Investment guaranteed growth bond

Phan Thiet airport to start construction in March

March 6, 2021 by e.vnexpress.net

The information was announced by Senior Lieutenant-General Tran Don, Deputy Minister of National Defense at a meeting with the south-central province’s authorities Friday.

In 2009, the government approved a plan to build Phan Thiet airport in beach town Phan Thiet of Binh Thuan, which lies more than four hours east of Ho Chi Minh City and currently has none.

The plan said the airport would span 543 hectares (1,340 acres) to serve both civilian and military purposes and invested under the build-operate-transfer format by Hanoi-based Rang Dong JSC.

It also said work would start in 2015 for the project to be finished in 2018. However, nothing had been carried out as scheduled.

In 2017, Binh Thuan proposed to upgrade the civil rating of the planned airport from 4C to 4E as regulated by International Civil Aviation Organization.

In specific, the province wanted to extend the airport’s runway from 2,400 meters to 3,050 meters in order to raise its capabilities toward the 4E rating. The increased rating would allow it to handle Airbus A320s or equivalent sized and advanced military aircraft.

The government agreed with the proposal within that year, which means the cost for the airport will stay at around VND10 trillion ($434 million).

The problem with investment capital had prevented the plan to be executed. Now, the problem has been solved, said Deputy Minister Don.

He said the Ministry of National Defense had previously relied on a plan to auction former Nha Trang airport in central Khanh Hoa Province to raise funds for building Phan Thiet airport.

However, the government has recently agreed to build Phan Thiet airport using the state budget in the form of public investment. “The government has allocated the fund for the ministry and work on the joint-use airport should be carried out soon.”

If everything is to happen as planned, construction should be finished in 20 months so the airport could start operation next year, Don noted.

Rang Dong JSC will continue to work as investor for the civilian part of the airport. As assigned by the ministry, the company has to soon complete adjustments to the re-feasibility study report for the project so work on the civilian side could be carried out at the same time as that for its military equivalent.

Vietnam currently has 22 airports, including eight in the northern and north-central regions.

The master plan for airport development the Ministry of Transport is drafting envisages building five new airports, all in the north, by 2030.

It is now in the process of collecting feedback from other government agencies and local administrations before submitting the plan to the government for approval.

New regulation on minimum trading lot at HOSE aims to keep small investors away

March 6, 2021 by vietnamnet.vn

Around $200 billion is now in tumult after a succession of days of network congestion and the news about the required increase in minimum trading lot from 100 to 1,000 shares on the HCM City stock market.

New regulation on minimum trading lot at HOSE aims to keep small investors away

Nguyen Giang, owner of The Way Coffee, completed the procedure to open an account at SSI Hanoi Branch after hearing that the HCM CIty Stock Exchange (HOSE) was planning to increase the required minimum trading lot from 100 shares to 1,000 shares.

The reason behind the plan, as explained by Le Hai Tra, HOSE’s CEO, was to ease the overload.

However, this was not good news for many investors, including Giang. Because of Covid-19, he no longer can work as an outbound tour guide, which he did for 10 years.

In 2020, he opened a street coffee shop. However, the third Covid-19 outbreak once again affected his business. Giang then decided to make financial investments as he has confidence in the bright prospects of the stock market.

However, the calculations of the investor may fail because of HOSE’s tentative policy.

If the tentative policy takes effect, Giang will have to spend VND100 million at least for every purchase transaction of VIC (Vingroup), VJC (Vietjet), VCB (Vietcombank) and VNM (Vinamilk).

If buying SAB (Sabeco), he would have to spend VND180 million at least, and ifor VCF (Vinacafe Bien Hoa), he would have to spend VND240 million.

These are very large amounts of money compared with Giang’s investment plan.

However, Tra said the policy, once applied, would bring benefits. It would not only help ease congestion thanks to the reduction of 40-50 percent in number of transactions, but would also better protect small investors.

Nguyen Duy Hung, president of SSI, also commented that this is the best choice for now to maintain the system’s operation.

However, many experts and securities companies don’t share the same view. They have warned that the policy isn’t in line with stock market development and discriminates against small and big investors.

“The plan is unreasonable. It will affect many private investors and be contrary to international practice,” the brokerage director of a HCM City-based securities company said.

The decision to raise the required minimum trading lot from 10 shares to 100 shares in the past once put difficulties for many investors as they could not sell shares. However, the decision was still acceptable because every transaction had value of between several millions of dong to tens of millions of dong only.

But this will be diiferent if the minimum trading lot is raised to 1,000 shares.

V. Ha

PM Phuc calls on combined strength for stronger national development

March 6, 2021 by vov.vn

These remarks were made by Prime Minister Nguyen Xuan Phuc at an event known as “Dialogue 2045” with various business representatives and intellectuals at the Thong Nhat Conference Hall in Ho Chi Minh City on March 6, featuring the participation of many senior leaders.

The Government leader reviewed the achievements following nearly 35 years of pursuing the renewal process under the leadership of the Community Party of Vietnam (CPV), with the national economy enjoying positive growth. The lives of local people have been greatly improved, with the life expectancy increasing compared with advanced countries such as Japan and Singapore, with greater attention being given to a range of social and cultural issues.

PM Phuc therefore highlighted the contributions made by the local the business community to the nation over the past 35 years of Doi Moi (Renewal), expressing hope that firms can learn new ideas to transform the nation into a developed and high-income country.

The nation must be home to business giants capable of competing both regionally and globally by unlocking the potential and making use of the strengths of citizens living and working inside and outside of the country, he emphasized.

The nation must also strive to lure and promote external resources in terms of technology, knowledge, and innovation, along with building a brighter future.

