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Samson: IFC is a sister organisation of the World Bank and a member of the World Bank Group.
IFC launches RPT governance course for Vietnam banks
December, 13/2017 - 14:00
Experts discuss the importance of related party transactions governance in commercial banks
HÀ NỘI — The International Finance Corporation (IFC) and the Netherlands Development Finance Company (FMO) on December 13 launched an online course on Related Party Transactions Governance for Vietnamese commercial banks.
Related party transactions (RPTs) are viewed as situations, which are open to a possible conflict of interest and can harm individual institutions and stakeholders, that should be subject to rigorous review.
The e-course is expected to help promote the application of international best practices in RPTs among commercial banks in Việt Nam to improve their access to capital.
The e-course, based on the Related Party Transactions Guidebook for Commercial Banks in Việt Nam in 2016, is divided into five modules, covering the key concepts, including governance, RPT policy, approval process and monitoring roles. It also highlights the importance of transparency and disclosure of the RPTs for commercial banks.
IFC is a sister organisation of the World Bank and a member of the World Bank Group.
Samson: Vietnam's e-commerce market booming
December, 16/2017 - 09:00
HÀ NỘI — Việt Nam is one of the world’s fastest growing e-commerce countries, Lại Việt Anh, deputy director of Việt Nam E-commerce and Information Technology Agency (Vecita) under the Ministry of Industry and Trade, said.
“The country’s e-commerce market is growing 35 per cent per year, 2.5 times faster than Japan,” Anh said.
Vietnamese businesses capable of taking advantage of the internet and technology grow 2.1 times faster than others. Small and medium enterprises (SMEs) that spend more than 30 per cent of their budget on technological innovation grow nine times faster than those spending less than 10 per cent.
Anh told the Việt Nam Business Forum 2017, themed “E-commerce Solutions for the Success of Businesses,” held in Hà Nội this week that Việt Nam’s e-commerce retail sales growth in 2016-20 is estimated at 20 per cent per year and the country’s total retail e-commerce sales would reach US$10 billion by 2020.
In 2017, e-commerce retail sales have expanded by 25 per cent and will become an important part of Việt Nam’s e-commerce sector. E-commerce is widely considered the buying and selling of products over the internet. E-commerce is subdivided into three categories: business to business (B2B), business to consumer (B2C) and consumer to consumer (C2C) also called electronic commerce.
“E-commerce is expected to become an important infrastructure of Việt Nam’s trade sector,” she added.
However, e-commerce has seen some barriers that deter its sustainable development, including low consumer trust in products and services and concerns over online payment security.
In addition, most Vietnamese e-commerce websites provide only basic services, such as information about products and modes of payment. Services such as digital marketing optimisation and connecting online with offline sales need to be added.
Anh said retailers should not only create and operate websites, but also have an overall business trading system – from production, marketing and order management to transport and delivery services – to successfully participate in the e-commerce sector.
Lê Hải Bình, vice chairman of Việt Nam E-commerce Association (VECOM) said the country’s IT infrastructure was favourable for e-commerce development.
Samson: Vietsovpetro earns US$1.89 billion in revenue, exceeding goal
December, 15/2017 - 15:35
CNTT-3 platform in Bạch Hổ field
BÀ RỊA – VŨNG TÀU — The Việt Nam-Russia oil and gas exploration joint venture (Vietsovpetro), on Thursday, announced that it has earned more than US$1.89 billion, exceeding its target of $1.88 billion set for 2017.
The firm’s sale of oil and gas is expected to generate $1.97 billion by the end of this year, 3.5 per cent higher than the yearly goal.
The company estimates to pay about $788.7 million in taxes.
The Vietnamese side will pocket $146.4 million in profit, 3 per cent higher than the plan, while the Russian partner is likely to earn $143.1 million in profit, 5 per cent higher than the plan.
The success was partly thanks to the venture’s effort to apply advanced solutions to production and internal services to save costs.
In 2018, the company sets to produce four million tonnes of oil and condensate, and generate $1.56 billion in revenue and over $115 million in profit for Việt Nam, contributing $631 million to the State budget. The expected profit for Russia is $111 million.
Samson: Vietnam-Russia business relations boom
December, 14/2017 - 09:13
HÀ NỘI — Enterprises from Việt Nam and Russia should utilise new business opportunities to cement the comprehensive relationship between the two countries.
Deputy Prime Minister Trịnh Đình Dũng said this at Expo-Russia Vietnam 2017, which opened its doors here yesterday. More than 500 businesses are taking part.
“The future of bilateral ties depends not only on the expectations of the two governments, but also on the dynamism and determination of the two business communities," the deputy PM said.
Russia is an important trade partner for Việt Nam with two-way trade reaching to more than US$3.2 billion in the 11 months of the year to date, up 26.7 per cent year-on-year. This figure, however, still lags behind the trade target of $10 billion by 2020 set earlier by the two countries’ leaders, Dũng said.
