The Government Office said that efforts must be enhanced to further simplify business regulations and create a favourable environment for enterprises.

Director of the Administrative Procedures Control Agency Ngo Hai Phan said that the results of the simplification of business regulations had not met the Government’s requirements.

Some ministries had not updated changes in regulations adequately, accurately and promptly on their portals, he said, adding that many remained slow in raising proposals for simplifying business regulations to the Prime Minister.

Although the Government’s Resolution No. 68/NQ-CP dated May 12, 2020, about the programme to reduce and simplify business regulations in the 2020-2025 period had been in effect for three years, which targeted to simplify at least 20% of the business regulations, some ministries had not submitted their simplification plan to the Government, he said.

Phan said that these problems were caused by the lack of drastic measures and the lack of active cooperation between relevant ministries and agencies, as well as the lack of accountability.

He said that to effectively implement and create breakthroughs in institutional reforms, Phan urged ministries and agencies to hasten the effort of simplifying business regulations following Resolution No. 68.

It was necessary to consult associations, businesses and those to be affected by the business regulation simplification plan to thoroughly remove regulations which were creating administrative burdens on production and business, he said. He stressed that simplifying business regulations did not mean erecting new barriers to businesses.

The Ministry of Justice said that during the past two years, the ministry focused on reviewing administrative procedures for simplification. From 2021-22, the ministry slashed 43 regulations.

The Ministry of Information and Communications said that the ministry was encountering difficulties in calculating compliance costs.

Statistics of the Administrative Procedures Control Agency showed that in the first six months of this year, 92 regulations residing in eight legal documents were simplified or reduced, bringing the total number of regulations which were simplified or reduced from 2021 to date to 2,234 in 179 legal documents.

As of June 20, the existing regulations updated on the portal about business regulations at the address https://thamvanquydinh.gov.vn totalled 17,845 regulations.

Ca Mau Airport to accommodate A320, A321 aircraft by 2030

The Ca Mau airport in the southernmost province of Ca Mau will be upgraded to class 4C, able to accommodate A320 and A321 aircraft by 2030, in line with approved planning, according to the Ministry of Transport.

The ministry said in response to Ca Mau province’s proposal on upgrading the airport that the upgrade will be carried out from now to 2030, with the reparation of the runway and taxiway at the airport already underway, implemented by the Airports Corporation of Vietnam (ACV).  

Ca Mau airport is currently a class 3C facility, accommodating ATR 72 airplanes and similar aircraft.

The ministry noted that on April 29, Bamboo Airways launched a direct service between Hanoi and Ca Mau with three flights a week.

Regarding the province’s proposal on adding the planning for a highway from Ca Mau city to Dat Mui commune, the southernmost point of the country, to the national road planning for 2021-2030 with a vision to 2050, the ministry said it will consider the suggestion and report to competent authority.

It added that large-scale transport infrastructure for the corridor from Ca Mau to Dat Mui is yet to be considered in the process of building transport planning for 2021-2030 due to low transport needs. However, plannings will be reviewed and adjusted every five years, according to the Law on Planning.

New decree sets environmental protection fees for mineral exploitation

The Government recently issued Decree 27/2023/ND-CP regulating environmental protection fees for mineral exploitation.

The document, issued on May 31, regulates those subject to the fees, fee payers, fee collectors, the cases entitled to exemption, and fee levels, among others.

Accordingly, environmental protection fees are imposed on the exploitation of crude oil, natural gas, and coal gas; and metallic and non-metallic minerals stipulated in the fee table accompanying the decree.

The fee collector is tax agencies.

Environmental protection fees are set at 100,000 VND (4.25 USD) per tonne for crude oil, 50 VND per cubic metre for natural gas and coal gas, and 35 VND per cubic metre for the natural gas collected during the crude oil exploitation process (associated gas).

The fees on the exploitation of metallic and non-metallic minerals, including production and business activities that are not aimed at exploiting minerals but still collect minerals, are shown in the accompanying table.

The decree also said that basing on the principles for specifying fee levels as regulated in the Law on Fees and Charges, the fee table, and the levels applied in other localities, the People’s Councils of provincial-level localities decide on the fee levels appropriate to their local situation in each period.

Decree 27/2023/ND-CP, replacing Decree 164/2016/ND-CP, will take effect on July 15.

