160118Intellasia Finance Vietnam - HKBAV 2018-01-16¢  Of the banks ranked by the Asian...

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Transcript of 160118Intellasia Finance Vietnam - HKBAV 2018-01-16¢  Of the banks ranked by the Asian...

  • 16 January 2018

    finance & business news

    FINANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 Reference exchange rate revised down by 10 VND 1 SBV lowers lending rates on OMO after nearly 5 years 2 Vietnam's banking sector regains strength 2 Foreign ownership limit drives investors from Vietnamese banks 3 Consumer credit considered as growth opportunity for banks 4 Many banks expand transaction network right from the

    beginning of 2018 5 Upgrading to emerging market a catalyst for growth 6 Consumers are over-borrowing 7 IFC plans to ramp up banking loans 8 HSBC lands top honours in Euromoney Trade Finance Survey 2018 9 Japan bank eyes more Eximbank shares 9 Vietinbank named second-largest bank by profit 10 Vietcombank to sell shares to foreign investors 10 Hua Thi Phan to be prosecuted in phase 2 of notorious

    VNCB case 11 PM urges MPI to turn Vietnam into 'new tiger' of Asia 11 Vietnam's economy is recovering: East Asia Forum 12 Moody's: Sweeping corruption crackdown may create

    perceptions of risk 13 Industrial production motive for industrial growth 14 Social insurance debts amount to VND5.7 trillion 14 Whitebook on IUU in Vietnam released 15 Export a bright spot of economic panorama 15 Rosy outlook for Vietnam's garment trade 16 Indonesia to import rice from Vietnam 17 Indonesia issues anti-dumping investigation report on

    Vietnam steel 17 Vietnam's cashew industry turns to Cambodia 18 Customs clearance cost lowered 18 Experts advise no VAT increase for now 19 Tax on imported sugar to remain at 5pct 20 State Auditor asked to improve organisation for better

    performance 20 Ministry builds mechanism for land agglomeration,

    large-scale farming 21 HCM City says commercial apartments should be at least

    45 square meters 21 Survey helps HCM City plan policy 22 Deposit requirement unchanged for travel firms 23 Vietnam an ideal destination for foreign startups 23 Clearing hurdles is a must for business operations 24 Incentives needed for SMEs to join green growth projects 25 The 'bottlenecks' in Vietnam's tourism 25

    Seafood sector continues to thrive 26 VN wants footwear, bags to yield $20b 27 Vietnam's logistics sector too expensive to compete with

    foreign rivals: experts 27 Kien Giang calls for investment 28 Japanese firms sound out business prospects in Vietnam 29 Asian investors pour capital into VN real estate projects 29

    BIZ NEWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30 Business Briefs 16 January, 2018 30 Main indexes gain ground 31 VN stocks up on investor confidence 31 Expert: Stock market cap to rise to $200 billion 32 MoF wants hike in tax on capital/securities trade income 33 Binh Son Refinery stake sale attracts huge attention 34 Vietjet co-founder in race for PV Oil strategic stake 34 Office rental cost in HCM City highest in the region 35 Land price in many regions in Hanoi increases 10pct 36 Small-scale coffee farmers get helping hand 37 Real estate sector short of skilled personnel 38 Binh Thuan set to grow 9,800 ha of VietGAP dragon fruits in 2018 39 Mekong dried-fish villages prepare for Tet 39 Thaco has no immediate plan to assemble BMW cars in Vietnam 40 PV Oil remains fuel export monopoly after equitisation 41 Unilever: Sustainable development at the heart of business

    model 42 Viglacera's profit hits VND1 trillion for first time 43 Grab says its operation is compliant with laws 44 Sabeco remains market leader in beer production 44 Mitsubishi Motors to build second plant in Vietnam 45 Vietnam Airlines debuts premium economy seats for

    Japanese routes 45 Viettel Post moves up in business ranking 45 Japanese escalator manufacturer makes foray into

    Vietnamese market 46 Starbucks continues to promote Vietnam Da Lat coffee 46 Kim Long Nam officially 'debuts' in real estate market 47 Amway Home products get Safer Choice certification 48 Sofitel Legend Metropole Hanoi in Conde Nast Traveler

    Gold List 2018 49 Michael Kelly elected chair of AmCham Hanoi 49 Procuracy finds group benefits in Dinh La Thang case 50 Phu Yen to host business promotion conference 51 3 agricultural shows to be held in HCM City 51


    FINANCE Reference exchange rate revised down by 10 VND


    The State Bank of Vietnam adjusted its reference VND/USD exchange rate down by 10 VND to 22,386 VND/USD on the morning of January 16.

