Business investment wanted

Minister of Planning and Investment Nguyen Chi Dung Public investment has been disbursed slowly in the first half of this year which shows weaknesses in the guidance and direction of the localities. Minister of Planning and Investment Nguyen Chi Dung spoke to Vietnam News Agency about the reasons for the situation and solutions to speed up the disbursement rate and implementation progress. Could you explain why the disbursement rate of public investment capital was low in the first half of this year? By the end of May, the disbursement rate of public investment reached 22.4 per cent of the plan assigned by the Prime Minister, below the Government’s expectation. This led the Prime Minister to set up six working groups to inspect and push for faster disbursement in the ministries and localities with low rates. However, in my opinion, to assess whether it is slow or not, it’s necessary to look at it in a broad perspective and across the whole period. For example, during the … [Read more...] about Radical and long-term measures needed to boost public investment disbursement

Many Vietnamese airlines have proposed that the ceiling prices of domestic air tickets be further increased or removed as they have suffered heavy losses due to wildly soaring fuel costs. Even though air tickets have been rising, even higher than before the COVID-19 pandemic, carriers argued that they have to make up for relentlessly rising fuel expenses. Round-trip airfares of economy class for the Hanoi - Ho Chi Minh City route are fluctuating around VND3-5 million (US$129-214) per ticket and those for business class are VND8-17 million ($343-729), an increase of 20-50 percent compared to periods with passenger shortages due to the COVID-19 pandemic. Airfares to famous tourist destinations, such as Da Nang and Phu Quoc, have even changed hourly, and customers can hardly find cheap tickets even though for early morning or late-night flights. Many customers commented that many airlines might have taken unfair advantage of higher fuel prices, triggered by rising world oil … [Read more...] about Vietnamese airlines want domestic airfare caps raised, even removed, amid fuel cost hikes

In late March, Japan’s Sumitomo Corporation and local BRG Group worked with Danang’s leaders to discuss projects both groups want to deploy in the city. In 2020, Chairman of Danang People’s Committee Le Trung Chinh handed over MoUs on investment cooperation to Sumitomo Corporation and BRG Group to promote investment in a wide range of urban and infrastructure development projects in Danang. According to BRG chairwoman Nguyen Thi Nga, Danang has the full potential for a leading global player like Sumitomo to weigh over opportunities for investment and business expansion. “The board of directors at Sumitomo is solid with their investment orientation in Danang as they have sent several working groups to the city to shape an iconic regional-level project in Danang,” said Nga. Beyond Japanese groups, international investors from various other countries have expressed the desire to make forays into Danang. In a meeting with the city’s management at the end of April, Park In Sung, … [Read more...] about Danang becoming focal point in Central Vietnam investment

Gloom has set in in many localities including Bao Loc (the Central Highlands province of Lam Dong), Dac Nong, Binh Phuoc, Ba Ria-Vung Tau, and Binh Thuan, whose real estate markets used to be hot a few months ago.— Photo datxanhgiatrithuc.com Tran Trung Thanh, a real estate broker in Binh Thuan and Ba Ria-Vung Tau provinces, said since the beginning of April demand for agricultural lands has seen a sharp slump. The number of people who want to sell land is higher than those who want to buy, he said. Gloom has set in in many localities including Bao Loc (the Central Highlands province of Lam Dong), Dac Nong, Binh Phuoc, Ba Ria-Vung Tau, and Binh Thuan, whose real estate markets used to be hot a few months ago. Even the housing segment has shown signs of slowing down in many localities due to falling demand on both the primary and secondary markets. HCM City is a typical example. The country’s economic hub always has high demand for housing and faces a serious shortage of … [Read more...] about Real estate market slumps as banks cut off funds

The Renewable Energy in Sustainable Industrial Parks conference was organised by the Haiphong Economic Zone Management Board in collaboration with the Embassy of the UK, the nation's Chamber of Commerce and Industry, and Star Do Group. Head of the Haiphong Economic Zone Management Board Le Trung Kien asserted the green development demand of Haiphong city and its industrial parks and economic zones. Photo: Thanh Son Attendees at the conference were Harry Rawicz-Szczerbo, head of the Trade and Investment Department at the UK Embassy; Le Trung Kien, member of the city Party Committee's Standing Board and head of the Haiphong Economic Zone Authority; Mark Shorrock, chairman of Shire Oak International; Nguyen Thanh Phuong, CEO of Sao Do Group; and representatives of Haiphong's departments and agencies, investors, and businesses. Mark Shorrock, chairman of Shire Oak International, talked about the renewable energy demand of businesses in the RE100 group. Photo: Thu … [Read more...] about Haiphong promotes renewable energy investment in industrial parks

