Exporters say loan subsidy program of little use to them

Workers fold blazers for export at a garment factory in Ho Chi Minh City.

Exporters said they do not benefit much from a government loan subsidy program since not many of them qualify for bank loans.

Speaking at a conference in Ho Chi Minh City Tuesday, Vo Truong Thanh, general director of Truong Thanh Furniture Corporation, said it is banks who have benefited from the loan subsidy program, which has helped get credit flowing again.

Truong Dinh Tuyen, a monetary advisory board member, agreed, saying that the program does not mean as much to exporters as it does to banks.

The government is using VND17 trillion (US$970 million) from an economic stimulus package to provide a 4-percent interest subsidy on loans to companies that export, import or produce essential goods.

The State Bank of Vietnam said commercial banks expect to lend companies around VND400 trillion ($23 billion) in February and March.

But exporters said some commercial banks are too cautious to lend businesses under the program.

Businesses are required to repay existing loans, including those not due yet, before they can borrow afresh at subsidized rates, Nguyen Duc Thanh, president of the Vietnam Cashew Association, said.

Few businesses qualify for a new loan while many have had to shut down due to a cash crunch, he told the conference.

Of the country’s 220 cashew processors, 85 percent are ineligible for loans under the program, Bloomberg last week quoted Thanh as saying.

Chu Van An, deputy general director of Minh Phu Seafood Company based in southern Ca Mau Province, said the loan procedures are complicated.

Banks refuse to provide loans for paying value added tax, saying the loans are only meant for working capital, he said, claiming this contradicts what the central bank told businesses.

Tran Quoc Manh, deputy chairman of the HCMC Handicraft and Wood Industry Association, said the loan subsidy program means nothing to many businesses since they already have unpaid loans and no longer have assets for collateral.

Nguyen Van Tan, director of the Hanoi-based Thong Tan Foodstuffs Trade and Processing Company, told Tuoi Tre newspaper his company is unable to apply for new loans because all its assets are already pledged.

It wants to repay the loan but has no money since customers have yet to pay for shipments made before Tet (the lunar New Year) at the end of last January.

Around 20 percent of small and medium-sized enterprises in Vietnam are facing critical cash and management problems and are likely to go bankrupt without financial support, Tien Phong newspaper Wednesday quoted Cao Sy Kiem, president of the Vietnam Association for small- and medium-sized enterprises (SMEs), as saying.

But many company executives at the meeting said that larger businesses also need cheap loans.

Thanh of Truong Thanh Furniture Corporation suggested that the loan subsidy program should be expanded to include more companies. The company, based in southern Binh Duong Province, now targets only SMEs with not more than VND20 billion in capital and 500 workers.

He said SMEs do not earn as much from exports or create as many jobs as large businesses.

To help exporters

Deputy Minister of Industry and Trade Nguyen Thanh Bien told delegates that his ministry would ask the government to tweak its stimulus plan to benefit exporters more.

For instance, businesses with effective new projects should be provided credit to repay their old loans, he said.

Thanh of the Vietnam Cashew Association said most exporters have been hit hard by the global downturn and need government support to promote their products and look for new markets.

Exports fell 5.1 percent year on year to $8.02 billion in the first two months, according to the General Statistics Office.

The government has forecast export growth to slow down to 13 percent this year from a scorching 29.5 percent in 2008 because of the economic downturn in important markets like the US, Europe and Japan. Exports were worth $62.9 billion last year.

The government should also depreciate the dong to support exporters, Tuyen said.

The government is considering how to devalue the dong without stimulating speculation, Tuyen, who is also a former trade minister, told companies demanding a weaker dong at the meeting.

The central bank devalued the currency by 3 percent on December 25. The dollar can trade within a 3 percent band on either side of a rate fixed daily against the dong.

PROGRAM TO INCLUDE FINANCE FIRMS The government has included some non-bank finance companies in its loan subsidy program after they warned they may lose customers to banks. The program, which was available to only commercial banks and people’s credit funds, will now be extended to include non-bank finance companies — except those providing consumer loans and credit cards and those with bad debts exceeding 5 percent — according to a statement posted on the government’s website on Tuesday. The Vietnam Banks Association had asked the government Monday to include non-bank financial firms. The government targets economic growth of at least 6.5 percent this year, compared with last year’s 6.2 percent, the slowest pace in nine years. It said it would spend VND300 trillion (US$17 billion) this year to halt a slowdown in economic growth amid the global financial crisis. The amount, almost a quarter of the country’s $71 billion GDP, would be used to develop infrastructure, spur exports and fund other social development projects.