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    Vietnam finance & business 16 January 2018

    With the current/- 3 percent VND/USD trading band, the ceiling exchange rate is 23,055 VND per USD and the floor rate is 21,719 VND per USD. Major commercial banks kept their rates stable. Vietcombank and Vietinbank offered 22,675 VND (buying) and 22,745 VND (selling), per USD, unchanged from the day earlier. Meanwhile, BIDV posted 22,680 VND (buying) and 22,750 VND (selling), per USD, up by 5 VND from the morning of January 15. https://en.vietnamplus.vn/reference-exchange-rate-revised-down-by-10-vnd/ 124911.vnp

    SBV lowers lending rates on OMO after nearly 5 years


    At the end of last week, the State Bank officially lowered lending rates on the Open Market Operation (OMO) slightly. This was the first time since March 2014 that the monetary policy regulator adjusted this interest rate. Specifically, on March 18, 2014, the State Bank of Vietnam (SBV) simultaneously re- duced policy interest rates in which OMO interest rate fell from 5.5 percent/annum to 5 percent/annum. The aforementioned five percent/annum has maintained over the last nearly five years though many market conditions have changed largely, even after the reduction in pol- icy interest rates in July 2017. At the end of last week, the market has noted the State Bank's reduction of the afore- mentioned interest rate but just from five percent per annum to 4.75 percent per an- num. This was the step to concretise the message of Governor Le Minh Hung given at the conference on implementation of the entire system's tasks in order to support credit or- ganisations reducing lending rates. The adjustment of interest rates on OMO also took place on the eve of the peak season of payment at the end of the year and close to the Lunar New Year. In the immediate future, the aforementioned small reduction does not have much sig- nificance to the market because since May 2017, lending through OMO has been taking place with small sessions, with the offering scale of one trillion dong only and most of them did not have winning volume (the session on December 29 alone saw the bid of- fering volume of five trillion dong). However, this was the signal from the regulator, and the adjustment has direct impact on lending costs of members accessing OMO channel when the capital demand for the peak season of payment is coming close. As such, since July 2017, the State Bank has gradually adjusted important interest rates. These adjustments are mostly indicative and show cautiousness with small adjust- ments.

    Vietnam's banking sector regains strength


    International institutions have given positive comments about the operation of the Vi- etnamese banking sector. The Asian Banker said that Vietnamese banks have improved thanks to the govern- ment's efforts to carry out reform and a strong economy. The assessment was made based on the analysis of the operation and ranking of nearly 20 Vietnamese banks. Local newspapers reported that 15 Vietnamese banks were named in The Asian Bank- ers' AB500 ranking and survey of Asia Pacific's strongest banks. They include Vietcombank, BIDV, VietinBank and Techcombank, Military Bank (MB), LienVietPostBank, ACB and VPBank, HDBank, TP Bank, SHB, VIB, SeABank, Sacom- bank and PVcomBank. The journal emphasized the impressive net profit of 37.4 percent gained by domestic banks. Other indexes also show good business performance and promising prospects in the future. The mobilised capital has increased by 1.5 times, while credit growth rate is sta- ble at 18 percent. The revenue from services has increased to around 20 percent at some banks.

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    Vietnam finance & business 16 January 2018

    The Asian Banker praised the efforts to settle bad debts with sub-prime debts having fallen to 2.5 percent by the end of 2016, the lowest level in recent years. Vietnamese banks have shown strong determination in improving risk management by strictly observing the new regulations set by the State Bank and Basel II standards. Of the banks ranked by the Asian Banker, Vietcombank ranks 48th in the region's 500 banks in terms of Strength Rank, while Techcombank is at the 101st position and Viet- inBank 124th. In September, S&P gave 'national credit rating ceiling' to Vietcombank and Techcom- bank, the highest ranking that a bank in Vietnam can obtain. According to S&P, Techcombank has been doing well in balancing profit increase and risk management. The bank has wrapped up the purchase of all bad debts from VAMC and has begun applying risk management in accordance with Basel II standards. Commenting about the purchasing of bad debts, Pham The Anh from Hanoi National University said there are two noteworthy actions. First, the financial capability of banks is good which has allowed them to buy bad debts back. Second, the asset quality of the debts has improved. A number of banks have predicted high profits for 20