Minister calls for restructuring to develop agriculture sector

The Ministry of Agriculture and Rural Development has urged the restructuring of agriculture to increase farmers' incomes, produce higher-quality products and improve export competitiveness. Speaking at a meeting yesterday in HCM City, Cao Duc Phat, minister of Agriculture and Rural Development, said it was important to link the agricultural sector to the national programme on new rural areas. Restructuring the agricultural sector would help reduce poverty, he said. Though Viet Nam is one of the world's top rice exporters, many of its farmers remain poor, if not very poor. In recent years, the country has provided training to farmers to help them increase yields, but the processing sector and the volume of raw material input has not been adequate. Under restructuring, production chains would be established which would help enterprises, farmers and scientists work more efficiently. Phat said agricultural restructuring would enhance economic growth and create higher incomes for … [Read more...]

Bank restructuring proceeds smoothly, but bad debts pile up

VietNamNet Bridge - Commercial banks’ provisioning costs have been increasing, even though bank restructuring has been proceeding well. The Q4 financial report of Sacombank pointed out three problems the bank is facing: asset quality was affected after it admitted Southern Bank; its plan on issuing shares to strategic partners has not made progress; and expenses on provisioning against risks have increased sharply. The provisioning cost is predicted to continue rising in 2015 as the bank plans to expand its network. The bank may have to pay VND1.228 trillion in 2015 in provisioning for commercial loans against risks, an increase of 27.5 percent in comparison with last year. At Sacombank, the bad debt ratio was 1.19 percent in 2014 and 1.46 percent in 2013, while the bad debt coverage ratio increased from 84 percent in 2013 to 90 percent in 2014, while the provisioning cost increased by 121.5 percent to VND962 billion. In principle, the higher cost will eat into … [Read more...]

Vietnam accelerates economic restructuring and new growth model

(VOVworld) - Deputy Prime Minister Nguyen Xuan Phuc delivered a speech Tuesday in Jakarta, Indonesia at the opening plenary session of the World Economic Forum (WEF), themed "East Asia in the new global context". Deputy Prime Minister Phuc said Vietnam is working towards a new stage of economic development by accelerating its economic restructuring and new growth model shifting and improving its market economy. Phuc said Vietnam has also been making responsible contributions to the formation of the ASEAN Economic Community and cooperation mechanisms in the region while remaining actively involved in negotiating many major free trade agreements. East Asia has a number of opportunities for cooperation, but stability and development in the region face challenges caused by climate change, strategic competition, territorial disputes, and threats to security and safety of navigation and aviation. He said sea disputes must be resolved by peaceful measures based on international law, including … [Read more...]

Vietnam focuses on reform and economic restructuring

(VOVworld) – The 2015 Spring Economic Forum on the theme of "Continuing to reform the investment and business environment in Vietnam" opened in Nghe An province on Tuesday. Delegates discussed the outcome of last year’s development plan and plans to achieve this year’s targets. Economists said Vietnam’s economy was recovering earlier than expected, which has created a potential for businesses, particularly small and medium ones, to develop and improve foreign investors’ confidence. Tran Dinh Thien, Director of the Vietnam Institute of Economics, said: "The government should continue to prioritize reform and restructuring and focus on settling bad debts and exchange rates. State-owned enterprises should be equitized based on market developments and reforming state management should be accelerated. Settling bad debts for businesses will help them develop and support agricultural restructuring." … [Read more...]

Press digest – April 13

PM asks for speedier SOEs restructuring plan The PM asked ministries, agencies and localities to work harder for the equitization of 289 businesses, ensuring benefits for the State, laborers and shareholders. As many as 23 ministries, agencies, localities and economic corporations have submitted their State-owned enterprises (SOEs) restructuring plans to the PM. The PM has approved 19 plans which asked for the equalization of 106 more enterprises in 2015 and additional 109 in the 2016-2020 phase. The PM urged the Ministry of Finance to tackle obstacles and difficulties in assessing the enterprises as well as host and cooperate with the Steering Board for SOEs Renovation and Development to review the SOEs restructuring works in the 2011-2016 phase and establish the overall SOEs restructuring plan in the 2016-2020 phase. PM pledges more funding for drought measures in Ninh Thuan PM Nguyen Tan Dung agreed with additional funding for the central province of Ninh Thuan to counter the … [Read more...]