Source: TN, Agencies (With additional reporting by Minh Quang)

Stimulus package for tourism sector

LookAtVietnam – Since the beginning of this year, Vietnam has been implementing the stimulus package “Impressive Vietnam” to attract more tourists to the country.  Under this programme, tourists will enjoy a 30-50 percent discount for tours nationwide.

Positive signs

There have been positive signs for the tourism sector this year during the Lunar New Year festival. Vietnam welcomed many international visitors from ASEAN member countries to famous World Heritage sites such as Ha Long Bay, Hue and the ancient city of Hoi An.

Dr Tran Huu Son, Director of the Lao Cai Department of Culture, Sports and Tourism said that the number of visitors, especially Chinese tourists to the province has increased sharply in the first months of this year. He added that the province is creating a promotional package to attract more tourists, especially Chinese visitors.

There has also been a rise in the number of international visitors to Hanoi. The five-star hotel, Sheraton Hanoi, has cooperated with travel agencies to offer all-inclusive tours to visitors coming from Australia, the Republic of Korea, American and Europe. Many five-star hotels have special programmes including Meetings, Incentives, Conferences and Exhibitions (MICE) package tours for customers. Do Khanh Tra, director of foreign relations at the InterContinental Hanoi said that the occupation rate amounted to 98 percent thanks to a special discount for those who stay three nights or more.

Nguyen Van My, director of the Lua Viet Company said Vietnam Airlines has recently reduced its airfares for tourists to the central and northern regions and his company has reduced the cost for their tours to these destinations by 35 percent.

During March (the Month of Youth), the company is arranging for students and other young people to visit Cambodia at a preferential price of only US$119.

However, the deputy minister of Culture, Sports and Tourism Tran Chien Thang said that “We should not offer tours at a huge discount. We focus on target markets and tourists but should not force travel agencies to reduce prices.

Challenges

Under the “Impressive Vietnam” promotion campaign the tourism industry will have 99 tours discounted by 30-50 percent from now until September. However, after launching the promotional campaign, the Vietnam Administration of Tourism (VAT) has not negotiated with the transport sector to reduce travel costs, or has yet to create favourable conditions for travel agents to promote their marketing activities.

It will take at least another two months to put discounted package tours in place, but few tourists from Europe like to come to Asia for their summer vacation in June.  They prefer to travel to the region in October and the promotional programme will be over.

Another snag is the failure of travel agents and service providers to coordinate in terms of transportation and tour guidance. Under the programme, there will be a 30-50 percent discount for hotel rooms as well as airfares for both international and domestic flights.

Vietnam has launched its promotional programme at a time when Thailand and many other countries in the region have done the same. According to Luu Duc Ke, General Director of Hanoitourist, the late timing and lack of co-ordination between local outfits have reduced the competitiveness of tourism industry.

In the first two months of this year, Vietnam welcomed about 688,000 tourists, 10.3 percent lower than the same period last year. If the country fails to overcome the challenges ahead, its tourist industry will be not strong enough to compete against its foreign rivals in the long-run.

VietNamNet/VOV

New trivia show pumps up locals for 1000-year anniversary

LookAtVietnam – Director Nguyen Huu Phan will launch his new production, a reality game show called Ha Noi’s Old Quarter, to celebrate the 1,000th anniversary of the foundation of Thang Long-Ha Noi in 2010.

Gate keepers: A scene of the O Quan Chuong gate in the old quarter of Ha Noi. A reality game show called Ha Noi’s Old Quarter will be held to celebrate the 1,000th anniversary of the foundation of Thang Long-Ha Noi.

The first show will air on October 10 on Viet Nam Television’s channel 3 and channel 4. “I hope the show will popularise and promote knowledge and good sentiments towards the capital city of Ha Noi,” says director Phan.

The show is being produced by the Ha Noi Communications and Investment Joint-Stock Company with support from the Office of the National Steering Board of the 1,000th anniversary of Thang Long-Ha Noi and the Viet Nam Advertisement Association.

“We were born in Ha Noi and we want to make a contribution to the great ceremony of the 1,000th year of Thang Long-Ha Noi,” says the director. He also hopes the show will draw all kinds of television audiences, including Vietnamese overseas and foreigners who are living, studying and working in Viet Nam.

