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Increasing capital no longer bank’s 2008 priority 2008-01-13 02:17:00 Commercial banks will not consider increasing chartered capital
a top priority
in 2008 as they did in 2006 and 2007.A representative from Viet A Bank said that their institution’s plan to increase the chartered capital to VND1.3tril ($78.12mil) has been approved by the State Bank of Vietnam and State Securities Commission. However, the bank has just successfully increased its capital to VND1tril ($62.5mil) by issuing additional shares to existing shareholders (existing shareholders can buy two more shares for every share they hold).The representative revealed that the bank has wrapped up negotiations on selling stakes to two domestic strategic investors, and the deal will be made public soon.He also said that the bank plans to raise its chartered capital to VND2tril ($125mil), but this i Read more:Increasing
VND revaluation boosts exporters, busts importers 2008-01-13 02:09:00 While exporters struggle with the VND’s revaluation, importers prosper with significantly increased profits.On January 9, commercial banks quoted the exchange rate at VND15,990-15,992/US$1, down by VND82,000/US$ over the previous price level, and by 1.6% (VND263/US$.41) compared to the highest peak seen in mid August 2007Importers cheerExperts say that China once faced the same problem. However, China has been insisting on keeping the yuan at low prices in order to retain Chinese products’ global competitiveness, despite pressure from other countries.The central bank has to apply suitable measures in controlling the exchange rate, which helps curb inflation, all while encouraging exports.Director of a packing joint venture said that his company has had huge success. In August, they bor
Government sells VND1 trillion bond 2008-01-13 02:08:00 Vietnam's State Treasury plans to raise VND1 trillion (US$62 million) in a government bond auction Friday.The State Treasury will sell five-year bonds to raise VND700 billion and issue the debt on January 15 for maturity on January 15, 2013.It will also offer VND300 billion in three-year bonds with the same issuing date of January 15.Proceeds from the debt are used for major infrastructure projects such as roads, bridges and ports.At the previous auction on December 24, 2007, the State Treasury sold VND1 trillion worth of government bonds, of which the five-year debt had an annual yield 8.65 percent and on the three-year debt was 8.15 percent.Moody's upgraded the outlook for both Vietnam's foreign currency bonds and local currency bonds to positive from stable in March 2007.It assigned a B Read more:Government
SBV carries out various measures to ensure micro-balance 2008-01-13 02:07:00 In 2007, the State Bank of Vietnam (SBV) managed the exchange rate based on the principle that the Vietnam dong pegged at the correct level, bought foreign currencies at a reasonable manner in order to stabilise the exchange rate and increased the State’s foreign currency reserves to ensuremicro
-balance of the economy, said Mr Nguyen Van Giau SBV governor at a press briefing to review the bank’s work in the year 2007.Specifically, the State Bank of Vietnam widened the US dollar and Vietnam dong (US$/VND) exchange rate margin from +/-0.25% to +/-0.5% and later +/-0.75%.With regards to the stock market, the SBV continued to co-ordinate with the State Securities Commission of Vietnam to work out measures to develop the market for the long-term.The governor appreciated those commercial ba
Swiss Re becomes Vinare’s sole foreign strategic partner 2008-01-13 02:06:00 The Vietnam National Reinsurance Corporation (Vinare) has announced Swiss
Reinsurance Corporation (Swiss Re) as its sole foreign strategic shareholder with 25% stake.The two companies signed a strategic partnership agreement in Hanoi on January 7.According to Vinare CEO Trinh Quang Tuyen, Swiss Re has bought nearly 17 million shares issued by the company at a price of VND 75,000 per share.The strategic co-operation agreement is expected to improve the business capacity of Vinare and expand its operation outside the country, said Tuyen.According to Martyn Parker, Managing Director of Swiss Re. in Asia , as a strategic partner, the company will help Vinare improve management capacity and become a leader on the local financial services market.Vinare is the only reinsurance services supplier i
Vietnam's Sacombank profit soars, opens China office 2008-01-13 02:04:00 Sacombank, Vietnam
's sixth-largest bank, said it more than doubled its 2007 profit
as loans and deposits expanded strongly amid a fast-growing economy and announced it had opened its first office
in China
.Bank loans in Vietnam rose 37 percent last year as the economy grew at nearly 8.5 percent -- its fastest pace in just over a decade, after a boost given by World Trade Organisation membership.Sacombank's 2007 gross profit climbed to 1.45 trillion dong . Sacombank Chairman Dang Van Thanh said last month it aimed to raise gross profit this year to 2.5 trillion dong.Assets of the Ho Chi Minh City-based bank more than doubled to 63.48 trillion dong as deposits increased to 54.04 trillion dong, it said in a statement on Tuesday.But the bank said the unaudited results did not include those of i
Investors propose raising ceiling on foreign stake at banks 2008-01-13 02:02:00 The Vietnam Association of Financial Investors
