Chủ đề: capital

The latest report from the Vietnam Bond Market Association (VBMA) shows that the banking and real estate sectors continue to heat up the bond issuance race, successfully issuing VND170.80 trillion ($7.48 billion) in total, or 72.7 per cent of the total. Vietnam’s corporate bond market was quieter in July, down nearly 33 per cent against June. In the long term, however, indicators suggest that the market still has much room for development.

Capital flows from exchange-traded funds (ETF) into Vietnam in the week between May 16 and 20 hit a record $115 million, according to KIS Securities. Most ETFs greatly appreciate the Vietnamese market thanks to its stable macroeconomy and high business growth.

On May 24, while presenting a report on the implementation plan for the next phase of the Ho Chi Minh Highway project to the National Assembly, Minister of Transport Nguyen Van The said the phase has been deployed “sluggishly” for five years, from 2017 to 2021, reaching only 8 per cent of the target, and is nearly two years behind schedule. There is 171 km in the phase needing urgent capital allocation in order to be completed by 2025.

Vietnam is a very attractive blockchain market for investors, and many domestic and foreign funds are waiting to invest in local companies once the legal framework is completed, which the Ministry of Science and Technology has said will happen shortly.

According to SSI Research, while Vietnam’s stock market saw a net withdrawal in April, capital to ETFs (exchange-traded funds) were strong, with a total value of VND1.69 trillion ($73.29 million); the highest in nine months. The market therefore recorded a net capital inflow in the first four months of the year.

Minister of Transport Nguyen Van The has said the Ministry is expected to disburse about VND3.8 trillion ($166.2 million) in April; 5 per cent higher than the national average. By the end of the second quarter, its disbursement rate will be 10 per cent higher than the national average.

At a meeting on April 12, Minister of Natural Resources and Environment Tran Hong Ha and Mr. Alfonso Garcia Mora, Vice President of the International Finance Corporation (IFC) in charge of Asia-Pacific, agreed to expand cooperation in environmental protection and climate change response. The IFC is to provide long-term capital for enterprises’ green projects.

M Village, a startup providing short- and long-term accommodation solutions, has raised $1.7 million in capital from Simple Tech Investment, Vulpes Ventures, Genesia Ventures, and other angel investors. M Village will use the capital to invest in technology, increase utilities for residents, and expand to many districts in Ho Chi Minh City.

Out of a total of 2,414 ha of land along the Ring Road No. 3 project in Ho Chi Minh City, 514 ha of agricultural land is managed by the State. If associated land auctions are successful, the City is expected to collect VND26.9 trillion ($1.18 billion) for the project.

Despite the ravages of Covid-19, 2021 saw a series of huge capital calls by Vietnamese startups, with a total value of more than $1.3 billion. Venture capital fund Golden Gate Ventures has called Vietnam a “rising star” in Southeast Asia and believes it will have the third-largest startup ecosystem in the region by the end of this year.

A clear legal framework and policy mechanism to regulate capital mobilization and promote the role of investment funds would be a useful solution to help small businesses and startups.

According to the Ministry of Transport (MoT), VND4.9 trillion ($216.1 million) in medium-term public investment capital will be set aside to complete three unfinished projects in south-central Phu Yen province. Three new expressway projects in the province will also be built, with total investment of nearly VND23 trillion ($1.01 billion).

Vietnam saw a record increase in capital invested into startups in 2021, totaling more than $1.3 billion, with similar levels expected this year. Most deals, however, are funded by foreign investors. Another issue of note is the low number of projects being funded, at about 100 deals each year, while Vietnam has approximately 3,800 startups and 200 investment funds.

Capital demand for the development of Vietnam’s airport network to 2030 stands at some VND400 trillion ($17.55 billion); four times higher than the figure in the last decade. Large airports and logistics centers at eight airports will be prioritized. The vision to 2050 is for Vietnam to have 31 airports, including 14 international and 17 domestic.

Both domestic and foreign investors are showing greater interest in the northern province of Hung Yen.

The State Bank of Vietnam (SBV) is implementing solutions to create favorable conditions for businesses and individuals to access bank credit and has set out three goals on monetary policy management in 2022. Interest rates will be adjusted in line with the macro balance, inflation, market movements, and monetary policy objectives, and the network of credit institutions will be restructured in association with bad debt settlement.

The Ministry of Transport (MoT) announced to prioritize pouring VND1.7 trillion ($75.11 million) to support Son La province to implement the Hoa Binh - Moc Chau expressway. This expressway is 85 km long, about 36 km through Son La province, implemented in the form of PPP with a total investment of more than VND22 trillion ($972.25 million) in phase 1.

Vietnam’s road network development strategy to 2030 needs an estimated VND900 trillion ($39.47 billion), but in reality the figure may be as high as VND1.5-1.7 quadrillion ($65.78-74.56 billion), according to experts. The opportunity also remains to exploit other sources of capital, such as foreign investment, other than only relying on bank loans.

The amount of credit available for transport infrastructure is becoming increasingly limited. Now is the right time to issue corporate bonds and carry out public-private partnership (PPP) traffic projects, Mr. Tran Van The, Vice Chairman of the Deoca Group, said at VnEconomy’s online “Development of the corporate bond market: Balancing the advantages of issuers and investors” conference. Many regulations still place restrictions on businesses, however, and a channel to attract capital via bonds is yet to be approved.

The State Bank of Vietnam (SBV) has pumped some VND118 trillion ($5.13 billion) into the foreign currency market after completing nearly 75 per cent of its purchase contracts. Liquidity in the banking system is expected to remain abundant for the time being, with some VND40 trillion ($1.74 billion) flowing through the channel during the remainder of August.