Workshop backs SMEs in loan access, payment in foreign trade

Korea Development Bank (KDB) in mid-April signed a comprehensive cooperation agreement with Vietnam’s BIDV. Of equitized banks, BIDV now has the highest state’s ownership ratio, over 95%, which also means that the there is still room for foreign investors in the bank – 30% as stipulated by law. Since BIDV began listing its shares in 2014, the bank’s managers said it was looking for foreign partners and considering selling 25-30% of capital. BIDV’s CEO Phan Duc Tu recently confirmed that the bank wants to find foreign strategic partners. The biggest problem for the bank is that while it cannot sell stakes at prices lower than the market, investors want discount rates when buying a stake in large lots. Besides the South Korean partner, BIDV has one more partner, from Japan. Analysts commented that they may become strategic partners of the bank with the biggest total assets in Vietnam. Recently, Daegu, another large South Korean bank, signed a comprehensive cooperation agreement with Vietnam’s OCB, a joint stock bank. In the ROK, Daegu now holds 50% of the market share for providing loans to SMEs. According to OCB’s CEO Nguyen Dinh Tung, OCB hopes Daegu would give support to OCB in many different fields, from remittances, international payments to product and SME client development. In 2008, Shinhan became one of the first five 100% foreign owned banks licensed in Vietnam. In late 2011, to confirm its commitments to make long-term investment…... [read more]

Korea Development Bank (KDB) in mid-April signed a comprehensive cooperation agreement with Vietnam’s BIDV. Of equitized banks, BIDV now has the highest state’s ownership ratio, over 95%, which also means that the there is still room for foreign investors in the bank – 30% as stipulated by law. Since BIDV began listing its shares in 2014, the bank’s managers said it was looking for foreign partners and considering selling 25-30% of capital. BIDV’s CEO Phan Duc Tu recently confirmed that the bank wants to find foreign strategic partners. The biggest problem for the bank is that while it cannot sell stakes at prices lower than the market, investors want discount rates when buying a stake in large lots. Besides the South Korean partner, BIDV has one more partner, from Japan. Analysts commented that they may become strategic partners of the bank with the biggest total assets in Vietnam. Recently, Daegu, another large South Korean bank, signed a comprehensive cooperation agreement with Vietnam’s OCB, a joint stock bank. In the ROK, Daegu now holds 50% of the market share for providing loans to SMEs. According to OCB’s CEO Nguyen Dinh Tung, OCB hopes Daegu would give support to OCB in many different fields, from remittances, international payments to product and SME client development. In 2008, Shinhan became one of the first five 100% foreign owned banks licensed in Vietnam. In late 2011, to confirm its commitments to make long-term investment…... [read more]

NDO - A workshop was held on August 4, in the port city of Hai Phong, aiming to provide small and medium-sized enterprises (SMEs) with information that could facilitate them to access capital and avoid risks in international payment. The conference, hosted by the Trade Promotion Agency (Vietrade), under the Ministry of Industry and Trade, is part of a project to enhance the capacity of Vietnamese SMEs through a local trade promotion system funded by the Swish State Secretariat for Economic Affairs. Vietrade’s deputy director Do Kim Lang said globalisation and free trade have spurred export-import activities but Vietnamese enterprises, especially SMEs, remain inexperienced in mobilising funds. Vietnam has an estimated 700,000 enterprises, with SMEs whose revenues are below VND100 billion (US$4.4 million) accounting for nearly 98% and two thirds of these SMEs have revenues of VND20 billion or below. Although SMEs are in the majority, it remains hard for them to access capital and they are forced to seek non-official loans. In addition, due to increasing international integration, enterprises may face higher bad debt and greater payment risks if they are not equipped with the necessary information and experience in international transactions. Therefore in order to help SMEs, the workshop focused on topics such as financial management in export-import activities, financial solutions for exporters, risks in international payment and preventative measures and risks from exchange rate volatility. The Swiss project to enhance export competitiveness for Vietnamese SMEs through the local trade promotion system is a continuation of the project…... [read more]

First of all, we can affirm that in 2006 Vietnam successfully made a breakthrough to gain momentum for further development.The 10th National Party Congress held at the end of April defined orientations for Party activity and key tasks for national development, namely to improve the Party’s leadership capacity and fighting spirit, promote the national comprehensive Renewal process and to lift Vietnam out of its underdeveloped country status. Afterwards, the 9th session of the 11th National Assembly (NA) adopted the five-year plan for socio-economic development (2006-2010) to successfully realise the Resolutions of the 10th Party Congress. The NA also elected the State President, the NA Chairman and the Prime Minister.The Party Congress’s realistic and creative views and guidelines and NA decisions were supported by the entire Party and people to win major achievements in 2006. Vietnam’s socio-economic situation in 2006 was prominently featured as follows: First, the economy obtained a rather high growth rate of 8.2 percent, exceeding the set target of 8 percent and the average growth rate of the previous five years. Second, the State budget, investment and international payment was kept balanced and stable to improve the macro economic environment. Third, progress was made in poverty reduction and employment activities. The rate of poor households based on the new poverty line dropped from 22 percent in 2005 to 19 percent in 2006, even beyond expectations. Fourth, external economic activities reached a record level. Newly registered and additional foreign direct investment (FDI) totaled US$10.2 billion with more than US$3.7…... [read more]

Japan’s Finance Minister Jun Azumi said on May 29 that not using the dollar as an intermediate currency will help lower transaction costs and reduce settlement risks at financial institutions. The People’s Bank of China said that using the Yen and Yuan in bilateral trade will strengthen financial cooperation between China and Japan. With the new mode of trading, analysts say Chinese and Japanese companies will suffer from less foreign exchange risks. For China, this move marks a specific step toward realizing its ambition to internationalize the Yuan. Japanese companies will benefit by trading in the Yuan in other financial centers in London and Singapore where Yuan trading systems will soon be established. China is one of Japan’s largest trading partners, but about 60 percent of their mutual trade is denominated in US dollars. Bearing the brunt of the 2008 global economic crisis, slow development of the US economy and public debt crisis for which Japan and China’s exports were hard hit, the two countries realized the need to save costs in investment and reduce dependence on the US dollar. Last November, China and Japan signed a deal on direct exchange of their currencies which officially took effect on June 1 in Tokyo and Shanghai markets. The current shortcomings of the international financial system dependent on the US dollar trigger the need to restructure the system. The Yuan is considered to be the likely candidate to compete with the US dollar in international payment and reserves. Analysts forecast that in…... [read more]

Mr Trong noted that in the reviewed period Vietnam’s economy secured a 7.84 percent growth; the economy’s major balance such as budget balance, monetary and international payment balance remained stable; and more resources were mobilised for development investment. Progress was made in cultural, social, healthcare, education and training activities, as well as in scientific and technological development and application. The country’s political stability, national defence and social order were maintained. The enactment of the Law on Anti-corruption and the Law on Thrift Practice and Wastefulness Prevention regained people’s trust. Positive achievements were also made in external activities and international economic integration. The NA Chairman said the NA shared hardship with organisations, families and individuals over human and material losses caused by natural calamities, particularly the recent Typhoon Xangsane which had devastated central and Central Highlands provinces. He praised the Government for its efforts to mitigate the losses of the typhoon and called on Vietnamese people living inside and outside the country to provide physical and spiritual assistance to help typhoon victims stabilise their lives and resume production activities. During the session, Mr Trong said the NA will review the implementation of its resolutions on socio-economic development and budgetary tasks in 2006 and discuss budget estimates and allocations in 2007. The legislative body is expected to approve 11 draft laws, a resolution on law-making programme for 2007, a resolution on socio-economic development tasks for 2007, a supervision programme for 2007 and other resolutions. The NA will also consider reports drafted by…... [read more]

Mr Dung made the remark at the annual Consultative Group Meeting for Vietnam in Hanoi on December 14 with the participation of 50 foreign donors and 200 delegates representing ministries and Government agencies. He said that Vietnam has secured an annual economic growth rate of 7.5 percent during the past 20 years of implementing the Doi Moi (Renewal) process and more than 8 percent in 2005-2006. The number of poor households decreased by two percent annually between 2001 and 2005 and by three percent in 2006 alone, bringing the national poverty rate down to 19 percent. Mr Dung attributed the success to Vietnam’s poverty reduction efforts and effective assistance of bilateral and multilateral donors. This was the first time the Vietnamese Government leader has attended the CG meeting. During the two-day meeting, he will hold dialogues with donors to improve bilateral and multilateral relations with donors. In his speech, Minister of Planning and Investment Vo Hong Phuc reviewed Vietnam’s socio-economic development in 2006 and major solutions for fulfilling socio-economic development plan for the 2006-2010 period. He noted that in 2006 Vietnam has secured an economic growth rate of 8.1-8.2 percent – a level which is higher than the average rate of between 7.5-8 percent set for the five-year period till 2010. The major balances of the economy such as State budget, investment capital and international payment have remained stable with positive signs. Indices on Government debt and national foreign debt have stayed within the allowed safe limit. He said Vietnam…... [read more]

