The NIM of all banks declined in the third quarter 2023

20/11/2023

The continuous decrease in interest rates has been impacting the Net Interest Margin (NIM) of banks in the third quarter, but it is expected to improve from the fourth quarter.

The NIM of all banks has declined.

NIM (Net Interest Margin) is the difference between a bank's interest income and interest expenses, also referred to as the net interest income. NIM can also be understood as the difference in interest rates between funding activities (interest on deposits) and lending activities (interest on loans) of a bank. Therefore, interest rates directly influence NIM.

During the first nine months of 2023, the continuous fluctuation in interest rates was predicted to affect the NIM of banks. In the October 2023 Strategic Report, KBSV expects that the NIM of banks will reach its bottom in the third quarter and start recovering from the fourth quarter. However, it may not reach the high levels of 2022.

KBSV also notes that the risk to the recovery of NIM may arise from the decrease in the Short Funding for Long Loans (SFL) ratio to 30%, which would require some banks to adjust their funding portfolios and increase the proportion of long-term funding, leading to higher capital costs. Additionally, the interest rate competition among banks when Circular 06 is implemented (allowing borrowing from one bank to repay another) will have a negative impact on the overall NIM of the industry.

Data from VietstockFinance shows that all 28 banks recorded a decrease in their average NIM in the third quarter compared to the second quarter.

VPBank had the highest NIM coefficient in the third quarter, reaching 5.65% but declined from 6.32% in the second quarter and 6.96% in the first quarter. Next were MB (5.24%), VIB (4.73%), HDBank (4.66%), and ACB (4.13%).

The NIM has narrowed, but low-cost funding sources are starting to show effectiveness.

In a sector report published on November 8, 2023, VNDirect stated that the decrease in NIM was due to the slower increase in lending rates compared to the growth of funding costs to support customers, which is in line with the recommendations of the State Bank of Vietnam (SBV).

Among joint-stock commercial banks, only STB, VIB, and CTG have the ability to maintain stable or higher NIM compared to the same period. Particularly, VIB and CTG have utilized interbank lending with a higher proportion compared to the same period (the lowest level since 2022) in their funding structure to reduce the cost of funds (COF).

For STB, the absence of pressure from accrued interest has driven strong NIM growth in 2023.

Meanwhile, the NIM of banks with a high proportion of corporate bonds such as VPB and TCB continued to decrease the most.

However, the positive signal is that the industry's cost of funds has decreased due to the effective implementation of low-cost funding sources, and the CASA ratio has increased (from 18.1% at the end of Q2 2022 to 18.9% at the end of Q3 2023).

In Q4 2023, VNDirect expects the COF to decrease further as low-cost deposits will account for a higher proportion in banks' funding structure (deposit interest rates have declined significantly, by 40-100 basis points, across all terms in Q3 2023). However, NIM may not improve immediately in the current context of weak credit demand.

VNDirect believes that some banks with a high proportion of consumer lending and a low ratio of USD-denominated deposits will have a better opportunity to improve NIM compared to other banks. In 2024, the securities company expects NIM to have the potential for recovery due to the return of credit demand along with economic growth.

The eagle is staying in a lodging

23/11/2023

In any office around the world, with three computers running, at least one of them has a "brain" - a CPU, manufactured in Ho Chi Minh City. This is the result of over 17 years of investment by Intel - the world's first high-tech corporation, choosing Vietnam for a billion-dollar project.

The US chip manufacturer holds about 70% of the global market share for computer CPUs. Meanwhile, the factory in the Ho Chi Minh City High-Tech Park (SHTP) is assembling, testing, and packaging over half of Intel's total chips.

"Calling Intel is an important milestone in the process of attracting FDI," said Mr. Pham Chanh Truc, former Deputy Secretary of the Ho Chi Minh City Party Committee and the first Head of the Management Board of SHTP. Mr. Truc played a key role in the two-year-long negotiations to bring the US semiconductor corporation to Vietnam.

After Intel, many global technology brands such as Samsung and LG have also established billion-dollar factories in Vietnam, along with a series of assembly units for Dell and Apple. From clothing, shoes, to the phrase "made in Vietnam," it has started to appear on TVs, smartphones, smartwatches, and semiconductor chips consumed worldwide.

