“Cooperation, efficiency and friendliness” is the topmost norm for the operation of Vietnam Financial Consulting Joint Stock Company. The company is making stable steps in high-grade financial business. VIB Forum had a talk with General Director Nguyen Quy Duc about the progress of the company in a very new field in Vietnam.
Can you briefly introduce your company?
In a bid to support the financial sector in general and enterprises in particular, the company has set up a long-term financial consultancy strategy. Over the next five years until 2010, the company will seek new capital markets, which are non-government capital sources in world-leading banks. The Vietnam Financial Consulting Joint Stock Co. is currently a reliable partner of the EU’s Promerly Group, executing investment projects in Vietnam in 2005. The company is also an arm of the US-based World Financing Holding LLC. In addition, the company also has cooperated with other foreign partners like Rong Tong International Investment Development Ltd. and Free Right Development Co., Ltd
We have recently also participated in the real estate market. We directly invested in many projects such as luxury apartment blocks, office buildings, residential quarters, hospitals and shelters for low-income earners. The investment capital is sourced from local and foreign partners. We are also mobilising capital sources for large projects in Vietnam like the US$60-million An Thinh General Hospital and US$5.5-million Happy Apartment project.
What does Vietnam need to do to complete its consulting and auditing system in accordance with international standard?
The State Bank has sent several staff to follow training courses in Australia under the auspices of the World Bank. They will have the chance to gain an understanding of the international financial system. I believe that the Ministry of Finance and other related branches should set up specialised organisations and associations in order to provide information for members and help government and enterprises seek new measures. We should seek new measures to further boost the development of the financial field of the country.
Currently, many Vietnamese enterprises want to lease financial consultancy service but they still feel hesitant because they fear high costs and business disclosure. So, what has your company done to overcome this actuality to be a fellowman of enterprises?
At the moment, enterprises are in fear of financial leasing services for many reasons. In my opinion, enterprises should know the capacities of their targeted financial leasing service providers before making final decisions. In order to minimise failure risks, they should consider the feasibility of their projects as well as their financial capacities and workforces before deciding to follow their projects or not. Under the current mechanism, large projects led by private enterprises and State-owned corporations hardly borrow capital because banks are suspicious of the solvency of project investors.
Our company is providing consultancy services for several projects of large corporations and helps investors to resolve difficulties. Currently, we a have introduced novel measures to settle down financial impasses of enterprises. The measure is approaching capital sources from foreign financial organisations which will accept bank guarantees in fixed terms. And if enterprises fail to settle loans as the maturity comes, banks are authorized to guarantee and create conditions for indebted investors to continue their projects. We think that these loans should be treated as preferential ODA loans. These capital sources are currently managed by the World Bank.
So far, the company has provided almost free consulting services for many small and medium-sized enterprises, which are clients in great need of capital. The company only collects fees when their projects are successfully completed.
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