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Posts Tagged ‘Loans’

VN getting $70 mln loans from ADB to improve vocational training

In Uncategorized on July 17, 2010 at 4:48 pm

The Asian Development Bank (ADB) said Friday it was providing US$70 million in loans for a Vietnam working skill enhancement project to improve vocational training in priority industries.

The project will fund training programs in public and private vocational colleges in automotive technology, electrical and mechanical manufacturing, hospitality and tourism, information and communication technology, and navigation and shipping industries, all of which currently lack sufficient skilled workers, the Manila-based bank said.

This file photo shows a university graduation ceremony in Ho Chi Minh City. The Asian Development Bank says it is providing US$70 million in loans for a working skill enhancement project in Vietnam. (Photo: Thuy Nguyen)

Around 24,000 students are expected to benefit from the program, with about 25% of them women and members of ethnic minority groups, according to the lender.

“Vietnam’s long-term prosperity and development depends on its increasing competitiveness in regional and global markets, and if it is to expand as an industrialized country, it must develop highly skilled industrial workers,” Wendy Duncan, principal education specialist in ADB’s Southeast Asia Department, said in this Friday statement.

The project will provide management and instructor training to upgrade skills and improve planning and allocation of resources, and will also help develop new curricula and training materials, with support from the industries, according to ADB.

The lender said credit would be also made available to approved private colleges to upgrade their equipment and facilities, with institutions expected to borrow up to US$3 million to US$4 million each.

The project aims to address gender inequity by including programs in information and communication technology, hospitality and tourism where females are well represented.

These $70 million loans come from ADB’s concessional Asian Development Fund. The bank’s assistance includes a regular ADF of $50 million equivalent with a 32-year term and grace period of 8 years, with annual interest of 1% per annum during the grace period, and 1.5% for the balance of the term.

A second 32-year loan of $20 million will be made available for on-lending to private vocational colleges, with an annual interest charge of 2.22% per annum.

The Vietnamese Government will contribute US$8 million for a total project cost of $78 million, ADB said.

The Ministry of Labor, Invalids and Social Affairs will be the executing agency for the project which is expected to be completed by August 2015.

Source: SGGP

ADB agrees $60 mln loans to help Vietnam improve healthcare

In Uncategorized on June 23, 2010 at 12:37 pm

The Asian Development Bank (ADB) said it approved on Tuesday US$60 million in loans for Vietnam to help the country improve its health services.

The lender said the loans are for the Vietnam Health Human Resources Sector Development Program, which is co-financed with an US$11 million grant from the Government of Australia.

ADB said the program gives priorities to poor, remote communities which lack skilled workers and quality health facilities.

(File) A doctor (R) examines an old woman in the southern province of Tay Ninh (Photo: Tay Ninh Red Cross website)

“The program will improve health care services for the poor in remote communities by strengthening the capacity of health facilities, training institutions and health workers to serve their special needs,” Sjoerd Postma, senior health specialist in ADB’s Southeast Asia Department, said in Tuesday’s statement.

The bank said a US$30 million program loan will support reforms such as the Law on Examination and Treatment to govern the operation of health facilities and the registration and practice of health professionals; a new plan to upgrade teaching institutions; and the adoption of new models for costing and managing service delivery in district hospitals.

Another US$30 million project loan will support investments linked to planned policy actions in key sector institutions.

Both loans are from ADB’s concessional Asian Development Fund.

ADB said it has financed six health projects in Vietnam, but this is the first sector development program.

“The program approach gives ADB an opportunity to support policy reforms with accompanying investments to address critical quality, efficiency and human resource constraints,” the bank said.

The Ministry of Health is the executing agency for the program and associated project, which is expected to be completed by end December 2015.

Source: SGGP

Education ministry proposes increase funding student loans

In Uncategorized on May 17, 2010 at 8:58 am

Students from across the country stand to receive loans totaling VND1.2 million per month, up from current levels of VND860,000.


If the Ministry of Education’s proposal is approved, each student loan would increase to VND1.2 million per month

The Ministry of Education made the proposal at a recent seminar on building assistant policy to disadvantaged students in accordance with a Government resolution on reducing poverty in 61 of the country’s impoverished districts.

Demand for student loans continues to rise.

Moreover, the current loan level of VND860,000 per month fails to cover the cost for many students to pay for accommodation and travel expenses, forcing many to take on part-time jobs in order to make up the difference.  In many cases, this extra burden has affected their studies.

According to the Vietnam Bank for Social Policies, three years since implementation of the loan assistance policy to students, total loans to students have reached VND19.9 trillion (US$1 billion), as of March 2010.

Of these, the number of students who received loans is 1.8 million and the number of households getting loans for their children’s education is 1.6 million.

The assistance policy has helped hosts of disadvantaged students to continue their studies and has limited the number of students forced to drop out of school due to financial constraints.

Source: SGGP

1.3 million youths provided with loans

In Uncategorized on April 18, 2010 at 3:21 pm

1.3 million youths provided with loans

QĐND – Sunday, April 18, 2010, 21:19 (GMT+7)

In the 2004-2009 period, the Vietnam Youth Union has lent nearly VND6 trillion, to 1.3 million young people.  

Over the past five years, the Union has granted scholarships for more than 375,000 youths and arranged for nearly 1,000 young entrenpreneurs to share their experiences via E-learning. It has implemented over 114,000 youth projects worth VND654 billion.

The Union has also established a number of affiliated organizations like the Young Business Association, the Young Intellectual, Science and Technology Association and the Young Doctors Association.

In its 5th term, the Union has admitted nearly 1 million new members to increase its total membership to approximately 8 million.

Source: VOV

Source: QDND

Vietnam allows more loans at negotiable rates

In Uncategorized on April 3, 2010 at 3:05 pm

Vietnam allows more loans at negotiable rates

QĐND – Saturday, April 03, 2010, 21:16 (GMT+7)

The government has allowed commercial banks to offer short term loans at negotiable interest rates to ensure enough credit for profitable projects, an official said Thursday.

The State Bank of Vietnam will be responsible for taking measures to lower lending interest rates, chief of the government’s office Nguyen Xuan Phuc said at a press briefing in Hanoi.

He was announcing new government guidance following a regular meeting to discuss social and economic issues.

In late February this year, the government allowed banks to set interest rates for medium and long term loans on a negotiable basis. Previously, rates on all loans except for consumer loans were capped at 1.5 times the central bank’s benchmark base rate.

Phuc announced Thursday that the government has passed a resolution on measures to ensure economic stability and control inflation.

Under the resolution, authorities and companies have to keep fuel, power and coal prices stable and ensure a sufficient supply of other essential goods including steel, cement, medicine, sugar and milk.

The Ministry of Finance on Thursday said fuel traders had to halt price hikes and a state-reserved fund would be used to offset their losses if global prices surge.

The ministry also requested that the government expand the required separation between two consecutive fuel price hikes to 30 days. Traders are currently allowed to increase pump prices every 10 days.

Trade deficit

The government has ordered ministries and local governments nationwide to tighten control over state-funded projects and withdraw money from ineffective ones, Phuc said.

Vietnam’s economy expanded 5.83 percent in the first quarter from a year ago. Government officials agreed that economic growth was much faster than the 3.14 percent expansion in the first quarter last year. But the economy is still facing many difficulties, including a large trade deficit and instability on the financial market.

The import of unnecessary products must be restricted and exports must be boosted to narrow the country’s trade gap, Phuc said.

“It’s not necessary for a poor country to spend US$1 billion importing the iPhone,” he said.

According to the Ministry of Industry and Trade, local companies also imported equipment worth billions of dollar to develop high-speed 3G mobile phone services in the country.

Vietnam’s monthly trade gap in March was $1.35 billion, up 2 percent from February, according to the General Statistics Office. The year-to-date trade deficit has reached $3.5 billion.

Source: TN

Source: QDND

Central bank calls halt to gold-trading loans

In Vietnam Banking Finance on January 13, 2010 at 8:37 am

Investors trade gold at a gold exchange.

The State Bank of Vietnam ordered commercial banks January 11 to stop lending to investors in gold trading floors and recall loans given to them.

It has instructed its branches in cities and provinces to monitor implementation of the order and penalize banks not following the instruction.

The central bank has ordered the closure of gold exchanges by March 30 this year.

Source: SGGP Bookmark & Share

US finances loans for HIV patients, caregivers

In Uncategorized on December 18, 2009 at 2:15 pm

People living with HIV and caregivers of orphans and vulnerable children will receive loans to start small businesses under a US government program launched December 17.

In total, 750 Vietnamese, many of whom are women who support at least five other family members, will benefit from the program being implemented by the US President’s Emergency Fund for AIDS Relief (PEPFAR).

750 Vietnamese, many of whom are women, will benefit from the program being implemented by the US President’s Emergency Fund for AIDS Relief (PEPFAR)

Seven provinces and cities will be targeted including northern Quang Ninh, Hai Phong, and Ha Noi; the central province of Nghe An; the Mekong delta provinces of Can Tho, and An Giang; and Ho Chi Minh City.

