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The country’s three high-tech parks still have plenty of space to fill for new projects. Photo: Le Toan

Hoa Lac High-tech Park (HHTP) is now surrounded with complete infrastructure and favourable transport links which were expected to be an important factor for investment attraction. According to the park’s Management Board, it attracted six projects with total investment of about VND9 trillion ($391 million) in 2020, including one foreign and five domestically-owned. They focus on research and development, manufacturing, and high-tech pharmacy.

While the figure is higher than that of 2019, when the park lured in just four domestically-invested projects registered at VND7.46 trillion ($324 million), it was far lower than 2018, when it attracted 11 projects registered with VND17 trillion ($739 million), a record high over the past 20 years. Notable names involved included Nidec, Mitsubishi, and Hanwha Group.

The result is lower than expected though the HHTP itself enjoys Decree No.74/2017/ND-CP which came into effect in 2017, governing special mechanisms and policies for the park only. Few social infrastructures such as workers’ housing, hospitals, trade centres, and other services have been licensed there.

Industry insiders said that in the context that the country is promoting high-tech foreign investment and the trend of making business and investment in the local market among technology groups, the lacklustre foreign investment attraction of the HHTP has raised questions over how attractive it actually is. While COVID-19 is an obvious reason, others should be included, some added.

Established in 1998, the filling rate of the park is now 40 per cent of its over 1,500 hectares. The HHTP boasts the longest history among the country’s three high-tech parks, and has the advantages thanks to Decree 74, which includes unique incentives such as the 10 per cent corporate income tax (CIT) within the first 30 years for a new investment project of at least VND4 trillion ($174 million).

Looking to the south where Saigon High-tech Park (SHTP) is located in Ho Chi Minh City, Nguyen Anh Thi, head of its Management Board said that it has licensed two foreign-invested projects early this year – the $19.5 million US-invested Arevo 3D printer factory and the $1 million office for lease project by South Korea’s SNST & Finger Vina.

“Due to the land funds left for new projects, the park plans to attract $200 million worth of investment this year, and the production value of high-tech products hit $25 billion, while disbursement of the capital there is $700 million,” Thi said.

In 2020, the SHTP lured over $35 million worth of foreign investment, meeting half of the yearly target due to COVID-19 impacts and limited land funds left.

In the central region, Danang High-tech Park (DHTP) lured in $150 million worth of foreign investment and $108.7 million of domestic funding in 2020. Established in 2010, the fill rate in the park is now at 30 per cent.

Similar to the HHTP, the government issued Decree No.04/2018/ND-CP in 2018 on incentive policies for the DHTP, making it a motivation for the park to increase its attraction.

Competition among the three high-tech parks is expected to increase as the Ministry of Science and Technology is working on a draft decree in which incentive policies should be applied commonly for all three. Thus far the draft decree has received differing opinions, with some saying that the highest incentives in the decrees should be kept for certain parks, while others recommended that the policies should indeed be applied for all.

If the latter option gets the go-ahead, the high-tech parks will no longer have their own specific advantages and will be required to improve themselves and build other advantages to make them more attractive to investors.

For Hoa Lac, the groundbreaking of the National Innovation Centre (NIC) in early 2021 will be a new driving force. According to the project’s draft plan drawn up by the Ministry of Planning and Investment’s (MPI) Central Institute for Economic Management, the NIC will be developed with the total investment of VND1.9 trillion ($82.6 million), including VND1.7 trillion ($73.9 million) for the physical construction and VND200 billion ($8.7 million) for operating capital. The NIC is expected to lure 40 big technology companies, 150 startups and small- and medium-sized enterprises, and 15 venture investment funds, thereby creating more than 5,000 jobs.

Government policies are in place to accelerate digital transformation across sectors, thus promoting domestic businesses and international ventures to make more investment in the sci-tech sector in the months to come.

As shown in statistics from the MPI, sci-tech was the fifth-biggest sector for overseas investors last year, and the fourth-biggest in the first two months of 2021.

The Hanoitimes – IFC will work with Hanoi to formulate a new-generation FDI strategy in response to the government’s master plan on foreign investment promotion toward 2030.

IFC, a member of the World Bank Group, today [June 27] signed a memorandum of understanding (MoU) with the People’s Committee of Hanoi to support its efforts to attract new-generation foreign direct investment (FDI) and diversify its funding sources, thereby sustaining the city’s rapid economic development, competitiveness, and inclusive prosperity.

