HO CHI MINH CITY - From 2008 on, Vietnam was mostly protected from the global financial crisis, not because its banks were stronger than the U.S. banks that created the crisis, but because it was less integrated into global trade back then. More than a decade later, Vietnam does far more trade with foreign countries today, making its banks far more susceptible to global trends. The government has taken steps to strengthen domestic banks. In particular Vietnam is transforming banks to require that, when doing credit risk analyses, they take into account environmental, social, and governance risks, known as ESG. The State Bank of Vietnam has set a goal that by 2025, each bank will have created its own department dedicated solely to ESG analysis, and it will incorporate ESG factors into its overall risk analyses. The central bank says it is making progress, noting that 17 banks in Vietnam have set up these mandatory departments to analyze the environmental and social impact of … [Read more...] about Banks Required to Assess Environmental, Social Goals in Vietnam
Tran Vinh Du, deputy director in charge of M&A counselling at EY Vietnam Tran Vinh Du, deputy director in charge of M&A counselling at EY Vietnam, talked to VIR’s Anh Hoa about what, in this context, would attract foreign investors to buy into the state-owned enterprises bound to be equitised this year. Foreign investors are not voracious at the moment, due to Brexit and the US withdrawal from the TPP (Trans-Pacific Partnership Agreement). Does this affect the Vietnamese M&A market? The Vietnamese M&A market is in an active period. Investors have high expectations. In comparison with other ASEAN economies, Vietnam is amongst the most attractive ones to foreign investors. From the sellers’ point of view, there are three factors we need to consider. First of all, there is a huge wave of governmental divestment from many big state-owned enterprises and they became attractive targets for strategic foreign investors. Secondly, private sector firms … [Read more...] about Vietnam in “golden period” for M&A
The high production costs, taxes and fees all make automobile prices in Vietnam much higher than in other countries in the region. At the government’s November regular press conference, the local press raised questions about the tax and fee policies, saying that automobile manufacturers complain about current policies put difficulties for them to compete with imports and increase the localization ratio. Deputy Minister of Industry and Trade Do Thang Hai said the car prices in Vietnam are higher than inother countries because the domestic production cost is higher. The high taxes and fees also push the prices up. VinFast, a 100 percent Vietnamese owned automobile manufacturer, days ago announced the automobile price structure. A VinFast Lux A2.0 standard version has the cost price of VND980.6 million, including VND640 million worth of materials, VND59.2 million worth of shipping fee and import tax, VND54 million worth of manufacturing cost, VND5.9 million worth of … [Read more...] about When will cars in Vietnam be cheaper?
Vietnam's total import and export value throughout November suffered a drop of 5.3 per cent to US$44.13 billion in comparison to the previous month. This drop in November comes despite the country’s total import-export value surging by 7.2 per cent during the 11-month period to US$472.63 billion against the same period from last year. Of the figure, the country's exports during November grossed US$22.79 billion, a fall of 5.9 per cent from the previous month and bringing the total export turnover throughout the reviewed period to US$241.65 billion, an increase of 7.9 per cent on-year. November saw the export value of foreign direct investment (FDI) firms reach US$15.17 billion, a 7.7 per cent fall in comparison to October, bringing the total export turnover by FDI enterprises to US$165 billion during the 11-month period, up 4.1 per cent on year. The commodities that enjoyed the highest export value throughout November include phones and components with US$4.49 billion, … [Read more...] about Vietnam posts record trade surplus of nearly US$11 billion
The Vietnamese animal feed market is considered very promising with the value of $6 billion a year. However, feed producers have faced difficulties because of African Swine Fever (ASF). Big investments The Vietnamese animal feed market is considered very promising with the value of $6 billion a year. However, feed producers have faced difficulties because of African Swine Fever (ASF). Not only CP, other enterprises, both Vietnamese and foreign, have poured tens of billions of dollars into plans to expand their production. Difficulties Luong Bang Vietnam's livestock exports expected to fetch US$1.2 billion this year The livestock and related sectors’ exports were worth US$855.4 million in the first nine months of the year and is expected to reach $1.2 billion for the year, according to the Ministry of Agriculture and Rural Development. … [Read more...] about African Swine Fever challenges Vietnam’s animal feed producers