Instead, the country could be provided only preferential loans and gradually market-based financing, Truong Hùng Long, head of the Ministry of Finance’s Department of Debt Management and External Finance said at the conference on the ODA relending polices.

Vietnam was working with the World Bank and other organisations on the roadmap of repayment of official development assistance (ODA) to prevent “shocks” to the State budget when interest rates on existing ODA increased or repayment period was shortened, heard a conference yesterday.

Long said that concessional terms of preferential loans provided to Vietnam gradually became stricter as the country turned into a middle-income country since 2010.

Long said that interest rates on existing ODA would be increased to between 2 per cent and 3.5 per cent, from below 1 per cent per year or the repayment period should be shortened by half as the country needs to implement rapid debt repayment obligation after providing of the ODA.

Before 2010, average repayment period was around 30 years to 40 years with borrowing costs between 0.7 and 0.8 per cent per year, including a grace period. In comparison, the average repayment period was between 10 years and 20 years and borrowing cost was from 2 per cent during the 2011 to 2015 period.

The finance ministry said it was working with the World Bank, a major donor to Vietnam, and other organisations about ODA repayments to prevent negative impacts to the State budget. “The negotiations are underway,” Long said.

Repayment pressure

As negotiations for ODA repayment were underway, Long said that he could not give an exact amount of the public debts Viêt Nam had to pay by 2020.

He said that debt repayment pressure would be the heaviest in 2022 to 2025 period, so the pressure would not be huge in the next four years.

Long said that payables this year would account for around 14.7 per cent of the total budget collection, or VND150 trillion (US$6.7 billion).

Statistics from the finance ministry showed that Vietnam received US$45 billion worth of ODA between 2005 and 2020.

The finance ministry said that ODA contributed to the country’s socio-economic development and on improving the infrastructure system. However, while the credit risks were still put on the shoulder of the State budget, the management and use of ODA sometimes were inefficient.

Long said that from now to July 2017, Vietnam must take advantage of the ODA to invest in development of the infrastructure system.

In order to enhance the efficiency of the ODA management and use, Long said that the relending mechanism might be applied at localities with a better financial situation to share the public debt pressure with the State budget.

The Phousy Group has been granted a 99-year concession on an area of land in Chomphet district across the Mekong River from the provincial capital, and all land transactions have been prohibited to prevent land speculation.

Development of the zone on an area of 4,850 hectares is expected to cost the Phousy Group US$1.2 billion, and will bring the total number of SEZs nationwide to 13.

The announcement from the government was issued on March 7 after an agreement to build the zone was signed earlier this year by representatives from the government and the Phousy Group.

Citing the notice, people who try to buy or sell land from this point forward will be penalised under the relevant laws and regulations. Compensation for land within the zone that is needed for development is under consideration, according to the provincial authorities.

The development is part of plans to create a new town outside the provincial capital, while ensuring the town’s cultural integrity is preserved.

The zone will be located about 10km outside Luang Prabang town centre with another site in Chomphet district on the other side of the Mekong.

Based on the plan, the Phousy Group will build a bridge across the river along with roads, electricity, water supply and other amenities to attract businesses to the area.

People who live in the area, along with visitors, currently use ferries to cross the Mekong to travel the short distance between the town of Luang Prabang and Chomphet district.

A bridge will facilitate tourism, trade and investment in the province.

Designed as a new town, the zone will feature a 23-storey building, schools, hospitals, a shopping centre, bank, hotels, restaurants, and residences for older people. Areas for vegetable gardens are also planned.

A one-stop operating service will be introduced for businesses in the zone to ensure transparency and accountability and to facilitate development.

When the development is complete, the government believes it will help to boost economic growth in the province and generate job opportunities for local people.

The zone will not only serve as a driver of economic growth, but will also spur development in other areas.

Other Special and Specific Economic Zones in Laos are the That Luang Marsh SEZ in Vientiane, the Savan-Seno SEZ in Savannakhet province, the Golden Triangle SEZ in Bokeo province, the Boten Dankham SEZ in Luang Namtha province, the Vientiane Long Thanh Golf Course, the Phoukhiew SEZ in Khammuan province, and the Pakxe-Japan Specific Economic Zone in Champassak province.

Of the 870,766 applicants for a new credit facility in 2015, 85 per cent have never seen their personal credit files, Credit Bureau Singapore (CBS) said.

According to its statistics, consumers aged 21-29 are the most credit hungry, making up 19 per cent of credit applicants in 2015. This is followed by those aged 30-34 (18 per cent), 35-39 (16 per cent) and 40-44 (14 per cent).

CBS disclosed the figures on Monday (March 21) when it welcomed the move by the Association of Banks in Singapore to let consumers know that they can get a free credit report when they apply for a credit facility like a home loan, car loan or even a credit card.