Nowadays, electrical and electronic devices have become the most important commodity, accounting for nearly half of Vietnam's total export value, reaching $155 billion, a fivefold increase in 10 years. Vietnam has entered the top 10 countries supplying electrical and electronic equipment to the world. However, the billions of dollars invested by these corporations in Vietnam have given the country a new image on the trade map, but they have not yet been able to elevate the economy to a higher value level.

"Vietnam still specializes in assembling basic components and simple processing, while specialized components and equipment have not made any progress" is the conclusion drawn in the first and only Industrial White Paper, published by the Ministry of Industry and Trade in 2019.

That is not the result that the founders of the foundation aimed to achieve in attracting technology investors, such as Mr. Truc.

"High-tech parks or any investors are just the initial core. The ultimate goal must be the spillover effect to drive the development of our own industry," he said.

Clear the way for the "eagle's nest"

After the Đổi mới (Renovation) period, Ho Chi Minh City became the location for the country's first export processing zone - Tan Thuan, established in the southern part of Saigon in 1991. The model was learned from Taiwan, leveraging tax and customs incentives to attract foreign businesses to set up processing and exporting factories. The first investors who came to Tan Thuan were mostly involved in the textile, garment, leather, and footwear industries - sectors representing the early stages of industrialization.

However, both the city's leaders and the central government realized that if they were to integrate late, they needed to find a fast development direction and could not linger in traditional industries.

"We must elevate the export processing zone to access advanced world technologies," recalled Mr. Pham Chanh Truc (then Vice Chairman of the Ho Chi Minh City People's Committee in charge of foreign economic affairs) during a meeting between the city's leaders and Chairman of the State Committee for Cooperation and Investment, Dao Ngoc Xuan.

That was the premise for the establishment of the Ho Chi Minh City High-Tech Park (SHTP). Mr. Truc himself was responsible for researching and implementing this idea in 1992. It took 10 years for SHTP to be officially established, becoming the country's first high-tech park in 2002.

At that time, Mr. Truc was 62 years old, serving as Deputy Head of the Central Economic Commission and preparing for retirement. However, when the Party Committee's leaders proposed that he become the Head of the SHTP Management Board, he immediately agreed, putting his retirement plans on hold.

"This position is only equivalent to a department director, but I didn't compare it to the position and accepted it immediately because I wanted to complete the unfinished project," he recounted.

Mr. Truc discussed with Mr. Xuan that if SHTP could attract an investor from the Fortune 500 list of the largest US companies, it would be a significant boost for Ho Chi Minh City and the whole country.

The first target was HP, as the person in charge of expanding the company's manufacturing operations at that time was a Vietnamese overseas - an advantage for the city. However, this person passed away suddenly, causing the plan to bring HP's investment into SHTP to remain unfinished.

After contacting several other companies, the city was determined to attract Intel when they learned that the largest chip manufacturer in the US was looking for a location to build a new assembly and testing plant in Asia. Vietnam was among the options.

In 2003, Deputy Prime Minister Vu Khoan led a Vietnamese delegation to Intel's headquarters in the US, carrying a letter from Prime Minister Phan Van Khai inviting the corporation to invest and introducing two locations: Hoa Lac High-Tech Park (Hanoi) and SHTP.

In the following years, Intel had sent several delegations to Ho Chi Minh City to explore the conditions of infrastructure, logistics, transportation, human resources, and incentive policies.

"The city has never encountered any investor that has set such detailed and stringent conditions like Intel," Mr. Truc said. As a result, the negotiations had to address "numerous unprecedented requirements" and involved company executives from the United States, leading to late-night meetings.

During a discussion on electricity prices, Mr. Truc directly contacted Deputy Prime Minister Nguyen Tan Dung, who was responsible for overseeing the negotiations at that time, to seek the government's opinion. After receiving the green light, he promptly reached an agreement on incentives with Intel.

"If I had followed the standard procedure of sending written requests to EVN and various ministries, and waiting for the government's conclusion, I wouldn't have known when I could respond. Not all demands can be met immediately by the city, but our commitment made them feel confident," said the former head of the SHTP Committee.

During Prime Minister Phan Van Khai's visit to the United States in 2005, the negotiation delegation even went to Intel's headquarters in California to discuss directly with the company's top executives. However, upon arrival, Mr. Truc was informed that the Chairman of Intel was in Washington D.C.

"We immediately flew to the U.S. capital and invited the Chairman to the Vietnamese Embassy for discussions," Mr. Truc said.

It was during this meeting that the highest-ranking leadership of Intel confirmed their plan to build a $600 million factory in Ho Chi Minh City, with the intention of increasing the investment to $1 billion after obtaining the license a year later.

