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Vietnam projects call for nearly $60 billion in foreign funding

Long Thanh International Airport ConceptPrime Minister Nguyen Tan Dung has approved the list of national projects calling for outside funding from now to 2020.

The list consists of 127 projects divided into five groups: technical infrastructure; social infrastructure; agriculture; agricultural preservation and processing; and manufacturing & service.

The total capital called for by these projects is over $58 billion. Several individual projects are worth billions of USD, such as Khanh Hoa Province’s Nam Van Phong refinery in the Nam Van Phong Economic Zone, which needs up to $8 billion. For that project, foreign investors can contribute up to 75 percent of the capital.

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PM: Better conditions needed to attract investment

Prime Minister Nguyen Tan Dung has asked ministries, branches and localities to create favourable conditions to attract investment, especially foreign invested and high-tech projects. He said that more drastic structural reform measures are needed in public investment, state-owned enterprises and the banking sector.

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National Assembly Vice Chair: Structural Reform Needed

 

Vietnam inflation may have peaked; now the hard part

(Reuters) – Inflation may have finally peaked in Vietnam. Now comes the hard part for policymakers.

It is too early to start unwinding tight monetary policy but pressure to do so will no doubt rise quickly if, as some economists expect, inflation starts to ease in the next month or so.

The stability of Vietnam’s beleaguered $ 100-billion economy and its attractiveness to investors hinge on whether policymakers stick to their guns, economists say. Also on the line is the credibility of freshly-reappointed Prime Minister Nguyen Tan Dung and his new central bank chief, Nguyen Van Binh.

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AmCham sends letter to Prime Minister about Decree 46 on Employment of Foreigners Working in Vietnam

Hanoi, Jul 29, 2011. AmCham joined other foreign business associations and sent a letter to H.E. Prime Minister Nguyen Tan Dung expressing concern about some provisions of Decree No.46/2011/NĐ-CP (Decree 46), issued by the Government on 17th June 2011, which makes a number of major changes to Decree 34/2008/NĐ-CP dated 25 March 2008 on Employment and Administration of Foreigners Working in Vietnam.

Decree 46 will come into effect on Aug 1, 2011, and the foreign business community is concerned that the new Decree will discourage investment in Vietnam, and would like to seek a solution that satisfies both Vietnam’s need to control the labour market as well as foreigners’ freedom to hire their preferred staff without additional administrative burdens.

The AmCham letter, in particular, highlighted the fact that that Decree 46 imposes regulations that violate Vietnam’s international treaty obligations, specifically Chapter IV, Article 8.2 and 8.3 of the U.S.-Vietnam Bilateral Trade Agreement (“BTA”).

Please click here to read the full letter.

Government keeps focus on inflation control

Jul 2, 2011. The country’s focal task in the second half of 2011 is to continue synchronously implementing measures to curb inflation, stabilise the macro economy and ensure social welfare.

Prime Minister Nguyen Tan Dung made the affirmation at the government’s regular online meeting with localities on July 1 to discuss the country’s socio-economic situation in the first half of the year, the implementation of the Government’s Resolution 11 and programmes planned for the six months to come.

The government leader asked ministries, branches and localities to focus their efforts on keeping inflation rate at 15-17 per cent, credit growth under 20 per cent and trade deficit under 16 per cent.

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Vietnam looks to slash public spending

HANOI. Mar 31, 2011. Vietnam is expected to cut public investment by 50 trillion dong ($ 2.4 billion) or 7.4% this year, the central bank said Thursday, in its latest attempt to restore economic stability.

Prime Minister Nguyen Tan Dung, who met with state officials late Wednesday to review the implementation of anti-inflation measures announced last month, asked ministries, provinces and industries to reduce their investment capital in various projects, the central bank said in a statement posted on its website. By reducing investment levels, authorities are hoping to curb the amount of cash circulating in the economy, which in theory should cool growth and help bring inflation down.

Economist Vuong Quan Hoang from Hanoi-based DHVP Research & Consultancy said the government will find it very difficult to cut such a large amount of spending because many of the projects are run by groups with connections to government officials. “It’s not in interests of anyone to cut off the funding,” the economist said.

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Vietnam’s lawmakers oppose pruning economic growth target, criticize SOE’s

May 10, 2008. Most lawmakers disagreed with the government’s recent decision to trim the economic growth target and slammed state-owned corporations for their inefficiency at a National Assembly session Friday.

Referring to Prime Minister Nguyen Tan Dung’s opening remarks Tuesday, in which he called for lowering the growth target to 7 percent, legislator Duong Trung Quoc said it could only be a “temporary” solution.

“I suggest keeping the same growth target (between 8.5 and 9 percent) the assembly approved last year,” he said, adding the house must intensify its scrutiny of the government’s economic management.

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