Month: July 2022

Lending interest rates in the remaining months of this year will stay relatively stable to help firms recover production after the pandemic.

This is thanks to the 2-percent interest rate support package and banks’ measures to cut input costs, according to Dr Hoang Van Cuong, vice president of the National Economics University.

The Government in May this year issued a decree on interest rate support from the State budget for loans of enterprises.

According to Cuong, though firms are looking forward to the 2-percent interest rate support package to get cheap capital for their production and business, in fact the number of firms that have been able to access the package and newly disbursed loans under the package have so far been restricted.

He attributed the restriction to the banks’ credit room. Most banks have so far used up all credit quota granted by the State Bank of Vietnam so that they cannot expand credit despite firms’ capital shortage.

As Vietnam’s inflation in the first half of this year was well controlled at 2.24% and the amount of money supplied to the economy over the past years was not much, the official said it is necessary to expand the credit quota for banks so that they can boost lending and firms can access the interest support package.

The interest rate support package therefore can really aid firms and have a positive impact on the economy, he said.

According to Cuong, besides the package, banks have been also forced to take measures to save input costs and better manage loans to reduce risk provisions, so as to cut lending interest rates as directed by the SBV.

Currently, some banks are also applying preferential interest rates of about 6.7-8.1% per year for 60-180 month business loans.

Saigon Securities Incorporation (SSI) forecast the State Bank of Vietnam will expand the credit quota for some banks in the third quarter of this year and the move will cause the deposit interest rate to rise by 50-70 basis points.

As for the whole of 2022, the SSI expected the deposit interest rates to increase by 1-1.5 percentage points against 2021 while lending interest rates for new disbursements will be up 1-2%.

For 2023, SSI forecast interest rates will be different in the first half and the second half of the year. Accordingly, the rates will remain under upward pressure in the first half of 2023 as the consumer price index (CPI) is estimated at 5.2%. They then will likely cool down in the second half of 2023 when inflationary pressures gradually ease with CPI estimated at 3.4%.

For the whole of 2023, the rates are expected to increase by about 70-80 basis points, reaching the rates before the pandemic./.

Source: Vietnam News Agency

Dinh Hong Quan successfully defended his International Boxing Federation (IBF) Asia title on July 30 during the IBF WBO Asia Championship at The Grand Ho Tram Resort in Ba Ria-Vung Tau province.

The reigning champion won on points against Jules Victoriano of the Philippines in the men’s lightweight category after 12 rounds.

In the 11th round, Victoriano delivered a heavy jab on Quan who was forced to kneel down on the floor. But the Vietnamese quickly stood up and responded with two thundering punches and continued to dominate the last round.

The 24-year-old Quan received 115-113, 115-113 and 117-111 result from three judges and secured his ninth win in career.

His record now is eight wins (four knockouts), one draw and one loss.

Meanwhile challenger Victoriano suffered his fifth defeat in 16 matches.

Quan said the win will strengthen his confidence as his Cocky Buffalo team and himself prepare for a higher tournament.

In other matches of the championship, Republic of Korea’s Song Chan-ho defended his WBO (World Boxing Organisation) Oriental Youth bell after he knocked out Thai Bunchuai Phonsungnoen in the third round of the men’s superlight weight class.

Meanwhile Uzbekistan Olimjon Nazarov beat Bienvenido Ligas of the Philippines on points after 12 rounds to keep his WBO Oriental Asia belt in the men’s flyweight category.

And Vietnamese Sam Minh Phat knocked out Indonesian Henri Pornomo in the men’s lightfly weight match which was the opener of the championship.

Phat wasted no time and floored his rival after his combination of jabs and hooks in the second round./.

Source: Vietnam News Agency

Prime Minister Pham Minh Chinh has emphasised the need to strengthen the capacity for analysis, forecasting as a tool to help control inflation, stablise macro-economy, and ensure major balances of the economy, contributing to accelerating economic recovery and sustainable development.

Chairing a July 30 meeting with leaders of ministries, sectors, central agencies, experts, scientists and experts from international organisations in Vietnam on measures to maintain macroeconomic stability, and control inflation, the PM stressed that attention must be paid to implementing monetary policy prudently, flexibly, and effectively in a timely manner in close coordination with fiscal policy and other policies.

Policy tools need to be adjusted appropriately to both promote socio-economic recovery and development, and contribute to controlling inflation, stabilising the macro-economy, ensuring national financial safety. Focal issues in the coming time are accelerating public investment, ensuring social security market and price control, human resources development and strategic infrastructure, he pointed out.

The PM also emphasised that more attention should be paid to fighting corruption and negative phenomena; and strengthening objective, transparent, honest and timely communication activities regarding the issue.

He assigned the Ministry of Planning and Investment to expeditiously collect comments and complete relevant reports and documents to submit to the Government and authorised agencies.

According to reports at the event, despite facing many difficulties and challenges, Vietnam basically maintained a reasonable economic growth with GDP in the first half of this year being estimated to increase by 6.42% year-on-year, much higher than the expected scenario. The country’s macroeconomic was stablised, inflation well controlled and major economic balances ensured.

Economists agreed with the Government’s view in general and in implementing of the economic recovery and development programme in particular, which prioritises using fiscal policy to support monetary policy.

Ha Thi Kim Nga, senior economist at the International Monetary Fund in Vietnam, said Vietnam has well implemented inflation control. However, it still needs to stay prudent against inflation risks because of complicated developments in the world market./.

Source: Vietnam News Agency

Prime Minister Pham Minh Chinh on July 31 inspected the progress of the second phase of the Thai Nguyen Iron and Steel Plant extension project (TISCO 2) in the northern province of Thai Nguyen on July 31.

The project has an initial investment of 3.84 trillion VND (164.52 million USD), which has been increased to over 8.1 trillion VND.

It was launched from 2017 and has been postponed since 2013.

In 2021, the Thai Nguyen Iron and Steel JSC (TISCO) proposed the resumption of the project, and promised to operate it effectively after a few years, ensuring job for employees and avoiding losses in State capital.

PM Chinh noted that the stagnation of the project has caused great wastefulness, and asked for drastic measures to settle problems facing the project with the spirit of placing the national interest to the top position.

He urged the investor, under the direction of the Commission for the Management of State Capital at Enterprises (CMSC), to re-update data related to the project and propose solutions to current problems.

The leader also requested the CMSC and TISCO to continue working with partners and speeding up negotiation basing on the law and harmony in interest of all stakeholders.

The PM assigned his deputy Le Minh Khai to take the charge of solving issues related to the project.

On the occasion of the 75th anniversary of War Invalids and Martyrs’ Day, PM Chinh offered incense and flowers to 60 members of Company 915 who sacrificed their lives during the anti-America war in 1972 in Thai Nguyen city./.

Source: Vietnam News Agency

The Vietnamese Embassy in Denmark, in collaboration with the Vietnam Trade Office in Sweden, Finland, Denmark, Norway, Iceland and Latvia, recently published a book on the Danish market with the aim to support Vietnamese companies in taking advantage of opportunities brought by the EU-Vietnam Free Trade Agreement (EVFTA) to boost their exports to the country.

Trade experts said that the EVFTA, which officially took effect from August 2021, has been bringing positive impacts to Vietnam and Denmark and contributed to promoting Vietnam-Denmark trade relations and further expanding markets for Vietnamese exports.

According to the trade office, Denmark is a developed industrial country, with a modern economy and high living standards. Import-export accounts for nearly 60% of the total gross domestic product (GDP) of the European country.

In addition, Denmark’s business environment is friendly, ranked by the World Bank as the country with the best business environment in Europe for 10 consecutive years and always comes in the top five countries with the best business environment in the world, the office said.

In particular, Denmark is not only the only Nordic country that has established a comprehensive partnership with Vietnam, but also one of Vietnam’s potential trade partners in the European region.

Over the recent years, Denmark has implemented trade liberalisation and market opening policies to create favourable conditions for enterprises to export to this market, the office added./.

