BUSINESS IN BRIEF 25/10

Local items enjoy success in ChinaMarket for foreign agricultural products remain strongCement production to meet demand in 2012

Supply of cement will meet domestic market demands next year, according to the Ministry of Construction.

Deputy Minister of Construction Nguyen Tran Nam said according to cement consumption figures this year, the ministry expected demand to reach 55-56.5 million tonnes next year with domestic cement production hitting 70 million tonnes.

These projections included 19-19.5 million tonnes from the Viet Nam Cement Corporation, 17-17.5 million from joint ventures and the remaining from other cement plants, Nam said.

Next year, the production capacity of domestic cement producers could meet the domestic demand but producers would still need to import material for cement production. The ministry estimated the country must import 1 million tonnes of clinker, the main material for cement production, in 2012.

Meanwhile, the ministry estimated that this year’s domestic cement demand would not increase against last years, he said.

The local cement demand in 2011 was predicted to reach 50 million tonnes, the same rate as last year, and lower than the target 54.5-56 million tonnes target.

In the first nine months of this year, the nation consumed 35.27 million tonnes of cement, or 65.2 per cent of the target.

The reduction in cement consumption was due to macroeconomic policies of inflation control and to reduce public investment which has led to the suspension of several construction projects, especially property projects.

The number of construction projects had been the leading factor in the lower domestic demand of cement, Nam said.

Lower consumption had pushed cement stockpiles up to 2.34 million tonnes at the Viet Nam Cement Corporation’s member companies.

The corporation said its companies expected cement consumption recover in the last quarter of the year to reduce stockpile figures as construction was expected to rise compared to other quarters.

In the first nine months of the year cement producers had boosted exports to 3 million tonnes mainly to key markets in Laos, China and Africa, Nam said.

The ministry also expected cement export volume to reach 4-4.5 million tonnes in 2012, Nam said.

Head of the Viet Nam Cement Association’s administrative office Nguyen Van Diep said export activity was a good solution to combat high interest rate loans and slow cement consumption on the domestic market.

The ministry would co-operate with the association to reduce production costs and complete a cement trading system to push the sale price down and increase consumption in order to stabilise the market, Nam said.

The corporation would work closely with joint venture companies to calculate the demand of cement each month and each quarter in the central and southern regions to facilitate cement transport through the country.

The ministry has also recommended the Government work out reasonable policies to increase production of key inputs for the cement industry, including electricity, coal and petrol, to ensure quality and supply of materials.

Upgrade to aid Phu Quoc economic development plan

Phu Quoc Island authorities are building the Vinh Dam industrial-residential complex and a breakwater, upgrading the An Thoi Seaport, and dredging the mouth of Duong Dong River at a cost of VND1.373 trillion (US$66 million).

The works are aimed at boosting economic growth by efficiently exploiting the island’s natural advantages.

At An Thoi, the fishing port is being upgraded and expanded at VND62.4 billion ($2.97 million), with the work expected to be finished by 2014.

It is considered to be an important infrastructure project that will make Phu Quoc an eco-tourism and cargo and passenger transport hub. It was built last year at a cost of VND149 billion ($7 million).

The 305ha Vinh Dam Complex, to cost VND1.2 trillion ($57.1 million), will comprise a cargo port, industrial zone, a traditional trade village, entertainment, a resort, restaurants, and public services.

It will be built in three stages and finished in 2014.

Acquisition of land and payment of compensation will be finished by the end of this year.

The mouth of the river will be dredged and a breakwater built at a cost of VND111 billion ($5.28 million).

The dredging and installation of marker buoys will begin next year.

Brandnew Mekong Delta logistics port unveiled

The Sai Gon New Port Corporation on Thursday opened a new port in the Cuu Long (Mekong) Delta province of Dong Thap.

The Sa Dec Port is expected to deliver the Delta’s first advanced logistics services.

Seaport, waterway and roadway transportation companies as well as logistics firms nationwide have all expressed keen interest in the opening of the port.

The Mekong Delta is one of the country’s top producers of rice, agro-products and seafood, but logistics services have not kept pace with the demand for cargo circulation.

Pre-stressed concrete plant set to open in Da Nang

The Viet Nam Construction and Import-Export JSC (Vinaconex) yesterday inaugurated its Xuan Mai concrete plant in central Da Nang City.

The VND180-billion (US$8.6 million) plant covers an area of 11ha and was designed to produce pre-stressed concrete and block bricks.