“The scheme dovetails with CBS’ initiatives over the years to encourage consumers to know what their lenders know of them,” said CBS executive director William Lim.

“As consumers below 35 years old make up more than a third of credit applicants, the initiative will empower young borrowers to take charge of their credit information and understand the benefits of building a good credit history for future credit applications,” he added.

A credit report is an indication of an individual’s financial health and is used by all lenders in Singapore to assess the risk involved in granting credit.

CBS is one of two credit bureaus recognised by the Monetary Authority of Singapore. The other is DP Credit Bureau.

CBS’ credit report contains a record of an individual’s payment history, including the last 12 cycles of repayment trend showing promptness of payments relative to their due dates, as well as any records of default and bankruptcy.

The report also holds a credit score, which measures the probability of the consumer defaulting based on his or her credit history, within the next 12 months.

To access their credit report, from April 1, consumers can log on to CBS’ website (www.creditbureau.com.sg) with their SingPass ID and password to obtain a free copy within 30 days after their credit application has been approved or rejected.

They can also personally visit the CBS office at SGX Centre 1 to obtain their free credit report by bringing the notification letter issued by their lenders who are members of CBS to inform them of their credit application approval or rejection status, with their original ID documents. This also has to be done within 30 calendar days from the date of their credit approval or rejection letter.

Currently, an average of 11,000 consumers access CBS’ credit reports monthly.

Given the scale and complexity of the long-term project, the government took a long time to consider all aspects and input relating to the multi-trillion rupiah project, Jokowi said.

“Therefore, based on the calculations and considerations that I myself have made, we have decided to build the project onshore,” he said at Supadio Airport’s departure lounge in Pontianak, West Kalimantan, on Wednesday.

The main considerations, he continued, were the multiplier effects and the acceleration of economic development, both in the Maluku region and in terms of national development. “The energy and mineral resources minister and SKKMigas [the Upstream Oil and Gas Regulatory Special Task Force] will follow up on the decision,” Jokowi added.

Energy and Mineral Resources Minister Sudirman Said added that the ministry would direct information on the decision to the contractors, Inpex Corp and Shell, to review and adjust the proposal of development (POD). The final investment decision (FID) is targeted to be completed in 2018.

“We will convey this news to investors through an official letter, then we give them the opportunity to review. With possibility of [the POD] being reviewed, there will be a little delay,” he said.

He also urged SKKMigas to leave out unnecessary details from the discussion with Inpex and Shell to accelerate the project, highlighting Jokowi’s stance on how the project should immediately benefit the surrounding communities as well as promote economic development.

The industry’s total contribution, which reflected not only the economic activities of directly related industries, but also the wider effects from investment, the supply chain and induced income impacts, is also expected to rise by 6.6 per cent this year and further increase by 5.4 per cent to P2.6 trillion by 2026, data from the WTTC’s Travel and Tourism Economic Impact 2016 report showed.

The industry’s direct contribution—a measure of the economic activity generated by industries such as hotels, travel agents, airlines and other passenger transportation services—rose to P569 billion last year, equivalent to 4.2 per cent of total GDP. Direct contribution is similarly expected to grow by 6 per cent to P604 billion this year and by 5.3 per cent yearly to P1 trillion by 2026.

“The direct contribution of travel and tourism to GDP reflects the internal spending on travel and tourism or the total spending within a particular country by residents and non-residents for business and leisure purposes, as well as government individual spending or spending by government on services directly linked to visitors, such as cultural (e.g. museums) or recreational (e.g. national parks),” the report explained.

According to WTTC, investments made in Philippine travel and tourism last year reached P76 billion, or about 2.7 per cent of total recorded investments. On the back of an expected continued rise in arrivals, investments in this sector are expected to grow by 8.3 per cent this year and by 5.5 per cent annually over the next 10 years to P140 billion.

Money spent by foreign visitors, or what WTTC termed as visitor exports, was deemed a key component of the direct contribution of travel and tourism to the local economy. In 2015, the Philippines generated P294.4 billion in visitor exports, a figure expected to grow by 3.6 per cent this year, during which the country is expected to attract some 5.5 million international tourists.

By 2026, international tourist arrivals are forecast to hit 9.19 million, generating an expenditure of about P579.8 billion, on the back of an expected yearly growth of 6.6 per cent for receipts.

As for employment, the Philippine travel and tourism industry supported 1.3 million jobs in 2015.

This figure included employment by hotels, travel agents, airlines and other passenger transportation services as well as activities of the restaurant and leisure industries directly supported by tourists.

Employment in the travel and tourism industry is seen to rise by 3.1 per cent in 2016 and by 2.4 per cent a year to 1.65 million jobs by 2026.

According to the Ministry of Planning and Investment’s Foreign Investment Agency, some 1,346 Chinese projects are in operation in Vietnam, with total registered capital of US$10.4 billion, making China the 9th largest investor of the 112 nations and territories investing in Vietnam.