Promoting advantages and enhancing added value of agricultural sector

As informed by Deputy Chief of PPC Office, Mr. Huynh Xuan Son, Standing Vice Chairman of PPC, Mr. Le Van Truc has recently concluded on reviewing steps to build up the Scheme of restructuring Phu Yen Agricultural sector towards raising added value and sustainable development by 2020 and orientation by 2030. The scheme "Restructuring Provincial Agricultural Sector" focusing on implementing Decree 67/2014 of the Government on a number of fisheries development policies Accordingly, the basic content of Scheme "Restructuring Agricultural sector is to review and supplement the development planning of agricultural production in period 2015- 2020 in order to promote advantages of each region or locality, each crop, livestock object to raise added value per area unit. Specifically identifying specialized production areas in associated with processing industry and consumption markets, sustainable and effective development. Clearly identifying key crops and livestock of the province, … [Read more...]

Forestry sector told to focus on restructuring

VietNamNet Bridge – Deputy Prime Minister Hoang Trung Hai has asked localities nationwide to focus on forestry restructuring by improving productivity, quality and value. A pine forest in Da Lat. The national forestry sector has been instructed to focus on raising productivity, quality and value. Hai said this would add value to timber, expand the market and boost the forestry value chain. Deputy PM Hai made the request while chairing a meeting of the National Steering Committee on the Forest Protection and Development Plan for 2011-20 in the Central Highlands province of Dak Lak on Thursday. Hai urged localities to strictly implement forest planting project to replace damaged areas while reshuffling forestry enterprises and rolling out measures to prevent and fight forest fires. He also requested additional efforts in forest protection and strengthened state management over forest land, adding that all violations were to be strictly handled. At the meeting, the … [Read more...]

Genetically modified corn seeds introduced to Vietnamese farmers

Dekalb Vietnam, a subsidiary of the US’ Monsanto Company, yesterday launched the first integrated knowledge transfer field in the southern province of Dong Nai to introduce genetically modified (GM) corn seeds to farmers. The project is aimed to give hundreds of Vietnamese farmers the chance to grow corn seeds with weed management and insect protection traits for the first time in their lives, and transfer the knowledge to thousands of farmers to better capture yield potential and make farming operations more stable, successful and profitable. Nguyen Hong Lam, a lifetime corn-growing farmer, also one of the first growing GM corn in his own field in Vietnam shared: "From my own experience, the productivity of conventional corn seeds and GM corn are equal in volume, but the quality of the latter is better and the flavour is more delicious." "Above all, by growing the new GM corn seeds with built-in pest and weed protection traits, I can cut costs on pesticides, herbicides and … [Read more...]

Production restructuring boosts new rural development in Bau Truc Pottery Village

(VOVworld) - About 10 km from Phan Rang City, Bau Truc pottery village in Phuoc Dan town, Ninh Phuoc district, Ninh Thuan province, is one of the two oldest pottery villages in Southeast Asia. Bau Truc pottery products are much sought after both at home and abroad. The village has rebuilt its kilns to save energy while improving product quality as part of the national new rural development program. VOV’s Thuy Linh reports… Bau Truc pottery products are famous worldwide for their quality and diverse and unique designs reflecting the renowned Cham culture. In the past, the village’s traditional outdoor kilns did not ensure an ideal temperature for firing ceramic products, which reduced their durability. Surveys and research conducted in a number of ceramic villages convinced the Ninh Thuan provincial Agricultural and Trade Promotion Center to apply the firing model of Thanh Ha ceramic village, Quang Nam province to Bau Truc’s pottery production. Two households … [Read more...]

Businesses Proactive in Integration and Economic Restructuring

1. Integration and economic restructuring Vietnam had formal diplomatic relations with 175 countries and trade relations with 200 countries and territories in the world as of 2014. The country has established strategic partnerships with 13 countries, field-based strategic partnerships with two countries, and comprehensive strategic partnerships with 11 countries. Currently, Vietnam has signed over 90 bilateral trade agreements, nearly 60 agreements on investment encouragement and protection and 54 double-tax avoidance agreements with partners worldwide. A series of other agreements are expected to take effect or to be concluded in 2015, including the formation of the ASEAN Economic Community (AEC), the Regional Comprehensive Economic Partnership (RCEP) between 10-member ASEAN with six partners, FTA with the European Union (EU) and the Trans-Pacific Partnership (TPP) Agreement. Besides, tariffs are being further slashed as committed to the World Trade Organisation (WTO). With the … [Read more...]

