Võ Trí Thành* The world was astonished when Facebook in June announced its future launch of its digital currency Libra, a blockchain-based token that is designed to let you make instant transfers via Facebook’s services like Messenger, WhatsApp and Instagram. With about 2.4 billion users, if this plan is put into practice, Facebook’s new cryptocurrency could become a game changer for the world’s banking system. Let’s set aside the skeptical attitude as well as critics of lawmakers in many countries and talk about the boom of disruptive technology and future development of the digital transformation. Disruptive technology and digitalisation is a new but irreversible trend. It is significantly altering the ways people live and businesses operate. Recent examples of the use of disruptive technologies include financial technology (fintech), e-commerce and ride-sharing. Because it is new and complicated, the policy responses of most countries, … [Read more...] about Libra: a push for Việt Nam’s disruptive policy building efforts
Sets most policies concerning monetary policy and interest rates
Brazil begins AD sunset review on Vietnam’s rubber tyres for bicycles A rubber tyre for bycicles (Illustrative photo: Ministry of Industry and Trade) The Department of Commercial Defence (Decom) under Brazil’s Ministry of Industry, Foreign Trade and Services has initiated a sunset review of the anti-dumping duty order on new rubber tyres for bicycles classified under NCM 4011.50.00 from Vietnam, India, and China. Decom initiated anti-dumping duties against the product in December 2014, with duties imposed on Vietnam’s rubber bicycle tyres standing at 0.59-2.8 USD per kg. The department required exporters of relevant countries to respond to questionnaires indicating the information necessary to the investigation on Decom’s portal decomdigital.mdic.gov.br. They shall have a 30-day deadline for response, counting from the date of notification. The deadline can be extended up to 30 days based on request of relevant sides, the Brazilian authority added. … [Read more...] about BUSINESS NEWS IN BRIEF 14/3
THE GOVERNMENT SOCIALIST REPUBLIC OF VIET NAMIndependence - Freedom - Happiness No. 09/NQ-CP Ha Noi, February 03, 2019 RESOLUTION THE GOVERNMENT’S REGULAR MEETING – JANUARY 2019 THE GOVERNMENT Pursuant to the Law on Organization of the Government dated June 19, 2015; Pursuant to the Government’s Decree No. 138/2016/ND-CP dated October 01, 2016 promulgating the working regulation of the Government; Based on the discussion of the delegates and the conclusion of the Prime Minister at the Government’s regular meeting in January 2019, held on January 31, 2019, DECIDES 1. On the socio-economic situation in January 2019 and the implementation of the Government’s Resolution No. 01/NQ-CP The Government agreed that the socio-economic situation in January 2019 continued to witness positive changes. The people believed in the leadership of the Party and the State. Most ministries, agencies and localities had issued specific programs and action plans to … [Read more...] about The Government’s regular meeting-January 2019
Sebastian Eckardt, lead economist of the World Bank in Vietnam, has recommended the State Bank of Vietnam (SBV) to remove the credit growth quota set for each year and let the market determine the credit demand in the economy on its own, as the capital adequacy ratio (CAR) is not deemed sufficient. He advocated the abrogation of administrative measures limiting banks’ credit growth and supported the idea of controlling such growth by a safety ratio instead. However, he also warned about the high credit-to-GDP ratio in Vietnam. According to the ‘Taking stock: An update on Vietnam’s recent economic developments’ report released by the World Bank in December 2018, although local monetary policies remain accommodative, credit conditions have been tightened. The SBV trimmed its credit growth target to 17 per cent in 2018 from the 18 per cent set in the previous year. The monetary authority has also reinstated its view on controlling lending to high-risk sectors, … [Read more...] about Is it time to wave good bye to the credit growth ceiling?