Singapore firm to expand ownership in Vietnamese logistics provider

Singaporean company PSA Cargo Solutions Vietnam Investment plans to continue increasing its stake in Vietnam’s logistics provider South Logistics Joint Stock Company (Sotrans).

Sotrans on June 20 received a public tender offer from PSA Cargo Solutions Vietnam Investment to increase its ownership from 24.9% to 30% of charter capital. 

PSA Cargo Solutions Vietnam Investment offers to buy another 5,010,921 shares of Sotrans, while the bid price is not disclosed.

Sotrans is listed on the Ho Chi Minh Stock Exchange (HoSE), with a ticker symbol STG. The company's shares ended last week at 49,000 VND (2.08 USD) a share.

At the closing price, it is estimated that PSA Cargo Solutions Vietnam Investment has to spend more than 245.5 billion VND to purchase over 5 million STG shares. 

Previously, the Singaporean company on May 19 bought 24.47 million STG shares to raise its ownership from 0% to 24.9% of charter capital and become a major shareholder of Sotrans.

In 2023, Sotrans set targets of more than 2.9 trillion VND in revenue, up 13% year-on-year, and 388.43 billion VND in profit after tax.

It plans to focus on specialising each member's business areas to maximise capacity and efficiency.

Particularly, for Sotrans Logistics, the unit will concentrate on developing international and domestic freight forwarding and warehousing business.

For Vietranstimex, it focuses on developing the segment of transporting super-long and super-heavy goods to meet important industries such as electricity, oil and gas, chemicals, cement, and traffic, in the domestic market as well as in Southeast Asia by cooperating with the largest partners in each market.

Meanwhile, for Sowatco, it will exploit port and waterway transportation activities in Vietnam, and look for opportunities to expand business activities in the north.

In the first quarter, Sotrans reported net revenue of over 385.4 billion VND and net profit of nearly 40 billion VND, down 48% and 36% over last year, respectively.

Vietnam needs new regulations to develop agri-tourism real estate: experts

Vietnam needs to issue regulations and an overall strategy for developing the agri-tourism real estate market, according to experts.

A representative of the Department of Land under the Ministry of Natural Resources and Environment, said that while the business of agri-tourism is a developing economic model, there are not yet adequate provisions in the land law to push forward efficiently.

The improvement of legal documents and policies will create a corridor to develop this business model in accordance with the law, said the representative, adding that policymakers must continue to study land classification and how to mix land use purposes for agriculture and tourism simultaneously.

Dr. Nguyen Quang Tuyen of the Faculty of Economic Law at the Hanoi Law University said the 2013 Land Law still lacks an overall strategy for sustainable management and use of agri-tourism land.

Agri-tourism land was not officially identified in the 2013 Land Law. This provisions have no explanation for agri-tourism and no designation of what this land can be used for.

Existing regulations also have not specified the registration and issuance of land right certificates for agri-tourism purpose, or allowed authorities to change the officially stated use of land for the development of this business model.

Tuyen said that the 2013 Land Law only mentions traditional uses of agricultural land, including crop production, forestry, aquaculture, and salt production. They exclude the possibility of linking the land with tourism development.

Article 142 on land for agriculture appears at first to allude to tourism development on farmland, but it fails to go into specific detail on how this can be achieved in accordance with the law.

Nguyen Van Chung, a senior specialist from the Department of Cooperatives and Rural Development under the Ministry of Agriculture and Rural Development, said that farms have reportedly faced difficulties partly due to this lack of specific regulations.

Policies supporting the development of the farm economy are scattered in many documents, so it's difficult to implement them efficiently. Many outdated policies or inadequacy of documents related to land and construction have hindered the expansion of the farm's production scale, he said.

Besides that, there are no specific regulations for non-agricultural activities such as preliminary processing, preservation and crafting products, or indeed for tourism development. There have also been no specific regulations to allow farms to convert agricultural land, leading to some farms illegally developing tourism activities.

Tuyen said the State needs to quickly review and complete the legal framework relating to the real estate market in general and the agri-tourism real estate market segment in particular to ensure uniformity in legal documents. This will create a legal basis for the agri-tourism real estate market to operate and develop sustainably and synchronously.

In addition, it should supplement regulations on granting land use right certificates for land lots used for agri-tourism purposes, and specific rights and obligations of organisations and individuals investing in agri-tourism real estate development.

