090317Intellasia Finance Vietnam - hkbav. 9 March 2017

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Transcript of 090317Intellasia Finance Vietnam - hkbav. 9 March 2017

  • 9 March 2017

    finance & business news

    FINANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Banks kick off turbulent shareholders meeting season 1SOEs to divest from banks on positive market outlook 2Local banks face increased competitive pressure from foreign ones3Will Class-A bank resist a downturn? 4Reference exchange rate goes up 12 VND 6UK Fintech firm eyes Vietnam's banking sector 6ADB continues infrastructure investment in Vietnam 7The path to become a zero dong bank of OceanBank 726th Asean Exchanges CEOs meeting held 9HSBC Vietnam introduces new credit card promotion 9UN meeting looks to accelerate trade facilitation agreement 10New transfer pricing decree: a step closer to international

    standards 11Industry and trade ministry structure bulky and inefficient: experts

    12Vietnam to accelerate development of logistics services 13Hanoi conducts 2017 economic census 13ng Nai revokes 40 delayed, abandoned FDI projects 14Vung Ang Economic Zone have licences revoked 14Poor Vietnamese women work hard for profits of world's

    richest men, Oxfam says 15Vietnam's premier to meet government officials and businesses 15Delta raw shrimp prices soar 16New transfer pricing decree: a step closer to international

    standards 17More firms burdened with informal fees 18HCM City businesses concerned about falling competitiveness 19Savills: More investment opportunities in VN 20Positive prospects 21Sale of cars down despite price drop 22Exclusive: $250m injected into Vietnamese startups in 2016 23Vietnam to accelerate development of logistics services 24Vietnam, Australia strengthen cow-breeding cooperation 25HCM City eyes more investment from Japan 25HCM City aims to propel local companies into world's Top 500 25IT companies willing to pay thousands of US dollars to

    attract staffs in Vietnam 25

    BIZ NEWS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26Business Briefs March 09, 2017 26VN Index struggles to maintain growth 27

    VN Index retreats as blue chips slump 27VN Index finishes almost unchanged 27All indexes finish in positive territory 28VCSC may list during Q3 29PENM IV Germany seeks higher stakes in Hoa Phat Group 30Vietnam's PV Oil to Raise Funds as government Opens Market 30VN's semi-conductor sector positively electric 31Airports' agency wants VND31 trillion investment 32Airports Corporation to take on strategic partner 33SCG raises stake in petrochemical project 33SCG spends $156 million to buy cement company 34Homebuyers struggling with delayed projects 34IR 50404 rice eases off record high 35FWD introduces insurance coverage with few exclusions 36VNPT, Viettel Group chase global market share 36AVC favours coconut leaf-shaped design for new airport terminal 37Bien Hoa-Vung Tau expressway to be constructed under

    BOT form 38Vietnamese high-quality goods fair opens in An Giang 38Furnishing, handicrafts fair opens in HCM City 38Vietnamese firms showcase farm produce at Japan expo 39Mekong Delta farmers to be trained in sustainable rice

    cultivation 39Aviation infrastructure overloaded 39Vietnam's Budget Airline Founder Is Southeast Asia's

    Only Woman Billionaire 40Wood processing sector has room for development 41Ford to train more women employees in Asian market 41Vietnam attends largest food fair in Japan 42Women's start-up initiative launches in HCM City 42Sustainable rice production programme launched in Vietnam 43The iron businesswomen in the Vietnamese market 43C&W: Great potential in Vietnam's manufacturing 44Vietnamese SMEs to invest strongly in e-commerce 44Vietnam's February car sales rise 50 pct 45Coca-Cola invests additional $285 million 45MWG preparing to open first Cambodian store 46Platinum Cineplex responds to cinema closures 47Nha Trang to form 'welcome club' for Chinese tourists 47Sun Group opens sale of Phu Quoc project 48JW Marriot opens in Vietnam 48

    FINANCEBanks kick off turbulent shareholders meeting season


    The season of annual general meetings (AGMs) of banks this year is forecasted to be much exciting compared to 2016. In addition to the changes in high-level human re-source, new mergers and acquisitions (M&A) deals will be revealed, along with the pres-