Dung Quat shipbuilding rakes in healthy profits

The Dung Quat Shipbuilding Industry Co Ltd (DQS) reported earnings of VND630 billion (US$30.3 million) so far this year, an encouraging result under the Viet Nam National Oil and Gas Group (PVN) management.

The DQS has focused on building 105,000-tonne tankers alongside the repair of many 104,000-tonne ships including the Truong Sa, Con Son, VSP-05, Eagle, Sao Mai 01, Ba Vi and Horizon.

The company is currently trying to complete another 104,000-tonne crude oil tanker planned for launch early next month.

Aluminium plant set to operate by end of year

Lam Dong Aluminium-Bauxite Project Management has said that construction of plants in the Tay Nguyen (Central Highlands) province of Lam Dong was nearly finished with operations expected to start by the end of this year.

The project, which includes an aluminium production area, a thermo-electric plant, a red mud lake and a coal gasification station, is 96 to 98 per cent complete.

Masan Consumer acquires control of coffee processor

Masan Consumer, a subsidiary of food processor Masan Group (MSN), announced its successful acquisition of an over-50-per-cent stake in Vinacafe Bien Hoa (VCF).

VCF, having estimated that its profits for the first three quarters would exceed its VND150 billion (US$7.2 million) target, plans to appoint a new board member to represent Masan’s ownership later this month.

Industrial equipment provider posts profit

Refrigeration Electrical Engineering Corp (REE) announced that its revenues for the third quarter reached approximately VND597.8 billion (US$28.9 million), gross profits for the period hitting VND177.5 billion ($8.6 million).

In the first nine months of this year, company revenues were estimated to have been VND1.45 trillion ($70 million), gross profits reaching VND389.2 billion ($18.8 million), 64.86 per cent of the plan for the whole year.

Dragon Capital Fund sells construction company shares

The Dragon Capital Fund will no longer be a major shareholder of Becamex Infrastructure Investment Co (IJC) having reduced its holding percentage from 5.87 to 4.04 per cent by selling 5 million shares.

Closing yesterday’s session, IJC added 0.9 per cent to VND10,700 per share.

Cement maker to reduce business targets

Vinaconex Xuan Mai Concrete and Construction Co (XMC) will hold a shareholder meeting next month to decide on reducing its revenue and profit targets.

Accordingly, its yearly revenue target will see a decline of VND100 billion (US$4.83 million) to VND1 trillion ($48.3 million), while profit targets will be pushed down 33 per cent to VND41 billion (nearly $2 million).

Habubank gets approval to issue bonds

Ha Noi Building Bank (HBB) plan to issue 9.6 million one-year convertible bonds worth VND960 billion (US$46.4 million).

Yield will be fixed at 11.7 per cent and bonds sold to its shareholders at a 1:10 ratio (1 bond converted 10 shares).

HBB closed yesterday’s session at VND6,600 per share, or 1.5 per cent higher.

Securities company named outstanding entrepreneur

Ban Viet Securities Co was named one of the 96 most outstanding entrepreneurs in HCM City by the local People’s Committee and the City’s Entrepreneurs Association on Thursday.

It became the only securities firm to be honoured this year, which has been tough for business.

The prize accordingly conveys great meaning in encouraging spirit among enterprises.

Mekong farmers ignore gov’t machinery subsidies

Farmers in the southern region have shown little interest in borrowing capital under a programme designed to help them purchase agricultural machinery, the Ministry of Agricultural and Rural Development has said.

The subsidised Government loan programme went into effect last year in a move designed to push for industrialisation and modernisation in rural areas.

Deputy director Doan Xuan Hoa of the ministry’s department of trade and processing of agriculture, forestry, aquaculture and salt said that the programme targeted farmers in the Cuu Long (Mekong) Delta, the heart of the country’s rice farming region.

Under the programme, farmers would not have to pay any interest during the first two and a half years of their loans.

However, implementation of the programme had been slow and the number of farmers who had taken advantage of the preferential loans remained limited, he said.

Director of the Ca Mau Province branch of the Viet Nam Bank for Agriculture and Rural Development (Agribank) Ly Nam Hai told Nong Thon Ngay Nay (Countryside Today) newspaper that the programme wasn’t as effective as expected because the products offered in domestic machinery catalogues did not meet farmer demands.

“Farmers sighed in disappointment when they saw the list of eligible products. They are not in demand,” he said.