Source: Vietnam News Agency

The ASEAN Para Games (APG) raised its curtain on July 30 with a vibrant opening ceremony that included a spectacular fireworks display and exciting cultural and musical performances in Surakarta City, Indonesia.

The Games were officially opened by Indonesian Vice President Ma’ruf Amin, paving the way for an exciting seven days of action until the closing ceremony on August 6.

The cauldron was lit by Paralympic shooter Hanik Puji Hastuti after Indonesian ASEAN Para Games Organising Committee head Gibran Rakabuming Raka delivered his opening address.

The hosts welcomed almost 1,200 athletes to the 11th APG along with some 15,000 spectators at the 20,000-capacity multi-purpose Manahan Stadium who were treated to amazing live performances by famous comedian Dodit Mulyanto and Central Java Governor Ganjar Pranowo.

They also enjoyed a magnificent fireworks display and the finale was a highly-entertaining performance by popular singer Nella Kharisma.

The Vietnamese athletes came to the regional biennial sport meet with 153 members including 120 athletes.

They set a target of 40 gold medals, as many as five years ago in the ninth edition in Malaysia. It is expected that the result will help them finish in the top group.

Indonesia organises 14 sports in the 11th APG and Vietnam will take part in eight.

The first athletes to start their journey are badminton players in team events and masters in standard chess.

The 2019 edition in the Philippines was initially postponed for financial reasons before being cancelled due to the COVID-19 pandemic. Vietnam also cited the pandemic in cancelling the Games last year. Indonesia stepped in to host the event for the second time after the 2011 edition, which was also held in Surakarta

Source: Vietnam News Agency

A delegation of officials from nine Vietnamese localities are joining the 8th World Cities Summit (WCS) at Marina Bay Sands, Singapore, from July 31 – August 3.

Themed “Liveable and Sustainable Cities: Emerging Stronger”, the event gathers government leaders, mayors, leaders of provinces and cities, and leading experts in development from worldwide, focusing their discussions on measures to address challenges facing sustainable and liveable cities, and sharing integrated urban solutions and promote new partnerships in the field.

On the agenda are issues related to sustainable finance, smart cities, development and planning, urban resilience and future liveable cities.

According to Singapore’s Centre for Liveable Cities and the Urban Redevelopment Authority – the organiser of the event – the WCS creates a venue for leaders from public, private and international academic sectors to exchange ideas and together find solutions for cities of the future.

The biennial forum was initiated in 2008. It has so far attracted the participation of more than 250 cities around the globe,/.

Source: Vietnam News Agency

The United Nations Development Programme (UNDP) will help build an additional 100 flood-resistant houses for poor households in the north-central coastal province of Thanh Hoa in the coming time, UN Assistant Secretary General and UNDP Regional Director for Asia and the Pacific Kanni Wignaraja has said.

She made the statement during her recent working visit to Thanh Hoa – one of the 28 coastal localities in Vietnam vulnerable to climate change impacts.

In the locality, Wignaraja joined local leaders and people in planting mangrove forests, one of the most effective nature-based solutions to enhance the resilience of coastal communities to climate change.

She spoke highly of the strong commitment of the provincial People’s Committee in adapting to climate change impacts through the initiative to build resilience.

From 2017 to now, the Government of Vietnam, the Green Climate Fund (GCF), and the UNDP have revived and planted more than 337ha of mangrove forests, and built 1,403 safe houses for poor, near-poor and women-headed households.

The project “improving resilience of vulnerable coastal communities to climate change in Vietnam” has benefited more than 8,000 people in Thanh Hoa.

Vice Chairman of the provincial People’s Committee Le Duc Giang thanked the UNDP for its support to the locality, especially in building resilience and improving people’s livelihoods.

Both sides wished to further enhance cooperation to build more safe houses for the local community; regenerate mangrove forests in a way that engages the local community with livelihoods; and improve knowledge for locals in managing disaster risks.

According to a recent study by the UNDP and the Ministry of Construction, more than 110,000 households have the need to build safe houses in the 28 coastal provinces and cities, including 10,000 in Thanh Hoa./.

Source: Vietnam News Agency