Three years after the groundbreaking ceremony, Intel began producing the first "made in Vietnam" chips in 2010. At that time, no domestic company had the capability to become a partner of the American corporation.

Today, the factory has over 100 Vietnamese enterprises in its supply chain network, according to Mr. Kim Huat Ooi, Vice President of Manufacturing, Supply Chain, and Operations, and General Director of Intel Products Vietnam.

However, the progress in terms of quantity does not go hand in hand with quality. After 13 years, no Vietnamese company has been able to directly supply materials for the assembly and packaging of chips, such as substrates, capacitors, flux materials, solder, or adhesives. The equipment and machinery in Intel's production line are also not sourced locally.

The playing field for domestic companies remains outside the direct manufacturing line of the semiconductor corporation. It involves indirect inputs such as conveyor belts, furniture, equipment, transportation services, manpower, and security.

In other words, although Vietnam is the birthplace of over half of Intel's products, the domestic manufacturing industry has not been able to provide any essential inputs for the chips. Local businesses are still unable to soar alongside the "eagle."

Samsung is another example that illustrates Vietnam's position in the global value chain. More than half of the smartphones produced by this brand are manufactured in factories located in Bac Ninh and Thai Nguyen.

Annually, the South Korean conglomerate publicly discloses its key suppliers, which account for 80% of the company's procurement value. According to last year's list, 26 major Samsung suppliers are operating in Vietnam. Among them, 22 companies are from South Korea, 2 from Japan, 2 from China, and none are Vietnamese enterprises.

In the global value chain, the forward linkage ratio reflects a country's ability to provide input components to another country's businesses for the production of final products. Conversely, the backward linkage indicates dependence on imported raw materials and components for manufacturing within a country.

Vietnam currently has a much lower forward linkage ratio compared to many other Southeast Asian countries, and it is continuing to decrease. Meanwhile, the backward linkage ratio is gradually increasing, indicating a growing reliance on imports for assembling finished products.

"Foreign direct investment (FDI) corporations find it challenging to establish deep roots in Vietnam due to the fragile linkages with the domestic economy," stated Nguyen Dinh Nam, Chairman of the Board of Directors and CEO of the Vietnam Investment and Cooperation Promotion Corporation. Vietnam's primary role with foreign enterprises remains the provision of labor and low-cost positioning.

Similarly, Phan Huu Thang, former Director of the Foreign Investment Agency, Ministry of Planning and Investment, believes that the FDI attraction policy has long aimed to access and learn core technologies from leading industrial nations. However, after more than three decades, the technology transfer objective has not been achieved effectively, and a significant reason is the lack of linkage between foreign and domestic businesses.

Meanwhile, investors also want to increase localization rates to reduce costs compared to imports, according to Matsumoto Nobuyuki, Chief Representative of the Japan External Trade Organization (JETRO) in Ho Chi Minh City.

Mr. Nobuyuki is frequently asked by many Japanese corporations to connect them with Vietnamese businesses for additional domestic suppliers, especially for critical components. However, he stated, "Very few companies meet the standards of Japanese enterprises."

Around 97% of domestic enterprises are small and medium-sized, with limited capital and management capacity. On the other hand, becoming a supply partner for global manufacturers requires significant technological investment.

"The barriers mentioned above have resulted in most Vietnamese businesses remaining outside the supply chains of high-tech corporations," a group of experts from the Fulbright School of Public Policy and Management highlighted in a 2016 report summarizing Intel's investment in Vietnam.

Therefore, large corporations investing in Vietnam typically bring along their existing supplier networks from foreign countries and then seek to support and train domestic enterprises to participate in the supply chain. However, not every company has the necessary resources.

Earlier this year, a customer of CEO Nguyen Dinh Nam, a German medical equipment manufacturer, announced that they would choose Indonesia instead of Vietnam for their planned factory.

"They searched from the north to the south but could not find chip and circuit suppliers for their devices, so they had to give up, despite acknowledging Vietnam's favorable incentive policies," said Mr. Nam.

Intel is investing billions of dollars in a factory in Vietnam for assembly, testing, and packaging processes. The chip manufacturing and design processes are carried out in another country.

The bottom of the curve

When Intel agreed to invest 17 years ago, some high-level executives raised the issue of persuading the American corporation to expand research and development (R&D) activities in Vietnam. However, Pham Chanh Truc knew that it was almost impossible. "No one easily shares their core technology for fear of being copied," he said.

