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BUSINESS IN BRIEF 5/12
Ho
Chi Minh City attracts over 3.1 billion USD in FDI
The
figure represented an increase of 95.3 percent compared with the same period
last year.
The city
licensed 370 new FDI projects with a total investment capital of 2.78 billion
USD in the period, down 10.2 percent in terms of projects but up 194.6
percent in capital year on year.
Samsung
group’s Samsung CE Complex project alone has an investment capital of 1.4
billion USD, accounting for 50.4 percent of the total newly-registered capital.
Meanwhile,
an additional 365 million USD was poured into 123 existing projects, dropping
45.4 percent on a yearly basis.
Ho Chi
Minh City-based businesses will recruit 265,000 workers next year, according
to the municipal Centre for Manpower Need and Labour Market Forecast.
The
recruitment demand will be seen in the fields of trade, services, health
care, tourism, insurance, finance-banking, mechanical engineering,
construction, information technology, electronics and electricity.
Deputy
Director of the centre Tran Anh Tuan stressed the need for workers to enhance
soft skills and foreign languages to meet requirements of the integration
process.
According
to the centre, in 2014, the city’s labour market has seen a stable growth and
a reduction in job changing rate.
The city
has also witnessed a severe competition between new graduates and experienced
workers, who accounted for 85 percent of the total job seekers.
According
to the municipal Department of Labour, Invalids and Social Affairs,
Manufacturers,
traders, investors and visitors were eager to visit three big international
trade fairs which opened at Saigon Exhibition and Convention Centre (SECC) on
December 3.
VIETNAM
EXPO 2014 has drawn the participation of over 420 businesses from countries
and territories like
VIETNAM
EXPO, an annual fair, has become one of the most important promotion trade
events to boost trade among enterprises, producers and domestic and foreign
investors, especially in
Meanwhile,
touring bicycles, hybrid bicycles, electric bicycles and bicycle accessories
with various brands are also on display at the INTERCYCLE VIETNAM 2014 with
the participations of popular brand names such as Thong Nhat, Fonix, Sun
Electric, Vietbike and renowned foreign brands.
Over 50
Turkish enterprises and groups from diverse sectors including machines,
agricultural products, building materials, and garments showcased their
products at the first Turkish Products Expo in
The 12th
Vietnam International Trade Fair (VIETNAM EXPO 2014), Vietnam International
Bicycle Exhibition 2014 (INTERCYCLE VIETNAM 2014) and Turkish Products Expo
will run until December 6.
WB
reports early signs of
The
World Bank said on December 3 that there were early signs of recovery for
According
to the WB’s new report issued on December 3, the country’s GDP expanded by
6.2 percent in the third quarter and 5.6 percent in the first nine months of
this year, which are early signs of the country’s economic recovery.
The bank
attributed the positive outlook to the country’s ongoing macroeconomic
stability and continued strong performance of the foreign-invested
manufacturing export sector.
It noted
that positive macroeconomic conditions contributed to
The
report found that underlying the broad pattern of economic recovery, the
performances of foreign-invested and domestic firms remain dichotomous. The
foreign-invested sector continues to be a significant source of growth, while
the domestic private sector remains subdued, as reflected in the rising
number of domestically-owned businesses that have closed or suspended
operations.
Regarding
Many
Vietnamese businesses are showcasing their products at the 20th International
Oil and Gas Industry Exhibition and Conference (OSEA 2014), which opened in
OSEA
2014 is seen as one of
In
addition to introducing breakthrough technologies and new solutions in the
industry, the event also features an exhibition of the latest high-end precision
engineering products.
The
organising board will hold 12 discussions with leading experts on the future
oil and gas provision and exploitation, natural resources management, and the
latest technologies in tapping oil and gas in deep seas and special
environments.
Representatives
of Vietnamese businesses attending the event told a Vietnam News Agency
correspondent in Singapore that this is the first time they has joined OSEA,
which offers a good chance for them to promote their products and services to
foreign partners.
OSEA is
a biennial tradeshow that has served the offshore oil & gas market and
its support industries since 1976.
Phu
Yen licenses luxurious tourism project
The
People’s Committee of central Phu Yen province on December 3 granted an investment
certificate to build an 80-million-USD tourism complex to Sunrise Vietnam Co.
Ltd. from the
The
complex, to be built on 52 ha of land and 56 ha of water surface in Tuy An
district and
The
construction will be carried out in three phases, and the first part is
scheduled to be put into operation in 2017.
