World Bank: additional commercial banks need to be merged
After drastic restructuring in the Vietnamese banking system, mergers and acquisitions (M&A) still need to be made by an additional 34 commercial banks.
Scene at the World Bank's press conference (Photo: VNA)
Hanoi (VNA) –After drastic restructuring in the Vietnamese ban𝐆king system, mergers and acquisitions (M&A) still need to be made by an additional 34 commercial banks, said Sandeep Mahajan, World Bank (WB)’s Lead Economist for East Asia-Pacific, at a press conference to announce the regional Economic Update on April 11.
He affirmed that the M&A should be done in a strict and suitable process to create a sharp fall in number of credit institutions.
Although substantial progress has been made in the shake-up of financial organisations, it is hard to slash the number of commercial banks from 34 to 15-17 by the end of 2017, according to the WB’s evaluation.
The bad debt ratio in the banking system has fallen to 3 percent of total outstanding loans, which was stemmed through credit growth and shifting bad debt to the Vietnam Asset Management Company (VAMC). The commercial banks were asked to set up provisional funds for the debts moved to the company, whereas related risks which create loss to the capital have not been completely removed.
Sandeep Mahajan said that Vietnam needs to lighten the burden on the private sector while mapping out solutions for medium-term fiscal consolidation.-VNA
The World Bank (WB) expects Vietnam’s economic growth to hover around 6-6.2 percent in 2015, underpinned by further recovery in domestic demand, robust private consumption and investment growth.
Mergers and acquisitions (M&As) in the domestic real estate sector are being favoured thanks to the recovery in the market, together with several new policies.
The State Bank of Vietnam (SBV) has issued a decision to approve the merger of Song Da Finance Company (SDFC) and Military Commercial Joint Stock Bank (MBBank).
Information related to mergers and acquisitions (M&As) of credit institutions is awaited as the season of annual shareholders’ meetings is around the corner.
Under a draft to amend and supplement the Government's Decree 125/2020/ND-CP on administrative sanctions for violations of tax and invoice regulations, the Ministry of Finance has proposed classifying the failure to issue invoices into five different levels. Infraction levels will correspond to fines of 1 million VND to 80 million VND, depending on the nature and number of invoicing violations.
A new airline developed and invested by Sun Group — has officially announced a strategic partnership with Amadeus IT Group (Amadeus), one of the world’s leading travel technology companies. This agreement not only lays the foundation for a modern digital infrastructure but also marks a pivotal step in SPA’s global expansion strategy, enabling the airline to access international distribution networks and reach customers worldwide.
Of the total, 107,700 were new firms, with combined registered capital of 928.4 trillion VND (35.4 billion USD), up 10.6% in number and 5.5% in capital compared with the same period last year.
Experts agree that a combination of technology, enforcement, education and cross-border cooperation is essential to protect copyrighted content in Vietnam’s growing digital ecosystem.
Poland is Vietnam’s largest export market in Central and Eastern Europe, with key staples including seafood, textiles, footwear, coffee, and cashew nuts.
Cashless payments are growing at an impressive rate, averaging 30–40% annually. Vietnam’s per capita cashless transaction volume now trails only China, with total value of 295.2 quadrillion VND (11.26 trillion USD), or 26 times of its GDP.
A draft resolution on piloting a digital asset and cryptocurrency market is being developed, aiming to create a broad-enough regulatory sandbox that enables investor participation and provides practical grounds for policy refinement in areas such as risk management and anti-money laundering.
Viettel was ranked third for overall mobile performance with a score of 82.56 just behind UEA’s e& (88.05) and Quatar’s Ooredoo (87.05) and ahead of Singapore’s Singtel (82.53). Vinaphone took second in 5G speed with a score of 78.11, trailing only behind e&.
PM Chinh proposed MUFG work closely with the Ministry of Finance to improve legal frameworks and support the establishment and operation of the international financial centre in Da Nang and Ho Chi Minh City.
The Prime Minister emphasised the significance of maintaining macroeconomic stability, controlling inflation, promoting growth, and improving the harmony between monetary and fiscal policies.
Petrovietnam will step up the development of new products and the expansion of international markets to reduce reliance on the domestic market. It also plans to optimise capital use, manage cash flow and costs, streamline operations, and enhance workforce quality to achieve its 2025 goals.
Vietnam has so far attracted 43,346 valid FDI projects with a total registered capital of 517.14 billion USD. The accumulated disbursed capital is estimated at nearly 331.46 billion USD, accounting for 64.6% of the total registered capital.
More than a product showcase, Vietfood & Beverage – Propack Vietnam 2025 is designed as a comprehensive ecosystem where businesses, experts, and consumers can share knowledge, explore technologies, and connect for collaboration.
Both sides expressed their hope that the outcomes of the discussion will continue to improve the efficiency of customs clearance activities at the customs clearance points and dedicated transport routes of the Huu Nghi – Youyi Guan international border gate pair.
The maximum retail price of E5 RON92 petrol has increased by 207 VND to 19,608 VND (0.75 USD) per litre while that of RON95-III rose by 234 VND to 20,074 VND per litre.
Scene at the World Bank's press conference (Photo: VNA)