To date, only Samsung and LG are the two high-tech FDI corporations that have established large-scale R&D centers in Vietnam.

The lifecycle of a technology product begins with R&D, followed by procurement of components, complete assembly, distribution, brand building, sales, and after-sales service. These activities form a parabolic curve from left to right, corresponding to the respective value-added.

This is known as the "smile curve" - a concept introduced by Acer's founder, Stan Shih, in 1992 to describe the value chain. In this curve, assembly lies at the bottom, representing the lowest value-added and is also the stage where most technology corporations' factories in Vietnam are currently engaged.

For example, with a high-end smartphone from Samsung, the assembly and testing process carried out in Vietnam accounts for only 5% of the production cost, according to TechInsights, a technology research company based in Canada, analyzing data from 2020.

"Every country wants to take on high-value-added tasks, but multinational corporations will allocate activities according to the capabilities of each country," said Do Thien Anh Tuan, co-author of the Intel operations research in Vietnam at Fulbright University.

In the chip industry, after the design phase, the production process takes place in two types of factories: fabrication (Fab) and assembly, testing, and packaging (ATM). Intel has 5 fabrication plants in the United States, Ireland, Israel, and 4 packaging plants in Costa Rica, China, Malaysia, and Vietnam.

Kim Huat Ooi stated that the company's plan is to continue focusing on assembly and testing at the facility in Ho Chi Minh City. Vietnam plays a significant role in the company's production process, with the largest output among the ATM factories.

However, Malaysia was the first country outside the United States where Intel chose to deploy its most advanced 3D chip packaging technology. Unlike Vietnam, Malaysia has a complete semiconductor manufacturing ecosystem with domestic enterprises handling all stages from design, fabrication, to chip assembly and testing.

In addition to Malaysia, Singapore also has chip fabrication plants. These two countries, along with Thailand and the Philippines, rank higher than Vietnam in the ECI (Economic Complexity Index), which reflects the ability to produce complex products, as calculated by Harvard University. Despite being one of the fastest-growing countries in the past 20 years, Vietnam ranks 61st out of 133 countries in this index globally, higher than Indonesia, Laos, and Cambodia in Southeast Asia.

Although Vietnam is the most attractive destination for Japanese businesses seeking to implement the "China + 1" strategy to diversify their manufacturing locations outside the world's most populous country, it still only attracts assembly tasks.

"If Vietnam wants to climb higher, it should forget about low-productivity jobs and focus on value-added activities," said Mr. Nobyuki.

This recommendation is not new but has become increasingly urgent as the advantage of labor-intensive activities, which is the main attraction for assembly and processing operations, is diminishing along with the rapid aging of the population in the region. The peak of the golden population era has passed, and Vietnam's labor force will begin to decline in 15 years, according to forecasting models by the United Nations Population Fund.

According to Mr. Do Thien Anh Tuan, the labor productivity of Vietnamese workers is still slow to improve and lags behind other ASEAN countries, while wages continue to rise, making the actual labor costs associated with productivity not cheap. "Investing in human resources and science and technology to move up the value chain must be the top priority," he said.

More than 30 years since the first ideas were outlined for a high-tech industrial park, Mr. Pham Chanh Truc still hasn't seen an advanced manufacturing sector as he had hoped.

"We have a few high-tech companies, but they are still too few. The majority are still engaged in assembly. If we continue at the current pace, how can we achieve the goal of becoming a prosperous country?" Mr. Truc expressed his concerns.

Vocabularies

forward linkage ratio: tỷ lệ liên kết xuôi

backward linkage: liên kết ngược

Source: https://vnexpress.net/dai-bang-o-tro-4679519.html

US 10-year Treasury Bonds

The 10-year Treasury refers to the 10-year Treasury note, which is a debt security issued by the United States Department of the Treasury. It is a fixed-income instrument that represents a loan made by investors to the U.S. government. The 10-year Treasury note has a maturity period of 10 years, meaning that the principal amount invested is repaid after 10 years from the date of issuance.

The U.S. Treasury Department issues Treasury securities to finance government operations and manage the national debt. These securities are considered low-risk investments because they are backed by the full faith and credit of the U.S. government. As a result, they are often considered a benchmark or reference point for other interest rates and financial instruments.
The yield on the 10-year Treasury note is closely monitored in financial markets as an indicator of long-term interest rates. It is influenced by various factors, including economic conditions, inflation expectations, monetary policy, and investor demand for safe-haven assets. Changes in the yield on the 10-year Treasury note can have implications for borrowing costs, mortgage rates, bond markets, and overall market sentiment.

