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BUSINESS IN BRIEF 26/9
Trade
indicators rise after WTO access
Specifically,
WTO figures showed that
However,
in 2012, the country's export turnover ranking climbed to 37th among
countries and territories around the world, while its import turnover jumped
by 9 rankings to 34th place.
The
General Department of Customs reported that
After
six years as a WTO member,
Monetary
policy for 2011-2013 period
The
Government has pursued a cautious but flexible monetary policy over the past
three years against the background that the global economy was recovering
slowly and domestic inflation soared to 13.29% in the first half of 2011.
The
policy aims to stabilize macro-economy, control inflation, ensure the safety
of banking system, and maintain credit growth under 20%. Credits have been
mainly steered to production.
Accordingly,
by the end of 2011, total means of payment and credit grew 10% and 12%,
respectively and interest rates were regulated in accordance with
macro-economic developments.
Enhanced
supervision, inspection and strict handling of violations regarding deposit
rates helped pull down lending rates, for example, by 0.5-15 to 14.5% or even
13.5% for loans for agricultural production and exports.
The
GDP expanded 5.89% while inflation dipped from 22% in October to 20% in
November and 18.13% in December.
From
the start of 2012, the State Bank of
By
the end of 2012, mobilizing rate decreased by 3-6% and lending rate fell by
5-9% against the previous year’s data. Total means of payment and credit
respectively expanded around 20% and 9%, in line with the target of keeping
inflation under 6.8%.
The
above results pushed the central bank to continue with its monetary policy in
favor of production and market.
Key
interest rates have gradually lowered to ease difficulties against
businesses. Both deposit and lending rates decreased within the band of 2-5%,
back to the levels of the 2005-2006 period.
This
year, deposit rate has dropped to 7% and the cap on lending rate for five
priority areas has fallen to 9%. In the first eight months, credit grew 6.45%
in comparison to that at the start of the year, making it possible to realize
the whole-year credit growth of 12%.
In
short, interest rates decreased sharply since 2011 and credit growth became
more stable over the reviewed period.
Public
investment to be tightened
The
National Assembly Standing Committee (NASC) requires that the draft law on
public investment need to support investment restructuring process,
strengthen disciplines and resolve management weaknesses on the field.
The
NASC on September 23 in Ha Noi debated on the bill during its 21st session.
Due to
the lack of synchronous policy system, numerous shortcomings in public
investment have arisen including scattered investments and capital
allocation, prolonged implementation, inefficiency and wastefulness, causing
pressure on budget at all levels.
The
NASC suggested the draft law composers should review relevant laws on State
budget, investment, construction, bidding law, and land.
The
draft law's adjusted scope focuses on regulating the whole process of managing
and using public investment sources from the State budget, Government bonds,
local bonds, official development assistance capital sources and preferential
loans and development investment credits.
Once
coming into operation, the law would help to minimize scattered and prolonged
capital allocation, Vinh said, adding that under the law, projects without
capital would not be allowed to be implemented.
The
same day, the NA Standing Committee wrapped up its 21st session during which
it prepared the agenda for the 6th working session of the National Assembly
next month - the last sitting of 2013.
NA
Chairman Nguyen Sinh Hung asked relevant agencies to work closely to finalize
documents and reports scheduled to be submitted in time for the upcoming
session.
Capital
manages prices to stem inflation
The
capital would strengthen price management to ensure price stability and curb
inflation in the latter months of this year and the forthcoming Lunar New
Year, according to a directive issued recently by the municipal People's
Committee.
The
city would closely monitor prices of essential goods and services such as
food, sugar, medicine, petroleum, gas, fertiliser and travel services, and
stop unreasonable price hikes.
Drug
plan benefits VN firms
Local
pharmaceutical producers will have a chance to expand their market share in
Deputy
director Pham Khanh Phong of the city's Health Department said that
consumption of locally produced medicines has greatly increased in the city's
market.
