051017Intellasia Finance Vietnam - HKBAV HCM City Taxi Association proposes suspending ride-hailing

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Transcript of 051017Intellasia Finance Vietnam - HKBAV HCM City Taxi Association proposes suspending ride-hailing

  • 5 October 2017

    finance & business news

    FINANCE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Reference exchange rate revised down 2 21-22pct credit growth target hard to achieve 2 Three banks being acquired at zero dong: still facing heavy losses 3 Monetary policy should not be used for too many goals:

    SSI experts 3 More than 70pct inward remittances in HCM City poured into

    production 4 Vietnamese bond market needs enlarging 4 Remittance to HCM City reaches $3.38b in 9 months 6 VPBank breaks HoSE record by individual stock sales 6 Bao Viet Insurance introduces cancer and heart coverage 7 WB report: Vietnam's economy continues to show

    fundamental strength 7 Vietnam tops Asean with September PMI at 53.3 8 Vietnam makes good use of Japan's ODA: FEC deputy chief 9 GDP growth snowballs in 3rd 9 PM: government could meet all 13 NA targets 10 HCM City's growth target hard to achieve 11 HCM City urged to achieve higher growth by end of the year 12 Slow disbursement a worry: PM 12 Massive surge in exports possible, official says 14 Rubber exports to EU encounter difficulties 15 Ceramics exports regain growth 17 Vietnam remains world's No 1 exporter of cashews 17 Government to establish agency to manage State assets 18 MPI pens legal framework for start-up funding 18 'Better' alternatives to tax hikes 19 Numerous product lines to have zero tax in coming time 20 Further fee cuts needed to support firms 21 Vietnam attracts foreign investment, but technology

    transfer remains low 22 HCM City Taxi Association proposes suspending ride-hailing

    service 22 Vietnam ranks 8th among world furniture manufacturers 23 Luxury condotels: new and attractive investment channel! 23 Hanoi & HCM City retail see no new supply in Q3 24 Thua Thien Hue: registered capital of new firms doubles 25 Tien Giang shifts to growing fruit trees with high value 25 Mekong Delta seeks investors for 57 projects 26 HSBC: More Thai firms to tap Vietnam market 26 Vietnam welcomes Japanese investment: PM 27

    Vietnam, German share experience to develop agricultural value chains 27

    Vietnam, Malaysia discuss ways to increase farm produce value 28 India-Vietnam trade is aiming toward $15bn target 28

    BIZ NEWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30 Business Briefs 05 October, 2017 30 Why are foreign investment funds divesting? 30 VN Index bounces on blue chips 31 VN Index dips to below 800 points 32 40 foreign investors join race for IDICO shares 33 Screw manufacturer plans HOSE listing 33 TTF completes subsidiary divestment 33 Song Da Corp modifies IPO plan 34 Gemadept sells majority stake in two subsidiary firms 34 Time for real estate market to get exciting 35 Simultaneous launches in apartment market 36 Private sector invests in Apec infrastructure 37 HCM City exchanges 16 land lots for Thu Thiem 4 Bridge 37 Waste from thermal power plants increasingly affects the

    environment 38 Ministries want to recycle coal power waste 38 HCM City strictly handles case of sedated pigs 39 Sugar processors not keen on bagasse-based electricity

    generation 40 Optimal conditions pledged for ADB-funded urban project 40 Vietnam a good option to optimise global supply chains 41 Japanese-style farms for Can Tho 42 Vietnam Airlines urges police investigation after customer

    information leaked to taxi companies 43 Pinaco plans strategic partnership with Furukawa Battery 43 Mercedes-Benz go on sale in Vinh City 44 Tetra Pak builds packaging factory in Binh Duong 44 Japanese firm to build 10 million-USD factory in Vinh Phuc's IP 44 Film studio equitisation under scrutiny 45 Mekong Capital wins private equity international award 45 Invest Danang 2017 Forum to kick off in mid-October 47 Printing and packaging expo attracts 300 companies 47 Vietnam Cycle 2017 to open in Hanoi 47 Tra fish fair to take place this week in Hanoi 48 Can Tho hosts events to attract Japanese investors 48 Soc Trang to host business trade link conference 49

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    FINANCE Reference exchange rate revised down


