VN steel export up last year
Central bank must enhance inspection: PM
Prime Minister Nguyen Xuan Phuc on Tuesday required the State Bank of Viet Nam (SBV) to enhance inspection and supervision to ensure the safety of the banking system and increase the confidence of people in the system in 2018.
At yesterday’s meeting to review last year’s performance and prepare for implementing tasks in 2018, Phuc also instructed the banking industry to boost the restructuring of ailing credit institutions.
Besides ensuring the consumer price index of below 4 per cent, the SBV must also further cut lending interest rate and boost consumer lending this year, Phuc said.
He also required the central bank to create favourable conditions for local commercial banks to enhance financial status and operational efficiency, aimed at having a Viet Nam bank, either State-owned or private, at the regional level soon.
The Prime Minister has so far entrusted two deputy prime ministers of Vuong Dinh Hue and Trinh Dinh Dung as well as the SBV to scrutinise the forecast for the real-estate market after 2019 to help the Government actively have suitable policies for the market.
The SBV also needs to soon have regulations to manage the cryptocurrency as instructed by the Government, Phuc said.
At the meeting, Phuc also appreciated the achievements of the banking industry last year, which contributed significantly to the country’s 6.81 per cent GDP growth.
He said that the central bank bought another US$1 billion for the past few days, raising the nation’s total foreign reserves to new record high of $53 billion.
“High foreign reserves, low inflation and suitable forex policy have helped enhance Viet Nam’s prestige and the confidence of investors, firms and the people,” he said.
At the meeting on Tuesday, SBV also announced its key monetary management policies for 2018 with a focus on macro-economic stability.
SBV Governor Le Minh Hung said that SBV aimed to pursue a proactive and flexible monetary policy to cut interest rates to support local firms, besides stabilising foreign currency and gold markets.
The monetary policy in 2018 would work in close conjunction with fiscal and other macro-economic policies in a move to control inflation and support economic growth at a reasonable level, he said.
“Right after the meeting, the central bank will issue Resolution 01 on implementing tasks of the banking sector in 2018, in which it will instruct credit institutions to consider a rate cut for lending interest,” Hung said, adding the central bank will also cut the lending rate in the OMO (open market operations) market to aid the institutions.
The central bank announced a credit growth target of 17 per cent for 2018, lower than the 18.17 per cent last year. It will, however, closely monitor the market to make suitable adjustments from time to time.
SBV stated that lending next year would continuously focus on the Government’s prioritised sectors, such as agriculture, exports, spare-parts industries, small- and medium-sized enterprises and hi-tech firms, while limiting the capital to risky industries such as real estate, securities and consumer lending.
As lending in foreign currencies would continue in 2018 as per a recent circular, SBV said it would strictly control such kind of lending to ensure the country’s de-dollarisation policy.
After raising Viet Nam’s foreign reserves to more than US$53 billion to date this year – a record high in recent years – SBV affirmed it would continuously try to increase the country’s foreign reserves this year besides supporting efforts to stabilise the forex market.
Measures will be also taken to stabilise the monetary market and ensure liquidity of the banking system, the central bank has said, adding it will continue the restructuring of credit institutions and settle non-performing loans.
Assessing the monetary policy management in 2017, Governor Hung said owing to a good foreign currency supply source and a flexible daily reference exchange rate policy, SBV continued the purchase of foreign currencies in 2017, helping the nation’s foreign reserves to hit a new record of more than $53 billion.
Hung quoted Bloomberg’s assessment which reported that the Vietnamese dong was one of the most stable currencies in Asia in 2017.
According to him, liquidity of the domestic foreign exchange market last year was good and met the legal demands of local organisations and individuals.
With the synchronous and flexible management of gold-trading activities in accordance with the Government’s Decree 24, the gold market last year continued to be relatively stable, with a decreasing demand for gold bars in the local market, said Hung.
“Last year, the local market did not see any gold fever and speculation as in previous years, which caused instability in the local foreign exchange market and the country’s macroeconomy. Gold holders converted a part of their gold into the dong for the cause of socio-economic development,” he said.
According to Hung, the successful monetary management policy last year also contributed to maintaining basic inflation at 1.41 per cent, helping the banking system cut lending interest rate by 0.5-1 percentage points in 2017.
