VietNamNet Bridge – Vietnam’s public debt rose by about 12.2%, from 50% of GDP in 2011 to 62.2% at the end of 2015. Admitting the rapid increase of public debt, the Ministry of Finance (MOF) has confirmed that the structure of Vietnam's public debt is gradually being adjusted towards more sustainability with the ratio of foreign debt declining. Mr. Vo Huu Hien, Deputy head of the Debt Management and External Finance Department of the MOF, said the structure of public debt of Vietnam by the end of 2015 included: government debt accounting for 80.8%, Government guaranteed debt 17.8%; and local government debt 1.4%. In the government debt structure, the part of domestic debt rose from 39% in 2011 to 57% in 2015 while the proportion of foreign debt decreased from 61% in 2011 to 43% in 2015. Hien affirmed that such development is consistent with the national strategy on public debt and external debt in the 2011-2020 period and the vision to 2030. According to Hien, the … [Read more...] about What does the Finance Ministry say about Vietnam’s public debt structure?
As a developing country which is integrating in the international economy, Vietnam increasingly needs investment for development. Public debts are still important financial sources to offset state budget deficit for economic growth and sustainable development. Public debt effectiveness depends largely on policies of debt management. As a developing country which is integrating in the international economy, Vietnam increasingly needs investment for development. Public debts are still important financial sources to offset state budget deficit for economic growth and sustainable development. Public debt effectiveness depends largely on policies of debt management. … [Read more...] about Improving public debt management
The unexpected report about the banks’ bad debts to the real estate sector has been released by the National Finance Supervision Council, which shows that the actual bad debts are much higher than the figures announced before by government agencies. Actual bad debts 1.8 times higher than previously reported By the end of 2011, the total outstanding loans provided to fund real estate projects had reached 348 trillion dong. The figure, according to the National Finance Supervision Council, is 1.8 times higher than the figure released by commercial banks before, at 200 trillion dong. The Ministry of Construction and the State Bank of Vietnam were the two ministries which released the figure of 200 trillion dong, affirming that the real estate credit is not a worrying problem. Also according to the council, the actual bad debts of commercial banks are 8 times higher than the figures released by the banks themselves. This shows that since June 2011, when the bank bad debt problem … [Read more...] about Banks’ bad debts to real estate sector worse than initially reported
Key solutions to socio-economic development by 2017The Government issued Resolution 01/NQ-CP, dated January 1, 2017 on major tasks and solutions guiding the implementation of socio-economic development plan and State budget estimate for 2017. Raising national competitivenessResolution 19-2017/NQ-CP on further implementation of key tasks and measures to improve the business environment and enhance national competitiveness in 2017 and towards 2020 was introduced on February 6, 2017. Promoting sectorsOn June 2, 2017, the PM issued Directive 24/CT-TTg on key tasks to enhance the growths of areas and sectors to fulfill the economic growth target in 2017. Ministries, agencies, localities were asked to strive for the preset goal for GDP growth rate in every sector and area. Especially, agriculture must expand 3.05%; industry and construction 7.91%; and service 7.19%. Gas industry developmentPM Nguyen Xuan Phuc ratified Decision 60/QD-TTg on January … [Read more...] about Gov’t management hallmarks in 2017 (Part 1)
The commercial banking system in Vietnam has four members reaching over 1quadrillion VND in total assets, including Vietcombank, Agribank, BIDV and Vietinbank. (Photo: Vneconomy.vn)Hanoi (VNA) - Asof December 31, 2017, the total assets of the Bank for Foreign Trade of Vietnam(Vietcombank) reached 1.05 quadrillion VND (46 billion USD).This makes it the fourth bank of Vietnam possessing total assets exceeding 1quadrillion VND.Vietcombank is the focal point of purchasing nearly 5 billion USD in the Statecapital’s divestment at Saigon Beer, Alcohol and BeverageCorporation (Sabeco) on December 29, 2017.This transaction, equivalent to 110 trillion VND, pushed Vietcombank’s totalassets to exceed 1 quadrillion VND only a few days before the end of 2017,two years earlier than the targeted plan in 2020.Till date, the commercial banking system in Vietnam has four members reachingover 1 quadrillion VND in total assets, including the Bank for Agricultureand … [Read more...] about Vietcombank’s total assets exceed 1 quadrillion VND