250517Intellasia Finance Vietnam - HKBAV .pdf¢  With the current trading band of +/-3...

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Transcript of 250517Intellasia Finance Vietnam - HKBAV .pdf¢  With the current trading band of +/-3...

  • 25 May 2017

    finance & business news

    FINANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Reference exchange rate stays unchanged on May 25 1 Fitch Revises 3 State-Owned Vietnam Banks' Outlooks to Positive 2 Treasury mobilises more capital from government bonds 3 Flawed regulations on handling collateral hinders bad debt

    settlement 3 Banks to up capital by $1.6b 4 Banks keep racing to increase capital 4 Credit growth faces dilemma 6 Risk tolerance of Vietnamese banks very low: Dr Le Xuan Nghia 7 ABBank, TPBank join ADB trade finance programme 8 Sacombank postpones AGM to June 30 9 Asset Magazine lauds Citi and Citi Vietnam as the banks to go 9 Bonds sell well 11 NA aims to better recover bad debts 11 Vietnam values financial grants from OFID 12 Capital aims for 4.5pct export growth in 2017 12 Vietnam & Thailand set trade target 13 VN, Denmark exchange lessons in food control 13 Deputy PM chairs Vietnam-Spain business forum 14 Annual exports to South America expand by 30-40pct 15 Bangladesh in the market for 300,000 tonnes of Vietnamese rice 15 Vietnam plans to open 'outstanding' special economic zones 16 High time for high-tech farming in Vietnam 17 Vietnam set to approve coal-fired power plants worth $7.5 billion 18 Upbeat signs for Vietnamese rice exports 19 Coffee output to near 2016 yield 19 Vietnam's 2017/2018 coffee output to rise 10 pct on good

    weather, prices 20 Opportunities for Vietnam's fruits, vegetables export 21 Right approach necessary for private sector to drive

    Vietnamese economy 21 Not all SMEs to enjoy lower tax 23 Vietnam's shrimp export to Japan sees sharp increase 23 Australian delegation visiting in search of energy cooperation 24 HCM City's retail space strongly differentiates 25

    Assembled-in-Vietnam cars are twice as expensive as Thailand's 25 Hometel property segment promises big profits, big challenges 26 Vietnam luxury hotel market becomes 'hotspot' in SE Asia 27 Worries loom as international arrivals seen surging 27

    BIZ NEWS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Business Briefs May 25, 2017 28 All main indexes close higher 29 Shares rebound on financial stock recovery 29 Petrolimex enjoys huge benefits through treasury stock sale 30 More than 1,000 investors register for Viglacera auction 30 Kido completes Vocarimex stake acquisition 31 Vietnam's 10 years in WTO through expert's glance 31 Prime minister welcomes Siemens CEO 32 MoIT proritises letting Dung Quat Shipyard go bust 32 Can Tho wants more firms, jobs 33 Dong Nai attracts $483 million in FDI 34 Thai Binh 1 thermal power plant joins national grid 34 Enterprises want a level playing field 34 Suppliers meeting distributors effective for commodity trading 36 Competitiveness key for goods distribution flow 36 City to monitor produce supply chain 37 Northern provinces enjoy bumper Winter-Spring rice harvest 38 Cattlemen look to imports to meet growing demand for beef 38 Korean firm plans to acquire Gemadept 39 Kantar Worldpanel releases fifth annual Brand Footprint report 40 Clayton-based Enterprise Holdings inks Vietnam franchise deal 40 LG Display Vietnam proposes to increase investment 40 Vietnam's tax authorities to take closer look at foreign retailers41 CJ's road to dominance in Vietnamese food sector 41 Former Vinaconex boss faces prosecution for regulation violation 43 Phu Quoc possesses great potential for second home market 44 Vietnam sees six-fold rise in foreign workers since 2004 44 OFID lends $21.8mn for Vinh Phuc bridge 45 Clean Air Asia urges Can Tho to control air pollution 46 Expensive car imports decrease 46 Milk and dairy fair set for Hanoi 46

    FINANCE

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    FINANCE Reference exchange rate stays unchanged on May 25

    25/MAY/2017 INTELLASIA| VNA

    The daily reference VND/USD exchange rate on May 25 stayed unchanged from the day before at 22,384 VND. With the current trading band of +/-3 percent, the ceiling rate applied to commercial banks during the day is 23,055 VND and the floor rate 21,713 VND per USD. The opening hour rates at commercial banks also stayed stable. Vietcombank listed the rates at 22,650 VND (buying) and 22,720 VND (selling) per USD, the same as on May 24. The rates at BIDV were kept at 22,650 VND (buying) and 22,720 VND (selling). At Vietinbank, the greenback was bought at 22,650 VND per USD, up 10 VND from May 24, and sold at 22,720 VND, the same as the May 24 rate. http://en.vietnamplus.vn/reference-exchange-rate-stays-unchanged-on-may-25/ 112244.vnp