"The
city's health sector will continue to mobilise more pharmaceutical companies
and pharmacies to join and expand the programme by providing a wider range of
pharmaceuticals to the city, especially the outskirts and remote
districts," said Lan.
City
statistics show that locally manufactured drugs, especially those drugs
already in the programme aimed at stabilising prices for essential
pharmaceutical products, are increasingly being used for clinical treatment
month by month.
Around
13 pharmaceutical companies have joined the programme, providing 392 products
from 21 drug categories, which accounts for 50 per cent of the city's demand
for essentially needed drugs.
Retail
drug distribution networks have increased six fold, from 400 to 2,336 stores,
including 1,686 private stores, 107 hospitals and 543 pharmaceutical
companies, and account for 55 per cent of the city's retail sales.
Locally
produced drugs are between 5-10 per cent cheaper than other similar drug
brands on the market, which accounts for the 20 per cent increase in output
for companies involved in the programme.
The
Deputy Director of the Phu Yen Pharmaceutical Company (Pymepharco), Nguyen
Huu Nien, told Nhan Dan (The People) newspaper that the company's drugs that
are part of the price stabilisation list have seen increased usage, between
10-20 per cent in the city's hospitals and between 20-30 per cent in district
hospitals.
The
programme, encouraging Vietnamese to use locally manufactured drugs, was
created to inform the public and doctors about the availability of locally
produced pharmaceuticals.
The
programme was supported by many hospitals, where doctors were encouraged to
fill prescription with locally produced drugs for patients with general
diseases in an effort to promote the use of drugs manufactured locally, Lan
said.
The
Ministry of Health launched the programme in March. The programme aims to
increase the use of home made drugs in medical treatment to 60 per cent of
the country's demand by 2015.
In
order to achieve the programme's goal, all pharmaceutical and trading
companies will need to meet the Good Manufacture Practice (GMP), Good Store
Practice (GSP) and Good Laboratory Practice (GLP) standards by 2015.
These
requirements aim to encourage and create favourable conditions for local drug
companies to improve the quality of their products and improve competition
within the local market.
Can
Tho to call off three delayed projects
Can
Tho City authorities are set to pull the plug on three projects that have
been delayed for long because of their investors' financial shortcomings.
They
are the five-star Cai Khe Resort - Hotel project, Con Khuong Eco-tourism
Park, an office building at 102 Cach Mang Thang Tam Street, an official from
the Department of Planning and Investment told a meeting held on last Friday.
Deputy
Chairman of the Cai Rang District People's Committee Le Thanh Tam urged the
city administration to take "tougher measures" against projects
whose investors have sought several ways for extensions.
Construction
Company No 10 has delayed its Tay Do Cutural Park in Cai Rang District four
times and has yet to complete clearance of 2,000sq.m of land for the work, he
said.
Local residents
have also voiced unhappiness about the long delay.
Le
Hung Dung, Deputy Chairman of the city People's Committee, said delayed
projects that have a large impact on people's lives ought to be scrapped.
ACE
Life unveils new universal life product
ACE
Life Insurance Company Ltd on Monday launched a new universal life product
called Premier Universal Life 2013.
In
addition to the basic benefits available in the main plan, customers can also
select supplementary benefits like hospitalisation and disability coverage
and extra payment for accidental death abroad.
A
universal life policy, unlike a term life policy, provides coverage for the
whole life of the customer as well as building cash values.
Slow
reforms drag bank-risk profiles
A new
report by Fitch Ratings says that the major Vietnamese banks' risk profiles
will remain vulnerable in view of the country's below-par economic
performance, high asset-quality risks, poor transparency and slow pace of
banking restructuring, alongside persistent global headwinds.
Stable
macro-policies since early 2011 have led to lower volatility in interest
rates, exchange rates and inflation. But sustaining a broadly steady backdrop
raises the chances of a banking recovery. However, State-led reforms have
been slow, in part because authorities probably fear exacerbating problems in
a fragile economy.