At the same time, it should consider supplementing regulations on incentives for organisations, households and individuals using agricultural land for tourism services, he said.

Producers advised to improve quality of products to fully tap Chinese market

China spent 805 million USD on importing vegetables and fruits from Vietnam in the first four months of 2023, up 29% year-on-year, according to the Vietnam Fruit and Vegetables Association (Vinafruit).

The association reported that China led the top five importers of Vietnam's vegetables and fruits with exports to the country accounting for 59% of Vietnam’s total export volume.

Dang Phuc Nguyen, General Secretary of Vinafruit, said that Vietnam’s export revenue in June set a record so far thanks to China’s opening to many Vietnamese fruits such as durian and grapefruit.

Nguyen forecast that the export of vegetables and fruits in the next months, especially to the Chinese market, will continue to grow as Vietnam has entered the fruit harvesting season.

According to the Ministry of Industry and Trade (MoIT), Vietnam’s total import-export turnover to China in the first five months hit 62.2 billion USD, with Vietnam's exports to China reaching 19.8 billion USD, down 9.3% compared to the same period last year.

Experts attributed the reduction to China’s stricter requirements for product standards and quality.

In the context of increasingly fierce competition, to maintain and expand the market share in the Chinese market, Vietnamese producers and exporters need to swiftly standardise their production and business activities and better the quality standards of their products to meet the stricter requirements of this market, they said.

Minister of Industry and Trade Nguyen Hong Dien said China is no longer an easy market as before, and that this big economy has long been a key exporter of many products. Chinese exports are quite similar to those from Vietnam, posing both advantages and challenges for Vietnamese goods, he noted.

For better exports to the market, the minister advised businesses to adapt their production methods towards safety and specific standards, and ensure that their cultivation processes meet traceability requirements.

Insiders said that competitive pressure in the Chinese market is increasing as more countries eye on exploiting and expanding their market share in this country.

Therefore, Vietnamese management agencies, businesses, and industry associations should have a clear understanding of relevant information and implement synchronised solutions, focusing on improving the quality of goods and promoting exports via official channels.

According to Luong Van Tai from the Vietnam Trade Office in Beijing, Vietnamese firms exporting vegetables and fruits should explore investment and collaboration opportunities with Chinese businesses in the processing of vegetables and fruits, towards increasing the value of exports and keeping up with the growing trend of the processed fruit and vegetable consumption in recent years.

Banks to pay dividends in shares in 2023

Many banks plan to pay dividends in shares in 2023, along with plans to increase charter capital.

June 26 will be the last day for shareholders of Southeast Asia Commercial Joint Stock Bank (SeABank or SSB) to exercise their right to receive stock dividends.

This bank will issue 295.2 million shares to pay dividends in 2022, equivalent to approximately 14.47 per cent ratio and it will also issue more than 118.2 million bonus shares, at rate of 5.8 per cent.

Not only SeABank, but a series of other banks are also preparing to issue shares to pay dividends this week.

Ocean Bank (OCB) will issue nearly 685 million shares, equivalent to a ratio of 50 per cent for existing shareholders. After the issuance, the bank's charter capital will be increased from VND13.7 trillion to VND20.54 trillion.

The State Bank of Viet Nam has just approved the plan of Sai Gon-Ha Noi Bank (SHB) to issue shares to pay dividends in 2022 to existing shareholders at the rate of 18 per cent.

Lien Viet Post Bank (LBP) also plans to increase its charter capital by a maximum of VND11.39 trillion through issuing shares to pay dividends, offering shares to existing shareholders, offering private shares to foreign investors.

It will issue a maximum of 328.5 million shares to pay dividends to existing shareholders at the rate of 19 per cent.

The Military Bank (MBB) this year also plans to increase its charter capital from VND45.33 trillion to VND53.68 trillion by issuing more than 680 million shares to pay a 15 per cent dividend.

After paying a cash dividend of 10 per cent to shareholders on June 12, HDBank (HDB) also plans to pay a 15 per cent stock dividend in the near future. Currently, HDBank is completing the final procedures to pay stock dividends to shareholders.

Late last week, Nam A Bank also announced that it is preparing to issue more than 211 million shares with par value of VND10,000 per share at the rate of 25 per cent, meaning that shareholders owning 100 shares will receive 25 new shares. The last registration date to exercise the right to receive shares issued in this batch is July 7, 2023.

