Workers sort ballpoint pens at a Thien Long Production and Trading Co Ltd factory. — VNA/VNS Photo Danh Lam A fifth of all Vietnamese enterprises do not have access to financial loans, according to the Viet Nam Chamber of Commerce and Industry (VCCI). Capital is a vital resource for a business to develop. Most local enterprises now have very high demand for capital funding in the short-, medium- and long-term, VCCI reported in a meeting on Friday. Credit lending granted by financial institutions is an important channel, VCCI said. To help local companies approach those sources, the Government, ministries, related agencies and lenders must work on a comprehensive joint policy. But due to the low quality of corporate governance and poor financial management, a large number of Vietnamese firms, mostly small- and medium-sized enterprises (SMEs), have not succeeded in winning loans from banks and financial institutions. According to Nguyen Viet Hung from the Ministry of … [Read more...] about Bank loans not accessible for 20% of VN firms
Non bank lenders business loans
Dao Minh Tu, Deputy Governor State Bank of Vietnam To ensure the effective implementation of the National Assembly’s Resolution No.42/2017/QH14 and prime ministerial Decision No.1058/QD-TTg on tackling bad debts of local credit institutions, under our proposals to the government, the local courts shall be urged to accelerate procedures dealing with bad debts. We will also join hands with the People’s Supreme Procuracy and the ministries of Public Security and Justice to facilitate the process of returning collaterals being held as material evidences for criminal cases after related procedures are completed. The ministries, sectors, and relevant units and organisations will be required to scale up efforts to accelerate the streamlining and restructuring of business, laying down the premises for credit institutions to bolster efficiency in tackling bad debts. The General Department of Civil Judgment Execution under the Ministry of Justice needs to shortly introduce … [Read more...] about Sustainable growth tops lender wish list for 2019
Azerbaijani investors eye Vietnamese marketAzerbaijani investors with strong financial capacity and professional performance are keen on landing investments in Vietnam, has said Anar Imanov, Azerbaijani Ambassador to Vietnam.In his remarks at a recent workshop themed “Meet Azerbaijan” in Hanoi, the Azerbaijani Ambassador highlighted Azerbaijani enterprises' advantage of plentiful capital and practical experience in implementing projects in Europe, adding that many are seeking investment opportunities in Vietnam.As one of the world’s leading crucial oil and gas producers and suppliers, Azerbaijan also has great potential to boost its bilateral cooperation with Vietnam in three key fields, including tourism, logistics, and agriculture. The diplomat cited a FAM tour jointly held by the Azerbaijan Embassy in Vietnam and Qatar Airways last year as a big effort to bolster tourism cooperation between the two countries.The FAM tour provided many Vietnamese tourism … [Read more...] about BUSINESS NEWS IN BRIEF 15/1
A report from the Ho Chi Minh Securities Company shows that bank interest rates have risen by 0.46 percentage points for short-term loans since the end of last year to 7-9 per cent and to 9-12.5 per cent for medium- and long-term loans. — Photo vietnambiz.vn A report from the Ho Chi Minh Securities Company shows that bank interest rates have risen by 0.46 percentage points for short-term loans since the end of last year to 7-9 per cent and to 9-12.5 per cent for medium- and long-term loans. The report named lenders such as Agribank, Military Bank, Sacombank, VP Bank and ACB as adjusting their rates upwards in the last two months. The interest rate hikes are said to be the first sign of the central bank trying to reduce money supply to fight inflation. According to experts from the Ministry of Planning and Investment’s National Centre for Socio-economic Information and Forecast, inflation and exchange rates remain under control but are under great pressure, and so prudent … [Read more...] about Tight monetary policy: where can businesses find funds?
Vietnam’s merger and acquisition (M&A) market has seen significant growth over the past decade with a total of 4,353 deals valued at $48.8 billion done. Last year there was the biggest M&A deal ever when Thaibev Group bought 53.59 percent of the country’s largest brewery Sabeco through its subsidiary. This interest is expected to spread to other booming sectors like energy and infrastructure, education, pharmaceuticals, and telecoms in the near future aided by the constant efforts by the government to ease the restrictions on foreign investment in several sectors. In practice, M&A transactions involve guidance from consultants with various kinds of expertise until the deal is closed. The performance of legal due diligence (DD) in conjunction with financial and business DD is the first step in a deal as a pre-contractual investigation before proceeding with any further negotiations between the relevant parties. In M&A transactions, legal DD serves to collate … [Read more...] about Legal due diligence vital for business acquisitions in Vietnam