IFC will work with Hanoi to formulate a new-generation FDI strategy. Photo: Nguyen Tung.

As one of the fastest growing cities in Asia and home to over eight million inhabitants, Hanoi accounts for one-fifth of Vietnam’s gross domestic product (GDP).

Hanoi attracted US$8.45 billion in FDI in 2019, highest among the country’s 63 cities and provinces. Three areas namely property development, processing and manufacturing, and telecommunication and information drew the largest shares of FDI.

To sustain robust socioeconomic development, Hanoi aims to attract higher-quality streams of FDI. This will support the city’s strategy of developing high-tech and high value-added industries, increasing local sourcing, and creating more and better jobs.

“Strategic FDI as guided in the Politburo’s Resolution 50/2019 on orientations to finalize policies and mechanisms to promote FDI quality and effectiveness toward 2030 plays an essential role in sustaining Hanoi’s sustainable economic and employment growth and in realizing its industrialization and modernization plan toward 2030,” said Nguyen Duc Chung, Chairman of the People’s Committee of Hanoi.

“We welcome IFC’s support in developing a new investment strategy and diversifying funding sources as well as mobilizing quality investors through its global network,” Chung added.

Under the MoU framework, IFC will work with Hanoi to formulate a new-generation FDI strategy in response to the government’s master plan on foreign investment promotion toward 2030. Where possible, IFC will also assist Hanoi in diversifying its funding sources. The overall effort will leverage IFC’s global network of clients and partners, with benefits to potential key sectors including financial markets, infrastructure, logistics, and health and education.

“Hanoi already possesses many key factors that are attractive to higher quality FDI. The current environment of global supply chain changes — as a result of the Covid-19 pandemic — provides a good opportunity for the city to further prioritize FDI inflows in line with its development strategy,” said Kyle Kelhofer, IFC Regional Manager for Vietnam, Cambodia, and Lao.

“This includes FDI with increased local value-addition, with increased technology focus, to strengthen foreign-local firm linkages and help enhance local supply chain opportunities, foster improved job opportunities, and boost the overall competitiveness of the city.”

Promoting private sector development, IFC has been supporting Vietnam to improve business competitiveness and attract international investors over the past two decades. Most recently, IFC worked with the Ministry of Planning and Investment on recommendations for Vietnam’s new national FDI approach. It is also helping Vietnamese manufacturers improve capacity and supply to multinationals through a pilot Vietnam Supplier Development Program.

HCM City (VNA) – The Ministry of Agriculture and Rural Development (MARD) has urged localities to adopt drastic measures to fight irregular, unreported and unregulated (IUU) fishing.

All Vietnamese fishermen, businesses, and local authorities must consider this an important and urgent task to affirm the prestige of Vietnam’s fisheries sector in the world and among countries it shares territorial waters with, and be resolved to meet the standards set by the European Commission (EC).

Since the EC gave a “yellow card” warning to Vietnam’s fisheries and seafood in the European market in October 2017, the entire sector has suffered marked losses.

Tran Dinh Luan, head of the ministry’s Directorate of Fisheries, said it is necessary to prevent, deter, and eliminate IUU fishing in order to remove the “yellow card” warning, develop fisheries responsibly, and integrate into the world.

This is also the guideline of the Party and State, as reflected through the Law on Fisheries.

Since the imposition of the EC warning, Vietnam’s fishery export value to Europe has fallen by between 6 and 10 percent annually.

From being the second-largest importer of Vietnam’s seafood, with value representing 17-20 percent of Vietnam’s total export revenue, the EU now ranks fifth, after Japan, the US, the Republic of Korea (RoK), and ASEAN.

The Government and the National Steering Committee on IUU Fishing Prevention have issued a range of documents instructing ministries, agencies, and People’s Committees in 28 coastal cities and provinces to drastically take preventive measures. The MARD has conducted regular inspections in localities.

The EC has highly valued Vietnam’s political determination to implement its recommendations in this regard.

Vietnam has openly and transparently announced the results of inspections of seafood exports to the EU and has completed a legal framework that serves as a foundation to materialise relevant tasks, including the enforcement of the Law on Fisheries, two decrees adopted by the Government, a decision by the Prime Minister, and a circular from the MARD.

