Sacombank to recoup VND20 trillion of bad debts in 2017

A transaction at Sacombank. The bank aims to tackle 20 trillion VND (880 million USD) of bad debts in 2017 (Photo: VNA) Hanoi (VNA) – The Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) aims to tackle 20 trillion VND (880 million USD) of bad debts in 2017, with the bank taking drastic measures to implement a restructuring scheme, said its chairman Duong Cong Minh. Minh believed that bad debt settlement will be effective due to upbeat signs in the property market, the National Assembly’s legal provisions for bad debts and the bank’s restructuring project. The bank’s profit before taxes was estimated at 428 billion VND (18.8 million USD) in the first half of the year, up 70.4 percent year-on-year, according to the bank’s report. Its total assets stood at nearly 353 trillion VND (15.5 billion USD). During the first six months, customer lending and capital mobilised from individuals and economic organisations exceeded 212 trillion VND (9.3 billion USD) and 317 trillion VND (13.9 billion USD), up 10.1 percent and 9.7 percent from the outset of the year, respectively. The bank tackled 845 billion VND (37.2 million USD) of non-performing loans in the period and bought back 247 billion VND (10.9 million USD) in non-performing loans from the Vietnam Asset Management Company. Chairman Minh shared the bank’s restructuring scheme, including shaking up bank organisation and human resources and re-arranging transaction networks and branches was based on the strategy “developing rural areas…... [read more]

NDO/VNA - Speaker of the Parliament of Bangladesh Shirin Sharmin Chaudhury left Hanoi on July 24, successfully concluding her five-day official visit to Vietnam, made at the invitation of National Assembly Chairwoman, Nguyen Thi Kim Ngan. During her stay, she held talks with NA Chairwoman Ngan, and paid courtesy visits to Party General Secretary Nguyen Phu Trong and President Tran Dai Quang. She also paid tribute to late President Ho Chi Minh at his mausoleum and laid wreaths at the Monument to War Heroes and Martyrs. During her discussions, both sides agreed that the two countries’ traditional friendship and multifaceted cooperation have developed continuously since they first established their diplomatic ties 44 years ago. The political relations between the two countries have been tightened through regular visits and meetings. The two countries have always supported each other in their national building and safeguarding and economic development, as well as closely coordinating at regional and international forums. Both sides also reached a consensus that Vietnam and Bangladesh should intensify experience sharing, to help each other in gender equality and poverty reduction, and to cooperate in the fields of defence, aquaculture, education-training, culture and tourism. To achieve the goal of US$1 billion in two-way trade, the two countries will intensify trade and investment promotion, whilst creating favourable conditions for businesses to take part in fairs and exhibitions held in each country. Regarding the two legislatures’ relations, they agreed to maintain high-level delegation exchanges to share…... [read more]

The central bank on July 21 held an online conference to prepare for the implementation of the scheme to settle non-performing loans (NPL) and restructure credit institutions in the 2016-20 period. The central bank ​on July 21 held an online conference to prepare for the implementation of the scheme to settle non-performing loans and restructure credit institutions in the 2016-20 period. Addressing the discussion, State Bank of Vietnam (SBV) Governor Le Minh Hung talked about the implications of the National Assembly resolution on NPL settlement approved last month and Prime Minister Nguyen Xuan Phuc’s Decision 1058/QĐ-TTg on credit institutions restructuring in the 2016-20 period issued on July 19, which gave the scheme the green light. Besides bad debt settlement, the scheme lists objectives, principles, solutions and itineraries to restructure the system of credit institutions in the period. To implement it, Hung has asked all credit institutions to map out their own restructuring plans and submit it to relevant management agencies for approval. In their restructuring plans, institutions have to look at and assess their own finances, corporate governance, shareholders and charter capital ownership status.  They have to also detail the objectives, orientations and solutions proposed for their restructuring and for bad debt settlement for each year. Hung has instructed all credit institutions to set up steering committees focused on these issues so that they can spot and report hurdles in the implementation process to the central bank without any delay. As the process of restructuring credit institutions and settling bad…... [read more]