Director of Tien Giang Province’s Agribank branch Kieu Manh Minh agreed, saying that few farmers had taken out the loans although there were hundreds of billions of dong in the bank waiting to be used for the purchase of agricultural equipment.

Hai Be, a farmer in Lac Tan Commune, Long An Province, where local residents earn their living farming rice, said none of the combined harvesters in the catalogues satisfied him.

“I have used a machine made-in-China, but I always have trouble with it. I need a good-quality machine to serve my 10ha of rice,” he said.

Vice chairman Tran Hoai Bao of the Moc Hoa District People’s Committee said most local farmers needed good-quality combined harvesters and the poor quality of domestically-made products failed to meet their demands.

They preferred imported machines, especially those from Japan, he said.

According to Hoa, deputy director of the ministry’s Department of Trade and processing of agriculture, forestry, aquaculture and salt, the ministry would work with the banks to make the programme more suitable with farmer demands.

Philippines to probe Vietnamese paper industry

The Philippines’ Department of Trade will conduct a review on testliner papers imported from Vietnam as part of safeguard measures, the Ministry of Industry and Trade’s Competition Management Agency has announced.

The Competition Management Agency said Vietnamese testliner exported to the Philippines from June 2010 to last June would come under the review for possible adjustment on the tariff rate, which is currently 4 percent.

It said the Philippines would cut the tariff to zero if the review could prove that the increased imports of Vietnamese testliner no longer negatively affected or threatened to damage the local testliner production sector.

In the 2010 review, the Philippines’ Department of Trade concluded that Vietnam-imported testliner in the first half of last year accounted for 4.9 percent of the Filipino market share, breaking the 3 percent limit beyond which trade safeguard measures would to be applied.

In the period between 2004 and 2008, the Vietnamese testliner’s market share in the Philippines was just less than 1 percent.

State cement maker loses $10.7 mln

The state-run Vietnam Industry Cement Corporation has reported a loss of VND220 billion (US$10.7 million) so far this year.

VICEM blamed it on the soaring expenses, especially the 21.5 percent interest rate on its capital expenditures.

Input costs had also soared, with coal prices rising by as much as 88 percent, it said.

Besides, demand had remained frozen in the third quarter, affecting sales, it added.

Total cement consumption in the year to September was down 0.4 percent year-on-year at 35.4 million tons.

VICEM has 1.77 million tons in inventory, including 1.39 million tons of clinker.

Last year VICEM posted a profit of VND1.6 trillion ($78 million).

Second-hand car imports accelerate

The number of second-hand cars imported in September more than doubled from the previous month, the General Customs Department said.

More than 400 vehicles were imported for US$668,011.

Of them, 327 were of below 1,000 cc capacity, mostly Korean-made Kia Morning cars at $3,800 to $4,000.

As a result, they were not subject to the new import tariffs on second-hand cars imposed by the Ministry of Finance in late August since the taxes only apply to larger vehicles.

Vehicles with less than nine seats and of between 1,500 cc and 2,500 cc capacity will attract a duty of 82 percent plus a fixed tax of $5,000.

Those of more than 2,500 cc will be levied 77 percent tax plus $15,000.

Earlier there were only fixed taxed on used cars.

Vietnam has allowed imports of second-hand cars since May 2006. In the next two years more than 10,000 cars were imported and the number continued to rise.

In August the government began to tighten regulations since their imports were at times nearly equal to that of new vehicles, imposing the new rates.

The customs agency said the number of new cars imported in September had fallen by 9.9 percent month-on-month to more than 3,000 units.

50 tourism businesses honoured

The Vietnam National Administration of Tourism (VNAT) has presented Vietnam tourism awards to 50 businesses, travel agents and hotels in Hanoi.

At a ceremony at Hanoi Opera House on October 17, Minister of Culture, Sports and Tourism Hoang Tuan Anh said tourism businesses have played a key role in Vietnam’s tourism industry in recent years, turning Vietnam into one of the most attractive destinations in the region and the world.

Minister Anh expressed his hope that travel agents across the country would join efforts to help Vietnam tourism take off in the near future. Vietnam aims to receive around 10 million foreign visitors and earn US$18 billion by 2020 and around 18 million foreigners by 2030.

