Latest news with #HanoiStockExchange
The Star
22-05-2025
- Business
- The Star
Tariffs remain a key factor swaying markets
New order: Motorcyclists pass the Hanoi Stock Exchange. Vietnam's proactive negotiation stance with Washington positions it favourably in the evolving trade landscape. — AFP HANOI: As global trade tensions subside, stock markets, including Vietnam's, are seeing a positive response. Recent developments in tariff negotiations, especially between the United States and major trading partners, are playing a crucial role in shaping market dynamics. Ongoing trade discussions have shown encouraging progress, highlighted by a significant agreement between the United States and the United Kingdom, the first since the US administration implemented reciprocal tariffs earlier this year. These negotiations have alleviated trade tensions and sparked a notable increase in foreign investment. Data from Bloomberg showed that global funds have purchased a net US$9.64bil in stocks across emerging Asian markets, excluding China, over the past three weeks, marking the longest streak of inflows since March 2024. In Vietnam, the stock market reflects this renewed optimism. The Ho Chí Minh City Stock Exchange reported trading liquidity exceeding US$1bil on May 14, with the VN-Index surpassing the 1,300-point threshold. Tyler Nguyen Manh Dung, chief market strategist at Ho Chí Minh City Securities Corp, identified three critical factors driving this recovery: valuation adjustments, easing tariff fears and stability in key export sectors. Following a period of sell-offs, stock valuations have become increasingly attractive, with price per earning ratios now below the five-year average, prompting investors to reconsider market entry. Meanwhile, as concerns over tariffs diminish, investor anxiety regarding potential price hikes on Vietnamese exports has lessened. Vietnam's proactive negotiation stance with the United States positions it favourably in the evolving trade landscape. He added that industries such as seafood, textiles and timber, vital to Vietnam's export economy, are expected to remain largely unaffected by US tariffs, bolstering investor confidence in related equities. After a period of panic selling, foreign investors have returned to net buying, driven by the rising prices of major stock groups such as banks. In the first half of May, the net buying value by foreign investors exceeded 4.2 trillion dong. Despite the positive market trends, tariffs continue to be a significant concern. Bui Nguyen Khoa, deputy director of the BIDV Securities Analysis Centre, noted that while the risk of a US economic downturn appears to have diminished, upcoming negotiations will present challenges. The US government maintains a firm stance on certain sectors, particularly pharmaceuticals and semiconductors, suggesting that tariffs will remain a strategic tool for domestic manufacturing incentives. Nguyen Thi My Lien, chief analyst at Phu Hung Securities, emphasised that the baseline tariff of 10% imposed by the United States is likely to persist, creating ongoing pressure on global economic growth. In light of these evolving conditions, investors are urged to reassess their portfolios. Khoa recommends increasing exposure to sectors less impacted by tariff policies, such as banking and infrastructure, while also considering cash positions as the VN-Index approaches short-term resistance levels between 1,320 and 1,340 points. Lien anticipates that the market will shift toward a phase of informed assessment rather than fear, highlighting opportunities in domestically focused sectors that are less reliant on international trade. — Viet Nam News/ANN
The Star
09-05-2025
- Business
- The Star
Stock market upgrade expected by September
Regulatory push: A man walks past the Hanoi Stock Exchange. The government's determination to elevate the country's stock market is evident, with clear political will demonstrated in various regulatory meetings. — Reuters HANOI: Vietnam's stock market is on the brink of a significant transformation, with expectations mounting for an upgrade to emerging market status by September. This ambitious goal was emphasised at the regular government press conference on Tuesday by Deputy Finance Minister Tran Quoc Phuong, who noted that the government is committed to achieving this milestone through a series of strategic initiatives. The Finance Ministry (MoF) is actively implementing a comprehensive plan to enhance market capabilities and meet the stringent criteria set by international rating agencies such as FTSE Russell and MSCI. While Vietnam has largely satisfied the necessary technical criteria, challenges remain in gaining the confidence of foreign investors and ensuring a transparent and accessible investment environment. 'However, this is merely a necessary condition. 