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Summary

30 STOCKS 42 TRADE - MARKET

COMPLETING THE LEGAL CORRIDOR WOOD INDUSTRY GROWTH
TO HANDLE BAD DEBTS SLOWS DESPITE FULL ORDERS

The Standing Committee of the National Assembly has allowed an The complex pandemic situation, high logistics
extension to Resolution No. 42 to 2023. According to the State Bank costs, and recent global political fluctuations have
of Vietnam (SBV), thanks to the Resolution, the bad debt ratio and bad affected supply chains and sources of raw wood
debt handling at credit institutions have made great progress. However, materials, which put the growth of Vietnam’s
with the internal limitations of the Resolution, this is the most wood industry in 2022 at risk of slowing down
appropriate time to upgrade the Law on Bad Debt Handling. In order even though businesses have orders until the end
to continue to improve the efficiency of bad debt handling at credit of the third quarter and even to the end of the
institutions and to have more time to verify the actuality of policies and year. The Vietnam Timber and Forest Product
solutions in Resolution 42 in order to research and propose solutions Association has proposed the government identify
to further improve the legal system on handling bad debts as well as mechanisms, policies, and solutions to promote
collateral, the Law on Bad Debt Handling needs to be introduced. the continued growth of the wood industry.
32 INVESTMENT - INFRASTRUCTURE

UNPRECEDENTED PRESSURE TO DISBURSE
PUBLIC INVESTMENT CAPITAL

The Ministry of Transport has drastically accelerated progress in public
investment disbursement for expressway projects, especially key
national projects where schedules must not be missed. While there is
pressure to disburse more than VND50 trillion ($2.2 billion) of public
investment capital, which is an unprecedented amount, there is similar
pressure to disburse funds for the Economic Recovery and
Development Program, and some investors have tardy projects and
disbursement remains much lower than the average, Minister of
Transport Nguyen Van The has suggested that directors of project 46 PROPERTY
management boards innovate and change their thinking in managing
and operating traffic projects to quicken progress and create a DESPITE WARNINGS,
breakthrough in disbursement.
“LAND FEVER” CONTINUES

Taking advantage of local information to plan and
build new projects, many brokers and speculators
have pushed up land prices in certain areas by
three or four times compared to a year ago. At the
same time, there have also been cases of people
voluntarily changing the land use purpose,
illegally trading land, and violating construction
orders. Although many localities have issued
warnings, “land fever” has continued in many
cities and provinces this year. Investors need to be
cautious and research prices in surrounding areas
40 TRADE - MARKET before investing.

REMOVING “BOTTLENECKS”
IN RENEWABLE ENERGY

Vietnam has committed to net-zero emissions by 2050 and will reduce
methane emissions by 30 per cent by 2030. To achieve its goals, it needs
to replace coal power with renewable power sources, but there remain
“bottlenecks” in developing renewable energy that need to be removed,
in regard to planning, construction investment, site clearance, electricity
prices, and the arrangement of investment capital.

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