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...]

Investment law tackles corruption

VietNamNet Bridge – Encouraging rational decision-making is a strong feature of the 2014 Law on Public Investment, Dao Quang Thu, Deputy Minister of Planning and Investment, tells the Viet Nam & World Economic Affairs newspaper. The 2014 Law on Public Investment went into effect on January 1. What are some things that have been improved from the previous law? In my opinion, the 2014 Law on Public Investment can be considered a revolution in the management of public investment. The law provides a consistent legal framework on the management and use of public investment resources, and on overcoming constraints created by the previous public investment law. The new law has some strengths, including preventing entities from making casual, subjective decisions. As we all know, public investment uses taxpayers' money. So investment regulations must be tight and strict, and follow prescribed administrative procedures. For example, the first chapter of the law covers rights and … [Read more...]

Vietnam on path to recovery

VietNamNet Bridge – Nation should stop sacrificing its growth rate for stabilising the economy, Tran Hoang Ngan with the National Advisory Council on Monetary and Financial Policies, tells Viet Nam Economic Times. 2014 was the first time in three years Viet Nam achieved its GDP goal. What are your comments on this success? In my opinion, it is notable. It shows that our economy is on the road to recovery. In 2012, our growth rate was 5.25 per cent. In 2013 it was 5.42 per cent, and in 2014 it was 5.9 per cent, compared with the set target of 5.8 per cent. However, if we look at the country's growth rate over the past four years, in the context of our natural resources, a population of 90 million people who are intelligent and hard working, and stable policies, a growth rate of less than 5.7 per cent should be considered beneath our potential. In the last four years, we have had to sacrifice our high growth rate for macroeconomic stabilisation and inflation control. But now … [Read more...]

Agricultural restructuring vital to Dong Thap’s new rural development

(VOVworld) – The Mekong Delta province of Dong Thap has rich potential for rice cultivation, aquaculture, fruit growing, and floriculture thanks to its abundant natural resources. Dong Thap was selected for a nationwide pilot project on agricultural restructuring as part of a national program on new rural development. VOV’s Thanh Tung reports… The pilot project to restructure Dong Thap’s agriculture aims to increase added values for sustainable growth by improving connectivity between supply and demand, and applying advanced technologies in production. The project also aims to generate more stable jobs in rural areas as part of efforts to boost new rural development. Dong Thap has set targets to restructure its agricultural sector with a focus on several major products including rice, tra fish, ducks, orchards, and flowers. To this end, Dong Thap provincial authorities have implemented a number of measures to improve the management and effective exploitation … [Read more...]

Social News 22/1

Students stable after anaphylactic shock The 35 students who experienced anaphylactic shock after being vaccinated in a secondary school in southern Hau Giang Province are now in stable condition, according to the provincial Preventive Health Centre. On Monday, 35 students at Vinh Vien A Secondary School experienced difficulty breathing, headache, vomiting and fever after getting the measles-rubella vaccination. Ten were in serious condition and taken to the provincial general hospital. Doctors said these students were possibly in anaphylactic shock. The rest of the vaccines were revoked for testing. Head of the centre Nguyen Van Muoi said all the students would be discharged from the hospital and resume their studies soon. Under the measles and rubella vaccination campaign launched by the provincial health sector, children between 1 and 14 years old are being vaccinated from October to the end of this month. Hanoi increases treatment for mental health patients Ha Noi treated … [Read more...]

Private sector key to sustained growth

VietNamNet Bridge – Although the economy is predicted to do better, privatisation and SOE reforms will be crucial for Viet Nam's development in 2015, economist Nguyen Hong Nga tells Viet Nam News. Recent reports point out that the world economy is still on a slow recovery path that contains many risks. The development of the Viet Nam economy still heavily relies on exports and FDI, so how does the world economy affect Viet Nam? That is absolutely right. Viet Nam's economic growth has been based on two key pillars, exports and FDI. The economy is still heavily dependent on exports, especially to the EU, US, China, Japan and other ASEAN countries (accounting for 70 per cent). The Vietnamese economy will be affected by demands in importing countries. It will change depending on the economic strength of those countries. The weakness of the Vietnamese economy has been due to a lack of creativity and technology. The current development heavily relies on natural resources and … [Read more...]