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    Vietnam finance & business 9 March 2017

    sure of capital increase and settlement of weak banks.So far, many banks such as the Commercial Joint Stock Bank for Foreign Trade of Vi-etnam (Vietcombank), Saigon Commercial Joint Stock Bank (SCB), Asia Commercial Joint Stock Bank (ACB), and Saigon Commercial Joint Stock Bank (Sacombank), etc. have published the AGM schedules in 2017.According to Vietcombank's announcement, its 2017 AGM will be held on April 28th in Hanoi. Raising capital is one of the topics for discussion at the bank's AGM this year. Although specific plan has not been released, according to investors, Vietcombank will probably increase capital in several ways such as distributing dividends in shares, sell-ing stake to foreign investors or merging with a weak bank.Last year, Vietcombank planned to sell 7.7 percent of stake to GIC investment fund from Singapore, but the deal has not been completed due to the overly-high price of Vietcombank shares.The possibility that Vietcombank merge with a weak bank is also left open and may be clarified in the coming AGM. Vietcombank has recently registered with Governor of the State Bank of Vietnam (SBV) to support a weak bank and the bank will start to re-structure this bank after being approved by the government.Similar to Vietcombank, the AGM of the Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank) is predicted to be heated up by questions of sharehold-ers about the capital raising plan when the Capital Adequacy Ratio (CAR) of the bank is very low. Furthermore, the merger deal with Petrolimex Group Commercial Joint Stock Bank (PGBank) is being questioned as it has yet to be finished after two AGMs.In addition to these two giant banks, the AGMs of banks which are in the list to focus on restructuring in 2017 are also receiving attention of the public, especially Sacom-bank and Dong A Commercial Joint Stock Bank (DongA Bank). Sacombank has recent-ly announced to hold the AGM on April 28th. As this is the first AGM of the bank after Tram Be and his family terminated power at Sacombank, it will focus on consolidating governance. Meanwhile, DongA Bank has not revealed a specific date for the AGM this year, after its former Chair Tran Phuong Binh was arrested in the end of last year.Despite not being in the five banks which have to concentrate on restructuring in 2017, the AGM of Export Import Commercial Joint Stock Bank (Eximbank), which will be held in April 21st,is also very interested by the public, because the personnel problem of the bank, as always, is very complicated, along with the bad debt issue.Apart from the hot topics such as increasing capital, restructuring, electing senior management, etc. dividend is also a top concern of shareholders in this AGM season. Last year, the Commercial Joint Stock Bank for Investment and Development of Viet-nam (BIDV) and VietinBank proposed the Ministry of Finance to pay dividend in shares and this plan finally was rejected. However, it is likely that from 2017, BIDV, VietinBank and Vietcombank will have to say no to cash dividend payment due to the pressure to increase capital in order to meet the requirements of Basel II.According to a source from SBV, the agency has asked the government for a mecha-nism allowing state-owned banks to retain profits in order to increase charter capital. Most likely, this proposal will be approved by the government.In fact, large banks not only try to avoid paying dividend in cash this year, but for many years, investors have rarely received cash dividends from banks. The typical names which have not paid cash dividends for years include Military Commercial Joint Stock Bank (MB), Maritime Commercial Joint Stock Bank (MSB), SCB, National Citizen Commercial Joint Stock Bank (NCB), Viet A Commercial Joint Stock Bank (Vi-etA Bank), Orient Commercial Joint Stock Bank (OCB), Bac A Commercial Joint Stock Bank (BacA Bank), Nam A Commercial Joint Stock Bank (NamA Bank), and Vietnam Technological and Commercial Joint Stock Bank (Techcombank), etc.According to economic expert Dr Nguyen Tri Hieu, it is normal if banks expect to re-tain dividends for increasing capital. For efficient banks, paying dividends in share is also beneficial to investors, because the total assets of the bank will increase. However, for Vietnam, since the confidence of shareholders in the future of banks is not great, shareholders tend to prefer cash dividends. This is also a topic that shareholders often

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    Vietnam finance & business 9 March 2017

    question in each AGM.SOEs to divest from banks on positive market outlook

    09/MAR/2017 INTELLASIA | VNA

    Many State-owned enterprises (SOEs) are seeking to divest from commercial banks this year, as forecasts for the local stock remain positive.Both The Vietnam Posts and Telecommunications Group (VNPT) and Vietnam Bank for Agriculture and Rural Development (Agribank) plans to auction their holdings in Maritime Bank and Ocean Bank (OCB) in March.VNPT has registered to offload its entire holding of 71.6 million shares in Maritime Bank at the starting price of 11,900 VND (0.52 USD) per share, equivalent to 6.09 per-cent of the bank's capital, in an auction scheduled for March 10.The move is in line with the direction of deputy prim