The Head of the VNAT, Nguyen Van Tuan presented certificates of merit and cups to 50 businesses. Top ten five-star hotels honoured this time included New World Saigon, Chanes Caravelle, Ben Thanh, and Renaissence in Ho Chi Minh City, Deawoo and Majestic in Hanoi and Vinpearl Resort in Nha Trang. Among the top ten travel agents were Saigontourist, Ben Thanh, Lua Viet and Vietravel.

In addition, the organizing board presented the prestigious awards to 10 four-star hotels and 10 three-star hotels.

This is the 12th year Vietnam tourism awards have been presented.

International seminar on Vietnam’s debt management

An international seminar on managing Vietnam’s public and external debts was held in Hanoi on October 17 by the Ministry of Finance, in collaboration with the World Bank (WB) and the United Nations Conference on Trade and Development (UNCTAD).

This is the first time such a seminar has been held in Vietnam, aiming to share experiences and lessons learnt on debt management from international financial institutions and external debt management agencies.

In his speech, Deputy Minister of Finance Truong Chi Trung said that the seminar also discussed the public debt situation and debt management in Vietnam, as well as challenges, unresolved public debt-related problems, and solutions for sustainably managing the country’s debts.

Head of the Debt Management and External Finance Department under the Ministry of Finance, Nguyen Thanh Do, said that Vietnam can manage its debts by stabilizing the macroeconomy, increasing budget revenues, boosting exports and foreign currency reserves, strictly supervising the use of loans and controlling risks.

Specific solutions focused on perfecting tools for debt management, listing projects capitalized through Government bonds and ensuring the debt safety- debt sustainability ratio.

The Ministry of Finance said that, by the end of 2010, Vietnam’s public debt accounted for 57.3 percent of GDP, Government debt 45.7 percent, and external debt 42.2 percent.

However, the Ministry said that the debt ratios were within safe limits and the country’s public debts are being managed strictly according to the Law. Domestic and foreign debts have been fully paid and there are no bad debts.

Vietnam’s borrowing is mostly in the form of long-term loans enjoying preferential interest rates. Public debts have not yet put pressure on the State budget in terms of paying due debts.

Economic experts said that in order to give a proper evaluation of the sustainability of public debts, it is imperative to take into account debt ratios compared to the GDP, as well as the relationship between public debts and various categories of the macroeconomy such as public debt structure, debt ratios, interest rates and debt payment terms.

Business Confidence Index increases in Q3

Vietnam’s Business Confidence Index (BCI) has bounced back quickly in the third quarter this year to reach 123 points, 35 points higher than the previous quarter.

This is a positive sign as businesses are becoming more confident about the optimistic prospects for the national economy.

A recent survey conducted with 200 businesses in 11 key industrial sectors shows that the smaller increase in consumer prices in September and the State Bank of Vietnam’s policies to stabilise the US$/VND exchange rate and reduce the lending interest rates has contributed significantly to this optimism.

Accordingly, nearly half the businesses surveyed want to employ more workers and a similar number already have their new investment plans. About 75 percent expect a rise in profits within the next 12 months.

However, they are still cautious regarding the complicated development of the economy. More than 40 percent of enterprises will not recruit more workers and 10 percent said they will reduce their number of staff.

Around 60 percent of businesses said that the high amount of goods in stock has pushed production costs up. Inflation and expensive input materials have also affected production in 75 percent of the surveyed businesses.

They said they still face challenges due to fierce competition and the lack of investment capital and skilled human resources.

Japanese aid helps Vinh Phuc improve investment climate

Construction of a road as part of a Japanese-funded project to improve the investment environment in the northern province of Vinh Phuc began on October 17.

The Japanese Government has pledged nearly US$152 million for the project.

The 15km route running through the Me Linh new urban area in Vinh Phuc is one of the project’s five components, in addition to upgrading the clean water supply system, building a waste water treatment station, improving the power supply and assistance for promoting investment in Phuc Yen commune and Vinh Yen city.

Phung Quang Hung, Chairman of Vinh Phuc provincial People’s Committee, said once completed in 2014, the project will help solve difficulties such as the shortage of clean water, and electricity and out-of-date system of waste water treatment. Such infrastructure is essential for attracting investors, he noted.

Just 60km away from Hanoi, Vinh Phuc is now a destination for major economic groups such as Honda and Toyota from Japan; Piaggio from Italy; Foxconn, Compal and Fullpower from Taiwan; GO, Max, Kumho and Lotte from the Republic of Korea; and YCH and CPK from Singapore. Developing better infrastructure to attract more investors is one of the province’s top priorities.

