wiki globe

Posts Tagged ‘economists’

Banks should be prohibited from involvement in securities activities: economists

In Vietnam Banking Finance on January 16, 2010 at 3:08 pm

Commercial banks shouldn’t be allowed to provide loans to securities businesses and invest in stocks, said economists at a seminar on the Bill on Credit Organizations held by the National Assembly Economy Committee on January 15.









They said it is not the bank’s function, and is risky and unsafe for the credit organization system.


The prohibition is to ensure that banks are responsible for depositors, they added.


Investment banks and commercial banks should be fixed clearly since some investment banks have been established from securities firms in Vietnam.


However, commercial banks objected to the prohibition, saying that they should be limited, but not prohibited, in providing loans to stock businesses.


On the same day, at a conference on Vietnamese banks after the global crisis held by the Vietnam Chamber of Commerce and Industry’s branch in Ho Chi Minh City, Dr. Le Dang Doanh said local banks need to enhance their administrative abilities and healthy competitiveness.


Ly Xuan Hai, general director of Asia Commercial Bank, said the bank system has to be “thin” without many levels of management so it can operate quickly and consistently.


Source: SGGP Bookmark & Share

Central bank, economists discuss interest rate subsidies

In Vietnam Economy on September 8, 2009 at 5:07 pm

The Government’s loosening of monetary policies and interest rate subsidy program have proved effective, as they have helped the country climb out of recession.








Central Bank’s Governor Nguyen Van Giau (3rd, L) with delegates of the seminar on monetary policies and Sai Gon Giai Phong editor-in-Chief Tran The Tuyen (1st, L)

Economic experts made the comment at a seminar on “the role of monetary policies in the Vietnamese economy in its post-recession period,” which was jointly held by the State Bank of Vietnam (SBV), Lam Dong Province’s People Committee and Party Committee and Sai Gon Giai Phong in Da Lat City on August 28.


The loosening of monetary policies has created conditions for commercial banks to maintain reasonable interest rates and mobilize funds from various sources, making credit growth rate increase by 22.61 percent in the first seven months and helping to prevent recession, economists said.


According to the Vietnam Chamber of Commerce and Industry, the interest rate subsidy scheme has hit its target, as it has helped businesses and producers reduce credit costs by 30-40 percent, expand business and create jobs.


It has helped 91 percent of small and medium-sized businesses maintain and develop their business and production, the chamber said.


However, SBV Governor Nguyen Van Giau said the scheme has had a disadvantageous impact on controlling inflation and stabilizing interest and exchange rates.


He said when the economy climbs out of the recession, new measures need to be formed.


Dr. Dinh Trong Thinh, from the Academy of Finance, said to help businesses not feel the “shock,” there should be another stimulus package to continue subsidized interest rates when the current subsidy scheme winds up after December 31.


Dr. Tran Cong Hoang Quoc Trang, chairman of Hoa Viet Co., said the subsidy scheme should be soon lifted, as the interest rate gap will create unhealthy competition among businesses and a habit of relying on Government policy while trying to build a market economy.


Mr Giau said the Government had openly announced that interest rate subsidies would be implemented this year, so businesses should not be shocked when it is repealed.


However, the current subsidy rate of four percent is rather high, so there should be further measures to gradually reduce the rate, he added.


The Government is continuing to keep watch on the situation in order to create measures for the post-recession period, Mr. Giau said.


He added that the Government cannot continue to subsidize businesses after the economy recovers. As such, businesses need to find ways to enhance their competitiveness.


Related articles:
Post-economic crisis seminar is good initiative, says President
VN to mull new solutions for post-crisis economy


Source: SGGP

PM meets local economists on national economy

In Uncategorized on September 14, 2008 at 4:08 pm

Prime Minister Nguyen Tan Dung on September 13 met with local economists to assess the socio-economic performance and discuss its prospect in the remaining months of the year and 2009.

Opening the meeting, PM Dung mentioned the fact that the global economy has since the beginning of this year experienced turmoil with price hike and inflation. “The situation forced many countries to revise their economic growth targets and badly affected Vietnam’s national economy,” he stressed.

The Government has pinpointed weaknesses of the national economy while adjusting socio-economic development goals for 2008, namely controlling inflation, stabilising macro-economy, ensuring social welfare and maintaining a GDP growth rate of 7 percent, he said.

PM Dung affirmed that Vietnam in the past eight months recorded initial positive changes on the grounds of the uniform implementation of eight groups of measures introduced by the Government.

Over the past eight months, the industrial and agricultural production continued their track of development with livestock and plant diseases being contained, exports soaring, imports being tightly controlled, and the consumer price index slowing down, the PM noted.

He asked the economists who attended the meeting to contribute specific opinions to the Government in implementing its management over monetary activities, interest rates, investment, import-export, trade deficit and social welfare in the coming time.

The Government leader hoped the Government can rely on those opinions to make forecasts for the country’s socio-economic performance this year and outline goals, plans and tasks of the national economy in 2009 before submitting them to the Party Central Committee and the 12 th National Assembly’s fourth session.

The economists debated prioritised goals of 2009 and solutions to rein in inflation and continue reducing poverty and maintain an appropriate growth rate.

They also shared experiences and touched upon orientations to settle problems arising from development course relating to agriculture, rural development, job generation and social welfare.-