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Sunday, October 26, 2014

Dr. Nguyen Duc Kien: Dealing with bad debts, the bank sold the property let go!

He commented on the bad debt write-offs and direction now?

If there is bad debt, the first to do bankers need to sell his property goes to the bank holding steady, do not you bank, while creating shared interests of all, to the VAMC difficulties, he appealed to disburse to you.

VAMC money to buy the bad debt of taxpayers' money should not be spent unreasonably.

I would never vote for such type of expenditure. In that case, we need to ask some bankers that he had sold the car yet? He had a motorcycle to go to work? First, he had to sell his property to his handling of bad debt has gone ...

As the use of VAMC is to push down a portion of bad debt off the balance sheet of the bank, was not to bad loans in banks again suspended. And banks are accounted for and deducted 25% surcharge / year of total NPLs sold to VAMC.

Thus, VAMC is a form of zoning helps banks bad debts. And after cleaning the balance sheet of assets and the loan will boost the economy.

There is a fact that bad debts are still rising while the old bad debts have not been processed. With this fact, whether the end of the year may bring bad debts down 3%?

I must say, an economy must operate as a bad debt, the economy in the new planning no bad debts. The problem is how to strengthen measures of corporate governance, as incurred bad debt allowance should have to handle.

In case the bank does not handle the state will intervene with measures of agency. Here, I would like to blame the individual makes it difficult for the economy and they have to take responsibility.

Many people said that bad debts arise from interest groups. However, the benefits team to handle in recent years do not seem to have progressed much?

We have to accept interest groups, interest groups have the new one up bank shares trading. We can not say that right up bank shares in accordance with socialist goals are. There are benefits to harmonize the interests of the investor money, the depositors and the whole society.

We build the market economy, there must be standards first, then the new social mission behind this task was done state. We must distinguish clearly that, in the transition of the economy to have other things with their minds during the planning.

Currently, we are looking into the problem joint stock banks to look like a state bank is not ready.

The last time the public is very interested in the election lawsuit Kien. Matters of public concern is how to manage group benefit, not a case of market manipulation as last time?

Imprisoned. Kien case is a typical election. If it is not managed well, can not be elected Kien. However, we live in a law-governed society should want to catch and treat someone, there must be evidence. Though in my heart there is not happy to see people get rich fast, but we have no evidence it was illegal, they can not even talk about them as well to consider.

Talking like to understand one thing, in a society, we have to look at each other with friendly eyes, looked at the face that is a good citizen. Then, over the course of our operations, see its impact on the economy, we have remedies.

Currently we have to take measures to prevent and deter. There are precautions that they do not yet predict all situations will occur during the operation of the market economy.

Restructuring the banking system is going on too cautious, because the economy is dependent on bank loans, while the capital market is not really growing. Is this the reason why we are not brave enough to bankrupt banks?

Desire is one thing. The reality of the market is another story. We perform all his duties, but with affordable prices, but nothing has zero cost. That is going to be broken, will have losses but losses do not constitute flood, flash flood inundation zone to form.

In the discussion of the economic situation - social, pretty much the idea that the government should ease a little inflation to supporting growth. He concurred with this opinion?

In fact, theoretically operating in macro-economic policy is always lower than desired inflation rate of economic growth, the newly created real growth. We are a developing country and until now, the economy is still largely to be "live" by investors. When that growth based on investment, they must push up prices and lead to inflation.

However, at this point I should also care about the harmony between growth and inflation. For example, as of 2012, inflation was 6.04%, but if you subtract the cost of price adjustment services, healthcare, education and 3% inflation actually fell more than 3%.

Such an analysis to show that if inflation lasts so low that, the driving force for the economy, or in other words the economy "di du" Growth will be harder. So, we need to choose some point to balance between growth and inflation, ensure social life.

Recently, in terms of state management, we have a lot of work, such as the government has adopted policies to support business taxes. I think we did pretty well in the face of state management.
And while some businesses that need assistance in the future is to promote internal reform of the state apparatus for the administration of the server to become better citizens and businesses, creating production conditions for better business ...

Sunday, May 26, 2013

Eximbank prioritizes risk management

Thanh Thuong
Nguyen Thi Hong, vice chairwoman of the HCMC People's Committee, confers the Third Class Labor Medal to Le Hung Dung, chairman of Eximbank and Saigon Jewelry Company (SJC) on Wednesday - Photo: Thanh Thuong 
Nguyen Thi Hong, vice chairwoman of the HCMC People’s Committee, confers the Third Class Labor Medal to Le Hung Dung, chairman of Eximbank and Saigon Jewelry Company (SJC) on Wednesday – Photo: Thanh Thuong
Sticking to the motto “Prevention is better than cure”, Eximbank has strictly followed risk management rules over the past time to secure safe development of its entire system. The bank has launched a credit center into operation to improve credit quality of branches and credit policies.
Therefore, Eximbank has bettered control over credit quality, Dung told the Daily on the occasion of the Third Class Labor Medal Receiving Ceremony on Wednesday. Dung, who also serves as Chairman of the Board of Members of Saigon Jewelry Company, won the title for his contributions to the society since 2008.
The bank’s management activities have also received supports from its foreign strategic partner Sumitomo Mitsui Banking Corporation (SMBC). Its risk management system has met international standards, which are stricter than those regulated in the country.
This year, Dung said Eximbank still aims to boost credit growth rate but it will focus on risk management by controlling credit quality and drastically handling overdue debts and bad debts.
Eximbank posted up a modest credit growth of only 0.04% in 2012 and 0.03% in the first quarter of this year. Its bad debt ratio stayed low at around 1.33%, which was almost unchanged compared to late 2012.
Eximbank has been granted with the Best Managed Bank in Vietnam 2013 Award by The Asian Banker. Giving this award to Eximbank, the magazine has recognized the lender’s sustainable development in the recent three years.
Truong Van Phuoc, general director of Eximbank, has also received The Asian Banker Leadership Achievement Awards 2013 title.
Eximbank is among commercial banks that boast biggest total assets in Vietnam. The bank has obtained strong growths in three years with asset value jumping from VND65.4 trillion at the end of 2010 to nearly VND157 trillion as of the end of April.
Despite challenges in the banking network, the bank targets to gain VND3.2 trillion in pre-tax profit in 2013, a 12.2% year-on-year increase, and pay dividend for shareholders at 12%. This dividend rate is much higher than the average of the banking sector.
Eximbank’s general director Truong Van Phuoc said that the high target will encourage the bank to put more effort in business operations, focusing on retail banking and loans for export and import enterprises this year.
The Asian Banker is one of prestigious magazines in the Asia-Pacific and globally. It is founded in Singapore and has many representative offices in different countries.
Its quarterly publications have attracted many readers who are businesspeople in the region and worldwide. Every year, the magazine organizes selections of outstanding names in the banking industry in areas of finance trade, currency management and payment among others.

