Vietnam Economic News: 14.9 – 21.9.2024
Summary of Vietnam Economic News: 14.9 - 21.9.2024
---
Summary of Vietnam Economic News: 14.9 - 21.9.2024 ---
VINFAST STOCK DROPS, FORECAST FOR UNIT SALES LOOKS AGGRESSIVE
Dow Jones Institutional News – 20 September 2024
Shares of the electric-vehicle start-up VinFast Auto were down in early trading after the company reported weaker-than-expected quarterly results. Friday, VinFast reported a per-share loss of 33 cents from sales of $357 million. Wall Street was looking for a 21-cent loss and sales of $419 million, respectively, according to FactSet. A year ago, VinFast lost 24 cents a share from sales of about $328 million. Sales grew about 9.1% year over year. The company delivered 13,172 EVs in the second quarter, bringing the total for the first two quarters to about 22,000 vehicles. VinFast still expects to ship 80,000 EVs in 2024. That leaves some 58,000 for the second half of the year. About 12,000 of the company's sales, or 53%, were sold to related parties. VinFast's parent company VinGroup uses VinFast EVs in Vietnamese taxi fleets VinGroup controls. Investors appear nervous about the increase in sales for the second half. Shares were down 5.9% at $3.73 a piece in late morning trading.
VIETNAM REMOVES PRE-FUNDING RULE FOR FOREIGN INVESTORS IN BID FOR MARKET UPGRADE
Reuters News – 19 September 2024
Vietnam will remove a requirement for full pre-funding on equity transactions of foreign investors from Nov. 2, its finance ministry said, the country's latest effort to boost the chances to be reclassified as an emerging market. Currently, overseas investors must fully transfer funds before buying securities, a hurdle that has hampered for years the upgrade of the Ho Chi Minh City Stock Exchange. Both the MSCI and FTSE indices currently classify Vietnam as a frontier market, preventing many funds, family offices and others from investing in companies listed there. Under the new rule stated in a finance ministry's circular issued late on Wednesday, brokers are allowed to vouch for foreign investors when they buy shares. "Brokerage firms will assess the risk to determine the pre-funding ratio for foreign institutional investors when placing purchase orders. If an overseas investor fails to complete the payment, the liability will be assumed by the brokerage," the circular said. Under the reform, listed companies are also required to publish information in English. The move comes ahead of FTSE's announcement on market classification on Oct. 8 although three sources familiar with the matter said it was unlikely that FTSE would announce the upgrade for Vietnam in the October report.
TROPICAL STORM TO MAKE LANDFALL IN CENTRAL VIETNAM LATE THURSDAY
Reuters News – 19 September 2024
A tropical storm is forecast to make landfall in central Vietnam late on Thursday, bringing torrential rains that could trigger dangerous floods, the weather agency said, shortly after northern regions were hit by the powerful Typhoon Yagi. Storm No.4, as it is known in Vietnam, is forecast to hit the coast from Quang Tri to Quang Nam province in the evening. Due to the possible impact of the storm, Dong Hoi airport in the north central coast will be shut from 1500 to 2200 local time (0800 to 1500 GMT) on Thursday, Vietnam's civil aviation authority (CAAV) said. The country has been reeling from the impacts of Typhoon Yagi, the strongest storm to hit Asia this year, which made landfall in northern Vietnam nearly two weeks ago. The typhoon killed more than 290 people and caused property damages of around $1.6 billion. Storm No.4 will trigger rains of between 100 to 300 millimetres (4 to 12 inches) from Thursday to Friday in central Vietnam, including in the tourism destination of Danang, the agency said. Rains will also hit the Central Highlands, home to Vietnam's largest coffee growing area, it said.
VIETNAM TYCOON TRUONG MY LAN, ALREADY SENTENCED TO DEATH, FACES TRIAL ON NEW CHARGES
Reuters News – 19 September 2024
Vietnamese real estate tycoon Truong My Lan, already sentenced to death, faces a new trial starting on Thursday on additional financial fraud charges, state media reported. Lan, the chairwoman of real estate developer Van Thinh Phat Holdings Group, is facing charges of obtaining property by fraud, money laundering and illegal cross-border money transfers, state media reported. Lan is among the high-profile business executives and state officials jailed in the country's years-long anti-graft campaign, known as "Blazing Furnace". Her trial in Ho Chi Minh City is scheduled to last a month, the reports said. Thirty-three of Lan's alleged accomplices will also be on trial, with authorities expecting up to 1,000 people will attend the proceedings each day. Lan is accused of illegally raising 30 trillion dong ($1.2 billion) from issuing bonds, illegally transferring $4.5 billion into and out of Vietnam, and laundering 445 trillion dong ($18.1 billion), according to a police statement released ahead of the trial. In April, Lan was sentenced to death in a separate trial after being found guilty of embezzlement, bribery and violations of banking rules in a 304 trillion dong financial fraud, the country's biggest on record.
VIETNAM'S TOP LEADER LAM TO MEET GOOGLE, META IN US NEXT WEEK
Reuters News – 18 September 2024
Vietnam's president and ruling Communist Party chief To Lam is set to meet representatives from several U.S. corporations, including Google and Meta, during a visit to the United States next week. According to unofficial information which hasn’t been confirmed, each of the companies would have a separate meeting with him and Lam will also attend on Sept. 23 a business forum with other U.S. business representatives. In two large U.S. business missions the USABC lobbying group organised in Vietnam over the last 18 months, it brought in dozens of top U.S. corporations including defence firms, energy and tech companies. Among firms who attended both recent missions to Vietnam, are power company AES, aviation giant Boeing, payment company Mastercard and Amazon, including its cloud computing subsidiary Amazon Web Services. U.S. companies see Vietnam as a manufacturing hub and a market for their products. Apple's suppliers complete many of the company's products there, Intel has a large chip assembling factory, and defence firms have long been in talks to sell security equipment to Hanoi. Lam's trip to the United States has not been formally announced, but officials said he would travel there on Saturday to speak at the United Nations General Assembly where global leaders meet for their annual get-together on Sept 22-23. He will fly to Cuba later in the week in the final leg of his trip. Columbia University has announced an event with Lam on Sept. 23 in New York. The U.S. and Vietnam boosted their diplomatic ties last year as Washington sees the Southeast Asian nation as a strategic partner to reduce reliance on Chinese manufacturing. The U.S. is also seeking closer ties with Hanoi on sensitive industries, including undersea cables. However, it is not clear whether Lam will meet U.S. President Joe Biden.