If the issuance is successful, the charter capital of Nam A Bank will be increased from VND8.46 trillion to VND10.58 trillion.

In the group of State-owned banks, at the end of May 2023, the central bank approved to increase the charter capital for Vietcombank from VND47.32 trillion to VND55.89 trillion, by issuing shares to pay dividends at the rate of 18.1 per cent. 

Warning of fake bank tricks to scan QR codes

The Viet Nam Prosperity Joint Stock Commercial Bank (VPBank) has warned customers to be wary of tricks using fake banking QR codes to steal money from unsuspecting customers.

The bank warns that recently, in addition to sending fake login links to take over accounts or collect information related to credit cards, attackers have developed a method to send QR codes via social networks such as Zalo, Facebook or Viber.

Specifically, the attacker will impersonate a bank employee, call from a desk phone number with a sequence similar to the bank's switchboard number, and invite customers to upgrade their credit card limit or withdraw cash from their credit card or other financial services. Next, the crooks will send and ask the customer to scan the QR Code.

After the customer scans the QR Code, customers will be redirected to a fake website link asking customers to enter information such as full name, ID/citizen identity card, photo, card number, card expiration date and OTP sent to the customer's phone number, as well as the login information and password of a bank account.

Immediately after the customer provides the information, the fraudster will gain the right to use the internet banking account or credit card and perform the transaction to appropriate money.

A number of other banks and police agencies in many localities have also warned about the QR code trick.

To avoid being caught in this new sophisticated scam, banks advise customers to be very wary of requests to scan QR codes or access strange links.

Banks do not ask customers to provide card numbers, CVV2/CVC2 numbers (three security numbers on the back of credit cards) or any other personal information of customers via Zalo or an unknown phone number.

At the same time, it is also recommended that customers do not provide OTP / Smart OTP authentication codes to anyone including bank staff.

If you accidentally scan the QR, check the link again to identify it is a safe URL.

HCM City offers a thee-month promotion to stimulate demand

Participating businesses will be able to organise many promotional activities with attractive discounts, which can be up to 100 per cent of the value of goods.

HCM City is running the “Shopping Season” during the span of three months (as opposed to only one month like in previous years), divided into several phases.

According to Nguyen Khac Hieu from the Import - Export unit of the HCM City Department of Industry and Trade, the extension of the annual promotion programme aims to boost sales and support enterprises during difficult times.

Several highlights of the programme include a cashless payment month, water tourism festivals and super sales for fashion, cosmetics and jewelry products.

New tourism products will be built with the participation of tour operators, hotels, restaurants, distribution systems and non-cash payment units with the goal of promoting the programme.

For example, tourism agencies can build summer travel programmes for students and their parents, who will be offered a discount voucher when shopping cashless at certain malls.

Total retail sales of consumer goods and services nationwide in the first five months of this year increased by 12.6 per cent over the same period last year, according to the General Statistics Office.

This is a positive increase, but the 3.9 per cent increase in the deflation index has caused the growth rate at constant prices to reach only 8.3 per cent, equal to the growth rate of 2018.

Trade expert Vu Vinh Phu said that the growth has been seen in tourism services, not in retail.

"In addition to extending the promotion period to three consecutive months, this is the first time the city has worked with high-end brands to introduce attractive promotions for high-income customers,” Hieu said.

The Co.opmart and Co.opXtra supermarket chains of Saigon Co.op have recently announced the launch of “Summer festival - Good deal nice gift” programme during the sales season.

Thousands of products, from fresh food to technology products, appliances and apparel, at these supermarkets will have a discount of up to 60 per cent.

Saigon Co.op will cooperate with VN Pay e-wallet, VP bank and Visa to launch multiple promotional codes from VND10,000 to VND50,000 for orders from VND100,000 to VND1 million.

Direct discount is always among the most effective solutions to stimulate purchasing power, a representative of Saigon Co.op said, adding that demand can increase by 20 to 30 per cent compared to off-peak periods.

It is crucial to have a diverse range of discounted products for customers to choose from.

Phu said that the sales programme should be expanded nationwide to create a stronger stimulus spillover while prices before and after the reduction should be transparently displayed.

The quality of promotional goods must be guaranteed. Those that are close to their expiration date or out of date should not be on the shelf, he said, as customers’ trust is essential to secure business.

