Gas prices why rising

The maximum airfare on four out of five flight distances will rise in the second or third quarter, according to a recent price report of the Ministry of Finance. The biggest increase will be 6.67% (to VND4 million or $170) for one-way tickets on flights of 1,280 kilometers (Hanoi to Phu Quoc Island) and longer. Flights between 1,000 and 1,280 kilometers will see their ticket cap price rise 6.25% to VND3.4 million. Flights of smaller distances will see their maximum price rise by between 2.27% and 3.58%. Flights under 500 kilometers will see no ceiling change. Their prices will remain at a maximum of VND1.7 million per one-way ticket. The cap price increase will likely bring Vietnam’s 2023 Consumer Price Index up by 0.07% points. Earlier this year, Vietnam Airlines and Bamboo Airways proposed increasing the cap ticket price to take into account rising in costs. The airfare price cap was last increased in 2015. By November last year, fuel costs had surged more than 80% … [Read more...] about Vietnam to raise air ticket price cap

A corner of Vinamilk (VNM) Tay Ninh dairy farm. VNM rose 1.2 per cent on Thursday. — Photo Vinamilk Local shares rose for a third day, buoyed by foreign trading and the positive performance of oil and bank stocks. On the Ho Chi Minh Stock Exchange, the VN-Index rose 0.44 per cent to close Thursday at 1,045.10 points. Market breadth was negative with 179 rising stocks and 195 losing ones. Nearly 431 million shares worth VND7.8 trillion (US$332 million) were traded on HCM City’s bourse. On HOSE, foreign investors were net buyers with a value of approximately VND336 billion. Vinhomes (VHM) was the strongest net bought with a value of VND89 billion. This is also the third session in a row that this real estate code has been purchased the most by foreign investors on HOSE. Hoa Phat Group (HPG) ranked next on the list with VND80 billion. Foreign investors also net bought Vinamilk (VNM) and SSI Securities Inc (SSI) with the value of VND68 billion and VND32 billion, … [Read more...] about Shares rise on foreign buying

The energy transition in Vietnam is tied to the rapid growth of the economy, urbanisation, and industrialisation. We have seen the strong aspiration of the government to speed up the energy transition while meeting the requirements of economic development and the goal of becoming a high-income country by 2045. Energy transition is more seen as a potential engine for employment, and this trend will likely grow, helping to build support for renewables. John Rockhold, head of the Power and Energy Working Group under the Vietnam Business Forum Fossil energy sources are gradually being replaced by green and clean energy sources, reducing greenhouse gas emissions and combating climate change, while Vietnam is one of the first countries to renew its nationally determined contribution to the United Nations Framework Convention on Climate Change in 2020. The roadmap for the country’s transition process towards green and sustainable development will not only need to ensure … [Read more...] about Displaying readiness for the energy transition in Vietnam

The second annual report on foreign investment in Vietnam for 2022 released earlier in March by the Vietnam’s Association of Foreign Invested Enterprises noted that the United States has decreased corporate income tax from 25 to 21 per cent, while also reforming investment licensing procedures. In addition, the US government is applying higher taxes on imported products to increase the competitiveness of several industrial sectors, such as energy, automobiles, steel, and aluminium. Vietnam may need to come up with new tactics to retain foreign investors, photo Le Toan Besides that, the US is also promoting a “prosperous economic network” that connects allied countries to build supply chains of products such as semiconductors and 5G-related technology. In Europe, some countries such as Germany and Italy have also unveiled policies to limit investment in overseas markets, while France is encouraging its enterprises to expand their operation in high-value sectors, such as … [Read more...] about Gains feasible through large-scale FDI

The absence in adjustment of power rates, tuition, and hospital fees contributed to an extremely low growth rate of GDP in 2020–2021 or an excessively high one in 2022, as well as relatively moderate inflation throughout 2020–2022. In the first two months of 2023, average core inflation climbed to 5.08 per cent, outpacing the average consumer price index (CPI) growth of 4.6 per cent. Dr. Vu Dinh Anh - Market Price Research Institute Ministry of Finance For 2023, public investment is seen as an economic boost. Investment capital generated from the state budget in February 2023 was anticipated to be almost $1.3 billion, an increase of 36.9 per cent compared to the same month last year. The expected amount of newly registered foreign direct investment up to February 20 was $1.76 billion, which was 2.8 times more than that in the same period in 2022. Slowdown in industrial development and a lack in investment capital are barriers that must be resolved to prevent a downturn … [Read more...] about Focused spending can set a solid base for positive outcome

