Business Beat

Many experts call for a clear legal mechanism to convert foreign-owned firms into public companies, enabling them to list on the Vietnamese stock exchange. — Photo tinnhanhchungkhoan.vn The economy grew at 6.7 per cent in the second quarter. The foreign-invested sector is considered a key player in helping Viet Nam achieve such growth rates through its exports. In the first eight months of this year, foreign-owned firms’ exports including crude oil were worth US$118 billion, up 5 per cent from the same period last year and accounting for 69 per cent of the country’s total exports. Foreign firms’ imports during the period were worth $96.15 billion, up 4.8 per cent and accounting for 57.7 per cent of all imports. In light of their huge contribution to the country’s economy, many experts call for a clear legal mechanism to convert foreign-owned firms into public companies, enabling them to list on the Vietnamese stock exchange. They said the time is ripe for … [Read more...] about It’s time to allow foreign firms to list in Việt Nam: experts

People shopping at a supermarket. Some experts have said recently there is an excessive money supply in the economy.— Photo vneconomy Some experts have said recently there is an excessive money supply in the economy. They pointed to core inflation of 1.96 per cent year-on-year in June this year, warning this is the correct measure of prices rather than headline inflation, which most people follow in the country. Headline inflation includes items such as food and energy prices, whose prices tend to be much more volatile. On the other hand, core inflation, also called non-food inflation, is calculated from the consumer price index minus the food and energy components, and is the measure on which the central bank bases its monetary policies. In Viet Nam, the General Statistics Office is responsible for tracking both. The Government started announcing core inflation in April 2015. It reached a high of 2.2 per cent that very month and a low of 1.18 per cent in January 2018. The … [Read more...] about Keep an eye on core inflation: analysts

Banks are offering big loans to individuals to buy houses at attractive interest rates. banks are offering big loans to individuals to buy houses at attractive interest rates. banks are offering big loans to individuals to buy houses at attractive interest rates. — Photo cafef.vn Nguyen Quoc Hung, director of the State Bank of Viet Nam’s credit department, recently told the media that banks have plentiful liquidity and are ready to lend to risky areas including the property sector. “Though we all know real estate is a business with high risks, it does not mean the banks restrict lending to the sector.” His statement came in the wake of the central bank making public a draft circular on adjustments to the Circular 36/2014/TT-NHNN, stipulating prudential ratios and limits in activities of credit institutions and foreign bank branches. The draft circular set the risk weight asset ratio to 150 per cent for mortgages worth VND3 billion (US$126,000) and the rate for … [Read more...] about Banks keen on housing sector despite SBV tightening

A view of Sapa Homestay Ta May in Sapa District, Lao Cai Province. — Photo booking.com The number of people coming to Viet Nam combining business with tourism has increased significantly in recent times, and is one of the reasons for arrival numbers to jump in recent years. According to the General Statistics Office, last year 15.6 million international visitors came, 2.7 million higher than in 2017. Nearly 7.3 million have arrived in the first five months of this year. Many opt for vacation rentals and homestays because they find it cheaper than traditional accommodation at hotels. Besides, it enables them to experience living together with locals and so has become a popular choice, especially among young people who like to travel and explore cultures and eat, live and work with homestay hosts. Thanks to its many advantages, homestay tourism is also increasingly preferred by foreign tourists and also many Vietnamese, especially younger tourists. The homestay and vacation rental … [Read more...] about The future of homestays in Viet Nam

Edgar Bonte, the CEO of Auchan Retail, recently told French newspaper les Echos that his company has decided to sell all of its 18 stores in Viet Nam. — Photo langvietonline.vn Edgar Bonte, the CEO of Auchan Retail, recently told French newspaper les Echos that his company has decided to sell all of its 18 stores in Viet Nam. The supermarket chain, present in Viet Nam for four years, is expected to be bought by a domestic retail group this week. Bonte said it generated revenues of 45 million euros (US$50.4 million) last year but made losses. He did not disclose the latter figure. Auchan is the last remaining western retailer in Viet Nam after French multinational retail chain Groupe Casino withdrew in 2016. Others to exit, due to various reasons but mainly because of losses, include Germany’s Metro Cash & Carry. In 2014 it sold its business in Viet Nam to Thailand’s Berli Jucker Corporation for 655 million euros (approximately US$879 million). The Thai company … [Read more...] about Survival of the fittest in Viet Nam’s retail market