintain a trade surplus of roughly US$15 billion for the ninth consecutive year.

Last year saw Vietnam earn US$355.5 billion from exports due to global economic fallouts and rising inflation, down 4.4% year on year, failing to meet the planned growth target of 6%.

The gradual recovery of the global economy in 2024 is forecast to stimulate consumption and fuel export orders that will support Vietnamese export businesses in fulfilling the target. Than Duc Viet, general director of Garment 10 JSc, says his firm will proactively seek and exploit domestic and international markets in its attempt to diversify markets, products and customers.

“The firm will also promote research on new materials and new patterns to produce new, high-quality products to cater to the taste of new customers,” says Viet.

There are signs of importers increasing orders, as many countries face difficulties due to labour shortages and conflicts, while Vietnam is a safe destination which is expected to receive new orders, shares Le Tien Truong, chairman of the Board of Directors of the Vietnam National Textile and Garment Group (Vinatex).

Meanwhile, fruit and vegetable exports are predicted to set a new record this year, possibly exceeding the US$6-billion turnover goal and even approaching the US$7-billion milestone.

“To meet the target, Vietnam should, on the one hand, bring into full play the potential of existing products, and on the other hand increase the export of other fruits through official channels, along with close collaboration between the State, farmers and businesses,” suggests Dang Phuc Nguyen, general secretary of the Vietnam Vegetable and Fruit Association (Vinafruit).

This year, the Ministry of Agriculture and Rural Development will strive to accelerate negotiations for the official export of Vietnamese fresh chilies and coconuts to the Chinese market. With the possibility of Vietnamese frozen durians to enter the Chinese market, the export turnover of fruits and vegetables in 2024 is forecast to increase significantly.

It is anticipated that four more products will be officially exported to this market, namely medicinal herbs, coconuts, frozen fruits, and watermelons.

Experts therefore recommend that fruit exporters strictly abide by all requirements and regulations relating to food safety, traceability, growing area code confirmation, and packaging stated in the signed protocols between Vietnam and China.

The Ministry of Industry and Trade (MoIT) also says it will continue to support businesses seeking to take advantage of commitments in the FTAs to boost exports and shift to official exports associated with brand building.

“The MoIT will facilitate trade promotion for products and industries in major markets,” says Tran Thanh Hai, deputy director of the MoIT’s Import-Export Department.

To achieve the export growth target of 6% in 2024, Hai says the MoIT will promote negotiations and signing of new FTAs with other potential partners to diversify markets, products, and supply chains. 

Canada: a gateway for Vietnamese businesses going global

Canada boasted great potential for becoming the gateway for Vietnamese businesses to expand their scale of operations as local firms seek to reach out to other markets around the world, thanks to its strength in technology, finance, customer network and logistics in the Americas, a senior trade official said.

At the same time, with the advantage of a network of free trade agreements, market advantages, high-quality labour, and trans-Asian transportation infrastructure, Việt Nam could bridge Canadian businesses with ASEAN markets, Trần Thu Quỳnh, commercial counsellor at the Việt Nam Trade Office in Canada, said.

Currently, Việt Nam is Canada's largest trading partner in ASEAN and this country's seventh largest import partner after the US, mainland China, South Korea, Japan, the Netherlands and Hong Kong.

Quỳnh told congthuong.vn that Canada considered Việt Nam an important trade partner in its strategy of diversifying trade and supply sources and enhancing the sustainability of the supply chain.

The two countries were complementary, not competitive in terms of products.

Canada had strengths in high-tech machinery, energy technology, telecommunications technology, biomedicine and input products for Việt Nam's industries such as minerals, plastics, wood, oil and gas, grains and fertiliser.

In return, Việt Nam could provide home appliances, furniture and garments to the Canadian market, thanks to preferential tariffs under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Statistics compiled by the Việt Nam Customs and the Việt Nam Trade Office in Canada indicated that Vietnamese exports to Canada dropped by 11.3 per cent to over US$5.6 billion compared to the same period last year.

This decline in exports to the North American nation could be seen as part of the general downward trend occurring during its economic recession.

It had also moved to reduce imports from most major exporting countries in ASEAN, such as Indonesia, down 7.7 per cent; Malaysia, down 18.8 per cent; and Thailand, down 10.9 per cent.

Two leading product groups that accounted for the largest proportion of Vietnamese export turnover to Canada included electronics and mobile phones, up 9.8 per cent, and boiler reactors, up 57.3 per cent.

Meanwhile, Canada exported goods worth $620 million to the Vietnamese market last year, down 12.7 per cent on-year.

Despite differences recorded in data between the two countries’ agencies, the country ran a large trade surplus of $8.5 billion with Canada in 2023.

According to the office, Vietnamese items that would see good export growth included footwear, leather products and hats.

Meanwhile, the export growth of input materials for production such as rubber, iron and steel, plastic materials and chemicals would depend on the recovery speed of orders and growth in Canadian industrial production. Exports of these staples experienced a sharp decline in 2023.

Quỳnh said this year her office would continue to implement activities to promote the supply chain and logistics connections between Việt Nam and Canada, helping businesses from both sides better understand the CPTPP and how to take advantage of this agreement in their business investment strategies.

At the same time, the office would focus on facilitating exports of Vietnamese firms, especially for small and medium-sized enterprises, and organising delegations of Canadian firms to come to Việt Nam to seek business opportunities, including a delegation of over 100 businesses to Việt Nam in March and another in the textile and garment sector to attend the upcoming Việt Nam Sourcing Fair in June.

In addition, it would also concentrate on supporting Vietnamese micro and small food producers to participate in trade fairs in Canada while promoting their cooperation with overseas Vietnamese businesses. 

Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes