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 …
National congress of the communist party of china 2017
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 …
[Read more...] about Delayed Law on Land holding up real estate
Government should immediately get to work, build on achievements: PM
At the day-long session, PM Chinh pointed out a range of difficulties facing the nation such as complex developments of the COVID-19 pandemic and lower-than-target growth in the first quarter. He requested related ministries and sectors collaborate to build the Government's action plan to implement the Resolution of the 13th National Party Congress. The Ministry of Planning and Investment should submit the plan to the Government at its monthly meeting for April, he said, adding that the plan ought to be practical, feasible, effective, and based on the Party' orientations and policies and the State's law. The PM assigned the Government Office to coordinate with relevant agencies and localities in quickly assessing and amending the Government's working regulations to make their contents clearer and more understandable for easier check and inspection. Regarding the disbursement of public investment, the PM ordered heads of ministries, sectors, and localities to be responsible for the work directly and comprehensively. He highlighted the importance of active COVID-19 prevention and control, quick quarantine, and effective treatment and handling of outbreaks. PM Chinh urged the Ministry of Heath to soon complete and implement the "vaccine passport" scheme, noting that there is a need for mechanisms to encourage and facilitate eligible organisations and enterprises to purchase vaccines and conduct vaccinations as well as the promotion of vaccine research and development in the country. The Government leader ordered the elections of deputies to the 15th National Assembly and all-level People's Councils for 2021-2026 to be organised in a safe, democratic, disciplined, open and transparent manner, and the national high school examinations to be held in line with the law with safety and quality. …
[Read more...] about Government should immediately get to work, build on achievements: PM