030517Intellasia Finance Vietnam - HKBAV 2017-05-03¢  Hoa Binh businesses look for...

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Transcript of 030517Intellasia Finance Vietnam - HKBAV 2017-05-03¢  Hoa Binh businesses look for...

  • 3 May 2017

    finance & business news

    FINANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Banks still yearn for long-term capital 1 Banks simultaneously report large profits 3 Shareholders long for transparent banks 4 M&A in insurance sector still ongoing 5 The big players in the fintech market 6 Banker defends ATM fees 7 Vietcombank plans to divest from some banks 7 Vietcombank set to up capital to $1.74 billion 8 NCB to raise total assets to $4.2 billion 9 AIA delivers record new business performance for Q1 9 Moody's and S&P affirms Vietnam's sovereign rating 10 Industrial production index rises 7.4pct in April 11 Consumer price index unchanged in April 11 Vietnam's inflation under control 12 Vietnam records trade expansion in four months 12 Low worker productivity weakens GDP growth in Vietnam 13 Vietnam's exports see positive signs 14 Agro-forestry-aquatic product exports hit $10.8 billion 14 Garment exports grow despite hurdles 15 Quang Ninh's exports increase by 5pct in first months of 2017 16 Vietnam's cement, clinker exports to Peru, Sri Lanka

    remarkably grow in Q1 16 Basic salary to rise to VND1.3 million from early July 16 Vietnam second most attractive SEA destination for foreign

    investors 17 HCM City sees breakthrough developments 17 Draft dictates foreigners pay into social insurance 18 Vietnam trails behind Burma in investment attractiveness 19 Loss-making SoEs could go bankrupt 19 Start-up businesses to get funding from VCIC 20 OV scholar suggests shifting to overseas venture investment 21 SMEs' responsibility for environment management highlighted 21 Strengthening national trademark 22 Vietnamese firms urge further cuts to customs red tape 22 Footwear manufacturers plan comeback to conquer home market 23 Renewable energy will lead the power sector 24 Infrastructure attracts investment to north Vietnam 24 Japan injects additional capital in Dong Nai province 25 Mekong Delta expands farm land toward large-scale production 26 Knock-on effects of Can Gio growth 27 Numerous low-cost housing projects to be launched in Q2 2017 28

    BIZ NEWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Business Briefs May 03, 2017 30 VN Index adds 6.5 points 30 Shares rise on investor optimism 31 SSI to issue bonds worth 300 billion VND again 32

    Kido to acquire Vocarimex's controlling stakes 32 PJICO to sell shares to Korean non-insurance firm 33 Vingroup targets 40pct revenue growth, lower net income 34 Japan supports Petrolimex to produce new-generation fuel

    dispensers 34 Wood pellet spike in Japan signals potential for Vietnam 35 48 million-USD projects set to ensure power supply for Apec 36 Hanoi loses VND1,500 billion due to pig price falls 36 Higher minimum capital required for private universities 37 HCM City's Metro Line No.1 at risk of delay 37 Ninh Thuan works on 2 solar power projects 38 Tra Vinh attracts additional projects 38 Plans weighed to restrict private vehicles in HCM City 38 Wind power plant built in Ninh Thuan 39 Small production contains commodity-based agriculture 39 Tan Son Nhat airspace re-divided to reduce congestion 40 Viettel Global expects to acquire 50m customers 40 Microsoft Teams launched in Vietnam 41 VinaPhone launches 4G in Vung Tau 41 FPT to boost cooperation with French firms 42 Saigon Co.op retailer expands market share 42 The KAfe, Coffee Inn died young, but milk-tea chains thriving 42 Vietnam's PV OIL holds 20pct of petroleum retail in Laos 43 EVN told to handle loss-making projects 43 Viglacera to form joint venture with Cuba 44 Toyota Vietnam produces 400,000th car 44 Taiwan paper plant red-flagged 45 Mekong Delta farmers begin shrimp harvest 46 Five measures proposed to save pig-farming industry 47 Vingroup puts into operation hi-end golf course in Hai Phong 47 Authorities discuss plan to make Saigon a city that never sleeps 47 Promoting Vietnam's green brand names 48 Long Thanh Golf Course maintains leading position in Vietnam 49 Vietnamese high-quality goods fair opens in city 50 Hoa Binh businesses look for opportunities in Australia 50 Forum discusses developing agricultural products' labels, brands 50 Vinh Long expo on industry, trade kicks off 51 HCM City to host Top Thai Brands fair 51 Workshop on intellectual property rights 52 Second Proof of Concept competition kicks off 52 Government Inspectorate urged to probe giant pulp project 53 Vietnam third most expensive country to buy Starbucks: survey 53 Vietnam to import inexpensive US hepatitis drugs 54 Vietnam needs IT engineers to meet 4.0 industrial revolution 54 Kayak service to resume in Halong Bay 55 New water park opens in Quang Ninh Province 56 HCM City opens jewellery streets 56