Fitch
forecasts
Efforts
to spur domestic demand have not been effective as banks and borrowers are
wary of an uncertain operating environment. Reported loan growth was just 6
per for this year to August.
The
agency expects any recovery in the banking system to be gradual, depending on
the pace and effectiveness of reforms and regulatory discipline.
The
Viet Nam Asset Management Company (VAMC) may not tackle many of the
asset-quality issues in the near term because some aspects of its operations
are still unclear and regulatory rules to improve asset-quality data
transparency have been delayed until June 2014.
Banking
consolidation and reform of State-owned enterprises are likely to progress
slowly in the medium term.
Vague
non-performing loan (NPL) transparency and tough economic conditions still
pose impairment risks to major banks. VAMC can remove bad debt from banks,
but not losses.
A
"true" level of the NPL ratio, which Fitch estimates at 15 per cent
relative to the officially-reported 3-4 per cent, and an 80 per cent loss
rate, would cut core tier 1 capital adequacy ratio (CAR) of large lenders to
about 1 per cent from the reported 10 per cent by June.
This,
together with pressure on banks' asset quality and profit generation,
underlines the need for fresh capital, which Fitch believes will be hard to
acquire, especially for small and medium-sized banks.
Restrictive
foreign ownership laws are deterring foreign investment, while there may not
be much investor appetite locally because of the uncertain domestic economy.
Downside
rating risks could arise if the operating environment becomes even more
challenging and threatens banks' solvency, a loss in depositors' confidence
occurs, and/or if there is a negative rating action on the country.
Fitch
says the outlook is stable, however, as the banks' ratings is in the single
‘B' category in light of the Vietnamese sovereign's stable outlook.
Developers
can change commercial housing projects to social housing or reduce the size
of apartments once they build infrastructure, the
Speaking
at a meeting held on Monday to discuss the issue, Nguyen Huu Tin, deputy
chairman of the HCM City People's Committee, said the changes are permitted to
help thaw the property market, but they must dovetail with the city's zoning
plans.
Under
Government Resolution 2, developers will also be reimbursed the money they
paid for land-use rights if they change their projects to social housing.
The
city Department of Construction said any reduction in the size of apartments
must still ensure they measure at least 45sq.m.
District
authorities said the changes should be considered on a case-by-case basis to
ensure there is no mass change that would impact infrastructure.
Huynh
Thanh Khiet, deputy chairman of the District 2 People's Committee, said his
district has studied the issue in recent years and found that if the
population increases 1.5-fold, infrastructure has to increase 1.2-1.6 times
to keep pace.
He
said before allowing a developer to make the change, authorities should
consider if local infrastructure is adequate.
The
Department of Transport urged the People's Committee not to allow any changes
in the city's 930ha central area that has been zoned for space and
landscapes.
Developers
expressed concern that the city has been slow in permitting changes, which
has affected them.
The
resolution is only effective until the end of 2014 and so their need is very
urgent, the city Real Estate Association said in the developers' support.
It
exhorted the People's Committee to allow developers who meet the conditions
set under the resolution to make changes to their projects soon.
Tin
ordered the Department of Construction to submit to the People's Committee a
list of any additional criteria for granting permission for the change.
Priority
would be given to housing projects in outlying areas, he said.
The
Department of Construction has recommended approval for six projects to
downsize apartments.
It has
also submitted a list of three commercial housing projects whose developers
want to make the switch to social housing.
VN
set for landmark merger
Military
Bank Securities will seek approval for its merger with another securities
firm, VITS, from its shareholders at a meeting on Thursday.
VITS
shareholders have already given approval.
If the
merger goes through, it will be the first between two securities firms in
According
to MBS vice chairwoman Cao Thi Thuy Nga, the merger is a step in the process
of restructuring her company to maximise its advantages.
"The
MBS executive board has decided on the VITS deal based on the desire of both
companies," Nga, who is also deputy general director of Military Bank,
said.
Others
factors include the low financial risk of VITS and its small, neat
operational model, which would make the integration easier, she said.