Each loan recipient will receive an average of US$450 over the next 12 months, for a total of US$300,000 provided by the US Agency for International Development (USAID) under PEPFAR. 

The program, implemented by Vietnam’s Women’s Union with management support from UNAIDS, will provide training on small business management and related skills.

A loan will be considered successful if at least 40 percent is repaid in the first year and at least 80 percent is repaid after three years.

Food security indicators and an assessment tool will be developed and used to assess food insecurity and refer potential beneficiaries for loan consideration. Loan beneficiaries will also be accepted from local Women’s Unions and People Living with HIV self-help groups.

Before receiving the loan, beneficiaries will work with project staff to develop feasible business plans, which include a timeline for re-paying all funds within three years. USAID funding will be used as a revolving fund to reach more beneficiaries in the coming years.

Source: SGGP Bookmark & Share

ADB okays $60 mln loans to support Vietnam’s secondary education

In Vietnam Education on November 27, 2009 at 2:25 am

The Asian Development Bank approved Wednesday a financing plan for Vietnam’s secondary education development program which includes a sector development program loan of US$20 million, and a project loan of US$40 million.

Higher education graduates at a graduation ceremony in Ho Chi Minh City. A good secondary education is regarded as key to higher levels. (Photo: Tuong Thuy)

The program aims at providing students with skills to succeed in an increasingly knowledge-based, market-driven global economy.

“Vietnam needs to improve the quality of its labor force to stay competitive in the region and to sustain growth, and this program will increase the skills and performance of secondary school graduates in the labor market, improve participation and completion rates, and make schooling more accessible and affordable,” Eiko K. Izawa, senior education specialist in ADB’s Southeast Asia Department, said in a statement.

A fact in the country is the composition of the economy has been changing with a shift away from agriculture, towards industry, technology and services. This change has created a growing need for graduates with skills matched to the new needs of the economy, and a good secondary education is regarded as key to achieving this.

Enrollment levels for secondary schools have grown sharply in recent years, reaching over 90% at the lower level, but there have been widespread inconsistencies in the quality of education across the country, as well as persistent inequalities in access, according to the ADB.

The program is expected to address these concerns by updating the country’s secondary education sector master plan, developing new national standards for secondary schools, upgrading the curriculum, improving the quality of secondary teachers, establishing a national accreditation board and new learning assessment system, and expanding continuing education.

The ADB said the total financing costs are US$71 million. The bank is to provide a combined $60 million from its concessional Asian Development Fund, and the Vietnamese government will contribute counterpart funds of $11 million.

The program loan, which will be released in two tranches, has a term of 24 years, including a grace period of eight years, with an interest rate of 1% per year during the grace period, and 1.5% for the rest of the term. The project loan has a term of 32 years, with a grace period of eight years and the same interest rates schedule. It will be used to aid the rollout of the program, according to the ADB.

The Ministry of Education and Training is the executing agency, with the program loan component due for completion in December 2012, and the project by June 2015.

Source: SGGP Bookmark & Share

Banks asked to provide sufficient loans

In Vietnam Banking Finance on November 22, 2009 at 12:27 pm

The State Bank of Vietnam’s governor ordered commercial banks November 20 to provide sufficient loans for production and business. 

Processing tra catfish for export at a factory in the Mekong Delta, one of the sectors which will be prioritized for loan grants following a directive from the Central Bank (Photo: SGGP)

Banks were asked to provide loans for agricultural, forestry and aquaculture production, agricultural product, processing and exports.  
The Central Bank asked banks to stabilize and mobilize funds especially in dong, closely monitor credit growth, and adjust their credit structure according to sector, field, and area, and limit the granting of loans to non-productive sectors.
Banks were also asked to re-schedule debt payment and interest rates for enterprises and production households who have sustained losses due to natural disasters.  
Credit growth has exceeded 33 percent leaving enterprises facing difficulties in obtaining loans. 

Source: SGGP Bookmark & Share

State Bank says no to negotiable-interest loans

In Vietnam Banking Finance on November 14, 2009 at 10:38 am

The Sate Bank of Vietnam had told credit organizations not to release negotiable-interest loans to customers investing in real estate and financial assets like gold, foreign currencies and stocks.

The State Bank Governor, Nguyen Van Giau, dispatched the new regulations to credit organizations and the bank’s subsidiaries in provinces and cities on November 12.

Accordingly, credit organizations are only allowed to apply negotiable interests to loans serving the lives of customers, as well as their households. The loans will be released through credit cards.

For cases not matching negotiable-interest regulations, the Governor asked credit organizations to adjust such situations by March 31, 2010.

Source: SGGP Bookmark & Share