Hanoi
Mobilizing finance for Hanoi's development
The Ministry of Finance is drafting a decree for a number of mechanisms, financial and budgetary policies that are specific to Hanoi. In particular, the Ministry proposed regulations on the mobilization of financial resources for investing and developing Hanoi.
According to the draft, the State investment priorities on the budget and other financial resources for socio-economic development to implement Hanoi to be central role of politics - economy - society.
For some projects, important projects with large-scale investment in the fields of environment, transport, irrigation by Hanoi's management beyond the balance of the local budget, Hanoi People's Committee submitted to the National Assembly for decision supported from the central budget to the municipal budget to implement each project.
Although credit growth rose steadily from 3.15% in July to 4.08% in August and 6.62% in September this year, capital has not been effectively pumped into the economy. As a result, it is hard to expect strong growth. Meanwhile, banks’ non-performing loans tend to increase mainly due to low credit growth and slow settlement of bad debts. For instance, the ratio rose from 3.61% at the end of 2013 to 4.07% last May and even 4.17% in June.
So far this year, the Viet Nam Asset Management Company purchased around VND 19,600 billion of bad debts compared to the preset target of VND 70-100 trillion for 2014 alone. For business community, the former Deputy Minister said he really feels worried as the number of dissolved and suspended enterprises went up 13.8% , equivalent to 48,330 enterprises, against the previous year.
The number of newly-established businesses and registered capital volume have not much improved, he added. To overcome the above challenges, the Government has tasked inferior levels to realize a series of solutions to facilitate production and business while stepping up the implementation of the Master plan to restructure the economy.
The General Statistics Office has reported that the economy expanded 5.62% in the first nine months of 2014.The figure, as Mr. Sinh commented, goes beyond expectations. Specifically, the GDP climbed from 5.09 percent in the first quarter to 5.42% and 6.19% in the second and third quarters, respectively, according to the statistics agency.
The index of industrial production also rose on the quarterly basis, from 5.3% in the first quarter to 6.9% in the second quarter and 7.7% in the July-September period. Other positive signals include increases in both foreign direct investment inflow (reaching US$8.9 billion, up 3.2%) and official development assistance (US$4.1 billion, up 10% compared to the same period last year).
Besides, the Hanoi People's Committee may decide to receive non-refundable aid to the city that has a grant size of $1 million; particularly for aid related to religion, defense and security must be reported to the Prime Minister for decision; City Chairman is responsible for implementing the reception, management and effective use of aid, performing settlement, accounting regime as prescribed by law; periodic reports to the Ministry of Finance, Ministry of Planning and Investment to track, monitor, and report to the Prime Minister.
Hanoi to borrow foreign loans for investment in infrastructure development of the City's budget spending task
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For some projects, important projects with large-scale investment in the fields of environment, transport, irrigation by Hanoi's management beyond the balance of the local budget, Hanoi People's Committee submitted to the National Assembly for decision supported from the central budget to the municipal budget to implement each project.
Although credit growth rose steadily from 3.15% in July to 4.08% in August and 6.62% in September this year, capital has not been effectively pumped into the economy. As a result, it is hard to expect strong growth. Meanwhile, banks’ non-performing loans tend to increase mainly due to low credit growth and slow settlement of bad debts. For instance, the ratio rose from 3.61% at the end of 2013 to 4.07% last May and even 4.17% in June.
So far this year, the Viet Nam Asset Management Company purchased around VND 19,600 billion of bad debts compared to the preset target of VND 70-100 trillion for 2014 alone. For business community, the former Deputy Minister said he really feels worried as the number of dissolved and suspended enterprises went up 13.8% , equivalent to 48,330 enterprises, against the previous year.
The number of newly-established businesses and registered capital volume have not much improved, he added. To overcome the above challenges, the Government has tasked inferior levels to realize a series of solutions to facilitate production and business while stepping up the implementation of the Master plan to restructure the economy.
The General Statistics Office has reported that the economy expanded 5.62% in the first nine months of 2014.The figure, as Mr. Sinh commented, goes beyond expectations. Specifically, the GDP climbed from 5.09 percent in the first quarter to 5.42% and 6.19% in the second and third quarters, respectively, according to the statistics agency.
The index of industrial production also rose on the quarterly basis, from 5.3% in the first quarter to 6.9% in the second quarter and 7.7% in the July-September period. Other positive signals include increases in both foreign direct investment inflow (reaching US$8.9 billion, up 3.2%) and official development assistance (US$4.1 billion, up 10% compared to the same period last year).
Besides, the Hanoi People's Committee may decide to receive non-refundable aid to the city that has a grant size of $1 million; particularly for aid related to religion, defense and security must be reported to the Prime Minister for decision; City Chairman is responsible for implementing the reception, management and effective use of aid, performing settlement, accounting regime as prescribed by law; periodic reports to the Ministry of Finance, Ministry of Planning and Investment to track, monitor, and report to the Prime Minister.