'The sufficient condition hinges on the remaining processes and foreign investors' assessments of investment activities within the Vietnamese stock market,' Phuong said. To address these challenges, the ministry has outlined six major strategic actions aimed at bolstering investor trust and facilitating the upgrade process. Key among these initiatives is the effective deployment of the KRX system, a new technology platform designed to improve trading efficiency and risk management for foreign investors. This system introduces advanced features for transaction processing and payment, streamlining the investment process. Additionally, recent regulatory changes have removed significant barriers by allowing foreign institutional investors to place buy orders without requiring full upfront funds. This reform is anticipated to enhance investment fluidity and attract more foreign capital. The MoF is also reviewing and amending Decree 155 to clarify the timelines for public companies to report their foreign ownership limits, thereby increasing transparency for market participants. Simplifying the procedures for opening indirect investment accounts is another focus, with the ministry collaborating with the State Bank of Vietnam to facilitate foreign capital inflows. Furthermore, the introduction of omnibus trading accounts for foreign funds is set to simplify transaction processes, allowing fund managers to execute trades on behalf of multiple portfolios simultaneously. This innovation aims to enhance operational efficiency for foreign institutional investors. In addition to regulatory reforms, the ministry is focused on increasing the supply of financial products and improving the listing process for companies after their initial public offerings. Developing new investment indices will also provide more benchmarks for fund managers, further enriching the investment landscape. To ensure ongoing dialogue between regulators and market participants, a policy dialogue group will be established, comprising representatives from the State Securities Commission, investment funds, and securities firms. This group will facilitate timely discussions on market needs and regulatory responses, a step many experts believe is crucial to making policy more responsive. Despite the progress made, Vietnam's path to achieving emerging market status is fraught with challenges. FTSE Russell's recent report classified Vietnam as a frontier market, citing concerns about payment systems and market accessibility. However, the introduction of non-pre-funding models for foreign investors has been recognised as a positive development, indicating that improvements are underway. The government's determination to elevate Vietnam's stock market is evident, with clear political will demonstrated in various regulatory meetings. As the September deadline approaches, the financial community is hopeful that these efforts will culminate in a successful upgrade, positioning Vietnam as a premier investment destination in the region. — Viet Nam News/ANN
Business Times
25-04-2025
- Business
- Business Times
Vietnam ramps up bond sales, spending as export-led growth faces tariff risks
[HANOI] Vietnam has increased government bond sales by nearly 30 per cent so far this year, data shows, as it bids to boost public spending to spur growth and shield the economy from the risk of crippling US tariffs. The South-east Asian industrial hub's economy has expanded rapidly in recent years – growing more than 7 per cent in 2024 – thanks to foreign investment in export-oriented manufacturing plants powered by cheap labour and components often shipped from China. Exports accounted for 87 per cent of gross domestic product last year, of which the largest share went to the United States, according to official data. But the country now faces tariffs of 46 per cent from the Trump administration on goods imported into the US, much higher than most regional competitors, which economists at research firm BMI have estimated could reduce growth by up to three percentage points. Vietnam has kicked off trade talks with the US, and is trying to persuade Washington to reduce or eliminate the new tariffs, which have been paused until July. The country is also selling more bonds, despite a historic reluctance to increase low public debt levels. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up It has so far raised 130.8 trillion dong (S$6.6 billion) from government bonds with different maturities this year, up by 26.7 per cent from last year, according to data from the Hanoi Stock Exchange updated to Apr 23. The money is earmarked to boost public investment, mostly in railway and power infrastructure, and to spur domestic consumption to meet this year's GDP growth target of at least 8 per cent. The government plans to raise around 500 trillion dong, or around 4 per cent of GDP, in financing this year according to the finance ministry. Adam Samdin, from Oxford Economics, said that the government has ample space to raise public debt levels, given that debt is just 36 per cent of GDP, well below the mandated ceiling of 60 per cent. 'Should growth be lower than expected from higher tariff rates, we think the government can afford to respond with more fiscal stimulus as well,' he said. Spending plan Earlier this week, Vietnam's prime minister outlined plans to boost public spending and 'fully disburse' allocated funding for ministries and local authorities, having missed spending targets for years. About US$19 billion in public funds was left uninvested from 2021 to 2023, about 25 per cent less than planned, according to finance ministry data, and the government has forfeited billions of US dollars in foreign aid. 'In Vietnam, a 1 per cent increase in public investment will boost GDP growth by 0.06 percentage point,' Can Van Luc, a government adviser, said, adding growth was the objective. Bond issuances have continued despite higher rates. The coupon on five-year government bonds is so far up almost 50 per cent year-to-date, to an average of 2.17 per cent, and nearly 25 per cent higher on 10-year bonds, at 2.92 per cent, according to stock exchange data. REUTERS