“Viet Nam has more than 1,000 supermarkets, 200 commercial centres and over 4,000 buffet stores and mini supermarkets. Mass discounts will create necessary buzz to attract businesses and customers,” Phu added. 

EU to raise the bar on supply chains

Vietnamese producers are facing the Herculean task of changing their business practices to adapt to the global control of suppliers required by the EU's new supply chain law.

Several European countries have already enacted laws to improve human and environmental rights along the supply chain. On February 2022, the European Commission doubled the effort by presenting its proposal for an EU-wide law on corporate sustainability obligations - The Corporate Sustainability Due Diligence Directive (CSDD).

On June 1, 2023, the EU Parliament (EP) approved the proposal with 366 votes in favour and 225 against (38 abstained). The results mean the negotiations between EP and its member countries would start later this month, which are likely to center around disagreements over its scope and at which date it would come into force.

Tran Thi Hong Lien, Deputy General Director of the Bureau for Employer's Activities, said according to OECD Due Diligence Guidance for Responsible Business, business activities could result in adverse impacts related to corporate governance, workers, human rights, the environment, bribery, and consumers.

Due diligence is the process companies should carry out to identify, prevent, mitigate, and account for these impacts in their operations, their supply chain, and other business relationships.

The definition indicates that the obligation to conduct due diligence is not limited to a defined range of activities within their operations, but it extends to all their upstream and downstream business relationships in the supply chain.

For instance, a foreign company operating in Viet Nam, under the due diligence requirement, would be obliged to check how its Vietnamese partners treat their workers and whether they comply with environmental regulations, apart from their financial situation.

"Due diligence will no longer be an option but a must-have for those wanting to participate in the EU's supply chain," Lien said.

The deputy general director was concerned that the due diligence requirement would pose a significant compliance challenge to Vietnamese small- and medium-sized companies (SMEs) because checking the entire supply chain would entail additional huge costs to their operations.

She accordingly called on tier-one companies to support those with higher tier levels to get them financially well-prepared for the upcoming supply chain directive.

Do Thi Thuy Huong, Deputy Chairman of the Vietnam Association for Supporting Industries, said the due diligence requirement is not a compliance burden but rather an opportunity for Vietnamese companies to improve their productivity.

"Adherence to the directive will not only guarantee their survival in the supply chain but also give them other long-lasting advantages," said Huong.

Nguyen Hoang Ha, Programme Officer at the International Labour Organization in Viet Nam, underlined several obstacles in the way of Vietnamese SMEs trying to participate in the global supply chains.

The obstacles involve capital assessibility, technology availability, and productivity. He thus called for broad-based support for SMEs to help them gain grounds in the international commercial scenes.

Tax sector performs best in Administrative Procedure Cost Index

Tax procedures posted the highest score among nine groups of key administrative procedures rated by the report Administrative Procedure Cost Index 2022 (APCI 2022).

This reflected the unremitting efforts of tax management authorities to maintain the achievements and continue to strongly reform administrative procedures to make it easier for businesses and people in performing tax administrative procedures.

Prepared by the Government’s Advisory Council for Administrative Procedure Reform with the support of the US Agency for International Development through the technical assistance project Linkages for Small & Medium Enterprises (USAID LinkSME), the survey shows the rate of filing and receiving online results of tax administrative procedures is at an absolute level.

In 2021 and the first months of 2022, the tax sector cut the number of administrative procedures to 234 from 304.

In addition, the General Department of Taxation has expanded channels to receive and process support requests of the people via Hotline, email, website, Chatbot, and Zalo; as well as built an automatic question-and-answer system on electronic invoices based on artificial intelligence (AI) technology to support taxpayers.

The report recommends the tax industry continue improving and upgrading the online tax declaration and payment system on the General Department of Taxation’s portal; completing the application of e-invoices nationwide and improving the quality of law-making in the taxation field.

Hue half marathon a run to remember

Phạm Thị Huệ and Victor Kipkemei Chepwony won the Huế Marathon -- Heritage Journey on Sunday but Hà Thị Hậu was in the spotlight of the event which was organised for the first time in the old Imperial City of Huế.

Huệ came first in the elite women's half marathon category in a time of 1hr 23.31min. 

She was followed by Kenyan Peris Cheptoof and Vietnamese Lê Thị Bích.

Chepwony of Kenya had no worthy rival in the elite men's race. He finished first after 1:12.29.

