Seafood exports to hit 8 billion USD in 2015

Workshop held to raise consumer responsibility of firmsThe Vietnam Association of Seafood Exporters and Producers (VASEP) predicts the seafood export value will exceed 8 billion USD in 2015 .

The VASEP revealed that the country exported aquatic products to 166 markets worldwide in 2014, earning 7.84 billion USD and increasing by 16.5 percent from 2013.

Nearly all key seafood products experienced stable growth over the year, especially shrimp exports with a 27 percent surge due to increased global demand for the commodity.

The country’s total shrimp export revenue in 2014 reached 3.95 billion USD. White-leg shrimp exports hit 2.3 billion USD, while black tiger shrimp netting 1.4 billion USD, increasing 46 percent and 4 percent over the previous year, respectively.

Consumer confidence rises in last quarter

Vietnamese consumer confidence continued to see rapid improvement in the fourth quarter of 2014, according to the latest Consumer Confidence Index released by Nielsen, a global information and measurement company.

Nielsen said Vietnam became the ninth most optimistic country globally, with an index score of 106, an increase of four points compared to the previous quarter.

Vaughan Ryan, Managing Director of Nielsen Vietnam, said over the last two quarters there was a significant increase in the confidence of consumers in Vietnam.

People are feeling better about their job prospects and about their personal finances, and more people are feeling optimistic about the future.

More consumers are considering spending again on holidays, clothes and new technology, which are all good signs for the economy.

The report also reveals that consumers in Southeast Asia are among the most confident globally.

By gaining 120 points, consumers in Indonesia and Philippines still remain the second most confident globally and the rise in the Philippines was one of the largest quarterly increases globally, an increase of five points per last quarter.

Consumer confidence levels in Vietnam as well as Singapore (100 points) also remains relatively strong.

Similar to the previous quarter, the current state of the economy remains a key concern for consumers.

Close to one in five consumers in the region (18 percent) cited the economy as their biggest concern over the next six months.

Consumers in Thailand (49 percent) and Malaysia (38 percent) are the most concerned globally while about a third of consumers in Indonesia (33 percent) and Vietnam (28 percent) share the same concern. This is compared to 25 percent of consumers globally.

Job security ranks as the second biggest concern for consumers in Southeast Asia (14 percent), particularly in Singapore (28 percent), Thailand (28 percent) and Vietnam (27 percent). Other major worries in the region include work/life balance, health and increasing fuel prices.

Overall, Southeast Asian consumers are among the world's most avid savers, with more than two-thirds (69 percent) channelling their spare cash into savings, compared to just 48 percent globally.

When it comes to savings, consumers in Vietnam are the highest globally (77 percent), and Indonesia ranks third globally (70 percent).

"These latest findings show consumers in Southeast Asia are conscientiously planning their financial future," Bali said.

"With disposable income becoming more readily available than ever before, consumers across the region have the means to invest their spare cash and strengthen savings, which is driving greater demand for banking and financial services."

The Nielsen survey also indicates that at least eight in 10 consumers in Thailand (88 percent), Vietnam (86 percent), Malaysia (85 percent), Indonesia (80 percent) and the Philippines (80 percent) have adjusted their spending habits over the past 12 months in a bid to curb household spending due to concerns about economic recession.

More than six in 10 consumers in Malaysia (65 percent) and the Philippines (62 percent) are spending less on new clothing, while 60 percent of Vietnamese and 56 percent of Thais and Malaysians have cut down on out-of-home entertainment in an effort to reduce household expenses.

Other areas where consumers are cutting back include delaying upgrades of technology, switching to cheaper grocery brands, saving on gas and electricity usage and reducing holidays and short breaks.

"While consumer confidence is relatively stable across Southeast Asia, consumers are expressing concern around areas such as job security and economic health, and as a result they are cautious with their spending," said Bali.

Firms join hands to develop clean food

Hoang Anh Gia Lai (HAGL) Group and food processor Vissan, a member of the Satra Group (SATRA), have teamed up to launch a new premium fresh Australian veal to the domestic market.

Vissan has also introduced numerous veal products through its nationwide distribution channels such as SatraFood, SatraMart, Co.opmart, Maximark and Vinatex supermarket chains on the occasion of the upcoming Lunar New Year (Tet) festival.

According to Chairman of HAGL, Doan Nguyen Duc, Australian calves will be imported to Vietnam , where they will then be raised for meat in the group’s farms in the Central Highlands province Gia Lai ( Vietnam ), Laos and Cambodia .

