MARKET SNAPSHOTS WEEK 19/2023
Foreign investors continue to pour capital into Vietnam
After a quiet period, attracting FDI had shown positive signs again when international investors made new investment plans in Vietnam. As of April 20, 2023, the total newly registered capital, adjusted and contributed capital to buy shares and buy capital contributions from foreign investors, reached nearly 8.88 billion USD. In particular, 750 new projects had been granted investment certificates with a total registered capital of more than 4.1 billion USD. In addition, some large corporations had made specific plans to expand investment in Vietnam in the near future. For example, P&G Group will invest about 100 million USD in expanding the production line at the Ben Cat factory, and Polaris Group will expand the second factory in Vinh Phuc with an investment of 30 million USD.
Proposal to impose a second property tax to avoid speculation
The Government has just sent the National Assembly a report on the acceptance and explanation of the draft Land Law (amended) after consulting the entire people and National Assembly deputies at the 4th session (October 2022). Accordingly, there are people's opinions recommending the application of taxes and fees such as progressive taxes for second home buyers or more and according to the time of sale of real estate. At the same time, impose a high surcharge on real estate in the central area and city to limit speculation, unused houses, or land. The Government said Resolution 18 of the Central Committee stated the point of view "stipulating a higher tax rate for users of large areas of land, housing, speculation, and abandoned land." Therefore, in this amendment, the additional Land Bill stipulates that abandoned, behind-schedule projects will be subject to an increase in land use and land rental fees. The specific tax rate will be specified in the tax law.
The Government adjusted and supplemented some industrial parks in Ho Chi Minh City
On May 4, Deputy Prime Minister Le Minh Khai issued a decision to put three industrial parks, including Bau Dung Industrial Park with a scale of 175ha (Cu Chi District), Phuoc Hiep Industrial Park with a scale of 200ha (Cu Chi District), and Xuan Thoi Thuong Industrial Park with a scale of 300ha (Hoc Mon district) out of the planning for the development of industrial zones in Ho Chi Minh City approved by the Prime Minister since 2014. Besides, adding Pham Van Hai I Industrial Park, with an area of 379ha, and Pham Van Hai II Industrial Park, with an area of 289ha in Binh Chanh District, into the development planning of industrial zones in Ho Chi Minh City. Other industrial zones included in the development plan of industrial zones in Ho Chi Minh City approved by the Prime Minister since 2014 remain unchanged.
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Bac Giang grants licenses to projects worth 132 million USD
On May 4, Bac Giang held a conference to award investment registration certificates for two projects with a total capital of 132 million USD. The first is the project "Production and supply of HIUV application materials" of investor Hiuv Applied Material Technology Investment Pte.Ltd (China). The factory focuses on producing PET self-adhesive protective film, EAV film, Silicon film, film materials, plastic products, and materials for the solar energy industry, with a scale of 200 million m2 of products/per year. The project implementation site is at Viet - Han Industrial Park (Viet Yen district), with a scale of 52,803 m2 and with total investment capital of 90 million USD. The second is the "Yonz Technology Vietnam Investment Factory" project of the investor Yonz Technology Singapore Pte. Ltd. The project focuses on manufacturing and processing aluminum frames for the solar battery manufacturing and assembly industry, with a scale of about 110,000 tons/year. The project implementation site is in Yen Lu Industrial Park (Yen Dung district), with a scale of 100,000 m2 and with total investment capital of 42 million USD.
The highway "brings" visitors to Mui Ne is crowded, seafood prices increase and are scarce
According to the Department of Culture, Sports and Tourism of Binh Thuan province, from April 29 to May 3, visitors to Binh Thuan reached more than 160,000 arrivals, double that of last year. The average room capacity of the whole province is from 75 to 85%, and the resorts in the Mui Ne area are at full capacity. Room prices in resorts in Mui Ne increased by 30-40%. In the area of La Gi, Ham Thuan Nam, Tuy Phong, the increase was not significant. The reason this year Mui Ne welcomes a high number of visitors on the occasion of April 30 and May 1 is that the Phan Thiet - Dau Giay expressway has shortened the distance from Ho Chi Minh City to Mui Ne by only 2.5 hours, shortening the distance from Ho Chi Minh City. On the other hand, this holiday lasts right in the hot season, so the number of tourists coming to the beach to relax and swim also increases.
Credit for real estate business and securities investment suddenly increased sharply
As of March 31, 2023, the State Bank said that credit for the whole economy reached over VND 12.2 million billion, up 2.61% compared to the end of 2022, up 10.49% YoY. In particular, credit to the real estate sector increased by 2.19% (only credit for real estate business increased by 6.45%, and for self-use purposes increased by 0.25%). Besides, credit for securities investment and trading increased by 13.39%, but securities loans only accounted for a very small proportion of securities loans, which only accounted for a very small proportion at commercial banks. In the coming time, the SBV said that it would manage the growth of volume and rationally structure credit, meeting the credit capital needs of the economy, contributing to controlling inflation, and supporting economic growth.