Tran
Quang Nhat, Vice Chairman of the municipal People’s Committee, said he hopes
the project will help boost the tourism industry in the province.
At a
reception for a visiting East Flanders delegation led by Vice Governor Geert
Versnick in the city on December 3, Ha said that
As a
southern economic hub of the country,
For his
part, Geert Versnick highlighted the effective operation of his province’s
seaport systems, logistics services, bio-technology, agricultural processing,
education and health.
He
expressed hope to cooperate with
Trade
between
The
province now operates many projects in
The
country mainly shipped footwear, garment and textile, leather products and
precious stones to the Belgian province.
The
Thailand Convention and Exhibition Bureau (TCEB) has announced that it will
support Vietnamese businesses in seeking partners and expanding their markets
through trade exhibitions and fairs in
At a
press conference in
Two-way
trade between the two nations hit 7.6 billion USD in January-September, a
year-on-year increase of 11 percent.
As of
October 2014,
The two
countries strive to raise their two-way trade to 15 billion USD by 2020.
Quang
Ninh inaugurates 47 million USD wheat flour mill
The
Vietnam Flour Mill-Wilmar (VFM-Wilmar) inaugurated a new wheat flour mill at
the
The 47.4
million USD factory has a design capacity of 500 tonnes of wheat a day, and
employs 150 workers. The plant is expected to contribute 200 billion VND (9.4
million USD) to the province’s budget each year.
The
project helped to increase total new foreign direct investment (FDI) in Quang
Ninh to a record high 586 million USD.
The
VFM-Wilmar is a joint venture of
Businesses
learn about new trends in sustainable development
A
workshop in
Nguyen
Quang Vinh, Director of the Office for Business Sustainable Development and
General Secretary of the Vietnam Business Council for Sustainable Development
(VBCSD), said businesses play a role in creating economic value and a healthy
community lifestyle, adding that sustainable development now requires a
harmonious and close combination between socio-economic progress and
environment protection.
Commenting
on the corporate path to sustainable development in
Foreign
and domestic attendees introduced new trends in sustainable development,
including strategies to create growth fuelled by green industries and
consumer behaviours.
VBSD
sees the facilitation of dialogues on sustainability between business
community, the government and social organisations as its key role in the
coming time, its representative said.
Recently,
several social projects launched by enterprises have proved fruitful,
including Saigontourist’s charity activities for visually-impaired children,
PepsiCo
The
workshop was co-hosted by Vietnam Business Council for Sustainable
Development (VBCSD), Vietnam Chamber of Commerce and Industry (VCCI) and
WWF-Vietnam.
HCMC
to kick off $569.4 mn road-bridge project in Thu Thiem
The Ho
Chi Minh City People's Committee has signed a Build - Transfer (BT) contract
with an investor for building four roads and 12 bridges in the Thu Thiem New
Urban Area in District 2 with a total investment of VND12,182 billion
(US$569.4 million).
The four
roads, including an arc avenue, a lakeside road, a
Of the
twelve bridges, two will be viaducts, according to the contract.
Of the
total investment, VND8,265 billion ($386.3 million) is the cost of
construction.
The
construction of the project started on February 15, 2014 and is expected to
complete after 36 months.
According
to Nguyen Thi Huu Hoa, head of Management Board for Investment and
Construction of the Thu Thiem New Urban Area, this project will contribute to
perfecting the technical infrastructure of the area.
Upon
completion, the four roads will play a significant role in the development of
the new urban area, linking it with main traffic works in the city like
In
addition, the city authorities and the company also signed another BT
contract for building a 9-hectare central square and a 20-hectare riverside
park.
At the
signing ceremony, Vice Chairman of the People's Committee of Ho Chi Minh City
Nguyen Huu Tin said after completing the four roads and twelve bridges, the
authorities will call on other investors to invest in building other works to
improve infrastructure in the area.
Hai
Phong remains among top FDI attractive destinations
Hai
Phong city remained one of the most attractive destinations for foreign
investors with 406 valid projects valued at 9,887 million USD so far,
according to a city senior official.
The city
attracted investors from 25 countries and territories, with most projects
focusing on industry and high technology, said Vice Chairman of the municipal
People’s Committee Dan Duc Hiep.
Notably,
the city was the choice of some world giants, including Bridgestone with a
447.8 million USD factory launched in October, as well as Nipro, Pharma, Fuji
Xerox, and LG Electronics, he noted.