Vissan’s General Director, Van Duc Muoi, emphasised his firm’s strict management process ensuring food safety from farms to consumers. The new product’s annual output could be as great as 100,000 imported calves, both businessmen added.

Forestry development conference held

This year, the forestry sector aims to halt exploitation of natural forest to protect and develop forest resources while improving living conditions, eliminating hunger, and reducing poverty among ethnic minorities.

Deputy Minister of Agriculture and Rural Development (MARD), Ha Cong Tuan, made the statement at an annual review co-organised by the ministry and the Forestry Sector Support Partnership (FSSP) Office in Hanoi on February 4.

According to Tuan, climate change and international integration has simultaneously opened up opportunities and challenges for the sector.

Looking ahead, the sector will focus on developing sustainable and high-yield forestry models to supply timber and forest products for processing.

Forestry production value is expected to hit 25 trillion VND (1.16 billion USD) in 2015, an annual increase of seven percent, with forest product export revenue at 6.7 billion USD and the forest coverage reaching 42 percent.

At the meeting, FSSP Co-Chair Kirsten Hegener said FSSP and Vietnam are working for a new model of cooperation to help strengthen forest protection and development in the context of adapting to and minimising the impact of climate change, as well as work towards the effective implementation of the country’s Green Development Strategy.

The FSSP looks to participate further in the sector’s restructuring, especially the MARD post-2015 action plans and the amendment of relevant policies, she added.

The FSSP began operation in 2000, and so far it has assisted the country in building around 40 legal documents and projects in forestry.-

Incentives needed to boost auto industry

Chairman of the local private automaker Vinaxuki Bui Ngoc Huyen proposed the Government put forward preferential policies on land, technological transfer, and long-term, low-interest-rate loans to stimulate automobile spare part manufacturing businesses.

In an interview granted to the Vietnam News Agency, Huyen said the industry has undergone 20 years of formation and development with many businesses encouraged to join the auto support industry.

He said the Government has adopted a number of policies to develop the sector, such as supporting the mechanics industry with zero-percent interest rates on 10-year loans, adding that however, few businesses can access this source of capital.

He said support policies do not suit the real situation due to a lack of accurate market forecast.

The businessman said his company has built auto-manufacturing factories creating fuel-saving and low-cost cars for farmers and the middle-class that meet international export standards, but high tax has pushed prices up.

Huyen suggested the Government select and cooperate with foreign partners in producing engines and complicated spare parts via policies prioritising car accessory production over assembly.

Vietnam aims to produce 227,000 automobiles and become a major supplier of spare parts and high-value items in the world automobile production chain by 2020 as a part of the master plan for Vietnam’s automobile industry development recently approved by the Prime Minister.

Da Lat flower plantation ready for Tet

Flower reapers in Da Lat city in the Central Highlands province of Lam Dong are working around the clock to prepare for flower harvests and transport to other cities and provinces.

Flowers cultivated across 916 hectares will be sold in markets on the occasion of the Lunar New Year (Tet). The outputs of 470 hectares of chrysanthemum flowers will be available, as will 130 hectares of lisianthus flowers, 70 hectares of lily flowers, and 70 hectares of boat orchid flowers, among others.

Apart from traditional daisy villages in Thai Phien (District 12) and Ha Dong (District 8), residents in Xuan Tho commune enlarged their lands to grow daisy varieties. Other localities planted lilies, boat orchids and lisianthuses instead of their usual vegetables to serve the increased demand ahead of the Tet holiday.

Currently, prices remain unchanged in chrysanthemums, daisies, gerberas, lisianthuses, carnations and sunflowers, but boat orchid flower branches have ranged between 300,000 VND (14.1 USD) and 1.5 million VND (70.6 USD).

Lily flowers are being sold around 165,000 VND (7.75 USD), below the peak price of 240,000 VND (11.3 USD) during the 2014 Lunar New Year.

Steel production, imports surge in January

Both domestic steel production and imports surged during the first month of 2015, in anticipation of an increase in demand.

Reports from the Ministry of Industry and Trade showed that the domestic steel industry, in the first month of the year, produced 280,400 tonnes, up 71 percent year-on-year, while Vietnam Steel Corporation contributed 120,700 tonnes to the total, a 51 percent increase.

