[Round-up] Vietnam Posts Trade Gap of $217 Million on Jan 1-15, Credit Institutions May be Allowed to Go Bankrupt

Tuan Minh

18:14 22/01/2016

BizLIVE - Vietnam recorded a trade deficit of $217 million in the first half of January. The banking regulator may allow some ailing credit institutions to go bankrupt to accelerate the ongoing overhaul.

[Round-up] Vietnam Posts Trade Gap of $217 Million on Jan 1-15, Credit Institutions May be Allowed to Go Bankrupt

Vietnam’s GDP is predicted to grow 6.3%-6.4% in 2016, below an expansion of 6.68% in 2015, on concerns over China's economic slowdown.

Vietnam Runs Trade Gap of $217 Million in First Half of January
Vietnam had a trade deficit of $217 million in the first fortnight of January 2015, equivalent to 3.6% of total exports, the General Department of Vietnam Customs said in a report on Friday.
Foreign-invested enterprises posted a trade surplus of $559 million while domestic ones had a trade shortfall of $776 million.
The country’s exports increased 3.6% year-on-year to $5.95 billion between January 1 and 15 while its imports slid 0.5% year-on-year to $6.17 billion.  
HCM City Aims for Stronger FDI: Official
HCM City reckons foreign direct investment (FDI) plays an important role in its development, and therefore always seeks to effectively attract FDI, which amounted to $4.5 billion in 2015, said Le Thi Huynh Mai, deputy director of the municipal Planning and Investment Department.  
The city will attract FDI in knowledge and technology industries, supporting industries and bio-technology, she told the Vietnam News Agency.
Vietnam Treasury Sells $253.8 Million G-Bonds YTD
The State Treasury of Vietnam has sold 5.7 trillion dong ($253.8 million) worth of government bonds since the start of this year, after issuing 196 trillion dong ($8.71 billion) in government debt in 2015.
The treasury sold some 2.6 trillion dong ($115.7 million) in government bonds via an auction on the Hanoi Stock Exchange on January 20.
A Law for SMEs Needed: Govt Official
All supporting policies for small-and medium-sized enterprises (SMEs), which account for more than 95% of the total Vietnamese companies, should be included under one law, said Nguyen Hoa Cuong, deputy director of the Ministry of Planning and Investment’s Enterprise Development Agency.
Supporting policies for SMEs are scattered in many different documents, which makes it hard for enterprises to search for support policies, he added at a recent meeting in HCM City, according to the Vietnam News Agency.
SMEs in Vietnam stated their role in the country's economy by contributing more than 40% to gross domestic product (GDP), while attracting more than 50% of the total laborers, said Tran Ngoc Liem, deputy director of the Vietnam Chamber of Commerce and Industry (VCCI) in HCM City.
Moody’s Mulls over Downgrading Vinacomin’s Rating
Moody's Investors Service has placed the ratings of three mining companies in the South and Southeast Asia region, including Vietnam National Coal - Mineral Industries Holding Corporation Limited (Vinacomin), on review for downgrade.
Vinacomin’s long-term local currency corporate family rating at B2 is now placed on review for downgrade.
Vietnam Taxman Recovers $1.4 Billion through Inspections
Vietnam’s tax authorities conducted investigations and checks at more than 70,000 businesses, recovering 31 trillion dong ($1.4 billion) and contributing seven trillion dong ($311.8 million) in 2015.
The Ministry of Finance said the investigations focused on industries such as petroleum, gas, mineral exploration, and real estate trading, in addition to projects transfer, e-commerce and healthcare equipment, which could be involved in tax evasion and fraud.
Besides, the checks concentrated on enterprises which have enjoyed tax preferential, foreign-invested firms in Vietnam and those with signs of transfer pricing.
Bank Loans in Hanoi Grow 0.9% m/m in January
Total outstanding loans at banks in Hanoi in January have increased an estimated 0.9% from a month earlier to 1,249 trillion dong ($55.5 billion), the city’s statistics department said.
Total mobilization, meanwhile, has expanded 0.7% month-on-month to 1,393 trillion dong ($61.91 billion).
Vietnam May Allow Credit Institutions to Go Bankrupt
The State Bank of Vietnam (SBV), the country’s central bank, would consider allowing some weak financial companies and popular credit funds to declare bankruptcy this year, SBV Deputy Nguyen Phuoc Thanh has said.
The plan is to gradually inform the market about the bankruptcy in the banking system and warn bank owners to be much more serious in doing business, Mr. Thanh said.
Demand for high-end and near high-end beer in Vietnam is expected to rise sharply by 2020 and competition in this fast-growing market will become tougher, CEO Mikio Masawaki of Sapporo Vietnam Limited told BizLIVE.
The share of high-end beer will likely rise to 70% by 2020 from 55% currently. It means that consumers tend to choose high-quality and safe products, he said.
Vietnam’s gross domestic product (GDP) is predicted to grow 6.3%-6.4% in 2016, below an expansion of 6.68% in 2015, Vietcombank Securities (VCBS) said in a report released on Thursday.
Vietnam could face headwinds from the world’s tormenting economy, especially negative effects from China’s. “The adverse impact from the world’s second-largest economy is putting heavier pressure on the Vietnamese economy,” the securities firm noted.