Vietnam Economic News: 21.9 – 28.9.2024
Summary of Vietnam Economic News: 21.9 - 28.9.2024
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Summary of Vietnam Economic News: 21.9 - 28.9.2024 ---
VIETNAM ESTIMATES DAMAGES OF $3.31 BLN FROM TYPHOON YAGI
Reuters News – 28 September 2024
Asia's strongest storm this year, Typhoon Yagi, caused damages estimated at 81.5 trillion dong ($3.31 billion) across northern Vietnam, or twice as much as previous estimates, state media said on Saturday. The typhoon, which killed 299 with 34 missing, devastated export-oriented industrial hubs, destroying factories and facilities, besides flooding farmland, damaging homes, and tearing up a bridge. "The total economic damage is initially estimated at over 81.5 trillion dong, with most damage triggered by landslides and flash floods," state-run Vietnam News Agency quoted Agriculture Minister Le Minh Hoan as saying. The figure exceeds a preliminary estimate of $1.6 billion made this month by the planning ministry that threatened to chip 0.15 percentage point from a forecast for economic growth of 6.8% to 7% this year. Hoan urged authorities to help people resume production while ensuring supplies and holding down prices, as farm and agricultural land were among the areas hit hardest. Live pig prices in Vietnam have risen steadily since Typhoon Yagi and subsequent flooding affected several pig farms. On Thursday, rating agency S&P Global said Vietnamese banks' profitability would be hit because of typhoon debt relief measures ordered by the central bank. ($1=24,590.0000 dong)
VIETNAM EXTENDS ANTI-DUMPING DUTIES ON SOME CHINESE ALUMINUM PRODUCTS TO 2029
Reuters News – 26 September 2024
Vietnam will extend anti-dumping tariffs on some aluminum products originating from China until October 2029, the trade ministry said in a statement, as imported aluminum may hurt domestic industry if anti-dumping measures end. The tariffs range from 2.85% to 35.58% and were first introduced in 2019, the ministry said in the statement, which was dated Sept 23. "There is a possibility that the imported goods under investigation will continue or recur in dumping behaviour, causing damage to the domestic industry in the event of the termination of anti-dumping measures," the ministry said.
VIETNAM, US FIRMS SIGN MOUS ON ENERGY, AI, DATA CENTRE
Reuters News – 24 September 2024
Vietnamese and U.S. firms have signed memorandums of understanding (MoUs) to cooperate in energy, artificial intelligence and a data centre, the Vietnamese government said on Tuesday. The MoUs were signed at a business forum in the United States, the government said in a statement. The MoUs include one on energy technology transfer signed by Vietnam's state-oil firm PetroVietnam and Kellogg Brown & Root, LNG cooperation between PetroVietnam's unit PTSC and Excelerate Energy, and AI and data centre development between Sovico Group and Supermicro. Vietnam's Vietjet said it signed a $1.1-billion cooperation agreement with Honeywell Aerospace Technologies. The U.S. company will provide avionics and aviation technical services for Vietjet's aircraft fleet, the budget airline said. The forum was also attended by Vietnamese president To Lam, who is scheduled to meet U.S. President Joe Biden on Wednesday on the sidelines of the United Nations General Assembly in New York. Lam said the two countries had plenty of room to cooperate and Vietnam hoped the U.S. will become its largest source of foreign investment. Lam said he expected the U.S. government to soon recognise Vietnam as a market economy, according to the statement. The U.S. Commerce Department said last month it would continue to classify Vietnam as a non-market economy. If Vietnam applies again, it will take U.S. regulators months to come to a decision. Vietnam has long sought an upgrade, which would reduce punitive anti-dumping duties levied on non-market economies identified as having a heavy state influence.
AUSTRALIA'S CBA SELLS 5% OF ITS SHARES IN VIETNAM'S VIB
Reuters News – 24 September 2024
Commonwealth Bank of Australia said it has sold around 5% of its shares in Vietnam International Commercial Joint Stock Bank, as part of its strategy to focus on its businesses in Australia and New Zealand. CBA, Australia's largest lender, held 19.8% of VIB's shares, according to VIB's report in August, making CBA the Australian bank with the biggest stake in Vietnam. Reuters reported in June on CBA's possible exit from VIB after VIB's board had proposed cutting the cap on shares held by foreign investors to 4.99% of the bank's charter capital from the current 20.5% from July 1. The proposal was later approved by the bank's shareholders at an extraordinary meeting, but it is not clear how it applies to existing shareholders. The transaction was executed on Tuesday, according to a statement released by CBA, with settlement expected on Thursday. Total gross proceeds to CBA from the transaction are approximately A$160 million ($109.49 million), the statement added. VIB is a midsize bank in Vietnam with a market capitalisation of $2.3 billion. Shares of VIB rose 3.24% to 19,100 dong each as of Tuesday's close. ($1 = 1.4613 Australian dollars)
CHINESE AUTOMAKER GEELY INVESTS NEARLY $170 MILLION IN VIETNAM
Dow Jones Institutional News – 24 September 2024
Chinese automaker Geely Automobile is investing almost $170 million in Vietnam to manufacture vehicles in the country, part of the company's efforts to expand overseas. Geely said Tuesday that it has signed a joint venture agreement with Hanoi-based Tasco Joint Stock company to produce and assemble cars in Vietnam. The collaboration also allows construction and engineering company Tasco to distribute the Geely Auto brand in the country. The plant is set to have initial capacity for 75,000 vehicles, which will go to the domestic market and be exported to countries that have free-trade agreements with Vietnam, the companies said in a statement. Tasco will contribute 64% of the roughly $168 million investment, with Geely putting up the remainder of the capital. The companies expect to break ground on the plant in the first half of 2025, with the first vehicle delivery slated for early 2026. Geely will also establish a research and development center in Vietnam and invest in building a local supply chain, according to the statement.