Currently,
Hai Phong has 19 industrial parks covering 9,716 hectares, including
Nomura-Hai Phong, Dinh Vu, VSIP Thuy Nguyen, Cat Hai and Lach Huyen, said
Hiep.
However,
he also pointed to a number of shortcomings that can hinder the FDI inflow
into the city, including a lack of professional investment promotion
campaigns, and slow implementation of projects and ground clearance, along
with poor infrastructure system and a short of skilled workforce.
In the
future, the city will focus on designing policies to support and encourage
investors, while working with domestic and foreign partners in speeding up
ground clearance and building infrastructure, focusing on industrial parks
for support industry, he said.
The
official also stressed the need to step up international economic cooperation
and expand the city’s economic space, along with broadening relations with
strategic partners, including
Will
GrabBike face same legal challenge as Uber in
People
in
But
whether the new service, dubbed GrabBike, will face the samelegal challenge
as ridesharing app Uber remains to be seen.
GrabTaxi,
developed by a Malaysia-based startup, allows passengers to find the nearest
taxi in less than a minute with just two taps on their smartphone.
All
information related to the driver and the booked taxi, including their name,
the plate number, the phone number, as well as the estimated fare, is made
known to the passengers before they get in the cab.
The
GrabBike service, officially launched on November 27, has just the same
function: it allows people to find the nearest xe om and get the full
knowledge of who is going to give them a ride, and how much they will have to
pay.
The new
feature is included in the existing GrabTaxi app.
“Users
can tap away at their smartphone to have a xe om pick them up right where
they are,” GrabTaxi said on its Facebook page.
GrabTaxi
connects passengers with cabs operated by licensed taxi firms, a key factor
that will likely keep it away from legal challenges Uber is facing in
Any
individual who has a car can apply to be an Uber driver, which Vietnamese
authorities said is against the transport law and regulations.
Drivers
are required to provide Uber with the necessary documents to drive and wait
for approval, the San Francisco-based firm says on its website.
Once
approved, they will receive a phone with the Uber app and officially become
an Uber driver, according to the website.
A deputy
transport minister asserted on Monday that the Uber service is illegal in the
Southeast Asian country.
“Any
transport activity which directly charges passengers but does not operate
through a registered transport business is against the law on road traffic
and decree on automobile transport,” Deputy Minister Nguyen Hong Truong told
reporters during a meeting in
GrabBike’s
driver policy is apparently similar to that of Uber.
“Anyone
can become a GrabBike driver, from white-collar workers to students,”
GrabTaxi said on its website.
Interested
motorbike drivers are encouraged to send their applications to GrabTaxi to
join what the company has admitted is still “a modest fleet of GrabBike
drivers.”
If
anyone can become a GrabBike driver, the situation will be the same as the
case of Uber. Vietnamese authorities are now demanding that Uber drivers be
members of licensed transport businesses.
Local
authorities have so far made no comment on the xe om booking service.
A
GrabTaxi representative told a Ho Chi Minh City-based newspaper that
Developed
by two
SOE
equitisation requires $5-10 billion
The
amount needed will also depend on the size of State capital offered for sale,
said Dominic Scriven, head of the Vietnam Business Forum's Capital Market
Working Group.
According
to Scriven, the Vietnamese stock market has not really attracted big and
long-term investment capital from foreign investors as shown in market
capitalisation that is quite small compared with other ASEAN countries.
Vietnamese
market capitalisation is just one-fifth of the
Scriven
suggested that the Government speed up the equitisation process of
State-owned enterprises (SOEs) and increase the proportion of State capital
put up for sale, at least 30 to 40 per cent of enterprise equity, to boost
market liquidity in the market.
The
working group pointed out that investors, particularly foreigners, lacked
information on State enterprises' initial public offerings, which could leave
them unprepared for such share sales.
They
proposed that the authorities make up the list of groups, corporation and
companies that would carry out IPOs, including timetables on a quarterly
basis, for investors to have enough time to study and prepare plans for
purchases.
Last
month, the Ministry of Planning and Investment reported 100 SOEs equitised in
the first 10 months of this year at a pace that Prime Minister Nguyen Tan
Dung said was slower than expected.
Dung
estimated the amount of State capital to be sold at $56.4 billion and urged
concerned agencies to accelerate this process to raise funds for development
projects and improve SOEs' corporate governance.
On the
issue of increasing foreign ownership in domestic companies, Scriven
expressed disappointment over the delay in the State Securities Commission
(SSC) plan to extend the time for lifting foreign ownership limits from 49 to
60 per cent to October 2015.