Reuters
25-04-2025
- Business
- Reuters
Vietnam ramps up bond sales, spending as export-led growth faces tariff risks
HANOI, April 25 (Reuters) - Vietnam has increased government bond sales by nearly 30% so far this year, data shows, as it bids to boost public spending to spur growth and shield the economy from the risk of crippling U.S. tariffs. The Southeast Asian industrial hub's economy has expanded rapidly in recent years - growing more than 7% in 2024 - thanks to foreign investment in export-oriented manufacturing plants powered by cheap labour and components often shipped from China. Exports accounted for 87% of gross domestic product last year, of which the largest share went to the United States, according to official data. But the country now faces tariffs of 46% from the Trump administration on goods imported into the U.S., much higher than most regional competitors, which economists at research firm BMI have estimated could reduce growth by up to 3 percentage points. Vietnam has kicked off trade talks with the U.S., and is trying to persuade Washington to reduce or eliminate the new tariffs, which have been paused until July. The country is also selling more bonds, despite a historic reluctance to increase low public debt levels. It has so far raised 130.8 trillion dong ($5.04 billion) from government bonds with different maturities this year, up by 26.7% from last year, according to data from the Hanoi Stock Exchange updated to April 23. The money is earmarked to boost public investment, mostly in railway and power infrastructure, and to spur domestic consumption to meet this year's GDP growth target of at least 8%. The government plans to raise around 500 trillion dong ($19.25 billion), or around 4% of GDP, in financing this year according to the finance ministry. Adam Samdin, from Oxford Economics, said that the government has ample space to raise public debt levels, given that debt is just 36% of GDP, well below the mandated ceiling of 60%. "Should growth be lower than expected from higher tariff rates, we think the government can afford to respond with more fiscal stimulus as well," he told Reuters. SPENDING PLAN Earlier this week, Vietnam's prime minister outlined plans to boost public spending and "fully disburse" allocated funding for ministries and local authorities, having missed spending targets for years. About $19 billion in public funds was left uninvested from 2021 to 2023, about 25% less than planned, according to finance ministry data, and the government has forfeited billions of dollars in foreign aid. "In Vietnam, a 1% increase in public investment will boost GDP growth by 0.06 percentage point," Can Van Luc, a government adviser, said, adding growth was the objective. Bond issuances have continued despite higher rates. The coupon on 5-year government bonds is so far up almost 50% year-to-date, to an average of 2.17%, and nearly 25% higher on 10-year bonds, at 2.92%, according to stock exchange data.
Business Recorder
23-04-2025
- Business
- Business Recorder
Vietnam raises $322 million in government bond auction
HANOI: Vietnam's State Treasury raised 8.36 trillion dong ($322 million) in a government bond auction on Wednesday, down from $446 million raised last week. The uptake was also lower, with 66.8% of the bonds on offer sold according to a Hanoi Stock Exchange filing, compared with 82.7% at last week's auction. The auction took total government bond sales so far this year to 130.8 trillion dong, according to exchange data. Vietnam uses proceeds from bond sales mainly to fund its public investments, among the key drivers of its economic growth. At Wednesday's auction, the treasury sold all of the 2 trillion dong of 5-year bonds and all of the 1 trillion dong of 15-year bonds offered, with coupons of 2.26% and 3.10%, respectively. Vietnam raises $323mn in govt bond auction, filing shows It also sold 5.3 trillion dong out of 9 trillion dong of 10-year bonds at a coupon of 3.03%, and just 52 billion dong out of 500 billion dong of 30-year bonds at a coupon of 3.28%. On the corporate side, Vietnamese companies have raised 41.6 trillion dong via bonds in the year to April 18, according to bond market association data. The value of corporate bonds maturing in the remainder of 2025 is 166 trillion dong, 53.5% of which are in the real estate sector and 24.2% for the banking sector, the data showed.
