Weekly review: Hot finance-banking issues in Vietnam and abroad

First banking amalgamation in HCM City

For a safe and highly competitive banking system

Three HCM City- based commercial banks have merged, according to Governor of the State Bank of Vietnam (SBV) Nguyen Van Binh.

Those involved include De Nhat Commercial JS Bank, Vietnam Tin Nghia Bank and Sai Gon Bank. The Bank for Investment and Development of Vietnam (BIDV) will be the official representative for State capital in the new enterprise.

This has been the first domestic merger since the central bank announced its overhaul plan last month, aimed at restructuring the domestic banking system.

Vietnam, Cambodia foster relationship

Party leader Trong ends Cambodia visit

Party chief active in Cambodia

Party General Secretary Nguyen Phu Trong’s official visit to Cambodia from December 6-8 has reaffirmed the two countries’ close traditional friendship which has been nurtured for generations of leaders and people of both sides.

Mr. Trong had high-level talks with King Norodom Sihamoni and met with other top Cambodian leaders.

The General Secretary spoke highly of the great and comprehensive achievements made by the Cambodian people under the rule of the King and praised the clear-sighted leadership of the Royal government.

King Sihamoni expressed Cambodian people’s deep gratitude to the Communist Party, government, and people of Vietnam who helped Cambodia escape the genocidal regime and reconstruct the nation. Vietnamese people are great and trusted friends of Cambodian people, and Cambodian people are good neighbors who stand side by side with Vietnamese people, he said.

Strengthening parliamentary relations between Vietnam and EU

EEAS’s role in developing relations with Vietnam highlighted

Vietnam highly values the development of cooperative relations with European Union countries, including the UK.

National Assembly Chairman Nguyen Sinh Hung made the statement at a meeting with UK Deputy Prime Minister Nick Clegg in London on December 8.

The Vietnamese legislative leader said his delegation’s visit is an opportunity for both sides to discuss ways to promote bilateral cooperation in trade, investment, and international issues of mutual interest.

He also met with Deputy Speaker of the UK House of Commons Lindsay Hoyle who expressed the belief that Mr. Hung’s visit will make practical contributions to strengthening friendship and cooperation between the two countries’ parliaments and offer new prospects for bilateral, inter-regional and international cooperation.

Earlier on December 5, NA Chairman Hung paid an official visit to Belgium at the invitation of the President of the Belgian Chamber of Representatives, Andre Flahaut. The visit aims to lift cooperative relations between Vietnam and Belgium to a higher level.

Nearly US$7.4 billion in ODA for Vietnam

Donors' meeting opens in Hanoi

International donors have pledged a total of US$7.386 billion in official development assistance (ODA) for Vietnam next year, compared to US$7.88 billion committed in 2010.

In his speech at the 2011 Consultative Group (CG) Meeting for Vietnam in Hanoi on December 6, Prime Minister Nguyen Tan Dung said Vietnam has committed to effectively in using ODA sources from international donors by accelerating the disbursement of ODA funded projects more rapidly and efficiently.

PM Dung said that next year, the Vietnamese Government will continue focusing on restructuring the national economy targeting public investment, State-owned enterprises, (SoEs) and the banking system. 

Speeding up business restructuring

PM urges efforts to fulfill socio-economic goals

Vietnam aims to restructure and renew more than 1,300 State-owned enterprises (SoEs) in the next five years, of which 573 will be equitized.

The Steering Committee for Restructuring State-owned Enterprises held a conference on December 8 to review 10 years of restructuring, developing, and increasing the operational efficiency of SoEs in the 2001-2010 period.

Over the past ten years, more than 4,700 SoEs have been restructured, including 3,400 equitized and 128 newly established. However, there have been limitations in this regard as the operational efficiency of SoEs is still far from matching the distribution of resources, many enterprises suffer losses and the equitization of SoEs has slowed over the past three years.

European leaders say 26 out of 27 EU member states have backed a tax and budget pact to tackle the Eurozone debt crisis.  

The UK is the only nation that will not join. Prime Minister David Cameron said he has to protect key British interests, including its financial markets.

The UK used its veto to block an attempt, led by the French and Germans, to get all 27 EU states to support changes to the union's treaties.

Instead, Eurozone members and others will adopt an accord with penalties for breaking deficit rules. It will be backed by a treaty between governments, not an EU treaty.

India hospital fire in Calcutta kills dozens

Fire kills 35 in India hospital 

At least 89 people have been reported dead after a fire broke out in a hospital in the eastern Indian city of Kolkata on December 9.

Most of the victims were patients who were trapped after the flames spread through the AMRI hospital.

The fire started in the multi-storey hospital's basement, where flammable materials were stored. It took firefighters five hours to control the blaze.

United Russia passes test of Duma election

Parliamentary elections start in Russia

The United Russia party gained 238 out of 450 seats in Sunday's State Duma election, Central Election Commission (CEC) chief Vladimir Churov said on December 5.

The results showed that the current ruling party of Russia has passed a critical test and gained another five years at the helm of the lower house of parliament.

Founded on December 1, 2001, United Russia won a landslide victory in the 2007 Duma election and gained 315 seats, enjoying a constitutional majority in the chamber.