(VAFI) has asked the Prime Minister to raise the ceiling on foreign stake in joint stock banks
from the current 30% to 35 or 37%.In its proposal sent to the PM and relevant agencies, the VAFI said the move is necessary to mobilise more capital for the securities market and the commercial banking system and make the stock market more attractive to foreign investment in terms of commodities.According to the VAFI, the current 30% limit has caused difficulties to foreign investors when they want to invest in joint stock banks as most of the banks give priority to their foreign strategic investors.In the meantime, Vietnamese joint stock banks want to have two or three foreign strategic investors to assist them in management technology.VAFI said tha Read more:propose
Dong A Bank in tie-up to distribute US insurer’s products 2008-01-13 02:01:00 Leading joint-stock bank Dong A Bank signed Thursday a memorandum of understanding with the US's ACE Insurance Company Ltd. to distribute the latter’s products through its network nationwide.The Ho Chi Minh City-based lender hopes the tie-up will also help diversify its own products, and bring in new clients.ACE, which has operations in Vietnam, offers personal accident insurance and travel insurance, among other products.Nguyen Thi Ngoc Van, deputy general director of Dong A Bank, told Thanh Nien: “ACE is well known for partnering financial institutions to distribute its insurance products.“[We hope] the deal will help us increase client satisfaction and retention.”Christopher Twomey, CEO and general director of ACE Insurance, said: “We are extremely excited to team up with such
Vietnam to limit 2008 loan growth to 30 pct-report 2008-01-13 01:58:00 Vietnam's central bank aims to limit growth in bank loans to 30 percent in 2008 after a jump of 37.8 percent last year, the official Hanoi Moi newspaper report
ed on Wednesday.Bad debt in the banking sector was cut to 2 percent of loans by the end of 2007 from 2.65 percent a year earlier, it said, citing central bank figures released at an industry meeting on Wednesday.The central bank, the State Bank of Vietnam, said it wanted to slow down lending to help ensure a sustainable pace of economic growth and to control inflation, which hit 12.63 percent in December, the highest since December 1995.In a statement issued on Tuesday, the central bank said its monetary policy this year would aim to keep exchange rates stable and help control inflation.The non-convertible Vietnamese dong eased just Read more:Vietnam
Indovina Bank 2007-12-28 05:43:00 Indovina Bank Ltd. (IVB) is Vietnam's first joint venture bank and was established on 21 November 1990, under License No. 135/GP initially granted by the State Committee for Cooperation and Investment, and then reissued under License No. 08/NHGP dated 29 October 1992, by the State Bank of Vietnam.The joint venture partners are Industrial and Commercial Bank of Vietnam (ICBV) and Cathay United Bank (CUB) in Taiwan. Indovina Bank with the Head Office in Ho Chi Minh City and branches in Hanoi, HaiPhong, CanTho, Binhduong and Dongnai has become one of the foremost financial links for foreign companies investing and doing business in Vietnam. IVB also participates actively in the economic development of Vietnam by providing credit facilities to both state owned and private enterprises in their
MK Smart Card JVC 2007-12-28 05:39:00 MK Smart
Card JVC is a World Class manufacturer of GSM SIM cards, scratch-off cards and other value added fulfillment services to the international Telco operators. Located in Free Trade Zone in Asia and equipped with a complete and large-scale production line from printing, embedding, personalization and packaging, MK smart card offers a competitive secure solution, fast turn-around and high quality GSM SIM card and scratch-off pre-paid card.MK Technology JSC is the leading provider of card total solutions and system integration for any customized applications in ID, finance, telecom, access security, insurance, retail and entertainment. MK JSC is the authorized distributor in Viet Nam for world leading solutions provider as Datacard, Gemplus, DeLaRue, Cybernet, Triton.Website:
SSC bogs down internet brokering 2007-12-21 20:15:00 As detailed by the draft regulation on online securities transactions compiled by the State Securities Commission (SSC), securities companies must get SSC approval to provide internet-based services.The draft regulation stipulates that within 45 days of receiving the application and other relevant documents to provide online transactions, the SSC must accept or reject the request. If denied, it has to release a document that outlines the reasons.Securities company representatives have expressed concern that the regulation may lead to the ‘ask-and-grant’ mechanism where securities companies pay an ‘underground fee’ to ‘lubricate’ licensing procedures.Nguyen Van Vu, Director of IT and Securities Company VnDirect, said licensed securities companies shouldn’t have to ask permissi
First foreign owned securities company makes debut 2007-12-21 20:13:00 The Republic of Korea’s Mirae Asset Securities Joint Stock Company on December 20 announced its official operation on the Vietnamese stock market.This is the first foreign invested securities company