High pedestal to reach for 2023’s growth ambitions Vietnam’s economic growth is projected to ease to 6.3 per cent in 2023 from a robust 8.02 per cent last year, as services growth moderates and higher prices and interest rates weigh on households and investors, according to the World Bank’s latest Taking Stock report released last week. Growth is expected to pick up to 6.5 per cent in 2024 as the economies of Vietnam’s main export markets gain strength, the report said. The outlook for Vietnam reflects heightened uncertainty in the global economy. Downside risks include weaker-than-expected growth in Vietnam’s major export markets, which include the United States, China, and the Eurozone, tightening financial conditions, higher domestic inflation, weaknesses in the balance sheets of corporate, banking and household sectors, and financial sector vulnerabilities. The Vietnamese government has set a target that GDP will increase 5.6 per cent in Q1, 6.7 per cent in Q2, 6.5 per … [Read more...] about High pedestal to reach for 2023’s growth ambitions

A customer examining a vehicle insurance product at Bao Viet Insurance Group’s office. The potential growth of vehicle insurance is high car travel increase. — VNA/VNS Photo Experts have predicted that the health and vehicle insurance sectors will continue to serve as the primary growth drivers for non-life insurance in Viet Nam this year. Data from the Vietnam Insurance Association reveals that non-life insurance and health insurance comprised the largest proportion of the insurance industry's premium revenue last year, accounting for approximately 33.2 per cent, with revenue of VND22.41 trillion. This represented a 24.3 per cent increase from the same period in 2021. In the meantime, vehicle insurance generated a revenue of VND18.1 trillion, comprising 26.8 per cent of the overall market revenue and witnessing an 11.9 per cent growth rate over the same period in 2021. Health and vehicle insurance products are expected to continue to increase this year, especially when the … [Read more...] about Health and vehicles to be main growth drivers for non-life insurers in 2023

Illustrative image (Photo: Bao Viet) Hanoi (VNS/VNA) - Experts have predicted that the health and vehicle insurance sectors will continue to serve as the primary growth drivers for non-life insurance in Vietnam this year. Data from the Vietnam Insurance Association reveals that non-life insurance and health insurance comprised the largest proportion of the insurance industry's premium revenue last year, accounting for approximately 33.2%, with revenue of 22.41 trillion VND. This represented a 24.3% increase from the same period in 2021. In the meantime, vehicle insurance generated a revenue of 18.1 trillion VND, comprising 26.8% of the overall market revenue and witnessing an 11.9% growth rate over the same period in 2021. Health and vehicle insurance products are expected to continue to increase this year, especially when the awareness of people and economic organisations about the role of insurance continues to be improved. Regarding health insurance, the … [Read more...] about Health, vehicles main growth drivers for non-life insurers in 2023

Is development of high-tech industrial parks (IPs) likely to become a new capital trend in Vietnam? David Jackson, CEO of Colliers Vietnam Industrial and logistics assets are two of the most in-demand real estate areas across Asia-Pacific in 2023. As investors adopt a defensive strategy, sustainability and technology will drive changes in reassessing portfolios, focusing on quality and long-term values such as green certifications, new amenities, costs, and operational efficiency. Different industrial models in Vietnam will thus also be impacted by these factors in the next few years. Yet, it is too early to say whether the investment in and development of high-tech parks will become a new trend. High-tech IPs in Vietnam have not yet reached their full potential due to a lack of attention. There is much to do in terms of removing legal barriers, completing the technology infrastructure, and offering more favourable conditions to encourage investors to join the … [Read more...] about Nation must scoop up benefits of high-tech industrial parks

The index closed 1.69 points higher after gaining 4.56 points on Thursday. Trading on the Ho Chi Minh Stock Exchange (HoSE) increased by 21.22% to VND9.44 trillion ($401.53 million). The VN-30 basket, comprising the 30 largest capped stocks, saw 19 tickers gain. NVL of property developer Novaland Group hit ceiling price with a 6.7% rise. PDR of Phat Dat Real Estate Development rose 2.9%, followed by HDB of HDBank with a 2.3% gain. GVR of Vietnam Rubber Group and VHM of property giant Vinhomes both went up 2.1%. Ten blue chips fell. VCB of state-owned lender Vietcombank dropped 1.9% and MSN of conglomerate Masan Group went 1.3% lower. Foreign investors were net buyers to the tune of VND95.69 billion, mainly buying VHM and HPG of steelmaker Hoa Phat Group. The HNX-Index at the Hanoi Stock Exchange, where mid and small caps list, was up 1.18% while the UPCoM-Index at the Unlisted Public Companies Market was stayed unchanged. … [Read more...] about VN-Index closes week with meager gain