The trade war between US and China is entering a highly stressful period as both sides are determined to prove their strength by tough responses and heavy penalties on each other. SGGP Investment & Finance had discussions with several experts to clarify what the impact of this trade war would be on the economy in USA, China, Vietnam and other countries.
Currently many solar power projects worth thousands of billion dong are under construction. As with BOT projects, banks are in the forefront to avail the many opportunities to do business with solar power operators. However, feasibility of this green technology is as constrained as sale of electricity to EVN, the sole wholesale electricity buyer in Vietnam.
In 2017, the government issued Resolution 120/NQ-CP for the development of a sustainable agricultural industry to proactively respond to recurring climate change and achieve 80% contribution ratio in total agricultural production in the Mekong Delta. However, even the application of high technology in agriculture to improve quality in production has not been effective as it continually faces several barriers which now need to be clarified and resolved.
Solar power projects usually need huge capital investment of thousands of billion dong. Hence, they are mainly funded through bank loans. The past lessons learnt from the ineffectiveness of BOT projects, which have also mainly depended on bank loans, is reason to exercise caution now in loans for solar power projects.
The US Government has recently increased import tariffs on goods imported from China which in short term might create certain advantages for exported goods of Vietnam; however, according to many enterprises, in long term, the US market is no longer a potential and comfortable market.
Deputy Prime Minister Trinh Dinh Dung spoke highly of France’s investment in Vietnam while hosting a reception in Hanoi on May 15 for several large French enterprises operating in infrastructure and aviation.
The State Bank of Vietnam continued to raise reference exchange rate by VND10 per dollar on May 15 sending the US dollar exchange rate against the Vietnamese dong to a new record high of VND23,064 per dollar.
Although in the first four months of this year, registered foreign investment capital into Vietnam hit a record high, there was no large-scale project. According to experts from the Ministry of Planning and Investment, the first-billion-dollar project this year will possibly be a project from Hong Kong (China): Weijia Textiles Vina.
Several automobiles manufacturers in Vietnam have run various promotional campaigns for a third consecutive month in order to boost demand and sales amid the context that foreign-made cars have been imported heavily into Vietnamese market.
Vietnamese Prime Minister Nguyen Xuan Phuc and President of Myanmar Win Myint expressed their pleasure at active development and achievements in all cooperation fields, especially since relations between the two nations were raised to the comprehensive partnership in 2017.
At the Investment Conference held last week in Ho Chi Minh City, Nguyen Thanh Phong, Chairman, People’s Committee of Ho Chi Minh City, and Nguyen Thien Nhan, Secretary, Central Party Committee of Ho Chi Minh City, highlighted the various efforts made to attract both domestic and foreign investors to create a new vibrant economic driving force in Ho Chi Minh City within the next couple of years.
At a discussion with SGGP Investment & Finance, Mr. Dao Phuc Tuong (picture), Investment Director of APS Fund Management (Singapore), delivered a short analysis on some companies which will have direct impact on the GDP growth in 2019.
In a discussion with SGGP Investment & Finance, Deputy Professor Dr. Dinh Trong Thinh (photo), Head of International Financial Management course at Academy of Finance, said, “There is need to clarify the roles of Commission for the Management of Stake Capital-CMSC and other ministries and sectors related to State Owned Enterprises-SOEs”.