Dialogue 2045 was held as part of efforts to chart a course of actions to translate the development goals through to 2045.

In line with the Resolution adopted at the 13th National Party Congress, the country expects to move out of its low middle-income status by 2025.

According to the schedule, the nation will become an upper-middle income country by 2030 and gain developed and high-income nation status by 2045.

These are the key time milestones as the country prepares to mark the 50th anniversary of liberation of the South and national reunification in 2025, the 100th founding anniversary of the CPV in 2030, followed by the 100th founding anniversary of the Democratic Republic of Viet Nam, now known as the Socialist Republic of Vietnam, in 2045.

PM Phuc also stated that “Dialogue 2045” will be held periodically, both via direct and online platforms, thereby covering many topics from socio-economy, the environment, culture, education, science and technology, and international integration, including national security and defence.

Share of female management in FDI highest among Vietnam economic sectors

March 6, 2021 by hanoitimes.vn

The Hanoitimes – The number of Vietnamese women accounts for half of the labor force but less than one-fourth of overall management roles.

The percentage of women in management in the foreign-direct investment (FDI) sector is a third of the number of people in leadership positions, the highest (34.1%) compared to the 29.7% and the 20.2% in state and domestic spheres, respectively, according to the latest report.

Vietnam’s women account for half of the labor force but less than one-fourth of overall management roles. Photo: ILO

A report “Gender and the labor market in Vietnam” by the International Labor Organization (ILO) in Vietnam shows that there is still a gender gap in labor force participation in the country, especially in management level. Uneven distribution of family responsibilities in Vietnam’s society could be the reason behind.

The elimination of gender gaps in education has not translated into a comparable narrowing of gender gaps in employment quality, earnings, or decision-making jobs. “They are much more likely to involve in household work than men, and spend twice as many hours on it,” said Valentina Barcucci, ILO Vietnam Labor Economist, lead author of the research.

Women spent an average of 20.2 hours per week cleaning the house, washing clothes, cooking and shopping for the family, doing family care and childcare, whereas men spent only 10.7 hours. Close to one fifth of men did not spend any time on these activities at all.

Chart: The portfolio of female management in total employment, by sector, 2019

As a result of the pandemic, total working hours dropped significantly in the second quarter of 2020, and recovered through the second half of the year. Women faced the most severe losses, according to the report.

The total weekly hours worked by women in the second quarter of 2020 were only 88.8% of the total for the fourth quarter of 2019, compared to 91.2% for men.

“Before the Covid-19 pandemic, both women and men had a relatively easy access to jobs, but the quality of such jobs was on average lower among women than among men,” said Valentina Barcucci, ILO Vietnam Labor Economist, lead author of the research.

Female workers were overrepresented in vulnerable employment, particularly in contributing family work. They earned less than men (by 13.7% on monthly wages in 2019), despite comparable working hours and the progressive elimination of gender gaps in educational attainment.

Gender inequality in the labor market is traced back to the traditional roles that women are expected to play, supported by the social norms, said ILO Vietnam Director, Chang-Hee Lee.

The 2019 Labor Code has opened opportunities to close such gender gaps, for example in retirement age or removing the ban on female employment in certain occupations, a much more difficult task still awaits Vietnam.

“That is changing the mind sets of the Vietnamese men and women themselves which will in turn influence their behavior in the labor market,” Chang-Hee Lee said.

Vietnam turns green light to export of medical masks to pandemic-hit countries

April 16, 2020 by hanoitimes.vn

The Hanoitimes – The move is taken to support domestic producers in overcoming the unprecedented crisis due to the Covid-19 pandemic and these items are only allowed to export to countries heavily affected by the coronavirus.

The Vietnamese government has allowed the export of medical masks, protective clothing and medical equipment, provided that domestic demand for those items is met (including for reserves), VnExpress quoted Prime Minister Nguyen Xuan Phuc as saying at a meeting on April 15.

The move is taken to support domestic producers in overcoming the unprecedented crisis due to the Covid-19 pandemic and these items are only allowed to be shipped to countries affected by Covid-19.

Illustrative photo

Under the Vietnamese government’s resolution dated February 28, in the context of the Covid-19 pandemic, medical face masks could be shipped out of the country only for the purpose of international aid provided by the Vietnamese government. In addition, the business is allowed to export a maximum of 25% of its output. The regulation aimed to give priority to the fight against the pandemic in the country and ensure sufficient medical equipment for doctors.

According to the health ministry’s data, Vietnam currently has 68 producers of medical masks and protective suits. A number of textile enterprises have also started importing production lines of these items, such as Garment 10 Corporation Joint Stock Company, TNG Investment and Trading Joint Stock Company, among others.

An executive of Garment 10 Corporation Joint Stock Company said that it received a foreign order for 400 million medical face masks with delivery set for July.

TNG Investment and Trading Joint Stock Company also plans to start producing medical masks from mid-May. The enterprise has ensured sources of materials to produce the above-mentioned items after its output basically meets the domestic demand.

Besides, Vietnam has successfully produced waterproof cloth masks which are appreciated by many countries.

Chairman of the Vietnam Chamber of Commerce and Industry Vu Tien Loc told Vietnam News Agency that the face mask production capacity of Vietnam is huge, much higher than domestic demand. While the face mask demand in the foreign markets is increasing rapidly, it is time for domestic producers to grasp that opportunity.

Priority must be still given to meeting the domestic demand, but it was also necessary to take the opportunity to boost exports, Loc stressed.

He also urged the government to develop a strategy for medical equipment production and export. “Any decision must be timely, especially in the pandemic period,” Loc said.