Deposits at banks modest due to low interest rates A person arranges stacks of Vietnamese banknotes. Capital has been poured into other sectors rather than banks due to their low deposit rates According to the Department of Credit for Economic Sectors under the State Bank of Vietnam, in the first quarter of this year, the deposit growth reached only 0.54%, well below the credit growth of 2.93% and the average deposit growth of 2.28% in the first quarter of the past seven years, Lao Dong newspaper reported. At present, the rate for savings of less than six months is 3%-4%. Meanwhile, tenors of six to less than 12 months and over 12 months enjoy a rate of 3.5%-5.5% and 4.6%-6%, respectively. Although some banks have revised up their deposit rates by 0.1-0.4 percentage points, the banks’ average deposit rate in the first quarter remained some 2 percentage points lower than that in the same period last year. If the trend continues, the banking system’s liquidity will no longer be ample this year, according to Bao Viet Securities Company. Meanwhile, the General Statistics Office stated that capital had been injected into other sectors, with life insurance premium soaring 11%. Meanwhile, the securities market mobilized nearly VND55.6 trillion, surging 42% over the same period last year. Pham Lam, vice chairman of the Vietnam Association of Realtors, attributed land fevers over the past few months partly to residents’ idle money and their expectations of higher prices of real estate products. According to Dao Minh Tu, deputy governor of the central bank, as of mid-March, banks’ outstanding loans for the property sector grew 2.13%, higher than the current credit growth of 2.04%, despite the central bank’s close control over credit for the sector. Market rebounds, VN-Index returns to 1,250 point-level Shares settled higher on Wednesday, reversing their morning course on recoveries of materials and banking stocks. The benchmark VN-Index …
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Lack of quality human resources affect Việt Nam’s fisheries activities
THANH HÓA — Central provinces are facing a shortage of seamen in both quality and quantity, hindering the development of fisheries industry as many boat owners are forced to sell their ships and change their jobs. With a coastline of 102km, Thanh Hóa Province is considered to be in an ideal position for fisheries activities. However, offshore fishing fleets in the province are struggling while locals are no longer interest in fishing. The hustle and bustle in the past is completely absent at the Lạch Hới fishing port in Sầm Sơn City which once seen baskets full of freshly-caught seafood are transported ashore and then traders deliver to many places. Hundreds of big and small boats quietly anchored at the port although the first months of the year was considered as the “golden season” for fishermen. Nguyễn Văn Tuyên, director of Lạch Hới fishing port said the number of ships arriving and leaving the port have reduced significantly. “Our port now operates at about 35 per cent of its capacity,” he said, blaming on economic restructuring which causes local workers away from fishing. Phạm Gia Sơn, a ship owner, said his family has been attached to this ship for many generations. “We used to make 3-4 fishing trips a month and need 12-14 labourers for a trip but we have faced a lot of difficulties in the past two years due to scarcity of labourers,” he was quoted by Quân đội nhân dân (People’s Army) newspaper as saying. Sơn said those who have experience and have attachment to the marine for many years have shifted to other jobs. “Although we are fully prepared to sail offshore, our ship dock for days because we could not find enough workers,” Sơn said, adding that there were trips that only the shipowner and the chief engineer are professional and the rest are seasonal labourers. Echoing Sơn’s opinion, Nguyễn Văn Long, director of Ngọc Sơn Seafood Processing Co.Ltd said the hiring of seamen has met many difficulties over recent years. His company …
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Delayed Law on Land holding up real estate
A new Law on Land is needed, but it could take a good three years for a new itineration. Photo: Le Toan According to previous proposals, the Law on Land 2013 was to be revised at some point after the 13th National Party Congress. A new law was to be considered within the year, with the National Assembly able to discuss the revised draft by the end of 2022. If all goes to plan, the revised law would then need at least three years before being approved. Simultaneously, and with the party congress now in the rear view mirror and a new government in the process of taking the reins, a summary report of the implementation of the 2013 land law is being led by the Ministry of Natural Resources and Environment (MoNRE), involving every ministry and local authority. The summary report will be sent to the government and submitted to the National Assembly in the second quarter of 2023 the latest. According to Dang Hung Vo, former deputy minister of Natural Resources and Environment, the current Law on Land contains conflicts with many other laws such as those on housing, real estate business, forestry, zoning, and public asset management. “The overlap among those laws is the main reason for limiting the new supply for the real estate market as demand continuously increases. This leads to rocketing price increases and speculation which makes the market unstable,” Vo said. Meanwhile, the weakness of the current Law on Land has also created struggles for administrative policies and implementation of land issues, especially in compensation. Talking with VIR, Lim Hua Tiong, CEO of Frasers Property Vietnam expressed that a revised land law is necessary to enhance the flow of foreign investment to Vietnam – and that means a law with shorter processes, clearer and less complicated regulations, and elimination of conflicts with other laws that would all help investors make faster decisions and open up major chances for their success in Vietnam. “It must offer equal …
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