Since
the beginning of this year, the Vietnamese stock markets have attracted only
$150 million in foreign capital, which is far below the $10-billion foreign
direct investment target.
Scriven
said the current 49-per cent limit on foreign stakes in a domestic company
relegated foreign investors to the purchase of shares worth a mere $3.1 billion
or only five per cent of market capitalisation.
SSC
Chairman Vu Bang explained that the commission has proposed the plan of
raising the limit on foreign stakes to 60 per cent in businesses where
foreign investment was allowed by law, but the new regulation needed some
legal changes that required more time and preparations.
Speculation
on the easing of foreign stakes restrictions helped boost the stock market by
22 per cent last year and 13 per cent this year.
Remove
interest rate cap: experts
Banking
experts have recommended that the State Bank of Viet Nam (SBV) remove the
interest rate cap regulation as the Vietnamese banking system's liquidity was
quite abundant.
Commercial
banks have continuously adjusted their deposit interest rates down by 0.2 to
0.5 percentage points, as their liquidity was also quite abundant.
State-owned Vietcombank and Vietinbank, for example, now list one-month
deposits at 4.3 per cent and five per cent, which was much lower than the
SBV's 5.5-per cent interest rate cap.
Other
private commercial banks have stopped offering promotion programmes to
attract depositors as in previous years.
Nguyen
Thu Ha, deputy director of the SBV Monetary Policy Department, also affirmed
that credit institutions' liquidity was ensured and profuse while their
business performance was stable. The inter-bank market is also stable with
interest rates remaining low, she said.
Expert
Nguyen Tri Hieu told Dau tu Chung Khoan (Securities Investment) magazine that
the SBV should on occasion further cut the deposit interest rate by 0.5
percentage points to five per cent every year before floating the rate.
He
explained that if the inflation stayed at 4.5 per cent, the deposit interest
rate would remain positive, so depositors would still select banks over other
investment channels such as property, securities, foreign currency and gold
since these were not attractive enough.
The
country's inflation in the first nine months of 2014 stood at 2.08 per cent,
the lowest level in the past decade.
Leaders
of some joint stock commercial banks likewise confirmed that banking system
liquidity was quite profuse while many banks have directly adjusted their
rates lower than the SBV cap.
They
proposed that the SBV remove the cap and manage it using indirect instead of
direct measures such as the cap regulation.
Can Van
Luc of the Bank for Investment and Development of Viet Nam suggested that the
SBV seriously study the cap's removal, as it was obvious that the cap
currently made a modest impact on the currency market.
The time
is ripe to float the rate, Luc said, adding that the currency market was
currently stable with abundant liquidity. Administrative measures are only
temporary and should be taken only when the currency market is volatile, he
pointed out.
However,
Luc explained, the SBV should still apply a lending interest rate cap for the
Government's priority sectors such as agriculture, exports, support
industries, small and medium enterprises and hi-tech businesses. He also
urged the SBV to further speed up the restructuring of remaining ailing banks
to avoid unfair competition in attracting depositors.
SBV
calls for agriculture credit boost
The
State Bank of Viet Nam (SBV) has required commercial banks to increase their
lending to mitigate losses in agricultural production, as implementation of
the policy has remained restricted.
After
six months of implementation, lending has remained modest. Last April, the
SBV issued Circular No 13/2014/TT-NHNN to guide commercial banks in granting
loans to enterprises, co-operatives, co-operative teams, households and
individuals to help them mitigate losses in agricultural production.
Under
the regulation, borrowers will get Vietnamese dong loans to buy machinery and
equipment in the list of machinery and equipment manufactured domestically or
imported under the guidance of the Ministry of Agriculture and Rural
Development. The loans could be up to 100 per cent of the machines' total
prices.
Commercial
banks will provide loans with the lowest rate applicable in the service of
the agricultural and rural sector, with the same tenure and period. Interest
payment on loans is waived in the first two years and half of the interest
payment is waived on the third year.
Preferential
loans will also be offered to develop production and storage facilities
projects. The loans could be up to 70 per cent of project value and may last
for a maximum of 12 years.
According
to the SBV,
The 2014
ASEAN Banker Forum was held in
At the
forum, regional leading experts in the field discussed opportunities and
challenges for retail banks in
Can Van
Luc, a financial specialist from the Commercial Bank for Investment and
Development of Vietnam (BIDV), said more and more Vietnamese banks have
prioritised improving their services and risk management system based on
advanced technologies. Notably, the online banking services for individuals
are promoted, he added.