While
MBS is an affiliate of the Military Bank, VITS is a member of the diverse VIT
group whose activities include property, financial investment, and
communications.
MB
Bank, the biggest shareholder in MBS with a 65 per cent stake, has decided to
convert into equity convertible bonds worth VND600 billion (US$28.38 million)
issued by the latter to increase its ownership to 75 per cent.
Nga
also said if her company's shareholders approve the merger, the new company
would be called MBS.
Meanwhile,
its recent acquisition of Western Bank served PetroVietnam Finance Company's
goal of becoming a commercial bank.
PVFC
could have applied to the State Bank of
The
preparations for the merger began last year, with several PVFC executives
moving into high positions at Western Bank and jointly working on the merger
plan.
Both
companies had high bad debt rates – 4.5 per cent for PVFC and 6.84 per cent
for Western Bank – last year.
But
Western Bank's debts are mostly backed by assets and borrowers have promised
repayment.
The
combined bad-debt rate is expected to be 4.2 per cent by the end of this
year.
Nguyen
Dinh Lam, chairman of PWcombank, the new entity, said [unlike PVFC] the new
bank could offer payment services.
It has
the advantage of being part of the giant PetroVietnam group of companies and
their massive financial transactions, and Lam said even a piece of this cake
would be enough for the bank's survival.
John
Ditty, chairman of auditing and consulting firm KPMG Viet Nam&Cambodia,
said the first thing to do in a mergers and acquisitions deal is finding the
right target and the factors to look for in a target include management
quality, similar strategic vision, and strong growth potential.
Kenneth
Atkinson, managing partner of Grant Thornton Viet
Vietcombank
recognised by regional magazine
Vietcombank
has been awarded the Strongest Bank Balance Sheet Recognition 2013 award by
Asian Banker Magazine.
The
award takes into account development scale, balance sheet, risk, business
quality, and liquidity.
Earlier
this month, Vietcombank was named best bank in
Local
IT firms look to promote their products
A
technology and equipment fair will take place in Ha Noi from September 26-29,
giving promising firms the ideal platform to promote their products.
Over 260
domestic and international businesses have registered to showcase their
products and services at Techmart already, according to the event organiser,
the municipal Department of Science and Technology.
The
fair is expected to showcase license plate recognition software and smart
house systems as well as energy saving equipment designed to promote healthy
living.
French
IT businesses seek opportunities in Viet Nam
A
delegation of French companies will visit
Ubifrance
said the two-day trip aimed to promote relations between the two countries'
information, communication, and technology (ICT) businesses.
Vegetable,
fruit exports soar towards goal
Exports
of vegetables and fruits for the year up to September 15 shot up by 46.7 per
cent year-on-year to US$724 million, according to the customs department.
The
Viet Nam Fruit Association (Vinafruit) suggested that
September
trade deficit estimated to hit $300m
The
country is estimated to run a trade deficit of US$300 million in September,
according to the General Statistics Office (GSO).
Including
the September estimate, the country ran a trade deficit of $124 million in the
first nine months. In detail, it earned $96.46 billion from exports, up 15.7
per cent against the same period last year, while spending $96.59 billion for
imports, up 15.5 per cent.
The
office reported that 15 staples gained more than $1 billion in export value.
The
major import products were components, equipment and petrol for production.
The
General Department of Customs has not yet released the first nine months'
import-export figures, which will likely differ from the GSO's. Last month,
the GSO estimated that the country ran a trade deficit of $300 million, but
customs figures showed that the country actually had a trade surplus of $600
million.
The
Customs department has only reported the import-export value for the first
half of September. According to the department, the country ran a trade
deficit of $374 million on monthly export earnings of $4.92 billion and
imports spending of $5.32 billion.
The
capital city was estimated to run a trade deficit of $1.16 billion in
September, according to the municipal statistics office.
The
capital exported $801 million worth of goods this month, decreasing 1.2 per
cent month-on-month. It spent $1.96 billion to import goods, an increase of
2.8 per cent.
