Vietnam’s real estate market has been stumbling in the dark for some time. This lack of capital resources for developers, high interest rates and poor sales have led to many unfinished developments blighting country. Indeed, many developers are now technically bankrupt, unable to meet their financial obligations to banks and have had to restructure their debts. There is an expectation that this will lead to banks using the collateral (i.e. property assets) to recover their debts and a wave of ‘distressed assets’ be released into the market. We at Cushman and Wakefield believe there are still higher levels of non performing loans (NPL) than the reported 6 per cent in Vietnam, most of which are attributed to the real estate sector. Some commentators have even suggested that real estate could make up 70 per cent of NPLs in Vietnam. To today, however, bad debts and their assets have not been available for investors to acquire openly from banks or investors. This … [Read more...] about Distressed assets a land of opportunity
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Businesses Are a Must in Closed Chain of New Countryside Construction In the national target programme for new countryside construction, the business sector is expected to contribute 20 per cent of resources to new rural reconstruction. Thus far, the business sector has contributed only 5 per cent or so of expected value. This is an obstacle to the goal of building 1,800 communes meeting new countryside standards by 2015. Mr Ho Xuan Hung, Former Deputy Minister of Agriculture and Rural Development and Former Deputy Director of the Steering Committee for New Rural Construction, recently granted an exclusive interview to Vietnam Business Forum on this issue. Nguyen Thanh reports. The objective of the New Rural Countryside Construction Programme is to improve both the material and spiritual life of rural residents. Has this objective truly been reached yet? Among 19 new countryside criteria, the income of farmers must be raised 2-2.5 times over 2008. In 2013, farmers in qualified … [Read more...] about Businesses Are a Must in Closed Chain of New Countryside Construction
Part II: Managing Your Performance by Measuring Your Risks! Revered management thinker Peter Drucker wrote that ‘above all, management is responsible for producing results. Management has to give direction to the institution it manages.’ Leading an organisation to think about and act on risk and performance in an integrated way will no doubt face roadblocks. But, companies should focus first on a few key areas for integration and improvement. Start at strategy setting Integrating risk and performance management takes place at strategy setting. First, there must be a full C-suite consensus on clearly defined business objectives - whether strategic, financial, or operational. Once they’ve defined those objectives together, then they can start identifying the key risks that may present an opportunity to pursue those business objectives or impede their ability to achieve them. Sounds simple, doesn’t it? But for many companies, that kind of risk-informed … [Read more...] about Part II: Managing Your Performance by Measuring Your Risks!
Việt Nam’s banking system has focused intensely on tackling its non-performing loans (NPLs) over the past few years, following the PM’s five-year (2011-2015) plan to restructure the nation’s credit institutions as well as the recently approved Resolution 42. Despite this, NPL volumes remain high, undermining the safety and efficiency of financial institutions. Việt Nam News reporter Phương Uyên discusses various facets of the issue with Alwaleed Alatabani, Lead Financial Sector Specialist at the World Bank in Việt Nam. What do you think of Việt Nam’s approach to NPL resolution in recent years? Is it on the right path? I think there is a renewed focus on the issue of NPL sin Việt Nam at a critical time when we are seeing a lot of new legal … [Read more...] about Non-performing loans can weaken the banking system
GENEVA – The World Health Organisation on Wednesday held off from calling for travel restrictions related to the MERS virus striking Saudi Arabia as the kingdom braces for the Muslim hajj pilgrimage. In a statement following a session of the UN health agency's emergency committee – whose rarity underlined global concerns about MERS – the WHO said there was currently no reason to step up its level of alert. The meeting came amid mounting concern over the potential impact of the annual hajj in October, when millions of people will head to Islam's two holiest sites of Mecca and Medina, providing a possible means for MERS to spread around the globe. "It is the unanimous decision of the committee that, with the information now available, and using a risk-assessment approach, the conditions for a public health emergency of international concern have not at present been met," it said.The WHO's stance so far has been that countries should remain vigilant, monitoring unusual … [Read more...] about WHO holds off raising MERS alert level as Muslim hajj looms