(Dan Tri) - Vietnam's economic picture in 2023 has many outstanding highlights such as gold prices continuously breaking new peaks, the 35,000 billion VND bidding package for Long Thanh airport, VinFast listing in the US, planning VIII, increasing electricity prices...
Gold bar prices continue to break new records
In December, the price of gold continuously broke historical peaks. Since the beginning of the year, each tael of gold bar has increased by more than 13 million VND, equivalent to an increase of 20% - 4 times higher than bank savings. The price of gold exceeded 80 million VND/tael in the selling direction. Many trading sessions of gold bars increased by 2 million VND/tael, with 10-15 times the price was adjusted by the "gold shops". Gold rings are not inferior to gold bars with an increase of about 19-20%.
Gold prices continuously break historical peaks (Photo: Manh Quan).
The world gold price is still hovering around 2,050 USD/ounce. If converted at the exchange rate excluding taxes and fees, international gold is nearly 20 million VND lower than gold bars and 3.5 million VND lower than gold rings. SJC gold bars are a special market as the supply is monopolized by the state and the supply has remained unchanged for the past decade. The fluctuation in gold bar prices depends largely on the buying and selling power of investor groups and is not connected to the world.Announcing the joint venture that won the 35,000 billion VND bid for Long Thanh airport
In August this year, Vietnam Airports Corporation (ACV) announced the results of the selection of contractors for package 5.10 for construction and installation of equipment for the passenger terminal of the Long Thanh International Airport, Phase 1, component 3 project. The Vietur consortium won the bid with a winning bid of nearly VND27,814 billion and nearly USD339 million (equivalent to about VND8,130 billion). The total converted value is about VND35,000 billion. This is a combined price contract.
Perspective of Long Thanh airport passenger terminal (Photo: ACV).
The contract implementation period is 1,170 days, equivalent to 39 months, including holidays according to Vietnamese law, from the date of signing the contract. The contract signing ceremony is expected to take place from August 25 to August 30. The Vietur contractor consortium is led by the IC Ictas Construction and Industry Group (Türkiye). Other member contractors are domestic units, such as Ricons, Newtecons, SOL E&C, Vinaconex, ATAD, Phuc Hung Holdings, Hawee, Hancorp. By August 31, this package had started construction. The passenger terminal is built on an area of 376,000m2, designed with 2 separate departure and arrival elevations, including 1 ground floor and 3 upper floors, stylized in the image of a lotus flower.Electric car company VinFast listed on US stock exchange
On the evening of August 15 (Vietnam time), VinFast officially listed its shares on the US stock exchange. This event attracted nearly 8,000 people to watch live. The bell-ringing event on Nasdaq took place right after VinFast successfully completed the business merger transaction with Black Spade. Accordingly, VinFast has officially become a publicly listed company of global stature, and is the Vietnamese brand with the largest capitalization listed on the US stock exchange to date.
The moment VinFast's VFS shares were listed on Nasdaq (Photo: VF).
As soon as the trading session opened, VFS increased to 23.11 USD/share, from 22 USD/share and continued to increase rapidly in the following trading sessions, at one point reaching 93 USD/share. After an impressive trading series after its listing, VFS shares have adjusted. The price of this stock on the Nasdaq is currently at 7.99 USD (closing on December 22), corresponding to VinFast's capitalization reaching 18.43 billion USD. Following the listing, VinFast announced the signing of an agreement with the YA II PN fund (Yorkville) - an American investment management fund with more than 20 years of experience investing in listed companies - on the purchase of VFS shares. According to the agreement, VinFast will have the right to request Yorkville to purchase up to 1 billion USD of VFS common shares, at any time within the 36-month term of the agreement. Many experts in Vietnam believe that VinFast's listing on the US stock exchange is a positive thing for the Vietnamese economy, and could open up another way to raise capital for Vietnamese businesses.Official approval of Power Plan 8
On May 15, the Prime Minister signed Decision No. 500 approving the National Power Development Plan for the 2021-2030 period, with a vision to 2050 (Power Plan 8). Power Plan 8 aims to ensure national energy security, meet the requirements of socio-economic development and industrialization, modernization of the country and strongly develop renewable energy sources for electricity production. To achieve the above goals, Power Plan 8 has identified power source development plans, power grid development plans, grid connection with countries in the region, orientation for rural power development, orientation for industrial ecosystem development and renewable energy services, and investment capital needs. Specifically, the 2021-2030 period is estimated to have a total investment capital for power source and transmission grid development equivalent to 134.7 billion USD. For the 2031-2050 period, the estimated capital demand for developing power sources and transmission grids is equivalent to 399.2-523.1 billion USD. Of which, investment in power sources is about 364.4-511.2 billion USD, and power transmission grid is about 34.8-38.6 billion USD, which will be determined in the following plans.
