Page 5 - KTVNSO44

Summary

34 INVESTMENT - INFRASTRUCTURE
27 BANKING - FINANCE RAILWAY

Solution for capital market GIANT
to become less dependent struggling to
escape losses
on collateral
T he Commission for the Management of State Capital
at Enterprises (CMSC) has submitted a report to
C ollateral has been viewed as a safety measure in the capital scheme to restructure the Vietnam Railway Corporation
Deputy Prime Minister Le Minh Khai on approving a
market in recent times, including bank credit and corporate
bonds. Analysts believe that relying too much on collateral will (VNR) to 2025. The scheme was compiled in 2016 and has
slow the development of the capital market. As society and the been altered and re-submitted many times but has not yet
economy develop, there will be more and more professions without been approved, in part because the ‘giant” of the railway sector
collateral, such as the information technology or service industries. was transferred to the CMSC in November 2018, leading to a
To harmonize risk management, ensure safety and credit growth, large amount of work that needs to be clarified. It is necessary
credit institutions need to consider credit ratings for customers with to urgently implement the restructuring of businesses and
large outstanding loans or large loan needs for investment. In units, after missing the restructuring timeframe for the 2016-
Vietnam, Decree No. 88/2014/ND-CP being issued to regulate the 2020 period. VNR continues to complete its restructuring
licensing and operations of credit rating organizations has created project for the 2021-2025 period and will submit it to the
conditions for the formation of an official credit rating market. Prime Minister for consideration and decision.

42 TRADE - MARKET 46 BUSINESS
Improving competitiveness
Coffee industry for businesses in
must transform to THE DIGITAL ECONOMY

adapt to new EU
requirements

A survey by the Department of Enterprise
Development at the Ministry of Planning and
V ietnam’s coffee industry is facing a challenge from having to of the need for digital transformation, but implementation
Investment reveals that most businesses are aware
transform to comply with new laws and rules in the EU and world
markets, including EU regulations on deforestation-free supply has not been as expected. The main reasons are difficulties
chains; a law on supply chain appraisal; and regulations to reduce in financial resources, human resources, and strategy. To
greenhouse gas emissions. The Vietnam Coffee and Cocoa Association improve competitiveness in the digital economy, it is
has proposed directions and solutions to develop the coffee industry necessary to promote both the role of the State and the
towards high-quality products and applying science and technology in proactive, innovative, and creative spirit in the business
farming and processing. The Institute of Policy and Strategy for community, promptly grasp new technologies, proactively
Agriculture and Rural Development has also proposed a set of criteria invest in technology improvements and research, and
and a management system for high-quality Vietnamese coffee. learn and apply new business models and methods.