Asian Development Bank Backs Vietnam’s Growth
The Asian Development Bank (ADB
) is committed to supporting Vietnam in stabilizing macroeconomics, curbing inflation, sustaining economic growth and achieving the upper middle income status in the next 20 years, stated ADB Vice President Stephen Groff.
He made the pledge at a meeting with Prime Minister Nguyen Xuan Phuc in Ho Chi Minh City on October 3, on the sideline of the Vietnam Summit 2016 on external economic ties, the Vietnam News Agency (VNA) reported.
Vietnam to Renew Growth Model for Competitiveness
Vietnam will continue to renew the growth model and enhance growth quality to improve economic productivity and competitiveness, the Communist Party of Vietnam stated in a resolution issued in Hanoi on Tuesday.
The resolution said the country will maintain inflation rates below 5% per year and reduce state budget overspending rates to less than 4% of gross domestic product (GDP
) by 2020, and about 3% of GDP by 2030.
Aboitiz’s Pilmico Buys out Vietnam Feed Firm Partner
Pilmico Foods Corp., the food arm of conglomerate Aboitiz Equity Ventures Inc., has taken over its joint venture firm in Vietnam to strengthen its presence in the Vietnamese market as a part of the group’s strategy to expand in the Southeast Asian region.
In a disclosure to the Philippine Stock Exchange on Wednesday, AEV said Pilmico, through its subsidiary Pilmico International Pte. Ltd., has acquired 100% ownership in the partnership company Pilmico Vietnam Trading Company Limited for 888 million dong ($39,782).
Lotte to Invest in Vietnamese Startup Community
Lotte Group will invest $1 million to support the Vietnamese startup community over the next five years, VNA reported, citing Lee Jong Kook, director of external affairs of Lotte Group in Vietnam.
“In South Korea, Lotte Accelerator has experience in incubating startups. So Lotte wants to bring this experience to support new businesses in Vietnam,” said Lee.
Vietnam to Target Power Plants as Privatization Process Speeds up
Vietnam is pushing to speed up the privatization of power plants under three state groups that control its energy sector with an aim to cut government ownership by 2020, signaling its commitment to raise funds and improve efficiency, Reuters reported.
Hanoi has been striving to trim stakes in state-owned enterprises, many of which have low profitability, but progress has been slow given small stakes on offer, sizable state control and concerns about vested interests.
Thai Lion Air Ventures into Vietnam
Thai Lion Air has added a new daily service between Bangkok Don Mueang and Ho Chi Minh City. This is the airline’s first route to Vietnam which is already served by Thai AirAsia with three daily flights and by Nok Air with double-daily flights.
Belarusian Buses, Trucks to be Assembled in Vietnam
Enterprises to assemble passenger and cargo vehicles of the Belarusian automobile engineering company MAZ will be set up in Hanoi, Vietnam, according to documents recently signed during the 13th session of the Belarusian-Vietnamese intergovernmental commission.
The Belarusian-Vietnamese truck assembly enterprise MAZ Asia will start operating this year. It will be able to assemble 1,500 vehicles per annum, according to BelTA.
Vietnamese Govt Should Cut State Stakes in Banks to 51%: Economist
The Vietnamese government should cut its stakes in state-controlled banks to around 51% from 84% on average currently to ensure security and improve competitiveness within the banking sector, said financial expert Can Van Luc.
The government should reduce its majority stakes in public sector banks to remove constraints on the state budget, because as a major shareholder, the government is forced to use taxpayers’ money to ensure liquidity for these four big lenders, Luc explained.
Vietnam reported a state budget deficit of 159.5 trillion dong ($7.14 billion) in the ten months through October, or 62.8% of the year’s estimate. As much as $5.86 billion was spent on repayment of debts and aids in the period, according to the finance ministry.
A high-level delegation of 42 agri-food businesses from the European Union (EU) led by Commissioner for Agriculture and Rural Development Phil Hogan are in Vietnam to promote their products in a market of 92 million people, with half of them set to become middle-income earners by 2020.
The companies come from 15 countries and six associations in Europe, and operate in the dairy, beverage, meat, vegetable and fruit fields. The notable names include the Scotch Whisky Association, Belgian Fruit Valley, Pernod Ricard, Doux S.A., and the Italy Association of Apple Production.
Weaker external demand and the burgeoning fiscal deficit are among factors that may keep Vietnam’s economy from growing at the desired pace in the medium term, HSBC said in a reported released Tuesday.
Vietnam’s trade performance is likely to remain impressive in the near term but it could slow if key industrial economies fail to gather pace, or if China, the country’s biggest trade partner, slows, the UK bank warned.