Customers purchase petrol at a station on Tran Quang Khai Street, Ha Noi. - VNS Photo Thai Ha The Ministry of Finance (MoF) is going ahead with its plan to increase environmental protection tax on petroleum from the current VND1,000-4,000 to VND3,000-8,000 per litre, despite objections from other ministries and the public. In its second draft of the Law on Environmental Protection Taxes announced last week, the ministry proposed a tax hike on fuel consumption of VND3,000-6,000 per litre for aviation fuel, VND1,500-4,000 per litre for diesel, VND300-2,000 per litre for kerosene, and VND900-4,000 per kg for mazut. If the new tax rate is applied, the price of gasoline at the pumps will rise to around VND22,000 (roughly US$1) per litre from the average price at the pump of around VND16,000 to VND17,000 for petrol and VND10,000 to VND11,000 for diesel and mazut, respectively, analysts said. The Ministry of Transport (MoT) told the Ministry of Finance (MoF) that Viet Nam would apply two petroleum quality standards based on the Euro 2 and Euro 4 emission standards, suggesting that the MoF set a lower environmental protection tax for Euro 4, which cleans emissions from diesel cars, to encourage the production of more eco-friendly petroleum. The Viet Nam National Petroleum Group (Petrolimex) said the calculation of environmental protection tax on fuel should encourage E5 bio-fuel consumption. The Viet Nam Petroleum Association (VINPA) has supported the MoF’s tax proposal, though it has pointed out…... [read more]

NDO - A Nhan Dan Online selection of notable events that made headlines over the past week. 1. Party General Secretary pays State visit to Cambodia Party General Secretary Nguyen Phu Trong and a delegation of high-ranking Vietnamese officials paid a State visit to Cambodia from July 20-22 at the invitation of Cambodian King Norodom Sihamoni. During his stay in Cambodia, Party General Secretary Nguyen Phu Trong held talks with Cambodian King Nodorom Sihamoni, meetings with Vice President of the ruling Cambodian People’s Party (CPP) and President of the Senate of Cambodia Samdech Say Chhum, Honorary President of the Cambodian People’s Party (CPP) and President of the National Assembly Heng Samrin, and Cambodia’s Prime Minister Samdech Hun Sen. He also attended an inauguration ceremony of the Vietnam-Cambodia Friendship Monument in Preah Sihanouk province. 2. Laos Vice President visits Vietnam General Secretary Nguyen Phu Trong (R) receives Lao Vice President Phankham Viphavanh, July 18, 2017 - Photo: VNA Vice President of Laos, Phankham Viphavanh, visited Vietnam to attend the 55th anniversary of Vietnam-Laos diplomatic ties and the ceremony marking 40 years since the signing of the Vietnam-Laos Treaty of Amity and Cooperation. The Vice President of Laos attended meetings with top Vietnamese leaders including Party Chief Nguyen Phu Trong, President Tran Dai Quang, National Assembly Chairwoman Nguyen Thi Kim Ngan, and PM Nguyen Xuan Phuc. 3. Vietnam, Thailand boost political-security cooperation A Vietnamese delegation, led by Deputy Minister of Public Security, Senior Lieutenant General Bui Van Nam, participated in the…... [read more]

NDO – An arts programme, entitled ‘The Sacred World of Dong Loc’, was held at the Dong Loc T-junction historical relic site in the central province of Ha Tinh on July 23 to mark the 70th anniversary of the Wounded and Fallen Soldiers' Day (July 27, 1947-2017). The programme, which was co-organised by Nhan Dan (The People’s) Newspaper, Ha Tinh province and Vietnam Television, was attended by Prime Minister Nguyen Xuan Phuc. Addressing the programme, member of Party Central Committee (PCC) and Editor-in-chief of Nhan Dan Newspaper Thuan Huu emphasised that the great sacrifice and contributions of heroic martyrs will be forever highlighted in the country’s history while always being remembered as a source of pride and encouragement among all generations of Vietnamese people. He also underlined the sacrifice of ten young female volunteers who laid down their lives to safeguard the transport route linking to the southern front on July 24, 1968 at the Dong Loc T-junction. The programme featured songs and dances recalling the heroic sacrifice of the young volunteers as well as praising the Party, President Ho Chi Minh and the country, as well as Ha Tinh province in particular. A performance at the programme At the programme, Chairman of Ha Tinh provincial People’s Committee Dang Quoc Khanh noted that the heroic tradition, particularly the victory of Dong Loc T-junction, has become a great spiritual resource of encouragement to the local Party, army and people to overcome all difficulties in developing the province. At the programme,…... [read more]