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Friday, May 24, 2013

Vietnam, Canada boost friendship | VNTimes


The Vietnam-Canada Friendship Association held its third nationalcongress in the 2013-2018 term on May 24 in Hanoi to boost the twocountries’ cooperation in a wide range of fields.
The congress elected the Association’s 41-member executive committee andDeputy Minister of Health Nguyen Viet Tien as the association’schairman.

In the next term, the association will paymore attention to the business sector, non-governmental organisationsand academia, and the Vietnamese community in Canada, improving itsforeign affair efficiency.

It will combine externalaffairs’ activities and information to strengthen mutual understandingbetween the two countries, and to enlist Canadian people’sunderstanding, sympathy and support for Vietnam’s construction anddevelopment.

To mark the 40 th anniversary ofdiplomatic ties between Vietnam and Canada this year, theassociation will host a contest on bilateral relations and Canadafor Vietnamese students.

In addition, it willcoordinate with the Canadian Embassy and the Canadian Chamber ofCommerce in Vietnam to host the 2013 Run for Children in Hanoi to raisefunds to treat poor children with cancer and heart problems.-VNA

Wednesday, November 21, 2012

Not all economic doom and gloom -Under siege Vietnam still has rosy long-term economic prospects, according to a new report.

Ernst&Young's "Rapid-Growth Markets Forecast" report, released late last month, said Vietnam stood out as a high-potential economy and its on-going difficulties would be a "temporary phenomenon."

"Vietnam has a young and well-educated population of almost 88 million, modest labour costs, growth of 6 per cent targeted next year and scope for further economic restructuring. Its long-term attraction for foreign investors is underpinned by improvements in the economic environment and expectations of sustained high growth," the report said.

The firm expects Vietnam's economy to annually grow by almost 6 per cent over the next 25 years, making it the third-fastest growing country among rapid growth markets.

The impressive potential is headlined by the country's per capita income was expected to grow six-fold during the next 25 years, while the number of households earning over $30,000 per year would rise from less than 6,000 last year to more than 60,000 in 10 years' time.

Meanwhile, manufacturing wages were currently estimated to be half those in China and Thailand, which should encourage a movement of operations to Vietnam to diversify production and take advantage of lower costs.

London-based Legatum Institute in early November, 2012 also trumpeted its Prosperity Index 2012 surveyed of 144 nations, with Vietnam ranking 53rd, up from 62nd in 2011 and 61st in 2010. Vietnam was ranked 39th in economic health, 73rd in entrepreneurship and opportunity, 55th in safety and security, 61st in governance, 80th in education and health, and 35th in social capital.

The government last week also reported that Vietnam's socio-economic situation in this year's first 10 months continued witnessing "positive changes" with measures to taming inflation and stabilising the macro-economy continuing to prove "effective."

Specifically, the index for industrial production (IIP) for October rose 5.8 per cent against September's 4.6 per cent. The IIP ascended 4.1, 3.2 and 2 per cent in August, July and June, respectively.

Minister of Industry and Trade Vu Huy Hoang told the National Assembly that local production continued to better perform month-on-month. "Specifically, the inventory level in the processing and manufacturing sector has reduced from 34.9 per cent by June 1, 2012 to 20.3 per cent by October 1, 2012, which was even lower than the 21.1 per cent on-year rise seen in October 1, 2012."

The government also reported that October, 2012 saw about 6,000 newly established enterprises, while the number of enterprises stopping operations remarkably decreased, with 1,000 in October. This compares to nearly 5,000 in September, 5,000 in August and 4,000 in July. In this year's first 10 months, more than 57,000 enterprises were newly established, while some 41,200 enterprises dissolved and ceased operations.

The Government Office's Minister Vu Duc Dam said such figures reflected the economy's rebound and many enterprises were still performing well.

For instance, Tuong An Vegetable Oil reported that in this year's first nine month, its revenue totaled VND2.94 trillion ($141.34 million) with after-tax profit of nearly VND34.4 billion ($1.65 million). Also, Thien Nam Trading and Import-Export Joint Stock Company said its pre-tax profit for 2012 was expected to be VND50 billion ($2.4 million).

Danang Rubber Company reported that its profit totaled nearly VND218 billion ($10.48 million) in this year's first nine months, up 57.24 per cent on-year and exceeding 26.34 per cent of this company's profit target for 2012.


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