Vibrant blue

Novaland Investment Group’s head office in Nguyen Du Street, District 1, Ho Chi Minh City. — Photo vinhomecitys.com

Some analysts from securities firms expected that the market’s bullish trend will continue this week, while others were more cautious and see a downward trend dominating the market.

The market benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) fell 8.54 points, or 0.68 per cent, in Friday’s trade to 1,238.71 points. The index hit a record high of 1,255.87 points on Wednesday.

For the week, the index still rose slightly by 0.57 per cent, while foreign investors net sold a value of over VND2.4 trillion.

Analyst from Saigon – Hanoi Securities JSC (SHS) said that the third straight weekly gain of the market and a new record in liquidity showed investors’ big interest during this period. However, based on Elliott Wave Theory, the index was likely at the end of wave 5 last week and is about to turn to corrective waves with a closest target being around 1,135 points.

Therefore, a downward trend might influence the market this week, SHS added.

The index struggled and strongly fluctuated around 1,250 points, but failed to break through the level in the last session. The market breadth, besides some blue-chip stocks in real estate sectors and steel stocks, was negative last week.

Tran Xuan Bach, a senior stock analyst from Bao Viet Securities Company, also expected that the market might continue to be weighed by selling pressure this week.

“The VN-Index still receives support from the zone of 1,225 – 1,232 points in some early sessions this week,” Bach wrote in a daily report to customers.

“The market is likely to be influenced by some large-cap stocks, as well as a strong division of stock groups during this period.”

Meanwhile, analysts from Viet Dragon Securities Corporation (VDSC) were more optimistic about the market as large cash inflows into the market in the last session limited the losses.

Sharing the positive view, MB Securities JSC (MBS) said that the last session’s steep fall has boosted cash flows into the market for bottom fishing, creating a notable recovery.

On the technical front, the upward trend, which has extended over the last two months, will continue with the support territory in the short-term being 1,220 points, MBS added.

The HNX-Index on the Ha Noi Stock Exchange (HNX) also declined 1.02 per cent on Friday to 293.11 points. For the week, the index fell 0.23 per cent.

Real estate stocks posted outstanding performance last week as it went against the market’s trend in most sessions. Followed by material stocks.

Of which, Vingroup JSC (VIC), Novaland Investment Group Corporation (NVL) and Hoa Phat Group (HPG) contributed the most to help the market cap losses. These stocks climbed 16.29 per cent, 4.73 per cent and 4.46 per cent, respectively.

On the contrary, top three stocks influencing the market’s trend were Vietnam Rubber Group JSC (GVR), JSC Bank For Investment and Development of Vietnam (BID) and Vietnam Dairy Products JSC (VNM).

In general, Viet Nam’s stock market was not so positive last week despite the benchmark increasing slightly as selling pressure spread to all sectors and foreign investors net sold a value in the trillions of dong. — VNS

Passengers arrive at Chu Lai Airport in Quảng Nam Province. The central province plans to host international tourists with vaccine passports as part of a pilot project. Photo courtesy of Jetstar Pacific

QUẢNG NAM — The central province of Quảng Nam has put forward plans to host international tourists with vaccine passports and negative coronavirus tests.

As part of the plans, arrivals at Chu Lai Airport will stay at the assigned Hoiana resorts in Duy Xuyên District and Tui Blue Hotel in Núi Thành District for five or 10 days.

Chairman of the provincial People’s Committee, Lê Trí Thanh confirmed the plans to Việt Nam News , stating that the province and managing boards of the two resorts and Chu Lai Airport authorities held a working session on preparations to soon host tourists with the proposed vaccine passports.

Thanh said the province will register with the Government to become the first province in Việt Nam to pilot the hosting of international visitors and roll out a ‘safe tourism’ programme.

“We plan to receive South Korean ‘vaccine passport’ tourists on chartered flights as part of the pilot project, and they (tourists) must test negative for coronavirus by Reverse transcription polymerase chain reaction (RT-PCR),” Thanh said.

“Chu Lai Airport will be given better medical testing equipment and coronavirus prevention measure for arrivals as well as the reception sites at the two hotels,” he said.

The chairman said the two hotels are far from community and residential quarters, and the two sites had been tested and surveyed by the Việt Nam National Administration of Tourism.

The Ministry of Culture, Sports and Tourism also agreed with the pilot plan.

Thanh said all staff of the two hotels and task force members will be vaccinated and implement coronavirus preventive measures before hosting tourists.

Beach-front Hoiana integrated resort and hotel comlex and Tui Blue in central Quảng Nam Province are assigned to host the first  international visitors with vaccine passports. Photo by Thanh Hà

Quảng Nam Province’s tourism industry saw poor growth in 2020 due to the COVID-19 pandemic and storms and floods.

The province, which is home to the UNESCO-recognised world heritage sites Hội An ancient town and Chàm Islands-Hội An world biosphere site, saw tourism revenue decline by 82.7 per cent in 2020, hosting only 1.46 million tourists – an 81 per cent reduction from 2019.

The tourism association of Quảng Nam has inked an agreement to boost post-COVID-19 tourism in the region in 2021 with Đà Nẵng and Thừa Thiên-Huế. — VNS

Thang Long II Industrial Zone in My Hao District, Hung Yen Province.

The provincial governments have shown further plans to establish new IPs of roughly 23,400 ha in the future, which are all in notable markets surrounding HCM City. The ready-built factory market was also buoyant, with the expected new launch of roughly 897,000 sq.m of ready-built factories by the end of 2021.

Nguyen Hong Van, JLL Vietnam’s Director of Markets, said since technology conglomerates continue to eye Vietnam for production relocation, the demand for industrial land and ready-built factory remains vibrant.

To lure foreign investments, localities in the Northern area have shown strong commitment to promote IPs, with roughly 10,500 ha of additional supply in the future, she said.

