Resolution on Gov’t regular meeting in June issued

VGP – Supervising loans in high-risk areas, completing State-owned enterprises (SOEs) restructuring plan and enhancing the national competitiveness are crucial contents referred to in the Government's Resolution on its regular meeting in June. Illustration photo Closely supervising loans in high-risk areas The State Bank of Viet Nam will continue to monitor interest and exchange rates policy sustainably, promote credit growth, focusing on credits in manufacturing and business as well as closely supervise loans in high-risk areas such as real estate. The Ministry of Finance will follow price changes and manage commodities based on market mechanism to stabilize the macro-economy and curb with inflation. The Ministry of Industry and Trade will maintain the growth rate of the industry, propose measures to encourage development, attract investment in the auxiliary industry to improve effectiveness of investment, actively launches trade promotion programs, expand the market … [Read more...]

Japan sets target of financial reform to boost economic growth

(VOVworld) – On Tuesday, the Japanese government approved a plan for financial reform from now until 2020. Under the plan, tax revenue will increase, thanks to economic growth in the business sector, offsetting rising costs for social security due to an aging population. International ships operating at Tokyo sea port (Photo: AFP) According to the philosophy "there is no sound finance without economic restructuring", Prime Minister Shinzo Abe’s administration is focusing on economic growth while maintaining social security spending at the same level as 3 years ago. Japan’s economic recovery policy, called "Abenomics", has 2 major initiatives: loosening the monetary supply and large-scale stimulus spending. The same day, the Japanese government approved a growth strategy to promote enterprise investment in IT and human resources. To boost capital investment, the government will open dialogues with enterprises to help them in decision making. … [Read more...]

Greece becomes first developed country to default on IMF

Pro-euro protesters demonstrate in front of the parliament building in Athens on Tuesday. — AFP/VNA Photo WASHINGTON — Cash-strapped Greece missed a 1.5 billion euro (US$1.7 billion) payment to the International Monetary Fund on Tuesday as last-ditch efforts to find a compromise with official EU lenders came to naught. The missed payment made Greece the only developed country ever to fall into default with the global crisis lender and underscored the utter failure of more than five months of efforts to reshape the rescue of the country's economy and prevent it from dropping out of the eurozone. The future of efforts to restore its finances and meet creditor demands for reforms were in question, with fresh proposals from Athens spurned on Tuesday as the country moved toward a referendum on Sunday on EU bailout offers. IMF spokesman Gerry Rice confirmed that the payment due in Washington at 2200 GMT on Tuesday had "not been received". "We have informed our Executive … [Read more...]

Indonesia to review aging air force fleet after deadly crash

Relatives of the victims pray during a Buddhist ritual near the wreckage of TransAsia Airways plane Flight GE235 after it crash landed into a river, in New Taipei City, February 5, 2015. Indonesia's president promised a review of the country's aging air force fleet and a defense modernization drive on Wednesday, as the death toll from the crash of a military transport plane in the north of the country climbed past 140. The C-130B Hercules aircraft, which went into service half a century ago, ploughed into a residential area of the city of Medan on Tuesday, throwing a renewed spotlight on Indonesia's woeful air safety record. "There must be an evaluation of the age of planes and defense systems," President Joko Widodo tweeted late on Tuesday, as earth movers worked through the night to recover the dead from rubble of twisted metal and smashed buildings. The TVOne news channel said that 141 body bags had been brought to a hospital near the crash site, all but two of which contained … [Read more...]

Encouraging private business investment in agriculture

(VOVworld)- Vietnam’s agriculture boasts great potential for investment. In recent years, thanks to government incentives, domestic economic groups have shifted their investment capital to agriculture, signaling good prospects for the national economy. The government and the Prime Minister have paid great attention to fine-tuning policies and mechanisms to encourage enterprises to invest in agriculture and rural areas. In the last two years, the government issued two resolutions to improve the business climate. The government also approved a Project on Agricultural Restructuring in 2013 to encourage enterprises to participate in restructuring the agricultural sector and its production method. Positive signs of enterprises’ investment in agriculture As in other ASEAN countries, Vietnam’s agricultural sector has not attracted much investment from enterprises. According to the Ministry of Agriculture and Rural Development, private enterprises have succeeded with … [Read more...]

Vice Chairman Pham Truong Tho met with DARD

Vice chairman of Quang Ngai Provincial People's Committee Pham Truong Tho and provincial relevant leaders met with Department of Agriculture and Rural Development about its first 6 month achievements and tasks for the next 6 months of the year. ​ As reported by the Department of Agriculture and Rural Development, in the first 6 months, the province's agricultural industry continues to develop a comprehensive, total production value was estimated at 1.487 billion, reaching 44.2% compared to year plan. Food production is estimated at over 253,000 tons, 52.8% of the plan year, down 0.6% from the same period last year. Livestock feeding remain development stability, the prevention of disease in cattle and poultry are detected and handled promptly. Besides, the fisheries sector is relatively stable development in the first 6 months, fishery catch was estimated at over 74,000 tonnes, reaching 49.4% of the plan, up 5.9% year - on - year. For the fishing ship building, so far 200 ships … [Read more...]

