The slow disbursement of official development assistance (ODA) capital for projects in Vietnam has prompted the government to urge for the removal of policy obstacles to speed up progress. In recent years, ODA disbursement has reported a feeble performance, with the disbursement rate as of February 29 estimated at just 1.42%. The Ministry of Planning and Investment (MPI) has pointed out various reasons for the slow disbursement, including problems in negotiating and signing loan agreements, differences in policies and procedures between Vietnam and donors, and obstacles in bidding and site clearance [24067c08].
To support Vietnam in semiconductor development, the United States will provide increased investment and support for workforce development initiatives in the semiconductor industry. Vietnamese banks are also planning to increase their charter capital this year [24067c08].
Retailers in Vietnam are determined to expand their operations. AEON Vietnam and FPT Retail are among the companies opening new stores and pharmacies. The government is implementing pro-business solutions to build on rising confidence and boost production and exports. The Vietnam National Brand Week will be held from April 15-21 to promote products recognized as national brands. Binh Dinh province will have a 43-hectare eco-tourism project with a total investment of over $160 million [24067c08].
These developments in Vietnam's economy, ODA disbursement, semiconductor development, retail sector, pro-business solutions, national branding, and eco-tourism contribute to the country's ongoing efforts to strengthen its business and economic landscape [24067c08].
Village-run enterprises (BUMDes) are important instruments for boosting the welfare of villagers in Indonesian rural regions, according to Villages, Development of Disadvantaged Regions, and Transmigration Minister Abdul Halim Iskandar. As of 2021, 10,886 rural governments have placed capital totaling Rp1.16 trillion (US$72.3 billion) in BUMDes, with an average of Rp44.23 million (US$2.7 thousand) per village. At the end of 2023, BUMDes allocated some portions of their profits to the village budgets, with the total value reaching Rp162.99 billion (US$10.1 million), or Rp14.97 million (US$932 thousand) per village. BUMDes have been managing around Rp3.06 trillion (US$190.6 billion) of rural assets and have empowered a total of 331,232 villagers, including 123,119 women from poor families. The minister emphasized the importance of managing local economies, especially for underprivileged villagers [470256da].
Microfinance has made remarkable developments and contributed significantly to poverty reduction and financial inclusion promotion in Vietnam. Vietnam currently has four microfinance institutions with total assets of VNĐ10.38 trillion and 500,000 customers. The country had 79 microfinance programs and projects which had been granted registration licenses by the SBV. However, the operational scale of the microfinance sector in Vietnam was still quite small and did not match the development potential. The capital increase of microfinance institutions remains limited because the current policies cannot encourage all social resources to participate in microfinancing activities. Some regulations are not consistent, causing difficulties in the operation process of the institutions. To help microfinance play a bigger role in promoting financial inclusion in Vietnam, it is necessary to continually review and streamline the microfinance legal framework. It is necessary to issue a unified regulation on microfinance customers in accordance with the provisions of the amended Law on Credit Institutions. The Government should also amend the regulation on capital contribution members of microfinance institutions, so that it is not a requirement to be part of a political organization or a socio-political organization to take part. There need to be plans to improve the operating capacity of microfinance institutions, microfinance programs and projects through capital increase from equity, domestic and foreign investors and bond issuance. Microfinance institutions need to increase the application of technology in product development and diversification, along with promoting cooperation with commercial banks and financial technology organizations to enhance the application of such technologies, such as SMS banking, home banking and mobile banking, to make them even more convenient for customers. It is also necessary to strengthen education and communication in terms of financial understanding for customers, so they can effectively manage and use these kinds of financial resources and achieve sustainable financial goals [35a7f04e].