Toyvp:  Central bank tells lenders to cut credit interest rates

By Dat Nguyen   August 15, 2023 | 10:00 pm PT

The State Bank of Vietnam has instructed banks to lower their lending interest rates by 1.5-2 percentage points to support economic recovery.

They are required have to report their interest reduction plans by Aug. 25, and the results must be reported by Jan. 8 next year, it said.

The central bank has cut its policy rates three times since the beginning of the year to bring down loan interest rates amid economic challenges.

Following that, banks have cut their deposit interest rates from more than 10% to around 7.5% now.

Loan interest rates too have come down by 1-2 percentage points so far this year.


ToyVP:  Nghi Sơn and Bình Sơn refineries forge extensive cooperation for efficiency

August 16, 2023 – 15:51

The joint initiatives between NSRP and BSR encompass resource sharing, expertise exchange, technical and maintenance services, collaboration in raw material and oil product exchange.

HÀ NỘI — Nghi Sơn Refinery and Petrochemical LLC (NSRP) and Bình Sơn Refining and Petrochemical Joint Stock Company (BSR) on Tuesday signed a Memorandum of Understanding (MoU) for comprehensive cooperation with the aim of enhancing the operational efficiency of Việt Nam’s two largest oil refineries.

The MoU outlines joint initiatives between NSRP and BSR, encompassing resource sharing, expertise exchange, technical and maintenance services, collaboration in raw material and oil product exchange, as well as jointly exploring business development prospects.

The collaboration between NSRP and BSR dates back to 2013, with successful undertakings during the construction and operation phases of the Nghi Sơn petrochemical refinery. Notable aspects of their partnership include professional training for new staff, resource sharing in operation and production, personnel provision, and laboratory support.

The MoU signing event reaffirms the long-standing cooperation between NSRP and BSR, bolstering their close relationship and operational efficiency in managing and running the refineries.

So Hasegawa, NSRP’s General Director, lauded BSR’s unwavering support and foresaw even stronger collaboration through the MoU’s implementation.

The partnership of Nghi Sơn and Bình Sơn refineries, two leading entities in Việt Nam’s petroleum industry, promises sustainable growth. Amidst the volatile global petroleum market, their cooperation is pivotal in achieving stable and optimized operations, particularly in meeting the growing energy demand, especially for gasoline oil.

BSR, primarily owned by Vietnam Oil and Gas Group (Petrovietnam) with a 92 per cent stake, manages Dung Quất Oil Refinery in Quảng Ngãi Province. Established in 2009, it jointly supplies 70 per cent to 75 per cent of the nation’s petroleum product needs alongside NSRP.

NSRP, located in Nghi Sơn Economic Zone in Thanh Hóa Province, is a joint venture involving PetroVietnam, Kuwait Petroleum Europe, Idemitsu Kosan and Mitsui Chemicals. With a capacity of 200,000 barrels of crude oil/day, NSRP is a significant provider of petroleum products within Việt Nam and exports certain petrochemical goods to neighbouring nations. — VNS  LINK


ToyVP:  PM proposes Vietnam & Israel boost cooperation in innovation and high-tech

Vân Nguyễn – August 17, 2023 | 08:30 GMT+7

Visiting Israeli Minister of Economy and Industry welcomed by PM in Hanoi on August 16.

Prime Minister Pham Minh Chinh receives Israeli Minister of Economy and Industry Nir Barkat in Hanoi on August 16. Photo: VGP

Prime Minister Pham Minh Chinh recommended that Vietnam and Israel further boost their cooperation in the fields of innovation and high technology while receiving Israeli Minister of Economy and Industry Nir Barkat in Hanoi on August 16, the Government News reported.

He also proposed that the two countries coordinate in organizing trade promotion and exchange activities and increase the export of products that are strengths of Vietnam, such as agricultural and seafood products, fruit and vegetables, processed food, and household appliances, to Israel.

The Prime Minister suggested that the two countries enhance the effective implementation of cooperative mechanisms, quickly implement the Vietnam-Israel Free Trade Agreement, and initiate negotiations for the signing of cooperative agreements in industry.

Minister Barkat said Israel is working to coordinate with Vietnam to quickly complete relevant procedures so that the Vietnam-Israel Free Trade Agreement can soon take effect.

He agreed with promoting connections between businesses in the two countries and fostering cooperation in the fields of high technology, medicine, the fight against desertification, marine development and aquaculture, and, especially, innovation.

https://en.vneconomy.vn/pm-proposes-vietnam-israel-boost-cooperation-in-innovation-and-high-tech.htm       Vietnam Today

ToyVP:  Shares volatile on higher liquidity

August 18, 2023 – 03:38

Việt Nam’s stock market was experiencing a notably volatile phase on Thursday with continuous fluctuations in the indexes.

HÀ NỘI — Việt Nam’s stock market was experiencing a notably volatile phase on Thursday with continuous fluctuations in the indexes.