licensed by the Vietnamese State Securities Commission that have started operation in Vietnam.The company has a total registered capital of VND 300 billion. Its head office is located at the PetroVietnam Building, No 5 Le Duan street in District 1, Ho Chi Minh City.The company is an arm of the Republic of Korea’s leading Mirae Asset financial group which invests in securities, insurance and asset management. The group’s total assets are estimated at US $123 billion. Mirae Asset shares have been listed on the RoK securities market.Source: Nhan Dan Read more:First
, makes
, debut
State Bank keeps tight lid on forex rates 2007-12-21 20:10:00 The US dollar has remained weakened internationally since September, and the Vietnamese dong, its foreign exchange rates largely pegged to the value of the greenback, has been under strong pressure to appreciate despite Government efforts to keep it in check.Economists are expressing doubts over the State
Bank of Viet Nam’s long-term ability to stabilise the dong.HSBC economist Prakriti Sofat, in a November 29 report, said, "Double digit inflation and the risk of [inflation] in the teens suggest that it’s only a matter of time before the central bank gives up its policy on dong appreciation."Yesterday, the central bank announced a daily inter-bank exchange rate of VND16,114 to the dollar, while Vietcombank was listing an exchange rate of VND16,033/16,053. By comparison, Vietcombank off Read more:keeps
, tight
Banking activities continue to blossom 2007-12-21 20:09:00 The banking sector achieved an estimated growth rate of 36.5% in capital mobilisation and 34% in loans in 2007, almost doubling the forecast figures although the growth rates are affecting inflation.According to the Vietnam Banks Association (VBA), positive changes have been seen in loan provisions which has helped support important economic sectors such as infrastructure construction, property development, export promotion and services, aquaculture, securities and consumption.Hanoi and Ho Chi Minh City are the two most active localities that capital mobilisation activities
took place in. By the end of this month, banks across Ho Chi Minh City are projected to have mobilised more than VND 442.5 trillion, a year-on-year rise of 55% and their total lending amount reached almost VND 347 trill
Disappointed short-term investors sell Vietcombank IPO rights 2007-12-21 20:07:00 Immediately after the registration performance of Vietcombank’s IPO was announced, some registered investors have offered to sell their spots.By the afternoon of December 18, investors had reportedly registered to buy 110mil Vietcombank shares, just 10% higher than the 97.5mil shares offered and far below expectations.Bui Ngoc Long, Marketing Director under IRS Securities Companies, said that on the morning of December 19, some investors offered to sell their right to join the IPO for VND1,000/option.Other sources say that price then went up that afternoon to VND7-9,000/option.Investors have been informed that the registered volume is not much higher than the offered volume and may think that the final share price will not be high; as such, short-term investors are trying to sell their r
Foreign financial institutions fare well in 2007 2007-12-21 20:05:00 Foreign-invested financial institutions and foreign bank branches in Vietnam continued with impressive result in 2007 as they recorded an 8% increase in their total assets to reach VND 215 trillion.Representatives of these institutions reported the results to the State Bank of Vietnam during their meeting in Hanoi recently.The State Bank of Vietnam said it considered foreign financial institutions as active factors to support the Vietnamese banking system to grow in a healthy and sustainable manner.It also said foreign institutions have helped foster the link between foreign investors and Vietnamese businesspeople.There are 35 branches of foreign banks, five joint venture banks, four foreign-invested financial leasing companies and two foreign-owned financial companies operating in Vietnam Read more:Foreign
Banks race to partner with securities firms 2007-12-21 20:04:00 As of February 2008, investors’ transaction accounts must be opened at commercial banks instead of securities banks which is hoped to attract more diverse business opportunities to the commercial banking sector.February 2008 is the deadline for securities companies to finish transferring their accounts to commercial banks for management. Banks are therefore racing to persuade securities companies and clients that they are the most capable to manage investors’ money.Analysts say commercial banks are attracting clients by signing cooperation agreements with securities companies. Investors who currently use a particular securities company will certainly open an account as of February at the bank which the securities company cooperates with.ACB, for example, has signed agreements with five Read more:firms
Vietnam welcomes Kuwaiti investors 2007-12-21 20:02:00 Prime Minister Nguyen Tan Dung affirmed that Vietnam
will create favourable conditions for businesses from Kuwait to invest in the Southeast Asian country.While receiving newly-accredited ambassador from Kuwait Faisal Sulaiman Fahad Al Mukhaizim in Hanoi on December 17, the PM spoke highly of the opening of the Kuwaiti embassy in Hanoi and the Kuwaiti Consul General in Ho Chi Minh City, which he said marks a milestone in the bilateral relationship.The move, he said, will help lift the relations between the two countries to a higher level and bolster their co-operation in various spheres, particularly economics, investment and labour.For his part, the Kuwaiti diplomat expressed his thanks to the government of Vietnam for supporting the opening of the Kuwaiti Embassy in Hanoi and the Kuwaiti
