Vietnam needs to reduce number of festivals held annually

The jitters and panic caused by the sudden eruption and virulent spread of the highly contaminable coronavirus across the globe has called for an indefinite delay or total halt of several important public events.

Difficult to reduce interest rates in 2020

In 2019, interest rates were adjusted by several measures taken by the State Bank of Vietnam (SBV), and interest rates have fallen in certain segments. In 2020, interest rate reduction is forecast to happen only if commercial banks show healthy operations by reducing capital costs.

QCG - Victim of unsubstantiated rumours

Even after ten years of listing on HOSE, investors holding shares of Quoc Cuong Gia Lai Joint Stock Company (QCG) are confused because of unsubstantiated and ambiguous information being sent out by the company. In the current real estate market, QCG is now on a downhill trend and expectations from the company are almost defunct.

Illustrative photo.

Currently gold investment not wise choice

In a talk with Saigon Investment, Dr. Nguyen Tri Hieu, a finance and banking expert, commented that currently the world gold market is fluctuating dramatically because of political and economic tensions worldwide. 

The equitization of Vietnamese Film Studios is a controversial example because of cheap gold-land prices and brand value.

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.

CBBank is one of the banks that are forced to raise deposit rates to compete in attracting capital.

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.

Currently, we have not exploited the potential of public land revenue yet.

Too little tax on public land

In developed countries, revenue from land and fixed property makes up 50-90% of the total revenue collected by local authorities, serving as the main source for urban development. Besides this, capital from land revenue also functions as a financial tool to regulate and control real property and urban development.

Ba Na gold bridge has become a symbol of tourism in Vietnam in general and of Da Nang in particular.

Criteria must be clear for tourism and eco-environment

With tourism becoming an important key economic sector in recent years, the Vietnamese Government has provided many mechanisms and attractive policies to support and create conditions for businesses to enter the field of tourism and travel.