241017Intellasia Finance Vietnam - hkbav.org .After investing in Tasco and FPT Retail, VinaCapital

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Transcript of 241017Intellasia Finance Vietnam - hkbav.org .After investing in Tasco and FPT Retail, VinaCapital

  • 24 October 2017

    finance & business news

    FINANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Reference exchange rate goes up by 4 VND 1VN's central bank to keep currency stable: Official 1Lending grows 12.16pct in nine months 2New order set in banks' profitability 2017 2Multiple flaws found in bank acquisitions and infrastructure

    projects 3Nearly 87pct of ATM cards are used to withdraw money: VBCA 4Vietcombank posts 31pct profit rise 5TPBank reports 9-month profit at 711b dong 7Short of medium and long-term capital, VietinBank offers

    bonds worth 4.2 trillion dong 7Saigonbank attains 230b dong pre-tax profit in Jan-Sep 8After investing in Tasco and FPT Retail, VinaCapital pours

    USD 11m into OCB 8Sun Life Vietnam opens 5 more business offices 9Vietnam forecasts GDP growth of at least 6.5 pct in 2018,

    says 2017 target in sight 9PM: All socioeconomic targets within reach 10Cabinet sets 6.5-6.7pct GDP growth rate for 2018 102018 economic targets undergo NA inspection 11GDP growth must rely on internal strength: economists 12For the UNDP, Vietnam a model of growth 13Divestment and equitisation hardly reach target 15National Assembly gathers to weigh focal laws 16Vietnam reports over $1 billion in trade surplus 17Big EU demand for small shrimps 18Vietnam seeks to export pork 18Vietnam doubles efforts to improve business environment 19Tourism makes up low proportion of GDP 19PM calls for better cooperation among Apec members 20Storm brewing over special tax regime proposal 21Shifting burden 22Electronic tax collection, customs clearance piloted 24HCM City sees science and tech as driving forces for growth 24Vietnam needs logistics development strategy 25More efforts need to be made to lure foreign funds for start-ups 25

    VN textile industry needs to spin a new yarn 26Vietnam is gold mine for international express delivery firms 27Rural market becoming more attractive to manufacturers 28HCM City: Private sector needs most labourers 29Tien Giang works to support enterprises 29

    BIZ NEWS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30Business Briefs 24 October, 2017 30Shares slide on profit-taking selling 30Market corrects downwards as blue chips lose steam 31SOE divestment seen obstructing cash flow into equities 31VFM funds report solid results 32TAC to reach 2017 target for pre-tax profits 33Tien Phong Plastic plans to lift foreign ownership cap 33HCM City says will trace pork origin more stringently 34Nam Dinh, Thai Binh develop disease-free pig production

    for export 34Concern over quality threatens export of Vietnamese pork 34VIETRADE supporting brands in entering Korea 35Association enhances Vietnam-Japan economic links 36LCD tax loophole found, with big losses 37ITST proposes monorail lines to airport in HCM City 37HCM City to set up $189 million science, technology park 38Global IT firms should found VN legal entities: VTC 38Nearly VND5bn of smuggled goods destroyed in Lang Son 39PV Oil ready to roll out E5 bio-fuel nationwide 39Operator to sell 5-6pct of Vietnam's sole refinery 40Vietnam's airport ground services firm honoured by Korean Air 41Inspection finds grave mismanagement at ACV 41HAAN begins work on new wood processing factory 42Ground broken for 16 million USD candy factory in Nghe An 42Float glass plant opens in Ninh Binh 43CapitaLand ranks 68th among top 100 in Forbes' Top

    Regarded Companies 43Nghi Son economic zone to welcome ecological resort 43Fusion Maia Da Nang selected as top-20 hotel-spas in world 44

    FINANCEReference exchange rate goes up by 4 VND


    The State Bank of Vietnam (SBV) set its reference VND/USD exchange rate at 22,469 VND/USD on October 24, up by 4 VND from the previous day.With the current +/- 3 percent VND/USD trading band, the ceiling exchange rate is 23,143 VND per USD and the floor rate is 21,795 VND per USD.Vietcombank listed its buying and selling rates at 22,685 VND and 22,755 VND, per USD, both up 5 VND from October 23.Meanwhile BIDV raised its rates by 10 VND to 22,690 VND (buying) and 22,760 VND (selling), per USD.https://en.vietnamplus.vn/reference-exchange-rate-goes-up-by-4-vnd/119959.vnp


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    Vietnam finance & business 24 October 2017

