Vietnam to set stronger tone for SOEs restructuring

Prime Minister Nguyen Tan Dung has requested drastic actions to restructure State-owned enterprises (SOEs), with a focus on equitisation and withdrawal of State capital from non-core business lines. As of March 24, 289 SOEs on the waiting list of equitisation already established Steering Boards in charge of the process. Up to 207 of them were evaluating their assets while 81 others planned to announce their worth. Nationwide, as much as nearly 7 trillion VND (333 million USD) invested in non-core business lines has been recollected, mostly in the military-run telecom Viettel, the Vietnam National Oil and Gas Group, the Vietnam Posts and Telecommunications, the Electricity of Vietnam, the State Capital and Investment Corporation. In January-March, 18 SOEs auctioned 100 million shares and earned 805 billion VND (38.3 million USD). During a working session with the Steering Board for SOE Renovation and Development in Hanoi on March 26, the Government chief asked for perfecting … [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...]

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...]