The country also imported 1.1 million tonnes of steel, up 91 percent year-on-year.-

FPT Software targets 1 billion USD in revenue in 2020

FPT Software aims to earn 1 billion USD in revenue, employ 30,000 workers, and join more software outsourcing markets in 2015.

The firm will boost development strategies in main markets, such as develop solutions and services based on modern technology in the United States and train 10,000 engineers for the Japanese market, Nguyen Thanh Lam, General Director of the firm, told a recent conference in Hanoi to summarise the company's activities in 2014.

Lam pointed out that in the period 2004-2013, FPT Software's average growth rates in revenue and human resources were 49 percent and 43 percent respectively.

In 2013, its revenue rose to a record 100 million USD, and the enterprise aimed to earn 130 million USD and have 6,500 employees in the following year. In fact, its revenue increased by 35 percent to touch 138 million USD in 2014. The firm had more than 7,000 employees, with nearly 1,000 people working in its 19 offices in nine countries.

FPT Software also won bids in important markets such as the United States, European Union and Japan last year. In the United States, the Vietnamese company continued its cooperation with DIRECTV, an American direct-broadcast satellite service provider. FPT Software is in charge of developing advanced technologies for broadcasting services that DIRECTV provides on a global scale.

In 2014 alone, the American market brought nearly 40 million USD for FPT Software, with a growth rate of 39 percent. Its revenue in the European Union reached nearly 20 million USD, with a significant growth rate of 117 percent. Japan alone contributed half of the firm's total revenue.

Workshop held to raise consumer responsibility of firms

The Republic of Korea (RoK)’s experience in improving businesses’ sense of responsibility to their customers were presented at a workshop in the central city of Da Nang on February 3 in the context of historically poor consumer rights protection in Vietnam.

Despite efforts by the Ministry of Industry and Trade’s Vietnam Competition Authority (VCA) to raise companies’ liability, violations of consumer rights have increased in their scale and complexity, VCA Director General Bach Van Mung said, partly attributing the concerns to the rapid development of the market economy and the country’s rapid integration into the global economy.

VCA Deputy Director Trinh Anh Tuan said local firms have remained passive in providing information and resolving consumer complaints while failing to thoroughly adhere to the Law on Protection of Consumers’ Rights.

Local authorities have not devoted adequate attention to this issue, leading to a staff shortage in grievances resolution, he added.

Lee Chang Huyn, Executive Director of the Korea Consumer Agency (KCA)’s Department of Information and Education, said support services are currently time-consuming and inaccessible to Vietnamese consumers.

He urged the local public to improve their understanding and actively exercise their rights.

Choi Yoon Seon, head of KCA’s Business Support Team, said Vietnam needs to develop a professional customer care policy stipulating product maintenance services and procedures for filing complaints and settling disputes.

A consumer-centred management system modelled after its RoK counterpart is essential to promote competitiveness and consumption benefits, she added.

Various specialties offered at 2015 Spring Fair

A variety of food and fruit specialties from across the nation will be available at nearly 900 pavilions of the 2015 Spring Fair, to be held from February 6-16 at the Giang Vo Exhibition and Fair Centre in Hanoi.

More than 500 businesses are expected to showcase their products at the event, ranging from popular southern fruits such as Hoa Loc mangrove, green-skin and Nam Roi grapefruits, and Ham Yen orange, to seafood products like Phu Quoc, Nha Trang and Phan Thiet fish sauce and Tan Cuong tea.

The event will feature sophisticated handicrafts, timber and craft village products, and pottery, director of the Vietnam Exhibition Fair Centre (VEFEC) Nguyen Van Tan announced at a press conference in Hanoi on February 3.

Outdoor spaces are reserved for various flowers, such as apricots, tulips, and orchids, as well as once-valuable food items to be used as offerings to ancestral kings, including yellow pheasant, Ho chicken, Anh Vu fish, Dai Hoang banana, and Dinh Lang wine.

The annual Spring Fair provides an opportunity for businesses to promote trade activities and serve the local shopping demand ahead of the traditional Lunar New Year (Tet), the biggest holiday in Vietnam.-

Vietnam, Nigeria to boost cashew trade

A Vietnam-Nigeria cashew trade conference was held in Ho Chi Minh City on February 3 as part of efforts to boost partnership between the two countries in the field.

Addressing the event, Chairman of the Vietnam Cashew Association (Vinacas) Nguyen Duc Thanh addressed the number of difficulties facing cashew trade between the two countries, including modest quality of cashew nuts imported from Nigeria and payment barriers.

At the same time, the two countries have yet to design an effective collaboration mechanism to deal with trade conflicts, he added.

Meanwhile, Chairman of the National Cashew Association of Nigeria Babatotla Faseru said the Nigerian market pledges to improve its raw cashew quality in 2015 by organising training courses for farmers and developing production chains.

Nigeria will also apply advanced equipment and technology to enhance cashew quality, he vowed.

According to the Vinacas, Vietnam will transfer cashew cultivation technology to Nigeria and other African partners during the international cashew conference in November this year. The association is also willing to provide post-harvest technology to Nigeria to reduce loss.

The Vinacas reported that in 2014 Vietnam produced a record 1.4 million tonnes of raw cashew nuts, 305,000 tonnes of which were exported, a rise of 16.9 percent from 2013.

Throughout the year, Vietnamese enterprises imported 769,000 tonnes, a 59 percent increase from 2013. As many as 13.4 percent of the total imports were sourced from from Nigeria.-

Vietnam to improve Official Development Assistance use

Deputy Prime Minister Hoang Trung Hai has requested relevant agencies improve the disbursement and use of Official Development Assistance (ODA) this year.

Ministries, agencies and localities must carefully implement ODA projects, including close supervision to manage any difficulties and prevent misappropriation, he told a meeting between the National Steering Committee for ODA and Preferential Loans and six development banks in Hanoi on February 3.

The Deputy PM, who is also Head of the Committee, asked the Ministry of Planning and Investment to design an action plan for the committee which specifies solutions to existing challenges.

According to the ministry, the world supply of ODA is rapidly declining amid unsustainable global economic recovery and increasing demand in underdeveloped and politically unstable countries, resulting in intense competition among ODA recipients.

In 2014, Vietnam received continued support from foreign donors with over 4.1 trillion USD in loans and concessional loans, and more than 202 million USD in non-refundable aid.

The total value of ODA commitments was nearly 68 percent of the 2013 level, due to preparatory weaknesses.

Meeting participants reviewed a decree specifying the implementation process of construction projects and evaluated the current status of water supply, waste treatment, site clearance and resettlement projects.

They also examined possible amendments to the Law on signing, joining and implementing international treaties, including reducing unnecessary bureaucracy in signing ODA deals.

Shipbuilding corporation healthier after restructuring

The Shipbuilding Industry Corporation (SBIC) has risen from a proverbial shipwreck after an active restructuring and is now ready to sail, stated Chairman of the firm’s member council Nguyen Ngoc Su.

So far, the reform process of the SBIC – formerly known as Vinashin – is on the right track, having restructured 135 million USD of foreign debt and 16.61 trillion VND (790.95 million USD) of domestic debt, he said.

Su revealed that during this year, the SBIC plans to restructure its remaining debt of about 10 trillion VND (470 million USD).

Currently, the firm has 16,500 employees, a sharp decrease from 33,184 in 2010, said Su, adding that in 2014 alone, the SBIC laid off more than 4,000 staff.

As of the outset of this year, the SBIC has completed the reform of 100 subsidiaries and is striving to reshuffle 152 others, he declared. According to the restructuring plan for Vinashin, the corporation will ultimately have one parent company and eight subsidiaries.

Last year, the SBIC equitised two out of the eight member companies and the remaining six are to complete the process this year.

He noted that foreign investors have become increasingly interested in shipbuilding companies, opening up opportunities for these companies to collaborate with foreign partners in finance, technology and market share.

Vu Anh Minh, Head of the Transport Ministry’s Department for Enterprise Management, said collaborating with foreign partners is a strong solution for the SBIC, as fruitful outcomes have resulted from cooperation between the firm’s subsidiaries and a number of partners, including Samsung, Damen and Veka.

In 2015, the SBIC is set to generate total revenue of over 7.2 trillion VND (343.8 million USD), including over 4.72 trillion VND from shipbuilding and 375 billion VND from repair services.

Last year, the SBIC delivered 76 ships, including 33 to foreign clients.-

Vinatex, Itochu embark on new projects

Two leading textile and garment makers of Vietnam and Japan, Vinatext and Itochu Group have recently signed a framework cooperative agreement on implementing a string of new projects on finished textiles-dyeing products and raw materials in Vietnam.