Former SEA Games 3,000m steeplechase champion Đỗ Quốc Luật and defending SEA Games duathlon winner Phạm Tiến Sản were second and third, respectively.

The amateur men's gold went to veteran runner Nguyễn Văn Long who clocked 1:15.30. His runners-up were famous marathon Đặng Anh Quyết and Trương Văn Tâm.

Meanwhile Hậu won the amateur women's title clocking 1:23.37. Đoàn Thị Hiền and Lèo Thị Tình were left far behind with a gap of about seven minutes.

The 34-year-old was the national trail running star as she has won most domestic events that she took part in her three-year career. The rising star has also made her name internationally, being the first Vietnamese winner of Ultra-Trail Australia By UTMB in the XTERRA Asia-Pacific Trail Run Championship in April. She has qualified for the world championship in October in the US.

Hậu had difficulty to overtaking all rivals to lead the amateur race from the beginning to the end. She joined Huệ and Cheptoof to make up the leading group of the women's race.

Onlookers cheered near the finish line as she nearly caught up with elite runner Huệ who won SEA Games 10km gold in 2019.

Hậu made a rapid sprint in the last metres but she was about seven seconds behind Huệ at the finish.

However, her performance received great appreciation from supporters and fans who strongly congratulated her at the spot and on her Facebook.

In other categories, Đoàn Thu Hằng and Nguyễn Quốc Anh were winners of the women's and men's 10km, respectively. Phạm Trần Thuỳ Anh and Trần Minh Quý dominated the women's and men's 5km.

The athletes were among some 5,000 marathoners at the Heritage Journey which was designed to lead runners through Huế's royal citadel, national heritage sites and local landmarks such as Trường Tiền Bridge, Chi Lăng Old Quarter and the ancient two-storey wooden building Phu Văn Lâu.

All routes have been internationally recoganised by the Association of International Marathons and Distance Races (AIMS). The results of the runners can be submitted to register for high-profile marathons around the world.

The half marathon was one several sporting events of the Huế Sports Festival which is still ongoing around the city until July 2.

The organisers say the event brought both local and visiting runners a special a experience as well as prizes of VNĐ300 million for high-ranking competitors. They also hoped to push the development of provincial tourism, introducing Huế's beauty to friends around the world.

The Huế Sports Festival 2023 is organised by the Huế City People's Committee in coordination with the Group 75 Company. 

QR code payments grow 151 percent
 
The number and value of transactions by scanning QR codes with mobile phones increased by 151.14 percent and 30.14 percent respectively in the January-May period as non-cash payment services flourish in Vietnam.

QR code payments grow 151 percent in Vietnam. Illustrative photo

Walking around Hanoi's Old Quarter on a weekend morning, Pham Van doesn't need to carry her wallet but only holds a mobile phone, with even street vendors offering QR codes for digital payments.

Pham Anh Tuan, director of the Payment Department under the State Bank of Vietnam, said online payment services were growing rapidly in Vietnam.

State Bank of Vietnam statistics for the first five months of this year showed that cashless payment transactions increased by 52.35 percent in volume.

The number and value of online transactions rose by 75.54 percent and 1.77 percent respectively.

Online payments via mobile phones rose by 64.26 percent in volume and 7.65 percent in value.

ATM payment decreased by 4.62 percent in volume and 6.43 percent in value. This reflected the rapidly increasing trend of shifting to electronic and cashless payments in Vietnam.

Pham Tien Dung, Deputy Governor of the State Bank, said, “In the coming time, Vietnamese people can conveniently pay for services by scanning QR codes at any store.”

Creation of trading platform to overhaul bond market

In a strategic move to bolster liquidity and instil renewed faith in Vietnam’s corporate bond sector, the Ministry of Finance is on the cusp of introducing a trading platform exclusively dedicated to corporate bonds in July.

This highly anticipated system is set to lay the groundwork for bondholders to conduct seamless transactions in the most favourable market conditions, thereby reviving trust in the corporate bond market.

Deputy Minister of Finance Nguyen Duc Chi, shed light on the forthcoming initiative, saying that regulatory bodies will inaugurate the independent trading platform next month.

Amid the prevailing challenges pervading the bond market, he underlined that the difficulties stemmed from existing economic realities and the overall performance of businesses, including bond issuers. Consequently, the issues require a comprehensive and synchronised solution that encompasses macroeconomic stability, production equilibrium, sustainable growth, and efficient business operations.