Developing
e-payment service is one of strategic solutions of retail banks, Luc
stressed.
According
to the participating experts, the e-payment service will be developed
strongly in
Nguyen
Hoang Long, Vice Director of Smartlink Card JSC, said that 32 Vietnamese
banks are currently applying mobile banking service with more than 3 million
monthly users.
According
to Ernst & Young’s Global Consumer Banking Survey 2014, 75 percent of
90-million-Vietnamese-population have no access to banking services,
reflecting a huge opportunities for retail banks in Vietnam.
The
forum was co-organised by the Vietnam Bank Association and International Data
Group IDG Vietnam.-
Investors
push for stronger administrative reforms
Investors
attending the 2014 Vietnam Business Forum (VBF) asked the host country to
continuously speed up institutional and administrative procedure reforms
along with improving the investment environment and human resources training
so as to fully support the national economy when joining new free trade
agreements.
According
to Director of the Vietnam Chamber for Commerce and Industry (VCCI) Vu Tien
Loc, poor access to the government’s plans and local administrations’
regulations failed businesses’ efforts to be fully prepared for changes
stemming from the legal system.
He
stressed the urgent need to drastically push for stronger administrative and
institutional reforms, especially the administrative apparatus, which was
echoed by an American Chamber of Commerce (AmCham) representative at the
event.
At the
forum, which took place in
A report
by the VBF Investment and Trade Working Group revealed the private sector
still meets with difficulties accessing capital sources, land and energy as
well as dealing with weak administrative system, workforce, and support
industry.
Meanwhile,
taxation, customs, transportation, land management and trade agencies are yet
to play their roles as providers of support for the sector, the report found.
According
to Head of the VBF Investment and Trade Working Group Fred Burke, to make the
private sector the backbone of the business activity in
The VCCI
leader, meanwhile, pointed out that in the coming time, businesses’ growth
will be determined by capacity and governance skills rather than their
investments.
The
Government could lend a helping hand with capital assistance for small and
medium enterprises, incentives for support industry players, and measures to
boost information technology, Loc said.
A more
competitive climate, where decisions are made quickly, administrative
procedures are simpler, and laws are enforced equally, will spur the
development of private businesses and open up new opportunities, said the
AmCham.
Participants
at the forum pointed out that in the context of international integration,
Gaurav
Gupta, Chairman of the AmCham in
A
challenge came when average expense for factory workers in
A short
of skilled technicians posed a thorny problem to
The
group proposed state agencies, businesses and training institutes coordinate
in sharing information on training programmes and recruitment needs to meet
market demand.
A survey
by the Japan International Cooperation Agency on over 100 Japanese firms
showed that 89 percent of the firms said they need technicians in the future.
In a
World Bank survey, 80 percent of employers said Vietnamese candidates for the
posts of experts and technicians lack skills required to ensure work
progress.
Vietnam
is gaining global market share, says HSBC
Vietnamese
goods made up 0.7% of global exports in 2013, representing an increase of
0.4% since 2007, according to latest report by HSBC.
In
labour intensive manufacturing, items such as footwear and apparel are
growing more rapidly, HSBC said.
The
goal, of course, is to export to richer economies, especially the
The
November HSBC manufacturing PMI index shows that new export orders are
increasing and output is expanding. Sluggish global demand is causing firms
in developed economies to find ways to cut costs, pushing even small and
medium enterprises to find cheaper alternatives.
Thanks
to a steady disbursement of FDI and cheap wages, the employment sub-index of
the PMI has grown steadily, a positive sign for a country with plenty of
workers to productively absorb into the labour force.
However,
beyond cost advantages,
Lukewarm
reception for bio-fuel E5
Petrol
dealers are facing difficulties after bio-fuel E5 was sold in seven cities
and provinces, including
Exactly
48 of 94 petrol stations in central
On the
other hand, representatives of petrol stations in
Meanwhile,
an official of the Ba Ria-Vung Tau industry and trade department said about
340 petrol stations here would provide bio-fuel E5 after selling the
remaining Mogas 92 and washing the tanks.
Numerous
private petrol stations in
To date,
three of 10 petrol dealers are selling bio-fuel products at 169 of 13,000
petrol stations throughout the country. Consumers prefer the traditional Mogas
92 and Mogas 95 fuel products over bio-fuel.
