Work is underway to lift the bad debt cloud from the economy. The Vietnam Asset Management Company (VAMC), the main weapon to attack debts, is in place with VND500 billion ($23.8 million) in chartered capital at its disposal, the VAMC envisages tackling nearly VND100 trillion ($4.7 billion) in bad debts. Through issuing bonds for debt purchases, the VAMC seeks to address bad debt dilemma without using the state budget. Senior financial expert Dr. Nguyen Tri Hieu, however, warned that to tackle such a huge bad debt amount, the VAMC would need to use big financial leveraging which was risky. “Assuming that the VAMC bought VND50 trillion ($2.38 billion) worth of bad debts, it would need to pay commercial banks special bonds of the same value. Banks then take these bonds to the State Bank asking for refinancing with 50 per cent discount of the bond value to get back VND25 trillion ($1.2 billion). This means the VAMC could have around $1.2 billion in total asset value versus … [Read more...] about Tools to recalibrate economy
Economy
IATA: Weak economy, weak profits
The International Air Transport Association (IATA) announced an upgrading of its industry profit expectations to $6.9 billion (up from $4.0 billion projected in June). IATA emphasized that, despite the improvements, profitability at these levels is still exceptionally weak (1.2% net margin) considering the industry’s total revenues of $594 billion. In its first look at 2012, IATA is projecting profits to fall to $4.9 billion on revenues of $632 billion for a net margin of just 0.8%. “Airlines are going to make a little more money in 2011 than we thought. That is good news. Given the strong headwinds of high oil prices and economic uncertainty, remaining in the black is a great achievement,” said Tony Tyler, IATA’s Director General and CEO. “But we should keep the improvement in perspective. The $2.9 billion bottom line improvement is equal to about a half a percent of revenue. And the margin is a paltry 1.2%. Airlines are competing in a very tough … [Read more...] about IATA: Weak economy, weak profits
Ministers of Tourism of major world economies call on decision-makers to use tourism to stimulate the economy
The Ministers of Tourism of the major economies meeting in Paris for the 3rd T20 Ministers’ Meeting have called on decision-makers to consider tourism within their strategies to foster the economy and when facing mounting challenges, namely that of job creation (Paris, France, 25 October 2011). The meeting approved a declaration calling on members of the G20 to “register the importance and impact of tourism as a topic of discussion in the coming years’ summits” considering the “significant economic and social potential of tourism for the global economy, employment and sustainable development”. “We need to convince our decision-makers of the importance of tourism to the economy and employment,” said Mr. Frederic Lefebvre, Minister of Tourism of France, opening the meeting. “In these challenging times, we need to maximize our strengths and tourism is one of them,” he added. “Tourism can be part of the solution to the … [Read more...] about Ministers of Tourism of major world economies call on decision-makers to use tourism to stimulate the economy
International tourism strong despite uncertain economy
International tourist arrivals grew by 4% between January and August 2012 compared to the same period of 2011 according to the latest UNWTO World Tourism Barometer. The resilience of international tourism in a continuing uncertain economy is further confirmed by the positive data on tourism earnings and expenditure. “This growth is a very positive result in view of the global economic situation. We must remain cautious, however, as we have also observed some weaker months during the year, a trend that might return in the remainder of the year,” said UNWTO Secretary-General, Taleb Rifai. Growth slowed down in June (+2.7%) and July (+1.4%) as compared the first five months of the year (average of 5%), yet recovered in August at 4%, a positive result for the month that accounts for the highest volume of international tourism in the year. UNWTO expects growth of 3% to 4% for the year as a whole, while forecasting a slight slowdown in demand for 2013 (+2% to 4%). … [Read more...] about International tourism strong despite uncertain economy
Nha Trang Sea Festival to boost marine-based economy
The Nha Trang Sea Festival 2011, which opened in the coastal city of Nha Trang on the evening of June 11, will include over 60 cultural, arts and sports events as well as many big conferences on developing Vietnam’s marine-based economy. Many of these activities aim to assert Vietnam’s sovereignty over the Truong Sa (Spratlys) Islands, which are a district of Khanh Hoa province. The five-day festival is also expected to promote the central coastal province of Khanh Hoa’s potential for tourism and marine-based economy, and to call for more investment in the province. At the opening ceremony of the biennial event, Deputy Prime Minister Nguyen Thien Nhan highlighted the importance of a marine-based economy and of building on the roles of sea and islands in the country’s socioeconomic development. Vice Chairman of the Khanh Hoa People’s Committee Le Xuan Than delivered the festival’s message, appealing for people’s efforts to protect sea, islands, … [Read more...] about Nha Trang Sea Festival to boost marine-based economy