The show will have three rounds: elimination, semi-final and final. In every round, each team must participate in two parts: outdoor and indoor. This is the biggest difference between Ha Noi’s Old Quarter and other shows, says the director.

In the outdoor part, the game will take place on old streets and at handicraft villages, historical monuments and cultural and artistic events in Ha Noi. A director, cameraman, and MC will accompany the teams on the streets to film their struggles and their solutions.

This part of the show will be screened in the studio for the jury to evaluate and the live audience will watch the indoor section of the show, which will include a question and answer section and an introduction of a piece of Ha Noi art complete with ideas to preserve 1,000 years of Thang Long-Ha Noi culture. The two parts will be edited and broadcast on TV.

“The show will introduce Ha Noi in the current period of development and integration. It will also give a great deal of knowledge about the history, society and culture of Ha Noi,” says Nguyen Manh Cuong, head of the Office of the National Steering Board of the 1,000th anniversary of Thang Long-Ha Noi.

Ha Noi researcher Nguyen Vinh Phuc, a member of the consulting board, says he supports the show. “The show will be very interesting for young people. Everyone will want to take part in it because of its originality, enthusiasm, beautiful background and discovery. It will make us reminisce about glorious times in Ha Noi’s history,” Phuc says.

There will be 53 hour-long shows, broadcast every week. The final show will be broadcast live on a large stage with a spectacular lighting system, designed to make a deep impression on Ha Noi, says the director.

The background and two sides of the stage will be designed to reproduce a picture of Ha Noi’s old quarter, according to the street style of painter Bui Xuan Phai. This will include images of the Ha Noi Flagstaff, Mot Cot (One Pillar) Pagoda, Hoan Kiem Lake and West Lake.

On the stage will be objects commonly found in the capital city: an iron lamp-post, hoa sua tree, public waterspout and pho peddler. The teams will dress in clothes common before the war. “The contestants will be transported to the stage by tram, a traditional means of transport in Ha Noi. The tram will be made as real as possible,” says the director.

The show’s board of consultants includes professional researchers in culture, history, Ha Noi and experts in geography, environmental resources, city management, sport, tourism and national artists.

The final round of the show and the awards ceremony will take place in October 2010 to mark the 1,000th anniversary of Thang Long-Ha Noi.

VietNamNet/Viet Nam News

Vietnam down one place in FIFA‘s rankings

In the FIFA rankings for men’s team in March, Vietnam was placed 136 after Thailand (118) and Singapore (132) in Southeast Asia.

LookAtVietnam – In the FIFA rankings for men’s team in March, Vietnam was placed 136 after Thailand (118) and Singapore (132) in Southeast Asia.

FIFA’s announcement on March 12 was based on the fact that Vietnam has not played any matches recently.  

The top 5 Asian teams are Australia, Japan, Iran, South Korea and Saudi Arabia.

The Spanish team is still on top as they defeated Capello’s England team 2-0 in a friendly match on February 12 making them king of the men’s football rankings for the 3^rd consecutive month.

The Vietnam Football Federation (VFF) will have their first squad training in May in Hanoi. Chief coach Henrique Calisto will use about 22 players for 2 international friendly matches (one in Vietnam and the other against Bahrain on May 31).

The Vietnamese U-23 will be gathered on September 4. They will have a training session in the Republic of Korea on September 20-23. Then the U-23 will play in the VFF Cup in November before leaving for Laos to join the 25^th SEA Games at the beginning of December.

VietNamNet/VOV

Malaysian King welcomed in Hanoi

LookAtVietnam – President Nguyen Minh Triet welcomed King Tuanku Mizan Zainal Abidin Ibni Al-Marhum Sultan Mahmud Al-Muktafi Billah Shah in Hanoi on March 12.

During their talks, Mr Triet reiterated Vietnam’s consistent policy of increasing cooperation with all countries in the world, especially those in Southeast Asia.

Vietnam considers Malaysia a friend and an important trade partner, said Mr Triet.

For his part, the King affirmed that Malaysia gives priority to expanding relations with Vietnam and hoped that the two sides would draw up specific cooperation programmes to deepen bilateral ties.

Both host and guest expressed their pleasure at the rapid development of bilateral ties in various areas, including politics, economics, culture, education, science and technology. They agreed that both Vietnam and Malaysia still have great potential for expanding cooperation in other areas.