Figures
from the Ministry of Industry and Trade show that bio-fuel represents a mere
one-eighth of the consumption of traditional fuel products.
Besides,
the benefits of bio-fuel E5 have not been widely communicated, and customers
might not change their habit of purchasing traditional fuel products as
quickly as expected by petrol production and distribution enterprises and
State authorities.
Consisting
of 95% petrol and 5% ethanol, bio-fuel E5 reportedly contributes to the
reduction of environmental pollution and ensures the country's energy
security.
Seminar
boosts
With
nearly 250 million people and the increasing travel demand,
The
statement was made at a seminar on tourism cooperation between
However,
Ha Van Sieu, Vice Chairman of Vietnam National Administration of Tourism said
that cooperation in such field has been yet commensurate with the potential
and desire of the two countries due to the shortage of tourism promotion,
tourism products and the number of direct flights between Vietnam and
Indonesia.
In 2013,
about 8 million Indonesians travelled abroad, only 70 thousand of them
visited
At the
event, participants exchanged information on the needs and tastes of
Indonesian tourists and famous tourism destinations in
Future
of agriculture lies in high technology
The
future of
The
bilateral trade turnover in 2014 between
In turn,
Both
nations have been able to cooperate effectively as their trade needs are not
competitive but rather are complimentary.
A
project on planting a new variety of dragon fruits in Tien Giang and a food
safety and hygiene project in Binh Dinh province have been the most high
profile
New
Zealand’s approach has been aimed at reforming agricultural production
systems, improving the product quality and taking full advantage of limited
agricultural land to make greater profits on a per ha basis.
The
country wants to share these experiences with
For his
part, Le Quoc Doanh, Deputy Minister of Agriculture and Rural Development,
says
Several
nations with advanced agriculture have often supported
Recently
several batches of agricultural exports have been returned by foreign
markets.
Dr. Tran
Dinh Thien says
In its
future orientations,
Although
During
the dialogue, the two sides have agreed to organise annually a trade
policy dialogue forum while they are set to sign a food safety agreement next
year.
On
December 2, the Vietnamese Ministry of Finance and the German Ministry of
Economic Cooperation and Development inked a 2013-2014 finance cooperation
agreement in
Under
the agreement, the German Government will provide
It will
also grant 100 million EUR for power network improvement projects in
Deputy
Minister of Finance Truong Chi Trung said with the agreements,
As many
as 300 German businesses have been licensed for operations in
New
circular targets safer growth for banks: SBV
State
Bank of
Hong was
responding to this week's recommendations from the Viet Nam Business Forum's
(VBF) banking working group.
Last
November, the SBV issued Circular No 36/2014/TT-NHNN, regulating prudential
ratios for the operations of credit institutions and foreign bank branches.
Under
the circular, a commercial bank can hold shares in a maximum of two other
credit institutions, and its stake at each institution should not exceed five
per cent of the total equity of that institution.
The SBV
will allow higher shareholding ratios in specific cases where it designates
banks to either prop up the financial situation or support the restructuring
process of fragile organisations.
The
circular takes effect on February 1, 2015. Banks are given about 15 months to
completely adjust their holdings and ensure that stakeholder limits are met.
However,
the VBF's banking working group suggested that the SBV extend the circular's
date of effectivity, saying the deadline was too pressing for banks to prepare
for their liquidity.
Implementation
of the circular as scheduled can shock the market, as banks have to reduce
their bond issuance in such a short time to meet the new regulations, the
group noted.
It added
that an extension could also help the country develop the bond market and
avoid the experience of 2008 to 2009, when bond interest rates accelerated
from seven per cent to 21 to 25 per cent.
Hong
said the circular aimed to meet the Vietnamese Government's target of
restructuring the banking sector and help credit institutions govern risks in
accordance with international rules.
It also
aims to help secure banking operations by restricting cross-ownership
situations, earlier singled out as responsible for the fragility of the
domestic banking system in the last few years.
As for
the group's other recommendations, Hong said the SBV would review them and
make suitable adjustments to further create a healthy business environment
and ensure the banking system's safety.
She
added that the SBV would continue discussions with the working group
regarding their recommendations on some regulations such as financial
companies' consumer lending and the draft circular on money laundering that
the SBV would be issuing soon.
The SBV
has agreed with the group's recommendations on developing the capital market
and granting capital to small and medium enterprises, Hong pointed out.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Năm, 4 tháng 12, 2014
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