Gov’t determines to exceed ASEAN-6, keep up with ASEAN-4

VGP – The Government has set that Viet Nam’s targets on the business environment will reach and exceed the average level of nations in the ASEAN-6 in 2015 and achieve the average level of countries in the ASEAN-4 in terms of some key targets based on the international routines. The Government has issued a Resolution on key tasks and measures to improve the business environment and the national competitiveness capacity in the 2015-2016 phase. Accordingly, measures will be taken to better the business environment, accelerate administrative procedures, ensure the transparency and responsibility of the State administrative agencies and reform the regulations on business conditions on commodities, exports and imports to be suitable with the international rules. Economic restructuring enhanced Ministries, agencies and localities will launch synchronously and effectively the Government’s programs and projects to implement the Party's and National Assembly’s … [Read more...]

More banks enter into M&A deals

VietNamNet Bridge – Both VietinBank and PG Bank have confirmed their merger and acquisition (M&A) deal, as have Vietcombank and Saigon Bank, Sacombank and Southern Bank, BIDV and MHB, and Maritime Bank and MDB. But PG Bank days later removed the information from its website. Meanwhile, VietinBank denied that the merger had occurred. However, analysts still said the "marriage contract" of VietinBank and PG Bank would be inked by the two sides, sooner or later, because "there was no smoke without fire", pointing out that the merger would benefit both of them. In the latest news, VietinBank’s president Nguyen Van Thang has confirmed the deal. For PG Bank, with VND3 trillion in chartered capital, just equal to 1/12 of VietinBank’s, and total assets of VND22 trillion, 1/30 of VietinBank’s, merging with VietinBank proves to be the best solution. The commercial banks with chartered capital of below VND4 trillion are listed as "small banks", which will be in … [Read more...]

China lowers annual growth target, pledges more reform

A worker welds at a construction site in Yiliang, Yunnan province, February 28, 2015. China's Premier Li Keqiang said the world's second largest economy would target growth this year of around 7 percent, signaling the lowest expansion for a quarter of a century. In remarks prepared for delivery at the opening of China's annual parliamentary meeting in Beijing, Li vowed to fight corruption and pollution, and stressed the need for more painful reforms to support the economy in the longer term. The premier said China faced greater economic headwinds this year than in 2014. "The downward pressure on China's economy is intensifying," said Li. "Deep-seated problems in the country's economic development are becoming more obvious. The difficulties we are facing this year could be bigger than last year. The new year is a crucial year for deepening all-round reforms." The opening of the annual full meeting of the largely rubber-stamp National People's Congress comes less than a week after … [Read more...]

Official says progress made on GP.Bank restructuring

The reorganisation of Global Petrol Bank (GP.Bank) has seen progress, its chief executive officer Pham Quyet Thang said in an interview with news website ttvn.vn. Related news GPBank to be nationalized, Ocean Bank may follow Thang made the announcement after State Bank of Viet Nam (SBV) Deputy Governor Nguyen Phuoc Thanh told the local press last week that GP.Bank may be nationalised. The central bank may acquire this bank at a price of zero dong per share, as it will do with the Viet Nam Construction Bank, following a February announcement. "It's normal for the SBV to have a backup plan to ensure systematic security while restructuring commercial banks," Thang commented. "Our management board and I always appreciate the support of the SBV." GP.Bank is among the weak lenders that were forced to submit to reorganisation by the government in 2012 to create a healthier banking system. Thang said the bank has since conducted drastic restructuring measures. "Challenges arising from … [Read more...]

The completion of several FTAs negotiations by Vietnam in 2014 is an impressive

Mr. Sanjay Kalra, Resident Representative of IMF in Vietnam. (Source: Internet) (CPV) - "The completion of several free trade agreement (FTA) negotiations by Vietnam in 2014 is an impressive. These FTAs will provide additional opportunities for Vietnam in the form of freer flow of goods across national boundaries, and hence access to a larger market and demand," said Mr. Sanjay Kalra, IMF Resident Representative for Viet Nam, in an interview to the Communist Party of Viet Nam Online Newspaper on February 2015. Here is the full text of the interview: Reporter: In 2014, Vietnam completed three bilateral and multilateral free trade agreement negotiations with the European Union, Republic of Korea and the Customs Union of Belarus, Kazakhstan and Russia. Could you share with us what opportunities and challenges that the FTA will present Vietnam in the future? The completion of several free trade agreement (FTA) negotiations by Vietnam in 2014 is an impressive. These FTAs will provide … [Read more...]

