Gold, USD, real estate are difficult to quantify, so deposit is still a safe channel.

Capital flow shifting from real estate

Investors once considered real estate a lucrative investment because of its very high profit returns. However, in the context of the current downward trend in the market, capital flow is shifting from real estate to other more attractive and safer investment opportunities.

Flawed Land Laws impact public land revenue

In a country like Vietnam which is a government subsidized economy that is gradually switching to a market based economy, public land revenue has enormous impact that is capable of facilitating significant increase in investment capital for development purposes.

Small banks race to mobilize capital

Recently many smaller Joint Stock Commercial Banks (JSB) have been pushing deposit rates to high levels to meet with the financial safety regulations of the State Bank.

Most BOT projects are focused on transport infrastructure. They must collect fees to service for their debts. Photo: HOANG HUNG

BOT projects-keeping debt groups just temporary solution

Several years ago, after many BOT projects (Build-Operate-Transfer) were reeling under high credit, the State Bank of Vietnam (SBV) toughened its stand on all projects because of potentially foreseeable risks in the long-term, large capital investments, long-term loan durations, and limited financial ability of investors.

In order to recover debts, BOT projects need to be operated to generate revenue.

BOT projects and bad debt

In an official letter to the Government Office, the Ministry of Transport expressed its agreement on the contents of the State Bank Document 8020/NHNN-TD dated 11 October 2019, which proposes debt structure and keeping the debt group of Corporation 36 (TCT 36), that had earlier implemented the National Highway-19 BOT project (Build-Operate-Transfer) in the period 2013-2015, besides several other BOT projects. Hence, after many years of warning about risks, the State Bank now has to salvage these BOT debts.

Tribico was once expected the leading beverage brand in Vietnam, but now has been completely sold to Uni President.

TRI - The tragic end of a famous Vietnamese brand

As one of the first listed companies on HOSE, Saigon Beverage Joint Stock Company (Tribeco, stock code TRI) quickly became the point of focal interest for many domestic and foreign investment funds. 

There must be highly progressive levels of land use tax to prevent unused or abandoned land. Photo: LONG THANH

Need to change the methods of price determination

There are four basic issues in the land revenue system in Vietnam that need immediate evaluation in order to adapt to the current situation: (1) completion of the land pricing system; (2) categorizing and specifying mechanisms that assess value of land in the market; (3) changing the system of taxation and applicable fees for land use; (4) clarifying that investments from land users do not increase land value.

BÁO XUÂN KỶ HỢI 2019