    VN's central bank to keep currency stable: Official


    Record-high foreign reserves will enable Vietnam's central bank to keep the dong, the local currency, stable for the rest of the year, Bloomberg quoted a central bank official as saying.With reserve levels at $45 billion, "we are confident we will be able to maintain the dong's value," in 2017, Nguyen Thi Hong, deputy governor of State Bank of Vietnam (SBV), said on the sidelines of a meeting in Hoi An last Saturday. "Such a high level of foreign reserves will allow us to step in to stabilise the money market when needed," she added.According to Bloomberg, the dong has been one of the most stable currencies in Asia this year.An increase in remittances from Vietnamese living abroad has helped boost foreign re-serves this year, which allows the central bank to continue focusing on policies to sup-port economic growth, Nguyen Hoang Minh, deputy head of SBV in HCM City, said in an interview last month.The central bank will ensure lenders have enough liquidity "so that they can lend at lower interest rates," Hong said. "By helping banks with more cash availability, we will be able to bring down lending interest rates at banks without having to cut our policy rates," she added.Vietnam was one of only a handful of Asian nations, whose central bank eased mone-tary policy this year, unexpectedly cutting benchmark interest rate for the first time in three years in July.Prime minister Nguyen Xuan Phuc said on Monday morning that Vietnam is expected to meet the GDP growth target of 6.7 per cent this year. If it can reach the target, it will be the fastest pace since 2007. The economy grew 6.41 per cent in the nine months through September.http://bizhub.vn/banking/vns-central-bank-to-keep-currency-stable-official_289661.html

    Lending grows 12.16pct in nine months


    Credit growth of the entire banking system in the last 10 days of September rose 1.14 per cent, pushing the total increase in the first nine months of this year to 12.16 per cent, the latest report from the State Bank of Vietnam (SBV) showed.Loans to the agricultural and rural areas increased by 17.6 per cent year-on-year, the industrial sector was up 17.75 per cent, construction was up 19 per cent, and trade and services was up 18.1 per cent.Outstanding loans to small- and medium-sized enterprises by the end of August ac-counted for 21 per cent of the total outstanding loans, up 7.5 per cent compared with the period till December 31 last year.The high credit growth has helped boost GDP in the first nine months to 6.41 per cent, much higher than the 5.99 per cent increase in the first nine months of 2016.SBV also reported that in the first nine months of 2017, over 300 meetings and dia-logues between banks and enterprises were organised to assist enterprises in getting access to bank loans. Accordingly, banks committed to lend to firms nearly VND570 trillion (US$25.11 billion), of which more than VND550 trillion was disbursed for cor-porate customers.In addition, banks also provided other forms of support, such as reducing lending rates for firms' old loans totalling nearly VND20 trillion.To support the economic growth, the government has also requested SBV to continue the monetary policy in the direction of lowering lending rates, at the same time raising outstanding credit to 21-22 per cent in 2017, based on credit quality and macro stabili-ty.Together with the extension approval, SBV also instructed commercial banks to con-duct scrutiny to ensure bank capital went to effective sectors, avoiding non-perform-ing loans.SBV noted that it is ready to supply capital to the economy; however, the terms of lend-ing will remain strict, in accordance with legal regulations and procedures.

    New order set in banks' profitability 2017


    Last week, many commercial banks have announced basic business results in the first nine months of 2017, initially setting new records and new orders in the system.With many announced results, so far, the year 2017 can be seen as the best year for the

    Intellasia 24 October 2017 2 / 44

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    Vietnam finance & business 24 October 2017

    banking system's profitability since 2012.In the previous year, the Foreign Trade of Vietnam (Vietcombank) and Vietnam Bank for Industry and Trade (Vietinbank) led the system in terms of absolute figure.This year, Vietinbank has not announced specifically updated figures so far while Vi-etcombank is expected to take the first position in profits with significant gap com-pared to the second position.In 2016, Vietcombank attained record profits, so the growth rate so far has become even and has no longer been as unexpected as some banks that grow from low to high.Specifically, in the first nine months of 2017, the pre-tax profit before putting for risk provision of Vietcombank reached 12.186 trillion dong, up 14.1 percent year-on-year. The after-tax profit after putting for risk provision touched 7.687 trillion dong, up 24.4 percent year-on-year, completing 80.9 percent of the 2017 plan.By acquiring the entire bad debt sold to the Vietnam Asset Management Company (VAMC) in 2016 along with the risk provision fund of 10.390 trillion dong, equal to 136.4 percent of the total