Experts have voiced that Vietnam should simplify administrative procedures, eliminate unnecessary licenses, and facilitate transparent policies to attract both foreign and domestic investors.
[Round-up] Experts Urges Vietnam to Accelerate Tax, Customs Reforms, Transparent Policies
Vietnam is urged to further streamline tax procedures.
Vietnam Needs to Accelerate Tax, Customs Reforms
Taxation and customs general departments must simplify their administrative procedures and eliminate unnecessary licenses to attract more overseas Vietnamese investors, the Vietnam News Agency (VNA) cited experts as saying.
“Vietnamese taxation and customs policies were reformed in recent years to create favorable conditions for local and foreign enterprises to do business,” Peter Hong, deputy chairman of the Business Association of Overseas Vietnamese, said.
Transparent Policies Needed to Draw Foreign Capital into Stock Market
Clear, transparent and efficient policies are needed to encourage more foreign investors to jump into the Vietnamese securities market if it is to reach its considerable potential.
Although Vietnam has been among the seven fastest-growing in the world in the past two years, and over 1.86 million accounts have been opened so far, only 1.1% of them belong to foreign investors, showing the market could absorb more foreign investors. “We saw foreign investors escape from the local securities market in 2016, but they have returned with focus on both stock and bond markets,” said Tran Van Dung, chairman of the State Securities Commission.
Central Bank Believes Regulations Strong Enough to Control Risks
Governor of the State Bank of Vietnam (SBV) Le Minh Hung on November 17 said the SBV has solutions to control credit for risky sectors like securities and real estate, elaborating that it may adjust the rate of short-term capital used to provide medium- and long-term loans or only give loans to social and low-income housing segments.
Meanwhile, only banks with bad debt percentage of under 3% are allowed to provide loans for the field of securities. Loans for investment in securities must be within 5 percent of banks’ charter capital. Therefore, the central bank believes that these regulations are strict enough to control risks, he added.
Banks Fail to Meet Businesswomen’s Capital Needs: Study
A new study by the International Finance Corporation (IFC) under the World Bank has found that only 37% of women-owned SMEs in Vietnam have accessed bank loans in the last two years, compared to 47% of male business owners, according to VNA.
The study authors urged banks to design uniquely tailored products and services for women-owned small- and medium-sized enterprises (SMEs) in order to support the under-tapped potential of this segment.
WEF to Propose Policies for Vietnam to Seize Make Use of IR 4.0
The World Economic Forum (WEF) will build a report proposing policies for Vietnam to improve competitiveness and prepare all necessary conditions to optimize opportunities and benefits from the Fourth Industrial Revolution (4IR).
Deputy Minister of Foreign Affairs Bui Thanh Son revealed the information at a workshop held by his ministry and the WEF in Hanoi on November 17.
Vietnam, Hong Kong Hold Great Potentials for Economic Cooperation
Benjamin Chau, Deputy Executive Director of the Hong Kong Trade Development Council, said at the press conference that Vietnam and Hong Kong (China) have many advantages that supplement each other in the field of commerce.
Vietnam’s exports include garments-textiles, electronic products, farm produce, food and handicrafts. Meanwhile, Hong Kong has been known as one of the busiest trade centers in Asia and the world as well, he said.
Vietnam Expo 2017 Promotes New Products for 2018
The 15th Vietnam International Trade Fair (Vietnam Expo 2017) on December 6-9 in Ho Chi Minh City will see the introduction of new products that will hit the market in 2018.
According to the Vietnam National Trade Fair & Advertising Company (Vinexad), participating companies want to introduce their new items for 2018 with the aim of seeking customers’ feedback for evaluating the market’s demand.
Non-performing loans (NPLs) in the Vietnamese banking system, if fully calculated, are estimated at 566 trillion dong ($24.93 billion) as of the end of September, accounting for 8.61% of total credit, a central banker has said.
The ratio has declined 1.47 percentage points from 10.08% identified for the end of 2016, Governor of the State Bank of Vietnam Le Minh Hung said at a Q&A session on Friday, part of the ongoing month-long National Assembly sitting.
Singapore’s CapitaLand Limited has ramped up its foothold in Vietnam by investing $53.5 million to acquire a 1.45-hectare site in Ho Chi Minh City where it plans to develop an 870-unit residential project with a gross development value of $177 million.
In this unnamed project in the city’s District 4, there will be three 24-storey towers – two single blocks and one triple block, as well as retail units on the lower floors, the company said in a statement on November 16.
Singapore-listed Jardine Cycle & Carriage (JC&C) has acquired an additional 39.84 million shares of Vinamilk (VNM) after its maiden investment worth $616.6 million on November 10, to increase its ownership in Vietnam’s largest dairy producer to 8.9%.
Platinum Victory Pte. Ltd., a wholly-owned subsidiary of JC&C, bought 36.01 million shares of Vinamilk on November 15 at a cost of $294.9 million, and another 12.82 million shares on November 16 for $105.1 million.