Commercial banks to support WB projects (Việt Nam )assorted artitcles

Commercial banks to support WB projects

Update: June, 13/2018 - 08:30

Sài Gòn-Hà Nội Bank (SHB) and Việt Nam Technological and Commercial Joint Stock Bank (Techcombank) have been assigned to support projects signed between Việt Nam and the World Bank. — Photo baomoi.com

Viet Nam News
HÀ NỘI — Sài Gòn-Hà Nội Bank (SHB) and Việt Nam Technological and Commercial Joint Stock Bank (Techcombank) have been assigned to support projects signed between Việt Nam and the World Bank.
The decisions were issued by the State Bank of Việt Nam (SBV).
Accordingly, SHB will support the project "Medium Urban Development" - Financing Agreement for Additional Financing Credit 6070-VN and Financing Credit Code 6071-VN, signed on December 15, 2017.
In addition to this, SBV also assigned Techcombank to serve “Sustainable development of Đà Nẵng City” - Financing Agreement for Additional Financing Credit 6032-VN, signed on September 29, 2017.
The general directors of SHB and Techcomback are responsible for implementing the provisions of Decree 16/2016 /NĐ-CP dated March 16, 2016, of the government on the management and use of official development assistance (ODA) and preferential loans of foreign donors, guiding documents of the SBV and the Ministry of Finance, as well as the guiding regulations of the World Bank to better serve the implementation of the project.
These decisions are effective from the signing date on June 6, 2018. — VNS

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World Bank backs Việt Nam’s ’robust’ economic progress

Update: June, 15/2018 - 09:00

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Việt Nam’s economy is forecast to continue improving, with gross domestic product (GDP) expected to expand by 6.8 per cent this year, said the World Bank (WB) in its latest economic update for Việt Nam.— VNA/VNS Photo Trần Việt

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HÀ NỘI — Việt Nam’s economy is forecast to continue improving, with gross domestic product (GDP) expected to expand by 6.8 per cent this year, said the World Bank (WB) in its latest economic update for Việt Nam. 
According to the WB’s Taking Stock report released on Thursday, Việt Nam’s economic growth has been robust in recent times, accompanied by broad macro-economic stability.
Sebastian Eckardt, lead economist of the WB in Việt Nam, said current favourable economic conditions such as high growth and low inflation offer Việt Nam a special chance to boost reform. 
Prudent macro-economic policies should be in parallel with profound and comprehensive structural reforms, including reform of regulations to remove barriers and reduce operational costs for the private sector, investment in high-quality human resources and infrastructure, and increased productivity at State-owned enterprises, he said. 
According to the report, Việt Nam’s trade balance has continued to improve owing to a strong trade performance and foreign direct investment inflows, contributing to the overall current account surplus, estimated at 6.8 per cent of GDP in Q1 2018. The exchange rate has remained relatively stable while reserves have continued to rise, reaching US$63 billion in the first four months of this year, equal to around 3.6 months of imports. 
Against the backdrop of low inflation, monetary policy remains accommodative. Việt Nam’s consumer price index has been ticking up slightly at 2.8 per cent (year on year), driven by electricity and health service price hikes. Rapid credit growth and abundant liquidity could worsen volatility in Việt Nam’s financial markets, especially against the anticipated tightening of global monetary conditions. Public debt has stabilised since 2017, with an overall fiscal deficit of 4.5 per cent of GDP, and the public-debt-to-GDP ratio declined to 61.4 per cent in 2017 from 63.6 per cent in 2016, said the WB. 
Việt Nam’s medium-term outlook has improved further since the last Taking Stock in December 2017. Real GDP is projected to expand by 6.8 per cent this year (up from 6.5 per cent in the previous forecast) before moderating to 6.6 per cent in 2019 and 6.5 per cent in 2020, due to an expected slowdown in global demand.
Inflation is expected to remain around the 4 per cent this year as the Government targets. The current account balance is projected to remain in a surplus, but could start narrowing next year, reflecting widening deficits on the income and services accounts. Fiscal deficits and public debt are expected to remain under control. 
The report said despite improved short-term prospects, risks remain significant. Domestically, slower progress in restructuring State-owned enterprises and the banking sector could adversely impact the macro-financial situation, undermine growth prospects and create large public-sector liabilities. External risks include escalating trade protectionism, heightened geopolitical tensions and faster-than-expected monetary tightening could lead to disorderly financial market movements. 
According to the WB, Việt Nam has made great progress in reducing tariffs but there remains significant potential to reduce trade costs through rationalisation of non-tariff measures or specialised controls, and more efficient border management and logistics. — VNS[/size]

