[Round-up] Ministry Proposes Cutting Numerous Business Conditions, VAMC Needs More Capital

Tuan Minh

18:49 31/08/2017

BizLIVE - The Ministry of Planning and Investment has recently proposed the prime minister abolish nearly 2,000 business requirements and conditions. VAMC will need more capital to further benefit from recently-approved rules to clean up non-performing loans.

[Round-up] Ministry Proposes Cutting Numerous Business Conditions, VAMC Needs More Capital

The headquarters of VAMC in the center of Hanoi.

Ministry Proposes Scrapping Nearly 2,000 Business Conditions
The Ministry of Planning and Investment recently proposed the prime minister abolish nearly 2,000 business requirements and conditions, a move to help improve the business climate and the economy’s competitiveness, the Vietnam News Agency (VNA) reported.
The ministry asked for complete or partial abolition of 302 financial conditions, and complete abrogation of 85 conditions on location and another 1,336 on production capacity.
Vietnam Customs Holds Dialogue with European Businesses
The General Department of Vietnam Customs held a dialogue with European businesses in Ho Chi Minh City on August 30 to help clear customs issues of their concern, especially customs revaluation.
EuroCham Executive Director Almut Roessner said as most revaluation decisions in Vietnam were made by basing on customs database or reference values collected in the internet, they haven’t been objective or in line with regulations.
Vietnam SOEs Collect $696 Million from Divestment in 8 Months
State-owned enterprises divested more than 3.7 trillion dong ($163.4 million) in book value, collecting 15.8 trillion dong ($696 million) from investment in non-core operations during the first 8 months of 2017, according to the Ministry of Finance’s Corporate Finance Department.
So far, 33 SOEs have had their equitization plans approved in the first eight months of this year, with total real state capital in those enterprises worth approximately 20.9 trillion dong ($918.7 million).
VAMC Needs More Capital to Handle Bad Debts
Vietnam Asset Management Company (VAMC) will need more capital to further benefit from the National Assembly’s recent resolution on the settlement of non-performing loans (NPLs), experts said.
The Resolution 42/2017/QH14 on piloting the bad debt settlement of credit institutions, which has taken effect from August 15 this year, provides a thorough guidance on the procedures for recovery and repossession of collateral. It also provides incentives to encourage NPL trades, as the NPL may be sold at a price lower or higher than book value.
Despite the effective policies, experts said another important issue is the financial resource for VAMC to buy the NPLs, as the debts is extremely large. With the current charter capital of only 2 trillion dong ($88 million), the company will not be able to do anything to handle the huge debts.
Hanoi Licenses over 16,700 New Businesses in Jan-Aug
The number of newly-established companies in Hanoi rose 14% to 16,714 in the first eight months of 2017, with a combined registered capital of approximately 130 trillion dong ($5.72 billion), up 4% year on year.
The figure was revealed at a meeting on August 31 between the municipal People’s Committee, departments, sectors and districts to review the achievements since the beginning of this year and outline tasks for the remaining months.
HCM City Hosts Workshop on Digital Economy
Potential benefits and challenges for the digital economy and new-age regulations for new-age businesses were discussed at a workshop in Ho Chi Minh City on August 30.
Vo Tan Thanh, vice chairman of the Vietnam Chamber of Commerce and Industry (VCCI), said the digital economy is an indispensable step as the traditional economy gradually becomes saturated.
Production Chains Vital for Vietnam’s Pork Industry: Experts
Vietnam’s pig farming industry should be restructured in a sustainable and competitive manner with a focus on establishing production chains for farmers and businesses, experts have said at a recent conference in Hanoi.
Nguyen Ngoc Hoa, deputy director of the Ho Chi Minh City Department of Industry and Trade, said developing production chains is important for the pig farming industry. For example, a safe pork production and supply chain in the city will help farmers and traders better advertise their products and cut costs and help authorities trace pork origins more effectively.
Over 700 Businesses to Attend Int’l Travel Expo HCM City
More than 700 businesses from 32 localities nationwide and 18 countries and territories will participate in the 13th International Travel Expo Ho Chi Minh City (ITE HCMC), which will run at the Saigon Exhibition & Convention Centre from September 7 to 9.
The ITE HCMC, which is a leading tourism event in the Mekong sub-region, is held annually by the HCM City People’s Committee and the Ministry of Culture, Sports and Tourism, according to VNA.
Japan-headquartered Toyoda Gosei Co., Ltd. will establish a new plant in Vietnam to produce airbags parts to meet growing global demand following the bankruptcy of its Japanese rival Takada in June.
The plant will be built on an area of 2.08 hectares in Tien Hai Industrual Park in the northern province of Thai Binh. Construction will start in March 2018 at a cost of $24.6 million. It will create around 1,000 jobs as of March 2021, the firm said in a statement on Aug. 30.
Vietnamese Prime Minister Nguyen Xuan Phuc has once again asked the central bank to pump up cash into the economy to spur economic growth which came in at 5.73% in the first half this year.
At a monthly cabinet meeting on August 29, the prime minister asked the State Bank of Vietnam to rev up lending growth to at least 21%, or three percentage points higher than the initial target mandated by the parliament, and reduce loan rates by 0.5 percentage points.
The Vietnamese government collected 706.9 trillion dong ($31.14 billion) for state coffers while expenditures amounted to 747.3 trillion dong ($32.92 billion) year to Aug. 15, resulting in a fiscal deficit of 40.4 trillion dong ($1.78 billion), compared to $4.91 billion in the same period last year, according to official data.