In the
first nine months, the capital reaped $7.405 billion from exports, down 1.5
per cent from the same period last year. It imported $17.230 billion worth of
goods, down 3.5 per cent year-on-year, resulting in a trade deficit of $9.825
billion.
The
capital's export staples in the first nine months of the year were computer
components and peripherals, which earned $1.407 billion, down 1.5 per cent
year-on-year; garments and textiles with $895 million, up 14.3 per cent;
agricultural products with $789 million, down 4.7 per cent and petroleum with
$661 million, down 36.9 per cent.
The
city mainly imported petroleum for $4.229 billion, down 17.9 per
year-on-year; equipment, machinery, tools and spare parts for $3.842 billion,
down 1.3 per cent and steel for $894 million, up 14.2 per cent.
Consumers
choose the cheaper option
Online
shopping websites and mini-supermarkets offering inexpensive products have
become popular with consumers, Lao Dong (the Labour) newspaper reported
yesterday.
Because
of the sluggish economy, customers have tightened their budgets and have seen
luxury brands as less indispensable.
In Ha
Noi, many essential commodities such as fish sauce and detergent are sold
VND5,000-15,000 cheaper online and in mini-marts than in big supermarkets.
The customers enjoy even more discounts if they buy a large volume.
At big
supermarkets in Ha Noi such as Minh Hoa, Intimex and Fivimart, pressures from
rental prices, labour costs and many other expenses have caused prices to
increase, more than in mini-supermarkets and small grocery stores.
For
household appliances, consumers have been buying online more frequently.
Hoang
Thinh, a customer from District 3, said that he bought a new camera in a
retail shop in District 1's
He
said the prices were more competitive online, sometimes hundreds of thousands
of dong cheaper than similar ones in supermarkets.
Nguyen
Minh Thu, deputy general director of Thien Hoa Furniture and Electronics
Centre, said that online sellers have less to worry about than
brick-and-mortar shops because they do not have to pay rentals, salaries for
many salespeople and electricity fees.
Thu
said, however, that consumers should only buy from reputable online sites.
Many
shopping centres and supermarkets in
Diamond,
Vincom, Parkson and
Likewise,
Vincom,
Most
major brands are offering deep discounts of 50-70 per cent and even those
have attracted few buyers.
One
customer, Trieu Thi Van of Ha Dong District, said she had often bought
clothing from the Mango and Bonia brands but was now purchasing quality
made-in-Viet
According
to a small shop, Minh Trang in
However,
at small shops they sell for VND150,000-200,000 each. The products include
samples and redundant items or those that have been in storage for at least
two years.
Big
electronics and household appliance centres are also falling into a
"crisis" situation, including Nguyen Kim, Vien Thong A, Cho Lon,
and
Many
household appliance centres have reduced their inventory or have moved to
suburban areas to cut down on expenses.
For
instance, Nguyen Kim and Media Mart Electronics centres in Ha Noi had to look
to open a branch in Ha Dong District instead of Hoan Kiem District in the
city centre.
In
addition, nearly 15,000sq.m in
MoIT
acts to protect local produce
Domestic
enterprises should join forces to apply trade defence measures, according to
Dinh Thi My Loan, chairwoman of the Advisory Council on International Trade
Remedies under the Viet Nam Chamber of Commerce and Industry.
The
Ministry of Industry and Trade imposed a 5 per cent anti-dumping tax on
imported vegetable oil, including refined soya and palm oil on September 7 in
a pioneering move to protect local producers from unhealthy competition from
imported products.
According
to the director of the Ministry's Competition Authority, Bach Van Mung, the
ministry's decision on imported vegetable oil followed an investigation which
found that imports were damaging domestic producers in market share, output,
profits and labour.
A
representative from BigC Supermarket said that the impact of the import tax
on vegetable oil would not be huge because domestic production could meet
most local demand.
Experts
said that Vietnamese enterprises needed to prepare carefully for potential
trade lawsuits that could have negative impacts on Vietnamese enterprises.
