Experts: Resilient infrastructure enhances economic growth

Representatives of ADB and TPBank shake hands after signing a trade finance agreement in Hanoi (Photo courtesy of TPBank) Hanoi (VNA) - Tien Phong Commercial Joint-Stock Bank (TPBank) has received 45 million USD from the Asian Development Bank (ADB)’s Trade Finance Programme (TFP), bringing the total to 75 million USD. The additional trade finance will help to considerably improve TPBank’s credit capacity in the market. Santosh Pokharel, TFP’s relationship manager, said the additional trade finance was decided after ADB reviewed TPBank’s details. TPBank General Director Nguyen Hung said ADB increased guarantees for TPBank by 2.5 times in a very short time, showing the foreign bank’s confidence in TPBank. Earlier, ADB provided TPBank with 30 million USD on May 24. [ABBank, TPBank join ADB trade finance programme] "The finance would help TPBank increase its presence in the international market, contributing to supporting its business customers to expand their transactions worldwide," Hung added. In addition to ADB, TPBank has been attractive to other foreign partners. Earlier, it received 18.3 million USD investment from IFC. TPBank has total assets of some 106 trillion VND (about 4.6 billion USD), 4,000 employees and an extensive network of 55 branches and transaction offices in Vietnam. Currently, with more than 1.5 million individual customers and businesses, TPBank has been asserting its position as a strong, sustainable and healthy bank in the country.-VNA... [read more]

Experts: Resilient infrastructure enhances economic growth
Vietnam is still facing difficulties in ensuring the counter funding for ODA transport projects, leading to sluggish implementation. Deputy Minister of Transport held talks with Eric Sidgwick Deputy Transport Minister Nguyen Ngoc Dong said at last week's meeting with Eric Sidgwick, country director of the Vietnam Resident Mission of the Asian Development Bank (ADB), that though many projects have been approved, they could not be developed because they have not been listed in the mid-term investment plan. For example, many packages of the Ben Luc-Long Thanh Expressway project have not yet access ADB loans which may cause difficulties for it to be completed in 2019. According to Sidgwick, Vietnam is getting a huge part in the ADB's investment portfolio in Southeast Asia. Eric Sidgwick pledges more ADB support for transport projects Talking about ADB's list of programmes and projects in Vietnam, an ADB representative said there are more than 60 projects in Vietnam worth over $9 billion, of which those in the transport sector make up 30 per cent. The total un-disbursed sum is $4.65 billion, with $2.1 billion from transport projects, accounting for 46 per cent. The projects include the Ben Luc-Long Thanh Expressway, the southern coastal corridor, Ho Chi Minh City Ring Road III, and the second upgrade of the Greater Mekong Subregion Northern transport network. ADB asked Vietnam to…... [read more]

Viet Nam’s business climate is anticipated to improve in the second half of 2017, but economic growth will be at 6.5 per cent, falling short of the Government’s target. Workers at the Regent Garment Factory Ltd. In Hai Duong City. According to the forecast of the National Centre for Socio-Economic Information and Forecast under the Ministry of Planning and Investment, economic growth in the remaining months will be fuelled by the improving global economy, investment climate, prospect of international integration and upbeat mood of businesses. The second half of 2017 will witness significant impact from the Government’s reform policies and efforts implemented in 2016, which will support businesses and boost investment higher than last year. The centre said economic growth will be positive when the three major drivers - agriculture, industry and services - all saw improvement. The services sector witnessed two-year high growth in the first seven months of this year, while the industry and construction sector is anticipated to continue recovery strongly, particularly the manufacturing and processing industry, along with a steady agricultural sector. Foreign direct investment (FDI) inflow is also anticipated to benefit from the improving investment climate coupled with the country’s intensive international integration as well as confidence of investors in the Vietnamese economy. The centre estimated disbursed FDI would total US$15.3 billion in 2017. “The increasing FDI inflow is expected to be a major driver for recovery of export growth in the entire 2017,” the report stated. GDP growth at 6.5 per cent However, the…... [read more]

