Bad debts approach $14.6 billion; VAMC looks to foreigners to help

The total bad debt of commercial banks has reached nearly VND308 trillion (US$14.6 billion), accounting for 9.71% of the total outstanding debt, deputy chief inspector of the State Bank of Viet Nam said; however, the figure had been revised to VND122 trillion ($5.58 billion), accounting for 3.86% of the total outstanding debt by the end of February after debt restructuring.

The National Financial Supervisory Commission (NFSC) had said earlier at a seminar that the bad debt was approximately 9% instead of the 15% assessed by the rating agency Moody’s.

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Continuing to reform the investment and business climate: Turning Words into Action

The event was organised by the National Assembly’s economic committee, the Viet Nam Academy of Social Sciences, the Viet Nam Chamber of Commerce and Industry and the Central Institute for Economic Management. Opening the event, chairman of the National Assembly’s economic committee, Nguyen Van Giau, asked experts to assess the feasibility of implementing the 2015 socio-economic targets approved by the National Assembly.He said the targets concentrated on removing difficulties in production and business, restructuring the economy and improving competitiveness, efficiency and capacity.

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Vietnam growth worst since 1980s seen on credit crunch

Vietnam needs new drivers of growthThe Asian Development Bank cut its forecast for Vietnam’s GDP growth this year to 5.5 percent from an earlier estimate of 5.6 percent. It lowered its estimate for next year to 5.7 percent from 5.8 percent.

The number of business closures increased 13 percent in the eight months through August from the same period a year earlier, government data showed. The number of new companies registered dropped 10 percent. Read more

Vietnam: Financial Sector Assessment, Strategy, and Road Map (ADB)

Vietnam Financial Sector Assessment, Strategy, and Road MapThis ADB sector assessment, strategy, and road map highlights the Government of Viet Nam’s plans and strategies for addressing priority needs for the financial sector and identifies possible preliminary areas of international assistance. It assesses key sector development needs by analyzing strengths, constraints and weaknesses, various risks, potential threats, as well as opportunities. This knowledge product serves as a basis for further dialogue on how ADB and the government can work together to tackle the challenges of managing financial sector development in Viet Nam in the coming years. Read more

Vietnam’s Policies and Financial Markets 2014 • Wed, Feb 26

Vu Viet Ngoan, Chairman, National Financial Supervisory CommissionMr. Vũ Viết Ngoạn, Chairman of the National Financial Supervisory Commission of Vietnam, will discuss Vietnam’s policies and financial markets in 2014.  Key issues regarding restructuring of the banking system, dealing with non-performing loans, and the outlook for financial markets’ impact on Vietnam’s macroeconomy as well as on business operations in Vietnam. The National Financial Supervisory Commission advises the Prime Minister about coordinating supervision of national financial markets (banking , securities , insurance), and helps the Prime Minister monitor national financial markets. Read more

Secretary of State John Kerry: Remarks to AmCham and Fulbright Economics Program

SecState John Kerry, Ambassador David Shear“I want to thank the American Chamber of Commerce. The American Chamber of Commerce Vietnam and the Vietnam Chamber of Commerce and industry have made just a gigantic difference here. AmCham’s experience in Vietnam has really ushered in a new era of cooperation for the bilateral trade agreement in 2001, to the WTO session in 2007, and now we are working on the TPP, Trans-Pacific Partnership. I’ll say a word about it.

But just think about this for a minute: Our bilateral trade has grown 50-fold, 50 times since 1995, to more than $25 billion a year now. Vietnam has the potential to become one of the United States’ leading economic partners in the region, and we’re going to continue to work at that. Read more

Vietnam’s Macroeconomic Stability Continues to Improve, Critical Risks Remain – World Bank: Taking Stock Dec 2013

World Bank logoNew WB Report says reenergizing medium-term growth will require renewed attention to a number of structural reforms, with focus on state owned banks and enterprises.

Taking Stock, a bi-annual assessment of Vietnam’s economy, identifies several critical risks to macro-economic stability, including: (i) low foreign exchange reserves; (ii) fragile private sector demand, (iii) possibility of departure from fiscal and monetary discipline; (iv) slow progress on structural reforms; and (v) loss of confidence in a fragile banking sector. Read more

SOEs equitization delayed; expected to miss IPO schedules

Equitization of SOEs in VietnamBig State-owned corporations look likely to miss their IPO (initial public offering) schedules set for this year due to prolonged economic difficulties and concerns over business valuations.

Corporations which had been expected to make IPOs this year include Vietnam Airlines and construction materials company Viglacera Corp. Both have now announced they have no plans to sell shares to the public from now until the end of the year. Vietnam Investment Review, July 13, 2013 Read more

National Assembly approves amended Constitution

Chủ tịch Quốc hội Nguyễn Sinh HùngThe State economic sector plays the leading role in the socialist-oriented market economy. Besides, the State economic sector includes many factors and resources and State-owned enterprises are just one of these factors. Therefore, the committee said that it is not necessary to make specific regulations for the State economic sector.

Nguyen Sinh Hung, NA chairman and chairman of the Committee for Drafting Amendments to the 1992 Constitution, admitted that different viewpoints remained on some articles of the draft but a majority of people and the NA reached a high level of consensus on the document. Other differing opinions will continue to be heard and studied on the path of national renewal, he said.

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Vietnam’s National Assembly meets Oct 21 – Nov 30, 2013

National Assembly, Oct 21 - Nov 30, 2013amid sluggish economic growth and slow progress in the restructuring of the banking system and state-owned enterprises.

Vietnam’s economic growth is expected to remain slow this year, after growing at the slowest pace in 13 years in 2012, largely due to a high ratio of bad debt in the banking system that prevents commercial banks from boosting their lending. The government expects this year’s growth at 5.3%, compared with 5.03% in 2012. Read more