Growth rate set at realistic target

VietNamNet Bridge – Nguyen Duc Kien, Vice Chairman of the National Assembly Committee for Economic Affairs, spoke to Kinh te Viet Nam & The gioi (Viet Nam & the World Economic Affairs) newspaper about growth goals. How would you assess the 2014 performance of the Government and line ministries in economic management? I would say that 2014 was the first time in many years that Viet Nam achieved its socio-economic targets, except for the consumer price index. This achievement bespeaks of a success in macro-economic management. Experience has shown that in the past, for many years, we tended to paint a rosy picture of our economy through nice figures. Actual economic growth rates were always lower. This had seriously affected macro-economic management in the country. We must remember that last year, our economy was affected by external forces, including the illegal placement of the Chinese oil rig in the East Sea and conflicts in former Eastern Europe, including Ukraine. … [Read more...]

Wage hikes in Hanoi signal recovery

Higher monthly wages at many companies in Hanoi, especially in the FDI sector, signal continuing economic recovery in the capital. The Hanoi Department of Labour, Invalids and Social Affairs, which surveyed some 570 enterprises, found highest monthly wage at FDI companies of VND60m (USD2,800), with the average wage in 2014 at VND4.4m a month, an increase by 1.0 percent on a year earlier. State-owned corporations were in second place with highest monthly wage of VND37m, with an average wage of VND4.7m. In third place, was the private sector with a highest monthly wage of VND35m and an average monthly wage of VND4.3m, up 5.1 on a year earlier. Lastly, state-owned one-member limited liability companies had a highest monthly wage of VND27m and an average monthly wage of VND4.4m, up 1.6 percent. Pham Van Thanh, manger of the Department of Labour, Employment Policy under the city's Department of Labour, Invalids and Social Affairs, said the statistics were drawn from enterprise … [Read more...]

Shopping mall business falls, but oversupply may not be the cause

VietNamNet Bridge – Despite great efforts to attract customers, shopping malls in large cities continue to have problems attracting many customers. Meanwhile, James Hawkey of Cushman & Wakefield Asia Pacific said it is too early to say the market is experiencing an oversupply. It is 10 am on a Sunday. Union Square, a high-end shopping mall in HCM City appeared to be quiet. Half an hour later, some people entered the mall. But they did not visit luxury shops. They just visited shops where they saw notices about a 50 percent sale. However, they did not buy anything from the shops. After wandering about the shops, they went downstairs to a restaurant in the basement. These restaurants are the busiest places at Union Square. Hung Vuong Plaza, which is "less luxurious" than Union Square, also cannot attract many customers these days. Hoa, the owner of a cosmetic shop, said sales had been falling dramatically since 2013. "Some days I do not sell any jars of cream," she … [Read more...]

Seminar highlights agricultural restructuring

(VOV) - Agricultural restructuring was the main theme of a seminar in Hanoi on January 17 co-organised by the Ministry of Development and Rural Development (MARD) and the Vietnam National University of Agriculture (VNUA). Delegates at the seminar confidently affirmed the agricultural sector has benefited tremendously from the past 30 years of the renovation process and Vietnam is now reaping the benefits from the long and arduous work. In 2014, the turnover for the sector was over US$30 billion and it has become an important anchor for the nation’s economy, particularly given the global economic downturn over the past several years. Prof. Dr. Do Kim Chung from the VNUA said Vietnam’s agricultural restructuring process should now turn to focusing on restructuring public investment and services to develop the sector in accordance with the market requirements. Delegates agreed that one of the top priorities of agricultural restructuring should be to ensure nutrition and … [Read more...]

Encouraging Talent and Promoting Creativity

The level of economic growth and labour productivity of Vietnam has been slow in recent times. What to do and how to recommend the government to find a sustainable economic model for growth and improve labour productivity as well as national competitiveness are the main themes of the conference "Building market economy framework in the context of economic integration: the international experience and suggestions for Vietnam", recently held by the Central Institute for Economic Management (CIEM) in Hanoi. According to Professor Kim Jeung Ho, School of Public Policy and Management, the Korea Development Institute, in recent times, Vietnam has been maintaining economy and society stably so the nation has made satisfactory economic progress. Looking into the future, Vietnam is totally conditioned to become a dynamic country. However, in parallel with economic advantages, Vietnam is facing many challenges from the processes of economic reform, industrialisation and rapid urbanisation, … [Read more...]