Workers at the Regent Garment Factory Ltd. In Hai Duong City. – VNA/VNS Photo Tran Viet Viet Nam’s business climate is anticipated to improve in the second half of 2017, but economic growth will be at 6.5 per cent, falling short of the Government’s target. According to the forecast of the National Centre for Socio-Economic Information and Forecast under the Ministry of Planning and Investment, economic growth in the remaining months will be fuelled by the improving global economy, investment climate, prospect of international integration and upbeat mood of businesses. The second half of 2017 will witness significant impact from the Government’s reform policies and efforts implemented in 2016, which will support businesses and boost investment higher than last year. The centre said economic growth will be positive when the three major drivers - agriculture, industry and services - all saw improvement. The services sector witnessed two-year high growth in the first seven months of this year, while the industry and construction sector is anticipated to continue recovery strongly, particularly the manufacturing and processing industry, along with a steady agricultural sector. Foreign direct investment (FDI) inflow is also anticipated to benefit from the improving investment climate coupled with the country’s intensive international integration as well as confidence of investors in the Vietnamese economy. The centre estimated disbursed FDI would total US$15.3 billion in 2017. “The increasing FDI inflow is expected to be a major driver for recovery of export…... [read more]

Vietnam National Textile and Garment Group (Vinatex) has proposed the prime minister to allow the company to divest all state-owned capital as a measure to resolve difficulties in business. RELATED CONTENTS: PM urges Vinatex reform Textile sector growth surges Vietnam Airlines, Vinatex to go public in January Minister urges Vinatex towards better efficiency in 2017 Proposed to divest near VND2.7 trillion of state capital Six central ministries and departments have just received dispatches from the Government Office for their opinion on Vinatex’s proposal to divest all, nearly VND2.7 trillion ($119 million) state capital. The proposal was included in Vinatex’s document on resolving difficulties for its business addressed to the PM. Le Tien Truong, general director of Vinatex, shared that the company has officially completed its equitisation in January 2015, with the chartered capital of VND5 trillion ($220 million) and state capital ownership ratio of 53.49 per cent, an equivalent of VND2.67 trillion ($117.5 million). However, according to the PM’s Decision No.58/2016/QD-TTg, Vinatex is not on the list of companies where the government plans to retain a controlling shareholding. “To meet the development requirements of this new era, Vinatex needs shareholders with professional management and market development capabilities to support the group in management and sales. Thus, the group proposes that the PM consider allowing the divestment of state capital in Vinatex,” Truong…... [read more]

A view of Vincom Mega Mall Times City in Ha Noi. — Photo vinhometimescity.net Vincom Retail, the Vietnamese mall operator under the property and retail conglomerate Vingroup JSC, plans to launch its initial public offering (IPO) this year, according to Bloomberg. The company aims to mobilise about US$600 million through the sale, which may include a sale of existing shares as well as new stock, people with knowledge of the matter told Bloomberg. Vincom Retail is preparing to raise funds as economic growth in Viet Nam raises living standards and increases shoppers’ disposable incomes. The benchmark VN Index this month hit its highest level since 2008, while the Asian Development Bank forecasts the nation’s economy will grow 6.3 per cent this year. The $600 million offering of Vincom Retail is expected to become the country’s second largest IPO in a decade, trailing only the 2007 share sale from Joint Stock Commercial Bank for Foreign Trade of Viet Nam when it was selected for a government pilot programme for equitisation in the banking sector. The last IPO that topped $100 million came from local airline VietJet Aviation JSC, whose shares are up 48 per cent since they started trading in February. The exact size of the Vincom Retail offering hasn’t been set yet, and the timetable for the listing could slip, the people told Bloomberg. Viet Nam News contacted Vingroup representatives for confirmation, but they declined to comment. The global…... [read more]

Prime Minister pins high hopes on private sectorTruc Diem Prime Minister Nguyen Xuan Phuc (2nd, L, first row) and other officials at the second Vietnam Private Sector Forum in Hanoi, with some 1,000 delegates from the private sector, ministries and institutions attending- PHOTO: CHINHPHU.VN HANOI & Prime Minister Nguyen Xuan Phuc, in his keynote address at the second Vietnam Private Sector Forum (VPSF) in Hanoi on July 31, called for private enterprises to further develop entrepreneurship to help develop the national economy. The private sector should strive to boost its contribution to gross domestic product to 50%-60% in the coming years compared to the current 43%, the Government leader told the 1,000-strong forum. In order to realize that vision, private enterprises need to take bold steps to expand business, and penetrate those areas whose products and services are in great demand globally, he said. Enterprises should set forth long-term visions to global markets, focusing their resources to develop business in sectors that are in great demand in global markets… instead of simply consenting on their roles as suppliers or subcontractors to big local and international corporations, Phuc told the forum. The Government is consistent on its goal to become an enabling Government, which will walk side by side with enterprises, and protect their legitimate…... [read more]