The Ministry of Finance (MoF) is going ahead with its plan to increase environmental protection tax on petroleum from the current VNĐ1,000-4,000 to VNĐ3,000-8,000 per litre, despite objections from other ministries and the public. Customers purchase petrol at a station on Trần Quang Khải Street, Hà Nội. - VNS Photo Thái Hà In its second draft of the Law on Environmental Protection Taxes announced last week, the ministry  proposed a tax hike on fuel consumption of VNĐ3,000-6,000 per litre for aviation fuel, VNĐ1,500-4,000 per litre for diesel, VNĐ300-2,000 per litre for kerosene, and VNĐ900-4,000 per kg for mazut. If the new tax rate is applied, the price of gasoline at the pumps will rise to around VNĐ22,000 (roughly US$1) per litre from the average price at the pump of around VNĐ16,000 to VNĐ17,000  for petrol and VNĐ10,000 to VNĐ11,000 for diesel and mazut, respectively, analysts said. The Ministry of Transport (MoT) told the Ministry of Finance (MoF) that Việt Nam would apply two petroleum quality standards based on the Euro 2 and Euro 4 emission standards, suggesting that the MoF set a lower environmental protection tax for Euro 4, which cleans emissions from diesel cars, to encourage the production of more eco-friendly petroleum. The Việt Nam National Petroleum Group (Petrolimex) said the calculation of environmental protection tax on fuel should encourage E5 bio-fuel consumption. The Việt Nam Petroleum Association (VINPA) has supported the MoF’s tax proposal, though…... [read more]

NDO – The 14th National Assembly passed the 2017 Law on Tourism (amended) at its third meeting on June 19, creating a clear legal corridor, driving force and favourable conditions for tourism development. Containing many new points, the Law on Tourism (amended) is expected to bring about positive effects, improving the quality and competitiveness in tourism activities in Vietnam. Developing tourism into a spearhead economic sector One of consistent points of view in the 2017 Law on Tourism is to consider tourists as the centre of all tourism activities. Many relevant contents, including regulations on the responsibility of People’s Committees at all levels and management boards of tourism destinations; business activities of organisations and individuals in the field of travel service; tourist accommodation and tour guides; and the business of other travel services, have been adjusted and supplemented in order to ensure the security, safety, and the legitimate rights and interests of tourists, as well as creating favourable conditions for visitors. Domestic tourism has developed rapidly over the course of the past few years, however, due to a lack of regulations on licensing, many organisations and individuals have not set up business, or have not announced when their business will commence, to the provincial tourism authorities. In addition, many travel enterprises have cut down on their programmes and services, as well as not ensuring the quality of their services, causing disorder and unfair competition. Therefore, in order to ensure the interests of domestic tourists, the 2017 Law…... [read more]

Government wants higher budget limit, more bonds Tu Hoang By Tu Hoang - The Saigon Times Daily HANOI – The Government, facing a lack of capital for half-done infrastructure projects, on Wednesday made formal bids at the National Assembly (NA) sitting to tap more financial sources to make up for the shortfall. The ministers of Finance and Planning and Investment, on behalf of the Government, proposed the NA to loosen the purse string by raising the budget deficit to 5.3% of gross domestic product on one hand and issuing an additional VND170 trillion of Government bonds. Minister of Finance Dinh Tien Dung proposed in the afternoon session that the NA allow for raising the budget deficit to 5.3% of GDP instead of 4.8% approved earlier by the law-making body. If the proposal is approved, the Government will have an additional VND20 trillion, or nearly US$1 billion, for its spending. The Finance Minister also suggested that the Government make use of other financial sources, including 75% of profits from oil and gas, and all dividends generated from State stakes in enterprises that have not been transferred back to the State Capital Investment Corporation. Such financial sources are expected to help cover the shortfall in State budget revenue this year. According to a report of the Government, the total budget revenue this year is estimated at VND752 trillion, or nearly US$36 billion, which is some VND64 trillion lower than targeted. This would be the first time in as many years the budget…... [read more]

Restructuring plan highlights reallocation of resources By Tu Giang - The Saigon Times Daily HANOI – Resource reallocation is the major focus of the economic restructuring program that will be tabled at a meeting of the National Assembly Standing Committee in Hanoi on Thursday. The NA committee will scrutinize the most complex scheme at present, called “Economic restructuring in association with paradigm shift towards higher efficiency, capacity and competitiveness of the economy in the period 2011-2015, with a vision to 2020”. The program is aimed to transfer the resources of the economy from low-efficiency sectors to high-efficiency ones, said the program’s co-author. The main focus of the scheme is resource reallocation, in a bid to boost efficiency, capacity and competitiveness of the economy, said Nguyen Dinh Cung, deputy head of the Central Institute for Economic Management (CIEM), one of the composers of the scheme. Multiple sectors get involved in the scheme, such as credit system, stock market, and State-owned enterprises, signaling another economic reform ahead, he said. “Restructuring public investment, State-owned enterprises and financial system is the initial step to give a signal to the market, so as to reallocate the resources of the economy from low-efficiency and low-capacity sectors to high-efficiency and high-capacity ones,” said Cung. The scheme suggests 13 solution groups, including two special ones, to better the macro-economic environment, creating foundations for economic restructuring. One of the two special solution groups emphasizes the need to achieve the macro-economic targets in a stable and sustainable way. In addition,…... [read more]




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