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

Vinatex delays IPO again

Vinatex logoFrom Jul 22 to September 30. In a previous move in 2013, Vinatex pushed its IPO date back by a year to July 22, 2014.

The reason, according to Vinatex, is that potential investors did not have enough time between roadshows and the deadline for receiving bids to effectively research Vinatex and come to a decision.

Therefore, to give potential investors more time, Vinatex asked for and received permission from the prime minister to push the IPO to September 30. 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

127 SOEs incur $61.32 billion debts

Vinalines 68-yr old floating doc, Go Dau port, Dong Nai - photo credit: Tuoi TreTotal debts as of the end of 2012 of the 127 state groups and corporations topped VND1,300 trillion, or US$61.32 billion, a government report shows. The government admitted that the business effectiveness of these businesses do not live up to their operating scale and assets. 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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ADB to provide $50 million loan to support SMEs in Vietnam Asian Development Bank (ADB) and the Vietnamese Government signed an agreement on November 22 providing a 50 million USD concessional loan for fostering the development and competitiveness of small and medium-sized enterprises (SMEs) in Vietnam.

“While the Government made great efforts to enhance policy reforms to support the creation, survival and growth of SMEs, more needs to be done to foster a greater scale of SME development essentially required for the country to achieve more sustainable and inclusive growth,” said ADB Country Director for Vietnam Tomoyuki Kimura. Read more

Prime Minister’s Dialogue with Entrepreneurs – AmCham Statement, Oct 13-14, 2004

Herb Cochran, Executive Director, AmCham Vietnam

AmCham feels obliged to raise a delicate but critical issue, the issue of corruption, which is a widespread phenomenon that undermines good governance, erodes the rule of law, hampers economic growth and efforts for poverty reduction and distorts competitive conditions in business transactions. We will not remind participants here about the many recent cases, across many industry sectors, including agriculture, telecommunications, road construction, oil and gas, and most recently textiles and apparel.”

Comment by Prime Minister Phan Van Khai (Tiếng Việt – Vietnamese) (English translation)

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Vietnam firms aid corruption with unsolicited bribes

blog_vn_corruption Rats bribe a catSeventy-five percent of businesses in Vietnam pay bribes to  government agencies on their own volition in order to avoid being stuck in red tape, a World Bank specialist says. According a the survey conducted by the World Bank and the Government Inspectorate last December , businesses felt that corruption had gotten worse since 2005. Tax authorities received the largest amount bribes, followed by customs and transportation officials, the survey found. Read more