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Update news economic downturn
VietNamNet Bridge – Information technology (IT) companies have been doing well in the economic downturn, and continue to be sought after by investors.
VietNamNet Bridge – Mergers and acquisitions have been on the rise in Viet Nam since 2008 in terms of both value and number of deals despite the economic downturn,
The Governor of the State Bank of Vietnam has decided to delay the implementation of the Circular No. 02 guiding the provisioning against the risks in credit activities.
Accepting to pay 30-50 percent higher than the market prices, foreign investors have shown their strong determination to buy the stocks of Vietnamese enterprises now, when the stock prices are at the deepest low.
The investment deal of US$200 million in Vietnamese Masan Consumer Group which has just been announced by Kohlberg Kravis Roberts (KKR) is believed to trigger a new wave of private investment funds returning to Vietnam.
The total stock assets of the 500 richest stock millionaires in 2012 reach VND75 trillion. More than a half of the 500 millionaires have the assets of over one million dollars.
While the government weighed and measured out every dong of the bailouts to businesses, ministries tried everything they could to impose higher charges and fees on enterprises, which were nearly at the point of death.
VietNamNet Bridge – It’s not easy for anyone to squeeze into commercial hubs, even though he has a lot of money.
The majority of Vietnamese don’t believe on the predicted doomsday. However, this is still a golden opportunity for businesses to grab up a boost in sales.
Commercial banks have been easing the lending interest rate, which has made the picture of the national economy brighter. However, the biggest problem still exists: it’s very difficult for businesses to access bank loans.
The government is considering slashing the lending interest rate to 10 percent in an effort to rescue businesses which have been thirsty for capital. However, this has not been welcomed by commercial banks.
Not only one, two or several businesses, but numerous foreign invested enterprises (FIEs) have disappeared.
Competent agencies have noted the increasingly high number of businesses which come to follow the formalities to close the tax codes and get dissolved or bankrupt.
Sixty three percent of enterprises said they always have to pay under the table fee to state officials in order to expedite their administrative procedures.
Commercial banks all keep pessimistic about the business result this year, when the credit flow gets stuck and the bad debts increase rapidly.