The Chinese projects are each worth $7.7 million on average, half the average value of foreign investment projects in Vietnam.

Data released by the planning and investment ministry’s Foreign Investment Agency showed that Chinese businesses have been focusing on investments in processing and manufacturing industries in Vietnam, with 916 projects worth $5.38 billion, accounting for 68 per cent of the total number of Chinese projects in Vietnam. Other Chinese projects are being conducted in production lines, electric distribution systems, gas, water and air conditioners.

The businesses have invested in 54 of the total 63 cities and provinces nationwide, concentrating on areas with good infrastructure that are close to the Vietnam-China border or where many Chinese live, such as in the northern provinces of Lao Cai, Quang Ninh and Hai Phong and in HCM City.

The southern province of Binh Thuan has attracted the highest investment capital from Chinese businesses, with more than $2 billion spread over five projects. It’s followed by southern Tay Ninh Province, with 36 projects worth $1.2 billion, and northern Ha Giang Province, with five projects worth more than $1 billion.

By the end of 2015, Vietnam had invested in 15 projects in China, with total registered capital of more than $16 million, focusing on production and service. This included key projects, such as the $3 million project to construct a trade centre by Viet Trang Im-export Joint Stock Company and the $6 million workshop for the production and trade of weighing scales.

The Foreign Investment Agency reported that Chinese businesses had sharply increased their investment capital from $312 million in 2012 to $2.3 billion in 2013 and $7.9 billion in 2014. It’s expected to reach more than $8 billion this year.

Speaking at a Vietnam-China business forum held in Ha Noi earlier this year, Deputy Head of the Vietnam Chamber of Commerce and Industry’s International Relations Division Pham Quang Thinh said when the TPP agreements were fully approved, Vietnam was recognised as a gateway to enter the markets of Asean members and the rest of the world due to its geographic advantages and dynamic economy.

Economist Bui Trinh of the General Statistics Office told the local media that there were many Chinese FDI businesses using outdated technologies, impacting the environment and misusing natural resources when operating in Vietnam.

Trinh said Vietnam needed to be more serious in attracting FDI. It should allow FDI projects that use advanced technology, are environmentally friendly and encourage the transfer of technology to Vietnamese businesses.

To make matters worse, it is difficult to irrigate the fields from Sungai Muda because the heatwave is causing the water to evaporate quickly.

Pumping stations in Bumbung Lima and Pinang Tunggal are trying to channel water into the fields but the one in Pinang Tunggal is already suffering from low levels.

“The level in Sungai Muda has to be at least 2m for the pumps to work efficiently and the water level is now 1.8m,” said state Agriculture and Agro-based Industry, Rural Development and Health Committee chairman Dr Afif Bahardin.

“We hope the Beris Dam in Sik, Kedah, will continue to release water into Sungai Muda, but that will not be sufficient by itself without rain,” he said after inspecting the irrigation situation in Pinang Tunggal.

He said those padi fields were important and 80ha of them were run by the Malaysian Agricultural Research and Development for its work and to produce padi seeds.

There were plans to bring in portable pumps to help channel water from Sungai Muda into the fields, Dr Afif said.

“We are also looking into the possibility of cloud seeding over the water catchment areas in Kedah,” he added.

On the effects of the hot spell on rice output, Dr Afif said it was hard to say for sure now, but a similar situation in 2014 saw rice output increase over that of the previous year.

“We got 150,000 metric tonnes of rice that year compared to 130,000 in 2013,” he said.

He hoped that the rains would come in early April but the Meteorological Department said more likely by mid-April.

“Water is precious now, let’s not waste any,” he said.

Corbat, who is in the Philippines for his first official visit as CEO, is scheduled to meet top clients and engage employees as well as meet with Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. and Finance Secretary Cesar Purisima.

In the Philippines, Corbat said Citi’s strategy would be to make sure that his bank would continue to support clients and “help local companies grow globally and support the champions of tomorrow.”

Last year, Citi advised local food manufacturer Monde Nissin on its $830-million purchase of UK-based meat substitute product company Quorn Foods. “Since 2015, we have also helped raise over $5 billion for the country and its companies from global capital markets, including a couple of international bond offerings for the Republic of the Philippines,” Corbat said in an e-mail interview with the Inquirer.

He pointed out that consumer banking and wealth management businesses were also market leaders in the Philippines. He added that Citi had the leading credit card business based on value of spending.

“Looking around the globe, the world is and will remain an uneven place, Corbat said. Along with such an uneven global growth, the banker sees sustained low commodity prices and a slow trajectory for US rate increases, similar in many respects to 2015.