Banks forced to merge to settle circular ownership status

VietNamNet Bridge - The State Bank of Vietnam (SBV) has taken a series of actions to clear cross-ownership which has existed in the banking system for many years. The merger of Mekong Bank into Maritime Bank, the two banks with the same owner, is expected to be followed by five to six merger deals, Dau Tu has quoted its sources as saying. These include the merger deal of Southern Bank and Sacombank. The merger has attracted the special attention from the public because they both relate to a big name – Tram Be, one of the most influential businessmen in Vietnam. Tram Be and his family members are reported to hold 20 percent of Southern Bank shares and 6 percent of Sacombank’s. Once the two banks merge with each other, the expected share conversion ratio is 1:0.75 (Southern Bank/Sacombank). The tentative conversion ratio has angered Sacombank’s shareholders. However, analysts noted that once the same big shareholders hold shares in both banks, they will have the … [Read more...]

Sony, Panasonic cling to TVs, betting on halo effect of premium sets

Japan's once-mighty electronics makers have lost billions of dollars from TVs but Sony Corp and Panasonic Corp won't quit, saying retreating from the world's living rooms would close the door to more promising businesses. Consumer electronics account for a shrinking portion of income after restructuring focused Sony on gaming and image sensors and Panasonic on electric car batteries. But TVs remain among their best-known products. Staying in the TV market - particularly at the premium end - keeps the pair relevant and ensures their brands and quality are at the forefront when consumers shop for other electronics, they said. Sony, for example, said it saw a strong correlation between sales trends for its TVs and audio systems. That makes it worth persevering in a TV market dominated by Samsung Electronics Co Ltd and cheaper Asian rivals, with Sony and Panasonic content to hold modest shares by focusing on high-margin, high-definition "4K" models. "TVs are the soul of Sony and … [Read more...]

Striving to have the agricultural share in the GRDP reach 10% after 2020

PPC Chairman has approved the scheme "Restructuring Agriculture sector towards improving added value and sustainable development by 2020, visions to 2030". Illustration photo Accordingly, by 2020, the structure target of agriculture - forestry - fishery, including: crop reaches 38%, livestock 19%, 4% of agricultural services, forestry 2% and fishing37% (accounting about 10% to 10.5% of the province's GRDP); stabilizing average annual grain yield gains at least 37 thousand tons; product value obtained per unit of 1ha arable land reaches approximately 110 million dongs (up 1.7 times compared to 2014); product value obtained per unit of 1 ha water surface for aqua-culture reaches about 1 billion dongs (up 1.7 times compared to 2014); per capita income in rural areas increase by 2.8 to 3 times higher than in 2010; agricultural labor proportion of total social labor accounts for approximately 40 to 45%; raising forest coverage to 45%; at least 65% of communes meet the standdards … [Read more...]

Economic restructuring in response to climate change in Vietnam’s coastal provinces

(VOVworld) – A workshop on economic restructuring in response to climate change in Vietnam’s coastal provinces was held on Wednesday as part of the science and technology program for national targets to deal with climate change. Hai Phong sea port (Photo: The event was co-organized by the Ho Chi Minh National Academy of Politics and Public Administration and the Ministry of Natural Resources and the Environment. The participants focused on measures to restructure the economy in response to climate change in the coastal areas in Vietnam in general and in the South central region in particular. The measures include economic restructuring to develop eco-tourism, organic agriculture and renewable energy. So far, coastal areas such as Da Nang, Quang Ngai and Khanh Hoa have made full use of their marine potential to develop heavy industry and sea transportation. … [Read more...]

NA urges change to agricultural sector

National Assembly deputies yesterday voiced their opinions about the government's supplementary reports on several socio-economic development plans' implementation in 2014 and early 2015. The reports, introduced by Deputy Prime Minister Nguyen Xuan Phuc on the first day of the ninth session, May 20, largely received their approval. The reports covered Viet Nam's economic and production health, highlighting the 5.9 per cent GDP growth since last year, the highest growth rate since 2011. The reports cited stabilization of the macro economy; a 1.84 per cent increase in the consumer price index (CPI) - the lowest rate in years; and the third consecutive year of trade surplus as examples of economic health. The reports also mentioned that last year's poverty rate reduced by 1.83 per cent; a sign that the effects of economic growth are trickling down. The country's GDP looked strong in the first quarter of this year, rising by 6.03 per cent. The export turnover also looked promising, … [Read more...]

PPC reviewed the half year’s socio-economic situation

Vice chairman of Quang Ngai Provincial People's Committee Mr. Le Quang Thich on June 4 chaired a meeting to review the 6-month socio-economic achievements and building up plans to achieve the year's targets set forth for the year 2015.​ At the meeting, Director of Planning and Investment Mr. Nguyen Cao Phuc released that the province's economy in the first six months of the year has achieved significant results, particularly the high growth of industrial production value, retails and service. He expressed that compared to previous year's data, this year's economic sectors achieved remarkably. The most significant result was released to be the revenue of tax collection which was reported to touch 16.4 trillion VND, a year - on - year growth of 3.4 % and to fulfill nearly 50 % of the year's targeted plan. Moreover, gross regional domestic product (GRDP) was estimated to reach over 6 trillion VND, a year-on-year increase of 15.1%. Industrial processing value was recorded to be over … [Read more...]

