KTFA: Vietnam
Henig: Shares make large gains on banking, securities stocks
January, 18/2023 – 06:55
Vietnamese equities closed sharply higher on Tuesday, bolstered by a dramatic injection of cash flow into banking and securities.
HÀ NỘI – Vietnamese equities closed sharply higher on Tuesday, bolstered by a dramatic injection of cash flow into banking and securities.
The market’s benchmark VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) ended the day at 1,088.29 points, an increase of 2.03 per cent.
The breadth of the market stayed in positive territory, with more stocks gaining points. Specifically, 352 stocks advanced on the southern bourse, while 69 stocks inched lower.
Investors poured nearly VNĐ11.7 trillion (US$499.3 million) into the southern exchange, equivalent to a trading volume of 673.9 million shares.
The VN30-Index, which tracks the 30 biggest stocks on HoSE, also increased by 2.6 per cent, to 1,103.73 points.
Twenty-nine stocks in the VN30 basket witnessed positive performance on the trading day, while only one tumbled.
Strong cash flow poured into blue-chips, spurring the market’s gains. Among the most notable gainers were Hoà Phát Group (HPG), the Việt Nam Rubber Group (GVR), SSI Securities Inc (SSI), Khang Điền House (KDH) and FPT Corporation (FPT), Vingroup (VIC), Vincom Retail (VRE), Masan Group (MSN), Vinhomes (VHM), Novaland (NVL), Vietjet (VJC), Vinamilk (VNM), Mobile World Group (MWG) and Bảo Việt Holdings (BVH).
Bank stock prices have witnessed a substantial increase such as Agribank Securities Corporation (AGR), Asia – Pacific Securities Joint Stock Company (APS), Viet Nam Bank For Industry & Trade Securities JSC (CTS), Military Bank (MBB), Petrovietnam Securities Incorporated (PSI), Sacombank Securities Joint Stock Company (SBS), VNDirect Securities Co (VND), FPT Securities Joint Stock Company (FTS) and Liên Việt Post Bank (LPB).
“In the last week of the Lunar Year, BSC maintains the view that VN-Index may not have too strong fluctuations and will continue to accumulate in the range of 1,050-1,065,” said BIDV Securities Co (BSC).
Foreign investors net bought VNĐ227.96 billion on HOSE, including FUESSVFL with VNĐ124.26 billion, Hoà Phát Group (HPG) with VNĐ30.29 billion, Bank for Investment and Development (BID) with VNĐ29.99 billion. Foreign investors were net sellers on HNX with the value of VNĐ1.5 billion.
On the Hà Nội Stock Exchange (HNX), the HNX-Index moved up. The northern market’s benchmark closed at 215.15 points, a decline of 2.02 per cent.
During the session, nearly 64.7 million shares were traded on HNX, worth VNĐ934 billion.
— VNS LINK
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Henig: Support industries vital for global integration
06:00 | 18/01/2023
(VEN) – “Entering 2023, Vietnam needs to promote the development of support industries to help the country’s industrial sector effectively participate in the global supply chain,” said Deputy Director of the Industry Agency under the Ministry of Industry and Trade (MoIT) Ngo Khai Hoan in an interview with Vietnam Economic News’ Lan Anh.
What is your evaluation of the linkage model between foreign direct investment (FDI) enterprises and Vietnamese companies?
Most FDI enterprises invest in Vietnam to take advantage of investment incentives, low labor costs, and other advantages offered by our various free trade agreements (FTAs). As a result, they do not pay attention to the formation of domestic supply chains and have only a loose connection with domestic enterprises, which does not create spillover effects between the FDI sector and the domestic economic sector.
Currently, with the increase of per capita income, Vietnam’s advantages of low-cost labor are no longer sufficient magnets for large FDI enterprises. Vietnam must therefore adopt breakthrough policies, build sustainable cooperation and connection models between the government, FDI enterprises and Vietnamese companies.
What should the government and businesses do to promote the development of support industries?
The government needs to improve the capability of Vietnamese enterprises by adopting solutions on business connections, market information, human resource development, etc. These long-term goals need to be implemented simultaneously to raise awareness of related parties and the supporting industry community towards long-term and sustainable development goals.
Vietnamese enterprises also need to be proactive and make efforts to access the government’s support programs, as well as equip themselves with new technologies and innovative management methods to optimize production and improve competitiveness, in order to manufacture products of high technology content and high added value.
FDI enterprises should continue to actively coordinate with the Vietnamese government and enterprises in sharing information, support training, transferring technology, and facilitating the participation of Vietnamese enterprises in long-term, sustainable supply chains.
What specific opportunities did the selection of six prioritized industries in the supporting industry development strategy create for foreign investors and Vietnamese enterprises?
The selection of the six prioritized industries following Decree 111/2015/ND-CP, including textiles and garments, footwear, electronics, automotive, mechanical and high-tech industries, reflect government determination in these fields. This is one of the most important solutions for Vietnam to affirm its position in the global supply chain.
In addition, the selection is a signal and basis to attract and encourage FDI enterprises to invest in or expand investment in the above-mentioned industries. Particularly, it will give priority to projects of high technology content that use advanced and clean technologies, adopt modern management and have spillover and connective effects with global production and supply chains.
In 2023, the promotion of domestic support industries is expected to help the Vietnamese industrial sector effectively participate in the global supply and value chains.
According to the MoIT, supporting industry development is one of the most important solutions to improve the quality of Vietnam’s economy, promote its sustainable growth and enhance its attraction to foreign investors, thereby helping domestic enterprises deeply participate in supply chains of FDI enterprises and global value chains of multinational corporations.
Lan Anh LINK
