Demand for accounting/finance personnel remains “hot”

Accounting/finance ranked third amongst the top five functions with the
highest demand for executive positions during the first three quarters
of 2010, reported Navigos Group.

Of the total
demand for accounting/finance manpower, 25 percent was for finance
managers and directors, 4 percent for finance controllers and demand for
chief accountants and accountants was a substantial 38 percent and 33
percent respectively, according to a recent research carried by the
leading and largest recruiting firm in Vietnam .

Navigos Group’s Managing Director Nguyen Thi Van Anh said, “The most
recent monetary downturn was witness to the growing influence and
control that chief finance officers and finance leaders have in guiding
businesses through troubled times.”

“No longer just
bookkeepers for their firms, accounting and finance professionals are
regarded as business partners, skilled in areas of divesting and
restructuring businesses, developing financial models and analysing
financial forecasts, as well as developing back office transaction
processes that support cast flow and drive efficiencies in so many
areas,” the director said.

Le Thi Hong Len, Country
Manager of the Association of Chartered Certified Accountants (ACCA),
added that changes in the roles of professional accountants and the
finance function itself are partly a consequence of the downturn, and
partly an outcome of a growing recognition of the value that the finance
function and professional accountants can add to an organisation.

Len quoted the findings of an intensive survey conducted by ACCA in
105 countries last March, in which nearly 70 percent of respondents
considered it very important for organisations to have a formal
programme to develop the best financial talent.

Up
to 75 percent of the respondents suggested that talent management was an
important component in addressing financial skills shortages prevalent
in many organisations.

Navigos Group and ACCA
jointly hosted a seminar “Accounting/Finance Talent in 2010” in Hanoi
on October 19 to update the most current trend and how best to recruit
and develop accounting/finance talent in Vietnam .

The seminar brought together approximately 200 chief executive
officers (CEOs), chief finance officers (CFOs), human resources
directors and managers from domestic and multinational corporations.

A similar seminar will be held in the southern largest economic hub of Ho Chi Minh City on October 21./.

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Seminar discusses strategies for business growth held in Hanoi

Recruiting firm Navigos Group and the Associations of Chartered Certified Accountants (ACCA) Tuesday held a seminar discussing strategies for business growth in Melia Hotel, Hanoi.

The event, joined by 200 CEOs, CFOs, human resource managers from domestic and multinational companies and guest speakers from ANZ, Aon, Ford Vietnam and the hosts, focuses on the importance of qualified accounting/finance professionals to an organization’s financial management, and the greater strategic role being assumed by accounting/finance professionals.

According to recent research carried out by Navigos Group, accounting/finance ranked third amongst the top five functions with the highest demand for executive positions during the first three quarters of 2010.

Of the total demand for accounting/finance manpower, 25 percent was for finance managers and directors, 4 percent for finance controllers and demand for chief accountants and accountants was a substantial 38 percent and 33 percent respectively.

When segmented by industry requirements, the research revealed that demand for accounting/finance manpower was highest in the banking/finance sector at 46 percent, followed by 32 percent in trading/services and 22 percent in manufacturing/engineering/construction.

“The most recent monetary downturn was witness to the growing influence and control that CFOs and finance leaders have in guiding businesses through troubled times,” Nguyen Thi Van Anh, Managing Director of Navigos Group, said.

“No longer just bookkeepers for their firms, accounting and finance professionals are regarded as business partners, skilled in areas of divesting and restructuring businesses, developing financial models and analyzing financial forecasts, as well as developing back office transaction processes that support cash flow and drive efficiencies in so many areas,” she added.

“Changes in the roles of professional accountants and the finance function itself are partly a consequence of the downturn, and partly an outcome of a growing recognition of the value that the finance function and professional accountants can add to an organization,” Le Thi Hong Len, Country Manager of ACCA Vietnam, said.

ACCA found in its March survey in 105 countries that nearly 70 percent of respondents considered it very important for organizations to have a formal program to develop the best financial talent and 75 percent suggested that talent management was an important component in addressing financial skills shortages prevalent in many organizations.

The ACCA survey also indicated that 76 percent of respondents believed the primary objective of a talent management program is to retain key staff, while 60 percent felt another important objective is to attract and recruit candidates with promising potential.

“Since late 2008, the recession has provided the finance function with an unparalleled opportunity to shape and influence business. However, this opportunity can only be grasped if organizations and finance leaders invest in the skills and capabilities required to develop, manage and protect the integrity of these vital functions,” Reza Ali, Head of Business Development, Emerging Markets, Asia, said.

“Talent management practices for finance professionals need further development and must include elements for talent identification, development, deployment and retention,” he added.

In a related survey conducted by Navigos Group in September 2010, 41 percent of the more than 3,000 polled said that a poor work environment is the number one reason why employees leave a company. Unprofessional line-managers and inadequate remuneration packages were the following reasons with 37 percent and 22 percent, respectively.

Conversely, another Navigos Group survey revealed that 48 percent of respondents ranked development opportunities as the most important criteria for accepting a job offer and employer brand was regarded as the second most determining factor with 30 percent of the vote.

The combined results of these surveys point towards a strong confidence in the ability of a talent management program to contribute significantly to long term organizational growth and development.

Consensus amongst many in attendance is that the seminar provided an excellent opportunity for panelists and members of the audience to exchange information, ideas, and experiences across a broad spectrum of industries.

So, each must determine the role accounting/finance talent will play in their organization and how best to implement a talent management program that will enable them to find the right fit, as well as develop and retain the talent that will consistently contribute to organizational objectives.

A second seminar on the same topic, “Accounting/Finance Talent in 2010 – the Foundation for Growth”, will be held Thursday at the New World Hotel in Ho Chi Minh City with the participation of more than 200 client guests.

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Seminar discusses business strategies held in Hanoi

Recruiting firm Navigos Group and the Associations of Chartered Certified Accountants (ACCA) Tuesday held a seminar discussing strategies for business growth in Melia Hotel, Hanoi.

The event, joined by 200 CEOs, CFOs, human resource managers from domestic and multinational companies and guest speakers from ANZ, Aon, Ford Vietnam and the hosts, focuses on the importance of qualified accounting/finance professionals to an organization’s financial management, and the greater strategic role being assumed by accounting/finance professionals.

According to recent research carried out by Navigos Group, accounting/finance ranked third amongst the top five functions with the highest demand for executive positions during the first three quarters of 2010.

Of the total demand for accounting/finance manpower, 25 percent was for finance managers and directors, 4 percent for finance controllers and demand for chief accountants and accountants was a substantial 38 percent and 33 percent respectively.

When segmented by industry requirements, the research revealed that demand for accounting/finance manpower was highest in the banking/finance sector at 46 percent, followed by 32 percent in trading/services and 22 percent in manufacturing/engineering/construction.

“The most recent monetary downturn was witness to the growing influence and control that CFOs and finance leaders have in guiding businesses through troubled times,” Nguyen Thi Van Anh, Managing Director of Navigos Group, said.

“No longer just bookkeepers for their firms, accounting and finance professionals are regarded as business partners, skilled in areas of divesting and restructuring businesses, developing financial models and analyzing financial forecasts, as well as developing back office transaction processes that support cash flow and drive efficiencies in so many areas,” she added.

“Changes in the roles of professional accountants and the finance function itself are partly a consequence of the downturn, and partly an outcome of a growing recognition of the value that the finance function and professional accountants can add to an organization,” Le Thi Hong Len, Country Manager of ACCA Vietnam, said.

ACCA found in its March survey in 105 countries that nearly 70 percent of respondents considered it very important for organizations to have a formal program to develop the best financial talent and 75 percent suggested that talent management was an important component in addressing financial skills shortages prevalent in many organizations.

The ACCA survey also indicated that 76 percent of respondents believed the primary objective of a talent management program is to retain key staff, while 60 percent felt another important objective is to attract and recruit candidates with promising potential.

“Since late 2008, the recession has provided the finance function with an unparalleled opportunity to shape and influence business. However, this opportunity can only be grasped if organizations and finance leaders invest in the skills and capabilities required to develop, manage and protect the integrity of these vital functions,” Reza Ali, Head of Business Development, Emerging Markets, Asia, said.

“Talent management practices for finance professionals need further development and must include elements for talent identification, development, deployment and retention,” he added.

In a related survey conducted by Navigos Group in September 2010, 41 percent of the more than 3,000 polled said that a poor work environment is the number one reason why employees leave a company. Unprofessional line-managers and inadequate remuneration packages were the following reasons with 37 percent and 22 percent, respectively.

Conversely, another Navigos Group survey revealed that 48 percent of respondents ranked development opportunities as the most important criteria for accepting a job offer and employer brand was regarded as the second most determining factor with 30 percent of the vote.