Powell sets Fed's course with data-based judgementThe Saigon Times Daily Federal Reserve Chairman Jerome Powell testifies before a House Financial Services Committee hearing on the “Semiannual Monetary Policy Report to Congress," at the Rayburn House Office Building in Washington, U.S., July 18, 2018 – PHOTO: REUTERS JACKSON HOLE (REUTERS) - Federal Reserve Chair Jerome Powell has begun putting his stamp on the U.S. central bank as someone who will rely more on data-informed judgement and less on some of the models and theoretical values that have shaped the Fed’s course in recent years but that Powell has said can be false guides. In doing so he may be laying the groundwork for a longer-than-expected rate-increase cycle, as discussion intensifies among policymakers about what level of borrowing costs is appropriate in an economy that is nearly back to full health. In addition, the full stimulative effects of President Donald Trump’s tax cuts and … [Read more...] about Powell sets Fed’s course with data-based judgement
The consumer price index jumped by 2.22 per cent in June and 4.6 per cent from a year earlier, a seven-year high, the General Statistics Office (GSO) reported. — Photo thoibaonganhang.vn The rest of this year is likely to be a difficult period for the economy meaning challenges for the Government in achieving the targets set for the year. The problems include a weakening of the dong against the dollar and rising inflation, interest rates and public debt, and the Government will be walking a tightrope in terms of monetary policy. The consumer price index jumped by 2.22 per cent in June and 4.6 per cent from a year earlier, a seven-year high, the General Statistics Office (GSO) reported. Inflation in the first six months of the year was up to 3.29 per cent. GSO experts attributed the sharp increase in inflation in recent months to the rise in prices of several major products and services. Of 11 major categories of goods and services, nine saw prices increasing. Transportation … [Read more...] about Trillion đồng question: to tighten monetary policy or not?
New enterprises up 5.3% in H1 More than 64,350 new enterprises were formed in the first half of this year with a total registered capital of VND648.9 trillion (US$22.95 billion). These figures, marked year-on-year increases of 5.3 per cent in the number of businesses and 9 per cent at the level of capital, the Business Registration Management Agency, operating under the Ministry of Planning and Investment reported. Experts at the agency attributed the period’s positive performance to the improving business conditions and registration procedure. According to experts, the newly-established firms have a tendency to rise since the beginning of this year. Notably, the second quarter of this year saw the highest number of new firms and level of registered capital over the past five years with 37,750 units, registering $11.8 billion in capital, up 41 per cent and 33 per cent, respectively. In the first six months, the average capital for an enterprise reached VND10.1 billion, surging … [Read more...] about BUSINESS IN BRIEF 6/7
Fed lifts rates amid stronger inflation, drops crisis-era guidanceThe Saigon Times Daily Federal Reserve Board Chairman Jerome Powell speaks at his news conference after the two-day meeting of the Federal Open Market Committee (FOMC) on interest rate policy in Washington, U.S., June 13, 2018 – PHOTO: REUTERS WASHINGTON (REUTERS) - The Federal Reserve raised interest rates on Wednesday, a move that was widely expected but still marked a milestone in the U.S. central bank’s shift from policies used to battle the 2007-2009 financial crisis and recession. In raising its benchmark overnight lending rate a quarter of a percentage point to a range of 1.75% to 2%, the Fed dropped its pledge to keep rates low enough to stimulate the economy “for some time” and signaled it would tolerate inflation above its 2% target at least through 2020. “The economy is doing very well,” Fed Chairman Jerome Powell said in a press conference after the rate-setting … [Read more...] about Fed lifts rates amid stronger inflation, drops crisis-era guidance
Small- and medium-sized enterprises (SMEs) have been highly conducive to economic development in Viet Nam as they significantly contribute to job creation, export promotion, growth generation and poverty reduction. However, despite accounting for some 98 per cent of the country’s enterprises, SMEs’ performance is still constrained by many factors, including both “internal capacity” and “unfriendly external factors”, such as shortage of qualified human resources and little access to technology, besides administrative red-tapism. Among the detrimental external factors, lack of credit accessibility is seen as the major obstacle to the sustainable development of SMEs. Therefore, one of the most important measures to support SMEs is to improve their access to credit. In an economy like Viet Nam whose financial system relies heavily on banks, access to credit is even more critical. Vo Tri Thanh In fact, Viet Nam has made great efforts in this regard, and … [Read more...] about SMEs’ access to credit: Better, but not enough
Parliamentary groups asked to foster Vietnam-Romania ties Vice Chairman of the National Assembly Uong Chu Luu receives Chairman of the Romania-Vietnam Friendship Parliamentary Group Simion Lucian-Eduard in Hanoi on March 29. Vice Chairman of the National Assembly Uong Chu Luu has said that friendship parliamentary groups of Vietnam and Romania should maintain meetings and increase the exchange of information and experiences, thus fostering economic, trade and investment ties between the two nations. Luu made the statement while receiving a delegation of the Romania-Vietnam Friendship Parliamentary Group led by its Chairman Simion Lucian-Eduard in Hanoi on March 29. Luu reiterated that Vietnam always wants to consolidate and develop the friendship and multifaceted cooperation with Romania. Vietnam appreciated Romania’s support for Vietnam’s past struggle for national independence and reunification as well as the current process of national construction and … [Read more...] about Government News 30/3 (Hourly Updated)