Mergers put bankers on brink of layoffs in Vietnam

For many bank employees in Vietnam, even those holding high positions, a merger between their bank and another institution could also mean the day they leave their job is drawing near. A number of mergers between lenders in the country have been approved or actually carried out, leaving employees of the acquired banks in constant fear that they would be fired anytime by the new employers. "The new bosses always promise to ensure jobs for everyone but they in fact have myriad tricks to lay off the employees of the banks they have acquired," Hoang An, who used to work for a commercial bank that was acquired by another in late 2013, revealed to Tuoi Tre (Youth) newspaper. One of the tricks is to set targets that cannot be met so that employees of the acquired banks will voluntarily ask to quit, An said. "Others include cutting salaries or annual bonuses, criticizing your professional mistakes, or firing you before the salary days," he added. "Despite the mistreatment, few … [Read more...]

OVs to talk economic, integration issues

Co-organized by the Party Central Committee’s Economic Commission and the State Committee for Overseas Vietnamese Affairs, the event will host over 100 economists, policy experts, scientists and lecturers at home and from the US, UK, France and Australia who will give their feedback on Vietnam’s economic development and integration for 2016-2020 and the subsequent years. (VOV) -A forum of overseas Vietnamese intellectuals and experts is set to take place in Hanoi on June 6 focusing on improving Vietnam’s competitiveness in the global economy. Predominant topics will cover Vietnam’s economic restructuring; growth model; governance capability improvement; financial-banking reform; development policies for industry, agriculture and businesses; and reforms in tertiary education and workforce training. … [Read more...]

Grasping opportunities from integration for business development

(VOVworld) – A conference opened in Hanoi on Wednesday to discuss new generation trade agreements and the work of young people. Vice President of the Vietnam Chamber of Commerce and Industry Hoang Quang Phong said the implementation of new generation free trade agreements requires Vietnam to make more in-depth commitments in non-traditional areas such as labor, the environment, e-commerce, and the restructuring of state-owned enterprises: "Businesses should restructure themselves in terms of capital, labor, science and technology, administration, and risk management for successful integration. Restructuring will make the most of the benefits of the FTAs." Vietnam has signed 8 free trade agreements and has been negotiating 7 others. … [Read more...]

Fifa’s Sepp Blatter ‘under investigation in US’

Fifa president Sepp Blatter is being investigated by US officials as part of their inquiry into corruption at the world football body, US media say. Fifa president Sepp Blatter is being investigated by US officials as part of their inquiry into corruption – Photo: The news came hours after Mr Blatter announced that he was stepping down from his role. US prosecutors launched a criminal inquiry last week, with seven Fifa officials arrested in Switzerland, part of a group of 14 people indicted. Two days after the arrests, Mr Blatter was re-elected president of Fifa. However, he said on Tuesday that it appeared the mandate he had been given "does not seem to be supported by everyone in the world". Mr Blatter said: "Fifa needs profound restructuring." 'Bribes and kickbacks' US officials quoted in the New York Times said they hoped to gain the co-operation of some of the Fifa figures now under indictment on charges of racketeering and money laundering to … [Read more...]

Blatter rocks world soccer by quitting FIFA amid scandal

Sepp Blatter rocked the world of football (soccer) on Tuesday by unexpectedly saying he would step down as FIFA president in the wake of a corruption investigation that reportedly may include the embattled chief himself. Citing sources familiar with the case, The New York Times and ABC News reported on Tuesday that Blatter was being investigated by the Federal Bureau of Investigation and U.S. prosecutors. Reuters was not immediately able to confirm the report. Blatter has not been charged with any wrongdoing. Late on Tuesday, a source who spoke on condition of anonymity told Reuters that Blatter is being investigated by U.S. prosecutors and the Federal Bureau of Investigation. An FBI spokesman declined comment. Blatter, 79, announced his decision to step down at a hastily arranged news conference in Zurich, six days after police raided a hotel in the city and arrested several FIFA officials, and four days after he was re-elected to a fifth term as FIFA president. Blatter … [Read more...]

Blatter quits as FIFA chief after corruption scandal

FIFA President Sepp Blatter leaves after his statement during a news conference at the FIFA headquarters in Zurich, Switzerland, June 2, 2015. Photo: Reuters Sepp Blatter resigned as FIFA president on Tuesday in the face of a US-led corruption investigation that has plunged world soccer's governing body into the worst crisis in its history. Blatter, 79, announced the decision at a news conference in Zurich, six days after the FBI raided a hotel in Zurich and arrested several FIFA officials and just four days after he was re-elected to a fifth term as president. Blatter said an election to choose a new FIFA president would be held as soon as possible. "FIFA needs profound restructuring," he said. FIFA, ruled over by Blatter since 1998, was rocked this week by the announcement of a US investigation into alleged widespread financial wrongdoing stretching back for years. Swiss authorities mounted their own criminal probe into the award of the 2018 and 2022 World Cups to Russia and … [Read more...]

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...]