Potential growth rate

Truong Hung Long, director of the Department of Debt Management and External Finance under the Ministry of Finance. Improving the national credit rating is implemented with a long-term vision to reduce the cost of capital mobilisation, enhance the country's reputation, and meet the needs of socio-economic development in the future. Truong Hung Long, director of the Department of Debt Management and External Finance under the Ministry of Finance, spoke with Vietnam News Agency about the issues. The Prime Minister has just approved a project to improve the national credit rating by 2030. The Department of Debt Management and External Finance is assigned to develop and implement the project. What will the department do to fulfil this task? The Government issued Decision 304/QD-TTg on February 6, 2013 to approve a project on improving the national credit rating. That created favourable conditions for the Government in accessing the international capital market. It is also a way … [Read more...] about Viet Nam promotes solutions to improve national credit rating

Goods at Cat Lai Port in HCM City. Demand for Viet Nam's export goods can be reduced due to the global economic slowdown in the wake of the Fed’s rate increase. — VNA/VNS Photo The latest interest rate hike by the US Federal Reversal (Fed) will weigh on the global economy, including Viet Nam, but experts expect impacts of the Fed’s move on the country will not be significant. The Fed last week raised its benchmark interest rate by half a percentage point, the most aggressive step yet in its fight against a 40-year high in inflation. Banking and finance expert Can Van Luc, chief economist of the Bank for Investment and Development of Vietnam, told Viet Nam News that the Fed’s move in theory will affect the country’s economic growth, foreign debt payment obligations, exchange rate and foreign investment. “The Fed’s move may push up the global interest rate and slow global economic growth, which will reduce the demand for Viet Nam's export goods. It therefore will slow the … [Read more...] about Fed rate hike’s impact on Vietnamese economy not significant

The stock market plummeted last week causing headaches to investors. (Photo: SGGP) Stock market wobbles Many investors have expected to hunt good stocks in May because many stocks have plummeted to attractive price ranges from the decline that lasted for the last four weeks. Not only speculative stocks but mid-cap and large-cap ones were also sold off. Neither new investors nor professional investors dare to see their accounts being eroded day by day. Many investors sold to cut losses, and the total accounts lost by 30-50 percent within two weeks. Not only individual investors but large investment funds also recorded heavy losses in the first four months of the year. Specifically, one of the oldest and largest ETFs in Vietnam, Vaneck Vectors Vietnam ETF (VNM ETF), with a portfolio of US$546 million, saw a decrease in portfolio performance of 23.92 percent from the beginning of 2022. Vietnam Equity Fund (VEF) also recorded a negative portfolio performance of nearly 10 percent in … [Read more...] about Vietnam’s stock market has potential in long term

S&P forecast Vietnam’s GDP will grow 6.9% in 2022 before settling closer to its long-term trend of growing 6.5%-7% from 2023 onward. S&P Global Ratings on May 26 raised its long-term foreign and local currency sovereign credit ratings on Vietnam to 'BB+' from 'BB'. S&P expects Vietnam's economy to continue its upward trend. Source: S&P The rating agency also affirmed the country’s short-term rating at ‘B’ with a stable outlook. “The stable outlook reflects our expectations that over the next 12-24 months, Vietnam's economy will continue to recover from the challenges posed by the pandemic over the past two years. This will support the external position and rein in fiscal deficits,” it noted. S&P added it could raise the ratings if Vietnam's institutional settings improve considerably, in ways that augment policy predictability and transparency. Such favorable changes in the policy environment could bolster investor confidence in the … [Read more...] about Vietnam’s long-term credit rating upgraded to “BB+”: S&P

Buyers at a supermarket (Photo: SGGP) Different from the boring scene when the Covid-19 epidemic raged, in recent months, especially on the big holiday of April 30 and May Day, Ho Chi Minh City has witnessed a bustling shopping scene again at commercial centers and supermarkets. Large shopping centers such as Aeon, BigC, Emart, MM Mega, or supermarket systems Saigon Co.op, Satra have seen crowds of customers who were waiting in line to buy commodities. A representative of Aeon Vietnam said that during the past holiday, business locations across the country have recorded positive growth. For example, at Aeon General Department Store and supermarket - Tan Phu, the number of visitors and purchasing power increased by 30 percent compared to weekends in the first few months of the year. Ms. Huynh Thi Kim Thanh, Director of General Department Store and supermarket Aeon Tan Phu said that compared to the holiday of April 30, 2021, the number of visitors to Aeon - Tan Phu this year … [Read more...] about HCMC sees purchasing power increase, recovery of retail industry