Mr Triet proposed that the two countries increase the exchange of visits at all levels to develop cooperation programmes, step up the implementation process of the joint statement on the framework of comprehensive cooperation between Vietnam and Malaysia in the 21^st century and actively prepare for the 5^th session of the Inter-governmental Committee.

Vietnam is creating a favourable investment environment to attract more foreign businesses, including those from Malaysia, said Mr Triet.

He pointed to the fact that Malaysia now ranks second among foreign investors in the country with 302 investment projects capitalised at nearly US$18 billion. It is also Vietnam’s 9^th largest trade partner with two-way trade last year reaching US$4.5 billion.

Mr Triet proposed that the two countries soon sign an agreement to mutually recognise goods quarantine to facilitate import-export activities. He also said that both countries should expand cooperation in health care, education, science, technology and labour export, as well as national defence and the fight against crime.

The president asked Malaysia to support Vietnamese guest workers in the context of the global financial meltdown.

The King confirmed that Malaysia is willing to receive Vietnamese guest workers and trainees, saying that approximately 110,000 Vietnamese nationals are working in Malaysia will help cement the friendship between the two nations.

In the evening, President Triet gave a banquet in honour of the Malaysian King and Queen.

The same day, Party General Secretary Nong Duc Manh received the Malaysian King who briefed his host on the outcome of his talks with President Triet and praised Vietnam’s great achievements during the Doi Moi (Renewal) and international economic integration process.

He said with the agreements reached during his visit, relations of friendship and comprehensive cooperation between Malaysia and Vietnam will continue to develop in the interests of the two nations and for peace, cooperation and development in the region and the rest of the world.

For his part, Mr Manh affirmed that Vietnam attaches importance to strengthening ties of friendship and comprehensive cooperation with Malaysia.

He thanked Malaysia for supporting Vietnam’s admission to the World Trade Organisation in 2007 and its election as a non-permanent member of the United Nations Security Council in the 2008-2009 period.

He expressed his hope that both countries will take specific measures to effectively implement their joint statement on the framework of comprehensive cooperation in the 21^st century so as to bring bilateral ties to new heights.

The King arrived in Hanoi on March 12 for a four-day visit to Vietnam at the invitation of President Nguyen Minh Triet.

VietNamNet/VOV

New prospects for long-term cooperation with Qatar, Kuwait

LookAtVietnam - PM Nguyen Tan Dung returned to Hanoi on March 12, concluding his first official visits to Qatar and Kuwait. The trip not only strengthened the friendship between Vietnam and the two Gulf nations but also laid a firm foundation for increasing bilateral cooperation in investment, trade, energy, food and labour.

Qatar and Kuwait have built on their traditional friendship with Vietnam. The Qatari Emir joined demonstrations against the Vietnam War while Kuwait was the first Gulf nation to establish diplomatic ties with Vietnam in 1976. During meetings with Mr Dung, the Emirs and PMs of Qatar and Kuwait expressed their admiration for the late President Ho Chi Minh, legendary General Vo Nguyen Giap and the Vietnamese people in general during their past struggle for national liberation.

Besides diplomatic formalities for the head of State, Qatari and Kuwaiti leaders welcomed Mr Dung as a close friend. The Qatari PM himself drove Mr Dung to a welcoming party while the Kuwaiti Emir invited his Vietnamese guest to review a military parade to mark his country’s 48^th National Day.

The Qatari and Kuwaiti Governments agreed to establish partnerships with Vietnam to ensure energy and food security in their respective countries. In response, Vietnam signed agreements on agricultural cooperation with Qatar and Kuwait in hopes of meeting these countries’ demand for food production.

Qatar and Kuwait also agreed to promote cooperation with Vietnam in the petrochemical industry, especially oil and gas exploration and exploitation.   

The two Gulf nations expressed their desire to boost investment and trade ties with Vietnam by signing with the Southeast Asian nation agreements on double tax avoidance and investment encouragement and protection.

Their PMs pledged to strictly implement the agreement and deals reached during Mr Dung’s visits, including the Nghi Son petrochemical refinery in Thanh Hoa province into which Kuwait will pour more than US$6 billion.

The Qatari PM agreed to allot a piece of land in the capital for the building of a trade centre to showcase Vietnamese products in the country. He also announced the start of the joint Qatar-Vietnam investment fund with an initial capitalisation of US$1 billion.