The results of the CEO Confidence Index (CEO.CI) survey, launched for the first time at the second Vietnam Private Sector Forum 2017 (VPSF), reported 58 out of 100 points, quite low compared to the expectations of investors and enterprises. VPSF 2017 will centre its activities around the survey results Among the survey index results, the figure expressing the evaluation of investors and enterprises of the Vietnamese business environment was 46 points. Besides, between 33-37 per cent of surveyed enterprises see advantages in their business sectors in Vietnam and 63 per cent admitted intentions to expand their operations in Vietnam in the next two years. 44 per cent of respondents lost opportunities for business operation due to legal barriers, including administrative procedures, tax policies, as well as difficulties in land access and capital arrangement. These are general barriers, but there are numerous specific problems in three key areas discussed at the forum, namely agriculture, tourism, and the digital economy. The negative results of the CEO.CI show the modern thinking of the young businessmen of the Vietnam Young Entrepreneurs’ Association (VYEA). They dare to speak the truth to look for solutions to improve the business environment in Vietnam. Notably, they proposed a list of short- and long-term solutions for each sector. These solution were collected from consecutive dialogs between the survey group and representatives of ministries, departments, and leaders of cities and provinces. The survey…... [read more]

The second Vietnam Private Sector Forum (VPSF), chaired by Prime Minister Nguyen Xuan Phuc, is scheduled to be held on July 31 at Melia Hanoi. The first Vietnam Private Sector Forum in 2016 With the theme “From the Party Central Committee's Resolution 5 to the Action Programme of the Private Sector in Vietnam,” the forum will focus on discussions and dialogue between the government and the private sector in three key areas: agriculture, tourism, and the digital economy. Besides, trade facilitation, which is considered essential to the development of economic sectors, will be an important topic for discussion. In the framework of the forum, the signing ceremony of a memorandum of understanding (MoU) between the Vietnam Young Entrepreneurs’ Association (VYEA) and the Mekong Business Initiative (MBI) will be held to co-operate to develop the forum in the upcoming years. After the forum, the organisation board will publish VPSF’s White Book in August. This year the forum will welcome 1,000 delegates, representing the government, ministries, departments, leaders of cities and provinces, international organisations, and business associations, as well as economic experts and numerous CEOs from Vietnamese and foreign enterprises. VPSF is an initiative of VYEA and MBI, funded by the Asian Development Bank (ADB) and the Australian Government. The forum is considered a bridge between the government, public authorities, and the private sector for continuous and close consultation on public and private…... [read more]

The signs of campaigning for modernization can be seen in the rapid development of commercial projects such as Hanoi's Royal City, Vincom Village, Indochina Plaza and the continued construction of skyscrapers like the Lotte building on Dao Tan. The face of Hanoi is undoubtedly undergoing a drastic transformation but this transformation is not without its challenges. To stimulate growth and development, Hanoi is inevitably focused on solving its infamous traffic problem. Anyone who travels around the city can see that the existing infrastructure is struggling with the heavy burden placed upon it by the growing number of motorbikes, buses, trucks and cars. The population of the city is growing, as more and more Vietnamese people leave their rural towns and villages and swarm to Hanoi in search of new beginnings and opportunities. With a growth in population comes a corresponding rise in traffic. This is leading to severe traffic congestion on the road, not to mention an increase in air pollution. All of these problems are combined to lower the quality of life in the city and disrupt the economic development that Hanoi authorities aspire so desperately for. Air quality is already commonplace and Hanoi certainly does not want to find itself dealing with the levels of air pollution that plague many urban areas of China. With such grand ambitions, Hanoi authorities have already made preparations to remove infrastructural limitations. The rapid construction of flyovers at some of Hanoi's biggest intersections is part of their plan. For instance, a flyover…... [read more]



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