HCMC agricultural restructuring brings many successes

Ho Chi Minh City’s agricultural restructuring program has reduced income gap between urban and rural citizens, made the city a breeding and seedling production and supply center, and increase export turnover since it was approved in 2004. Orchid multiplication at the HCMC Hi-Tech Agricultural Research and Development Center (Photo: SGGP) At an online conference to review the country’s agricultural industry in 2014, deputy chairman of HCMC People’s Committee Le Thanh Liem said last year the city’s agro, aqua and forestry Gross Domestic Products (GDP) went up 5.8 percent over 2013, much higher than the country’s 3.3 percent. The growth rate averaged 5.8 percent in HCMC and appropriated 3 percent in the country in the phase of 2011-2014. GDP per capita in HCMC suburb has increased to account for 80.5 percent of that in center areas, cutting income gap between rural and urban citizens to 1.2 times from 1.8 times before. They are results from the … [Read more...]

Vietnam plans for transport restructuring by 2020

Vietnam aims to build 2,000 km of highways by 2020 under a transport restructuring project adopted by Prime Minister Nguyen Tan Dung. Land for urban traffic will comprise 16-26% with priority given to public transport, principally in Hanoi and Ho Chi Minh City while the transport of goods and passengers on road will comprise a market share of 54.4% and 93.22%. National Highway 1A linking Ha Noi in the north and Can Tho city in the south will be expanded before 2016. The project targets to upgrade the north-south railway system and build hi-speed railways connecting Lao Cai and Hanoi, Hanoi and Hai Phong, Hanoi and Dong Dang, Bien Hoa and Vung Tau, Ho Chi Minh City and Can Tho, Lach Huyen seaport and others in Hai Phong, the Central Highlands and seaports. By 2020, domestic transport of goods and passengers by sea aims for 32.38% and 0.17% of market share, respectively. Along with major routes, river lines linking the Mekong Delta to HCM City, and those along Tien Giang, Hau Giang, … [Read more...]

The nation plans for transport restructuring by 2020 

(VOV) - Vietnam aims to build 2,000 km of highways by 2020 under a transport restructuring project adopted by Prime Minister Nguyen Tan Dung. Land for urban traffic will comprise 16-26% with priority given to public transport, principally in Hanoi and Ho Chi Minh City while the transport of goods and passengers on road will comprise a market share of 54.4% and 93.22%. National Highway 1A linking Ha Noi in the north and Can Tho city in the south will be expanded before 2016. The project targets to upgrade the north-south railway system and build hi-speed railways connecting Lao Cai and Hanoi, Hanoi and Hai Phong, Hanoi and Dong Dang, Bien Hoa and Vung Tau, Ho Chi Minh City and Can Tho, Lach Huyen seaport and others in Hai Phong, the Central Highlands and seaports. By 2020, domestic transport of goods and passengers by sea aims for 32.38% and 0.17% of market share, respectively. Along with major routes, river lines linking the Mekong Delta to HCM City, and those along Tien Giang, Hau … [Read more...]

Tighter Management over Inefficient Funds

Restructuring investment funds is one of the first successes contributing to Vietnam's stock market restructuring. Until 2004, Vietnam's stock market had no fund management company. But within two years from 2006 to 2007, the stock market developed, the system of business organisations, securities services has seen rapid growth in both the number and size of capital, business and technology, with network of branches and transaction offices spreading across the major cities in the country, which helped investors gain access easier to the stock market. However, the number of business organisations and service providers for the stock market has rapidly increased while the capacity of capital, technology, expertise, capacity management, administration, particularly risk management, are limited, potentially causing systemic risk, failing to meet the needs of the investor and the issuer. Professional ethics of some securities business organizations is not high, the business segment has not … [Read more...]