The Vietnam State Capital Investment Corporation (SCIC) also signed a cooperation agreement with the Kuwait Investment Authority (KIA). SCIC director general Tran Van Ta affirmed that the signing of the agreement will empower Qatari and Kuwaiti businesses to invest in Vietnam as both SCIC and KIA are government-level financial institutions.

Labour cooperation also took centre stage during Mr Dung’s trip. Both Qatar and Kuwait expressed their desire to increase cooperation in this field with Vietnam as both are in great need of overseas labour.

PM Dung asked the Vietnamese embassies in Qatar and Kuwait to work closely with labour export companies towards training Vietnamese workers to ensure that they get steady jobs and earn high incomes.

Together with a trip to the United Arab Emirates last month, the visits to Qatar and Kuwait are expected to offer prospects for long-term cooperation between Vietnam and countries in the Gulf region.

VietNamNet/VOV

Binh Phuoc asked to make a big leap in economic growth

LookAtVietnam – The southern border province of Binh Phuoc should fully exploit its natural resources, including land, forests, and minerals to make a breakthrough in economic development, said National Assembly Chairman Nguyen Phu Trong.

During a visit to the province on March 11-12, Mr Trong acknowledged the socio-economic achievements that the local Party, administration and people have made since Binh Phuoc was re-established in January 1997.

He analysed difficulties and challenges facing Vietnam and Binh Phuoc in 2009 and asked the province to effectively implement the Party’s resolution on agriculture, farmers and rural development as well as the Government’s measures to maintain steady economic growth and ensure social welfare.

“Along with economic development, the province should seek ways to improve local people’s physical and spiritual lives and harmoniously settle pressing social issues such as housing, employment, education, health care and environmental protection, while creating an attractive investment environment for domestic and foreign businesses,” said Mr Trong.

He expressed hope that the local Party, administration and people of different ethnic groups would fully tap their potential to develop on a par with other provinces in the southern key economic region.

He acknowledged the province’s proposals concerning the management and use of forest land, infrastructure construction and the development of rural electricity, tourism, the border economy and industrial zones.

He said the National Assembly will examine and decide key issues within the scope of authorisation and send other contents to relevant agencies.

While staying in Binh Phuoc, Mr Trong visited the families of social policy beneficiaries, ethnic groups, village chiefs and soldiers at border guard stations.

Binh Phuoc, which has a 240km long borderline with Cambodia, is home to approximately 850,000 residents of 41 ethnic groups. It is relatively rich in natural resources, land, forests and minerals.

Despite economic difficulties last year, the province still achieved a high economic growth rate of 14 percent, double the national average.

VietNamNet/VOV

Vietnam’s top badminton player faces 2-year suspension

The Badminton World Federation (BWF) has announced that Vietnam’s number-one male badminton player Tien Minh may be suspended from badminton competitions for two years.

LookAtVietnam – The Badminton World Federation (BWF) has announced that Vietnam’s number-one male badminton player Tien Minh may be suspended from badminton competitions for two years.

 

After the HCM City Badminton Federation “forgot” to register Tien Minh as Vietnam’s representative at two important badminton events in the UK and Switzerland, Vietnam’s top male player was “compensated” by being registered to take part in the Open India Badminton Tournament (March 24-29), the Super Series competition in Denmark (October 20) and in France (October 27).

 

However, since he didn’t undergo drug tests in the UK and Switzerland, Tien Minh may be suspended from badminton tournaments for two years, under the rules of the BWF.

 

Players in the world’s top 50 like Tien Minh (15^th) are responsible for declaring their living place, training site, tournaments they take part in and other information every three months to the World Anti-Doping Agency (WADA). Players who don’t declare the information three times within 18 months or declare wrong information will be suspended.

 

Tien Minh’s declaration in the first quarter 2009 said that he would participate in the tournaments in Birmingham (UK) and Basel (Switzerland).

 

The HCM City Badminton Federation has recently been criticised for not registering Tien Minh for these events, due to which he could lose up to 4,440 points, in addition to being suspended. 

It is said that since these incidents, Tien Minh has considered going to Singapore to play badminton.

VietNamNet/ANTD

When will Vietnam earn money from int’l book festivals?

Vietnamese books annually take part in several international book festivals, such as the Beijing Book Festival in China, the Moscow Book Festival in Russia, the Frankfurt Book Festival in Germany and the Havana Book Festival in Cuba.

