030118Intellasia Finance Vietnam - hkbav.org .bonds, government-guaranteed bonds, and local...

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Transcript of 030118Intellasia Finance Vietnam - hkbav.org .bonds, government-guaranteed bonds, and local...

  • 3 January 2018

    finance & business news

    FINANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Reference exchange rate goes down by 10 VND 2Interest rate in home credit programme kept at 5pct 2HCM City tightens controls on crypto-currencies 2State Treasury enters bond market as special investor 2Short-term capital limit for medium and long-term loans o

    fficially adjusted 4Is there a third investment wave in Vietnam banks? 4Why cannot e-wallet develop despite much potential? 5Banks' profit skyrockets due to credit growth 6StoxPlus to organise credit risk conference 7Banks lead market upturn in 2018's first trading day 7Foreign investors pour hundreds of US dollars into bank stocks 8Where do three big banks get money from to raise capital

    by 1.8-2 times? 10Viet Capital Bank provides credit package to Nam An Hoa project 12Moody assigns first-time rating to LienVietPostBank 12HSBC Vietnam scores hat-trick at The Asset's Triple A Awards 13Eximbank sells over 1.3 million shares of Sacombank 14Vietcombank's total assets exceed VND1 quadrillion 14Government Inspectorate calls attention to multiple

    violations at Vietcombank 15Top 10 key events that defined Vietnam in 2017 15Inflation predicted to stay below 4pct in 2018: Ministry 18PMI rises to 52.5 in last month 19HCM City builds on 2017's remarkable achievements 19HCM City aims for 8.3pct-8.5pct GRDP growth in 2018 20New trade, auto rules to usher positive changes 20Vietnam breaks export growth record in 2017 22Vietnamese exports enjoy stellar growth 23Export goods spotlights 2017 24Vietnam gains record in seafood export value in 2017 25Fruit, vegetables become big foreign currency earner 26HCM City exports earn $35b in 2017 27euro 5-standard diesel, euro 4 RON 95 petrol hit market 27Varying levels of enthusiasm greet bio-fuel E5 roll-out 28HCM City trade dept offers online service 28HCM City to focus on land, finance policies this year 29

    A modest end to 2017 transactions sets up big for 2018 29Vietnam government seeks to cut half of business rules in 2018 31Foreign firms stream to Vietnam 31Processing, manufacturing firms expect better business in

    2018 Q1 32Foreign giants step up franchising efforts in Vietnam 33Trio of manufacturers assist in 'made-in-Vietnam auto dream' 34HCM City plans more safe farm produce markets 35Real estate association claims HCM City won't face real

    estate bubble 36Chu Lai EZ draws record $1.4b in 2017 36Phu Yen pours VND2.12 trillion into aquaculture 37Long An to increase aquaculture area in 2018 37

    BIZ NEWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37Business Briefs 03 January, 2018 37Shares open on positive note in 2018 38All indexes gain ground 38Expert: Consumer goods, transport stocks to grow in 2018 39What's behind the strong performance of the stock market

    in 2017? 40559 million shares to be auctioned at HNX 40Food safety board wants to take over pork supervision job 41Navigational channel upgrade high on priority list 41Tour guides complain about phone and carrier requirements 42Vietnam leads region for ratio of female business leaders 43Can Tho launches electric car service for tourists 43Saigonese turn to homegrown veggies for meals, Tet gifts 44Hanoi approves new 'most expensive road on the planet' 45Vietnam Railway to pilot free meal service 46Tollgate to be dismantled to ease traffic congestion at

    Saigon River Tunnel 47First Swiss-standard watch warranty centre opens 47Uber sues HCM City tax dept 47Russian firm helps Vietnam build mini hydropower plants 48Sojitz Corporation targets Vung Tau Airport relocation project 48ZOCV and POSCO sign over recycling plant 49Why Vinhomes Central Park attracts foreigners? 49Firms showcase goods for Tet in Quang Tri 50

    FINANCEReference exchange rate goes down by 10 VND


    The State Bank of Vietnam slashed its reference VND/USD exchange rate by 10 VND to 22,405 VND/USD on the morning of January 3.With the current/- 3 percent VND/USD trading band, the ceiling exchange rate is 23,068 VND per USD and the floor rate is 21,732 VND per USD.Accordingly, major commercial banks raised their rates.Vietcombank and BIDV offered the same rates with 22,675 VND (buying) and 22,745 VND (selling), per USD, up by 10 VND from the morning of the day earlier.Vietinbank posted 22,675 VND (buying), and 22,744 VND (selling), per USD, up by 5