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    Vietnam finance & business 3 May 2017

    Banks still yearn for long-term capital

    03/MAY/2017 INTELLASIA| DTCK

    Though banks said they have gradually restructured and balanced the capital struc- ture in accordance with regulations in Circular No. 06/2016/TT-NHNN on reducing the proportion of short-term capital for medium and long-term loans from 60 percent to 50 percent since the beginning of this year, some banks have still raised their interest rates for long-term deposits, along with preferential programmes and promotions to attract capital. Currently, the deposit rates for long terms of 12 months and above being applied at medium and small scaled banks are about 7.5-8 percent/annum. Besides, in order to attract capital, some banks add the interest rate ranging from 0.5 percent/annum to one percent/annum for customers depositing from one billion dong or above with terms of 13-15 months. Specifically, at NCB, the interest rate for 12-month term is 7.6 percent/annum for indi- viduals and 7.7 percent/annum for 13-month term. The terms of more than 18 months have the interest rate of 7.8 percent/annum, or even eight percent/annum for 24-month term. Similarly, VietABank is also applying the interest rate of 7.7 percent/annum for 13- month term and 7.9 percent/annum for 15-36 month terms. These interest rates are ap- plicable to online savings products and products whose interests are paid at the end of the term. For conventional savings, the interest rate is about one percent/annum lower depend- ing on the term, but the highest rate is still 7.8 percent/annum for long-term deposits. Apart from VietABank, NCB, other small and medium banks such as Viet Capital Bank, VietBank, CBBank, SaigonBank, etc. are also applying competitive interest rates. In Viet Capital Bank, despite a slight reduction in interest rates compared to the begin- ning of the year, the interest rate for 18-month term remains at 7.8 percent/annum. Vi- etBank applies the highest interest rate of 7.9 percent/annum for 13-month term but only for the savings value of 500 billion dong or more. Besides long-term deposits, short-term savings rate of less than one year are also ap- plied by small banks at relatively high level, about 5.5-6.7 percent/annum. Along with that are promotions, gifts, and added interest margin if the deposit value is large. Not to mention, not long ago, to restructure capital under the provisions of Circular 06, many banks have accelerated the issuance of long-term deposit certificates with nearly nine percent/annum interest rate in order to attract idle money from the people in which VPBank's interest rate is nine percent/annum and Sacombank's interest rate is 8.88 percent/annum for 7-year term. As per the State Bank of Vietnam, it is normal for commercial banks to raise or lower interest rates, depending on their business strategies and market conditions. In fact, the liquidity of the banking system is still rather abundant. There is no pressure to raise interest rates. However, according to the weekly monetary market report released recently by Sai- gon Securities Inc. (SSI), interbank interest rates continued to stay high with overnight rates to increase 35 basis points, restoring all falls in the previous week and the highest level in the week was 4.6 percent. The 1-week term also rose 30 basis points to 4.7 per- cent/annum. Thus, after a short period of cooling down, interbank interest rates returned to the 4.6 percent-4.9 percent/annum established since March. Not only the interbank market, interest rates on Market 1 also swelled in short terms. As noted by SSI, interest rates for short terms under six months increased 20 basis points. Specifically, the interest rate for one-month term swelled to 4.7 percent/annum and the interest rate for three-month term improved to 5.7 percent/annum. Mean- while, the interest rate for long terms remained stable at high level. In 2017, the proportion of short-term capital for medium and long-term loans for banks is 50 percent instead of 60 percent as in 2016. Therefore, it is understandable for banks to apply long-term interest rate at high level. Also in Q1/2017, according to reports of some credit organisations in HCM City, deposit rates increased 0.07-0.2 percent/an- num for terms of over 12 months and medium and long term lending rates inched up about 0.03 percent-0.1 percent/annum from the end of last year. This slight adjustment is aimed at restructuring the capital source as well as using cap- ital in line with market developments, ensuring capital adequacy ratios in the opera- tion of credit organisations. Bank leaders say they are gradually lowering the proportion of short-term capital for

    Intellasia 3 May 2017 2 / 56

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    Vietnam finance & busine