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) –ꦚAfter drastic restructuring in the Vietnamese banking 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.
Deputy Director General of the Ministry of Industry and Trade (MoIT)’s Trade Promotion Agency Bui Quang Hung emphasised that logistics has evolved from a technical function into a core capability for Vietnamese exporters to maintain their competitive advantage in the US market.
A trade official has suggested companies work closely with shipping lines, airlines, and freight forwarders to monitor routes, transit times, and potential surcharges while exploring broader cargo insurance to cover risks like war and terrorism.
In addition to institutional reform, the agency is also rolling out key solution groups to combat counterfeit goods, imitations, and intellectual property infringements in the digital environment.
The event, co-organised by the Vietnam Trade Office in the UK and TT Meridian, a local importer of Vietnamese fresh produce, aims to build a national lychee brand and encourage broader recognition of Vietnamese fruits in a competitive, high-end market.
The industry's performance has been powered by bold investments in modern production lines, enabling Vietnamese firms to produce complicated products which were exclusive to advanced economies.
Outcomes of ABAC III will shape ABAC’s final policy recommendations to be submitted to the ABAC-APEC leaders’ dialogue, scheduled to take place in the Republic of Korea this November.
This is the second year the magazine has released the ranking, which is based on total revenue and key financial indicators of enterprises from seven countries in the region: Vietnam, Indonesia, Thailand, Malaysia, Singapore, the Philippines, and Cambodia.
At the summit, publishing, tech, and media sectors will discuss emerging trends, business models, and sustainable solutions for digital publishing development in Vietnam.
This year’s “Vietnam Goods Week” marks a significant milestone as it is being held simultaneously for the first time in four locations across Asia: Japan, Hong Kong (China), Cambodia, and Malaysia, from June 19 - 22.
According to NordCham Vietnam Chairman Thue Quist Thomasen, the Vietnamese Government’s commitment to achieving net-zero emissions by 2050 is both a challenge and an opportunity for businesses to contribute to green and sustainable growth.
The analysis from an investment perspective shows that the economy’s growth has been heavily capital‑driven, yet efficiency remains low as reflected by Vietnam’s Incremental Capital-Output Ratio (ICOR) being significantly higher than global and regional averages. This underscores the imperative to enhance capital‑use efficiency.
Deputy PM Tran Hong Ha urged countries to work together to remove supply chain bottlenecks, expand market access, strengthen cooperation in smart customs procedures, mutually recognise technical standards, and eliminate unnecessary protectionist barriers to boost trade and investment.
The event has gathered over 400 exhibitors from 16 countries and territories, with more than 980 booths showcasing a wide range of products and technologies in automotive components, electronics, repair and maintenance, bodywork, accessories, and customisation.
The latest order follows Vietjet’s commitment for 20 additional A330neo aircraft last month, bringing the airline’s total widebody aircraft on order to 40.
Minister of Finance Nguyen Van Thang acknowledged the target represents an important milestone for socio-economic development as well as a demonstration of the country’s aspiration for robust economic growth.
The price of E5 RON92 petrol is now capped at 20,631 VND (0.79 USD) per litre, up 1,169 VND from the previous adjustment, while RON95-III costs no more than 21,244 VND per litre, up 1,277 VND.
Scene at the World Bank's press conference (Photo: VNA)