The
Viet Nam Competition Authority is also examining a proposal from domestic
steel producers to apply anti-dumping tax on stainless steel products
imported from
Gold
prices continue on downward trend
Domestic
gold prices continued to fall in the opening transactions of the week, in
line with declining world gold prices.
Buying
and selling prices of SJC gold bars at 5pm yesterday were VND37.42/VND37.62
million per tael (US$1,770/1,779), losing approximately 0.18 per cent against
the weekend or 1.78 per cent against the pick of VND38.1 million ($1,802)
last Thursday.
Spot
world gold fell nearly 1 per cent earlier in the session but the price
bounded back to $1,325.71 per ounce (or $1,590.05 per tael), slightly up 0.05
per cent against Friday's session.
One
tael is equivalent to 1.2 ounces.
One US
dollar yesterday remained unchanged at VND21,140.
In
order to sustain supply and demand and keep local gold prices in harmony with
the world price, the State Bank of
However,
the disparity between the domestic and local rate remains high, around VND3
million ($141) per tael.
In a
report released yesterday, the National Assembly Economics Committee warned
that if the disparity persists, gold jewellery smuggling might increase, as
gold is seen as safe in the current context of economic difficulties.
Shrimp
exporters expect bright future
Shrimp
exporters in
After
Tran
Van Linh General Director of Thuan Phuoc Commercial and Fisheries JSC, called
the lawsuit a "miracle".
Despite
current domestic economic difficulties, shrimp exports remain competitive in
the world market, increasing 70 per cent in the first eight months of 2013
and reaching US$1.7 billion in turnover.
The
Without
the anti-dumping and the anti-subsidy taxes, Vietnamese enterprises hope to
find more opportunities to develop their market in the
Pham
Hoang Viet, Deputy General Director of Sao Ta Foodstuff JSC, told local press
that now was an extremely good opportunity for Vietnamese shrimp exporters,
as other major exporters such as
This
would decrease the supply from those countries and therefore push up the
price, Viet said. US importers would find
However,
local exporters remain preoccupied with two big problems: shrimp disease and
Chinese traders who try to buy all the shrimp, increasing the price in the
local market.
Pham
Hai Long, General Director of Saigon Agrex Foodstuff Corporation, said the
company could not buy any shrimp from farmers, as they had sold their whole
supply to Chinese traders, forcing him to turn down export contracts.
To
make the products more competitive, local exporters should carefully check
the quality of the shrimp and control diseases, he said.
Additionally,
it was necessary to create tax and capital incentives to boost both
production and consumption in a sustainable way and deal strictly with
traders who intentionally interfered with the market.
The
Viet Nam Association of Seafood Exporters and Producers (VASEP) has asked the
authorities to develop a sustainable production model and address the problem
of bad traders, according to Truong Dinh Hoe, the association's general
secretary.
Local
banks offload bad debt to VAMC
The
Viet Nam Assets Management Company (VAMC) will issue bonds worth VND10
trillion (US$476.1 million) to buy bad debts from Navibank, Sacombank,
Agribank and SHB this year.
They
are the first banks to sell bad debts to VAMC since the company was set up in
July.
The
plan will be divided into two phases, the first of which will be from
September 21 to October 30 using bonds worth VND10 trillion. The second will
be from November 1 to the end of this year with bonds worth of VND20-25 trillion
($952.4-1.2 billion).
According
to a VAMC official, the plan was approved by the State Bank of Viet Nam (SBV)
last week.
The
VAMC leader said the company's operating regulations have been completed and
will be issued in the next few days.
VAMC
leaders last week worked with a number of joint stock banks and the SBV in
the southern region to carry out the SBV's circulars on buying and selling
bad debt and refinancing loan of the price of bonds issued by VAMC. They also
exchanged to solve difficulties of the banks.
Macro
economy not yet stable
The
international workshop was jointly held by the Party Central Committee's
Economic Commission, the National Assembly Economic Committee, the
Speaking
at the event, Phuc said
He
also noted that macroeconomic stabilisation had yet to be firmly retained.