The country has joined and realised the Food and Agriculture Organisation (FAO)’s Agreement on Port State Measures, whose main objective is to prevent, deter, and eliminate IUU fishing, and also the UN Fish Stocks Agreement.

The EC has lauded Vietnam’s efforts in installing fishing vessel monitoring equipment and enhancing the management of seafood exploitation.

One of 28 coastal localities in Vietnam, the Mekong Delta province of Soc Trang has posted significant achievements in fighting IUU fishing.

With 366 fishing vessels of 15 metres in length or more operating at sea, the province has stepped up communications work so that captains, sailors, and ship-owners seriously observe relevant regulations.

According to Duong Tan Truong, head of the provincial Department of Fisheries, Soc Trang has developed a plan to conduct tasks in fighting IUU fishing and established a working group to lead the fight.

It carried out 10 patrols at sea last year and inspected 146 fishing vessels inside and outside of the province.

Soc Trang also granted 381 seafood certificates to 11 processing and export firms in the locality during 2020, with more than 6,000 tonnes of seafood, according to Truong.

Southernmost Ca Mau province, meanwhile, has also made substantial efforts in disseminating relevant legal documents to raise public awareness about IUU fishing, and enhancing coordination between relevant agencies.

The province will work harder in the time ahead to prevent fishing vessels that deliberately operate in foreign waters./.

VNA

The Hanoitimes – So far, all dead victims in Vietnam are adults with certain underlying medical conditions.

Vietnam reported one more death from Covid-19 on Sunday, lifting the death toll to 24, all with pre-existing medical conditions.

Deputy Minister of Health Nguyen Truong Son reads X-ray film of Covid-19 patients. Photo: Tuan Dung

The latest victim is an 82-year-old woman from Danang, the epicenter in Vietnam since the return of SARS-CoV-2 late in July.

Pneumonia caused by Covid-19 and septic shock are attributed to the death of the woman that suffered meningitis for years.

The first deaths of Covid-19 in Vietnam was recorded after the resurgence of the virus in the community.

Deputy Minister of Health Nguyen Truong Son said among Covid-19 patients with pre-existing diseases, those with acute renal failure and hemodialysis treatment are at high risk of fatality.

So far, 14 out of 24 Covid-19 deaths in Vietnam are patients with kidney failure.

He noted that since the beginning of the pandemic in Vietnam, the health ministry has adjusted medications for Covid-19 patients six times based on scientific knowledge and experiences. Each Covid-19 patient gets treatment that is provided by both on-site resuscitation specialists and the country’s leading health professionals through online consultations.

Explaining why Vietnamese doctors could cure Patient No.91, a British pilot who experienced more than three months in critical conditions, Mr. Son said Vietnamese casualties are mostly elder adults with certain underlying medical conditions while the British patient was quite young, aged 43, and had good health.

Echoing Mr. Son, doctor Tran Thanh Linh who directly treated Patient No.91 said the man suffered only repeated sepsis and had good resistance to the disease.

Hanoi (VNA) – Nguyen Ngoc Manh, a delivery driver, has been hailed a hero after he caught a baby who had fallen from the 13th storey of a apartment block in Hanoi.

He said he heard desperate screams from neighbours alerting people below that the child had climbed over a balcony railing and was clinging on for her life.

The 31-year-old driver climbed onto the corrugated roof of a small structure on the ground floor moments before the three-year-old girl lost her grip.

As she plummeted to the ground, Manh managed to grab her and pluck the baby to safety.

“I don’t think I’m a hero. Anybody would have done the same,” he said.

On March 1, Prime Minister Nguyen Xuan Phuc sent a letter praising Manh for his bravery. In his letter, he wrote “I praise Nguyen Ngoc Manh for his courageous action and high sense of responsibility.”

He asked the Hanoi People’s Committee and the Central Committee of Emulation and Commendation to honour Manh’s noble gesture, kindness and compassion so that there will be more people like him in society.

The chairman of the Hanoi People’s Committee praised the driver for his bravery.

The capital city also launched a movement called “Good People, Good Deeds ” following Manh’s action, which has also received bags of compliments from netizens.

Although the child suffered a dislocated hip from the fall, she is recovering well in hospital and is expected to be allowed to leave soon./.

