Vietnam’s state-owned enterprises will continue to sell shares to foreign investors over the next year, with regulations being improved to facilitate cross-border deals. Before attending the financial investment promotion forum in London, Nguyen Duc Chi, chairman of State Capital Investment Corporation (SCIC), shared with VIR’s Phong Lan some of the upcoming sales. Nguyen Duc Chi What opportunities do you bring to Europe this time, through the forum in the UK? Based on plans approved by the prime minister, SCIC is scheduled to equitise five state-owned enterprises (SOEs) and divest from 132 others by 2020. In past years, SCIC has carried out a number of high-profile transactions that attracted both foreign and domestic investors. For example, the two stake sales of Vinamilk in 2016 have raised $800 million for the state budget, in exchange for 8.73 per cent of Vinamilk’ stake. We also sold 29.49 per cent of Binh Minh Plastics’ stake for $100 million, … [Read more...] about Encouraging long term foreign interest in SOEs
Long term partner
Banks look abroad in rush for long-term capital
Struggling to attract domestic funds, banks are rushing to seek foreign capital ahead of the central bank’s tightened policy on medium- and long-term lending early next year According to the State Bank of Viet Nam (SBV) regulations, short-term funds for medium- and long-term loans at banks will be reduced from the current 45 per cent to 40 per cent from January 1, 2019. Banks will also need more capital to meet a capital adequacy ratio (CAR) of 8 per cent in 2020 as per the SBV’s Basel II norms. To prepare for the regulations, besides increasing interest rates for long-term deposits to attract depositors, banks also have to find capital from foreign partners. Saigon Hanoi Commercial Joint Stock Bank (SHB) recently took a US$20 million loan for a term of five years from Russia’s International Investment Bank and a 20 million euro loan under a credit agreement framework with Russian International Bank for Economic Cooperation. According to SHB, the loans will help the … [Read more...] about Banks look abroad in rush for long-term capital
Foreign firms provide long-term commitments
According to the Ministry of Planning and Investment (MPI), businesses from 129 countries and territories have invested an accumulated US$334 billion in over 26,500 projects in Viet Nam over 30 years of accepting foreign direct investment (FDI). FDI has proven to be a major driver of Viet Nam’s impressive economic growth. Viet Nam News reporter Vu Hoa talks with a prominent economist and two foreign investors about the 30-year journey and a new vision for foreign investment in the face of the Fourth Industrial Revolution. Nguyen Dinh Cung Nguyen Dinh Cung, director of the Central Institute for Economic Management (CIEM) under the Ministry of Planning and Investment How do you assess the contribution of FDI over the past 30 years? FDI sector has contributed a lot of capital to Viet Nam’s development, accounting for a quarter of the total. These investments created jobs for labourers and contributed to growth. When FDI firms export, Viet Nam collects foreign currency to … [Read more...] about Foreign firms provide long-term commitments
Vietnam’s economic growth is on track but risks for long-term prospect remain
The Hanoitimes - The inflation target of under 4% in 2018 would be achievable if there is no major change in energy prices in the fourth quarter. Vietnam's GDP is projected to reach over 6.8% in 2018, however, internal and external risks are going to have significant impacts on the country's long-term prospect, according to the Vietnam Institute for Economic and Policy Research (VEPR). Overview of the VEPR's workshop. Source: Ngoc Thuy. Vietnam's economy in the third quarter expanded 6.88% year-on-year, leading to the overall growth of 6.98% in the January - September period, the best nine-month performance since 2011, stated Nguyen Duc Thanh, VEPR's director. "Vietnam is on track to reach and even exceed the growth target of 6.7% set by the National Assembly for the entire year," Thanh said at the launch of VEPR's quarterly macroeconomic report on October 10. In the long term, the Vietnamese economy will receive multi-dimensional impacts from … [Read more...] about Vietnam’s economic growth is on track but risks for long-term prospect remain
India continues VN’s faithful, long-term partner
Deputy PM, FM Pham Binh Minh and Indian FM Sushma Swaraj co-chair the 16th meeting of the Viet Nam-India Joint Committee on Economic, Commercial, Scientific and Technological Cooperation, Ha Noi, August 28, 2018 - Photo: VGP/Hai Minh Deputy PM, FM Pham Binh Minh and Indian FM Sushma Swaraj on August 28 co-chaired the 16th meeting of the Viet Nam-India Joint Committee on Economic, Commercial, Scientific and Technological Cooperation. At the press conference after the meeting, Deputy PM Minh said that the two sides effectively and practically exchanged and proposed measures to boost Viet Nam-India Comprehensive Strategic Partnership more intensively across all fields. He supposed that the maintenance of high-ranking delegation exchanges have manifested high political trust. The two sides agreed to strengthen delegation exchanges at all levels and accelerate current dialogue mechanisms as well as highly spoke of … [Read more...] about India continues VN’s faithful, long-term partner