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Government Clampdown Great For Inward Investment

Update: June, 15/2018 - 08:00

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Brian Spence

Viet Nam News
By Brian Spence *
As I have highlighted several times in this column, Việt Nam now has the second fastest growing economy in the world, after China.
Given its new position in the world, there is a growing confidence and entrepreneurial spirit in the air. Many are realising that investment does not just mean property, cash or the bank but have begun investing in the Vietnamese stock market, private equity and in their own businesses. You could call Việt Nam ‘start up Việt Nam’.
We also see a growing interest in myriad of investment opportunities internationally. This outward investment trend is something I intend to write about later, but for today we are going to take a look at the interest that the global market has in this bustling, innovative and youthful Vietnamese economy and how you can benefit from this.
Interest from the global economy in the Vietnamese growth story is huge, however the perception that Việt Nam has a history of corruption has been a major stumbling block for potential international investors. Before significant inward investment will flood into Việt Nam, and flood it will, if the Vietnamese Government continue their crackdown on corruption.
The global economy has been impressed by the recently mounted ‘a big anti-graft’ campaign. The objective of the extensive campaign was part of its bid to rid the banking sector of corruption, reform the public sector and improve its global image. It went after corrupt officials and took down some of the biggest offenders. This is a bold statement to the world that ‘Việt Nam is open for business.’
S&P have recently invited senior leaders in the international business community to join their Việt Nam mergers and acquisition interest group with a view to inward investment into Việt Nam. There are already over 100 registered international CEO’s and senior figures signed up to explore pre-IPO opportunities in Việt Nam. The formula of experienced international investors and Vietnamese business opportunity is a sure-fire recipe for success.
So how can you take advantage of these new initiatives?
Vietnam Silicon Valley (SVS) is a fantastic Ministry of Science and Technology and Vietnamese Government’s initiative directed at stimulating the growth of technology start-ups in Việt Nam. It was launched in 2013 and seeks to create an ecosystem of innovations and technology commercialisation in Việt Nam – by combining Vietnamese entrepreneurial spirit and innovative nature with the most successful practices that the US and Europe has to offer in start-up development and mentoring, accelerators, and venture capital funding and investing.
Every year, VSV produce a ’Start-up Call’ from which they give investors access to more than 300 early stage start-ups in Việt Nam. From this pool, VSV go through a screening process and shortlist 30 start-ups that they feel have what it takes to succeed. They then invite potential investors to attend an ’Investor interview’ with the 30 start-ups to pick 10-20 teams. The teams will then be invited to participate in the VSV one month pre-boot camp programme. At the end of the month, VSV will make their final decision on which team will receive your investment and enter the VSV boot camp.
If you are a potential investor then it is well worth checking out the VSV website  at http://www.siliconvalley.com.vn/. — VNS
* Brian Spence is Managing Partner of S&P Investments. He has over 35 years of experience in the UK financial services industry as an investment manager, financial planner and M&A specialist. He is a regular contributor to the UK financial press and has a deep understanding of the financial services community. Brian’s column will reflect on all the challenges and opportunities within the Vietnamese market, bringing a fresh perspective to today’s hottest issues. The columnist’s email address is brian@sandpinvestments.com.