250 businesses to attend international industrial fair

The 20th Vietnam International Industrial Fair will be held at the Vietnam Exhibition and Fair Centre in Hanoi from October 19-23.

The annual event is one of the biggest international industrial fairs in Vietnam.

The organizing board announced at a press briefing in Hanoi on October 17, that this is an excellent choice for businesses that want to promote their images and trade. This year’s fair will take place in the context of a number of difficulties and challenges facing Vietnam and the world, which are affecting the global business community.

The trade fair will feature equipment, machinery, technology, and support industry products for manufacturing, energy, mining, construction, and transport industries, as well as medical equipment, household utensils and other industrial consumer products.

Despite economic difficulties, 250 businesses will attend the event, including 100 from Russia, the Czech Republic, China and the Republic of Korea.

The 63 Russian businesses at the event will showcase their products in an area of nearly 600sq.m.

The fair aims to help strengthen economic and trade relations and diversify cooperation between Russia and Vietnam.

Key Economic Zone to take shape in the south

Southern Tra Vinh province held a ceremony on October 17 to announce plans for building the Dinh An Economic Zone (EZ).

Deputy Prime Minister Nguyen Thien Nhan, representatives from ministries and departments, and provincial leaders attended the ceremony along with more than 90 domestic and foreign investors.

Mr Nhan praised Tra Vinh’s careful preparations for establishing the EZ, which will be one of the most important in the country once it is put into operation. He urged the provincial leaders to create good plans, prepare appropriate human resources, ensure power, transport, and drainage systems and devise policies to support investors.

He suggested that Tra Vinh make specific plans for building technical infrastructure for transportation, electricity and water supplies, train human resources, establish interactive relations to support investors, and upgrade the EZ’s website to answer investors’ questions.

According to the Deputy PM, provincial leaders should conduct quarterly inspections to promptly deal with any problems that may arise for investors.

Covering an area of 39,020 hectares, Dinh An EZ will be a major economic and cultural centre for Tra Vinh and the entire Mekong Delta region.

Tra Vinh provincial leaders also announced investment incentives and signed agreements with investors at the ceremony.

Master plan debut for Dinh An EZ

A ceremony to announce the master plan for Dinh An Economic Zone (EZ) until 2030 took place in the Mekong Delta province of Tra Vinh on October 17.

Addressing the ceremony, Deputy Prime Minister Nguyen Thien Nhan asked provincial leaders to pay attention to planning work, human resource development, transport systems, water supply and drainage, energy sources and policies to assist investors.

Covering a total area of over 39,000 hectares, Dinh An EZ will focus on industry, trade, services, tourism, agro-forestry and fisheries connected with the marine-based economy.

Once completed, Dinh An EZ will become one of economic centres of Tra Vinh province and serve as a gateway for international maritime trade and an important transport hub of the Mekong Delta and the southern coastal region.

At the ceremony, provincial authorities announced investment incentive policies and signed construction projects for Ngu Lac industrial zone, an oil refinery industrial zone, a non-tariff area, an urban area of Duyen Hai commune, and Long Toan port complex, which are all part of the economic zone.

So far, 11 investors have been granted licences to implement projects in the economic zone.

18 deals signed for Dong Thap

Enterprises during an investment promotion conference in Dong Thap Province last Friday signed 18 memoranda of understanding for investing in the Mekong Delta province, including seven into its strongest sectors of agriculture and aquaculture.

Speaking at the opening ceremony, Dong Thap Province’s chairman Le Minh Hoan said the province needs projects which can help add value to aquatic and farm produce. Its aquaculture sector makes great contribution to total export revenue and is expected to reach US$750 million this year.

However, many entrepreneurs and experts wondered why the province was developing so many industrial parks and clusters. According to the Department of Industry and Trade’s investment promotion list, it is seeking investors for nine industrial parks and clusters besides others for shipbuilding, farming machines, plant protection medicine, fertilizer and fruit processing and seafood additive projects.

The conference attracted local and international enterprises in logistics and shipping sectors, banks, organizations and associations.