The combined results of these surveys point towards a strong confidence in the ability of a talent management program to contribute significantly to long term organizational growth and development.

Consensus amongst many in attendance is that the seminar provided an excellent opportunity for panelists and members of the audience to exchange information, ideas, and experiences across a broad spectrum of industries.

So, each must determine the role accounting/finance talent will play in their organization and how best to implement a talent management program that will enable them to find the right fit, as well as develop and retain the talent that will consistently contribute to organizational objectives.

A second seminar on the same topic, “Accounting/Finance Talent in 2010 – the Foundation for Growth”, will be held Thursday at the New World Hotel in Ho Chi Minh City with the participation of more than 200 client guests.

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Regulation Key To Sustainable Development

Before Dcree 101 took effect on december 20, 2009, State-run commercial banks such as VCB, Incombank and BIDV have resolved to turn into regional or even global finance-banking giants since 2006.

Vietnam must hammer out specific regulations on the establishment and operation of conglomerates in finance and banking to ensure these sectors achieve sustainable development

Although the State Bank Law and the Credit Institution Law have been revised twice, they have yet to mention finance-banking groups. Most sub-law documents have not dealt with these institutions, either. The only exception is Decree 101/2009/ND-CP, dated November 5, 2009, on the “pilot establishment, organization, operation and management of State-owned groups.” Article 3, Item 11 of this decree lists “finance, banking and insurance” among sectors where such pilot establishment takes place.

However, in reality, before Decree 101 took effect on December 20, 2009, commercial banks, especially State-run ones such as VCB, Incombank and BIDV, have resolved to turn into regional or even global finance-banking giants since 2006. If the global financial crisis had not erupted, some local finance-banking groups would be in operation now, at least on a trial basis.

As part of their efforts to realize this vision, some State-run commercial banks have ventured into non-core sectors and given birth to insurance, securities, asset management, realty and construction firms, as well as affiliates in such industries as health care or sports. This approach is somewhat questionable as the main pillars of a finance-banking group are finance, insurance, securities and investment.

Article 32 of the Credit Institution Law holds that credit institutions are allowed to set up, with their own equity, legal entities which have independent accounting records and operate in finance, banking, insurance, asset management and so on. In other words, it is through the pillars of banking, finance, securities and investment that commercial banks use their own capital to set up subsidiaries.

Several commercial joint-stock banks have transformed themselves into groups such as ACB Group or Sacombank Group. State-run commercial banks are capable of doing so, too, but must await official recognition by the Government first. For a start, these State-run financial intermediaries may want to capitalize on the provisions of Decree 101.

The lack of specific regulations on finance-banking groups may hamper the sustainable development of banks once these financial intermediaries turn into groups. In particular, restrictions on the extent to which banks can enter non-core fields of endeavor are vital for sheltering these credit institutions from the problems currently gripping Vinashin.

Currently, risk-taking behavior is widespread among commercial banks. Meanwhile, laws and sub-law documents have yet to offer provisions on the establishment, organization, operation and management of finance-banking groups, private or otherwise.

It is time for the State Bank of Vietnam to take the initiative to fill this gap and, in so doing, foster sustainable development in Vietnam’s finance-banking sector in the post-crisis period. Only then can Vietnam brace itself for the proliferation of finance-banking groups in the future. It is also important to avoid blanket bans on multi-sector and giant entities such as conglomerates, which, like gold trading floors and the likes, are rather difficult to manage.

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Business tycoon sues province for taking back leased villas

One of Vietnam’s richest businessmen on Monday filed a lawsuit against the Finance Department in Lam Dong Province for taking back 11 villas that he said his company had leased to build a resort.

Doan Nguyen Duc, chairman of Hoang Anh Gia Lai Group, told local news website VnExpress that he was “shocked” when the authorities of the central highlands province made the decision.

“It’s funny because the 11 villas were taken back while my down payments for land clearance so far have been ignored,” he said.

According to Hoang Anh Gia Lai, the company began to pursue a plan to develop 20 old villas in the resort town of Da Lat into a four-star resort in 2002. It signed a contract with Lam Dong Province Finance Department to lease the properties, with a total area of nearly 46,000 square meters, for 50 years.

Fifteen of the villas were transferred to the company and construction work was finished on eight of them, Duc said.

The province, however, decided to take back 11 of the villas in September last year and assigned them to another company in Ho Chi Minh City.

