Vietnam news highlights for May 11, 2023

Affordable homebuyers benefit 4.8% annual bank rate

An affordable apartment building in Hanoi's Bac Tu Liem District. Photo: Pham Hung/The Hanoi Times

Prime Minister Pham Minh Chinh allowed on May 5 to set a preferential interest rate on loans from the Vietnam Bank for Social Policies for the purchase of affordable houses, housing development, and renovation and reconstruction of existing properties at 4.8% per year until December 31, 2024.

On April 3, the government considered completing the construction of one million affordable houses for low-income people and industrial workers by 2030. Of the total, about 428,000 houses will be completed in 2021-2025, and about 634,000 housing units will be available in the following five years.

Asia’s new electronics hub can be found in Vietnam

Vietnam may turn into the electronics manufacturing hub of Asia with the local establishment of giants such as Samsung, Apple, LG and Intel, said Darren Seah, Portfolio Director (Industrial Transformation) at Constellar, on May 10 at a conference to introduce Industrial Transformation Asia-Pacific (ITAP) 2023. The event is scheduled for October in Singapore.

Darren urged Vietnamese companies to better control product quality, and strengthen their connectivity with international partners to improve their product competitiveness. He also addressed green, sustainable production as the most critical point for local manufacturers.

Friendship Badge awarded to UN Women Representative in Vietnam

The Vietnam Union of Friendship Organizations on May 10 presented the "For Peace and Friendship among Nations" badge to UN Women Representative in Vietnam, Elisa Fernandez, in recognition of her valuable contributions to the UN-Vietnam partnership and the advancement of Vietnamese women.

Elisa has supported government agencies and local authorities to promote gender equality, empower women and girls, achieve the UN Sustainable Development Goals, and strengthen the country's participation in the women, peace and security agenda. She also founded the Women's Leadership Dialogue series - a friendly space for women and women leaders from around the world to talk, discuss and share their experiences.

New stock trading accounts hit three-year low in April

A stock investor in Hanoi. Photo: Pham Hung/The Hanoi Times

The number of new trading accounts continued to slow, hitting a three-year low in April with only 22,700 new users, according to the Vietnam Securities Depository. The number fell for the third month from 39,800 in March and 64,040 in February. The figure reached its highest in May and June 2022, when a total of more than 943,000 new accounts were opened.

The figure started to decline in July 2022, as Vietnam's stock market weakened following the arrest of major business executives for market manipulation. 

Low confidence lawmaker must resign in 10 days

A deputy of the National Assembly may have to resign within 10 days if 50-66% of confidence votes determine him at the "low confidence" level, said a draft regulation being considered by lawmakers. The official decision on his resignation must be made within 30 days after the results are announced.

According to Nguyen Thi Thanh, head of the Deputy Committee of the National Assembly, the new rule will help authorities better assess officials and dismiss those who are incapable of performing their duties. The new rule will be discussed at the 5th National Assembly Congress, which starts on May 22.

Vietnam GDP growth forecast at 6.5% in 2023: Standard Chartered

Standard Chartered Bank has lowered Vietnam's  GDP growth forecast in 2023 to 6.5% from 7.2% in January. The bank has also become more cautious on the external front.

In January-April, Vietnam's exports and imports fell 11.8% and 15.4% year-on-year, respectively. The bank expects the State Bank of Vietnam (SBV) to cut the refinancing rate by another 50 bps to 5% by end-2Q, followed by a hold on rates until end-2025. However, it sees upside risks to the rate forecast, especially towards the end of the year, as the SBV may focus more on financial stability than growth.

Vietnam's ICT revenue hits US$47.6 billion in January-April

Revenue in the information and communications technology (ICT) industry reached VND1.14 trillion (US$48.6 billion), 27% of the full-year projection, according to the Ministry of Information and Communications. In April, ICT revenue reached more than VND313 trillion (US$13.2 billion), up 6% from March.

In January-April, the total contribution of ICT enterprises to the State budget was estimated at nearly VND31.3 trillion (US$1.32 billion), accounting for 31% of the full-year plan.