Vietnamese banks urged to use latest IT

Domestic commercial banks need to give top investment priority to information technology if they want to develop better retail banking strategies, according to independent market watchdogs. Analysts said that most commercial banks in the country have implemented strategies to develop retail banking but they need to create an adequate technological infrastructure to reduce risks. Senior banking expert Dr. Can Van Luc said by 2020 most commercial banks would still distribute their products and services through branches and transaction offices. Photo for illustration: "To ensure the effectiveness of these facilities, the banks should restructure and allocate them in a more proper way," Luc told Dau Tu Chung Khoan newspaper. "Strong technology development has encouraged people to use modern devices such as mobile phones, the internet and social websites to access financial and banking services. So, investing in information technology is necessary for the banks to … [Read more...]

PM Dung wants economic restructuring on fast track

The Saigon Times Daily Prime Minister Nguyen Tan Dung gestures at a regular cabinet meeting in Hanoi last week - PHOTO: CHINHPHU.VN Speaking at a monthly cabinet meeting in Hanoi last Friday, the Government leader urged fast but efficient economic restructuring with one of the priorities given to the equitization of State-owned enterprises (SOEs), according to the Government’s portal "SOE restructuring should be fastened," Dung said. He called for ministries to consider selling SOEs in the fields which private firms can do better to raise funds for important projects, particularly in infrastructure development, to fuel growth. The Prime Minister made the urge after a report of the Government Office showed many ministries, agencies and localities have failed to realize equitization and restructuring targets for SOEs under their management. The report conveying instructions of Deputy Prime Minister Vu Van Ninh at a recent web conference on SOE … [Read more...]

Banks urged to use latest IT

DongA Bank plans to launch 150 Auto Banking zones, which help customers enjoy all the bank's services, by the end of 2015. — VNA/VNS Photo Hoang Hai HCM CITY (VNS) — Domestic commercial banks need to give top investment priority to information technology if they want to develop better retail banking strategies, according to independent market watchdogs. Analysts said that most commercial banks in the country have implemented strategies to develop retail banking but they need to create an adequate technological infrastructure to reduce risks. Senior banking expert Dr. Can Van Luc said by 2020 most commercial banks would still distribute their products and services through branches and transaction offices. "To ensure the effectiveness of these facilities, the banks should restructure and allocate them in a more proper way," Luc told Dau Tu Chung Khoan newspaper. "Strong technology development has encouraged people to use modern devices such as mobile phones, the … [Read more...]

New-style cooperatives play key role in agricultural restructuring

President of the Vietnam Fatherland Front Central Committee Nguyen Thien Nhan has described new-style cooperatives as the most important player in agricultural restructuring. The front leader was speaking at the 12th conference of the Vietnam Cooperative Alliance (VCA) Executive Committee in Hanoi on November 26. He elaborated on agricultural restructuring which looks towards large-scale production with key products, varieties of high quality and productivity, modern cultivating process in combination with processing, consumption and export. Praising the VCA’s role and contributions to the country’s socio-economic development and stability, Nhan urged the alliance to complete a roadmap for the implementation of the new-style cooperative model. The alliance must join hands with the Ministry of Agriculture and Rural Development, the State Bank of Vietnam, the Ministry of Finance and localities to speed up the work with an aim of having at least a cooperative in … [Read more...]

TPP, a boost for Vietnam’s agricultural restructuring

(VOVworld) - The Trans-Pacific partnership agreement offers a major opportunity and challenge for Vietnam’s agriculture exports. But currently seafood and rice exports are underperforming expectations. To prepare for TPP membership, Vietnam is restructuring its agriculture but domestic enterprises will have to fully understand the trade deal to maximize its opportunities. Application of advanced technologies and mechanization should be promoted in agricultural production. Each year, the Hung Hau agriculture company in Ho Chi Minh City’s Tan Phu district earns about 17 million USD from exporting aquatic products to the US, Europe, and Japan. Hung Hau’s director general Tu Thanh Phung said that they "are improving the production process and capacity, renovating technologies, and expanding material input supply sources to be able to trace back the origin of products and meet TPP origin rules." Growing orchids in rice fields is a way of crop restructuring has … [Read more...]