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    Vietnam finance & business 3 January 2018

    VND from the day ago.https://en.vietnamplus.vn/reference-exchange-rate-goes-down-by-10-vnd/124239.vnp

    Interest rate in home credit programme kept at 5pct


    The State Bank of Vietnam (SBV) has issued a decision ordering commercial banks to keep the interest rate in the VND30 trillion preferential credit programme for low-in-come homebuyers at 5 percent in 2018.According to Decision No.2735, the 5 percent rate is the same as the preferential rate applicable to this programme last year and loans disbursed by December 31, 2016.Regarding loans disbursed after December 31, 2016, clients are subject to commercial interest rates in line with their contracts with banks.The central bank is mandated to set the interest rate for this home credit programme on an annual basis in the final month of year.The interest rate for this programme was 6 percent in 2013. SBV deputy governor Nguyen Dong Tien on January 2, 2014 singed Decision No.21 cutting the rate to 5 per-cent and this rate has been kept unchanged until this year, according to Tuoi Tre news-paper.english.thesaigontimes.vn/57807/Interest-rate-in-home-credit-programme-kept-at-5.html

    HCM City tightens controls on crypto-currencies


    The central bank's HCM City branch and the city police will join hands to prevent the use of crypto-currencies for payment in the city.Any form of payment using digital currencies like Bitcoin, which are banned in Viet-nam, will face severe sanctions.The city's departments of industry-trade, tourism and education-training are respon-sible for supervising service providers in their respective fields with regard to pay-ments by virtual money.According to the HCM City government, Bitcoin and other virtual currencies are not legal tender in Vietnam. Therefore, using crypto-currencies for payments is neither al-lowed nor protected by law. Credit institutions and service suppliers are banned from using digital currencies for payment.The prime minister has assigned the central bank and the Ministry of Justice to study and propose regulations on managing the use of virtual assets, and virtual currencies. They must report to the prime minister next August.Though there are no official statistics about the Bitcoin market, experts estimate daily Bitcoin transactions may amount to dozens of millions of US dollars.english.thesaigontimes.vn/57795/HCM City-tightens-controls-on-crypto-curren-cies.html

    State Treasury enters bond market as special investor


    In order to cure the sluggishness of the government bond market, Vietnam State Treas-ury (VST) has decided to join as a secondary investor. Tran Thi Hue, director of the De-partment of Treasury Management, spoke with VIR's Huu Hoe about the state office's specific plans for the upcoming participation as well as expectations for the new course of the government bond market in 2018.Other than being the main issuer on the primary market of government bonds, it is said that Vietnam State Treasury (VST) is planning to become a secondary investor in this market. How has VST prepared for this new function?Decree No.24/2016/ND-CP on national treasury management has, for the first time, al-lowed temporarily idle funds to be used to repurchase government bonds.In more details, temporarily idle funds will be used in the following order of priority: advancing the central budget, advancing the provincial budget, be deposited at com-mercial banks with high safety ranking from the State Bank of Vietnam, and repur-chasing government bonds. Based on this juridical mechanism, for the first time, VST is allowed to participate in the government bond market as a secondary investor.

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    Vietnam finance & business 3 January 2018

    The decree was enacted on January 1, 2017, but in 2017, VST's participation was post-poned due to complex preparation procedures, including staff training, and finalising procedures. Therefore, starting from 2018, VST will participate as a secondary investor in the government bond market.Another remark of the 2018 government bond market is the introduction of the policy for investors to lend bonds for selling purposes, satisfying the diverse demands of in-vestors, and accordingly, providing instruments for market leaders.In your opinion, how will VST's new role contribute to improving the government bond market's liquidity?As a secondary investor, the possibility of VST partaking in the government securities market depends on the availability of temporarily idle funds.While VST's participating as a secondary investor will help support market liquidity (the current transaction rate is around VND9 trillion per day), as a special member holding a significant impact on the market, VST will remain cautious before and dur-ing participation.What changes will VST see as an issuer in 2018?VST's guidelines to attract capital in 2018 will continue to closely follow the quotas as-signed by the Ministry of Finance (MoF). MoF is allocating room for issu