Vietnam Economic News: 26.10 – 2.11.2024
Summary of Vietnam Economic News: 26.10 - 2.11.2024
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Summary of Vietnam Economic News: 26.10 - 2.11.2024 ---
AUSTRALIA'S CBA SELLS ANOTHER 10% STAKE IN VIETNAM'S VIB
Reuters News – 29 October 2024
Commonwealth Bank of Australia has sold a 10% stake in Vietnam International Commercial Joint Stock Bank it said on Tuesday, following a previous divestment last month, as it focuses on its banking business 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. It retains around 5% of the shares on issue in VIB, CBA said in its statement on Tuesday. CBA declined to comment when asked whether it would exit the Vietnamese bank. VIB did not immediately respond to a request to comment. The divestments confirmed a Reuters report in June that the bank would reduce its foreign holdings. The latest sale was executed on Tuesday, with settlement expected on Thursday, CBA's statement said, adding the total gross proceeds were approximately A$320 million ($210.50 million). VIB is a midsize bank in Vietnam with a market capitalisation of $2.2 billion. Its shares rose 2.74% to 18,750 dong each as of Tuesday's close. ($1 = 1.5202 Australian dollars)
VIETNAM PLANS TIGHTER RULES ON BOND ISSUANCE AFTER FRAUDS
Reuters News – 29 October 2024
Vietnam's Finance Ministry outlined tighter regulations for the country's corporate debt market on Tuesday, proposals aimed at restoring investor confidence eroded by several high-profile frauds involving company bond sales. Under the plans, corporate issuers would need to meet new requirements, including having their debt rated and disclosing their debt ratio, and retail investors would face more curbs - for instance, only being able to trade debt securities backed by a collateral. Institutional investors would not be affected. The proposed reforms, which need parliament's approval, are part of a broader overhaul of the little-regulated market aimed at boosting investment in company debt, which used to be a major source of funding for the nation's weak real estate sector. Vietnam's bond market ground to a virtual standstill in late 2022 following the arrest of real estate tycoon Truong My Lan, who earlier this month got a life sentence for misappropriating about 30 trillion dong ($1.19 billion) from investors through bond issuance. It has partly recovered since then, and new issuance in the first nine months of the year reached 334 trillion dong, matching the total for 2023, with no new defaults reported in September, according to VIS Ratings, a Moody's affiliate. Previous government efforts on similar reforms were poorly received by the market, delaying regulatory advances. If passed by parliament, the amendments to the country's securities law would take effect in 2026. ($1 = 25,315.0000 dong)
VIETNAM, UAE SIGN COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT
Reuters News – 28 October 2024
The United Arab Emirates and Vietnam have signed a comprehensive economic partnership agreement (CEPA), the first free-trade agreement Vietnam has established with a Middle East country, the Vietnamese trade ministry said in a statement on Tuesday. The agreement followed a year of negotiations and was signed by Vietnamese Prime Minister Pham Minh Chinh in Dubai on Monday, the ministry said in a statement. It said the deal would open the way for exporters and investors in agriculture, energy, technology and logistics as the country looked to boost trade with the Middle East. Under the CEPA, the UAE has committed to phasing out tariffs on 99% of Vietnam's exports, and Hanoi has pledged to remove tariffs on 98.5% of the UAE's exports. Last year, trade turnover between the two countries reached around $4.7 billion, an increase of 6% compared to 2022, the ministry said.
VIETTEL AI PARTNERS WITH PRESIGHT TO ADVANCE ARTIFICIAL INTELLIGENCE DEVELOPMENT
Reuters News – 30 October 2024
Viettel Data and Artificial Intelligence Service Centre (Viettel AI), part of the Viettel Military Industry and Telecoms Group, has signed a Memorandum of Understanding (MoU) with Presight, a leading UAE-based company in big data analytics and generative AI. The signing took place in Dubai during Prime Minister Pham Minh Chinh’s meeting with businesses from both countries. Under the agreement, Viettel AI and Presight will collaborate to develop generative artificial intelligence (AI), AI applications for smart city operations, big data analytics solutions for businesses and AI talent development. PM Chinh lauded the partnership, noting that Vietnam and the UAE are enhancing their connectivity through telecommunications and fibre optics and will be able to strengthen ties further through AI. Thomas Pramotedham, CEO of Presight, said: “We are thrilled to initiate this strategic collaboration with Viettel AI. Combining our resources and expertise in AI will significantly advance digital transformation initiatives. Viettel AI’s strengths in data analytics and natural language processing, combined with our joint efforts, will support Vietnam’s digital transformation journey.” As a pioneering tech enterprise in Vietnam, Viettel operates the country’s largest data centre infrastructure, supporting big data and AI advancements. Viettel also leads in Vietnamese large language models, with AI products such as court assistants, civil service virtual assistants, and specialised AI solutions for the financial sector. Viettel’s virtual assistants are currently deployed across various government ministries, provincial administrations and financial enterprises.