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A garment factory in Vietnam (Illustrative photo: VietnamPlus) Hanoi (VNA) – In its Vietnam Marco Monitoring report released in November, the World Bank (WB) noted several positive economic signs recently, including the strong rebound of FDI commitment, thanks to a jump in greenfield investment. Industrial production moderates, FDI bounces back The WB said FDI commitment bounced back strongly thanks to a jump in greenfield investment in electricity, gas, and water supply, while FDI disbursement maintained robust growth. Total investment commitment jumped to 3.7 billion USD in October, up 133% year on year and the second highest level in 2022. This improvement was driven by a lump sum greenfield investment of 2 billion USD in electricity, gas, and water supply. FDI disbursement remained strong, growing by 8.1% (y/y) in October and 15.2% (y/y) over the first 10 months. The industrial production index increased by 6.3% from a year earlier in October, … [Read more...] about FDI commitment rebound driven by greenfield investment surge

Decreasing demand for apartments in the region is also forecast to continue through at least the middle of the year. But it may begin to gradually rise by the last quarter of 2023 as legal bottlenecks and obstacles to credit are slated to be at least partially removed by the government, according to DKRA real estate consultants. DKRA Vietnam deputy R&D director Vo Hong Thang said apartment market liquidity, this year, would concentrate in affordable housing projects with prices of below VND50 million ($2,118) per square meter in HCMC and less than VND35 million per square meter in Binh Duong. Such social housing projects promise to be a ray of light in the otherwise gloomy 2023 market, he said, while adding the caveat that supply would still be limited. According to Thang, businesses are gradually supplying fewer high-priced homes and more affordable apartments and social housing units this year. He said this trend may last until 2025, with new supply focusing on the city’s … [Read more...] about Apartment market to continue slumping this year

Like so many others in Lam Dong Province and other rural areas of southern Vietnam, Toan saw the value of his agricultural land skyrocket in 2020-2021. He took it as an opportunity to start flipping properties for profit. But the market froze last year and short-term loans at high interest rates have now sunk him and many other farmers-turned-inexperienced-traders in impossible debt instead. The veteran coffee grower sold his land 7 km from the center of Di Linh District for several billions of dong in profit during a property price bubble in 2021. He then took out short-term, high-interest loans and used them plus money he made from his land sale to by several more plots he planned to resell for profit in what he thought would be at most 1-2 months. He said he thought he’d be able to sell some of the land back in even just a couple of weeks. But the properties still haven’t sold. In early 2022, Toan poured another VND15 billion ($635,600), including VND6 billion from another … [Read more...] about Debt buries farmers trying to flip property in frozen market

Vietnam’s four biggest State-owned banks have an urgent need for capital increase in 2023 as their charter capital is too low, with some unable to ensure the regulated minimum capital adequacy ratio (CAR), according to industry insiders. A customer at a Vietcombank office in Hanoi. Though the four biggest State-owned banks, including Vietcombank, have been a key force in supporting the economy to overcome difficulties, their charter capital is too low. Photo thoibaonganhang.vn Currently, the big four, including BIDV, Vietcombank, Agribank and VietinBank, only hold more than 40 per cent of the credit market share of the country’s banking system, but over the years, especially in the past three years, the banks have been a key force in supporting the economy to overcome the difficulties caused by the COVID-19 pandemic and global economic uncertainties. State-owned banks always take the lead in implementing incentive policies of the National Assembly, the … [Read more...] about State-owned banks under capital increase pressure