[Round-up] Vietnam Runs $3 Billion Fiscal Deficit in Jan-May, Boosts SOE Overhaul

Tuan Minh

17:24 07/06/2016

BizLIVE - Vietnam reported a fiscal deficit of $3.11 billion in the first five months of this year. The overhaul of state-run firms in Vietnam continued to advance with more firms getting a green-light to sell shares and divest from non-core operations.

[Round-up] Vietnam Runs $3 Billion Fiscal Deficit in Jan-May, Boosts SOE Overhaul

The overhaul of state-run firms in Vietnam continued to advance with more firms getting a green-light to sell shares and divest from non-core operations.

Over 10,000 Mazda Cars Recalled for Engine Warning Light Issue
Vina Mazda Automobile Manufacturing Co. Ltd, a subsidiary of Truong Hai Auto Corporation (THACO), has issued a recall notice for 10,100 Mazda 3 cars for a “Check-Engine” warning light problem.
All the recalled cars were manufactured since December 9, 2014, using a 1.5-liter Skyactive engine. Of the cars 7,740 are sedan units and 2,360 are hatchback cars, the Vietnam News Agency reported.
Works Start on Tourism Complex in Da Nang
Empire Group has recently broken ground on the Cocobay tourism and entertainment complex in Ngu Hanh Son district in the central coastal city of Da Nang, local media reported.
The project will cover 31 hectares of land along 600 meters of coast and will include an indoor theater with 1,200 seats and an outdoor stage that holds up to 2,000 people.
Vietnam Boosts SOE Reform in 5 Months
The Vietnamese government approved the equitization plans of 37 state-owned enterprises (SOEs), including Machines and Industrial Equipment Corporation, Vietnam Engine and Agricultural Machinery Corporation, Corporation 36, Vietnam Forest Corporation in the first five months of this year.
SOEs sold shares worth more than 2.08 trillion dong ($93.2 million) in book value for 4.17 trillion dong ($186.3 million) in the five-month period, the Ministry of Finance said on June 6.
Vietnam Runs Fiscal Deficit of $3.1 Billion in Jan-May
Vietnam posted a state budget deficit of 70 trillion dong ($3.11 billion) between January and May, accounting for 27.6% of this year’s estimate, the Ministry of Finance said in a statement on its website.  
Its budget revenue reached 396.2 trillion dong ($17.7 billion), meeting 39.1% of this year’s target, while budget expenditures totaled 466.3 trillion dong ($20.8 billion), or 36.6% of the year’s plan.
Vietnam Sees Boom in E-payments
Increased use of electronic payment products added $880 million to Vietnam’s GDP from 2011 to 2015, VNA cited a report released by Moody’s Analytics as saying.
The report entitled “The Impact of Electronic Payments on Economic Growth” said that more products including credit, debit and prepaid cards were increasingly being used, helping to create an average 75,000 jobs annually during the five-year period.
Credit for Vietnam’s SOEs Accounts for 15%-17% of Outstanding Loans: SBV
Credit for SOEs currently accounts for roughly 15%-17% of total outstanding loans, Deputy Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong has said.
Previously, credit for SOEs was relatively high, but now, credit for private enterprises has increased significantly, she tipped, adding that the SBV has always targeted credit for production and business operations, especially in the government’s prioritized industries such as agricultural and rural development, exports, support industries, small- and medium-sized firms and high-tech enterprises.
First Foreign-funded Hydropower Plant in Northern Vietnam to Start Operation
The Coc San hydropower plant, the first foreign-funded power project in the northern mountainous province of Lao Cai, will start generating power on June 8, helping reduce the import of power from mainland China.
The Vietnamese Ministry of Transport could mobilize a combined 186.66 trillion dong ($8.3 billion) for 62 projects carried out in the BOT and BT forms in the 2011-2015 period, of which $8.22 billion was funneled into road projects.
Several foreign companies including SK, Kospo, Tohoku, Tan Power have approached PetroVietnam Power Corp. (PV Power), an offshoot of state-run energy firm PetroVietnam, to acquire a stake in the latter, which is poised to launch an initial public offering (IPO) later this year.
Under a government-approved equitization plan, PV Power will offer a 25% stake to the public and strategic investors, cutting the state holding to 75%.
The government of Vietnam’s central province of Quang Ngai has said it will withdraw the investment license of a long-delayed steel mill project invested by Guang Lian Steel Company, a Taiwanese joint venture, by the end of this month after a conducting an inspection.
The decision is made after many delays and hundreds of hectares of land have been wastefully reserved for the project, local media reported.