Power Plan VIII aims to firmly ensure national energy security, meet the requirements of socio-economic development and the country's industrialization and modernization (Photo: EVN).
Electricity price increase, power shortage, rotating power outages
In 2023, electricity prices will increase twice: once in early May and once in mid-November. In the first increase, the average retail electricity price increased by 3%, from VND 1,864.44/kWh to VND 1,920.37/kWh (excluding VAT). In the second increase, the electricity price increased again to VND 2,006.79/kWh, an increase of 4.5%. The increase in electricity prices has led to an increase in people's electricity bills. According to the explanation from the management agency and Vietnam Electricity Group (EVN), the cost of purchasing electricity and the cost of producing electricity are currently higher than the selling price because the input fuel price for power plants has increased and remained high. Also in the past year, specifically from the end of May to the first half of June, there were continuous power shortages across the country, especially in the Northern region, with rotating power outages. The widespread interruption of electricity supply has caused public outrage, affected people's lives, and caused damage to the economy. The Prime Minister then directed and strictly handled the organizations and individuals involved. Adjusting gasoline prices every ThursdayGasoline price adjustment every Thursday
After a long period of receiving proposals and opinions, on November 17, the Government issued Decree 80, supplementing a number of articles of Decree 95/2021 and Decree 83/2014 on petroleum trading. Decree 80 has many new points, expected to make the petroleum market more transparent, ensuring the interests of all parties involved. A notable point in the new decree is that the time for managing and announcing petroleum prices is shortened from 10 days to 7 days, fixed on Thursday every week. Since the change, domestic gasoline prices have no longer had shocking increases or decreases, and are closer to world prices.
The announcement of gasoline prices has been shortened from 10 days to 7 days, fixed on every Thursday (Photo: Manh Quan).
According to the new decree, retail gasoline agents are allowed to purchase gasoline from a maximum of three sources, in order to create competition in gasoline discounts in the market, while increasing the initiative of retail gasoline agents in sourcing and supplying gasoline. Decree 80 also abolishes the type of general gasoline retail agent. Decree 80 adds regulations on warehouse conditions when granting licenses to wholesale traders and gasoline distributors.2% VAT reduction from July 1
The National Assembly agreed to reduce value-added tax (VAT) by 2% from July 1 to the end of 2023. VAT will be reduced to 8%, from 10%, but will not apply to groups of goods such as telecommunications, information technology, finance, banking, securities, insurance, real estate business, metals, prefabricated metal products, mining products, refined petroleum, chemical products and items subject to special consumption tax. During the previous discussion, many National Assembly deputies proposed expanding the subjects eligible for a 2% VAT reduction, which means applying it to all groups of goods and services currently subject to a tax rate of 10%. Some other opinions want to increase the tax reduction to 3-5% and extend the implementation period of this policy until mid-2024 or the end of 2024. However, Minister Ho Duc Phoc said this is an immediate measure and a 6-month reduction is appropriate and balanced with the budget. Therefore, VAT reduction will not be extended to all goods and services subject to a tax rate of 10%. It is estimated that this year's budget will lose about VND24,000 billion when VAT is reduced to 8% in the second half of the year.
