Five Strategic Solutions to Accelerate Vietnam Economic Development Vietnam has adopted many right policies and measures to restore and develop the domestic economy and deal with numerous difficulties on financial and monetary markets. The banking sector has initially stabilised and interest rates have been slashed a lot. However, many dark spots still exist in the macroeconomic picture. Many industries like banking, finance, insurance, securities, real estate, construction, building material, cement, iron and steel, engineering, transportation and shipbuilding are still struggling with hardships like oversupply, bad debts and weak competitiveness. Meanwhile, the Government lacks effective measures to business system reform. To reform enterprises, the State needs to create a legal framework for changes in shareholder structure in big companies from State shareholder and individual shareholders into institutional shareholders and strategic shareholders (not State-owned enterprises) … [Read more...] about Five Strategic Solutions to Accelerate Vietnam Economic Development
When Japan’s Prime Minister Shinzo Abe met with Prime Minister Dung late last year at the Japan-Vietnam Summit Meeting, it was not just an indication of their strong personal relationship but also a reflection of the potential they see for increased economic cooperation between the two Asian economies. While Japanese corporates have been investing in Vietnam for years, their role as project financiers is set to grow in the future. Vietnam’s enormous future infrastructure requirements can only be satisfied if the country draws overseas funding, and there is little doubt that a major portion of this will come from Japan. The two countries have complementary investment needs. With depressed yields at home, Japanese institutional investors are increasingly looking abroad for higher returns to fund, amongst other things, retirement obligations for their aging population. Meanwhile, Vietnam desperately needs to tap into overseas pools of liquidity for the investment funds … [Read more...] about Japanese funding drives Vietnam economic growth
Vietnam Economic Zone Attracts US$15.3B Projects So Far Vietnam's central province of Khanh Hoa-based Van Phong economic zone (EZ) has to date licensed 84 projects totaling US$15.3 billion. Between January and November, the EZ’s authority licensed 13 projects totaling VND4.718 trillion and allowed three existing projects to add US$66.8 million. The province has approved a list of 49 projects with a total investment of US$4.7 billion to call for foreign and domestic investments through 2015. The projects include expansion of Van Phong International Transshipment Port and construction of Hon Gom Trade and Service Complex. Other projects are in the fields on industry, construction, tourism service, agriculture, forestry and communication technology. The province, which is a center of tourism and shipbuilding in Vietnam, now home to five shipyards including Hyundai-Vinashin, Nha Trang, Cam Ranh, Nam Cam Ranh IP and South Korea’s STX. P.V more news … [Read more...] about Vietnam Economic Zone Attracts US$15.3B Projects So Far
Concerns over Vietnam Economic Recovery Domestic and international developments are posing a lot of problems to Vietnam, although the domestic economy has signs of stability. In this situation, the Vietnam Centre for Economic and Policy Research (VEPR) under the Vietnam National University of Hanoi (VNU Hanoi) and the Australian Embassy in Hanoi recently co-organised the Launching Workshop of Vietnam Annual Economic Report 2014, themed “The Constraints to Growth.” This was an opportunity for Vietnamese and international economists to review and put forth their best suggestions for Vietnam’s reform. Slow recovery Dr Nguyen Duc Thanh, Director of VEPR and Author of the Annual Vietnam Economic Report 2014, said although the Vietnamese economy has made a certain level of recovery, it remains below its potential and expectations. VEPR has two macroeconomic growth scenarios for Vietnam. VEPR envisages a lower growth rate than in 2013. The less optimistic scenario puts … [Read more...] about Concerns over Vietnam Economic Recovery
Vietnam Economic Restructuring: Golden Chance for Businesses? Prime Minister Nguyen Tan Dung has just approved the Master Plan on Economic Restructuring in the 2013 - 2020 period, with a growth paradigm change towards higher growth quality, efficiency and competitiveness, which focuses on reorganising public investment, credit organisations and State-owned enterprises. So, is there any opportunity for Vietnamese businesses when resources are reallocated? The master plan aims at creating a system of reasonable, stable and long-term stimuli, especially tax incentives and other investment-encouraging measures, promoting the distribution and use of social resources for sectors and products of competitive advantages, improving labour productivity and competitiveness. The plan aims at forming and developing a rational economic structure on the basis of improving and upgrading development levels of sectors, fields and economic regions; development industries using high tech, creating … [Read more...] about Vietnam Economic Restructuring: Golden Chance for Businesses?