Largest food producer, exporter The Mekong Delta boasts huge potential and advantages for agricultural development and is one of the largest, most fertile plains in Southeast Asia in particular, and the world in general. It is Vietnam’s largest producer and exporter of ​​food, aquatic products, and fruits – contributing about 50 percent of rice output, 95 percent of rice exports, nearly 65 percent ​​of aquaculture production, 60 percent of fish exports and nearly 70 percent of all fruits. Harvesting rice in Can Tho The Mekong Delta’s rice output has increased from 4.5 million tonnes in 1976 to nearly 25 million tonnes. In 2017, the prime minister issued Resolution 120 to promote the Mekong Delta’s climate-smart sustainable development, which set goals to 2050 and a vision to 2100 for the region’s prosperity and safe, sustainable development. Policies for the region were improved, focusing on sustainable agricultural development and modernization, urban and … [Read more...] about Transport infrastructure development key to Mekong Delta growth

Carpet weaving helps people in Đức Mỹ Commune in Càng Long District improve their income. — Photo courtesy of nhandan.vn The preservation and development of craft villages in the Mekong Delta has not only made significant socio-economic contributions, they also play a key role in promoting sustainable development. Local officials say the villages enable economic restructuring in a positive direction as they use local materials and generate stable employment for many residents. An Giang Province currently has recognised 29 craft villages with 3,846 households that provide jobs for more than 12,000 people with an average monthly income of VNĐ3.5 to 5 million (US$160-220) per person. Most of these make products for the domestic market. A number of relatively large-scale establishments are actively seeking wider markets through fairs and promoting products such as fish sauce, jaggery and handicrafts. An Giang Province is famous for the jaggery made in Tri Tôn and Tịnh Biên … [Read more...] about Mekong Delta craft villages key contributors to sustainable growth

A map shows direction of the planned Ring Road No. 4 running through HCM City and provinces of Bình Dương, Đồng Nai, Long An and Bà Rịa-Vũng Tàu. — Photo laodong.vn HCM CITY — Construction of the first phase of Ring Road No.4, which runs through five southern localities, including HCM City, should be completed by 2028, local reports say. The road, almost 200km long, is expected to boost regional linkages and boost economic growth for HCM City and the provinces of Bình Dương, Đồng Nai, Long An and Bà Rịa-Vũng Tàu, as well as the Southern Key Economic Region. The project, approved more than 10 years ago, is estimated to cost around VNĐ100 trillion (US$4.4 billion). It will be 197.6km long with four lanes in the first phase. In the second phase, the road could be widened to six or eight lanes. Last year, the Prime Minister issued a document asking five localities to implement sections of the new ring road which run through their localities. Accordingly, Bà Rịa-Vũng Tàu, Bình … [Read more...] about New southern ring road set to open to traffic in 2028

He was speaking during a meeting with the US business community in Washington DC on May 12 (US time), as part of the Vietnamese leader’s trip to the US. The meeting was held by the US-ASEAN Business Council and the US Chamber of Commerce. PM Chinh affirmed that Vietnam always considers the US as a leading, important partner. He said the impressive growth of bilateral trade of between 17-20 per cent a year proves that there remains ample room for economic development between the two countries. Prime Minister Pham Minh Chinh meets US investors and business leaders in Washington DC on May 12 (US time) — VNA/VNS Photo Vietnam is the ninth largest trading partner of the US. Two-way trade turnover between the two countries in 2021 reached nearly US$112 billion in spite of difficulties caused by the COVID-19 pandemic, the PM said. PM Chinh added that Vietnam is focusing on technology renovation, digital transformation and diversification of the supply chain. The … [Read more...] about PM Chinh meets US business community

Hanoi-headquartered Techcombank recorded another year of stellar financial performance and growth in 2021, while continuing to support its customers, employees and communities in Vietnam, especially those impacted by the Covid-19 pandemic. In 2021, the bank recorded VND37.1 trillion (over $1.6 billion) in its total operating income, up 35.4 percent year-on-year. The bank’s profit before tax (PBT) rose to VND23.2 trillion. The company has achieved double-digit PBT growth for five consecutive years, at a compound average growth rate (CAGR) of 50 percent between 2016 and 2021. The bank’s performance remained resilient despite Covid-19 casting its shadow on the local markets and causing disruption to businesses and people’s lives. Techcombank grew its total assets by 29.4 percent, to VND568.7 trillion, and delivered an "industry-leading" return on its assets of 3.7 percent, according to the bank. It has also been able to maintain an impressive current account and savings account … [Read more...] about Digital, data and human excellence key components in Techcombank’s transformational journey