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    Vietnam finance & business 25 May 2017

    Fitch Revises 3 State- Owned Vietnam Banks' Outlooks to Positive

    25/MAY/2017 INTELLASIA| REUTERS

    Fitch Ratings has revised the Outlooks on the Long-Term Issuer Default Ratings (IDRs) of three state-owned Vietnamese banks - Vietnam Joint Stock Commercial Bank for In- dustry and Trade (Vietinbank), Joint Stock Commercial Bank for Foreign Trade of Vi- etnam (Vietcombank) and Vietnam Bank for Agriculture and Rural Development (Agribank) - to Positive from Stable. At the same time, the agency has affirmed the Long-Term IDRs on the banks at 'B+'. A full list of rating actions is provided at the end of the rating action commentary. The Outlooks have been revised following a revision in the Vietnam sovereign's Outlook to Positive from Stable on 18 May 2017, which takes into account Vietnam's strong macroeconomic performance and improvement in the country's external stability indicators. The improvements are reflected in persistent current-account surpluses, manageable debt-service costs and sustained foreign direct investment inflows. For more details on the Outlook revision on the sovereign, see the rating action commentary Fitch Revises Outlook for Vietnam to Positive; Affirms at BB-, dated 18 May 2017. KEY RATING DRIVERS VIABILITY RATINGS, IDRS, SUPPORT RATINGS AND SUPPORT RATING FLOORS The Outlook revision on the three banks' IDRs reflects Fitch's view of improving sov- ereign ability to provide extraordinary support, if needed. The Long-Term IDRs of Agribank, Vietinbank and Vietcombank are driven by Fitch's expectation that govern- ment support will be forthcoming, if needed, in light of their high systemic importance and the government's controlling stakes. They are among the top four Vietnamese banks by assets and have strong domestic franchises. The banks' IDRs and Support Rating Floors are one notch lower than Vietnam's sovereign rating (BB-/Positive) as Fitch believes the large size of the banking industry relative to GDP and the govern- ment's limited resources may hamper the timeliness of support. The 'b-' Viability Rat- ings of Vietcombank and Vietinbank reflect their limited balance sheet buffers relative to the size of their problematic assets, their weak financial performance and high loan concentration risk in state-owned enterprises (SOEs). The Viability Ratings also con- sider their solid domestic franchises and their stable funding profiles. Fitch does not assign a Viability Rating to wholly government-owned Agribank. The bank's role in providing support to the domestic economy has a high influence on its standalone pro- file and makes it likely that Agribank will continue to benefit from regulatory forbear- ance. RATING SENSITIVITIES IDRS, SUPPORT RATINGS AND SUPPORT RATING FLOORS OF AGRIBANK, VIETINBANK, VIETCOMBANK The Long-Term IDRs, Support Ratings and Support Rating Floors of Agribank, Viet- inbank and Vietcombank are sensitive to movements in the sovereign's ratings, which are currently on a Positive Outlook. An upgrade of the sovereign ratings would likely lift the banks' support-driven ratings. The banks' ratings may also be affected by any perceived change in the government's propensity to support the banks. VIABILITY RATINGS OF VIETINBANK, VIETCOMBANK Fitch may take positive rating action on the banks' Viability Ratings if structural issues, such as corporate governance, bad-debt resolution and thin capitalisation, are more adequately addressed, leading to greater transparency and, together with sustained strong economic performance, to continued improvements in the banks' overall credit profiles. Viability Ratings may be pressured if excessive growth or an increased loan concentration leads to significant impairment risks and weakened balance sheets. Downward pressure for Vietinbank may be higher given its low capital ratio and high- er SOE loan concentration risk. The rating actions are as follows: Agribank Long-Term IDR affirmed at 'B+'; Outlook revised to Positive from Stable Short-Term IDR affirmed at 'B' Support Rating Floor affirmed at 'B+' Support Rating affirmed at '4' Vietinbank Long-Term IDR affirmed at 'B+'; Outlook revised to Positive from Stable Short-Term IDR affirmed at 'B' Viability Rating affirmed at 'b-' Support Rating Floor affirmed at 'B+' Support Rating affirmed at '4' Vietcombank Long-Term IDR affirmed at 'B+'; Out- look revised to Positive from Stable Short-Term IDR affirmed at 'B' Viability Rating af- firmed at 'b-' Support Rating Floor affirmed at 'B+' Support Rating affirmed at '4'. https://www.reuters.com/article/fitch-revises-3-state-owned-vietnam-bank- idUSL4N1IQ3P3

    Intellasia 25 May 2017 2 / 47

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    Vietnam finance & business 25 May 2017

    Treasury mobilises more capital from government bonds

    25/MAY/2017 INTELLASIA| VNA

    Over 5.86 trillion VND (262.77 million USD) worth of government bonds issued by the State Treasury were sold at an auction at th