Are Vietnamese bank shares too expensive or dirt cheap?

VietNamNet Bridge - While foreign finance institutions believe that Vietnamese bank shares prices are the most expensive in frontier markets, Vietnamese shareholders are distressed that bank share prices have not increased as expected. Bloomberg has reported that the share prices of three of Vietnam’s largest banks have increased by 62 percent so far this year. The newswire reported that BIDV bank shares have been offering the best price in the stock market. The bank’s bad debt ratio is now just 1/6 of that of three years ago, while the bank has pushed up lending to fund real estate purchases. BIDV shares of the bank, which has the second biggest capitalization value in the market, has increased by 90 percent so far this year. Meanwhile, Vietcombank share price has increased by 50 percent and VietinBank by 47 percent. The P/E (price on earning) index of BIDV is 12.3, while it is 25.2 for Vietcombank and 13.2 for VietinBank. Commenting about the P/E index, a … [Read more...]

SBV needs state money to deal with weak finance institutions

VietNamNet Bridge - The bank restructuring process has been going on for four years, but the proposals on tax incentives for banks are still pending. The government’s newly released report shows that the support of credit institutions will be connected with the state budget. The State Bank of Vietnam (SBV) has suggested giving some preferences to four groups of banks which will undergo restructuring. The first group comprises banks which will need policies on financial support, including corporate income tax reduction and finance leasing asset assignment tax exemption. The banks may be allowed to pay compulsory reserves in government or local authorities bonds and to borrow money at especially preferential interest rates. The second group comprises banks which need technical support. They will need specific technical support package and training courses to improve capability for key personnel. The third one comprises banks which SBV may consider easing some requirements … [Read more...]

Bad Debts Hinder Profit

Bad debt reduction has helped banks release risk management funds and credit growth has grown over 17 percent, making profit figures of the banks positive. However, the bad debts have not been resolved and debt classification is more stringent, which hinders the banks' profit growth. Positive earnings At the end of quarter II, 2015, a series of commercial banks in Vietnam announced trillions of Vietnam dong in profits. Most impressively, VND5,535 billion of interests of Bank for Investment and Development of Vietnam (BIDV) in the first 9 months had grown nearly 25 percent over the same period last year. Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) has announced VND4,528 billion in profits before tax after 9 months. Asia Commercial Bank (ACB) has reached more than VND1,029 billion in profits before tax after risk provisioning. The Military Bank also has impressive profit figures. In the first 9 months of this year, the MB reached VND2,400 billion in profits … [Read more...]

Shaping the key economic sectors

The Hanoitimes - After 20 years of construction and development, Hanoi has 8 industrial parks (IPs) with area of 1.236ha, the occupancy rate of over 90% of industrial land; 2 industrial zones with infrastructure that is being built, in 108ha area. By the end of October, 2015, the city's industrial park has attracted over 602 projects (DA), which has 312 foreign investment projects (FDI), with registered capital of 4.9 billion USD and over 290 investment projects in countries with registered capital of 11.700 billion. President Truong Tan Sang visited workers in supported IZ South Hanoi. The investment in industrial zones in the province not only contribute to the promotion of economic development of the capital but also the impact that changed the industry structure in favor of developing new industries, production of essential products serving the industrial production and domestic consumption, the brain content industries, high value-added according undertakings which the … [Read more...]

NA deputies contribute to draft documents of 12th National Party Congress

(VOVworld)- At the 10th session of the 13th National Assembly, deputies contributed opinions to the draft documents of the 12th National Party Congress. Their comments focused on socio-economic development solutions and directions. The 12th National Party Congress will be held in early 2016. National Assembly deputies’ comments on its draft documents are of strategic importance for national socio-economic development and defense and international integration. Enterprises, a driving force in national industrialization and modernization Deputies agreed that the draft documents of the 12th National Party Congress analyzed various aspects of socio-economic development and introduced appropriate and feasible solutions for national development, agreed on the important role of enterprises in national industrialization and modernization. Nguyen Quoc Binh is a deputy representing Hanoi: "The 2013 Constitution stipulates that enterprises are an important force. In policies and … [Read more...]

Four years of major restructuring of the banking system

VietNamNet Bridge - The number of commercial banks cut from 42 to 34 in the last four years when the banking system underwent a restructuring process, considered ‘major surgery’. No bank went bankrupt. Three banks were taken over by the State Bank (SBV) at a price of zero dong. Toughest days over Eight names have disappeared from the market, including MDBank, MHB, DaiABank, Ficombank, TinNghiaBank, SouthernBank, WesternBank and Habubank. Tran Hoang Ngan, a renowned economist, National Assembly’s Deputy, said the current number of banks was ‘reasonable’. However, he noted it is not important how many banks are operational, but how to manage the banks in the most effective way. Regarding the quality of the ‘major surgery’, Ngan noted weak banks all have recovered well in accordance with plans set up by SBV: the steps of selling accumulative losses and debts and controlling outstanding loans have been taken in a cautious way to make profits … [Read more...]

Merged banks ask for help, want tax reductions

VietNamNet Bridge - Many commercial banks, which have or plan to make merger and acquisition (M&A) deals in their restructuring process, have asked for the state’s financial support, saying that tax reductions will help them overcome difficulties. The Sai Gon Ha Noi Commercial Bank (SHB) has asked for corporate income tax exemption and reduction for five years after the bank admits Vinaconex Viettel (VVF), a financial company which is described as ‘having many health problems’. The bank has also asked to be exempted from corporate income tax it has to pay in 2013-2015, the three years during which it has to assume responsibility for Habubank, which was on the verge of bankruptcy when SHB took over. The Military Bank (MB) also mentioned proposals for tax preferences at the meeting with shareholders to discuss the admission of Song Da Finance Company (SDFC). MB wants the corporate income tax exemption and reduction for the first five years after the merger. … [Read more...]

Mergers, acquisitions important move in restructuring banking system: experts

The removal of weak banks through mergers and acquisitions, one of drastic measures taken by the State Bank of Vietnam (SBV), has somewhat improved the health of the banking system and won trust from people, according to experts. What is new in 2015, the last year of the three-year project on restructuring the banking system, is the acquisition of small healthy banks by major State-run commercial banks, the World Bank said in a recent report on Vietnam’s economic development. The Maritime Bank merged with the Mekong Bank; Techcombank acquired the Chemical Finance Company; Sacombank merged with Southern Bank; and BIDV merged with MHB. Besides the mergers, the SBV also bought three weak banks - VNCB, Ocean Bank and GP. Bank - at the price of 0 VND, an unprecedented move in the history of Vietnam’s banking system. According to SBV Deputy Governor Nguyen Thi Hong, the SBV bought weak banks at the price of 0 VND each share because financial reports from independent … [Read more...]

NA deputies discuss socio-economic developments

(VOVworld) – On Tuesday, NA deputies continued to discuss the outcomes of implementing this year’s socio-economic developments and plans for next year. Tran Du Lich, a NA deputy of Ho Chi Minh City. (Photo: Phuong Hoa/VNA) Deputies praised the macro-economic growth which is higher than the set target despite economic difficulties around the globe. But the unsustainable growth remains Vietnam’s biggest challenge as it integrates internationally more deeply. Several deputies called on the government to focus on restructuring in public investment, the banking system, and economic groups. Thao Hong Son who represents Ha Giang province said that"the government should complete regional mater-planning based on which to make it easier for managing the entire economy, regions, and inter-regions. It’s essential to develop key economic zones to create a driving force for less developed areas." NA deputies asked the government to settle bad debts and cross-ownership … [Read more...]

Voters praise National Assembly discussion of national development

(VOVworld) – On Monday National Assembly deputies discussed socio-economic development in 2015 and plans for next year. The discussion was broadcast live on radio and television. Voters agreed with a number of deputies who pointed out the weaknesses of the economy and recommendations for the next 5 years. Bui Gia Hieu of Ho Chi Minh city said: "I’m particularly concerned about the restructuring of banks to contain inflation and provide businesses with greater access to loans. I’m also interested in farmers not being supported by the state in developing a trademark for their products." A Linh of Kon Tum province said: "We propose that the State and the National Assembly issue more policies to support socio-economic development in poor and remote areas. The government should help farmers sell their products." … [Read more...]