The National Assembly agreed to reduce value-added tax (VAT) by 2% from July 1 to the end of 2023 (Photo: Tien Tuan).
State Bank reduces operating interest rates 4 times
In 2023, the State Bank of Vietnam (SBV) has continuously reduced the operating interest rate 4 times, each time by 0.5-2%/year, in the context of world interest rates continuing to increase and remain at high levels. According to SBV, reducing the ceiling on mobilization and operating interest rates is "an important step, orienting the market's interest rate reduction trend". This is a signal guiding banks to reduce lending interest rates. On March 15, SBV first reduced short-term lending interest rates in VND by 0.5% in a number of economic sectors and fields; rediscount interest rates and interbank lending interest rates decreased by 1%. Next, SBV reduced operating interest rates 3 more times on April 3, May 25 and June 19. Accordingly, the overnight lending interest rate in interbank electronic payments and lending to cover capital shortages in the State Bank's clearing payments for credit institutions will decrease from 5.5%/year to 5%/year. The refinancing interest rate will decrease from 5%/year to 4.5%/year. The rediscount interest rate will decrease from 3.5%/year to 3%/year. The maximum interest rate applied to demand deposits and deposits with terms of less than 1 month remains at 0.5%/year. The maximum interest rate applied to deposits with terms from 1 month to less than 6 months will decrease from 5%/year to 4.75%/year. In particular, the maximum interest rate for deposits in VND at people's credit funds and microfinance institutions will decrease from 5.5%/year to 5.25%/year. The interest rate for deposits with terms of 6 months or more will still be determined by banks based on the supply and demand of capital in the market. After each reduction in the operating interest rate by the State Bank, commercial banks also gradually adjust their deposit interest rates to create conditions for reducing lending interest rates, in accordance with actual conditions.Resolution 41, the fulcrum for business development
On October 10, on behalf of the Politburo, General Secretary Nguyen Phu Trong signed and issued Resolution 41 on building and developing a team of entrepreneurs in the new era, replacing Resolution 09 issued 12 years ago. However, Resolution 41 is based on a survey of the current business situation and changing conditions and situations, from which there are notable new points. Accordingly, the Resolution emphasizes the viewpoint that "The team of entrepreneurs has an important position and role, is one of the core forces contributing to promoting the cause of industrialization, modernization of the country and international integration; building and developing an independent, self-reliant economy, ensuring national defense and security". It is noteworthy that Resolution 41 clearly states that perfecting and mobilizing the business community to strive to implement ethical standards and business culture, associated with national identity and accessing the quintessence of world business culture is a central, long-term task in building the Vietnamese business community and enterprises.
The revised Housing Law has many notable new points such as the management agency will tighten investment in the construction of mini apartments (Photo: Ha Phong).
Passing the amended Housing Law and Real Estate Business Law
The revised Housing Law was passed by the National Assembly on the morning of November 27 with the majority of delegates in favor. The revised Housing Law has many notable new points such as the management agency will tighten the investment in the construction of mini apartments. Also according to the revised Housing Law, the Vietnam General Confederation of Labor is the managing agency for social housing investment projects for workers and laborers to rent. The revised Housing Law also does not stipulate the ownership period but only stipulates the period of use of apartment buildings on the basis of inheriting the current Housing Law. Immediately after that, the National Assembly also passed the revised Real Estate Business Law with many stricter regulations in real estate business to protect home and land buyers. In particular, regarding deposits in real estate business, the law stipulates that project investors are only allowed to collect deposits of no more than 5% of the selling price, lease-purchase price of houses, construction works, and construction floor area when they have met all the conditions for putting them into business according to regulations. The deposit agreement must clearly state the selling price, lease-purchase price... Regarding the mechanism to prevent business activities when not qualified, the law has provisions prohibiting real estate business that does not meet the prescribed conditions, regulations on inspection procedures of state management agencies before putting future housing into business. The 2 new laws will take effect from January 1, 2025.Dantri.com.vn
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