In addition to existing markets, second-tier provinces like Hung Yen, Hai Duong or further North of Hanoi like Bac Giang and Vinh Phuc are emerging as potential destinations for foreign investors, fostering the rents in those areas to speed up at an expected year-on-year growth of about 8-10 per cent.

The ready-built factory market remains upbeat, with the expected new launch of roughly 332,000 sq.m of ready-built factories by the end of 2021, predominantly in Hai Phong and Bac Ninh.

According to JLL Vietnam’s quarterly report on Vietnam’s property market in the first quarter of this year unveiled on Thursday, Dong Nai and Binh Duong accounted for the biggest supply of both industrial land and ready-built factory sectors on the property market in the first quarter of this year.

The other localities still have a long journey to catch up to Binh Duong and Dong Nai’s industrial park supply as these two are the oldest-developed industrial markets. Whilst in terms of ready-built factory supply, Dong Nai overwhelmed other provinces due to its well-developed industrial base and sufficient land bank for ready-built factory developers to penetrate, Van said.

However, the report said that no new supply of either industrial parks or ready-built factories was launched in the market in the quarter, she said.

Industrial properties in the Southern area remained significantly desirable for manufacturers to penetrate, although the pandemic still posed difficulties. Keeping the healthy demand momentum, both industrial land and ready-built factories recorded high occupancy rates at nearly 86 per cent and 82 per cent, increasing 0.60 per cent and 0.76 per cent compared to the fourth quarter of 2020, respectively. Of which, industrial land recorded transactions which have been negotiated since last year, whilst ready-built factories witnessed new leasing expansions of existing tenants rather than newcomers.

Industrial land remained the hottest sector for either newcomers or to meet the manufacturing expansion needs of existing investors, backed by Vietnam’s strong manufacturing fundamentals, Van said.

Therefore, most industrial park developers in Southern markets still maintained strong momentum to raise land prices reaching a new high at US$111 per sq.m per lease term, up 8.1 per cent year on year in the first quarter of this year. Whereas ready-built factory rents averaged $4.5 per sq.m per month across the region, increasing 3.1 per cent year on year, driven by the healthy demands of small and medium-sized enterprises as they expanded operations.

According to JLL Vietnam, in the first quarter, no new supply in industrial land and ready-built factories were introduced in the Northern market. The cumulative leasable land area in the market achieved roughly 9,500 ha, while the total supply of ready-built factories stood at approximately 1.8 million sq.m.

Bac Ninh and Hai Phong dominated the total supply in both sectors thanks to their strategic locations, strong footprints in the industrial market and improving business environment.

The third wave of COVID-19 swept the Northern area in late January has led to the postponement of new investments in the region, especially the lockdown in Hai Duong freezing most of the transactions in industrial parks in the first quarter.

Nevertheless, thanks to the strong influx of FDI in high-tech industries starting in the second half of 2020, the average occupancy rate of industrial parks recorded a healthy rate, reaching 75 per cent, whereas the occupancy rate of ready-built factories stood at 98 per cent in the quarter.

Given healthy demand, backed by Vietnam’s strong industrial fundamentals and combined with industrial park developers’ strong confidence in potential long-term investments, the land price continued its momentum to reach a new peak of $107 per sq.m per lease term in the first quarter, up 8.1 per cent year on year.

Meanwhile, ready-built factory rents also showed an increasing trend, at 5.8 per cent year on year, of which Bac Ninh recorded the strongest growth rate of nearly 9 per cent year on year fuelled by the launch of high-quality ready-built factories.

VNS

The central province of Quang Nam, home to UNESCO-recognized Hoi An Ancient Town, is expected to be Vietnam’s first locality to apply ‘vaccine passport’ policy once approved by the prime minister.

The Quang Nam People’s Committee, the local tourism sector, and businesses had spent months drafting a detail plan on such vaccine passport policy, said Nguyen Thanh Hong, director of the provincial Department of Culture, Sports, and Tourism.

The plan has been supported by the Ministry of Culture, Sports, and Tourism and will soon be submitted to the national government for approval.

According to the scheme, the reopening of some international routes to Vietnam will be piloted from July to September, with target groups being South Korean visitors who seek resort-oriented vacations and golf tourism.

The top priority is to ensure safety for tourists as well as local workers and residents, said Le Tri Thanh, chairman of the Quang Nam People’s Committee.

The South Korean visitors would travel to the Vietnamese province on charter flights and land at Chu Lai Airport.

The tourists will then be transported to Hoiana and Tui Blue Nam Hoi An resorts for their vacations lasting five to ten days.

They must have vaccine passports and test negative for the novel coronavirus. The visitors will undergo another COVID-19 test before heading back to their home country.

The transportation and provision of services to these visitors will have to strictly follow COVID-19 prevention and control regulations.

The two resorts are separated from residential areas, which will minimize the risk of virus spread, while all staff members will also be vaccinated and required to wear protective clothing when having contact with the foreign tourists.

“If the results are promising, the plan will be applied to other tourist areas and groups of visitors,” Chairman Thanh stated.

Nguyen Phu Khanh, deputy general manager of Tui Blue Nam Hoi An, said that all units of the resort have been focusing on preparing for the welcoming of international tourists.

Separate welcoming areas have been established, and special training sessions have been provided to all staff members, Khanh elaborated.

Hoiana has also been making necessary preparations for the upcoming trial phase.

The resort complex covers hundreds of hectares, has a private gate, and consists of premium hotels, suites, golf courses, and restaurants.

Nguyen Van Trung, representative of Chu Lai Airport, said that the airdrome is waiting for specific instructions from competent authorities.

Exclusive terminals will be designated to welcome foreign visitors, while certain areas and equipment will also be renovated, Trung added.

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