The Law on PPP could be the catalyst to an upturn in fortunes forprivate sector infrastructure financing Photo: Le Toan After a decade of delays, Trung Luong-My Thuan Expressway, a key national transport project connecting the southwestern region with Ho Chi Minh City and the southern economic region, was thought to be back in the game in 2017 after an increase of investment capital to VND9.67 trillion ($420.4 million) and a completion schedule extension to 2020. However, the build-operate-transfer (BOT) venture could fail to meet the deadline due to a block in capital inflow. At a recent meeting with the Ministry of Transport (MoT), BOT Trung Luong-My Thuan JSC, the investor of the project, said that the loan for the project was signed a year ago but has not been disbursed so far. The lenders, namely VietinBank, BIDV, VPBank, and Agribank, asked for stricter conditions that the investor is finding difficult to meet. They include the requirement to have equity of … [Read more...] about Build operate transfer ventures look for boost
Business looking for funding
HDBank has just launched a loan package for hi-tech agricultural businesses, Photo: Le Toan Financial institutions in Vietnam are joining the green lending segment with gusto, driven by new regulations and the need to widen their client network. The latest newcomer is HDBank, which just announced that it would launch a loan package worth VND10 trillion ($434.78 million) for hi-tech businesses in agriculture. They can borrow with preferential interest rates that are 1 per cent lower than usual with the repayment period of up to 10 years. According to HDBank, besides this loan package, the bank also worked with supermarkets and convenience stores nationwide to fund export programmes for Vietnamese produces. Beforehand, the bank already put aside VND7 billion ($304.34 million) for solar energy projects. Another eager participant is Nam A Bank, which last December signed a partnership contract with the Global Climate Partnership Fund, a public-private partnership initiated by the German … [Read more...] about Lenders look for greener finance
Finnish Minister of Economic Affairs Mika Lintila (second from the left) attends a meeting in Hanoi Promoting innovation Finland regards Vietnam as an important market in Southeast Asia, as attested to by the presence of 120 Finnish companies operating in Vietnam, Lintila said. Finland and Vietnam signed the Vietnam-Finland Innovation Partnership Program (IPP) Phase 1 (2009-2014) and Phase 2 (2014-2018). The IPP, an official development assistance (ODA) program funded by the Vietnamese and Finnish governments, has made important contributions to promoting innovation in Vietnam and supporting a national innovative startup ecosystem. Lintila affirmed that Finland would create favorable conditions for Vietnamese businesses to promote innovation, as well as further strengthen cooperation programs between the two governments. According to the Vietnamese Ministry of Industry and Trade, total trade turnover between the two countries has increased consistently over the years. This … [Read more...] about Finland looks for new partners in Vietnam
According to a 2018 report by the World Bank, Vietnam's credit access index ranks 29th out of 190 economies surveyed, higher than the average of the Organization for Economic Co-operation and Development (OECD) and East Asia & Pacific. But Vietnamese small and medium-sized enterprises (SMEs) said it is a big challenge for them to access credit. According to the Vietnam Chamber of Commerce and Industry (VCCI), only 30 percent of SMEs in Vietnam have access to loans from the formal sector, with the rest having to use their own funds or depend on unregulated loans. This makes it hard for them to find business opportunities and solve other problems with respect to cash flow, working capital, and debts. The VCCI has drawn up a list of loans types and the challenges each segment faces. Bank loans Many banks have made it possible for SMEs to get access to credit. In the past few years most joint stock banks have earmarked tens of trillions of dong ($1=VND23,381) for priority sectors. … [Read more...] about Who do Vietnam’s small and medium-sized enterprises turn to for funds?
Singaporean enterprises seek opportunities in Vietnam A Singaporean mission of nearly 20 firms will visit Vietnam from October 15 to 19 to sound out cooperation prospects. The trip is jointly held by the Vietnam Trade Office in Singapore, the Malaysia-Singapore Chamber of Commerce and Industry and the Singapore Business Federation. According to the organizers, the Singaporean delegation includes representatives of large corporations, such as Sembcorp, which has developed seven Vietnam-Singapore industrial park projects in Vietnam, and NTUC, the retailer accounting for more than half of Singapore’s market share. Besides visits to corporations and industrial parks in Vietnam, there will be trade promotion meetings in HCMC and Can Tho City so that enterprises of the two countries can seek partners and export goods. Representatives of the South Agency of the Ministry of Industry and Trade, the HCMC Department of Industry and Trade and the Vietnam Trade Office in Singapore will also … [Read more...] about BUSINESS NEWS IN BRIEF 18/10