Real estate brokers association opens office in Thanh Hoa Tra Vinh: seafood exports expected to reach 352 mln USD in 2018HDBank debuts in HOSE, gets into Top 20 heavyweightsRubber group urged to create value-added productsTH Group sends milch cows to Russian farmSon La: work starts on agriculture processing plantNovaland launches new housing project in HCM CityDHL opens new centre in southern Binh Duong provinceAn Giang targets 840 mln USD in export turnoverHanoi works with nearby provinces to ensure Tet goods supplyHanoi steps up hi-tech agricultural productionHanoi expects to welcome 5.5 million foreign tourists in 2018Hanoi needs EIB’s support to develop urban railwayFirst bank reduces loan interest rates in 2018Projects in major cities go aheadPM stresses importance of stable financial policiesFive-star resort planned on Cat Ba IslandFinancial sector told to stay updated with Industry 4.0 to expand tax baseIFC provides $15.3m for tap water use Hong Kong firm to invest in Hau Giang 2025 maritime industry and trade development plan approved Duc Giang Corporation achieves profit target in 2017 Local firms encouraged to seek Middle East trade Stable financial polices keep business secure: PM HCM City assures goods supply adequate for Tet Business community voices suggestions to improve business climate Experts discuss management models for economic zones Investment opportunities from good growth Samsung asked to support training Bao Viet posts $1.5 billion revenue in 2017 Petrol prices stable, oil prices increase slightly EVN told to develop affordable green power Food safety should be priority for local, export markets Ministry to promote competitiveness of local firms Phu Yen to host investment promotion conference
In a first, domestic tax collection hits VND1 quadrillion
For the first time, domestic tax collection hit the VND1 quadrillion (US$43.9 billion) milestone this year, according to statistics of the General Department of Taxation.
The total collection surpassed the target set by the Government by some 5 per cent.
According to Deputy Minister of Finance Do Hoang Anh Tuan, the total State budget collection was estimated to reach some VND1.3 quadrillion, exceeding the target by nearly VND70,000 trillion, or more than 5 per cent.
Tuan said the private economic sector and foreign direct investment sector contribute significantly to the State budget collection. Tax collection from the non-state sector rose by 23 per cent, FDI sector increased by 20 per cent over the previous year and collection of personal income tax went up by 22 per cent.
Besides this, enhanced tax management also helped increase revenue by more than VND17 trillion.
Tuan said the development of businesses and higher-than-target economic growth of 6.81 per cent together with hastened reform of the tax authorities boosted tax collection.
Ha Noi and HCM City both fulfilled the target of tax collection in 2017. Budget collection estimate of Ha Noi in 2018 was VND218.2 trillion and that of HCM City was VND376,78 trillion, rising 10 per cent and 8.3 per cent over 2017, respectively.
Decision of Thai Binh economic zone’s establishment announced
The People’s Committee of Thai Binh Province on January 3 announced the Prime Minister’s decision on the establishment of the Thai Binh Economic Zone.
The Thai Binh Economic Zone covers an area of 31,000ha in 30 communes and one town in the districts of Thai Thuy and Tien Hai.
It is one of 17 economic zones in Viet Nam, which functions as both an industrial cluster and coastal service-trade-urban area. Investors in the zone will receive incentives in line with the Government’s policy.
Speaking at the decision announcement ceremony, chairman of the provincial People’s Committee Nguyen Hong Dien said this was a very important event, marking the first step in the formation and development of the Thai Binh Economic Zone.
Once operational, the zone will capitalise on the potential of the local workforce, land and natural gas resources, and convenient transport networks, he noted.
The zone is expected to contribute significantly to the province’s socio-economic development in the future.
A steering committee for the construction of the Thai Binh Economic Zone will be set up and led by chairman of the provincial People’s Committee Nguyen Hong Dien.
Also, at the ceremony, the establishment of a management board for economic zones and industrial parks of Thai Binh Province was declared, with vice chairman of the provincial People’s Committee Pham Van Ca being appointed as its head.
Can Tho set to increase Japanese investment
The southern city of Can Tho will take up a series of activities this year to strengthen cooperation with Japan and attract Japanese investors.
Speaking at a conference of the city’s working group on Japan-related issues (Japan Desk) on Tuesday, Nguyen Khanh Tung, director of the city’s Centre for Investment, Trade Promotion and Exhibition, said one of the activities was the construction of an ICT Innovation Centre developed by the Brainworks Company.
Other activities will include a trade and investment promotion conference in Japan’s Hyogo prefecture, a meeting with Japanese investors in Ha Noi and a dialogue with Japanese firms.
In April, Can Tho will launch a model farm project, the first of its kind in the city.
The project is jointly developed by the Can Tho College for Economy and Technology and Japan’s VAIO Company. The aim is to impart high-quality training to agriculture experts in Can Tho and build facilities to apply agricultural technology similar to Japanese agri-businesses.
A Viet Nam-Japan Industrial Park will also be constructed, Tung said.
Truong Quang Hoai Nam, vice chairman of the People’s Committee of Can Tho, said many Japanese investors were interested in Viet Nam, but only a few Japanese firms were doing business in the city.
Therefore, he said, Can Tho needed to make a breakthrough in attracting Japanese investments.
According to the Can Tho Centre for Investment, Trade Promotion and Exhibition, by the end of 2017, the city accommodated 77 projects with foreign investment worth US$656 million. Its export and service revenue in the year hit $1.77 billion, exceeding the city’s target by 5.9 per cent and representing a year-on-year rise of 13.9 per cent.
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