VNA

JP Morgan, May Bank selected TCB share as the top pick among Vietnam’s listed banks

In a report, JP Morgan has stated that Vietnamese banks offer the best combination of growth and Return on Equity (ROE) in ASEAN. High nominal GDP growth and resilience in the last 12 months provide visibility on credit and earnings growth over the next few years.

In particular, JP Morgan has reiterated its “overweight” rating on Techcombank – Vietnam’s leading commercial lender – with an upbeat outlook on the bank’s performance. The target price for the bank’s share is VND55,000 ($2.4) per share as of December 2021, calculated via JP Morgan’s two-stage dividend discount model.

The rally in the bank’s share price as the top pick among Vietnam’s listed banks is fuelled by multiple indicators.

According to the US-based financial group, Techcombank is the most profitable bank in the country on ROA despite having a low deposit market share of 3 per cent.

Expecting a 16 percent EPS CAGR for the sector, led bay TCB

The bank’s zero-fee programme and 1 per cent cash back debit card have led to sharp improvements in current accounts saving accounts (CASA) and to deposits going from 22 per cent in 2017 to 44 per cent in 2020. The brokerage also expects further improvement in CASA ratio to 50 per cent by 2023, leading to higher net interest margin (NIM).

Specifically, Techcombank has the highest capital (16.1 per cent capital adequacy ratio [CAR]) and lowest NPL (0.5 per cent), allowing for a 20 per cent CAGR for loans over the 2020-2023 period.

Techcombank is also one of the rare banks across the region that is making money on both sides of the balance sheet, as well as on fee income, adjusted for all allocated costs. This allows for longer-term visibility on returns.

Increasing PTs after EPS changes

The lender also rolled out a system to regulate total credit. This is due to a large corporate bond book and a 63 per cent loans-to-assets ratio. Further, high capital and low NPL holdings have allowed credit quotas in the 20 per cent range for the next three years, according to JP Morgan.

JP Morgan also expects the bank to be on a self-sustained capital level, given its combination of solid Return on Equity (RoE) and growth.

Sharing the same boat, Maybank Kim Eng Securities has recently voted Techcombank as Vietnam’s No.1 private-sector bank with a strong brand, deposit franchise, and a solid banking platform for high-profile companies in Vietnam.

The lender is considered the top player in bond underwriting and bancassurance competition, with a high-calibre management and execution team.

On the other hand, Techcombank has maintained consistent, robust profit growth in 2020, up 23 per cent on-year.

“We forecast Techcombank’s profit will grow 26 and 22 per cent in 2021 and 2022, respectively. Accordingly, ROE will improve to 19 per cent, with stronger credit growth and faster-than-expected easing in provisioning bringing about significant upsides,” noted Maybank.

The lender’s strategy is to focus on top private-sector companies, upper SMEs and affluent retail, and is run by a highly capable team. All of these factors enabled it to stay resilient through the unprecedented health crisis.

“Techcombank is now being traded at 1.4x price-to-book value (P/BV) in our 2021 expectation, which is in line with local peers’ average, despite its banking platform, earnings power, and quality being superior. We believe the bank’s robust profit growth outlook on the back of a strong balance sheet, along with improved market sentiment towards the bank’s stock in recognition of the bank’s strengths, will support further rerating,” the brokerage added.

Maybank also recommends investors to buy Techcombank stocks, with higher target price of VND43,700 ($1.9) as of December 2021, up 21 per cent compared to the current price.

The brokerage believes the market’s stronger sentiment towards Techcombank, in recognition of its strengths and improving ROE, will drive up its valuation close to that of industry-leading banks.

Earlier this month, Techcombank is also one of the nine Vietnamese lenders topping the Brand Finance Banking 500 list, with its brand value increasing from 327th in 2020 to 270th in 2021.

Bloomberg recently also stated that Southeast Asian stocks could be safe havens amid the disruption in global risk assets led by spiking yields. Thus, Techcombank – as the most dynamic, profitable bank in Vietnam – is among the best shelters from the global yield havoc.

Techcombank has the highest upside of 42 per cent (followed by ACB with 29 per cent) according to JP Morgan. Analysts also raised target price on resilience observed in 2020. Particularly, JP Morgan raised earning per share for the 2021-2022 financial year and target price for ACB, TCB, and VPB by 8-11