Real estate firms are rushing to issue corporate bonds, which analysts say shows their thirst for capital. But there are risks. A report of the State Securities Commission (SSC) showed that VND60 trillion worth of corporate bonds were issued in the first half of the year. Meanwhile, according to Military Bank Securities, the figure is VND70 trillion. Real estate firms are rushing to issue corporate bonds, which analysts say shows their thirst for capital. But there are risks. The high bond interest rate is what analysts find worrying. Kim Chi Real estate firms switch to bonds due to less bank loans Bond issuance is becoming an ideal channel for real estate firms to raise capital as credit policies for property development are gradually being tightened, experts said. Strong desire for M&A deals in real estate Foreign investment flows into Vietnam’s property sector through merger and acquisition transactions have been reported to be on a strong … [Read more...] about What’s behind real estate firms’ race to issue corporate bonds?
Foreign currency loans
Staff of Electricity company fix the line in Bắc Từ Liêm District, Hà Nội. The country is predicted to face with power shortage in the future. — VNA/VNS Photo Mạnh Khánh HÀ NÔI — Minister of Industry and Trade Trần Tuấn Anh sounded the alarm about the high risk of power shortages at a meeting earlier this week. In a report sent to the Government and the National Assembly, Anh’s ministry said extreme weather conditions have left many hydropower plants without enough water to produce electricity. The Ministry of Industry and Trade (MoIT) plans to import 20 million tonnes of coal in 2020 and 35 million tonnes in 2035. It also added the local supply of gas was not enough to generate electricity for projects in the southeast and the southwest of the country. There are more than 10 projects in the area accounting for 16 per cent of total capacity in Viet Nam. MoIT … [Read more...] about MoIT concerned over potential electricity shortages
Illustrative image (Photo: VNA) Hanoi (VNS/VNA) - Vietnam’s local currency bond market grew 2.6 percent to 52.9 billion USD in the second quarter of this year, after a 0.7 percent expansion in the first quarter. This information was part of the latest report of the Asian Development Bank’s (ADB) Asia Bond Monitor. The report shows Vietnam’s growth was mainly on the back of the 3.2 percent expansion of the Government bond market to 48 billion USD due to issuance of Treasury bonds and central bank bills. “The growth in the Government bond market offset the 3.4 percent contraction of the corporate bond market during the second quarter of 2019 to 5 billion USD,” the report said. According to the report, emerging East Asia’s local currency bond market expanded steadily in the second quarter of 2019 despite downside risks stemming from ongoing trade conflicts, a faster-than-expected economic slowdown in the People’s Republic of China … [Read more...] about Vietnam’s bond market continues growth
Michael Piro, COO of Indochina Capital How do you see the real estate market in Vietnam shaping up as of late? Overall, the market is in fairly good health, considering it has had a relatively strong run. We have seen most sectors grow, especially with strong demand in the apartment market. Apart from that, we have seen the hospitality and retail segments maintain their relatively good performance over the last few quarters. The market is in much better shape compared to 10-12 years ago, when times were difficult for developers. Now, we see more stable growth in the market based on a fundamentally strong economy, growing foreign direct investment (FDI), inflation that is seemingly under control, and a relatively stable currency. Vietnam is one of the fastest-rising economies in the whole world, and many foreigners have either already picked up on that fact or have begun to. The market is full of potential and I am really interested in finding out where it can go. What have … [Read more...] about Excitement rises in Vietnam’s real estate
Phạm Hồng Vân (first, left) and her colleagues at the mushroom processing factory in Hà Nội's Gia Lâm District. — Photos courtesy of Phạm Hồng Vân Khánh Linh HÀ NỘI — Back in 2005, Phạm Hồng Vân used to wake up at 2am every day to make homemade mushroom floss to earn money for her family. She sometimes had to lug 100 kilograms of dried mushrooms on her old motorbike from a farm 20 kilometres from her home. She sold the floss, a popular local food, at her small shop in the Old Quarter of Hà Nội. Nine years later, she became the CEO of a company pioneering in manufacturing processed food made from mushrooms in Việt Nam. Looking back on her start-up journey, Vân is proud of her achievements. “Mushrooms have provided the livelihood to help my family get out of poverty." “They have … [Read more...] about Start-up plans to bring mushroom products to the world