    The State Bank of Vietnam adjusted the daily reference exchange rate for VND/USD to 22,468 VND on October 5, down 5 VND from the previous day. With the current trading band of +/-3 percent, the ceiling rate applied to commercial banks during the day is 23,141 VND and the floor rate 21,875 VND per USD. The rates listed at major commercial banks in the morning of October 5 continued to stay stable. Both Vietcombank and Vietinbank listed their buying rate at 22,690 VND and selling rate


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    Vietnam finance & business 5 October 2017

    22,760 VND per USD, unchanged from October 4. At BIDV, the greenback is being bought at 22,695 VND and sold at 22,765 VND, the same as on October 4. https://en.vietnamplus.vn/reference-exchange-rate-revised-down/119000.vnp

    21-22pct credit growth target hard to achieve


    According to the objective of the State Bank of Vietnam (SBV), the credit growth in 2017 must reach 21-22%. However, statistics of the General Statistical Office (GSO) showed that the credit growth of the economy was only 11.02 percent as of September 20th. Thus, to complete the goal, from now until the end of the year, banks should de- velop credit by 10-11%, equivalent to injecting about 600 trillion dong to the market. Economist, lawyer DrBui Quang Tin, member of the Hochiminh city Bar Association, founding director of the BizLight Business School said that in the past years, in order to boost lending in the last three months of the year, banks often increased lending by an addition of 6%. If this rate is applied, banks can only reach about 17-18 percent cred- it growth by the end of the year. "Meanwhile, since the credit growth room this year is expanded to 21-22%, banks will have to boost lending at full speed", added DrTin. The total outstanding credit in Hochiminh city as of late September was estimated at over 1,670 trillion dong, up by 13.5 percent compared to late 2016, and increased by 19.58 percent compared to the same period of 2016. According to SBV Hochiminh city branch, this rate is nearly 3 percent higher than the average national credit growth. Most of the loans focus on production and business areas, and supporting enterprises. However, many opinions said that although the policy to stimulate lending of SBV has boosted credit and directed the capital flows into production and business, the absorp- tion of enterprises remain limited. According to Pham Hong Hai, general director of HSBC Vietnam, the reason is due to the slow bad debt settlement process and low credit quality. On the other hand, the capital absorption of the economy is currently not good because the majority of small and medium enterprises still face difficulties in accessing bank loans or have limited access, while they account for over 95 percent of the total enterprises in Vietnam. Hai shared that fastening the credit growth without strict control of credit quality will lead to the same problem in the past which is the rise in bad debts, particularly if the new loans are allocated to inefficient industries, including real estate. Therefore, to achieve the annual growth target, Dr Tin offered six recommendations. Firstly, commercial banks should maintain or lower lending rates by 0.2-0.5 percent per annum, especially for medium and long-term loans. If so, the demand for capital will increase, facilitating the achievement of credit growth target. Secondly, banks should support enterprises with good business history, efficient busi- ness plans, and good cash flows, etc. via disbursement, granting more credit to enter- prises, or extending debt maturity and restructuring debts if these enterprises are having difficulties in the production and business cycle, etc. Thirdly, the credit growth limits for commercial banks with effective operation, low bad debt ratio and less risks should be raised, such as Vietcombank, VietinBank, BIDV, VIB, and ACB, etc. Currently, banks have almost used up their limits to develop credit, and some have even reached the ceiling limit, while they are still having many good customers to offer loans. Therefore, raising credit growth limits will help banks continue granting loans, at the same time contributing to realise the credit growth target of the entire banking system. Fourthly, competing by increasing deposit rates and promotions in the end of the year should be strictly limited, otherwise it will be difficult to create favourable conditions to lower lending rates in the end of the year. Fifthly, SBV should continue to offer liquidity support on the Open Market Operation (OMO) and refinance when necessary for commercial banks with good lending, low risks and good management. Lastly, banks should further look for good customers to lend out, especially support- ing small and medium enterprises. Many of them currently have good business oper- ations and good credit history but they do not have sufficient secured assets to borrow more capital, or their financial statements and financial documents are not as sufficient as other large enterprises.

    Intellasia 5 October 2017 2 / 49

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    Vietnam finance & business 5 October 2017

    Three banks being acquired at zero dong: still facing heavy losses


    At the meeting with National Assembly Chair Nguyen Thi Kim Nga