Vietnam has yet to embrace electronic banking 2007-12-21 19:58:00 In Vietnam
, bank cards are simply used to access cash via ATMs, but throughout the rest of the world they are used as cash alternatives between bank accounts and retailers, Vietnam is having difficulty adapting to electronic purchasing.Tran Thi Van in HCM City’s District 3 has her salary directly deposited into her account at East Asia Bank; but her account is always empty because of her modest VND2mil a month salary, only enough for basic needs. As her account balance is always at zero, she has never used other card services, such as money transferring or automatic bill pay.According to Trinh Thuong Thuc, Head of the Credit Card Business Division under Vietcombank’s HCM City Branch, payment services only bring in 25% of total card services turnover.Vietnam is a cash economy and it is Read more:embrace
, banking
Citibank Issues First Bond in Vietnamese Dong 2007-12-21 19:56:00 Citibank has launched its maiden domestic offering in the Vietnamese
debt market, the first long-term negotiable instrument to be issued in Vietnamese dong.The inaugural issue was a VND400 billion (US$22 million) floating rate issue with a tenor of two years, according to a Citibank press release.The certificate can be sold back to Citibank at each payment date after a certain holding period.“Citibank is proud to issue its maiden Vietnamese dong bond. The issue, launched on Sept. 5, adds diversity to the market. It will also help to develop the local bond market. This longer tenor instrument will offer financial institutions an opportunity to invest longer term with insurance in the local market still predominantly via the money markets,” said Charly Madan, chief for Citibank Viet Nam. Read more:First
, Citibank
, Issues
VCB Stock Auction Reheats Stock Market 2007-12-21 19:55:00 News of the Vietcombank (VCB) stock auction heated up the Ho Chi Minh City Stock
Exchange this morning. With 124 stocks gaining and only five losing, the VN-Index was pushed up 27.18 points to close at 946.78.The second consecutive day of Index increases eased investors’ anxieties. Buy orders for VCB shares surged from only 45 million shares to 110 million over yesterday, the last day for placing orders.The record volume of VCB shares offered is forecast to be quickly sold out.It is also forecast that competition in the auction will not be fierce and a vast quantities of cash recently stagnating will soon be flowing into shares again.Investors rushed to buy blue chips today. About 1.04 million Sacombank (STB) shares changed hands and went up by VND2,000. Some 948,000 Phu My Fertilizer an Read more:Auction
, Market
, Stock Market
Vietnam fund to sell VND516 bil. bond 2007-12-15 08:32:00 A Vietnam
investment fund will raise a combined VND516 billion (US$32 million) in five-year, 10-year and 15-year bonds this week to fund urban projects, the Hanoi Securities Trading Center (HASTC) said Monday. The Ho Chi Minh City Investment Fund for Urban Development would auction today a VND260 billion bond issue which will mature on December 13, 2012 and VND206 billion bond issue with maturity on December 13, 2017, HASTC said in a statement. The fund would also seek to sell VND50 billion 15-year bonds at the same auction, the exchange said. Proceeds from the debt, to be listed on the HASTC, would go to development projects in HCMC. At its last auction on November 11, the fund sold VND50 billion ($3 million) worth of 10-year bonds, a fifth of the total on offer. The debt carrie
Banks say loan regulation unfeasible 2007-12-15 08:31:00 Local lenders have said they would not be able to comply with a new regulation requiring them to cut back their securities-backed loans before the end-of-year deadline. In a July directive, the State Bank of Vietnam (SBV) ordered that commercial banks would have to reduce their securities-backed lending ratio to three percent of their total outstanding loans before 2008. “The banks are aware of the directive, which aims to stabilize the market. However, it will be difficult for us to follow the directive strictly,” said Tran Dinh Trien, head of the Vietnam Banks Association’s legal department. Trien said many association members had given loans in contracts to stock market investors before the directive was issued. The contracts were signed with specif
Vietnam bank to sell VND600 bln in bonds on Dec. 12 2007-12-15 08:30:00 State-run Vietnam
Development Bank would sell VND600 billion (US$37.2 million) worth of its 15-year bond next week, the Hanoi stock market HASTCI said. The bank would auction the debt on December 12 and issue them on December 14 for maturity on December 14, 2022, the over-the-counter exchange said in a statement Saturday. Proceeds from the issue will go to the construction of high-ways, bridges and be used for various state projects. The bank, one of Vietnam's two policy lending banks, has failed to sell any of its bonds with 10-year and 15-year maturities in the latest two auctions in November and September. In the last successful auction on July 24, the bank sold VND400 billion (US$25 million) worth of its 15-year bonds at an annual yield of 8.4 percent, after three bidders sou
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