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Lawmakers debate corruption in private sector

Update: June, 13/2018 - 19:10

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NA deputies during the fifth NA meeting in Hà Nội today. — VNA/VNS Photo Phương Hoa

Viet Nam News
HÀ NỘI — National Assembly deputies continued discussions on the country’s amended anti-corruption laws today during the NA’s fifth meeting in Hà Nội.
While many deputies voiced support for the amended bill’s effort to address corruption in the private sector, others criticised the State anti-corruption force’s limited manpower and the bill’s legal complexity and feasibility.
Deputy Mai Thị Phương Hoa said corruption in the private sector had risen in recent years. According to a report released by the Vietnam Chamber of Commerce and Industry and the Development and Policies Research Centre, corruption was among the top five factors with the most impact on the country’s business environment.
“The private sector is often used to launder money gained from corruption from the public sector. An effective anti-corruption policy cannot afford to ignore the private sector,” Hoa said.
She also noted that "corruption in the private sector not only undermines domestic consumers’ trust in the country’s products and services, it also damages international investors’ faith in the economy because of the hidden costs of doing business".
Meanwhile, others advised caution as the top priority for the country to fight corruption in the public sector.
“The amended bill may include public companies and credit funds as they call for capital from the public but the public sector must remain our highest priority in the fight against corruption,” said deputy Lưu Bình Nhưỡng.
For the State’s anti-corruption forces, having too many targets to go after may be counter-productive now that the fight against corruption in the public sector is getting more difficult.
Deputy Nguyễn Thị Thủy questioned the lack of anti-corruption regulations for private businesses.
“It will be very difficult, to say the least, for private business as we have no legal framework for them to follow. In the absence of a clear guideline, there will be a lot of grey areas that inspection units can take advantage of to harass businesses, an issue the Government is trying very hard to address,” she said.
Another area where the bill may get even more complex is how it will deal with businesses with foreign shareholders, which have seen a sharp rise in number in the last two decades.
Of the total 1,800 public companies and 128 credit organisations that will be included in the amended law, many are owned in part or fully by foreign owners.
“Should foreign owners be found to be dishonest in their asset decleration forms, who will be responsbile for going overseas to verify the facts? Do the laws of their country of origins even allow that?” Thủy said.
Lawmakers urged the NA’s Legal Commission to continue working on the amended law to address the questions before the next meeting of the NA, typically scheduled before the end of the year.  — VNS

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Cannot wait for the Dong to increase in value.

SBV promises all efforts to achieve economic targets

Update: June, 14/2018 - 09:00

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The State Bank of Việt Nam will tweak monetary policy this year to help achieve the targets set by the Government and National Assembly.— Photo vietstock.vn

HCM CITY — The State Bank of Việt Nam will tweak monetary policy this year to help achieve the targets set by the Government and National Assembly.
“The SBV will strongly focus on the stability of the economy, resolving businesses’ problems, controlling inflation, ensuring liquidity of credit organisations and stabilising monetary and currency markets,” SBV deputy governor Nguyễn Thị Hồng told media in HCM City yesterday.
It would follow a pro-active and flexible monetary policy, cutting interest rates and working in close conjunction with fiscal and other policies to control inflation and support economic growth, she promised.
“To achieve this year’s credit growth target, the SBV must closely align with the government’s macroeconomic policies … to make suitable adjustments from time to time.”
In the first half of this year credit focused on production (12 – 13 per cent growth in agricultural lending), automation and engineering (24 per cent), technology (20 per cent), supporting industries (21 per cent) and import-export (15.6 per cent).
“Lending in the second half of this year will focus on the Government’s priority sectors such as agriculture, exports, supporting industries, small and medium-sized enterprises, and technology firms.”
Head of the central bank’s credit department, Nguyễn Quốc Hùng, said: “Lending to risky sectors such as real estate, securities and consumption will be limited.”
In the first half of the year interest rates on loans to several priority sectors decreased by 0.5 percentage points to 4 – 5 per cent.
Việt Nam’s foreign reserves have risen significantly, and the SBV has said it would try to increase them further besides stabilising the forex market.
Outstanding loans have increased by 6.16 per cent this year.
At the end of last March bad debts in the banking system had fallen to 2.18 per cent.
Administrative reforms are continuing, enabling individuals and enterprises to approach the banking system. The Ministry of Internal Affairs in fact said recently that the banking sector was leading the index of administration reform.
This is the third consecutive year that the sector has topped the index. — VNS
 

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