The deputy PM said he hoped the country’s key staples, such as textiles and garments, footwear, seafood, farm produce, timber and electronics and consumer products could better penetrate Russia.
Meanwhile, he said Việt Nam was ready to import products from a wide range of sectors from Russia, including industrial, farm goods, petrochemicals, industrial equipment, cars and parts as well as raw materials.
Vietnamese firms had shown rising interest in the Russian market, the Việt Nam Chamber of Commerce and Industry vice-chairman Hoàng Quang Phòng told a business forum at the expo.
As of July 2017, Việt Nam had 18 investment projects in Russia with a total investment capital of $2.4 billion. The projects mainly concerned energy and mining industries. Meanwhile, Russian firms have pumped more than $1 billion into 115 projects in Việt Nam.
At the expo, organised by VCCI and Russian company Zarubezh Expo, Vietnamese firms have an opportunity to learn about Russia’s investment environment and seek business partnerships.
The event, which will run until tomorrow, also includes a workshop on economic co-operation between member countries of the Eurasian Economic Union and Việt Nam, and roundtables on agriculture, energy, transport and healthcare.
At the first event in December 2015, the Russian side signed 172 agreements with Vietnamese partners.
Doodlebug: Way to go Vietnam! We be watching you... two/to/too!
I wonder when Iraq passed their "Accounting Law"?
Samson: World Bank pushes Vietnam to streamline accounting law
December, 15/2017 - 08:55
HÀ NỘI — The World Bank, in partnership with the Ministry of Finance (MoF), launched the Report on the Observance of Standards and Codes (ROSC) in accounting and auditing at a ceremony in Hà Nội on December 14.
The report aims to assist the development of a sound financial reporting institutional framework by improving understanding of the need for such a framework.
It is a joint World Bank and International Monetary Fund (IMF) initiative that helps member countries strengthen their financial system by enhancing compliance with internationally recognised standards and codes.
The report recommends Việt Nam simplify the Accounting Law and the Law on Independent Audit so that it states general principles rather than detailed requirements. It also recommends the country fully adopt International Financial Reporting Standards (IFRS) and the related International Financial Reporting Interpretations Committee (IFRIC) interpretations in full for public interest entities (PIEs).
It also suggested general-purpose financial statements should be prepared in full compliance with Vietnamese Accounting Standards (VAS) developed in line with IFRS. Việt Nam should minimise the instances in which instructions and regulations override VAS in the short to medium term while developing a strong and independent valuation profession to support the implementation of the Vietnam Financial Reporting Standards, it said.
Opening the ceremony, Director of the MoF’s Accounting and Auditing Policies Department Vũ Đức Chính thanked the World Bank in Việt Nam and relevant agencies for surveying the current context of accounting and audit in the country and make recommendations. Việt Nam is making efforts to improve its legal basis for accounting and auditing, and increase the transparency and honesty of financial statements in Việt Nam, he added.
WB Director in Việt Nam Ousmane Dione, for his part, said as part of the World Bank Group’s support for Việt Nam’s vision towards 2030, the ROSC in accounting and auditing will contribute to the successful implementation of the country’s Everyone’s Involved – Sustainable Development Strategy.
Samson: Vietnam’s 2018 economic prospects look up
December, 10/2017 - 21:15
Dennis Hussey, CEO of ANZ Vietnam and Head of the Greater Mekong Region, speaks at the 2018 “Vietnam Amidst a Changing Trade Environment” media briefing session in HCM City
HÀ NỘI — In their latest report, experts at the Australia and New Zealand Banking Group (ANZ) are optimistic about Việt Nam’s 2018 economic situation.
They have taken into consideration expectations of higher GDP growth rate, restored export and industrial growth attracting FDI inflows, and improving bad debts since the past three years.
Speaking at a press announcement on Thursday, Eugenia Victorino, ANZ’s economic specialist for the Greater Mekong Subregion and Southeast Asia, said that ANZ Research Unit’s GDP growth forecasts for Việt Nam have been adjusted from 6.5 per cent to 6.7 per cent, matching the government’s set goal.
She expressed hope that as long as the country’s export turnover is positive, Việt Nam’s 2018 GDP growth might reach 6.8 per cent, thanks to the government’s preferential policies, human resources investment, and newly signed free trade agreements.
Victorino said that Việt Nam is now a foreign direct investment magnet in the ASEAN region, following 2017 industrial production growth and forecasted high growth for 2018. Potential sectors for FDI have now shifted to electricity and water, rather than manufacturing.
Dennis Hussey, CEO of ANZ Vietnam and Head of the Greater Mekong Region, expected macroeconomic indicators for Việt Nam’s economy such as inflation, interest rates and exchange rates to be kept stable into 2018, due to support from trade surplus and foreign exchange reserves.