On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index concluded on a bearish note, losing nearly 0.79 per cent to close at 1,233.48 points.

Market breadth was negative with 150 gainers and 320 losers.

Liquidity increased with more than one billion shares worth VNĐ25.6 trillion (US$18 million) being traded, up 18 per cent in volume and 22 per cent in value over Wednesday’s levels.

Similarly, the VN30 Index which tracks the top 30 shares by market cap and liquidity saw a decline of 0.73 per cent, closing at 1,247.82 points.

In the VN-30 basket, 10 stock roses and 19 stocks experienced a drop.

Among the major industry groups, retail, particularly in technology goods, holds significant prominence. Several gainers in this sector, such as Mobile World Investment Group (MWG), FPT Corporation (FPT), stood out with growth of 0.2 per cent and 1.1 per cent, respectively.

In addition, the electricity and food & beverage industries also displayed a relatively balanced correlation between increases and decreases. However, the real estate, construction, iron and steel, securities, oil and gas, and banking sectors were all in the red, indicating significant declines.

Banking group performed poorly with many losers such as Military Bank (MBB), Asia Commercial Bank (ACB), Bank for Investment and Development of Vietnam (BID), VPBank (VPB), Sacombank (STB), Tiên Phong Bank (TPB), Techcombank (TCB).

Petroleum stocks also suffered with losers such as Việt Nam National Petroleum Group (PLX), PVPower (POW), PetroVietnam Gas JSC (GAS), PetroVietnam Drilling & Well Services Corporation (PVD), PV OIL (OIL), Bình Sơn Refinery (BSR) and PetroVietnam Technical Services Corporation (PVS).

On the Hà Nội Stock Exchange, the HNX-Index was down 1.03 per cent to end at 249.97 points.

More than 137 million shares worth VNĐ2.4 trillion were exchanged here. — VNS LINK

ToyVP:  IMO More liquidity is a good sign.

From Investopedia: 

“Liquidity refers to the efficiency or ease with which an asset or security can be converted into ready cash without affecting its market price. The most liquid asset of all is cash itself …The more liquid an asset is, the easier and more efficient it is to turn it back into cash. Less liquid assets take more time and may have a higher cost.”


ToyVP:  Derivatives market sees remarkable growth in last 6 years

August 17, 2023 – 08:50

In the last six years, the average growth of VN30 index futures contract transactions was 27.46 per cent.


HÀ NỘI — The derivatives market has experienced stable growth with dynamic trading activities and more investors after six years of operation, according to the Hà Nội Stock Exchange (HNX).

August 10 marked the opening of the derivatives market and its first product of the VN30 index futures contract.

The exchange said that the derivatives market has gradually become a risk-hedging tool for investors, which is partly reflected in the increases in trading volume on the market when the primary market fluctuates strongly.

It also helps ease the selling pressure on the primary market, stabilising investor sentiment, balancing the market and capping losses of the primary market’s benchmark index.

For example, when the market tumbled due to the impact of the COVID-19 pandemic in 2022, the liquidity of the derivatives market soared by 43.8 per cent over the previous year. This was consistent with the general movements of the global derivatives market, when the global primary markets entered the downtrend, leading to the cash inflow into the derivatives market as demand for safe-haven increased.

According to HNX, the market size and liquidity of the VN30 index futures contract grew strongly at an average of 38.65 per cent during 2018-22. Particularly, 2020 witnessed the highest growth rate of 79.9 per cent over 2019, followed by the growth speed in 2022, up 43.8 per cent on-year.

In the first seven months of 2023, the average trading volume reached 225,178 contracts per session, down 17.41 per cent year-on-year, but still the second-highest average annual transaction, only after the record set in 2022.

In the last six years, the average growth of VN30 index futures contracts was 27.46 per cent.

The derivatives market is also a profitable investment channel for investors. With two-way trading and being able to buy and sell continuously during the session, investors can make profits even when the primary market plummets.

As a result, the number of derivatives trading accounts has continuously risen. As of the end of July, there were more than 1,3 accounts on the market, 546 times higher than the beginning period, said HNX.

The derivatives market is an effective solution to hold cash flow in the stock market, avoiding investors fleeing from the market when the primary market declines.

Moreover, the strong growth of the derivatives market has attracted the attention of foreign investors. Transactions of foreign investors on the market edge higher every year, with the amount of the next year usually increasing by 2-3 times the previous year.

In July, foreign investors’ transactions accounted for 3.47 per cent of the total trading volume in the whole market compared to 0.1 per cent at the end of 2017.

HNX said that the derivatives market plays an increasingly important role in promoting the development of the country’s stock market, contributing to perfecting the stock market structure, and meeting one of the mandatory conditions for the stock market to be considered for an upgrade from frontier market to emerging market in the near future.

To further promote the role of the defensive status as well as an effective investment channel, and to meet the diverse needs of investors, the derivatives market needs to introduce more new derivative products such as futures contracts on the VN100 index, HNX said. — VNS LINK