The Citi chief said that in Asia, the likes of South Korea, China and the Philippines were each different in terms of growth and outlook. Whether it’s Asia, Latin America, Africa, he said one would need a local perspective because all those economies were in various stages of growth, recovery and change.

“Clearly, in some emerging markets, the precipitous drop in commodities and in particular oil, indicates real challenges where you have emerging economies built and structured to have 4 to 6 percent growth rates and a high dependence on the export of commodities, especially oil, to fund government programmemes,” Corbat said.

In its announcement, issued last month, the department said the domestic production of pork and piglets was sufficient for local consumption and there was even a surplus in Vientiane so meat could be supplied to the provinces.

The department urged all livestock and fisheries sections around the country, as well as pork producers and suppliers, to impose the ruling.

The illegal importation of pork and piglets affects pig producers and pig breeders, especially in Vientiane, and makes it difficult to balance meat supply.

The department said the ban would not lead to an unreasonable hike in the price of pork.

The announcement directed all provincial livestock and fisheries sections to strengthen veterinary inspections at borders and carry out strict checks to prevent the import of pork products.

People who violate the ruling will be fined by the authorities, while any pork or piglets that are imported illegally will be disposed of.

The announcement did not specify how long the suspension would last, but said those involved in the industry and members of the public should watch for announcements on when the ban might be lifted.

Pork is one of several items whose price is controlled and the government has set a maximum price to prevent traders from increasing their prices unreasonably.

Imported pork that is sold at a lower price than Lao pork causes problems for domestic pork suppliers and piglet producers when their sales drop.

World Trade Organisation (WTO) directives state that when imports have a severe impact on the local economy, a country can postpone imports but should set a deadline on the suspension unless there is no limit to the ban, according to the Department of Foreign Trade Policy under the Ministry of Industry and Commerce.

Many Lao farmers and suppliers have struggled to repay their bank loans after their business slumped because the market was flooded with imports.

Statistics from the Livestock and Fisheries Department show that 3 million pigs were raised across the country in 2013, a growth rate of 6 percent that year. The department says these numbers and a strengthening of the industry enable Laos to produce a surplus of pork for sale.

The multimarket Internet Scams study aimed to gain a better understanding of the more common online rackets by polling 400 users aged 18 to 65 in four countries – Malaysia, India, Singapore and Thailand. Of these, Malaysia unfortunately tops the list with 46 per cent of respondents saying they had been victims of Internet scams, followed closely by Thailand at 43 per cent.

Worryingly, this figure could be just the tip of the iceberg as a further 46 per cent of Malaysian respondents – all of whom classified themselves as Internet users averaging nearly 10 hours per day on the Web – said they knew a friend or family member who has been scammed online.

“This survey is a good barometer on Internet scams in Malaysia, and areas that should be addressed,” said Telenor Group’s social responsibility head Ola Jo Tandre.

Hot button issue

Online safety is a growing concern with more than half of those surveyed (54 per cent) stating they are “very concerned” with online scams – that’s more than those concerned with mugging (45 per cent) and stalking (42 per cent).

The study also found that one in five people have been victims of Internet auction and online dating scams, and one in 10 had their Facebook accounts hacked.

The largest percentage of Malaysian scam victims had fallen for the fraudulent “work from home” scheme – a scam where users are either fooled into paying someone online to help them start a business, or undertake work but never receive payment.

Many online shoppers also reported getting swindled by unscrupulous sellers – almost a quarter had experienced Internet auction fraud, where they purchase an item online and never receive it.

And finally, Malaysians were also victims of online dating scams, where a scammer creates a fake profile on an online dating site to elicit money.

Of those who have been targeted by online scams in Malaysia, six in 10 have had their wallets hit, with the average financial loss sustained per person about 7,050 ringgit (US$1,730).

However, the study notes that the amount of money lost by Malaysians is significantly smaller in comparison to other surveyed nations – the regional average for those who incurred financial losses due to scams is a whopping 41,870 ringgit.

Despite these staggering figures, Malaysians on the whole acknowledge the benefits of a readily available Internet with 90 per cent agreeing that the Internet has improved their lives, and 81 per cent attributing strengthened relationships with friends and family due to the Net.

With so much at stake, creating awareness and educating Web surfers is paramount to prevent more from falling for online scams.

Staying safe online

Though the danger – and repercussions – of online scams are very real, it is relatively simple to avoid falling prey to them. It may seem old news to more experienced users, but since so many still fall prey to online scams, these tips bear repeating:

1. Delete suspicious and untrustworthy e-mail messages.

2. Ignore advertisements that appear “too good to be true”.

3. Always update your anti-malware software.

4. Research scams online.

5. Disseminate information and share preventive tips with friends and family via social media.

“We hope the findings from this digital consumer study will encourage all Malaysians to be proactive in educating themselves to stay safe online, so they can enjoy the internet’s opportunities,” says Tandre.