Lawyer Le Thi Hoai Giang, legal representative for Hoang Anh Gia Lai, said the company demands that the Lam Dong Province's Finance Department fulfills its contract. In case the contract is terminated by the department, all financial obligations have to be paid, she said.

Director of the Finance Department, Nguyen Van Yen, told VnExpress that the decision to take back the villas was made “in accordance with legal regulations.”

Yen said the resort project was delayed and the conditions of the villas had deteriorated.

The villas were supposed to be put into business no later than 12 months after their transfer. However, some of them had been left untouched for nearly three years, Yen said.

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Business tycoon sues province for taking back leased villas

One of Vietnam’s richest businessmen on Monday filed a lawsuit against the Finance Department in Lam Dong Province for taking back 11 villas that he said his company had leased to build a resort.

Doan Nguyen Duc, chairman of Hoang Anh Gia Lai Group, told local news website VnExpress that he was “shocked” when the authorities of the central highlands province made the decision.

“It’s funny because the 11 villas were taken back while my down payments for land clearance so far have been ignored,” he said.

According to Hoang Anh Gia Lai, the company began to pursue a plan to develop 20 old villas in the resort town of Da Lat into a four-star resort in 2002. It signed a contract with Lam Dong Province Finance Department to lease the properties, with a total area of nearly 46,000 square meters, for 50 years.

Fifteen of the villas were transferred to the company and construction work was finished on eight of them, Duc said.

The province, however, decided to take back 11 of the villas in September last year and assigned them to another company in Ho Chi Minh City.

Lawyer Le Thi Hoai Giang, legal representative for Hoang Anh Gia Lai, said the company demands that the Lam Dong Province's Finance Department fulfills its contract. In case the contract is terminated by the department, all financial obligations have to be paid, she said.

Director of the Finance Department, Nguyen Van Yen, told VnExpress that the decision to take back the villas was made “in accordance with legal regulations.”

Yen said the resort project was delayed and the conditions of the villas had deteriorated.

The villas were supposed to be put into business no later than 12 months after their transfer. However, some of them had been left untouched for nearly three years, Yen said.

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Official rejects VN’s violations of WTO price policy

The Finance Ministry’s Circular 122/2010/TT-BTC does not break any of
Vietnam's price commitments to the World Trade Organisation (WTO),
said an official.

Director of the ministry’s Price
Management Department Nguyen Tien Thoa said the document strictly
adheres to the Government’s Decree 75/2008/ND-CP of June 9, 2008, which
defines milk as a commodity whose prices should be stabilised. It amends
and supplements earlier Circular 104 in order to prevent unreasonable
price hike of imported powdered milk.

The Finance Ministry did not promulgate any new policy, Thoa stressed.

Circular 122, which will take effect as of October 1, stipulates that
importers and traders must register and report prices of powdered milk
for under six-year-old children to the price management agency.

The Finance Ministry’s explanation followed feedbacks from several
foreign-invested milk trading companies and the Ambassadors of
Australia, Canada , New Zealand , the US and the European Union.

In a common letter addressed to the ministry, the
ambassadors said the new price control mechanism would affect Vietnam
’s efforts towards a market economy as well as its performance of WTO
regulations.

It could also hamper the attraction of foreign investment and development of the labour market, the diplomats said./.

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Vietnam borrows US$51 million from South Korea

Vietnamese Deputy Minister of Finance Tran Xuan Ha (R) signs the loan agreements with Ki-Sub Nam, vice chairman of the Export-Import Bank of Korea - Photo: Courtesy of the Finance Ministry

HCMC – The Ministry of Finance on Tuesday clinched three agreements to borrow US$51 million in official development assistance (ODA) loans from South Korea to finance hospital and school projects.

The pacts were signed by Deputy Minister of Finance Tran Xuan Ha and Ki-Sub Nam, vice chairman of the Export-Import Bank of Korea.

South Korea through its Economic Development Cooperation Fund (EDCF) will provide US$45 million for a hospital project in the northern province of Yen Bai and US$3 million for each of two projects for equipping vocational schools in the north-central provinces of Ha Tinh and Quang Binh.

According to the Ministry of Finance, South Korea is one of Vietnam’s biggest donors. Many projects funded by South Korea include National Highway 18 (Chi Linh-Bieu Nghi section), Thien Tan 1 water plant in Dong Nai Province, a vaccine production project and a solid waste treatment plant in Haiphong City.

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