Illustrative image Asso. Prof. Dr. DANG NGOC DUC, former Director of the Institute of Banking and Finance at the National Economics University shared his thoughts on this issue with Saigon Investment recently. JOURNALIST: - Sir, many commercial banks are running out of credit room while needing to increase credit balance to support the economic recovery. Many experts believe that controlling credit growth by granting an annual credit limit to commercial banks is an administrative measure that is no longer appropriate. What is your opinion on this issue? Asso. Prof. Dr. DANG NGOC DUC: - The credit limit has been used by the State Bank of Vietnam as a tool to control credit growth since 2011. The Governor of the State Bank of Vietnam said that this is a very effective measure to keep the credit market stable and has prevented interest rate to increase the scale of deposits and loans. The use of credit limit tools for commercial banks is based on three basic objectives. First, … [Read more...] about Current credit room no longer suitable

Illustrative photo. Speaking with Saigon Investment about the credit room, Dr. HO QUOC TUAN, University of Bristol, U.K., said that the world has seen several periods of crisis as currently present today. The general lesson that can be learnt when using credit lines is that many loans will turn into non-bank loans, so it is more difficult to control. When borrowing from banks, there are rules on capital adequacy besides many other regulations. When using the credit tool, the purpose to be achieved is not clear and it is not easy to set specific limits. JOURNALIST: - Sir, what do you think about the State Bank of Vietnam's opinion that if Vietnam removes the credit limit, then banks will race to credit markets, which will then lead to an increase in interest rates to mobilize and lend, thereby affecting the macro currency? Dr. HO QUOC TUAN: - This is not true at all. Because when the Covid-19 pandemic occurred, or even before the pandemic, central banks were not naive to think … [Read more...] about Roadmap needed to remove credit room

Co-presided over by Ambassador Thang and President of the French Chamber of Commerce and Industry in Vietnam (CCIFV) Thibaut Giroux, the event aimed to promote trade and investment between Vietnam and France. It also saw the presence of French Consul General in Ho Chi Minh City Emmanuel Pavillon Grosser and representatives from nearly 80 companies and investors from both sides. The Paris seminar aims to promote trade and investment between Vietnam and France (Photo: VNA) In his remarks, Thang highlighted Vietnam as one of the fastest-growing and most dynamic economies in ASEAN, saying the Government of Vietnam has been persistently improving legal framework to attract French investors in the fields of mutual interest, particularly hi-tech industries and those promoting sustainability and environment protection. The diplomat described the EU-Vietnam Free Trade Agreement (EVFTA) as a landmark trade deal providing a stable and long-term framework for trade, economic and … [Read more...] about Vietnam, France step up trade, investment cooperation

Craig Bradshaw, CEO of Masan High-Tech Materials Corporation (MHT). — Photo courtesy of the firm Craig Bradshaw, CEO of Masan High-Tech Materials Corporation (MHT), shared the company's vision to become a leading integrated supplier of advanced high-tech materials critical to global innovation, and his thoughts on being the operator of the firm with the biggest tungsten deposits, at Nui Phao Mining in Thai Nguyen, northern Viet Nam. In the most severe time of COVID last year, MHT saw its most successful business year in its history, with tungsten output and recycling rates both reaching record highs. What is the secret to this success, and can you tell us about the Nui Phao Mine? When we first came in 2011, Nui Phao appeared to be paddy fields and buffalos. Over three years, we brought in the construction director and built a team of people to take it from an idea or a concept to a commercial operation. At the time we did that, that was the first new tungsten mine to be … [Read more...] about MHT at forefront of global megatrends

The certificates are granted at the event (Photo: VNA) HCM City (VNA) – The management board of the Saigon Hi-Tech Park ( SHTP ) in Ho Chi Minh City granted certificates to three projects to increase their investment by more than 848.74 million USD in total at an investment conference for the park on June 27. The lion’s share of the financial comes from 841 million USD at Samsung Electronics HCMC CE Complex Co., Ltd. The new funding increases the total investment in the factory to over 2.84 billion USD. The other two projects are Hoa Binh innovation centre and a Vietnamese pharmaceuticals factory, which saw their capital rising by 130 billion VND (5.59 million USD) and 30 billion VND, respectively. At the conference, Chairman of the municipal People’s Committee Phan Van Mai said the city wants to listen to investors’ feedback to form related legal frameworks and development orientations for the future. Since its establishment in 2002, the SHTP has granted … [Read more...] about Saigon Hi-Tech Park sees significant capital added to three projects