Itochu Textile Prominent Asia CEO Shimizou Motonari said Vietnam is an important market in Asia for textile and garment investment, especially when free trade agreements (FTAs), including the Trans Pacific Partnership (TPP) agreement will be signed or take effect.

More cooperative projects will be placed underway in the upcoming time between members of the two sides as Itochu is both a stakeholder and a long-time business partner of Vinatex, said Motonari.

The string of projects is expected to generate US$60 million in total revenue in the course of the next five years, and create thousands of jobs at project sites such as Nghe An and Quang Binh provinces.

Meanwhile, Vinatex hopes that close cooperation with Itochu will help it expand markets, invest in advanced technologies, and successfully build a comprehensive supply chain in textile and garment for Vietnam.

Up to now, Itochu has been the first non-credit institution from Japan that invests in a Vietnamese state-owned enterprise, such as Vinatex.  Itochu has developed trading relations with about 100 Vietnamese companies in the textile and garment fields.

Trade surplus with Australia expands in 2015

Vietnam recorded a better-than-expected trade surplus in excess of US$1.3 billion with Australia in 2014, according to the Vietnam Customs office.

Exports to Australia jumped 13.7% on-year to US$3.39 billion while imports surged 29% to  US$2.06 billion the customs office said.

Crude oil accounted for 46% of Vietnam’s exports to Australia while other major exports included agro-fishery and industrial products such as steel and electric components.

Meanwhile, Vietnam beef imports from Australia surged 65% on-year. Other significant imports included wheat, milk, dairy products,plastic materials, textile materials, leather and minerals.

Firms urged to consider consumers first

Vietnamese businesses have been asked to step up their responsibility in protecting consumer rights, which was highlighted during a seminar held on Tuesday in Da Nang city.

The seminar provided a forum for sharing the experiences of domestic and foreign experts in the field of consumer rights protection, which was co-organised by the Viet Nam Competition Authority under the Ministry of Industry and Trade and the Korea Consumer Agency.

Speaking at the seminar, Bach Van Mung, head of the authority, said over the years his agency has carried out various activities to boost businesses' sense of responsibility about consumer rights protection.

Mung noted that however, this issue is still relatively new for many businesses. Meanwhile, the rapid development of the market economy and a quick international integration has made the violation of consumers' rights more sophisticated.

Trinh Anh Tuan, the deputy head of the Viet Nam Competition Authority (VCA), told the seminar that the responsibility of businesses to provide information and handle complaints from consumers remains limited. Many businesses do not fully grasp the regulations that are part of the Law on Protection of Consumer's Rights

In addition, the network of authorised agencies, from the central to the local level, lack preparation when it comes to the execution of such rights.

Some industry and trade departments at the local level do not even pay much attention to consumer protection or receive petitions from consumers. At present, the number of social agencies established to protect consumer rights is negligible in all cities and provinces.

Lee Hyun Chang, an expert from the Korea Consumer Agency, said once an incident affects the right of consumers, Vietnamese consumers will face difficulty in having access to the necessary services and will end up wasting a lot of time in handling the problem. The Viet Nam legal system that protects consumer's rights is applied to domestic companies only.

Lee said Vietnamese consumers also need to raise personal awareness about protecting their rights.

At the workshop, participants also raised concerns about enterprises in Viet Nam not taking an active part in the protection of consumers' rights. Due to this, violations of consumer rights occur often.

Phan The Thang, an expert from the VCA, proposed that businesses need to take the initiative of working with consumer protection agencies to quickly address any petitions from consumers and develop an ad hoc unit to consult businesses in this field.

Choi Yoon Seon, from the Korean Consumer Agency, said Viet Nam currently needs a professional policy on consumer care, including product warranty and maintenance programmes and services, and an efficient mechanism for receiving any complaints or handling any disputes.

She added that Viet Nam needed to build a Consumer Centred Management system as Korea has to promote competitiveness and raise consumer benefits.

Border trade still faces many barriers

Inadequate infrastructure and supporting services are among the challenges that Viet Nam must overcome to become a hub for cross-border trade, especially as ASEAN will soon become an integrated economic community.

Infrastructure at border gates such as storage areas, inspection equipment and connecting roads were among the hurdles that must be addressed to improve cross-border trade, according to Nguyen Van Hoi, deputy director of the Ministry of Industry and Trade's Department of Mountainous Area Trade.