Government’s Resolution 01 targets 6.2 percent GDP

The Government has adopted Resolution 01/NQ-CP detailing key tasks and measures to realise the 2015 socio-economic development. The Government's annual meeting in January 2015. Achieving a GDP of 6.2 percent The resolution has set a target of obtaining a gross domestic product (GDP) growth of 6.2 percent and a 10 percent rise in export value in 2015. The consumer price index is expected to increase by 5 percent while total investment for socio-economic development will make up 30-32 percent of GDP. The nation-wide rate of poor households is forecast to fall 1.7-2 percent and roughly 1.6 million jobs will be created. These targets were approved by the National Assembly, according to the resolution. To do that, the resolution asks for strengthening macro-economic stability by clearing business hurdles, going forward with strategic breakthroughs and economic restructuring in tandem with shifting to a new growth model and improving the national economy’s … [Read more...]

Vietnam’s economic growth to recover in 2015

(VOVworld) – The National Financial Supervisory Committee has forecast that Vietnam’s economic growth in the first quarter of this year will be 5.4% and the yearly target of 6.2% will be feasible. Economists, however, said that economic restructuring, settling public debts, and removing obstacles to businesses will remain challenges to Vietnam’s economic growth this year. Associate professor Tran Dinh Thien, Director of the Vietnam Economics Institute, said: "We should clarify issues of economic restructuring. It’s essential to have accurate evaluations of difficulties so as to devise appropriate solutions. We will have stronger integration commitments and the deeper we integrate into the global economy the more important it will be to restructure the economy. This will create breakthroughs for our economy." … [Read more...]

DATC posts rise in profit in 2014

The Debt and Asset Trading Corporation (DATC) last year bought debts of 36 businesses, valued at VND825.4 billion (US$38.5 million), posting 52 per cent year-on-year increase. DATC received debts and assets from 2,468 businesses, worth about VND4 trillion ($186.9 million), during the 10-year period. — Photo baohaiquan Its total revenue in 2014 reached VND1.03 trillion ($48.1 million), representing a 91 per cent year-on-year increase and 21 per cent higher than the set target. Its posted profit that was 2.54 times higher than of 2013. DATC contributed VND50 billion ($2.33 million) to the State budget. The corporation said that in the past 10 years, its activities of buying debts and assets from restructured State-owned enterprises have accelerated the change of ownership of companies. DATC received debts and assets from 2,468 businesses, worth about VND4 trillion ($186.9 million), during the 10-year period. By the end of last year, DATC had contributed VND558 billion ($26 … [Read more...]

Government News 12/2

Vietnam-Russia relations discussed A conference on Vietnamese-Russian relations and methodological issues was held in Hanoi on February 10. This is the first conference discussing the State-level research findings on how news for foreign services can boost the comprehensive strategic partnership between the two countries, hosted by the National Foundation for Science and Technology Development (NAFOSTED). Dr. Pham Van Linh, Vice Chief of the Party Central Committee’s Commission for Popularisation and Education highlighted that the findings have made significant contributions to the Party and Government’s foreign policies and strategy on news for foreign services. During the event, participants focused on five relevant issues: politics and foreign affairs; economy and law; security and defence; culture and information; and science and education. They also stressed the inheritance of the bilateral relationship from the former Soviet Union. Government, VFF coordination … [Read more...]

Vinafood 2 ridiculed for its plan to buy paddy from farmers

VietNamNet Bridge – Experts have expressed doubts about Southern Food Corporation’s (Vinafood 2) plan to "restructure rice production and export". Vinafood 2, the major Vietnamese rice exporter, has announced it will "make a breakthrough" in rice exports by buying unhusked rice from farmers to process rice for export instead of buying rice for export, as it did in the past. Huynh The Nang, general director of Vinafood 2, said this is a part of the corporation’s plan to develop its large-scale paddy field model, which would help it secure enough rice stocks for export. Meanwhile, this would allow farmers to sell rice at good prices. It is expected that the large-scale fields would account for 20 percent of the rice growing area in the Mekong River Delta by 2020. Vinafood 2 has completed working sessions with its subsidiaries and commercial banks on the cooperation in implementing the restricting process. The rice exporter has signed cooperation contracts with … [Read more...]