Phuc
also warned that many of the country's important goals could overshoot their
deadlines. Although people's living standards, especially in remote and rural
areas, have improved significantly, urban crime and social conflicts in rural
areas have become increasingly pressing issues.
The
head of the Party Central Committee's Economic Commission, Vuong Dinh Hue,
described 2013 as an important year for
Scholars,
managers and international experts at the workshop also proposed measures for
the implementation of fiscal and monetary policies to fulfill the target of
mobilising social investment - which makes up over 30 per cent of the
country's GDP - in the next two years.
They
also discussed ways to speed up the perfection of the socialism-oriented
economy, tackle structural bottlenecks hindering the growth recovery,
infrastructure development and effective use of human capital.
Integration
poses socio-economic challenges
Deputy
Minister of Industry and Trade Nguyen Cam Tu told a seminar yesterday, citing
recent successes as an indication that this was the way to move forward.
After
The
four-year programme, which helped implement 48 projects, strengthened the
institutions of the market economy, helped address the social and economic
consequences of integration for the rural sector, supported capacity for
management and co-ordination of integration as well as supporting
implementation of Provincial Action Plan activities.
Deputy
minister Tu said the integration process had brought both benefits and
challenges to the country's socio-economic development.
Central
Institute for Economic Management deputy director Vo Tri Thanh said that
accession to WTO demonstrated the close ties between internal reform and the
international integration process, as only internal reform could offer
conditions for the country to seize the opportunities and minimise the risks
posed by integration. These include risks to production, consumers and macro
economy.
"Now
is the time for Viet Nam to push through new reforms as many Doi moi
(Renewal) policies launched 27 years ago are "out of control" and
failing to adapt to the current situation," he said, adding that the
economy faced problems including its structure, its vulnerability to internal
and external shocks, caused both by social and environmental factors.
The
new push should target three main pillars: economic restructuring,
comprehensive integration and closer links between economic reform and
political reform, he said.
Vice
head of International Relations under the Government Office Nguyen Thanh Hung
said to boost international economic integration, the country aimed to
strengthen public-private collaboration, manage negotiations and implement
co-operation agreements, as well as facilitate international trade.
These
required preparation of human, financial and time resources plus greater
engagement from businesses and civil society.
"In
the very first stage of negotiations for free trade agreements or other
tie-ups, the Government needs to help businesses access information so that
they can adapt and keep pace with market moves," he said.
Le
Thanh Ha from the Viet Nam Chamber of Commerce and Industry's Legal Affairs
Department said poor capacity and the lack of access to international trade
policies were the main difficulties for Vietnamese businesses.
Director
of Ha Noi National University's Centre for Economics and Policy Research
Nguyen Duc Thanh said
Australian
Ambassador to Viet Nam Hugh Borrowman said challenges ahead for
Fitch:
Vietnamese banks to become stable in 2014
Fitch
Ratings forecast that the Vietnamese banking system would be stable in 2014.
In its
report titled "2014 Outlook: Vietnamese Banks”, the global rating agency
reported that major Vietnamese banks' risk profiles will remain vulnerable in
view of the country's below-par economic performance, high asset-quality
risks, poor transparency and slow pace of banking restructuring, alongside
persistent global headwinds.
Stable
macro policies since early 2011 have led to lower volatility in interest
rates, exchange rates, and inflation. Sustaining a broadly steady backdrop
raises the chances of a banking-sector recovery. However, state-led reforms
have been slow; in part because the authorities probably fear exacerbating
problems in an already fragile economy.
The
Outlook is Stable, however, because the banks' ratings in the single 'B'
category already factor in such vulnerabilities, and in light of the
Vietnamese sovereign's Stable Outlook.
Fitch
forecasts
Fitch
expects any recovery in the banking system to be gradual, depending on the
pace and effectiveness of reforms, and regulatory discipline.
