Vietnam Economic News: 28.9 – 05.10.2024
Summary of Vietnam Economic News: 28.9 - 05.10.2024
---
Summary of Vietnam Economic News: 28.9 - 05.10.2024 ---
VIETNAM PLANS $67 BILLION HIGH-SPEED RAILWAY WITH NO FOREIGN CAPITAL
Reuters News – 3 October 2024
Vietnam plans to fund a $67 billion high-speed railway entirely on its own in a demonstration of the country's reluctance to accept foreign loans, though some experts said the goal may be unrealistic. The railway from capital Hanoi to southern business hub Ho Chi Minh City would be Vietnam's largest ever infrastructure project, with annual average costs for the state budget estimated at about $5.6 billion for 12 years, according to the transport ministry. The railway, with trains travelling at 350 km per hour, would be expected to be completed by 2035. Funding would come from state revenues, and if necessary, from the issuance of government bonds. Foreign loans under concessional conditions would be considered only if that proved insufficient, the deputy minister was quoted saying. Vietnam has comparatively low public debt at 37% of its Gross Domestic Product (GDP) last year. It has tended to invest less than planned, falling short by $19 billion, or a quarter of forecast public investment spending, from 2021-2023, according to the finance ministry. It has been reluctant to use foreign aid, having forfeited billions of dollars in development aid funding in recent years, amid administrative delays, a broad anti-corruption crackdown and widespread fears of falling into debt traps. The deputy transport minister said the funding of the railway project was devised in a manner meant to avoid debt traps. However, experts in infrastructure funding said it could be difficult for Vietnam to build such a big project on its own. Public spending worth $5.6 billion a year for the railway would be equivalent to 1.3% of the country's 2023 GDP and represent about a fifth of overall budget spending projected for this year. Over the last two decades Vietnam spent about 20% of its state budget on infrastructure, mostly on rural roads, according to the World Bank.
FOREIGN STOCK INVESTORS CAUTIOUS ON VIETNAM AS MARKET UPGRADE LOOMS
Reuters News – 3 October 2024
Foreign investors have been hesitant to invest in Vietnam stocks after a crucial market reform announced in mid-September increased the country's chances to be upgraded to emerging market next year, data show. The country, classified as a frontier market, has been seeking reclassification to emerging status by at least one index manager for several years, a change that could draw billions of dollars from foreign investors. In an important step towards a possible upgrade, Vietnam's finance ministry announced on Sept. 18 that foreign investors from November will no longer be required to pre-fund equity transactions. That met a key condition set by the FTSE index. However, foreign investors have remained cautious. Sales of Vietnamese securities surpassed purchases, resulting in a total outflow of 210 billion dong ($8.5 million) in the two weeks to Oct. 2 after the pre-funding announcement, data from the country's three bourses compiled by Vietstock, a data provider, showed. The outflow though was far less pronounced than in the first part of the year when foreign investors reduced their exposure to Vietnam by about $1 billion amid political turmoil. The overall market size exceeds $280 billion. In the last two weeks, foreign investors' purchases slightly surpassed sales at the Ho Chi Minh City Stock Exchange, the country's main market. The upgrade would allow Vietnam to join countries such as Indonesia, the Philippines, Qatar and China, elevating it from the frontier index, which includes less advanced markets such as Sri Lanka and Kenya. Some investors, especially passive funds, typically enter a new market only after an actual upgrade. An industry expert said this could explain why the abolition of pre-funding requirements, although a positive move, may not immediately result in significant gains.
DOZENS OF CAPTIVE TIGERS AND LIONS DIE IN VIETNAM, BIRD FLU DETECTED
Reuters News – 3 October 2024
Dozens of tigers and lions in captivity died in the past month in southern Vietnam with tests showing they were positive for bird flu, health ministry and state media said on Thursday. Two samples taken from dead tigers at Mango Garden Resort in Dong Nai province have tested positive for the H5N1 strain of bird flu, the Ministry of Health said in a statement. Twenty tigers have died at the resort since early last month. The spread of highly pathogenic avian influenza, commonly known as bird flu, to mammals including cows, dogs, cats and even dolphins worldwide has raised concerns about potential human-to-human transmission. In neighbouring Long An province, 27 tigers and three lions died from bird flu at My Quynh Safari from Sept. 6 to 18, state media reported, citing provincial agricultural authorities. On its website, the World Health Organization warns against consuming raw or incompletely cooked meat and eggs from regions experiencing avian influenza outbreaks due to the high risk of infection.
VINAI INTRODUCES BREAKTHROUGH DRUNK DRIVING DETECTION TECHNOLOGY IN EUROPE
Dow Jones Newswires German – 1 October 2024
Participating in InCabin Europe 2024, VinAI (part of the Vingroup ecosystem, formerly known as VinAI Artificial Intelligence Research Institute) will introduce DrunkSense, the world's first system that passively detects drunk driving without a breathalyzer. This is the first time this breakthrough solution, with an accuracy rate of up to 85%, has been introduced in Europe, promising to revolutionize modern traffic safety. DrunkSense is a safety technology for next-generation smart vehicles, utilizing a multi-sensor approach. By combining facial expression tracking, vehicle control monitoring, and air alcohol sensors, DrunkSense can detect drunk driving with an 85% sensitivity rate, an 8% improvement over the current industry standard.