Vietnam’s stall at the Havana Book Fair in Cuba.

 

The areas of the stalls for Vietnamese books have increased from several square metres to tens of square metres. This means that the path on which Vietnamese books are moving out to the world is widening.

 

The door opens

 

In 2005, the Vietnamese delegation at the Beijing Book Festival gathered representatives of several publishing houses. At that time, Vietnamese publishers saw the festival as an opportunity to purchase foreign book copyrights.

 

In 2007, for the first time Vietnam was named in the catalogue of the Frankfurt Book Festival. 2007 was also the first year Vietnam applied the scheme to participate in international book festivals in the 2007-2010 period.

 

With a 24sq.m stall and various book titles, Vietnam’s stall attracted many foreigners and overseas Vietnamese, who saw a new image of a renovated and developing Vietnam. One year later, also at this festival, Vietnam had a 30sq.m stand.

 

The Frankfurt Book Festival sees the participation of nearly 7,500 publishing houses from over 100 countries and territories. Getting positive signals from this festival, more Vietnamese publishing houses have sent representatives to this event.

 

In late February 2009, more than 400 Vietnamese books were displayed at the Havana Book International, the largest such event in Latin America. Foreign readers were very interested in many books like the Dai Viet Su Ky Toan Thu (Complete history record of Great Viet)) and the photo book of the Thang Long Royal Citadel. However, these books have not been translated into Spanish yet.

 

What is the next step?

 

Nguyen Xuan Thanh from the Publishing Agency under the Ministry of Culture, Sports and Tourism said big publishers often attend international book fairs to seek interesting foreign books to translate into Vietnamese. Due to limited funds, each publishing house hires very small stalls of up to 4sq.m to display some book titles. Some publishers entrust their books to overseas Vietnamese to introduce at fairs.

 

The number of Vietnamese book titles presented at international book fairs is small. Most of the books are about famous Vietnamese, Vietnamese history, law, customs and habits.

 

At international fairs, Vietnamese publishers have bought copyrights of famous foreign books to translate into Vietnamese but haven’t been able to sell books to foreign partners.

 

The benefits from international fairs are advertising a new Vietnam to the world and purchasing copyrights of foreign books to publish in Vietnam. But when will publishers be able to earn money from these fairs?

 

VietNamNet/ANTD

Obama says he supports free-market economic system

U.S. President Barack Obama said on Thursday that he supports the free market economic system, a move to seek support for his efforts to revive the ailing economy.

A man walks past the New York State Department of Labor in Bronx of New York, March 12, 2009. With layoffs spreading, the number of initial claims for jobless benefits rose last week, while the total number of people continuing to receive benefits set a record high, the government said Thursday. (Xinhua/Liu Xin)

During a meeting with CEOs and other top leaders, Obama said he wants government to right the ship and then “let private enterprise do its magic.”

“At these moments, government has stepped in not to supplant private enterprise, but to catalyze it, to create the conditions for thousands of entrepreneurs and new businesses to adapt and ultimately to thrive,” said the president.

He said his government must move quickly and aggressively on the most immediate threats to the American economy and financial stability — jobs, housing and credit.

“And that’s why we’ve already passed a recovery plan that will save and create 3.5 million jobs over the next two years, more than 90 percent of which will be located in the private sector,” he explained.

“That’s why we’ve launched a housing plan that will help responsible families lower their monthly payments, a plan that’s already helping responsible homeowners save money by refinancing their loans,” he added.

Meanwhile, Obama vowed to enact tough, common-sense regulatory reforms, which he said will prevent a crisis like the current one never happening again.

“There are going to be a series of fairly complex issues around regulation in the financial markets which we believe is necessary,” Obama told business leaders.

“But we are also very mindful we’ve got to do those regulatory reforms in a way that doesn’t strangle innovation and creativity and entrepreneurship but deals with the systemic risks that obviously we were unprepared to deal with when this latest crisis occurred,” he said.

“When I meet with the leaders of the other G-20 nations next month, I’ll ask them to join us in these actions, because in an age when financial transactions often cross borders, global coordination is essential to safeguard against future crises,” he added.

However, he also stressed his government believes the financial market reforms should not lead to a new “super-regulator.”

“We think it is very important that there is coordination, not necessarily a super regulator,” Obama said.

VietNamNet/Xinhuanet