Businesses offered a guiding hand

The government was set to create opportunities for businesses to access to government bonds and ODA capital because borrowing was difficult now, Thanh told the 450 participants. Lower interest rates, lifting the interest rate cap, monitoring the banking system and fixing weak banks are also on the cards.

Other solutions included rescheduling and freezing debts, restructuring debts, setting up budget funds to guarantee business activities, said Thanh. Authorities were considering providing more room for foreign investors to play in the stock market, he told the Saigon Tiep Thi newspaper-hosted forum.

The government would also increase the budget for trade and investment promotion activities.
Thanh said there would be support packages for businesses, especially small- and medium-sized enterprises, rather than robust and comprehensive rescue packages in 2009 because the government’s current resources were less.

Vietnam’s economic growth has slowed to 4.0 per cent in the first three months of 2012, its lowest rate in three years. The country’s General Statistics Office said growth had been low as “all sectors and areas of the economy encountered difficulties in business, production and consumption, especially in the processing and manufacturing industry.”

In March, inflation slowed to 14.2 per cent from 16.4 per cent in February. Tran Vinh Du, CEO of TNK Capital Partners - one of Vietnam’s most dynamic firms in mergers and acquisitions (M&A), said the country was witnessing more and more M&A activities, and that meant capital flows have shown positive signals. However, mobilising capital remained a problem.

 Vincom Joint Stock Company, Vietnam’s largest real estate company, late March returned to the international convertible bond market less than three years after its landmark debut CB (CB ??)in 2009, raising $185 million.

Also in late March, Vietnamese construction company Cotec issued 10.43 million shares, or 24.7 per cent of its chartered capital, to foreign strategic partner Kusto Group, raising $25 million.

According to Du, the shares were issued at VND50,000 ($2.4) each, higher than the average booked price of VND43,000 late December, a positive signal for the Vietnamese company.