The movement of 10-year Treasury bonds and the stock market can be influenced by different factors and often exhibit contrasting trends.

Yes yes Generation

Written on 14/8/2023

Late in the afternoon in Manila at the end of July, rain poured down under Typhoon Doksuri. I was sharing a few beers with a Filipino friend in a cozy bar.

At our age, children are always a topic that easily brings a sense of mutual understanding. I boasted, “My kid often plays online games with kids over here.” My friend smiled, “Yeah, probably to learn English, right?”

For the past few years, the Philippines has become a familiar destination for Vietnamese people to study English, both online and offline. Filipinos’ English proficiency also stands out compared to other ASEAN countries, since English has been an official language there since the late 19th century, back when the United States still colonized the archipelago.

Ho Chi Minh City Ring Road 3

HCMC's Ring Road 3

Introduction

General Information

Inauguration ceremony: 13 June 2023

Construction Start Date: End of June 2023

Planned Completion date: 2026

The implementing vendors:

Gói thầu XL1 - 1.848 tỷ đồng:

- Liên danh Đèo Cả (HHV) – Vinaconex (VCG)

HCMC's Ring Road No.3, also known as the Third Ring Road of Ho Chi Minh City, is a major infrastructure project in southern Vietnam. It is a circular road that will connect various areas within and around Ho Chi Minh City, as well as neighboring provinces.

The road will have a total length of approximately 90 kilometers and is designed to accommodate high volumes of traffic. It will pass through four localities: Ho Chi Minh City, Binh Duong, Dong Nai, and Long An. The project is estimated to cost over VND 75.4 thousands billion VND (around US$3.2 billion) and will be implemented in multiple phases.

The Ring Road 3 passes through Ho Chi Minh City with a length of approximately 47.5km, traversing four main areas of the city: Thu Duc City, Cu Chi District, Hoc Mon District, and Binh Chanh District.

Ring Road No.3 will integrate with existing and planned expressways, creating a comprehensive transportation network. It will connect to various important routes, including the HCMC - Trung Luong Expressway, Ben Luc - Long Thanh Expressway, HCMC - Moc Bai Expressway, and HCMC - Chon Thanh Expressway. These connections will facilitate easier travel and logistics between different regions and enhance economic development.

Benefits

The construction of Ring Road No.3 is expected to bring numerous benefits to the region, such as reducing travel time, improving accessibility to industrial zones and residential areas, and promoting regional trade and investment. It will also help alleviate traffic congestion in the city center by providing an alternative route for vehicles passing through or bypassing Ho Chi Minh City.

HCMC's Ring Road 3 has been planned for over 10 years but has not yet been fully completed. As a result, vehicles from different provinces and cities have to pass through HCMC when traveling from one region to another, causing overload and traffic congestion.

Currently, the highways connecting HCMC with Trung Luong, Long Thanh, and Dau Giay, as well as the main national routes such as National Route 1, National Route 13, and National Route 22, are all overloaded. This is especially evident during peak hours at the city's gateways.

The real estate projects that directly benefit from Ring Road 3 include notable ones in District 9 such as Vinhomes Grand Park, MT Eastmark City, Dong Tang Long, Palm Marina, and The 9 Stallars.

The Ben Luc - Long Thanh Expressway, passing through Nha Be district, will connect with the Hiệp Phước Industrial Park. This expressway will intersect with the HCMC - Trung Luong Expressway at a junction in Long An province, facilitating transportation from the western provinces to the eastern provinces and helping to alleviate congestion on National Route 1 and National Route 51.

Progress Update

https://chungkhoannhatrang.vn/lien-danh-deo-ca-hhv-vinaconex-vcg-tham-du-goi-thau-hon-1-800-ty-dong-post3259.html

10 June 2023

HCMC's Ring Road No.3 is a major traffic project in southern Vietnam, construction of the road which is set to begin this month. The first phase of the project will involve the construction of a 76-kilometer section with four lanes, with each locality responsible for clearing and building the portion within their territory.

One notable feature of the road is an overpass that will connect it to the HCMC - Long Thanh - Dau Giay Expressway, linking Dong Nai province with HCMC and connecting to the Dau Giay - Phan Thiet Expressway leading to the coastal city of Phan Thiet. Construction of the 47-kilometer section within HCMC is scheduled to commence on June 18 2023, while the other localities plan to start their respective sections later this month.

Ring Road No.3 will also serve as a connector to four other expressways: HCMC - Trung Luong, connecting HCMC with the Mekong Delta; Ben Luc - Long Thanh, the longest expressway in the south, linking HCMC with Long Thanh and Dong Nai provinces; HCMC - Moc Bai, facilitating travel between HCMC and the Cambodian border; and HCMC - Chon Thanh, connecting HCMC with Binh Duong province.

In HCMC, the road will feature a 13-kilometer elevated section, designed to optimize site clearance costs. The entire Ring Road No.3 will span 6 kilometers in Long An province and approximately 11 kilometers each in Binh Duong and Dong Nai provinces. Efforts are underway in Binh Duong to compensate affected families.

The project in Dong Nai province involves linking Nhon Trach District with HCMC's Thu Duc City, and a bridge over the Rach Chay River. The largest bridge on the road, costing VND1.8 trillion, will stretch 2.6 kilometers in length and 19.5 meters in width, including leading roads from both sides extending a total of 5.6 kilometers. The first phase of the ring road is expected to be completed in 2026, contributing to the socio-economic development of the southern region.

2 years changed the life of the girl who lost her job, lost her husband because weighs nearly 100 kg

Working at reputable bank, have enough son and daughter, but everything goes out of Thanh's hand. After many winds and waves, she found a balance.

The suffering of the Saigon girl increased twice as much as when she was pregnant

Huyen Thanh, born in 1987, is a runner-up in the weight loss jumps of over 23 kg in three months, from over 80 kg to nearly 59 kg. The efforts of single mothers at that time inspired many sisters to regain their confidence after major events in their lives.

Thanh was a beautiful girl, weighing only 50 kg. She graduated from Foreign Trade University with a degree in International Finance. She graduated from a foreign bank with a high salary. She married and then had two children. Life seemed to be flooded with a pink girl in Hanoi.

But then lost everything, just because of weight up to 97 kg after birth. The ugly, ugly body caused many obstacles for her when returning to work. Thanh decides to resign in mid-2013. At the same time, she painfully discovered her husband's affair. Husband not advised her, she had to carry several cups to her parents when the new baby several months old, and then break up really.

Huyen Thanh nearly 100 kg and when leaving the program, reduced 23 kg in 3 months.

The hard days come. Because self-esteem does not want anyone to help, Thanh opened his own home near the house every evening to get money to cover his life. Carrying the pain and longing to confirm himself, Thanh made every effort to join the Jump and win the second prize. "I have to admit that my main goal when it came to the contest was to win prizes, I wanted to have money to give them a better life, and I wanted to lose weight, About myself, Thanh shared.

Two years after adolescence, the life of single mothers has changed in a more positive way. No longer have to sit on the sidewalk selling snails, no longer have the tears falling tears self-pity for their destiny, Huyen Thanh of today has more confidence, more laugh.

After successfully losing weight, Thanh applied and was admitted to a bank as Customer Relation Manager. But busy work, reeling with the events, the trips, she decided to take a break to have time for two children, to compensate for the lack of love from their father.

Coming back from the show, Thanh is widely known, Facebook page has more than 50,000 followers. Taking advantage of this, she entered many items to sell online. She is not afraid to go to the source to get good prices, always try to meticulously refine "trau chuốt" each product to not lose their credibility.

The image of single mothers, alone raising two children, with the efforts of Xuan Huyen many people admire. She has become an ambassador for some brands or beauty centers. These incomes help Thanh can care for herself and her children better.

"Life can not be called rich, but more comfortable and fun than before." Sometimes bored, I remember the old image, and then again to make more effort, can not let all efforts to pour. I am thankful of those days, have strongly not give up, to have me today, "Thanh said.

In free time, she led two children to go to or grandparents. She even divorced, but the relationship with her parents are still very good. Her grandparents often call her inquiries, the house has something to call her back. For the children to remember his father, every week Thanh also leave his ex-husband to pick up the children. His mother's small happiness was to see his 5-year-old son, a 3-and-a-half-year-old girl playful, healthy every day.

After two years of weight loss, now weighs 57 kg. For a person who has been very fat, "just drinking water is also gaining weight," keeping weight, not increasing is a very arduous process. The mother still has to follow the diet of science and dance to keep the shape, not as before.

The mother and her two children are happy with what they have.

The spirit of comfort, not worry too much about economics, Huyen Thanh young more than two years ago. She is living happy days with a new guy, caring, loving and caring for her and her children.

"After all the events, everything was back to balance, I was revived with a youthful, fresh spirit, no matter what, what I aim for is a good mother and child life. With the parents on both sides, who have always loved, cheer me all the time, "Thanh shared.

Vietnam is attracting foreign investors, leading to a significant surge in FDI

Published at 14 Nov 2023

Foreign direct investment (FDI) in Vietnam is experiencing a surge as the country becomes increasingly attractive to foreign investors. According to M&A experts, investors from Europe, Japan, the U.K., and the U.S. are eager to enter the Vietnamese market.

Vietnam's political stability, growing consumer spending, and competitive wages are among the factors drawing the attention of European and American investors.

According to the agency, the major investment destinations in the country this year include Ho Chi Minh City, Hai Phong, Quang Ninh, Bac Giang, Hanoi, Bac Ninh, Binh Duong, and Dong Nai.

In the first 10 months of 2023, FDI reached $25.7 billion, a 14.7% increase compared to the previous year. Key sectors of interest for international investors include food, consumer goods manufacturing, retail, education, non-bank financial technology, and logistics.

This year, significant M&A deals have taken place with the participation of investors from Japan and the U.S. One notable transaction involved Sumitomo Mitsui Banking Corporation acquiring a 15% stake in VPBank through a private placement, valued at US$1.5 billion. Additionally, KKR Global Impact invested US$120 million in EQuest.

To further attract FDI, policymakers are advised to simplify the divestment process and improve regulations. The average duration of M&A transactions in Vietnam is nine months, and companies planning to sell are recommended to engage consultants at least a year in advance to identify potential buyers and negotiate prices.

"When putting money in, investors consider how they can withdraw it [later]. Company registration and acquisition are already convenient in Vietnam, but the divestment process needs to be improved and made simpler to attract investors."

Source: tradingeconomics.com

VCCI: Businesses suffer losses due to numerous invoice and document regulations.

13/11/2023

Businesses at a disadvantage due to numerous invoice and document regulations, according to VCCI.

Providing feedback on the Ministry of Finance's draft decree regarding invoice and document regulations, the Vietnam Chamber of Commerce and Industry (VCCI) has identified several points that are disadvantageous for businesses.

According to the draft, retail businesses and food service establishments in chains are not allowed to issue invoices at the end of the day but must issue them for each purchase from a cash register connected to the tax authorities' data system. Feedback from businesses indicates that this regulation increases costs significantly in terms of initial investments and system maintenance. The VCCI emphasizes that this requirement places significant pressure on certain industry sectors.

The regulation on submitting taxi invoice data to tax authorities after each trip also poses challenges in practice. The costs of software upgrades for taxi companies increase, and drivers may forget or face difficulties in handling data, leading to traffic congestion. Businesses may also face penalties for submitting data at the wrong time.

Therefore, the VCCI suggests that the Ministry of Finance reconsider and evaluate the cost-benefit impact of these regulations, with possible amendments to facilitate business operations.

Regarding commercial discount invoices, the draft stipulates that an adjusting invoice should be issued after the end of a discount program. However, businesses argue that this creates a significant workload as each adjusting invoice only applies to one invoice, while businesses may have multiple products and various promotional programs (each program applying to different products).
This significantly increases the volume of invoices, resulting in costs and resource allocation for businesses. If allowing multiple invoices to be adjusted by one adjusting invoice, listing the details on the discount invoice also burdens businesses, depending on whether the system can handle it.

In many cases, businesses can only identify customers who meet the conditions at the end of the program, while invoices can occur in multiple declaration periods, requiring constant adjustment of VAT declarations. This creates discrepancies between accounting records and tax declarations, causing difficulties in control, especially for businesses subject to financial reporting disclosure.
Therefore, the VCCI suggests that the Ministry of Finance consider adding a principle that allows businesses to issue a discount invoice (not an adjusting invoice) along with an accompanying statement.

Furthermore, the VCCI also recommends that the drafting agency remove the requirement for domestic invoices for temporary import, re-export, consignment, and returnable goods, as well as goods provided under loan, borrowing, and return arrangements. This aims to reduce administrative procedures and costs for businesses.