MoUs signed during the investment promotion conference

1. 8.7-hectare Thuong Phuoc Port at Thuong Phuoc International Border Gate of Saigon Newport Corporation

2. Logistics manpower training project of Tan Cang-STC Human Resources Development Co. Ltd. and local authorities

3. Mushroom processing and exporting factory of International Farm Produce Processing Company

4. VND187-billion refined alcohol factory of Vietnam Trading-Consulting and Investment Company with capacity of 15 million liters a year

5. Orchid growing project of Kim Ngan Phong Lan Company and the provincial ornamental creature society

6. Six-hectare rice cleaning, husking and drying complex of Cam Nguyen Rice Husking and Trading Co. Ltd. with capital of VND197 billion

7. VND548-billion food, packaging and firewood production complex of Vinh Hoan Joint Stock Company

8. 9.7-hecatre fertilizer plant and 7.2-hecatre rice cleaning and husking plant of Hoang Long Group Joint Stock Company with combined capital of VND350 billion

9. 3.5-hectare Tra fish fillet processing plant and seven-hectare fish additive plant totaling VND520 billion

10. Bonded warehouse, duty-free supermarket and logistics services at Dinh Ba International Border Gate of C.V.C Joint Stock Co and Dong Thap Province Economic Zone

11. Co.opMart Cao Lanh and Co.opMart Sa Dec supermarkets of Saigon Co.op Investment Development Joint Stock Company

12. Study over investment promotion in Dong Thap of Center for Trade and Investment Promotion of Dong Thap Province and Singapore’s Prominent Consulting Company

13. Media sponsorship for investment promotion programs of Center for Trade and Investment Promotion of Dong Thap Province and Vietnam Supply Chain Insight magazine

14. Military Commercial Bank’s branch in Dong Thap

Beeline unveils low-cost phone

Mobile network operator Beeline on Friday released a low-cost phone model costing a mere VND149,000 apiece, which can only use simcards provided by Beeline.

It is the cheapest handphone on the market and is part of a new marketing strategy of Beeline which aims to be ranked fourth in the local telecommunication market with over 140 million subscribers.

The phone is made in China and is available to low-income people. It comes with three different colors of black, pink and white.

Users only pay VND40,000 to purchase a simcard and switch it into a billionaire package to make free same-network phone calls. Beeline will sell the low-cost phone on the streets and at universities.

The Russian-based telecom company Vimpelcom, a joint venture partner of Gtel, has injected US$500 million into Beeline.

Many telecom experts said the move could see Beeline overtake EVN Telecom, S-Fone and Vietnamobile to become the fourth mobile carrier in the country.

City builds 8 mil. sqm of housing this year

Housing schemes totaling over eight million square meters will be developed this year, reported the HCMC Department of Construction in a meeting on housing policy and realty market with the city’s authority.

There were more than six million square meter housing projects to be constructed in January-September in HCMC, taking the total area per person in the city to over 15 square meters, according to Nguyen Van Danh, deputy director of the city’s construction department.

The whole city has 13 projects with 4,135 condos completed and put into use during the last nine months, said the Steering Committee for Housing and Real Estate Market Policy. The low-cost housing segment accounts for the highest proportion of 37.17% with 1,537 apartments and the high-end sector makes up around 33% with 1,363 condos, noted the committee.

The committee added that housing demand increased by 30% but the successive transactions fell by over 36% in the first quarter this year. Meanwhile, the second quarter recorded a remarkable tumble in demand and in the number of successive transactions alike.

Current financial constraints and expectations for cheaper prices among homebuyers are attributed to the bad performance.

Vietnamese debt indices at safe levels

Viet Nam’s debt indices were reported to be at safe levels, with public debt managed tightly, domestic and external debts paid and no bad debt, according to the Ministry of Finance.

At an international seminar on public and external debt management held in Ha Noi yesterday, the Ministry of Finance reported that by the end of last year, Viet Nam’s public debt made up 57.3 per cent of gross domestic product (GDP) while Government debt made up 45.7 per cent and external national debt accounted for 42.2 per cent.

The ministry affirmed that Viet Nam’s debt was aimed at development investment and not at regular expenses and administrative costs. Most loans were said to be long-term with preferential interest rates, and public debt having caused little pressure on State budget.

According to Nguyen Thanh Do, director of the ministry’s Department for Debt Management and External Finance, Viet Nam planned to handle its debts by effectively controlling the macro-economy, State budget collection, exports and reserves of foreign currency alongside loan and risk management.

At the seminar, jointly organised by the Ministry of Finance, the World Bank and the UN Conference on Trade and Development (UNCTAD), Vietnamese experts drew benefit from the experience of international financial organisations and foreign debt management agencies.

Foreign experts additionally analysed the situation of Viet Nam’s public debt, suggesting measures for sustainable debt management.

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