International financiers may have no room to join Long Thanh International Airport project, with the lack of a government loan guarantee creating a major obstacle for would-be investor Airports Corporation of Vietnam to ensure bankability. The National Assembly (NA) has issued a resolution on a feasibility study for the first phase of the Long Thanh International Airport project, in which the government will offer no loan guarantee and the selected investor will instead have to manage the fund itself. The move is seen as a blow for interested lenders, often requiring such a government guarantee for initiatives of this magnitude. Vietnam has recently been working with Sweden on the possibility of mobilising a $1 billion loan from the Scandinavian country in order to invest in Long Thanh International, along with air traffic management. Like other groups, the Swedish Export Credit Corporation (SEK) is concerned about the possible risk without a government loan guarantee. Per … [Read more...] about Vietnam Airports Corporation facing risks in airport venture
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VCCI Chairman Vu Tien Loc has called for promoting the private sector's participation in public service provision (Photo: VNA) Hanoi (VNA) – Eliminating the State monopoly and engaging the private sector in public service provision is an urgent need, according to Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc. At a workshop held by USAID and the VCCI in Hanoi on May 15, he said economic reforms over the last three decades show the State allowing the private sector to supply goods and services for society has generated benefits. In the retail sector, State-run department stores have been replaced by markets, supermarkets, stores and shopping malls. While there were only State-run transport businesses in the past, thousands of taxi, bus, tourist car and truck service companies have been set up. Private firms’ growing participation in all economic sectors, even those originally reserved for State-owned enterprises like airports, seaports and … [Read more...] about Urgent need to eliminate State monopoly in public service provision
Hanoi (VNA) - Resolution No.27-NQ / TW 2018 states that by 2020,the minimum wage must ensure minimum living standard of employees. Will the results of the National Wage Council’s meeting make this goal reachable? The National Wage Council convenes the first meeting, discussing regional minimum salary hike 2020 (Photo: VietnamPlus) On June 14, the National Wage Council will convene its first 2019 meeting to discuss raising the minimum wage. 7-8 percent wage hike proposal Talking with reporters at the beginning of the meeting, deputy head of the Vietnam General Confederation of Labour (VGCL)’s Department of Labour Relations Le Dinh Quang said the 2018 minimum wage negotiations helped raise 2019’s minimum wage, meeting about 95 percent of the minimum living standard for employees. “The economic landscape for 2019 is favourable for a minimum wage hike by 2020. 'Filling' the gap between the minimum wage and the minimum living standard is VGCL’s … [Read more...] about National Wage Council’s meeting: Is salary hike 2020 ‘reachable’?
Amid opinions that Vietnam’s aviation market has developed too rapidly, Mr. Dinh Viet Thang, head of the Civil Aviation Administration of Vietnam (CAAV), said that the aviation market has been posting good growth and under control with ensured safety and profits for carriers. The Vietnamese aviation market still reflects correctly rising demand of the economy and is in line with annual economic growth rate. However, representatives of state management agencies, experts and enterprises thought that although the development of Vietnam’s aviation market is still under control, rapid development has been causing intense pressure on infrastructure. If this issue is not solved soon, it will cause lots of consequences. Among the network of 22 airports, overloading situation mainly happens at two major airports Noi Bai and Tan Son Nhat, of which the situation is worse at Tan Son Nhat Airport. Mr. Lai Xuan Thanh, chairman of the Board of Management of the Airports Corporation of … [Read more...] about Congestion in aviation infrastructure needs resolving
Virgina Foote, a representative of AmCham Vietnam (Photo: danviet) Hanoi (VNS/VNA) - A draft regulation put forward by the State Bank of Vietnam (SBV) that would limit the foreign ownership rate in the payment intermediary service sector to 49 percent was discussed at a workshop in Hanoi on December 12. Legal experts, fintech and e-payment firms attended the workshop held by the Vietnam Chambers of Commerce and Industry (VCCI). The draft decree includes new policies on the legal synchronisation of cryptocurrencies, managing cross-border payment activities, providing non-account payment services, payment management, perfecting regulations for payment intermediary services, and foreign investment in payment intermediaries. Article 29 sets out the maximum percentage foreign investors can hold, including direct and indirect ownership, at 49 percent of charter capital of an intermediary payment service provider licensed by the State Bank of Vietnam. This article drew the most comments … [Read more...] about Fintech firms concerned about foreign ownership cap