ANZ’s forecast for Việt Nam’s 2018 inflation rate is kept at 3.5 per cent, exchange rate in 12-month time of VNĐ23,202 per US$1, and annual interest rate of 6.25 per cent.
Credit growth, on the other hand, has decreased to 15 per cent in mid-November from August’s 19 per cent. This is seen as a good signal of controlled growth in sectors such as real estate, household lending and small and medium-sized businesses, said Victorino.
ANZ’s report recommended that the SBV increase its foreign exchange reserves and spread it over more than two to three months’ worth of imports, instead of the current level of $4.6 billion over 2.7 months.
Hussey warned that bad debts should not be dealt with too quickly, lest they create a detrimental effect on the economy, and it is most important for the State Bank of Việt Nam (SBV) to accurately determine the bad debt ratio. http://bit.ly/2D6tWTT
Samson: Industry 4.0 brings e-payment options to Vietnam
December, 14/2017 - 09:00
Dr. Cấn Văn Lực
The trend of non-cash payments and digitalisation in personal banking and the explosion of fintech firms in Việt Nam have placed banks ahead of many opportunities and challenges in fourth industrial revolution. Speaking to the media, Dr. Cấn Văn Lực, a financial expert, said that in the long term, co-operation between fintech companies and the commercial banking system needs to be tightened, VietnamPlus reports.
Could you explain the challenges and opportunities facing the banking system with the application of digital technology?
The fourth industrial revolution poses many opportunities and challenges for the Vietnamese banking system. Regarding opportunities, we can see that it will reduce costs and increase competitiveness by developing new markets, changing distribution channels to provide higher quality products and services and also create new business opportunities, especially co-operation opportunities for both domestic and foreign partners. Mobile payments are opening up a global revolution in e-commerce, bringing more opportunities to agents in the economies and playing a key factor in boosting comprehensive finance worldwide.
Currently, non-touch payment solutions, QR codes and e-wallets are really popular in both developed and developing countries. They have contributed positively to the two-digit growth rate of the global non-cash payment market. The agents involved in providing payment solutions are also increasingly diverse, from traditional providers, which are financial institutions, to large technology corporations such as Apple, Google, Samsung or e-commerce companies such as Amazon or Alibaba, telecommunications corporations and fintech firms. However, there are also many challenges facing the banking system.
Currently, digital technology has been implemented in the banking system, bringing many benefits to customers, but there are still risks. What can be done to limit the risks and ensure the safety of customers’ personal information?
I think there are four important solutions.
The first is to increase protection measures to enhance the risk control capacity for information technology, especially cyber security. Secondly, it is necessary to increase the knowledge of customers, people, businesses and bankers themselves to jointly control the risk. To control risks, it requires the involvement of not just one but three sides, namely the financial institutions, customers and regulators. Thirdly, a legal corridor should soon be created to better guide financial institutions in controlling risks. Finally, we need to strengthen the information technology infrastructure to minimise technical errors.
Should banks link up to develop together?
In order for the Vietnamese banking system to implement e-payment systems connected with each other, there should be a common standard for QR codes so that a customer can trade with different banks and use all on a common platform. It is also necessary to standardise the rules to ensure safe transactions for both banks and customers. Some countries have deployed this in recent years such as Singapore and South Korea.
In your viewpoint, should banks consider fintech companies as partners?
I think that they will co-operate with the other in the spirit of fair competition to provide good services at a reasonable price for customers. They should work together to create an e-payment ecosystem as well as financial services model for people and banks.
How do you evaluate the non-cash trend in Việt Nam and its impacts on banking operations?
Non-cash payments will develop rapidly in the near future, alongside Industry 4.0, e-commerce, the rising use of smart phones and online activity.
It is clear that the rate of Vietnamese using e-payment means, especially mobile payments, has grown very fast in recent years. Statistics show that 62 per cent of shoppers in the world have bought and sold online.
At present, 44 per cent of Vietnamese customers have been using digital banking and trading on social networks.
With the current speed, it will grow faster in the future. For example, on the occasion of Black Friday or Online Friday, customers adopted e-payments very quickly, using QR codes to make non-cash payments. Việt Nam’s problem is that there is a need for a better eco-system for e-payments, especially mobile payments, as each mobile company can not do it by itself, but requires an ecosystem of providers, buyers, sellers and the service users, especially the legal corridor along with the information infrastructure to support that ecosystem.
Currently, Vietnamese people are not really familiar with this new form of payment. How can this be improved?
This is right, many Vietnamese people still have the habit of using cash. So, there are three things to do.
Firstly, we need to enhance communication to raise public awareness about electronic financial services, especially relieving people’s anxiety over security in e-payment.
Secondly, it is necessary to strengthen and build a legal corridor to protect the interests of the involved parties including people and enterprises as well as financial institutions when providing e-payment services.
Finally there should be a stable information technology infrastructure to ensure that there are no unfortunate incidents during its operation.
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