Ta Thanh Binh, head of Market Development at the State Securities Commission (SSC), said, “This secondary market specifically tailored for privately issued bonds will establish a fair playing field, ensuring transparency and clarity for discerning investors.”

According to the Hanoi Stock Exchange (HNX), as of mid-June the majority of bonds nearing maturity are predominantly concentrated within the real estate sector, amounting to a substantial figure of VND96.82 trillion ($4 billion), representing 51.7 per cent of the total bond market.

The banking sector follows suit, accounting for $1.3 billion, capturing a sizable 16.9 per cent market share. During the reporting period, five companies disclosed delayed payment of principal and interest, totalling a considerable $93.25 million, while two enterprises unveiled their debt restructuring plans.

In light of these developments, the Ministry of Finance (MoF) reports that the value of corporate bond issuances in Q1 2023 has dipped by 63 per cent compared to the same period in 2022. However, there has been a remarkable surge of over 50 per cent when compared to the previous quarter, indicating a steady recovery trajectory.

The issuance activities initially experienced a sluggish phase but regained momentum after the implementation of Decree No.08/2023/ND-CP on March 5, which helped kickstart the placement of new bonds.

Binh from the SSC underscored the pivotal role of member securities companies in effectively regulating market participants.

To facilitate the operation of the bond market, the SSC is expediting the restructuring process of securities companies in the market, aligning their products according to the guidelines set by the Ho Chi Minh Stock Exchange, which will oversee stock and fund certificate transactions. Conversely, the HNX will facilitate bond and derivative transactions.

Vu Duy Khanh, director of Investment Analysis at SmartInvest Securities Company, said that the integration of bonds into a unified trading platform would eradicate cumbersome manual procedures and circumvent illicit practices that have previously undermined the market’s integrity.

Data protection heads digital banking efforts

Vietnamese authorities have been busy at work dismantling an illicit information network involving bank employees, as local lenders prioritise data protection and digital infrastructure for customer privacy and growth.
 
Danang authorities last week achieved a significant breakthrough by breaking up the activities of one illicit network involved in the unauthorised trading of banking information, aided by numerous employees.

Dao Minh Tu, Deputy Governor of the State Bank of Vietnam (SBV), last week stressed the urgency of swiftly identifying and terminating the employment of any personnel found guilty of selling customer information for any means.

“Such behaviour is deemed utterly unacceptable, and immediate action must be taken by the implicated banks to address this disconcerting issue,” he noted.

According to Danang Department of Public Security’s e-portal, its Cybersecurity Division and High-Tech Crime Prevention Division has employed diligent monitoring and technical surveillance in cyberspace to detect a group of individuals posting articles on popular social media platforms like Facebook, Telegram, and Zalo.

The posts revolved around the illicit acquisition and verification of personal customer information across over 20 national banking systems, with the aim of unlawfully profiting through service fees.

Particularly alarming were cases where bank employees engaged in extensive exchanges and sale of banking information, involving over 20 accounts.

In addition, bank employees, including those from TPBank and BIDV, along with non-bank individuals, engaged in unauthorised collection and sale of banking information to the suspect, driven by personal gain.

Further investigations in the country revealed the involvement of an employee at SeABank’s Danang Branch. The employee received profiles of 27 individuals, including altered images of both sides of their identity card, photos of their cards, and specimen signatures.

The implicated bank employee confessed to bypassing proper procedures, signing customers’ names on the account opening documents, and receiving nearly VND2.4 billion ($100,000).

Data privacy is a paramount concern for banks and financial services that recognise the need to safeguard customer information. Consequently, Vietnam’s banks are allocating increased budgets to invest in robust digital infrastructure and data protection measures.

SBV data reveals that the banking sector invested over $625 million in digital transformation initiatives by the end of 2022. Over the past four years, Vietnam has consistently maintained a 40 per cent growth rate in digital payments, solidifying its position as one of the fastest-growing adopters of digital banking applications in the region.

The rapid and expansive nature of digital transformation in recent years, coupled with intensified technological investments, has been unanimously hailed as the primary impetus driving the sector’s future growth.

A survey by Vietnam Report last week confirmed that all Vietnamese banks recognise the profound impact of digital transformation on their profitability and operational efficiency.

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