In his report delivered at the last session of the National Assembly in Hanoi on March 20, Mr Dung said in the past five years, the national economy developed steadily; progress was made in social and cultural activities, external relations and international economic integration; and national defence, security and socio-political stability was maintained. Perfecting the market economy institution Mr Dung said that during the last working term (2002-2007), the Government instructed ministries and agencies to finalise the legal system concerning the establishment, development and execution of the market economy. The Government submitted to the Party Central Committee and the National Assembly many socio-economic development programmes and draft laws and ordinances, and at the same time formulated a system of law-regulated documents detailing the implementation of approved laws and ordinances with the aim of creating a complete and transparent business and investment environment. New legal documents helped establish equal business relations, win investors’ trust and mobilise many domestic and foreign resources for national development. In addition to perfecting the legal system, Mr Dung said, the Government focused on measures to establish and operate markets synchronously and smoothly. The commodity, services and stock markets developed rapidly involving investors from different economic sectors, with the financial market gradually taking shape. Total retail of commodities and services turnover in the 2002-2006 period increased by nearly 19 percent annually, notably by 21 percent in 2006. The consumer price index in the 2001-2005 period rose 5.1 percent annually. As a result of proper solutions, the country’s…... [read more]

Reversing economic slowdown Mr Dung noted that the global financial meltdown and economic recession took a heavy toll on almost all countries, including Vietnam which was actively integrating into the world. Exports, investment and tourism services were the hardest hit. When the crisis began, Vietnam’s economy was already suffering the effects of measures taken to rein in runaway inflation in 2008, as well as the aftermath of natural disasters and epidemics. In addition, hostile forces continued to carry out subversive activities against the country. After consulting many experts, the government issued resolution No30 proposing a number of emergency measures to halt the economic slowdown, maintain steady growth and ensure social welfare. At the 5th session in May, the National Assembly approved the government’s proposal to shift the priority from curbing inflation to stopping the economic downturn. Mr Dung said that the objective has been achieved. Despite the global economic recession, Vietnam has stabilised its economy, achieved steady economic growth and increased resources for investment and development. GDP has increased steadily each quarter, from 3.14 percent in quarter I to 4.46 and 5.76 percent in quarters II and III respectively. Overall, the nine-month GDP rose by 4.56 percent and the figure is expected to reach 5.2 percent for the year, meeting the legislature’s set target. To do this, Mr Dung said the government has shifted from a “tight financial and monetary policy” to a “pro-active financial policy” and a “loose and flexible monetary policy”. Thanks to the recovery of productivity, total…... [read more]

The goal was announced at a monthly meeting in Hanoi on October 29-30. Prime Minister Nguyen Tan Dung and the cabinet members focused their discussion on the economic situation in October and the past 10 months. Positive effects of economic stimulus policies The cabinet agreed that in the past ten months of this year the macro-economy has been maintained, inflation has been controlled and State budget expenditures and international payments have all been covered. All economic stimulus policies have achieved practical results. PM Dung said this is a comprehensive policy to help the economy recover and increase. GDP increased by 3.14 percent in the first quarter, 4.46 percent in the second quarter, 5.76 percent in the third quarter and is expected to rise by 6.8 percent in the fourth quarter, reaching 5.2 percent for the whole year. The cabinet said the progress can be seen most clearly in industrial production. After a sharp decline in January (down 4.4 percent), the industrial sector has grown steadily for the past nine months. Altogether industrial production has risen by 7 percent in the 10 months. With positive signals from domestic and foreign markets, trade and service activities continue to achieve stable growth. Total retail and service revenue have increased by 18 percent compared to the same period last year. Exports in October were up 4.5 percent while the consumer price index rose by only 0.37 percent in October, 0.62 percent less than in September. Investment capital from the State Budget disbursed around VND14.6…... [read more]




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