Four
firms in
The
HCM City People’s Committee has instructed municipal inspectors to conduct a
thorough inspection of four public-service companies whose leaders were found
to have embezzled employees' salaries.
Four
public-service companies whose leaders were found to have embezzled
employees' salaries to face thorough inspection
The
results of the recent inspection showed that at HCM City Urban Drainage
Company, Public Lighting Company, Saigon Traffic Construction Company and the
Green Park Company, the average wage was VND22.2 million per month (USD1,000)
while the figure at other state companies was only VND7.3 million. Leaders of
these four state-owned public-service firms in
The
comprehensive inspection will target all these companies’ activities,
particularly the use of finance, employees and assets. Any violation will be
seriously dealt with.
The
companies are also requested to return more than VND6 billion (USD28,571) to
the state budget for incorrect salaries and bonus payments in 2011. The
returned amount will be used to compensate the firm’s employees who were
unfairly treated.
The
municipal committee has urged management agencies to judge how much
responsibility be attributed to the HCM City Department of Finance and the
Department of Labour, Invalids and Social Affair for the salary problems at
these companies which have evidently existed for many years, but were only
brought to light very recently.
Earlier,
Government
resolution requests deposit from FDI companies
Prime
Minister Nguyen Tan Dung has signed a resolution which includes a regulation
requesting foreign direct investment (FDI) firms to make a deposit in order
to help prevent a, by now, common situation in which owners of FDI firms flee
the country, leaving behind whatever facilities they have and abandoning
their employees.
By the
end of June this year,
However,
due to legal loopholes, a number of FDI companies still use backward technology,
causing environmental pollution, plus many have used transfer pricing to
avoid taxes, causing the state budget heavy losses.
Recently,
owners of many FDI projects have fled, leaving their employees behind.
According to the Ministry of Planning and Investment, as of late May this
year, as many as 518 FDI company owners had run away. For the most part these
companies are from
Under
the recently-signed resolution, licensing agencies have to pay attention to
all large-scale projects with potentially big socio-economic impact for their
investors’ capital mobilising ability and especially a sanction that makes a
deposit necessary to ensure that the project is implemented on schedule.
However,
the deposit regulation has drawn some concerns that this will be a
disadvantage for
The
government resolution also mentions measures to clarify the legal situation
in this area as well as to create investment policies in a uniform manner in
order to forecast correctly and provide transparency for investors.
Speaking
with a DTiNews reporter, the Minister and Chairman of the Government Office,
Vu Duc Dam, said not only FDI companies but also local ones have seen the
“absence of investor” syndrome. Last year, the government was
instructed to help firms of this kind find other jobs.
To
tackle the flight of owners from FDI projects, the government has assigned
the Ministry of Planning and Investment to revise the Investment Law of 2005.
During the revision process, agencies, ministries and localities are urged to
keep a close eye on every FDI enterprise in order to protect the rights of
the employees of these companies.
Farmers
in
Farmers
in the Mekong Delta have harvested hundreds of thousands of hectares of
autumn-winter rice crop, through harsh weather conditions, but still have to
face severe losses.
Since
the beginning of the year, the country has sold around 4.8 million tons of
rice touching revenue of more than US$2 billion. Nevertheless, the quantity
of rice in stockpile still remains high.
Pham
Hoang Liet, a farmer in Tan Hoa Commune in Chau Thanh District in the Mekong
delta province of Hau Giang complained that farmers face many high overhead
costs other than the cost of hiring labor at VND4,000,000 (US$190) per
hectare.
Thus,
they spend an average of VND700,000 (US$33) but are still unsure of sales as
most traders only buy rice harvested by combines.
As per
a decision made by the government and the Ministry of Agriculture and Rural
Development to support farmers who have large paddy fields, warehouse for
stockpiling will be given free of charge and farmers will also enjoy
exemption of land use tax.
The
Ministry has promised to adopt policies to bring traders and farmers closer,
to help increase farmers’ incomes.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Tư, 25 tháng 9, 2013
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