Party congresses of Bac Lieu, Soc Trang, and Lang Son province

(VOVworld) – The 15th Party Congress of Bac Lieu province opened on Wednesday. The province has maintained an average economic growth rate of 12% over the last 5 years. Its per capita income has reached roughly 2,000 USD a year. Bac Lieu is set to develop commodity production areas, create a favorable environment to attract investment, upgrade its infrastructure, and step up industrialization, modernization, and new rural development. President of the Vietnam Fatherland Front Nguyen Thien Nhan attended Soc Trang province’s Party Congress. To achieve rapid, sustainable growth, the province will focus on economic restructuring with the focus being on agriculture and the maritime economy. The 16th Party Congress of Lang Son province was held on the same day. In his address, Secretary of the Party Central Committee Ngo Van Du said: "Resources from all economic sectors should be mobilized to create breakthroughs in achieving comprehensive economic development. The … [Read more...]

Taking measures to actively adapt to climate change

Image for illustration NDO - The National Centre for Hydro-meteorological Forecasting predicted that this winter from December 2015 to February 2016 will see higher temperatures than the normal seasonal average with fewer freezing and damaging cold days due to the impact of the El Nino climate phenomenon. Meanwhile, the 2015-2016 rainy season will come later and finish earlier than the previous years with the rainfall in many areas from now to February 2016 to be lower than the average level of many years. In particular, the rainfall in the central region may reach 50% to 70% of the average level while the rainfall in the Central Highlands and southern region is estimated to meet only 20%-50% of the average level. The low rainfall will cause serious water shortages to irrigation and hydroelectric reservoirs, directly affecting agricultural production and the daily life of millions of rural households. To ensure sufficient water for agricultural production and daily life, localities … [Read more...]

Open Opportunities for Vietnam Agriculture

"The TPP Agreement will impact the entire economy of Vietnam but the biggest impact will fall on the agricultural sector. Although Vietnam has 10 years to prepare for the zero tax, it is actually not easy to stand firmly when head to head with husbandry powerhouses like the United States, Canada, Japan and Australia," said Dr Vu Tien Loc, President of the Vietnam Chamber of Commerce and Industry (VCCI), at the Vietnam Entrepreneur Forum 2015 themed "Entrepreneurs and farmers integration" organised by VCCI. Agricultural restructuring Dr Loc said that the Trans-Pacific Partnership (TPP) Agreement entails requirements for agricultural restructuring. This is certain because individual farmers of Vietnam cannot compete face to face with developed farms in the world. Therefore, businesses and farmers essentially join forces together to become a strong entity. The Government creates the environment and conditions for farmers to develop but entrepreneurs still play a central role. No matter … [Read more...]

Vietnam to foster green growth

VietNamNet Bridge – Viet Nam needs to restructure its economy to achieve sustainable development and consider green growth an intrinsic part, while keeping in mind the poor people, an official said. Viet Nam's green growth strategy must stipulate the restructuring and improvement of the economic institution towards more effective use of natural resources, and increasing competitiveness of the economy through enhancing investment in new technology, natural capital and economic instrument. — Photo Pham Hoang Mai, director general of the Department of Science, Education, Natural Resources and Environment under the Ministry of Planning and Investment, made the comment yesterday (Oct 21) during the collaborative seminar on "Policy Implementation for Green Development: Comparative Perspective from Oregon state of US and Viet Nam", held by the Academy of Policy and Development (APD) in Ha Noi. In the seminar, members of the executive delegation from … [Read more...]

Deputy Prime Minister Nguyen Xuan Phuc visits Ca Mau

(VOVworld) – Deputy Prime Minister Nguyen Xuan Phuc held a working session with leaders of Ca Mau province on local socio-economic development during a visit on Saturday. He praised the province’s efforts in the first 9 months of the year and asked central agencies to seek measures to remove obstacles to the province’s development and the implementation of its key projects. He asked the province to focus on economic restructuring, particularly in the agricultural sector and administrative reform to attract more investment. The same day, Deputy Prime Minister Phuc attended and directed the 5th Patriotic Emulation Congress of Ca Mau province. … [Read more...]