At a recent forum with international development partners on improving border trade, representatives from Lai Chau, Dien Bien, Cao Bang and Ha Giang provinces said most of the roads serving border gates were narrow. Mountainous roads and a lack of investment in supermarkets, border markets, storage centres and parking areas also made it difficult for businesses.

Suggestions from 25 border provinces made it clear that Viet Nam needed to upgrade and rebuild 122 border markets, improve 93 roads leading to border gates and invest in four border economic zones.

Vo Dai Luoc, former chairperson of the Central Institute for Economic Management, said policies should encourage the private sector to invest in infrastructure development at border gates.

The Trade Ministry is working on a plan to call for investment into upgrading border markets, connecting roads and improving the competitiveness of small and medium enterprises involved in border trade.

Viet Nam aims to record US$30 billion from border trade by 2020, according to a development plan approved recently by the Prime Minister Nguyen Tan Dung. Under the plan, the country could fetch as much as $14 billion in export earnings, with imports valued at $16 billion.

Border trade is forecast to reach $50 billion by 2030, with approximately $22 billion coming from exports.

The country is now home to 28 border EZs, covering a total area of 600,000ha.

Vietnamese businesses expect drop in interest rates

Many enterprises expect bank loans' interest rates to drop soon so that they can have better business performance, said Cao Sy Kiem, chairman of the Viet Nam Association of Small and Medium-sized Enterprises.

Kiem said domestic interest rates on loans for production and business activities now range between 7 and 10 per cent per year, which are high, compared with regional levels.

Economic conditions remain tough and the number of companies ceasing operations and going bankrupt has not declined, although lending rates had fallen by about 2 percentage points in 2014 from the levels recorded in 2013.

Late last month, State Bank of Viet Nam (SBV) Governor Nguyen Van Binh had also instructed credit institutions to further cut annual interest rates applicable to medium and long-term loans by 1 to 1.5 percentage points. This was done to assist enterprises and as part of the central bank's monetary policy execution for 2015.

Doan Trong Ly, chairman of the Animal Production Processing Import and Export JSC (Aprocimex), said only Vietinbank has reduced its lending rates from 9 per cent to 8.7 per cent, while other banks have made no moves to lower rates. This firm is still borrowing capital from Agribank at the rate of 9 to 10 per cent.

In addition to Aprocimex, other members of the association are also reportedly getting loans at interest rates of between 8.9 per cent and 10 per cent. Some are even managing to get loans at an interest rate of 12 per cent.

"Banks say interest rates have sharply declined, but that is in comparison with the 18 to 20 per cent levels seen many years ago," an official from Aprocimex said on the condition of anonymity.

He added that it will be hard for domestic companies to compete with foreign firms, which are subject to lending rates of only 2 to 3 per cent.

Some enterprises said medium to long-term lending rates of between 10.5 and 12 per cent are too high in the context of the inflation rate hovering roughly around 4 per cent last year, and that it should have been slashed right at the beginning of this year.

A senior executive at Hanh Phuc Co. Ltd., who wanted to remain anonymous, also pointed out how hard it is for companies to access long-term loans at high interest rates. Many have to seek short-term loans, or borrow money after every three to four months.

SBV Deputy Governor Nguyen Thi Hong has also commented on this lending practice, suggesting that businesses consider suitable investment for adapting to the situation.

National Monetary and Financial Policy Advisory Council Member Tran Hoang Ngan said the amount of loans reserved for small and medium-sized enterprises is currently significant, especially funds allocated for firms in the high technology sector.

But banks will not be able to meet businesses' expectations of a 5 per cent lending rate, based on the overall market conditions at present, he added.

Economic expert Tran Du Lich said it is unnecessary for banks to slash deposit rates in order to reduce lending rates this year, following SBV orders. The current deposit rates of between 5.5 and 6 per cent have already guaranteed profits for banks.

But the head of a joint stock bank reportedly said it is not easy for banks either to cut medium to long-term lending rates because short-term deposits account for up to 85 per cent of all deposits they are managing.

Orient Commercial Bank Deputy General Director Dinh Duc Quang said interest rates can be lowered in the coming months provided that macro-economic stability and good liquidity at banks continues to be maintained.

Many firms have not dared to borrow money although they are trusted by banks, as they are cautious about investments in the current context, he said.

"The important thing now is that authorities from different sectors should help enterprises stabilise operations and sell goods," he added.

Kiem urged enterprises to try and cut employee and sales costs, besides taking advantage of banks' support.

VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR